Usaf Fail To Honor U.S. Small Business Act in Incirlik Air Base Turkey - Corruption at Pentagon Level

CORRUPTION IN THE MIDDLE EAST STARTS HERE
MAKE DEALS WITH THE CORPORATE FELONS THEN AWARD THEM BILLION DOLLAR CONTRACTS
SEAL AND COVER-UP THE CASES ON FOREIGN COMPANIES PAYING KICKBACKS AND BRIBES
NO FOREIGN COMPANY OWNERS INDICTED OR JAILED FOR PAYING BRIBES
NO SUSPENSIONS FOR CERTAIN COMPANIES IN MAJOR JOHN COCKERHAMS BRIBE BOOK
U.S. SMALL BUSINESS DOES HAVE AN ENEMY FOR VIOLATING THE SMALL BUSINESS ACT
OVERSEAS
YOU ARE LOOKING AT THEM ALL HERE
PRE-AWARD PROTEST INCIRLIK AIR BASES 39
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CONTRACTING SQ. RFQ FA5685-13-T-0045 (NRDC-T VEHICLE LEASE)
Latvian Connection LLC
Shareefa Complex
5
th
Floor
Kuwait City, Kuwait
Tel: 001 965 5012 2072

September 18, 2013

BY REGISTERED EMAIL
General Counsel
Government Accounting Office
441 G Street, NW
Washington DC 20548
Email: Protests@gao.gov

Attn: Procurement Law Control Group, Room 1139

RE: Pre-Award Protest against the Department of the Air Force, 39
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CONTRACTING SQ. RFQ FA5685-13-T-0045
(NRDC-T VEHICLE LEASE) for:
1. Not being a Small Business Set-Aside EXCLUSIVELY for U.S. Registered Small Business.

Dear Procurement Law Group:

Latvian Connection General Trading and Construction LLC, ( LC LLC), Shareefa Complex, 5
th
Floor, Kuwait City,
Kuwait, tel: [001 965 5012 2072].
Email: [keven.barnes@LatvianConnectionLLC.com], a SAMS Registered company ( DUNS 830587791 and CAGE
5GLB3, with a LOCAL office in the Middle East in Kuwait, DUNS 534749622 and CAGE SGM59submits this Pre-
Award Protest against Shaw AFBs 39TH CONTRACTING SQ., Incirlik ABs IDIQ that has contracts that are in
excess of $ 3,000 in value and less than $ 1 Mil ( Exhibit 1). 39TH CONTRACTING SQ. is the air component for both
U.S. European Command (USEUCOM), and U.S. Africa Command (USAFRICOM), USAFE-AFAFRICA (Exhibit 11)

First let me start by saying that Latvian Connection LLC is owned and operated by a retired USAF MSgt who served in Iraq and
during September 2001, and has served in the USAF in England, Turkey, Iraq and has been part of the USAF Active Duty,
Reserves, and California Air National Guard; served in Iraq with the Defense Contract Management Agency in total over 28
years. I was in Iraq in 2004, 2005, 2006, and 2007 either working with DCMA or with DoD companies supporting Operation
Enduring Freedom and I also served as an Advisor to the Iraqi Ministry of Defense in contracting. So, when I say that the USAF
are violating Federal Acquisition Regulations, Laws, and Small Business Statutes( Exhibit 3 )and Presidential Memo and their
own Memos( Exhibit 10 ), and I can say that with authority as I have been writing GAO Level Protests to the GAO since 2010 to
bring to light the fact that the Army, Air Force, Navy, U.S. State Department are violating the contract laws of the United States
and steering contracts to foreign companies and are not excluding all foreign competition for solicitations
In accordance with 4 C.F.R. 21.1 (c ) (1), the relevant electronic mail address for this protest is
as required by law for
purchases, construction, and services that are in Contingency Operations Areas(Exhibit 11). My first experience with corruption
with the Army was when, while in Iraq, I discovered that KBR was delivering water to the Green Zone using water trucks that had
a dual-purpose scope of work and that was to remove sewage with the very same truck due to KBRs scope of work that allowed
15 individual subcontracts to perform like that. I was the first that I am aware of to write KBR a Corrective Action Report for the
violation of their Statement of Procedures. The Colonel in charge of DCMA which oversaw KBR wanted the report and evidence
destroyed to cover-up for KBR. That was my first experience with the Armys corruption. At the time, MG Darrly Scott was the
DCMA commander and it took writing to him, my Congressional representatives, and Ms. Sparky ( who kindly printed the article
that is online today ) I later went to work for KBR and I and one other concerned Subcontracts Administrator sought an alternative
to remove those 15 subcontracts where I found out the drivers could neither read or write any language and signed their names
with Xs. We have the Small Business Act for the same reason that we had SOPs in Iraq. In the Green Zone it was to protect the
health of 1,700 organizations and 40,000 people; U.S. Small Business it is to give a fair opportunity at all solicitations under the
Simplified Acquisition Threshold. Not a single contracting officer has the right to ignore Federal Law or Small Business statutes
which is why this Pre-Award protest is being written.
keven.barnes@LatvianConnectionLLC.com ( Representative for the Protester Latvian Connection General Trading and Construction
LLC)
The Contracting Officer for this procurement is Eric P. Lannon the Department of the Air Force, 39
th
Contracting Squadron, Incirlik
AB, Turkey. The email address for Eric P. Lannon is eric.lannon@us.af.mil Mr. Lannons telephone number is listed as 90-322-316807
. The contracting office of the 39
th
Contracting Squadron is Unit 7090 Box 127 Incirlik AB, Turkey, 09824-0280
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Per FAR 33.103 Protests to the agency
(2) Latvian Connection LLC
Shareefa Complex
Kuwait City, Kuwait
Representative of Protester: Keven Barnes, CEO
Email keven.barnes@LatvianConnectionLLC.com

39
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Contracting Squadron is wrongly attempting to limit competition to Turkish companies only ( Exhibit 1) when there is
no such limitation in the Federal Acquisition Regulations, and in fact PGI 236.273 ( Exhibit 3) The Small Business Act
states
It is the declared policy of the Congress that the Federal Government, through the Small Business Administration,
acting in cooperation with the Department of Commerce and other relevant State and Federal agencies, should aid
and assist small businesses, as defined under this Act( Exhibit 2B )
(1) Comply with congressional intent to foster the participation of small business concerns as prime contractors,
subcontractors, and suppliers;
(2) Structure its contracting requirements to facilitate competition by and among small business concerns, taking
all reasonable steps to eliminate obstacles to their participation; and
(3) Avoid unnecessary and unjustified bundling of contract requirements that precludes small business
participation in procurements as prime contractors.
There are also Federal Acquisition Circulars, Trade agreements and initiatives between the United States and Turkey
under President Obama. Turkey has joined the European Union and is no more holding to this ridiculous line that the U.S.
Air Force tries to tell U.S. Small Business. Large American corporations have made significant investments into Turkey.
The protectionist activity that the United States Air Force, spending United States Money using the Federal Acquisition
Regulations is to look out for the economy of the United States and United States Small Business when the opportunity
arises. My business partner from Latvia who has since given up on the idea that U.S. Contracting Officers follow the rules
and has said that they are more corrupt than the Russian Mafia has a point. While the business did look at Turkey, we
were always blocked by this U.S. Air Force overseas we dont follow the same rules policy and that prejudiced Latvian
Connection LLC. At the time I didnt know how to write GAO Level protests and I venture to say most small business
owners dont know how and the Air Force leadership abused their position to make sure Small Business did not have the
opportunities granted under the Small Business Act by Congress. (Exhibits 23A 23E)

From the WTO Appendix 1, the United States negotiated that the Trade Agreement will NOT apply to set-asides.
( Exhibit 23E )

Well, thanks to the corruption in the Middle East and the steering of contracts in Kuwait, Qatar, Oman, and the UAE,
Latvian Connection LLC has become proficient at writing GAO level protests. In fact one such abusing Airman who
thought he could not give a written debriefing and could conduct a solicitation over a weekend was relocated by the Air
Force from UAE to Turkey in 2011. This issue of being prejudiced by Incirlik Air Base contracting officers has been on
Latvian Connection LLCs to do list for 3 years and now, this Protests is going to show the complete nonsense that the
US Air Force overseas is trying to pull off on U.S. Small Business.

Graft and Corruption is a part of the U.S. Military Contracting overseas and is no less an issue in the US Air Force. The
problem is a systemic Department of Defense-wide lack of accountability and failed leadership. The DoD state in Memos
that the statutory requirements of the Small Business Act are to be followed when in fact they are stabbing U.S. Small
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Business in the back. The failed policy of General Petraus and the Army that only Iraq or Afghanistan businesses was
only a pretense to cheat American Small Business

and help American Corporations and steer contracts to whoever the
contracting officers in Afghanistan and Iraq felt like it. Latvian Connection LLC has reported this matter to the Air Force
OSI in Turkey and asked them to investigate why set-asides statutes of the Small Business Act are not being followed.
(Exhibit 27)
The solicitation is defective
1. Public Law 95-507, The Small Business Act
in that is fails to Set-Aside the solicitation exclusively for U.S. Small Business as required by
the Small Business Act and a solicitation conducted in a contingency area(Exhibit 17.5, Exhibit 3B, 3C, and 3D).

On October 24, 1978, President Carter signed Public Law 95-507 amending the Small Business Act and the Small Business Investment Act of 1958,
making federal procurement contracting more readily accessible to all small businesses. PL 95-507 stipulates that it is the policy of the Government to
provide maximum practicable opportunities in its acquisitions to small businesses, small disadvantaged businesses and women-owned businesses. This
stipulation also extends to having the maximum practicable opportunity to participate as subcontractors in contracts awarded by any
Executive agency.

The head of each agency is responsible for effectively implementing the small business programs within his agency, including setting and achieving
yearly procurement opportunity program (POP) goals for small and small disadvantaged business contracting.

Office of Federal Procurement Policy (OFPP) Letter No. 79-1, dated March 7, 1979 on the implementation of Section 15(k) of the SBA Act requires each
agency with contracting authority to establish an OSDBU, and appoint a director, who reports to the agency head (or deputy), and who will have
responsibility for carrying out the purposes of the Act. Specifically the OFPP directs that the position of OSDBU director include the following:

Oversight of the implementation of Section 223(a) of P.L. 95-507. [This section requires that for any contract being let by a Federal agency, the agency
will provide to any small business upon request a copy of the bid specifications; the name and telephone number of a employee to answer questions
with respect to the contract and adequate citations to each major Federal law or agency rule to which the business must comply in
performing the contract.

In addition to these duties, Section 211 of P.L. 95-507 requires the OSDBU to review all subcontractor plans submitted by
prime contractors to ensure compliance. This Section directs that the successful offeror or bidder on contracts valued at
$500,000 or more must submit, before an award is made, a subcontracting plan setting percentage and dollar goals for
the award of subcontracts to small and disadvantaged businesses

The Air Force has FAILED as an Agency to effectively implement the Small Business Act. The SBA have stated now
(Exhibit 17.5) that there is no geographic limitation. It is a fairy-tale that the Air Force continue to try to pedal a 1982
Agreement as a barrier to competition that there is some sort of agreement so that ONLY Turkish companies can be
awarded contracts when there has been so many subsequent Trade Agreements with the Export Agency, the Small Business
Administration, and the WTO where it is specifically declared by the United States that such agreement will not apply to the
U.S. Small Business set-asides. (Exhibits 23A 23E)

Other Agencies such as the Army Corp of Engineers do not try to pedal such a fairy-tale legend. (US ARMY JOC
TURKEY) (Exhibit 4) This yarn was spun years ago and is has become a local way of business and is prejudicing Latvian
Connection LLC and other Small Businesses from opportunities that should be set-aside for Small Business. The Air Force
has not filed a sources sought in www.fbo.gov to determine the level of Small Business interest in the Small Business
marketplace. Of course if the Air Force spent decades posting solicitations that falsely declare that ONLY TURKISH
companies will be awarded, then the number of Small Businesses has been unfairly, capriciously and arbitrarily diminished.
This pre-award protest is to remedy this so that Latvian Connection LLC will be treated by Incirlik Air Base as a Veteran
Owned Small Business that is an interested bidder and would like a complete copy of the solicitation.

1. This Act may be cited as the Small Business Act.
The Small Business Act
2. (a) The essence of the American economic system of private enterprise is free competition. Only through
full and free competition can free markets, free entry into business, and opportunities for the expression and
growth of personal initiative and individual judgment is assured. The preservation and expansion of such
competition is basic not only to the economic well-being but to the security of this Nation. Such security and
well-being cannot be realized unless the actual and potential capacity of small business is encouraged and
developed. It is the declared policy of the Congress that the Government should aid, counsel, assist, and
protect, insofar as is possible, the interests of small-business concerns in order to preserve free competitive
enterprise, to insure that a fair proportion of the total purchases and contracts or subcontracts for property
and services for the Government (including but not limited to contracts or subcontracts for maintenance,
repair, and construction) be placed with small business enterprises, to insure that a fair proportion of the total
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sales of Government property be made to such enterprises, and to maintain and strengthen the overall
economy of the Nation. (United States NOT Turkey)
(b) (1) It is the declared policy of the Congress that the Federal Government, through the Small Business
Administration, acting in cooperation with the Department of Commerce and other relevant State and Federal
agencies, should aid and assist small businesses
(A) enhancing their ability to export;
, as defined under this Act, to increase their ability to compete
in international markets by
(B) facilitating technology transfers;
(C) enhancing their ability to compete effectively and efficiently against imports;
(D) increasing the access of small businesses to long-term capital for the purchase of new plant and equipment
used in the production of goods and services involved in international trade;
(E) disseminating information concerning State, Federal, and private programs and initiatives to enhance the
ability of small businesses to

compete in international markets;

Before the Air Force once again tells Latvian Connection LLC and the GAO that it is Latvian Connection LLCs job to
find the other U.S. Small Businesses, let me say, it is NOT. It is the job of a diligent contracting commander, contracting
branch chief, and contracting officers in Turkey to locate U.S. Small Businesses interested NOT put in their solicitations
a fairy tale about Turkish companies only being awarded contracts. THAT is an unforgiveable barrier to competition that I
have just asked the Air Force Office of Special Investigations to look into (Exhibits 23A 23E)

In the SBAs Senior attorneys legal opinion, Ms Mann-Eyester stated:
IT IS NOT LATVIAN CONNECTION LLCS JOB TO DO AIR FORCE MARKET RESEARCH

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(Exhibit 17.5)
The points of the Latvian Connection LLC Report from the SBA ( B-408633 Exhibit 17.5 ) are:

On August 29, 2013, the SBA wrote in on B-408633 and gave an opinion that supports SBA Attorneys Laura Mann-
Eyester and John Klein Exhibits 16 and 17.
That Report is attached and the bullet points of it are:
The SBA does note that the Air Force views that the SBA are irrelevant and that the SBA exists only as an
advisory body to OFPP and FAR Council
The SBA doesnt agree with the Air Forces view of the SBAs authority and mission and neither does the law.
Passage of Public Law No. 85-536 on July 18, 1958 added the Small Business Act to the United States Code.
Congress implicitly designated the SBA as Executive Branch Agency responsible for administering the programs
and requirements established under the Act.
Congress DID NOT give responsibility for administering the Act to the OFPP or the FAR Council.
The Court of Appeals for the 9th Circuit has noted for the SBA is charged with carrying out the policies of the
Act and issuing such rules and regulations as it deems necessary
One of the Primary mechanisms Congress created for implementing this policy of promoting participation in the
federal procurement process by small business concerns is the automatic set-aside requirement commonly
known as the Rule of Two
Notable 15 U.S.C. 644 ( j ) (1) contains no language placing geographic limitations or restrictions on its
applications, either in terms of the location of the procuring activity itself or the place of performance of the
contract.
The baseline presumption on the part of Congress that the policies and requirements it established under the Act
are to apply to ALL Federal procurements without regard to geography unless specifically indicated otherwise
This reading of the Act and its policies is consistent with the intent of Congress
Maximum practicable opportunity to participate in the performance of contracts let by any Federal Agency.
The Air Force has farcically attempted to assert that OFPP is the Agency responsible for implementing and
administering the policies established under the Act.
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The SBA is charged with the duty of implementing and administering the policies established under the Act.
The SBAs view on automatic small business set-aside requirements are expressed in the Agencys regulation
implementing 644 ( j ) ( 1 ) which appears at C.F.R. 125.2 ( f ) ( 1 ).
SHALL set aside any acquisition with an anticipated dollar value exceeding the Micropurchase Threshold but not
exceeding the Simplified Acquisition Threshold.. for small business concerns when there is a reasonable
expectation that offers will be obtained from at least 2 Small Business concerns
Congress refrained from imposing any geographic limitations on the application of 15 U.S.C. 644 ( j ) ( 1 ), SBA
elected not place any location-based restrictions on the application of 13 C.F.R. 125.2 ( f ) ( 1 ).
644 ( j ) ( 1 ), 637 ( d ) ( 7 ) ( A ) does not include any language prohibiting the extraterritorial application of the
requirement it imposes and neither does the SBA regulations.
The automatic set-aside requirement poses no threat to the comity of nations
The decision of the United States to buy from Small Business or Large American businesses does not infringe
upon sovereignty of a country.
FOOTNOTE 5 Pursuant to 41 U.S.C. 431a(a)( 1 ), the application of both the upper and lower limit of this
range ( i.e. the micro purchase threshold) and the upper limit ( i.e. the Simplified Acquisition Threshold) may be
adjusted for inflation. Moreover, 41 U.S.C. 1903 ( b ) further expands this range with regard to procurements
made in support of contingency operations.
GAO concluded that FAR 19.000 ( b ) must yield where it conflicts with a provision of the Small Business Act
and the SBAs interpretation and regulatory implementation of that provision.
The Court of Federal Claims concluded that SBAs implementation of a provision of the Small Business Act via
regulation must be viewed as controlling and 644 ( j ) ( 1 ) which must govern and not FAR 19.000 ( b )
644 ( j ) ( 1 ) applies broadly to each contract let by all executive branch agencies
Congress gave clear and repeated statements of its desire to promote small business concerns in the Federal
Procurement process
It is the SBAs view that the automatic small business set-aside requirement imposed under 15 U.S.C. 644 ( j ) (
1 ) and 13 C.F.R. 125.2 ( f ) ( 1 ) applies t
The SBA believes that restricting the application of this requirement solely to contracts that will be awarded or
performed within the United States is INCONSISTENT with the intent of Congress

The contracting officer has no choice but to insert the clauses that benefit U.S. Business and that is they have neglected

to
set-aside the solicitation in a contingency area where Simplified Acquisition Threshold is $ 1 Million.
39
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Contracting Squadron is conducting this solicitation that has IDIQ calls that have a value far in excess of $ 3,000.00,
but less than $1,000,000(Exhibit 1).Performance is at Incirlik Air Base, Turkey. ( Exhibit 1) and although performance is in
a contingency area as indicated by(Exhibit 12),under FAR 2.101 and SAT increase to $ 1 Mil; these contracting officers will
not set-aside the solicitation exclusively for Small Business even when directed by the President of the United States Office
in a Memo (Exhibit 10); the Air Forces own Policies, Procedures, Training materials, and leadership Memos (Exhibits 2, 3,
7, 8, 10, 13, 14, and 20) and their Director even testified to Congress in 2011 (Exhibit 13) that the Air Force were following
Small Business Set-Aside statutes including those originating from the ACC. That was an act of perjury to Congress that
should be an embarrassment to the General Officer Corp of the Air Force. MG Masiello is sited in a Memo directing
contracting officers to follow set-aside guidelines (Exhibit 10), but the actions of these contracting officers involved in this
protest indicates that this General Officer is not following the Laws, Regulations and directives of the President of the
United States Office and in fact the white collar crime being committed is defrauding

U.S. Small Businesses of Billions of
dollars (Exhibit 3. pg9).

Exhibit 12C pg 13 INCIRLIK is a Contingency Operation Area

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Over the past decade, the exemptions at section 8.4 of the FAR have divertedaway from small businesseseach
year: $44 billion in GSA Schedule contracts and $20 billion in foreign (or overseas) contracts destined for military
bases and embassies on foreign soil.

Since INCIRLIK ABS39th CONS ( Contracting Squadron) is located overseas, and the contracting officers claim they are
in contingency operations, then FAR 2.101 applies for Small Businesses. (Exhibit 11)
b. Increased simplified acquisition threshold. Once a contingency operation has been declared, an agency head may
increase the SAT from $150,000 to $300,000 for purchases inside the United States and $1 million for purchases
outside the United States, when those supplies or services are used to support the contingency operation. Increasing
this threshold will also raise the small business set-aside thresholds. (See Exhibit 3C, 3E, 12, 16, 17 and 17.5)
This GAO Pre-Award protest will address the recently approved and enacted 112
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Congress SMALL BUSINESS
CONTRACTING ACT of 2012 and the fact that there are no exclusions or restrictions to the Act. FAR 19.601 (e)
specifically states:
(e) Contracting officers, including those located overseas, are required to comply with this subpart for U.S. small
business concerns.
EXHIBIT 3D ( 2013 CONTRACT ATTORNEYS DESKBOOK

Exhibit 12A and 12B established that DCMA is performing LOGCAP Operations in Turkey and their determination is
that Turkey is a Contingency area.

1. Small Business Set-Aside. All acquisitions exceeding the micro-purchase threshold but under the simplified
acquisition threshold are reserved exclusively for small business concerns and shall be set aside. FAR 13.003C.
Authority to Combine Methods of Contracting.
1. For acquisitions under the simplified acquisition threshold for other than commercial items, authorized
individuals may use any appropriate combination of the procedures in FAR part 13 (simplified acquisitions),
Part 14 (sealed bidding), Part 15 (competitive negotiations), Part 35 (research and development contracting), or
Part 36 (construction and architect-engineer contracts)

. FAR 13.003(g)(1).

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EXHIBIT 3E

This Pre-Award protest will show the legal opinions already given by Small Business Administration lawyer, Mrs. Laura
Mann EyesterB-407391(Exhibit16 & 17) where the SBA Senior Attorney Mrs. Mann Eyester and SBA Associate General
Counsel John W. Klein have stated:48 C.F.R. 2.101 The Small Business Act states that small business set-asides are
mandatory for the acquisition of supplies and services valued from $ 2,500 to $ 100,000. 15 U.S.C. 644 (j)(1).
However 41 U.S.C. 431a(a) (1) states that the Federal Acquisition Regulatory[FAR] Council shall adjust each
acquisition-related dollar threshold provided by law, as described in subsection (c) of this section to the baseline
constant dollar value of that threshold. The FAR Council published a final rule on August 30, 2012, which
implemented these inflationary adjustments. 75 Fed.Reg. 53129. As a result of 41 U.S.C. 431a and the final rule, the
FAR now states:
(a) Before setting aside an acquisition under this paragraph, refer to 19.203(b). Each acquisition of supplies or
services that has an anticipated dollar value exceeding $ 3,000 ($15,000 for acquisitions as described in
13.201(g)(1), but not over $ 150,000 ( $ 300,000 for acquisitions described in paragraph (1) of the Simplified
Acquisition Threshold definition at 2.101), is automatically reserved exclusively for small business concerns
and shall be set aside for small business unless the contracting officer determines there is not a reasonable
expectation of obtaining offers from two or more responsible small business concerns that are competitive in
terms of market prices, quality, and delivery. If the contracting officer does not proceed with a small business
set-aside and purchases on an unrestricted basis, the contracting officer shall include in the contract file the
reason for this unrestricted purchase. If the contracting officer receives only one acceptable offer from a
responsible small business concern in response to a set-aside, the contracting officer should exclusively for the
small business concerns unless the contracting officer is unable to obtain offers from two or more small
business concerns that are competitive with market prices and are competitive with regard to quality and
delivery of the goods and services being purchased. (Exhibit 20 pg 2-3)

The Air Force use AFFARS 9952.900-H904 ( Enhanced Small Business Participation ) (Exhibit 3, pg 4) is consistently
found in Air Force Prime Contracts and stipulates that there is a goal of 20% of all subcontracts be with Small Business
inside or outside the United States.

The Air Force Compliance Checklist (Exhibit 7 at pg2 )
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Public Law 95-907, Federal Acquisition Regulations, AFFARS ( Exhibit 3); Air Force Checklists (Exhibit 7 ), Air Force
Training Guides; Memos from the President; the Office of the Under Secretary of Defense; the Office of the Department
of the Air Forces MG Wendy Masiello and Joseph M. Dades ( Exhibit 10); 112
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Congress; Small Business Coordination
Record ( DD 2579 Exhibit 20), and the legal opinion of the Small Business Administrations lawyer all support that
there is a mandatory set-aside for all solicitations with a value between $ 3,000 and $ 150,000 that does apply to U.S. Air
Forces U.S. European Command (USEUCOM), and U.S. Africa Command (USAFRICOM), USAFE-AFAFRICA
INCIRLIK ABS 39thCONS contracting office. That however is increased due to FAR 2.101 to $ 1 Mil in contingency
areas which Turkey is in. (Exhibit 3 & Exhibit 12, 12A, 12B, and 12C)

MG Masiello (USAF) in her position as Deputy Assistant Secretary (Contracting)/ Assistant Secretary (Acquisition) along
with Joseph M. Dades (SES) in his position as Director of Small Business Programs for the Air Force state in their memo
(Exhibit 10) dated December 13, 2012:
On July 11, 2012, the Director of Defense Procurement and Acquisition Policy, USD(AT&L), and the Office of
Small Business Programs issued a memo to remind the Department ( AF) of the statutory requirement to automatically set
aside contracts for small business when the anticipated contract value is at or below the simplified acquisition threshold
(SAT) but exceeds the micro-purchase threshold unless the rule of 2 is not met, and also requested efforts be taken to
ensure this requirement is consistently followed ( Attachment 1 of the Memo Exhibit 10, pg 7)
An internal analysis of the Air Force FY12 contracts awarded to small businesses within the dollar thresholds
specified above, indicates a need for improvement in this area (Exhibit 10, Attachment 2). The findings show the Air
Force awarded 67.54% of these contracts to small business. These findings are cause for concern, and you are requested to
ascertain whether your organization is falling short of its requirement to exclusively reserve these contracts for small
businesses when the rule of two is met in accordance with FAR 19.502, unless an exception applies and is documented by
the contracting officer.
Automatic small business set-asides for acquisitions between the thresholds identified above are part of our long-
term strategy to promote competition in the Air Force marketplace. (Exhibit 10, pg 6)

MG Masiellos memo states The purpose of this memorandum is to remind you of longstanding statutory requirements to
set aside contracts for small businesses where the contract value is equal to or less than the simplified acquisition
threshold (SAT) unless the "rule of two" is not met.(Exhibit 10) SAT is $ 1 Million and the USAF knows that there are
U.S. Small Businesses that can deliver this item easily.

Latvian Connection LLC believes also that an Agency overseas does not have the option to not set-aside solicitations
when there is set-aside competition in the area of the Middle East.

FAR 9.6 allows for Teaming agreements and those
teaming agreements can even be formed after contract award. The FAR is clear that set-asides are reserved exclusively for
Small Businesses and there are more than 2 set-aside companies in the region that would bid. An example of that is a $29
Mil set-aside being conducted in Kuwait for the Army, and the question was asked ( Exhibit 22A and 22B)

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The U.S. Government Accountability Office (GAO) should sustain this protest, stay the performance of the
Contract, and direct the Department of the AIR FORCE INCIRLIK ABS 39
th
CONSs contingency operation in Adana,
Turkey to set-aside this solicitation and all call requests have a value between $ 3,000 and $ 1,000,000,000 for U.S.
Small Business according to Federal Acquisition Regulations 2.101, 19.601, 19.502-1, 19.502-2, 19.502-4, 19.502-5,
PUBLIC LAW 95-907, and the Small Business Contracting Act of 2012, and for overseas, purchases less than
$ 1,000,000 set-aside exclusively for Small Business

and excluding all non-Small Business entities that do not qualify
under as a U.S. Small Business. The value of this solicitation is an undisclosed value ( Exhibit 1)
INTERESTED PARTY STATUS

As discussed below LC LLC seeks to compete for the contract that the proposed RFQ (Exhibit 1).Latvian
Connection LLC incorporates all the below facts and (Exhibits) into this Interested Party Status section. Further, if this
protest is sustained and Department of the Air Force and INCIRLIK ABS 39
th
CONSs contingency operation evaluates
Latvian Connections proposal, then LC LLC, a VOSB ,responsible offeror will have a reasonable chance of winning
the Contract. Therefore, Latvian Connection LLC is an actual offeror whose direct economic interest is affected by the
award of the Contract and hence, an interested party. 31 U.S.C. 3551 (2000); FAR 33.101; 4 C.F.R. 21.0(a)(2006);
Designer Assoc. , Inc.,B-293226, FEB 12, 2004 C.P.D. 114 at 2.This is a Pre-Award Protest

.
TIMELINESS OF THIS PROTEST

The Pre-Award
RFQ . FA5685-13-T-0045 (NRDC-T VEHICLE LEASE) dated September 8, 2013, and being conducted according to
protest against the Department of the Air Force INCIRLIK ABS 39
th
CONSs
www.fbo.gov from Turkey and is timely if:
21.2 Time for filing.(a)(1) Protests based upon alleged improprieties in a solicitation which are apparent prior to bid
opening or the time set for receipt of initial proposals shall be filed prior to bid opening or the time set for receipt of initial
proposals. In procurements where proposals are requested, alleged improprieties which do not exist in the initial solicitation
but which are subsequently incorporated into the solicitation must be protested not later than the next closing time for receipt
of proposals following the incorporation. This is a pre-award protest and the bid due in for this solicitation September 20,
2013.
Improprieties being committed by this contracting office is an understatement. The United States Air Force has become
on par with the United States Army in terms of contracting irregularities
What American Small Business did not however measure is to what lengths the Government Audit Agency will go to
cover-up the crimes of the United States Army, Navy and Air Force and how, with its rulings against small business, the
criminal enterprise of white-collar crime against American Small Businesses continues at the hands of 60 lawyers sitting
in the GAO offices. The GAO do not even call for investigations on a
and what can only be described as a white-collar
crime organization with systemic failures in its leadership from Gen. Mark A. Welsh III, Chief of Staff of the U.S. Air Force,
and all the way down to the contracting officer level. U.S. Small Businesses make up 90% of American business and these
American businesses are not isolated within the shores of the United States (Exhibit 17.5). The United States made it clear
in its WTO Government Procurement Agreement that the United States has a set-aside program for U.S. Small Businesses
and it is the white collar crimes of the United States Army, Navy, and Air Force with the assistance of the GAO that
circumvents the Small Business Act statutes.
solicitation posted for just 15 hours that was worth
over $ 3 Million (Exhibits 18 & 18A ).Yet, the GAO claim in their Mission Statement to be Our Mission is to support
the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the
accountability of the federal government for the benefit of the American people. Kick-backs and Bribes, Organizational
Conflicts of Interest, and endless investigations in on-going corruption with foreign businesses paying money to overseas
contracting officers to steer billions in contracts ( Exhibits 27 & 28 ) and prejudice Latvian Connection LLC and other
U.S. Businesses that are entitled to perform on set-aside contracts according to the Small business Act implemented by
Congress. (Exhibit 23)
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The contracting officers SF1402 ( warrant ) should mean they have the obligations to the Competition in Contracting Act,
the Small Business Act, and fair play and most of all, supporting the economy of the United States instead of funneling
American tax payer dollars into foreign companies and Islamic state actors. A recent SIGR report shows that American
contract dollars are not staying out of the hands of terrorists ( Exhibit 21) and with 20 U.S. Embassies shut down recently
is evidence that this problem of foreign contractors money putting money into the wrong hands is because US contracting
officers are violating United State Federal Acquisition Regulations and not setting aside Federal Taxpayer dollars for
United States Small Businesses and are instead pandering to foreign companies and Large Corporations who are using
foreign companies rather than following their obligation of their proposed subcontracting plan
Further, the Air Forces has referred INCIRLIK ABS 39thCONSs contingency operation (Exhibit 11) and as a
contingency operation, which INCIRLIK ABS 39this, then the threshold for a set aside according to FAR 2.101 is $ 1
Million and less purchases of supplies or services.( Exhibit 3C, 3D, 16, 17 & 17.5 )
[ read; lack of contracting
officer oversight ].

FACTUAL GROUNDS OF THE PROTEST

1. The RFQ

The Department of the Air Force and INCIRLIK ABS 39thCONSs contingency operation issued the . RFQ
FA5685-13-T-0045 (NRDC-T VEHICLE LEASE) on September 8, 2013. (Exhibit 1) on the GPE, www.fedbizopps.gov
with a bid due in date of September 20, 2103.

What is clear is that this is a solicitation projects fall in the Small Business Set-Aside Contingency area range of
$ 3,000 to $ 1,000,000 and

was not set-aside for U.S. Small Business concerns for a contract with performance in a
contingency area.
II.

Latvian Connection LLCs Proposal
Latvian Connection LLC, a Small Business Administration registered company that is a Veteran-Owned Business
(VOSB),should only be competing against other Small Businesses since there is an expectation that there will be more
than 2 U.S. Firms competing ( Exhibit 22 and 22A), and the solicitation should be marked that the solicitation is
exclusively set-aside for U.S. Small Business

excluding all businesses that do not qualify under the definitions of a U.S.
Registered Small Business.( Exhibits 30, 31, and 32)

Request of a ruling by the Comptroller General of the United States
Latvian Connection LLC (VOSB) specifically requests that the GAO level Pre-Award protest be referred to the Small
Business Administration for their review. Latvian Connection LLC also requests that the Comptroller General of the United
States ruling be made about the Pre-Award protest of Solicitation . RFQ FA5685-13-T-0045 (NRDC-T VEHICLE LEASE) and
ask the Department of the Air Forces INCIRLIK ABS 39
th
CONSs contingency operation take corrective action and set-
aside this solicitation and all purchases for U.S. Registered Small Businesses that have a value of less than $ 1 Million.
Latvian Connection LLC is one of those Small Businesses interested and has an office located in Kuwait and serving both the
Middle East and its home state of California.

President Obamas Executive Office of the President, Office of Management and Budget issued a Memorandum on the
subject of a April 25, 2012 meeting of the Small Business Procurement Group (Exhibit 10) and this memo from Joseph G.
Jordan, Administrator for Federal Procurement Policy, and Karen G. Mills, Administrator of the Small Business
Administration state that there were immediate steps to ensure small businesses are utilized to the maximum extent
possible. Maximizing Opportunities for Small Businesses under the Simplified Acquisition Threshold Pursuant to
longstanding statutory requirements in the Small Business Administration Act, agencies are required to automatically set
aside work for small businesses that is equal to or less that the value of the Simplified Acquisition Threshold (SAT)
(generally $ 150,000) unless the contracting officer determines the rule of two cannot be met ie. There is not a
reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in
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terms of market prices, quality, and delivery. There are more than 5 U.S. Small Businesses in the Middle East Region,
SMI-USA LLC, Trade Links USA LLC, American General Trading, and Latvian Connection LLC.

Mr. Jordan and Ms Mills go on to say that a third-party analysis of the Federal Procurement Data System suggest that a
significant amount of work under the SAT is not going to small businesses, including for products and services in
industries where small businesses are typically well represented. This suggests that opportunities for small businesses are
being lost, and that agencies must take additional steps to consistently apply set-asides in the manner prescribed by law
and regulation.

In enacting CICA, Congress explained: Effective competition is predicated on advance procurement planning and an
understanding of the marketplace. S. Rep. No. 50, 98th Cong., 2d Sess. 18 (1984), reprinted in 1984 U.S.C.C.A.N. 2191. The
Senate Report also quoted with approval the following testimony regarding the need for advance planning:
The Competition in Contracting Act states:
Opportunities for obtaining or improving competition have often been lost because of untimely, faulty, or the total lack of
advance procurement planning. Noncompetitive procurement or inadequate competition also has resulted many times from
the failure to develop specifications . . . . By requiring effective competition, Congress will serve notice on the agencies that
they will need to do more than the minimum to comply with the statute. S. Rep. No. 50, 98th Cong., 2d Sess. 19 (1984),
reprinted in 1984 U.S.C.C.A.N. 2192. Finally, in interpreting this statutory requirement, our Office has noted that contracting
officials have a duty to promote and provide for competition and to obtain the most advantageous contract for the
government. Precision Logistics, Inc., B-271429, July 18, 1996, 96-2 CPD 24 at 5; National Aerospace Group, Inc., B-282843,
Aug. 30, 1999, 99-2 CPD 43.In other words, contracting officials must act affirmatively to obtain and safeguard competition;
they cannot take a passive approach and remain in a sole-source situation when they could reasonably take steps to enhance
competition. Here, the Army's actions over the past several years fail to comply with CICA's statutory mandate for
reasonable advance planning.(HEROS, Inc., B-292043, June 9, 2003)
Bringing out a solicitation that obviously is under $ 1 Mil in value and not putting out a Sources Sought to see what U.S.
Small Businesses would like to bid on it is not advanced planning and not complying with the intent of Congress that
Small Business set-asides are exclusively for U.S. Small Business EXCLUDING foreign businesses

.
Under CICA, 41 U.S.C. sect. 253(a)(1)(A), contracting officers have a duty to promote and provide for
competition and to provide the most advantageous contract for the government. In their role of promoting
and providing for competition, contracting officials must act affirmatively to obtain and safeguard
competition; they cannot take a passive approach and remain in a noncompetitive position where they
could reasonably take steps to enhance competition. VSE Corp., Johnson Controls World Servs., Inc., B-
290452.3 et al., May 23, 2005, 2005 CPD para.103 at 8; HEROS, Inc., B-292043, June 9, 2003, 2003 CPD
para.111 at 7; National Aerospace Group, Inc., B-282843, Aug. 30, 1999, 99-2 CPD para.43 at 8. See also
S. Rep. No. 98-50, at 18 (1984), reprinted in 1984 U.S.C.C.A.N. 2174, 2191 (stating that CICA requires
agencies to make an affirmative effort to obtain effective competition). CICA further provides that under
no circumstance may noncompetitive procedures be used due to a lack of advance planning by contracting
officials

. 41 U.S.C. sect. 253(f)(5)(A); Signals & Sys., Inc., B-288107, Sept. 21, 2001, 2001 CPD para.
168 at 9. Although the requirement for advance planning is not a requirement that such planning be
successful or error-free, see Abbott Prods., Inc., B-231131, Aug. 8, 1988, 88-2 CPD para. 119, at 8, the
advance planning must be reasonable. Signals & Sys., Inc., supra, at 13. Here, we conclude that the
agency has failed to comply with the CICA mandate for reasonable advance planning.
Incirlik Air Bases 39
th
has failed to bring out this solicitation with enough advance planning to give U.S. Small
Businesses a chance to bid on it as a solicitation totally reserved exclusively for U.S. Small Business as is the intent of
Congress. This solicitation has all the hallmarks of pre-selection and giving this exclusively to Turkish only businesses
despite many trade developments that put their 1982 document in the shredder. (Exhibit 4, 6, 12B, 16, 17, 17.5, 22A, 22B,
23A E, 30, 31, and 32)

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REQUEST FOR HEARING OR CONFERENCE AND PROTECTIVE ORDER

If the issues in this case cannot be resolved on the basis of the documents requested, then Latvian Connection
LLCrequests a hearing on all of the matters set forth above. 4 C.F.R. 21.1 (d)(2008). LC LLC does not request a
protective order.

LEGAL GROUNDS OF PROTEST

I. There is overwhelming Evidence of Latvian Connection LLC that INCIRLIK ABS 39
th
CONSs contingency
operation IS NOT
FAR 2.101(Exhibit 3, 3C, 16, 17, & 17.5)
increase the SAT from $150,000 to $300,000 for purchases inside the United States and
automatically setting aside solicitations under SAT for small business and have not done
for years. The legal grounds that support this Pre-Award Protest are:
$1 million for purchases outside
the United States, when those supplies or services are used to support the contingency operation

. Increasing this
threshold will also raise the small business set-aside thresholds. (See FAR 2.101 and Exhibit 17.5.)
Public Law 95-507, The Small Business Act (Exhibit 3, pg 2)
On October 24, 1978, President Carter signed Public Law 95-507 amending the Small Business Act and the Small
Business Investment Act of 1958, making federal procurement contracting more readily accessible to all small businesses.
PL 95-507 stipulates that it is the policy of the Government to provide maximum practicable opportunities in its
acquisitions to small businesses, small disadvantaged businesses and women-owned businesses. This stipulation also
extends to having the head of each agency be responsible for effectively implementing the small business programs within
his agency, including setting and achieving yearly procurement opportunity program (POP) goals for small and small
disadvantaged business contracting.

FAR 6.203-206 & 19.5/219.5 (Exhibit 3)
From the Defense Procurement Acquisition and Policy Defense Pricing DOMESTIC PREFERENCE RESTRICTIONS
AFFECTING PURCHASES BY, OR ON BEHALF OF, DoD table,

Competitive procedures, but excluding other than small business, small disadvantaged business concerns, historically
Black colleges, and universities, and minority institutions, HUB Zone small business concerns, and/or service disabled
veteran owned small business concerns.

Eric P. Lannon did not exclude local foreign business from this solicitation for the . RFQ FA5685-13-T-0045 (NRDC-T
VEHICLE LEASE)
( Exhibit1)

FAR 19.601 (Exhibit 3, pg 3)
(e) Contracting officers, including those located overseas, are required to comply with this subpart for U.S. small business
concerns.
Air Force Contracting Compliance Inspection Checklist (Exhibit 7 slide 2 FOR INCIRLIK AB)
The Air Force has a checklist that is used in their procurements
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Latvian Connection LLC is one U.S. Small Business in the Middle East and there other others. Trade Links USA, SMI,
American General Trading, to name but a few U.S. Small Businesses, and as the Senior Attorney from the Small
Business Administration stated in her review comments to the GAO for B-407391, Protest of Latvian Connection LLC,
Request for Reconsideration, Dec 12, 2012, 15(j) of the Small Business Act, 19.502-2 of the Federal Acquisition
Regulations.
(FAR), and GAO rulings on small business set-asides, all of which state that small business set-asides below the
Simplified Acquisition Threshold (SAT) are automatic; in other words, a contracting officer must set-aside the
Acquisition for small business unless he/she can demonstrate that the agency will not receive at least two competitive
offers from small businesses.

First, the Small Business Act provides for an automatic set-aside, or reservation, for small businesses for
acquisitions valued below SAT as follows:

(j)Small business reservation
(1) Each contract for the purchase of goods and services that has an anticipated value of greater than $ 2,500
but not greater than $ 100,000 shall be reserved exclusively for small business concerns unless the contracting officer
is unable to obtain offers from two or more small business concerns that are competitive with the market prices and are
competitive with regard to the quality and delivery of the goods or services being purchased.

15 U.S.C. 644 (emphasis added). In other words, every acquisition under the SAT is reserved for small businesses
unless

the contracting officer will be unable to obtain offers from two or more small businesses. Moreover, the statute
states that it is up to the contracting officer not a specific small business advocating for a small business set-aside,
not SBA, and not any other entity to perform adequate market research to be able to make a determination that there
are not at least two small businesses capable of performing the requirement. (Exhibit 16 & 17)
19.502-1 Requirements for setting aside acquisitions.(Exhibit 3)
(a) The contracting officer shall set aside an individual acquisition or class of acquisitions for competition among small
businesses when
(1) It is determined to be in the interest of maintaining or mobilizing the Nations full productive capacity, war or national
defense programs; or
(2) Assuring that a fair proportion of Government contracts in each industry category is placed with small business
concerns; and the circumstances described in 19.502-2 or 19.502-3

(a) exist.
19.502-2 Total small business set-asides. (Exhibit 3)
(a) Each acquisition of supplies or services that has an anticipated dollar value exceeding $3,000 ($15,000 for acquisitions
as described in 13.201(g)(1)), but not over $100,000 ($250,000 for acquisitions described in paragraph (1) of the
Simplified Acquisition Threshold definition at 2.101
unrestricted basis, the contracting officer shall include in the contract file the reason for this unrestricted purchase.
), is automatically reserved exclusively for small business concerns
and shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of
obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices,
quality, and delivery. If the contracting officer does not proceed with the small business set-aside and purchases on an
If the
contracting officer receives only one acceptable offer from a responsible small business concern in response to a set-aside,
the contracting officer should make an award to that firm. If the contracting officer receives no acceptable offers from
responsible small business concerns, the set-aside shall be withdrawn and the requirement, if still valid, shall be
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resolicited on an unrestricted basis. The small business reservation does not preclude the award of a contract with a value
not greater than $100,000 under Subpart 19.8, Contracting with the Small Business Administration, under 19.1007(c),
Solicitations equal to or less than the ESB reserve amount, or under 19.1305

, HUBZone set-aside procedures.
(b) The contracting officer shall set aside any acquisition over $100,000 for small business participation when there is a
reasonable expectation that (1) offers will be obtained from at least two responsible small business concerns offering the
products of different small business concerns (but see paragraph (c) of this subsection); and (2) award will be made at fair
market prices. Total small business set-asides shall not be made unless such a reasonable expectation exists

The Contracting Officer did not follow this Federal Acquisition Regulation, and instead solicited companies that were not
qualified as small businesses.

The contracting officer did not set-aside the original RFQ for small business.
19.502-5 Insufficient causes for not setting aside an acquisition. (Exhibit 3)
None of the following is, in itself, sufficient cause for not setting aside an acquisition:
(a) A large percentage of previous contracts for the required item(s) have been placed with small business concerns.
(b) The item is on an established planning list under the Industrial Readiness Planning Program. However, a total small
business set-aside shall not be made when the list contains a large business Planned Emergency Producer of the item(s)
who has conveyed a desire to supply some or all of the required items.
(c) The item is on a Qualified Products List. However, a total small business set-aside shall not be made if the list contains
the products of large businesses unless none of the large businesses desire to participate in the acquisition.
(d) A period of less than 30 days is available for receipt of offers.
(e) The acquisition is classified.
(f) Small business concerns are already receiving a fair proportion of the agencys contracts for supplies and services.
(g) A class small business set-aside of the item or service has been made by another contracting activity.
(h) A brand name or equal product description will be used in the solicitation.

To date, there has not been a legal reason given by the Air Forces Deputy Assistant Secretary, MG Wendy Masiello,
(USAF), or the Contracting Officer, Eric P. Lannon as to why 39th Contracting Squadron refuses to set-aside solicitations
?????????? under SAT as directed by:

President Obamas Executive Office Office of Management and Budget
Office of the Under Secretary of Defense
Air Force Senior Procurement Executives
Air Force Small Business Directors
Federal Acquisition Regulations
Defense Federal Acquisition Regulations
Air Force Instructions
The Small Business Act and Small Business Act of 2012
AQCMemo_FAR19_11Jul13t ( MGMasiello ) Exhibit 10, pg 6, dated 11 JUL 2013

19.502-4 Methods of conducting set-asides.(Exhibit3)
(a) Total small business set-asides may be conducted by using simplified acquisition procedures (see Part 13), sealed bids
(see Part 14), or competitive proposals (see Part 15). Partial small business set-asides may be conducted using sealed bids
(see Part 14), or competitive proposals (see Part 15

).
(Exhibit 3)
15 U.S.C. 644(j): Each contract for the purchase of goods and services that has an anticipated value greater than $2,500
but not greater than $100,000 (recently raised to $3,000 and $150,000) shall be reserved exclusively for small business
concerns.
The interim rule issued by DoD, GSA and NASA provides for the use of small business set-asides on GSA Schedule
contracts but only at the discretion of the federal agency. This is unacceptable in particular because when federal
regulators originally passed a rule at section 8.4 of the FAR exempting GSA Schedule contracts from FAR 19, they
exceeded the scope of their authority and went against the original congressional intent of the Small Business Act. The
interim rule is nothing more than an egregious attempt on the part of federal regulators to grant federal agencies the
authority to decide whether or not to recognize the constitutional rights of small business concerns.
16 | P a g e
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Moreover, in 2007 the Small Business Administration offered a legal opinion to the GAO, which stated that, according to
statute and regulations, small business set asides are mandatory for acquisitions valued from $3,000 to $100,000
(upgraded to $150,000 in 2011) and take priority over GSA Schedule contracts. This interpretation is consistent with the
declared and unambiguous intent of Congress as it relates to Federal procurement and small Businesses. In other words,
agencies do not have any latitude on the matter. This legal opinion has once again been made by the SBA in November
2012.( Exhibits 16 & 17 and now on 28 AUG 2013 in Exhibit 17.5 )

(Exhibit 3)
FAR Part 19 also recognizes VOSBs, see FAR 19.201(a) (It is the policy of the Government to provide maximum
practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-
owned small business, HUB Zone small business, small disadvantaged business, and women-owned small business
concerns.) (Emphasis added), although no separate VOSB program like the set-aside program for SDVOSBs is found in
FAR Part 19.

Latvian Connection LLC is a VOSB Veteran Owned Small Business as applicable to FAR Part 19 and the Small Business
Act.

FAR 2.101 (Exhibit 3)
increase the SAT from $150,000 to $300,000 for purchases inside the United States and $1 million for purchases outside
the United States, when those supplies or services are used to support the contingency operation. Increasing this
threshold will also raise the small business set-aside thresholds. (See FAR 2.101, Exhibit 3B & 3D, 17.5.)

AIR FORCE INSTRUCTION 64-117 - INCIRLIK, TURKEY (Exhibit 9) [ emphasis INCIRLIK AB TURKEY ]
COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

2.1.2. The GPC may be used to purchase authorized supplies, equipment, and non-personal services up to the micro-
purchase threshold (currently $2,500). See paragraph 2.2.10 regarding use of the GPC for construction. Purchases
under $2,500 are exempt from the Competition in Contracting Act, Buy American Act, Economy Act, Service
Contract Act, and the Small Business Set-Aside Program. Non-personal services are further divided into recurring
and non-recurring services.

The Air Forces Instruction implies that above $ 2500, the Small Business Set-Aside Program does apply. Incirlik Air
Base is an overseas USAF base located in Turkey.

Air Force Material Command Training (Exhibit 14 slide 21)

1Note: SAPs awarded in Micro-purchase to $150K range are reserved for Small Businesses 2. Contingency Contracting micro-
purchase threshold for supplies/services is $15,000 in USA and $25,000 outside USA.

Why does it say outside of USA ?
This Command of the U.S. Air Force recognizes that $ 3,000 to $ 150,000 is reserved for Small Businesses even
overseas and FAR 2.101 states that in Contingency Areas ( SAT ), or the level that is reserved exclusively for Small
Business is $ 1 Mil and below.

Memo from Office of Under Secretary of Defense, July 12, 2012 (Exhibit 10)
From Richard Ginman, Director of Defense Acquisition and Procurement Policy
Andre J. Grudger, Director of Small Business Programs
Subject: Increasing Opportunities for Small Business through Small Business Set-Asides under the Simplified Acquisition
Threshold.
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Nowhere in the memo is there a mention that there is exclusion overseas. The intent of Congress is crystal clear the
Small Business Act applies. (Exhibit 23 and Exhibits 16, 17, and now Exhibit 17.529 AUG 2013

)
(Exhibits 16 &17 )
In the legal opinion and analysis of B-407391, SBAs Senior Attorney stated that the GAO gave deference to the SBAs
interpretation of its statute, citing Chevron, U.S.A., Inc. v Natural Resources Defense Council Inc., 467 U.S. 837(1984)
and the GAO state that when a statute under consideration creates a program to be administered by the SBA it is the
views of the SBA, rather than [another agency], to which our Office will afford deference. General Service
Administration Reconsideration

, B-406040.2, Oct 4, 2012. In this case, we are interpreting 15 U.S.C. 644(a) &
644(j), which are set forth in 15 of the Small Business Act. The Small Business Act specifically provides that: Small
Business Administration ( herein referred to as the Administration) 15 U.S.C. 633. Congress granted SBA the
authority to administer the Act. As a result, GAO must afford SBA deference over the FAR in creating policy and
interpreting the Small Business Act, especially when the two conflict. SBAs regulations on this issue state the
following:
(f) Contracting Among Small Business Programs
(1) Acquisitions Valued At or Below the Simplified Acquisition Threshold. The contracting officer shall set aside
acquisition with an anticipated dollar value exceeding the Micro-Purchase Threshold but not exceeding the
Simplified Acquisition Threshold (defined in the FAR at 48 CFR 2.101) for small business concerns when there is
reasonable expectation that offers will be obtained from at least two small business concerns that are competitive
terms of quality, and delivery and award will be made at fair market prices.

The SBA Senior attorney went on to state that 13 C.F.R. 125.2 (f); 13 C.F.R. 124.503(j), 125.19(b), 126.607(b),
127.503(d), SBAs regulations require a contracting officer to set-aside all acquisitions valued above or below the
simplified acquisition threshold for small businesses, including those awarded and/or performed overseas, if market
research indicates that the rule of two may be met. As a result, we believe that the FAR is inconsistent with SBAs
regulations and the SBAs regulations should control. See C & G Excavating, Inc., v U.S,

32 Fed.C1. 231, 239 (1994)
(Where there is a conflict between SBAs regulations on the COC program and the FAR the SBAs procedures
generally should control, especially considering that the SBA is the agency charged with issuing COCs, not DoD,
GAO, or NASA.) Hawpe Const., Inc., v U.S.

46 Fed.C1. 571, 582 (2000) (Conflicts between FAR and SBA regulations
should be resolved by looking to the SBAs latest intent on the issue and by relying on the SBA to determine which
provision best implements the policies of the agency itself.)
Finally, we note that GAO has addressed this issue already, with respect to the SBAs COC Program. In Discount
Machinery & Equipment. Inc., the Panama Canal Commission believed that FAR 19.000(b) precluded the SBAs
review of any Federal procurement if the procuring agency is located outside the United States. The GAO stated that:

Based on our review of the Small Business Act and the applicable regulations, we find that the location of the
Contracting agency has no bearing on the applicability of SBAs COC program. Nothing in the Small Business
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Act imposes any geographic limitation regarding a contracting agencys location which would exempt
procurements from the Acts coverage. Rather the factor which determines whether a small business concern
qualifies for SBAs COC proceedings is the nationality of the business.

The SBA Senior attorney went on to cite one more case to show that the Small Business Act does apply overseas.
Discount Machinery & Equipment, Inc.,

70 Comp. Gen. 108, B-240525, 90-2 CPD 420 (1990) (Emphasis added )
Interestingly, the GAO further states that it believes the Small Business Administration Act applies to agencies located
outside the United States.
This legal analysis was given by SBA Senior Attorney Laura Mann Eyester and SBAs Associate General Counsel for
Procurement Law, John Klein,. (Exhibits 16 & 17)

379 ECONs Shaw Air Force Bases contracting office conducted a Total Small Business Set-Aside solicitation for Fire
Control Panel Benchstock with a delivery to their Kuwait location and utilized www.fbo.gov and gave the applicable and
appropriate FAR clauses. ( Exhibit 5) Yet when the contracting officer from 39th Contracting Squadron conducts a
solicitation from Turkey, it is not set-aside for U.S. Small Business.

The Air Force was conducting a solicitation that is a Section 8a Set-Aside with performance in Qatar and ONLY overseas
locations.(Exhibit 18)Air Force Combat Command Postal Operations Service - FA4889-13-R-0005 FBO and this too
was being conducted on www.fbo.gov . The locations will be Transit Center Manas, Kyrgyzstan, Ali Al Salem Air Base,
Kuwait, and Al Dhafra Air Base, UAE, Non-U.S. Section 8a solicitations are set-asides and monthly they appear from
various agencies in Kuwait and the Middle East, yet, 39th Contracting Squadron will not set-aside solicitations
according to another part of the same Small Business Act that Section 8a is derived from.

II. Contracting officers generally are required to set aside for small business all procurements exceeding
$150,000 if there is a reasonable expectation of receiving fair market price offers from at least two
responsible small business concerns. Federal Acquisition Regulation (FAR) 19.502-2(b). A partial set-aside
must be made if a total set-aside is not appropriate, the requirement is severable into two or more economic
production runs or reasonable lots, and one or more small business concerns are expected to have the
technical competence and productive capacity to satisfy the set-aside portion at a reasonable price. FAR
19.502-3(a). FAR 19.202-2 generally requires contracting officers, before issuing solicitations, to make
every reasonable effort to find additional small business concerns and to maximize small business
participation. The Air Forces Shaw AFBs 379ECONS made no effort at all to locate small business concerns
in Kuwait. This solicitation exceeds $ 150,000 in value.

III.

The Air Forces39th Contracting Squadron U.S. European Command (USEUCOM), and U.S. Africa
Command (USAFRICOM), USAFE-AFAFRICAisUnreasonable
By Contracting Officer Eric P. Lannon not conducting a set-aside solicitation as required by the FAR and the Small
Business Act, the contracting officer has acted unreasonably. This Pre-Award protest clearly demonstrates that this
solicitation should first be conducted exclusively for small business set-asides and apply the rule of two.

Eric P. Lannon did not exclude foreign businesses from this solicitation for the construction project
(Exhibit 1) as required by Federal statutes. Eric P. Lannon is unfairly limiting competition to Turkish when the intent of
the Small Business Act is to Set-Aside solicitations under SAT for U.S. Small Business exclusively and excludes foreign
competition entirely. Eric P. Lannon has failed to uphold the duties as a contracting officer to set aside this solicitation for
U.S. Small Business.

IV.

Latvian Connection LLC Has Been Prejudiced
Prejudice requires a reasonable likelihood that Latvian Connection LLC would have been awarded the
Contract if we had been allowed the opportunity had been conducted as a Small Business Set-Aside that fell into the
U.S. Dollar value range of $ 3,000 to $ 1,000,000. Such a determination is not susceptible to a precise mathematical
calculation; rather, prejudice requires only that but for the agencys actions, the protestors would have had a
reasonable chance of receiving the award. Anthem Alliance for Health, Inc., TRICARE Management Activity
Reconsideration, B-278189.5, July 13, 1998, 98-2 CPD 66. A reasonable possibility of prejudice therefore is
19 | P a g e
TH

sufficient to sustain the protest. United Intl.Engg., Inc., B-245448.3, Jan 29, 1992, 92-1 C.P.D. 122.Europe
Displays, Inc., B-297099. The fact that overseas solicitations were conducted (Exhibit 4, 5, 6, 22 ) demonstrates that a
total small business set-aside has been conducted. Latvian Connection LLC has been prejudiced for years by the Air
Force overseas and its prejudice of Latvian Connection LLC in 2009 2013 has been patently unfair and the
contracting officers have been acting irresponsibly and in an arbitrary, capricious manner. The contracting office not
setting-aside exclusively

for Small Business for purchases under the Simplified Acquisition Threshold has been
prejudicing Latvian Connection LLC since Latvian Connection LLC started its Kuwait office in June 2009.
REQUEST FOR DOCUMENTS

Latvian Connection LLC requests that the following materials be included in the agency report, pursuant to 4
C.F.R. 21.1(d)(2008):

All Market Research regarding Set-Aside Businesses in Oman, Kuwait, Bahrain, UAE, Qatar,
Turkey, Jordan, UAE, Afghanistan, and Turkey that shows Small Businesses
Show all Sources Sought for RFQ . FA5685-13-T-0045 (NRDC-T VEHICLE LEASE)
The SAM.gov List of Small Businesses in the Middle East
Signed DD Form 2579, Small Business Coordination Record
Bid Abstract and Evaluations
All emails, memo for record, regarding this solicitation
All documents that refer or relate to the efforts to obtain competition from U.S. Registered Small
Businesses in the Middle East and the United States.
All documents that refer or relate to the efforts to increase competition
All documents that refer or relate to the Contracting Officers Market Research

REQUEST FOR RELIEF AND CONCLUSION

Latvian Connection LLC requests that the agency conduct the RFQ in accordance with the Small Business Act and the
Federal Acquisition Regulations and set-aside this and all future solicitations under SAT for exclusively Small Business.
Solicitations with a value exceeding $ 25,000 to be placed onwww.fbo.gov and set-aside for the authorized Small
Businesses. Should Latvian Connection LLC be the low bidder among the qualified U.S. Small Businesses, then awarded
this contract. Latvian Connection LLC requests that the USAF remove the contracting officers involved in not setting
aside this solicitation and that the Air Force follow the Rules, Regulations, and guidelines of its own Agency and that of
the Small Business Administration regarding set-asides and respect the legal opinion of the SBA Senior Attorney.
It would seem that the directives flowing out of the President of the United States office are orders and those orders are
not being followed by General Officers, Regular grade officers, and Airman in defiance to set-asides that are to be
exclusively reserved for United States Small Business of which Latvian Connection LLC is a Veteran Owned Small
Business. Latvian Connection LLC requests the removal of any contracting officer in the Middle East who cannot follow
the Federal Acquisition Regulations and is steering contracts by either posting under false contracting offices, failing to
post on www.fbo.gov , and by not supporting American Small Businesses like Latvian Connection LLC and by excluding
American Small Businesses in open disobedience of an Act designed to help American Small Businesses and the
American Economy. For the GAO to continue to support the violations of NOT SETTING ASIDE EXCLUSIVELY for
SMALL BUSINESSES and to not recommend that all ALL FOREIGN COMPETITION FOR PURCHASES with a
VALUE under $1 Mil ( SAT ) be reserved exclusively for U.S. Small Businesses. The GAO should recommend that
Military Contracting Officers be administratively disciplined until the Federal Acquisition Regulations, Laws, Rules, and
the Competition in Contracting Act and Small Business Act are implemented. If this means that contracting activities are
given to another non-

DoD Agency because the contracting officers of the Department of Defense are failing to follow the
Presidential Orders and the will of Congressionally enacted Acts to benefit U.S. Small Businesses and the American
economy, then that should be the recommendation of the GAO.
The Air Force has acknowledged that is has not met its Small Business Goals for the last 3years (Exhibit 10) and
according to Jodie Lee of Federal News Radio.com in her article on USAID, an agency that operates nearly exclusively
overseas, has not met their Small Business Goal for the last 6 years, and one of the reasons is Agencies are not
complying with the law.

( Exhibit 19 )
20 | P a g e
TH

The SBA Senior Lawyer has stated that set-aside is mandatory exclusively for Small Business and the FAR and SBA rules
do apply overseas. The Latvian Connection LLC Report states the same position regarding protest B-408633.

Congress DID NOT give responsibility for administering the Act to the OFPP or the FAR Council.
The Court of Appeals for the 9th Circuit has noted for the SBA is charged with carrying out the policies of the
Act and issuing such rules and regulations as it deems necessary
One of the Primary mechanisms Congress created for implementing this policy of promoting participation in the
federal procurement process by small business concerns is the automatic set-aside requirement commonly
Notable 15 U.S.C. 644 ( j ) (1) contains no language placing geographic limitations or restrictions on its
applications, either in terms of the location of the procuring activity itself or the place of performance of the
contract.
The baseline presumption on the part of Congress that the policies and requirements it established under the Act
are to apply to ALL Federal procurements without regard to geography unless specifically indicated otherwise
This reading of the Act and its policies is consistent with the intent of Congress
Maximum practicable opportunity to participate in the performance of contracts let by any Federal Agency.
The Air Force has farcically attempted to assert that OFPP is the Agency responsible for implementing and
administering the policies established under the Act.

We also request that Latvian Connection LLC be reimbursed the costs of filing and pursuing its protest, including
reasonable protest preparation fees. Bid Protest Regulations 4 C.F.R. 21.8(d)(1) (2010).

Under the Competition in Contracting Act of 1984, the GAO may recommend that protest costs be reimbursed where
they find that an agencys action violated a procurement statute or regulation. 31 U.S.C. 3554(c)(1) (2010). The
GAOs Bid Protest Regulations provide that, where the contracting agency decides to take corrective action in
response to a protest, the GAO may recommend that the protester be reimbursed the costs of filing and pursuing its
protest, including reasonable attorneys fees. 4 C.F.R. 21.8(e) (2010). The GAO has stated that it does not mean
that costs should be reimbursed in every case in which an agency decides to take corrective action; rather, a protester
should be reimbursed its costs where an agency unduly delayed its decision to take corrective action in the face of a
clearly meritorious protest. Griners-A-One Pipeline Servs., Inc.--Costs

, B-255078.3, July 22, 1994, 94-2 CPD 41
at 5.

Respectfully submitted,

__________________________
Keven L. Barnes
CEO
1

PERFORMANCE-BASED STATEMENT OF WORK

VEHICLE LEASE SERVICES

US NSE to NRDC-T, ISTANBUL, TURKEY

30 April 2013

2

PERFORMANCE-BASED WORK STATEMENT
TABLE OF CONTENTS

SECTION PAGE

1 DESCRIPTION OF SERVICES 3

2 GENERAL INFORMATION 5

3 SECURITY REQUIREMENTS 5

4 PERFORMANCE OF SERVICES DURING CRISIS 6

5 TRAFFIC TICKETS 6

6 APPENDIX 6

3

1. DESCRIPTION OF SERVICES:

1.1. Vendor shall provide office and mobile telephone numbers to the Fleet Manager. Vendor must
be available to assist in lease vehicle matters seven days a week, 24-hours a day.
1.2. SPECIAL REQUIREMENTS:
1.2.1. Vehicles shall be no older than four (4) model years and have less than 70,000 km for the
entire contract period. Vehicles reported to the vendor as having achieved or exceeded the four-
year or 70,000 km requirement will be replaced within (5) five business days to meet the
requirements of this paragraph or upon approval of the gate pass letter, whichever is sooner.
1.2.2. Rental cost shall include unlimited mileage.
1.2.3. Vendor is responsible for contacting US NSE to obtain and keep current gate passes for
entry to and exit from NRDC-T HQs, Istanbul, Turkey, for all vehicles leased, for the entire period
of the lease.
1.2.4. Lease price includes full coverage insurance (KASKO) and all applicable taxes, licenses,
registration fees, and any other requirements as mandated by Turkish Law. License plates will be
from the city of the location in which the vehicle is being used.
1.2.5. Vendor must maintain the minimum insurance (KASKO) in accordance with Turkish Law
and proof thereof on each vehicle and provide current, up-to-date copies of this insurance to the
user and Fleet Manager. Copies of the insurance documents for each vehicle will be provided to
the user and Fleet Manager by the vendor upon initial issue of vehicles and upon renewal of
insurance as it becomes due.
1.2.6. Vendor will ensure each leased vehicle is inspected and maintained in accordance with
Turkish law. Semiannual/annual emissions testing, road kit inspections, safety items, and vehicle
performance standard items are the sole responsibility of the vendor.
1.2.7. Vendor must deliver vehicles with a full tank of fuel and the government will return the
vehicle with a full tank of fuel.
1.2.8. Vehicles must be clean and fully serviced upon delivery.
1.2.9. Any and all maintenance (repairs/servicing) of vehicles is the vendors responsibility. When
a vehicle requires maintenance, a replacement vehicle must be provided on the same day and the
same time of that day as the leased vehicle is picked up/turned in for maintenance. The vendor
must make the change with 2 days of the task order for unscheduled maintenance when the vendor
is from outside the local area. Replacement vehicle must be the same class/type of vehicle being
serviced. Original vehicle shall be returned to the leasing organization upon completion of any
maintenance for which it was picked up/turned in. The fuel tank must indicate 100% full at pick up
time and 100% full upon return from servicing.
1.2.10. Vendor will notify the Fleet Manager no later than (7) seven-days prior of any scheduled
maintenance that needs to be performed on any vehicle.
1.3. Vendor will ensure all vehicles are taken to the base Vehicle Control Function prior to
acceptance by the user and Fleet Manager. This is to ensure that the vehicles meet all standards
listed under Special Requirements. For those vehicles leased outside of the Incirlik area, the
4

vehicles will be previewed by the local transportation supervisor or Vehicle Control Officer.
Results will be provided to the Fleet Manager prior to acceptance.
1.4. Exchanging of vehicles that are not of the same class/type is not authorized without prior
written approval of the Fleet Manager and Contracting Officer.
1.5. Vendor shall provide the requested vehicle types within (5) business days of notification by
the Contracting Officer that a task orders is being issued. Or upon approval of the gate pass letter,
whichever is sooner.
1.6. A representative of base safety shall have the authority under this contract to conduct random
and unannounced safety checks of all vehicles provided by the vendor. In addition, all lease
vehicles will be inspected on a no-notice basis by the Vehicle Control Function office on a random
semi-annual basis. Findings resulting from the inspection will be reported to the Logistics
Readiness Commander, Quality Assurance Evaluator, and the vendor. The vendor must correct
safety discrepancies immediately.
1.7. Only a Contracting Officer is authorized to make changes to the terms and conditions of this
contract.
1.8. Vehicles must be free of all religious symbols/references, advertisements, and stickers not of
manufacturer origin. Vehicles are subject to rejection if one or more of the following are found to
be unacceptable. If a vehicle is rejected, the vendor must provide a replacement within three (3)
hours:
1.8.1. Windows: Must be free of all cracks, holes, and any other obstructions. Front windows will
be powered controlled. All windows will be tinted that comply with Turkish traffic laws.
1.8.2. Tires: Must have minimum 50% original tire tread remaining, and be free of dry weather
cracks, splits, cuts, sidewall bulges etc. All tires must be radial, retread tires are forbidden. All tires
must be of the same type, manufacturer, and size. Vehicle must have an operational; manufacturer
supplied spare tire and a car jack for lifting of the vehicle during tire changes. When requested a
full size spare must be provided.
1.8.3. Vehicle lighting: All vehicles manufactured installed lighting must be operational. The
following are examples of manufacture installed lighting, but not all inclusive: brake lights, turn
signal indicator lights, backing lights, headlights, parking lights, fog lights (if installed), interior
lights, dashboard lights, clearance lights (if installed).
1.8.4. Horn: Must be operational and of an audible tone to be heard by other vehicles on roadways
with windows closed.
1.8.5. Cleanliness: Interior and exterior of vehicles shall be free of all dirt, trash and debris.
1.8.6. Brakes: Must be in good mechanical working order capable of stopping the vehicle in
forward and reverse motion as intended and designed by the manufacturer. Brakes must be free of
noise and vibration when applied. Parking brake must be functional and capable of holding the
vehicle in a parked position without allowing the vehicle to move.
1.8.7. Heating and Air Conditioning: Vehicle must have operational heating and air and window
defogger (if installed).
1.8.8. Exhaust System: Must be in good working order, free of leaks, cracks, holes, and rust.
5

1.8.9. Doors: Must have driver controlled power door locks. All doors will open, close and lock
properly without the aid of any foreign objects (i.e. wire, etc.).
1.8.10. Seatbelts: Must be installed and in working condition in drivers and all passenger seating
positions to include passenger vans.
1.8.11. Airbags: Must have driver and front passenger side airbags installed.

2. GENERAL INFORMATION:

2.1. Quality Control. The contractor shall develop and maintain a quality program to ensure that all
lease vehicle vendor services and obligations as identified in this statement of work are performed
in accordance with commonly accepted commercial practices, and all local Turkish Government
regulations and procedures. The contractor shall develop and implement procedures to identify,
prevent, and ensure non-recurrence of defective services. At a minimum, the contractor shall
develop quality control procedures addressing the areas identified in paragraph 1, Description of
Services.
2.2. Contracting Officers Representative. The government will periodically evaluate the
contractors performance by appointing a representative to monitor performance to ensure
commodities are received. The government representative will evaluate the contractors
performance through periodic on-site inspections of the contractors quality control program and
receipt of complaints from customers. The contractor shall be responsible for initially validating
customer complaints. However, the government representative shall make a final determination of
the validity of customer complaint(s) in cases of disagreement with customer(s).
2.3. Holidays. The contractor is required to be available and provide service 365 days of the year,
24-hours a day including all Turkish and American holidays throughout the year.

3. SECURITY REQUIREMENTS:
3.1. Contact with Security Forces. If the contractor encounters any difficulty or needs assistance in
matters under the jurisdiction of the Chief of Security Forces, he/she should contact any
appropriate agency to include:
ISTANBUL AREA:
U.S. National Support Element (NSE), Istanbul: Commerical: 212-276-8418 or DSN: 672-3551
U.S. Consulate General: Commercial 212-335-9000

3.2. Safety. All lease vehicle vendor provided services shall be performed in a safe and health
conscious manner. Accident prevention principles must be thoroughly integrated in all operations.
Unsafe conditions and practices shall be corrected immediately.

4. PERFORMANCE OF SERVICES DURING CRISIS DECLARED BY THE NATIONAL
COMMAND AUTHORITY OR OVERSEAS COMBATANT COMMANDER (ALL
SERVICES):
4.1. On occasion (alerts, disasters, emergency response, exercises) the contractors services may
not be required for a particular area or may be required more so than normal. If at all possible, the
6

contracting officer or lease vehicle program QAP will notify the contractor when this occurs. No
price reduction will be made, but the contractor will take the required action necessary to make up
for missed services once normal conditions resume and with minimal interface to regular service
schedules.

5. TRAFFIC TICKETS:
5.1. Any fines or penalties incurred by government personnel during the period of lease shall be
paid for by the individual that committed the infraction or by the unit leasing the vehicles.
5.2 Appropriated funds will not be used to pay for traffic fines and penalties incurred by
government personnel, who are personally liable for the fines and penalties.
5.3 All fines or penalties shall be reported to the 39th Contracting Office and Fleet Manager upon
receipt.

6. APPENDIX A: VEHICLE TYPES AND CLASSIFICATIONS:
Vehicle Type Classification Passengers (drivers seat included)
Compact Station Wagons Class II 5
Compact Sedan (Automatic) Class II 5
Mini Passenger Vans 7-9
Van/Bus 15-16
Passenger Pickups (2x2, 4x4) Light Truck 3
Panel Van/Cargo Van 2

Solicitation Number:
FA5685-13-T-0045
Notice Type:
Combined Synopsis/Solicitation
Buyers: Login | Register Vendors: Login | R
Original Synopsis
Sep 08, 2013
9:48 am
Return To Opportunities List Watch This Opportunity
Add Me To Interested Vendors

Synopsis:
Added: Sep 08, 2013 9:48 am
Please consult the list of document viewers if you cannot open a file.
Type: Other (Draft RFPs/RFIs, Responses to Questions, etc..)
Posted Date: September 8, 2013
FA5685-13-T-0045.pdf (201.97 Kb)
Description: Solicitation
Vehicle_PWS_NRDC-T_Istanbul_for_FY14.pdf (25.72 Kb)
Description: Performance Work Statement (PWS)
Contracting Office Address:
Incirlik AB
Unit 7090 Box 127
Incirlik AB, Turkey, 09824-0280
ALL FILES
FA568
Sep 0
FA
Ve
GENERAL
Notice Ty
Combined
Posted Da
Septembe
Response
Sep 20, 20
Archiving
Automatic
date
Archive D
October 5
Original S
N/A
Set Aside
N/A
Classifica
W -- Lease
NAICS Co
532 -- Ren
Services/5
Leasing
NRDC-T Vehicle Lease
Solicitation Number: FA5685-13-T-0045
Agency: Department of the Air Force
Office: United States Air Force Installation Contracting Agencies - Europe
Location: 39th Contracting Sqd - Incirlik
Notice Details Packages Interested Vendors List
FA5685-13-T-0045
Page 1of 2 NRDC-T Vehicle Lease - FA5685-13-T-0045 - Federal Business Opportunities: Opportu...
9/10/2013 https://www.fbo.gov/?s=opportunity&mode=form&id=0f1b759eb7c391c321c42544589ae...
Primary Point of Contact.:
Eric P. Lannon
eric.lannon@us.af.mil
Phone: 90-322-3168075
For Help: Federal Service Desk Accessibility

39 CONS/LGC - FA5685 (FOREIGN)
39 UNCU KONTRAT SUBAYLIGI
BINA NO. 485 10.NCU TANKER
US KOMUTANLIGI
INCIRLIK/ADANA
90-322-316-8076
90-322-316-1090
UNDER DPAS (15 CFR 700)
11. DELIVERY FOR FOB
RFQ
SEE SCHEDULE
14. METHOD OF SOLICITATION
IFB RFP
CODE
SEE ADDENDUM
BLOCK IS MARKED
DESTINATION UNLESS
12. DISCOUNT TERMS
(No Collect Calls)
13b. RATING
13a. THIS CONTRACT IS A RATED ORDER
X
CODE
FA5685-13-T-0045 08-Sep-2013
b. TELEPHONE NUMBER
90-322-3168075
8. OFFER DUE DATE/LOCAL TIME
04:00 PM 20 Sep 2013
5. SOLICITATION NUMBER 6. SOLICITATION ISSUE DATE
AUTHORIZED FOR LOCAL REPRODUCTION
PREVIOUS EDITION IS NOT USABLE
STANDARD FORM 1449 (REV 3/2005)
Prescribed by GSA
FAR (48 CFR) 53.212
(TYPE OR PRINT)
(SIGNATURE OF CONTRACTING OFFICER) 31c. DATE SI GNED
ADDENDA
X
ARE
26. TOTAL AWARD AMOUNT (For Govt. Use Only)
22. UNIT 23. UNIT PRICE 24. AMOUNT 21. QUANTITY
CODE 10. THIS ACQUISITION IS
UNRESTRICTED
FAX:
NAICS:
TEL:
CODE 18a. PAYMENT WILL BE MADE BY
OFFEROR
SUCH ADDRESS IN OFFER
17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT
BELOW IS CHECKED
TEL.
FA5685
SIZE STD:
9. ISSUED BY
FACILITY
CODE
17a.CONTRACTOR/
18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a. UNLESS BLOCK
15. DELIVER TO CODE
F2GGC1
16. ADMINISTERED BY
F2GGC1 HQ US ARMY NRDC ISTANBUL
CPT ANDREW ZAPF
HQ US ARMY NATO NRDC ISTANBUL
ISTANBUL
TEL: 672-3551 FAX:
7. FOR SOLICITATION
INFORMATION CALL:
a. NAME
ERIC P LANNON
2. CONTRACT NO. 3. AWARD/EFFECTIVE DATE 4. ORDER NUMBER
(TYPE OR PRINT)
30b. NAME AND TITLE OF SIGNER 30c. DATE SIGNED
31b. NAME OF CONTRACTI NG OFFI CER
30a. SIGNATURE OF OFFEROR/CONTRACTOR
31a. UNI TED STATES OF AMERI CA
1
27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1. 52.212-4. FAR 52.212-3. 52.212-5 ARE ATTACHED.
X
25. ACCOUNTING AND APPROPRIATION DATA
1. REQUISITION NUMBER
19. ITEM NO. 20. SCHEDULE OF SUPPLIES/ SERVICES
SEE SCHEDULE
TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS
SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL SHEETS
SUBJ ECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.
SB
HUBZONE SB
SET ASIDE: % FOR
PAGE 1 OF 32
OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, AND 30
SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS
F2GGC13231A001
ARE NOT ATTACHED
27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED
TEL: EMAI L:
1 COPIES
(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE
SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:
. OFFER DATED YOUR OFFER ON SOLICITATION
28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN 29. AWARD OF CONTRACT: REFERENCE
X
8(A)
SVC-DISABLED VET-OWNED SB
EMERGING SB
X

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE
(CONTINUED)
SEE SCHEDULE
19. ITEM NO. 20. SCHEDULE OF SUPPLIES/ SERVICES 21. QUANTITY 22. UNIT 24. AMOUNT
PAGE 2 OF
23. UNIT PRICE
32
ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED: ______________________________________________________
32a. QUANTITY IN COLUMN 21 HAS BEEN
RECEIVED INSPECTED
32b. SIGNATURE OF AUTHORIZED GOVERNMENT
REPRESENTATIVE
32c. DATE 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT
REPRESENTATIVE
32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE
37. CHECK NUMBER
FINAL PARTIAL COMPLETE
36. PAYMENT 35. AMOUNT VERIFIED
CORRECT FOR
34. VOUCHER NUMBER
FINAL
33. SHIP NUMBER
PARTIAL
38. S/R ACCOUNT NUMBER 39. S/R VOUCHER NUMBER 40. PAID BY
41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT
41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE
42a. RECEIVED BY (Print)
42b. RECEIVED AT (Location)
42c. DATE REC'D (YY/MM/DD) 42d. TOTAL CONTAINERS
STANDARD FORM 1449 (REV 3/2005) BACK
Prescribed by GSA
FAR (48 CFR) 53.212
FA5685-13-T-0045

Page 3 of 32

Section SF 1449 - CONTINUATION SHEET

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
0001 12 Months

One (1) Each 7 Passenger Van (automatic)
FFP
IAW attached Performance Work Statement. Period of Performance: 1 Oct 13 - 30
Sep 14.
FOB: Destination
NSN: W023-14-231-A001
PURCHASE REQUEST NUMBER: F2GGC13231A001
SIGNAL CODE: A

NET AMT

0002 12 Months

One (1) Each 5 Passenger Sedan
FFP
Automatic Transmission - IAW attached Performance Work Statement. 1 Oct 13 -
30 Sep 14.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 4 of 32

0003 12 Months

OGS Reader for one vehicle
FFP
OGS Reader for one vehicle (Not to exceed $180 per month). 1 Oct 13 - 30 Sep 14.

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

1001 12 Months
OPTION
FFP
Sep 15.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 5 of 32

1002 12 Months
OPTION
FFP
Automatic Transmission - IAW attached Performance Work Statement. Period of
Performance: 1 Oct 14 - 30 Sep 15.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

1003 12 Months
OPTION
FFP
OGS Reader for one vehicle (Not to exceed $180 per month). Period of

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 6 of 32

2001 12 Months
OPTION
FFP
Sep 16.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

2002 12 Months
OPTION
FFP
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 7 of 32

2003 12 Months
OPTION
FFP

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

3001 6 Months
OPTION
FFP
IAW attached Performance Work Statement. The term of extension will be
included within the written notice IAW 52.217-8, Option to Extend Services.
Period of Performance: 1 Oct 16 - 31 Mar 17.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 8 of 32

3002 6 Months
OPTION
FFP
Automatic Transmission - IAW attached Performance Work Statement. The term
of extension will be included within the written notice IAW 52.217-8, Option to
Extend Services. Period of Performance: 1 Oct 16 - 31 Mar 17.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

3003 6 Months
OPTION
FFP
OGS Reader for one vehicle (Not to exceed $180 per month). The term of
extension will be included within the written notice IAW 52.217-8, Option to

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

NOTICE TO POTENTIAL OFFERORS
Questions pertaining to this solicitation and its requirements are due no later than 04:00PM Local
Time, Tuesday, 17 September, 2013.

Please submit the following information to obtain a Gate Pass on to Incirlik AB for the Interview
Portion of the Evaluation. See FAR 52.212-2 for more information.
FA5685-13-T-0045

Page 9 of 32

Due to an established economic agreement between the United States Government and the
Government of Turkey, the U.S. Air Force intends to award this solicitation to a business
concern within the country of Turkey; as required by the Defense and Economic Cooperation
Agreement, Supplementary Agreement 3, Article VI. If it is discovered that the U.S. Air Force is
not able to make award to a business concern within the country of Turkey, it reserves the right to
make award to a business concern that is not within the country of Turkey.

AVAILABILTY OF FUNDS

This is currently an unfunded requirement subject to FAR 52.232-18, Availability of Funds.
Award will be made should funding become available. Please make your proposal is valid
through 01 November 2013. The Governments obligation under this contract is contingent upon
the availability of appropriated funds from which payment for contract purposes can be made. No
legal liability on the part of the Government for any payment may arise until funds are made
available to the Contracting Officer for this contract until the Contractor receives notice of such
availability, to be confirmed in writing by the Contracting Officer.

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

CLIN INSPECT AT INSPECT BY ACCEPT AT ACCEPT BY
0001 Destination Government Destination Government

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DELIVERY INFORMATION

CLIN DELIVERY DATE QUANTITY SHIP TO ADDRESS UIC

0001 POP 01-OCT-2013 TO
30-SEP-2014
N/A F2GGC1 HQ US ARMY NRDC ISTANBUL
CPT ANDREW ZAPF
ISTANBUL
672-3551
FOB: Destination
F2GGC1

0002 POP 01-OCT-2013 TO
30-SEP-2014
N/A (SAME AS PREVIOUS LOCATION)
FOB: Destination
F2GGC1

0003 POP 01-OCT-2013 TO
30-SEP-2014
FOB: Destination
F2GGC1

1001 POP 01-OCT-2014 TO
30-SEP-2015
FOB: Destination
F2GGC1

1002 POP 01-OCT-2014 TO
30-SEP-2015
FOB: Destination
F2GGC1

1003 POP 01-OCT-2014 TO
30-SEP-2015
FOB: Destination
F2GGC1

2001 POP 01-OCT-2015 TO
30-SEP-2016
FOB: Destination
F2GGC1

2002 POP 01-OCT-2015 TO
30-SEP-2016
FOB: Destination
F2GGC1

2003 POP 01-OCT-2015 TO
30-SEP-2016
FOB: Destination
F2GGC1

3001 POP 01-OCT-2016 TO
31-MAR-2017
FOB: Destination
F2GGC1

3002 POP 01-OCT-2016 TO
31-MAR-2017
FOB: Destination
F2GGC1

3003 POP 01-OCT-2016 TO
31-MAR-2017
FOB: Destination
F2GGC1

CLAUSES INCORPORATED BY REFERENCE

52.204-7 System for Award Management J UL 2013
FA5685-13-T-0045

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52.204-13 System for Award Management Maintenance J UL 2013
52.209-6 Protecting the Government's Interest When Subcontracting
With Contractors Debarred, Suspended, or Proposed for
Debarment
AUG 2013
52.209-10 Prohibition on Contracting With Inverted Domestic
Corporations
MAY 2012
52.212-1 Instructions to Offerors--Commercial Items J UL 2013
52.212-4 Contract Terms and Conditions--Commercial Items J UL 2013
52.217-5 Evaluation Of Options J UL 1990
52.222-50 Combating Trafficking in Persons FEB 2009
52.228-8 Liability and Insurance - Leased Motor Vehicles MAY 1999
52.232-1 Payments APR 1984
52.232-18 Availability Of Funds APR 1984
52.232-33 Payment by Electronic Funds Transfer--System for Award
Management
J UL 2013
52.233-1 Disputes J UL 2002
52.233-3 Protest After Award AUG 1996
52.247-34 F.O.B. Destination NOV 1991
252.204-7004 Alt A System for Award Management Alternate A MAY 2013
252.222-7002 Compliance With Local Labor Laws (Overseas) J UN 1997
252.229-7000 Invoices Exclusive of Taxes or Duties J UN 1997
252.232-7003 Electronic Submission of Payment Requests and Receiving
Reports
J UN 2012
252.232-7008 Assignment of Claims (Overseas) J UN 1997
252.233-7001 Choice of Law (Overseas) J UN 1997
252.243-7001 Pricing Of Contract Modifications DEC 1991

CLAUSES INCORPORATED BY FULL TEXT

52.212-2 EVALUATION--COMMERCIAL ITEMS (J AN 1999)

(a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer
conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The
following factors shall be used to evaluate offers:

Lowest Price Technically Acceptable in accordance with the Performance Work Statement Of Work titled
Vehicle Lease Services for US NSE to NRDC-T, Istanbul, Turkey dated 30 April 2013.

(b) Options. The Government will evaluate offers for award purposes by adding the total price for all options to the
total price for the basic requirement. The Government may determine that an offer is unacceptable if the option
prices are significantly unbalanced. Evaluation of options shall not obligate the Government to exercise the
option(s).

(c) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within
the time for acceptance specified in the offer, shall result in a binding contract without further action by either party.
Before the offer's specified expiration time, the Government may accept an offer (or part of an offer), whether or not
there are negotiations after its receipt, unless a written notice of withdrawal is received before award.

(End of provision)

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52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (AUG 2013)

An offeror shall complete only paragraph (b) of this provision if the offeror has completed the annual representations
and certifications electronically via http://www.acquisition.gov. If an offeror has not completed the annual
representations and certifications electronically at the System for Award Management (SAM) website, the offeror
shall complete only paragraphs (c) through (o) of this provision.

(a) Definitions. As used in this provision --

Economically disadvantaged women-owned small business (EDWOSB) Concern means a small business concern
that is at least 51 percent directly and unconditionally owned by, and the management and daily
business operations of which are controlled by, one or more women who are citizens of the United States and who
are economically disadvantaged in accordance with 13 CFR part 127. It automatically qualifies as a women-owned
small business eligible under the WOSB Program.

"Forced or indentured child labor" means all work or service-
(1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for
which the worker does not offer himself voluntarily; or

(2) Performed by any person under the age of 18 pursuant to a contract the enforcement of which can be
accomplished by process or penalties.

Inverted domestic corporation, as used in this section, means a foreign incorporated entity which is treated as an
inverted domestic corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United
States, or used to be a partnership in the United States, but now is incorporated in a foreign country, or is a
subsidiary whose parent corporation is incorporated in a foreign country, that meets the criteria specified in 6 U.S.C.
395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395(c). An inverted domestic corporation as
herein defined does not meet the definition of an inverted domestic corporation as defined by the Internal Revenue
Code at 26 U.S.C. 7874.

Manufactured end product means any end product in Federal Supply Classes (FSC) 1000-9999, except--

(1) FSC 5510, Lumber and Related Basic Wood Materials;

(2) Federal Supply Group (FSG) 87, Agricultural Supplies;

(3) FSG 88, Live Animals;

(4) FSG 89, Food and Related Consumables;

(5) FSC 9410, Crude Grades of Plant Materials;

(6) FSC 9430, Miscellaneous Crude Animal Products, Inedible;

(7) FSC 9440, Miscellaneous Crude Agricultural and Forestry Products;

(8) FSC 9610, Ores;

(9) FSC 9620, Minerals, Natural and Synthetic; and

(10) FSC 9630, Additive Metal Materials.

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Place of manufacture means the place where an end product is assembled out of components, or otherwise made or
processed from raw materials into the finished product that is to be provided to the Government. If a product is
disassembled and reassembled, the place of reassembly is not the place of manufacture.

Restricted business operations means business operations in Sudan that include power production activities, mineral
extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the
Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include
business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment
Act of 2007) conducting the business can demonstrate--

(1) Are conducted under contract directly and exclusively with the regional government of southern Sudan;

(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of
the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such
authorization;

(3) Consist of providing goods or services to marginalized populations of Sudan;

(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian
organization;

(5) Consist of providing goods or services that are used only to promote health or education; or

(6) Have been voluntarily suspended.

Sensitive technology--

(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used
specifically--

(i) To restrict the free flow of unbiased information in Iran; or

(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and

(2) Does not include information or informational materials the export of which the President does not have the
authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act
(50 U.S.C. 1702(b)(3)).

Service-disabled veteran-owned small business concern--

(1) Means a small business concern--

(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any
publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled
veterans; and

(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans
or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver
of such veteran.

(2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-
connected, as defined in 38 U.S.C. 101(16).

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"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not
dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business
under the criteria in 13 CFR Part 121 and size standards in this solicitation.

Subsidiary means an entity in which more than 50 percent of the entity is owned--

(1) Directly by a parent corporation; or

(2) Through another subsidiary of a parent corporation.

Veteran-owned small business concern means a small business concern--

(1) Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the
case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more
veterans; and

(2) The management and daily business operations of which are controlled by one or more veterans.

"Women-owned business concern" means a concern which is at least 51 percent owned by one or more women; or in
the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women;
and whose management and daily business operations are controlled by one or more women.

"Women-owned small business concern" means a small business concern--

(1) That is at least 51 percent owned by one or more women or, in the case of any publicly owned business, at least
51 percent of its stock is owned by one or more women; or

(2) Whose management and daily business operations are controlled by one or more women.

Women-owned small business (WOSB) concern eligible under the WOSB Program (in accordance with 13 CFR part
127), means a small business concern that is at least 51 percent directly and unconditionally owned by, and the
management and daily business operations of which are controlled by, one or more women who are citizens of the
United States.

(b) (1) Annual Representations and Certifications. Any changes provided by the offeror in paragraph (b)(2) of this
provision do not automatically change the representations and certifications posted electronically on the SAM
website.

(2) The offeror has completed the annual representations and certifications electronically via the SAM website
accessed through https://www.acquisition.gov. After reviewing the SAM database information, the offeror verifies by
submission of this offer that the representations and certifications currently posted electronically at FAR 52.212-3,
Offeror Representations and Certifications--Commercial Items, have been entered or updated in the last 12 months,
are current, accurate, complete, and applicable to this solicitation (including the business size standard applicable to
the NAICS code referenced for this solicitation), as of the date of this offer and are incorporated in this offer by
reference (see FAR 4.1201), except for paragraphs ----------.

[Offeror to identify the applicable paragraphs at (c) through (o) of this provision that the offeror has completed for
the purposes of this solicitation only, if any.) These amended representation(s) and/or certification(s) are also
incorporated in this offer and are current, accurate, and complete as of the date of this offer. Any changes provided
by the offeror are applicable to this solicitation only, and do not result in an update to the representations and
certifications posted electronically on ORCA.]

(c) Offerors must complete the following representations when the resulting contract will be performed in the United
States or its outlying areas. Check all that apply.
FA5685-13-T-0045

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(1) Small business concern. The offeror represents as part of its offer that it ( ) is, ( ) is not a small business
concern.

(2) Veteran-owned small business concern. (Complete only if the offeror represented itself as a small business
concern in paragraph (c)(1) of this provision.) The offeror represents as part of its offer that it ( ) is, ( ) is not a
veteran-owned small business concern.

(3) Service-disabled veteran-owned small business concern. (Complete only if the offeror represented itself as a
veteran-owned small business concern in paragraph (c)(2) of this provision.) The offeror represents as part of its
offer that it ( ) is, ( ) is not a service-disabled veteran-owned small business concern.

(4) Small disadvantaged business concern. (Complete only if the offeror represented itself as a small business
concern in paragraph (c)(1) of this provision.) The offeror represents, for general statistical purposes, that it ( ) is, (
) is not a small disadvantaged business concern as defined in 13 CFR 124.1002.

(5) Women-owned small business concern. (Complete only if the offeror represented itself as a small business
concern in paragraph (c)(1) of this provision.) The offeror represents that it ( ) is, ( ) is not a women-owned small
business concern.

Note to paragraphs (c)(8) and (9): Complete paragraphs (c)(8) and (c)(9) only if this solicitation is expected to
exceed the simplified acquisition threshold.

(6) WOSB concern eligible under the WOSB Program. [Complete only if the offeror represented itself as a women-
owned small business concern in paragraph (c)(5) of this provision.] The offeror represents that--

(i) It [ ] is, [ ] is not a WOSB concern eligible under the WOSB Program, has provided all the required documents to
the WOSB Repository, and no change in circumstances or adverse decisions have
been issued that affects its eligibility; and

(ii) It [ballot] is, [ballot] is not a joint venture that complies with the requirements of 13 CFR part 127, and the
representation in paragraph (c)(6)(i) of this provision is accurate for each WOSB concern eligible under the WOSB
Program participating in the joint venture. [The offeror shall enter the name or names of the WOSB concern eligible
under the WOSB Program and other small businesses that are participating in the joint venture: ----------.] Each
WOSB concern eligible under the WOSB Program participating in the joint venture shall submit a separate signed
copy of the WOSB representation.

(7) Economically disadvantaged women-owned small business (EDWOSB) concern. [Complete only if the offeror
represented itself as a WOSB concern eligible under the WOSB Program in (c)(6) of this provision.] The offeror
represents that--

(i) It [ballot] is, [ballot] is not an EDWOSB concern, has provided all the required documents to the WOSB
Repository, and no change in circumstances or adverse decisions have been issued that affects its eligibility; and

representation in paragraph (c)(7)(i) of this provision is accurate for each EDWOSB concern participating in the
joint venture. [The offeror shall enter the name or names of the EDWOSB concern and
other small businesses that are participating in the joint venture: ----------.] Each EDWOSB concern participating in
the joint venture shall submit a separate signed copy of the EDWOSB representation.

(8) Women-owned business concern (other than small business concern). (Complete only if the offeror is a women-
owned business concern and did not represent itself as a small business concern in paragraph (c)(1) of this
provision.) The offeror represents that it ( ) is, a women-owned business concern.

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(9) Tie bid priority for labor surplus area concerns. If this is an invitation for bid, small business offerors may
identify the labor surplus areas in which costs to be incurred on account of manufacturing or production (by offeror
or first-tier subcontractors) amount to more than 50 percent of the contract price:

_____________________________________________

(10) (Complete only if the solicitation contains the clause at FAR 52.219-23, Notice of Price Evaluation Adjustment
for Small Disadvantaged Business Concerns or FAR 52.219-25, Small Disadvantaged Business Participation
Program-Disadvantaged Status and Reporting, and the offeror desires a benefit based on its disadvantaged status.)

(i) General. The offeror represents that either--

(A) It ( ) is, ( ) is not certified by the Small Business Administration as a small disadvantaged business concern and
identified, on the date of this representation, as a certified small disadvantaged business concern in the SAM
Dynamic Small Business Search database maintained by the Small Business Administration, and that no material
change in disadvantaged ownership and control has occurred since its certification, and, where the concern is owned
by one or more individuals claiming disadvantaged status, the net worth of each individual upon whom the
certification is based does not exceed $750,000 after taking into account the applicable exclusions set forth at 13
CFR 124.104(c)(2); or

(B) It ( ) has, ( ) has not submitted a completed application to the Small Business Administration or a Private
Certifier to be certified as a small disadvantaged business concern in accordance with 13 CFR 124, Subpart B, and a
decision on that application is pending, and that no material change in disadvantaged ownership and control has
occurred since its application was submitted.

(ii) J oint Ventures under the Price Evaluation Adjustment for Small Disadvantaged Business Concerns. The offeror
represents, as part of its offer, that it is a joint venture that complies with the requirements in 13 CFR 124.1002(f)
and that the representation in paragraph (c)(10)(i) of this provision is accurate for the small disadvantaged business
concern that is participating in the joint venture. (The offeror shall enter the name of the small disadvantaged
business concern that is participating in the joint venture: ____________.)

(11) HUBZone small business concern. (Complete only if the offeror represented itself as a small business concern
in paragraph (c)(1) of this provision.) The offeror represents, as part of its offer, that--

(i) It [ ] is, [ ] is not a HUBZone small business concern listed, on the date of this representation, on the List of
Qualified HUBZone Small Business Concerns maintained by the Small Business Administration, and no material
changes in ownership and control, principal office, or HUBZone employee percentage have occurred since it was
certified in accordance with 13 CFR Part 126; and

(ii) It [ ] is, [ ] is not a HUBZone joint venture that complies with the requirements of 13 CFR Part 126, and the
representation in paragraph (c)(11)(i) of this provision is accurate for each HUBZone small business concern
participating in the HUBZone joint venture. [The offeror shall enter the names of each of the HUBZone small
business concerns participating in the HUBZone joint venture: _______.] Each HUBZone small business concern
participating in the HUBZone joint venture shall submit a separate
signed copy of the HUBZone representation.

(d) Certifications and representations required to implement provisions of Executive Order 11246--

(1) Previous Contracts and Compliance. The offeror represents that--

(i) It ( ) has, ( ) has not, participated in a previous contract or subcontract subject either to the Equal Opportunity
clause of this solicitation, the and

FA5685-13-T-0045

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(ii) It ( ) has, ( ) has not, filed all required compliance reports.

(2) Affirmative Action Compliance. The offeror represents that--

(i) It ( ) has developed and has on file, ( ) has not developed and does not have on file, at each establishment,
affirmative action programs required by rules and regulations of the Secretary of Labor (41 CFR Subparts 60-1 and
60-2), or

(ii) It ( ) has not previously had contracts subject to the written affirmative action programs requirement of the rules
and regulations of the Secretary of Labor.

(e) Certification Regarding Payments to Influence Federal Transactions (31 U.S.C. 1352). (Applies only if the
contract is expected to exceed $150,000.) By submission of its offer, the offeror certifies to the best of its knowledge
and belief that no Federal appropriated funds have been paid or will be paid to any person for influencing or
attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of
Congress or an employee of a Member of Congress on his or her behalf in connection with the award of any resultant
contract. If any registrants under the Lobbying Disclosure Act of 1995 have made a lobbying contact on behalf of the
offeror with respect to this contract, the offeror shall complete and submit, with its offer, OMB Standard Form LLL,
Disclosure of Lobbying Activities, to provide the name of the registrants. The offeror need not report regularly
employed officers or employees of the offeror to whom payments of reasonable compensation were made.

(f) Buy American Act Certificate. (Applies only if the clause at Federal Acquisition Regulation (FAR) 52.225-1, Buy
American Act --Supplies, is included in this solicitation.)

(1) The offeror certifies that each end product, except those listed in paragraph (f)(2) of this provision, is a domestic
end product and that for other than COTS items, the offeror has considered components of unknown origin to have
been mined, produced, or manufactured outside the United States. The offeror shall list as foreign end products those
end products manufactured in the United States that do not qualify as domestic end products, i.e., an end product that
is not a COTS item and does not meet the component test in paragraph (2) of the definition of domestic end
product. The terms commercially available off-the-shelf (COTS) item, component, domestic end product,
end product, foreign end product, and United States are defined in the clause of this solicitation entitled Buy
American Act--Supplies.
(2) Foreign End Products:

Line Item No. Country of Origin
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_

(List as necessary)

(3) The Government will evaluate offers in accordance with the policies and procedures of FAR Part 25.

(g)(1) Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate. (Applies only if the clause at FAR
52.225-3, Buy American Act--Free Trade Agreements--Israeli Trade Act, is included in this solicitation.)

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(i) The offeror certifies that each end product, except those listed in paragraph (g)(1)(ii) or (g)(1)(iii) of this
provision, is a domestic end product and that for other than COTS items, the offeror has considered components of
unknown origin to have been mined, produced, or manufactured outside the United States. The terms ``Bahrainian,
Moroccan, Omani, Panamanian, or Peruvian end product,'' ``commercially available off-the-shelf (COTS) item,''
``component,'' ``domestic end product,'' `ènd product,'' ``foreign end product,'' ``Free Trade Agreement country,''
``Free Trade Agreement country end product,'' `Ìsraeli end product,'' and `Ùnited States'' are defined in the clause
of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act.''

(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other than
Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end products) or Israeli end products as defined in the
clause of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act'':

Free Trade Agreement Country End Products (Other than Bahrainian, Moroccan, Omani, Panamanian, or Peruvian
End Products) or Israeli End Products:

_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_

[List as necessary]

(iii) The offeror shall list those supplies that are foreign end products (other than those listed in paragraph (g)(1)(ii)
of this provision) as defined in the clause of this solicitation entitled "Buy American Act-Free Trade Agreements-
Israeli Trade Act." The offeror shall list as other foreign end products those end products manufactured in the United
States that do not qualify as domestic end products, i.e., an end product that is not a COTS item and does not meet
the component test in paragraph (2) of the definition of domestic end product.
Other Foreign End Products:
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_
[List as necessary]

(iv) The Government will evaluate offers in accordance with the policies and procedures of FAR Part 25.
(2) Buy American Act-Free Trade Agreements-Israeli Trade Act Certificate, Alternate I (Jan 2004). If Alternate I to
the clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph
(g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are Canadian end products as defined in the clause of this
solicitation entitled "Buy American Act-Free Trade Agreements-Israeli Trade Act":
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Canadian End Products:
Line Item No.
______________________________________
_
______________________________________
_
______________________________________
_
[List as necessary]

(3) Buy American Act-Free Trade Agreements-Israeli Trade Act Certificate, Alternate II (J an 2004). If Alternate II
to the clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for
paragraph (g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are Canadian end products or Israeli end products as
defined in the clause of this solicitation entitled "Buy American Act-Free Trade Agreements-Israeli Trade Act":
Canadian or Israeli End Products:
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_
[List as necessary]

(4) Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate, Alternate III. If Alternate III to the
clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph

(g)(1)(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other
than Bahrainian, Korean, Moroccan, Omani, Panamanian, or Peruvian end products) or Israeli end products as
defined in the clause of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act'':

Free Trade Agreement Country End Products (Other than Bahrainian, Korean, Moroccan, Omani, Panamanian, or
Peruvian End Products) or Israeli End Products:

_____________
_
________________
_
_____________
_
________________
_
_____________ ________________
FA5685-13-T-0045

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_ _
[List as necessary]

(5) Trade Agreements Certificate. (Applies only if the clause at FAR 52.225-5, Trade Agreements, is included in this
solicitation.)

(i) The offeror certifies that each end product, except those listed in paragraph (g)(5)(ii) of this provision, is a U.S.-
made or designated country end product, as defined in the clause of this solicitation entitled "Trade Agreements."

(ii) The offeror shall list as other end products those end products that are not U.S.-made or designated country end
products.
Other End Products:
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_
(List as necessary)

(iii) The Government will evaluate offers in accordance with the policies and procedures of FAR Part 25. For line
items covered by the WTO GPA, the Government will evaluate offers of U.S.-made or designated country end
products without regard to the restrictions of the Buy American Act. The Government will consider for award only
offers of U.S.-made or designated country end products unless the Contracting Officer determines that there are no
offers for such products or that the offers for such products are insufficient to fulfill the requirements of the
solicitation.

(h) Certification Regarding Responsibility Matters (Executive Order 12689). (Applies only if the contract value is
expected to exceed the simplified acquisition threshold.) The offeror certifies, to the best of its knowledge and belief,
that --

(1) The offeror and/or any of its principals ( ) are, ( ) are not presently debarred, suspended, proposed for
debarment, or declared ineligible for the award of contracts by any Federal agency,

(2) ( ) Have, ( ) have not, within a three-year period preceding this offer, been convicted of or had a civil judgment
rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to
obtain, or performing a Federal, state or local government contract or subcontract; violation of Federal or state
antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements, tax evasion, violating Federal criminal tax laws, or
receiving stolen property; and

(3) ( ) are, ( ) are not presently indicted for, or otherwise criminally or civilly charged by a Government entity with,
commission of any of these offenses enumerated in paragraph (h)(2) of this clause; and

(4) ( ) Have, ( ) have not, within a three-year period preceding this offer, been notified of any delinquent Federal
taxes in an amount that exceeds $3,000 for which the liability remains unsatisfied.

(i) Taxes are considered delinquent if both of the following criteria apply:

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(A) The tax liability is finally determined. The liability is finally determined if it has been assessed. A liability is not
finally determined if there is a pending administrative or judicial challenge. In the case of a judicial challenge to the
liability, the liability is not finally determined until all judicial appeal rights have been exhausted.

(B) The taxpayer is delinquent in making payment. A taxpayer is delinquent if the taxpayer has failed to pay the tax
liability when full payment was due and required. A taxpayer is not delinquent in cases where enforced collection
action is precluded.

(ii) Examples.

(A) The taxpayer has received a statutory notice of deficiency, under I.R.C. Sec. 6212, which entitles the taxpayer to
seek Tax Court review of a proposed tax deficiency. This is not a delinquent tax because it is not a final tax liability.
Should the taxpayer seek Tax Court review, this will not be a final tax liability until the taxpayer has exercised all
judicial appeal rights.

(B) The IRS has filed a notice of Federal tax lien with respect to an assessed tax liability, and the taxpayer has been
issued a notice under I.R.C. Sec. 6320 entitling the taxpayer to request a hearing with the IRS Office of Appeals
contesting the lien filing, and to further appeal to the Tax Court if the IRS determines to sustain the lien filing. In the
course of the hearing, the taxpayer is entitled to contest the underlying tax liability because the taxpayer has had no
prior opportunity to contest the liability. This is not a delinquent tax because it is not a final tax liability. Should the
taxpayer seek tax court review, this will not be a final tax liability until the taxpayer has exercised all judicial appeal
rights.

(C) The taxpayer has entered into an installment agreement pursuant to I.R.C. Sec. 6159. The taxpayer is making
timely payments and is in full compliance with the agreement terms. The taxpayer is not delinquent because the
taxpayer is not currently required to make full payment.

(D) The taxpayer has filed for bankruptcy protection. The taxpayer is not delinquent because enforced collection
action is stayed under 11 U.S.C. 362 (the Bankruptcy Code).

(i) Certification Regarding Knowledge of Child Labor for Listed End Products (Executive Order 13126). [The
Contracting Officer must list in paragraph (i)(1) any end products being acquired under this solicitation that are
included in the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor, unless
excluded at 22.1503(b).]

(1) Listed end products.

Listed End Product Listed Countriesof Origin

(2) Certification. [If the Contracting Officer has identified end products and countries of origin in paragraph (i)(1)
of this provision, then the offeror must certify to either (i)(2)(i) or (i)(2)(ii) by checking the appropriate block.]

[ ] (i) The offeror will not supply any end product listed in paragraph (i)(1) of this provision that was mined,
produced, or manufactured in the corresponding country as listed for that product.

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[ ] (ii) The offeror may supply an end product listed in paragraph (i)(1) of this provision that was mined, produced,
or manufactured in the corresponding country as listed for that product. The offeror certifies that it has made a good
faith effort to determine whether forced or indentured child labor was used to mine, produce, or manufacture any
such end product furnished under this contract. On the basis of those efforts, the offeror certifies that it is not aware
of any such use of child labor.
(j) Place of manufacture. (Does not apply unless the solicitation is predominantly for the acquisition of
manufactured end products.) For statistical purposes only, the offeror shall indicate whether the place of manufacture
of the end products it expects to provide in response to this solicitation is predominantly

(1) ( ) In the United States (Check this box if the total anticipated price of offered end products manufactured in the
United States exceeds the total anticipated price of offered end products manufactured outside the United States); or

(2) ( ) Outside the United States.

(j) Place of manufacture. (Does not apply unless the solicitation is predominantly for the acquisition of manufactured
end products.) For statistical purposes only, the offeror shall indicate whether the place of manufacture of the end
products it expects to provide in response to this solicitation is predominantly--



(k) Certificates regarding exemptions from the application of the Service Contract Act. (Certification by the offeror
as to its compliance with respect to the contract also constitutes its certification as to compliance by its subcontractor
if it subcontracts out the exempt services.)

[The contracting officer is to check a box to indicate if paragraph (k)(1) or (k)(2) applies.]

[ ] (1) Maintenance, calibration, or repair of certain equipment as described in FAR 22.1003-4(c)(1). The offeror (
) does ( ) does not certify that

(i) The items of equipment to be serviced under this contract are used regularly for other than Governmental
purposes and are sold or traded by the offeror (or subcontractor in the case of an exempt subcontract) in substantial
quantities to the general public in the course of normal business operations;

(ii) The services will be furnished at prices which are, or are based on, established catalog or market prices (see FAR
22.1003-4(c)(2)(ii)) for the maintenance, calibration, or repair of such equipment; and

(iii) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract
will be the same as that used for these employees and equivalent employees servicing the same equipment of
commercial customers.

[ ] (2) Certain services as described in FAR 22.1003-4(d)(1). The offeror ( ) does ( ) does not certify that

(i) The services under the contract are offered and sold regularly to non-Governmental customers, and are provided
by the offeror (or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in
the course of normal business operations;

(ii) The contract services will be furnished at prices that are, or are based on, established catalog or market prices
(see FAR 22.1003-4(d)(2)(iii));

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(iii) Each service employee who will perform the services under the contract will spend only a small portion of his or
her time (a monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20
percent of available hours during the contract period if the contract period is less than a month) servicing the
Government contract; and
(iv) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract
is the same as that used for these employees and equivalent employees servicing commercial customers.

(3) If paragraph (k)(1) or (k)(2) of this clause applies

(i) If the offeror does not certify to the conditions in paragraph (k)(1) or (k)(2) and the Contracting Officer did not
attach a Service Contract Act wage determination to the solicitation, the offeror shall notify the Contracting Officer
as soon as possible; and

(ii) The Contracting Officer may not make an award to the offeror if the offeror fails to execute the certification in
paragraph (k)(1) or (k)(2) of this clause or to contact the Contracting Officer as required in paragraph (k)(3)(i) of this
clause.

(l) Taxpayer Identification Number (TIN) (26 U.S.C. 6109, 31 U.S.C. 7701). (Not applicable if the offeror is
required to provide this information to the SAM database to be eligible for award.)

(1) All offerors must submit the information required in paragraphs (l)(3) through (l)(5) of this provision to comply
with debt collection requirements of 31 U.S.C. 7701(c) and 3325(d), reporting requirements of 26 U.S.C. 6041,
6041A, and 6050M, and implementing regulations issued by the Internal Revenue Service (IRS).

(2) The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the
offeror's relationship with the Government (31 U.S.C. 7701(c)(3)). If the resulting contract is subject to the payment
reporting requirements described in FAR 4.904, the TIN provided hereunder may be matched with IRS records to
verify the accuracy of the offeror's TIN.

(3) Taxpayer Identification Number (TIN).

( ) TIN: --------------------.

( ) TIN has been applied for.

( ) TIN is not required because:

( ) Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively
connected with the conduct of a trade or business in the United States and does not have an office or place of
business or a fiscal paying agent in the United States;

( ) Offeror is an agency or instrumentality of a foreign government;

( ) Offeror is an agency or instrumentality of the Federal Government.

(4) Type of organization.

( ) Sole proprietorship;

( ) Partnership;

( ) Corporate entity (not tax-exempt);

( ) Corporate entity (tax-exempt);
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( ) Government entity (Federal, State, or local);

( ) Foreign government;

( ) International organization per 26 CFR 1.6049-4;

( ) Other ----------.

(5) Common parent.

( ) Offeror is not owned or controlled by a common parent;

( ) Name and TIN of common parent:

Name --------------------.
TIN --------------------.

(m) Restricted business operations in Sudan. By submission of its offer, the offeror certifies that the offeror does not
conduct any restricted business operations in Sudan.

(n) Prohibition on Contracting with Inverted Domestic Corporations

(1) Relation to Internal Revenue Code. An inverted domestic corporation as herein defined does not meet the
definition of an inverted domestic corporation as defined by the Internal Revenue Code 25 U.S.C. 7874.

(2) Representation. By submission of its offer, the offeror represents that--

(i) It is not an inverted domestic corporation; and

(ii) It is not a subsidiary of an inverted domestic corporation.

(o) Prohibition on contracting with entities engaging in certain activities or transactions relating to Iran.

(1) The offeror shall email questions concerning sensitive technology to the Department of State at
CISADA106@state.gov.

(2) Representation and certifications. Unless a waiver is granted or an exception applies as provided in paragraph
(o)(3) of this provision, by submission of its offer, the offeror--

(i) Represents, to the best of its knowledge and belief, that the offeror does not export any sensitive technology to the
government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of,
the government of Iran;

(ii) Certifies that the offeror, or any person owned or controlled by the offeror, does not engage in any activities for
which sanctions may be imposed under section 5 of the Iran Sanctions Act; and

(iii) Certifies that the offeror, and any person owned or controlled by the offeror, does not knowingly engage in any
transaction that exceeds $3,000 with Iran's Revolutionary Guard Corps or any of its officials, agents, or affiliates, the
property and interests in property of which are blocked pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (see OFAC's Specially Designated
Nationals and Blocked Persons List at http://www.treasury.gov/ofac/downloads/t11sdn.pdf).

(3) The representation and certification requirements of paragraph (o)(2) of this provision do not apply if
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(i) This solicitation includes a trade agreements certification (e.g., 52.212-3(g) or a comparable agency provision);
and

(ii) The offeror has certified that all the offered products to be supplied are designated country end products.

(End of provision)

52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS--COMMERCIAL ITEMS (AUG 2013) (DEVIATION)

(a) Comptroller General Examination of Record. The Contractor shall comply with the provisions of this paragraph
(a) if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and
does not contain the clause at 52.215-2, Audit and Records-Negotiation.

(1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall
have access to and right to examine any of the Contractor's directly pertinent records involving transactions related to
this contract.

(2) The Contractor shall make available at its offices at all reasonable times, the records, materials, and other
evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any
shorter period specified in FAR Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If
this contract is completely or partially terminated, the records relating to the work terminated shall be made available
for 3 years after any resulting final termination settlement. Records relating to appeals under the disputes clause or to
litigation or the settlement of claims arising under or relating to this contract shall be made available until such
appeals, litigation, or claims are finally resolved.

(3) As used in this clause, records include books, documents, accounting procedures and practices, and other data,
regardless of type and regardless of form. This does not require the Contractor to create or maintain any record that
the Contractor does not maintain in the ordinary course of business or pursuant to a provision of law.

(b)(1) Notwithstanding the requirements of any other clause in this contract, the Contractor is not required to flow
down any FAR clause, other than those in this paragraph (b)(i) in a subcontract for commercial items. Unless
otherwise indicated below, the extent of the flow down shall be as required by the clause-

(i) 52.203-13, Contractor Code of Business Ethics and Conduct (APR 2010) (Pub. L. 110-252, Title VI, Chapter 1
(41 U.S.C. 251 note).

(ii) 52.219-8, Utilization of Small Business Concerns (J ul 2013) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts
that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns)
exceeds $650,000 ($1.5 million for construction of any public facility), the subcontractor must include 52.219-8 in
lower tier subcontracts that offer subcontracting opportunities.

(iii) Reserved.

(iv) 52.222-26, Equal Opportunity (MAR 2007) (E.O. 11246).

(v) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible
Veterans (SEP 2006) (38 U.S.C. 4212).

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(vi) 52.222-36, Affirmative Action for Workers with Disabilities (J UN 1998) (29 U.S.C. 793).

(vii) 52.222-40, Notification of Employee Rights Under the National Labor Relations Act (DEC 2010) (E.O. 13496).
Flow down required in accordance with paragraph (f) of FAR clause 52.222-40.

(viii) 52.222-41, Service Contract Act of 1965 (Nov 2007) (41 U.S.C. 351, et seq.).

(ix) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22 U.S.C. 7104(g)).

X Alternate I (AUG 2007) of 52.222-50 (22 U.S.C. 7104(g)).

(x) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration,
or Repair of Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.).

(xi) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--
Requirements (FEB 2009) (41 U.S.C. 351, et seq.).

(xii) 52.222-54, Employment Eligibility Verification (J UL 2012).

(xiii) 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations. (MAR 2009) (Pub. L. 110-247). Flow
down required in accordance with paragraph (e) of FAR clause 52.226-6.

(xiv) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (FEB 2006) (46 U.S.C. Appx
1241(b) and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.

(2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of
additional clauses necessary to satisfy its contractual obligations.

(End of clause)

52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the
contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary
of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder
shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor
within 30 days.

(End of clause)

52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within 30 days;
provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 60
before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 3
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Years and 6 Months.

(End of clause)

52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

This solicitation incorporates one or more solicitation provisions by reference, with the same force and effect as if
they were given in full text. Upon request, the Contracting Officer will make their full text available. The offeror is
cautioned that the listed provisions may include blocks that must be completed by the offeror and submitted with its
quotation or offer. In lieu of submitting the full text of those provisions, the offeror may identify the provision by
paragraph identifier and provide the appropriate information with its quotation or offer. Also, the full text of a
solicitation provision may be accessed electronically at this/these address(es):

http://farsite.hill.af.mil

(End of provision

52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in
full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may
be accessed electronically at this/these address(es):


(End of clause)

52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)

(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an
authorized deviation is indicated by the addition of "(DEVIATION)" after the date of the clause.

(b) The use in this solicitation or contract of any Defense Federal Acquisition Regulation Supplement (48 CFR
Chapter 2) clause with an authorized deviation is indicated by the addition of "(DEVIATION)" after the name of the
regulation.

(End of clause)

252.229-7001 TAX RELIEF (J UN 1997)

(a) Prices set forth in this contract are exclusive of all taxes and duties from which the United States Government is
exempt by virtue of tax agreements between the United States Government and the Contractor's government. The
following taxes or duties have been excluded from the contract price:

NAME OF TAX: VAT RATE (PERCENTAGE): 18%

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(b) The Contractor's invoice shall list separately the gross price, amount of tax deducted, and net price charged.

(c) When items manufactured to United States Government specifications are being acquired, the Contractor shall
identify the materials or components intended to be imported in order to ensure that relief from import duties is
obtained. If the Contractor intends to use imported products from inventories on hand, the price of which includes a
factor for import duties, the Contractor shall ensure the United States Government's exemption from these taxes. The
Contractor may obtain a refund of the import duties from its government or request the duty-free import of an
amount of supplies or components corresponding to that used from inventory for this contract.

(End of clause)

252.247-7023 TRANSPORTATION OF SUPPLIES BY SEA (J UN 2013) ALTERNATE III (MAY 2002)

(a) Definitions. As used in this clause --

(1) "Components" means articles, materials, and supplies incorporated directly into end products at any level of
manufacture, fabrication, or assembly by the Contractor or any subcontractor.

(2) "Department of Defense" (DoD) means the Army, Navy, Air Force, Marine Corps, and defense agencies.

(3) "Foreign flag vessel" means any vessel that is not a U.S.-flag vessel.

(4) "Ocean transportation" means any transportation aboard a ship, vessel, boat, barge, or ferry through international
waters.

(5) "Subcontractor" means a supplier, materialman, distributor, or vendor at any level below the prime contractor
whose contractual obligation to perform results from, or is conditioned upon, award of the prime contract and who is
performing any part of the work or other requirement of the prime contract.

(6) "Supplies" means all property, except land and interests in land, that is clearly identifiable for eventual use by or
owned by the DoD at the time of transportation by sea.

(i) An item is clearly identifiable for eventual use by the DoD if, for example, the contract documentation contains a
reference to a DoD contract number or a military destination.

(ii) "Supplies" includes (but is not limited to) public works; buildings and facilities; ships; floating equipment and
vessels of every character, type, and description, with parts, subassemblies, accessories, and equipment; machine
tools; material; equipment; stores of all kinds; end items; construction materials; and components of the foregoing.

(7) "U.S.-flag vessel" means a vessel of the United States or belonging to the United States, including any vessel
registered or having national status under the laws of the United States.

(b)(1) The Contractor shall use U.S.-flag vessels when transporting any supplies by sea under this contract.

(2) A subcontractor transporting supplies by sea under this contract shall use U.S.-flag vessels if--

(i) This contract is a construction contract; or

(ii) The supplies being transported are--

(A) Noncommercial items; or

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(B) Commercial items that--

(1) The Contractor is reselling or distributing to the Government without adding value (generally, the Contractor
does not add value to items that it contracts for f.o.b. destination shipment);

(2) Are shipped in direct support of U.S. military contingency operations, exercises, or forces deployed in
humanitarian or peacekeeping operations; or

(3) Are commissary or exchange cargoes transported outside of the Defense Transportation System in accordance
with 10 U.S.C. 2643.

(c) The Contractor and its subcontractors may request that the Contracting Officer authorize shipment in foreign-flag
vessels, or designate available U.S.-flag vessels, if the Contractor or a subcontractor believes that --

(1) U.S.-flag vessels are not available for timely shipment;

(2) The freight charges are inordinately excessive or unreasonable; or

(3) Freight charges are higher than charges to private persons for transportation of like goods.

(d) The Contractor must submit any request for use of other than U.S.-flag vessels in writing to the Contracting
Officer at least 45 days prior to the sailing date necessary to meet its delivery schedules. The Contracting Officer
will process requests submitted after such date(s) as expeditiously as possible, but the Contracting Officer's failure to
grant approvals to meet the shipper's sailing date will not of itself constitute a compensable delay under this or any
other clause of this contract. Requests shall contain at a minimum --

(1) Type, weight, and cube of cargo;

(2) Required shipping date;

(3) Special handling and discharge requirements;

(4) Loading and discharge points;

(5) Name of shipper and consignee;

(6) Prime contract number; and

(7) A documented description of efforts made to secure U.S.-flag vessels, including points of contact (with names
and telephone numbers) with at least two U.S.-flag carriers contacted. Copies of telephone notes, telegraphic and
facsimile message or letters will be sufficient for this purpose.

(e) The Contractor shall, within 30 days after each shipment covered by this clause, provide the Contracting Officer
and the Maritime Administration, Office of Cargo Preference, U.S. Department of Transportation, 400 Seventh
Street SW., Washington, DC 20590, one copy of the rated on board vessel operating carrier's ocean bill of lading,
which shall contain the following information:

(1) Prime contract number;

(2) Name of vessel;

(3) Vessel flag of registry;

(4) Date of loading;
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(5) Port of loading;

(6) Port of final discharge;

(7) Description of commodity;

(8) Gross weight in pounds and cubic feet if available;

(9) Total ocean freight in U.S. dollars; and

(10) Name of the steamship company.

(f) The Contractor shall insert the substance of this clause, including this paragraph (f), in subcontracts that are for a
type of supplies described in paragraph (b)(2) of this clause.

(End of clause)

5352.201-9101 Ombudsman. OMBUDSMAN (NOV 2012)

(a) An ombudsman has been appointed to hear and facilitate the resolution of concerns from offerors, potential
offerors, and others for this acquisition. When requested, the ombudsman will maintain strict confidentiality as to the
source of the concern. The existence of the ombudsman does not affect the authority of the program manager,
contracting officer, or source selection official. Further, the ombudsman does not participate in the evaluation of
proposals, the source selection process, or the adjudication of protests or formal contract disputes. The ombudsman
may refer the interested party to another official who can resolve the concern.

(b) Before consulting with an ombudsman, interested parties must first address their concerns, issues, disagreements,
and/or recommendations to the contracting officer for resolution. Consulting an ombudsman does not alter or
postpone the timelines for any other processes (e.g., agency level bid protests, GAO bid protests, requests for
debriefings, employee-employer actions, contests of OMB Circular A-76 competition performance decisions).

(c) If resolution cannot be made by the contracting officer, the interested party may contact the
Center/MAJ COM/DRU or AFISRA ombudsmen, [Insert names, addresses, telephone numbers, facsimile numbers,
and e-mail addresses]. Concerns, issues, disagreements, and recommendations that cannot be resolved at the
Center/MAJ COM/DRU or AFISRA level, may be brought by the interested party for further consideration to the Air
Force ombudsman, Associate Deputy Assistant Secretary (ADAS) (Contracting), SAF/AQC, 1060 Air Force
Pentagon, Washington DC 20330-1060, phone number (571) 256-2397, facsimile number (571) 256-2431.

Primary:
Ms Tara Petersen
HQ USAFE/A7K, UNIT 3050, Box 10, APO AE 09094-0110
HQ USAFE/A7K, Flugplatz Ramstein, 66877 Ramstein Germany
E-mail: tara.petersen@ramstein.af.mil
Tel: 0049-637-147-2209, Fax: (49)-6731-47-2025
Alternate:
Heidi Hoehn
E-mail: heidi.hoehn@ramstein.af.mil
Tel: 0049-637-147-9330, Fax: (49)-6731-47-2025
FA5685-13-T-0045

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Concerns, issues, disagreements, and recommendations that cannot be resolved at the MAJ COM/DRU level, may be
brought by the concerned party for further consideration to the Air Force ombudsman, Associate Deputy Assistant
Secretary (ADAS) (Contracting), SAF/AQC, 1060 Air Force Pentagon, Washington DC 20330-1060, phone number
(703) 588-7004, facsimile number (703) 588-1067.
(d) The ombudsman has no authority to render a decision that binds the agency.
(e) Do not contact the ombudsman to request copies of the solicitation, verify offer due date, or clarify technical
requirements. Such inquiries shall be directed to the Contracting Officer.

(End of clause)

5352.242-9000 Contractor access to Air Force installations.

CONTRACTOR ACCESS TO AIR FORCE INSTALLATIONS (NOV 2012)

(a) The contractor shall obtain base identification and vehicle passes for all contractor personnel who make frequent
visits to or perform work on the Air Force installation(s) cited in the contract. Contractor personnel are required to
wear or prominently display installation identification badges or contractor-furnished, contractor identification
badges while visiting or performing work on the installation.

(b) The contractor shall submit a written request on company letterhead to the contracting officer listing the
following: contract number, location of work site, start and stop dates, and names of employees and subcontractor
employees needing access to the base. The letter will also specify the individual(s) authorized to sign for a request
for base identification credentials or vehicle passes. The contracting officer will endorse the request and forward it to
the issuing base pass and registration office or security police for processing. When reporting to the registration
office, the authorized contractor individual(s) should provide a valid drivers license, current vehicle registration,
and valid vehicle insurance certificate to obtain a vehicle pass.

(c) Our office will certify applications for gate passes for Turkish pass and ID. The Turkish Air Force will coordinate
with contractors to attain the necessary documents and information to grant access to the installation. The U.S.
government will not be held liable for any delays or breach of contract caused by refusal of the Turkish Air Force to
grant a gate pass to a contractor. If a gate pass is not granted to a contractor allowing the delivery of goods,
execution of warranty support, or performance of services please contact the contracting officer immediately. Below
is a number to the Turkish Air Force Pass and ID for all gate pass issues: 322-316-4184 or 322-316-4186

(d) Performance of this contract is located on a Turkish Air Force installation, and all access to the installation is
controlled and granted by the Turkish Air Force (TAF) Security Battalion.

(e) Prior to commencing work the Contractor shall furnish a complete list of all vehicles and personnel involved in
the accomplishment of the contract work to the Turkish Air Force Pass and ID or designated representative to ensure
access to the respective installations. The following information must be furnished on this list:

Vehicles: Make, model, year of manufacture, capacity, type, license number, and insurance policy number.
Personnel: First and last name, date of birth, place of birth, passport or identification card number, place of residence
and any such other information, as required, to satisfy individual air base or army security regulations governing
access to granting of passes to the particular military establishment.

(f) All passes may be obtained from the Turkish Air Force Pass and ID or designated representative approximately
10 days after the aforementioned lists have been submitted. The contractor shall inform all assigned workers that
they may be subject to search, at the discretion of the installation commander, when entering or leaving the
installation.

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(g) Installation passes will be returned immediately to the Issuing Officer when:

(1) Pass has expired.
(2) Pass holder is no longer employed by the Contractor.
(3) Contract is completed.
(4) Issuing Officer so directs.

(h) During performance of the contract, the contractor shall be responsible for obtaining required identification for
newly assigned personnel and for prompt return of credentials and vehicle passes for any employee who no longer
requires access to the work site.
(i) When work under this contract requires unescorted entry to controlled or restricted areas, the contractor shall
comply with AFI 31-101, Volume 1, The Air Force Installation Security Program, and AFI 31-501, Personnel
Security Program Management, as applicable.

(j) Upon completion or termination of the contract or expiration of the identification passes, the prime contractor
shall ensure that all base identification passes issued to employees and subcontractor employees are returned to the
issuing office.

(k) Failure to comply with these requirements may result in withholding of final payment.

(End of clause)

FA5685-13-T-0045
Notice Type:
Buyers: Login | Register Vendors: Login | R
Original Synopsis
Sep 08, 2013
9:48 am

Synopsis:
Added: Sep 08, 2013 9:48 am
Posted Date: September 8, 2013
FA5685-13-T-0045.pdf (201.97 Kb)
Description: Solicitation
Vehicle_PWS_NRDC-T_Istanbul_for_FY14.pdf (25.72 Kb)
Description: Performance Work Statement (PWS)
Incirlik AB
Unit 7090 Box 127
Incirlik AB, Turkey, 09824-0280
ALL FILES
FA568
Sep 0
FA
Ve
GENERAL
Notice Ty
Combined
Posted Da
Septembe
Response
Sep 20, 20
Archiving
Automatic
date
Archive D
October 5
Original S
N/A
Set Aside
N/A
Classifica
W -- Lease
NAICS Co
532 -- Ren
Services/5
Leasing
NRDC-T Vehicle Lease
Solicitation Number: FA5685-13-T-0045
Office: United States Air Force Installation Contracting Agencies - Europe
Location: 39th Contracting Sqd - Incirlik
FA5685-13-T-0045
Primary Point of Contact.:
Eric P. Lannon
eric.lannon@us.af.mil
Phone: 90-322-3168075
For Help: Federal Service Desk Accessibility

39 CONS/LGC - FA5685 (FOREIGN)
39 UNCU KONTRAT SUBAYLIGI
BINA NO. 485 10.NCU TANKER
US KOMUTANLIGI
INCIRLIK/ADANA
90-322-316-8076
90-322-316-1090
UNDER DPAS (15 CFR 700)
11. DELIVERY FOR FOB
RFQ
SEE SCHEDULE
14. METHOD OF SOLICITATION
IFB RFP
CODE
SEE ADDENDUM
BLOCK IS MARKED
DESTINATION UNLESS
12. DISCOUNT TERMS
(No Collect Calls)
13b. RATING
13a. THIS CONTRACT IS A RATED ORDER
X
CODE
FA5685-13-T-0045 08-Sep-2013
b. TELEPHONE NUMBER
90-322-3168075
8. OFFER DUE DATE/LOCAL TIME
04:00 PM 20 Sep 2013
5. SOLICITATION NUMBER 6. SOLICITATION ISSUE DATE
STANDARD FORM 1449 (REV 3/2005)
Prescribed by GSA
FAR (48 CFR) 53.212
(TYPE OR PRINT)
(SIGNATURE OF CONTRACTING OFFICER) 31c. DATE SI GNED
ADDENDA
X
ARE
26. TOTAL AWARD AMOUNT (For Govt. Use Only)
22. UNIT 23. UNIT PRICE 24. AMOUNT 21. QUANTITY
CODE 10. THIS ACQUISITION IS
UNRESTRICTED
FAX:
NAICS:
TEL:
CODE 18a. PAYMENT WILL BE MADE BY
OFFEROR
SUCH ADDRESS IN OFFER
17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT
BELOW IS CHECKED
TEL.
FA5685
SIZE STD:
9. ISSUED BY
FACILITY
CODE
17a.CONTRACTOR/
18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a. UNLESS BLOCK
15. DELIVER TO CODE
F2GGC1
16. ADMINISTERED BY
F2GGC1 HQ US ARMY NRDC ISTANBUL
CPT ANDREW ZAPF
ISTANBUL
TEL: 672-3551 FAX:
7. FOR SOLICITATION
INFORMATION CALL:
a. NAME
ERIC P LANNON
2. CONTRACT NO. 3. AWARD/EFFECTIVE DATE 4. ORDER NUMBER
(TYPE OR PRINT)
30b. NAME AND TITLE OF SIGNER 30c. DATE SIGNED
31b. NAME OF CONTRACTI NG OFFI CER
30a. SIGNATURE OF OFFEROR/CONTRACTOR
31a. UNI TED STATES OF AMERI CA
1
27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1. 52.212-4. FAR 52.212-3. 52.212-5 ARE ATTACHED.
X
25. ACCOUNTING AND APPROPRIATION DATA
1. REQUISITION NUMBER
19. ITEM NO. 20. SCHEDULE OF SUPPLIES/ SERVICES
SEE SCHEDULE
TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS
SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL SHEETS
SUBJ ECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.
SB
HUBZONE SB
SET ASIDE: % FOR
PAGE 1 OF 32
OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, AND 30
F2GGC13231A001
ARE NOT ATTACHED
27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED
TEL: EMAI L:
1 COPIES
(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE
SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:
. OFFER DATED YOUR OFFER ON SOLICITATION
28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN 29. AWARD OF CONTRACT: REFERENCE
X
8(A)
SVC-DISABLED VET-OWNED SB
EMERGING SB
X

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE
(CONTINUED)
SEE SCHEDULE
19. ITEM NO. 20. SCHEDULE OF SUPPLIES/ SERVICES 21. QUANTITY 22. UNIT 24. AMOUNT
PAGE 2 OF
23. UNIT PRICE
32
ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED: ______________________________________________________
32a. QUANTITY IN COLUMN 21 HAS BEEN
RECEIVED INSPECTED
32b. SIGNATURE OF AUTHORIZED GOVERNMENT
REPRESENTATIVE
32c. DATE 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT
REPRESENTATIVE
32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE
37. CHECK NUMBER
FINAL PARTIAL COMPLETE
36. PAYMENT 35. AMOUNT VERIFIED
CORRECT FOR
34. VOUCHER NUMBER
FINAL
33. SHIP NUMBER
PARTIAL
38. S/R ACCOUNT NUMBER 39. S/R VOUCHER NUMBER 40. PAID BY
41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT
41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE
42a. RECEIVED BY (Print)
42b. RECEIVED AT (Location)
42c. DATE REC'D (YY/MM/DD) 42d. TOTAL CONTAINERS
STANDARD FORM 1449 (REV 3/2005) BACK
Prescribed by GSA
FAR (48 CFR) 53.212
FA5685-13-T-0045

Page 3 of 32

Section SF 1449 - CONTINUATION SHEET

0001 12 Months

FFP
Sep 14.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

0002 12 Months

FFP
Automatic Transmission - IAW attached Performance Work Statement. 1 Oct 13 -
30 Sep 14.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 4 of 32

0003 12 Months

FFP
OGS Reader for one vehicle (Not to exceed $180 per month). 1 Oct 13 - 30 Sep 14.

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

1001 12 Months
OPTION
FFP
Sep 15.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 5 of 32

1002 12 Months
OPTION
FFP
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

1003 12 Months
OPTION
FFP

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 6 of 32

2001 12 Months
OPTION
FFP
Sep 16.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

2002 12 Months
OPTION
FFP
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 7 of 32

2003 12 Months
OPTION
FFP

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

3001 6 Months
OPTION
FFP
IAW attached Performance Work Statement. The term of extension will be
included within the written notice IAW 52.217-8, Option to Extend Services.
Period of Performance: 1 Oct 16 - 31 Mar 17.
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

FA5685-13-T-0045

Page 8 of 32

3002 6 Months
OPTION
FFP
Automatic Transmission - IAW attached Performance Work Statement. The term
of extension will be included within the written notice IAW 52.217-8, Option to
FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

3003 6 Months
OPTION
FFP
OGS Reader for one vehicle (Not to exceed $180 per month). The term of
extension will be included within the written notice IAW 52.217-8, Option to

FOB: Destination
NSN: W023-14-231-A001
SIGNAL CODE: A

NET AMT

NOTICE TO POTENTIAL OFFERORS
Questions pertaining to this solicitation and its requirements are due no later than 04:00PM Local
Time, Tuesday, 17 September, 2013.

Please submit the following information to obtain a Gate Pass on to Incirlik AB for the Interview
Portion of the Evaluation. See FAR 52.212-2 for more information.
FA5685-13-T-0045

Page 9 of 32

Due to an established economic agreement between the United States Government and the
Government of Turkey, the U.S. Air Force intends to award this solicitation to a business
concern within the country of Turkey; as required by the Defense and Economic Cooperation
Agreement, Supplementary Agreement 3, Article VI. If it is discovered that the U.S. Air Force is
not able to make award to a business concern within the country of Turkey, it reserves the right to
make award to a business concern that is not within the country of Turkey.

AVAILABILTY OF FUNDS

This is currently an unfunded requirement subject to FAR 52.232-18, Availability of Funds.
Award will be made should funding become available. Please make your proposal is valid
through 01 November 2013. The Governments obligation under this contract is contingent upon
the availability of appropriated funds from which payment for contract purposes can be made. No
legal liability on the part of the Government for any payment may arise until funds are made
available to the Contracting Officer for this contract until the Contractor receives notice of such
availability, to be confirmed in writing by the Contracting Officer.

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

CLIN INSPECT AT INSPECT BY ACCEPT AT ACCEPT BY

FA5685-13-T-0045

Page 10 of 32

DELIVERY INFORMATION

CLIN DELIVERY DATE QUANTITY SHIP TO ADDRESS UIC

0001 POP 01-OCT-2013 TO
30-SEP-2014
N/A F2GGC1 HQ US ARMY NRDC ISTANBUL
CPT ANDREW ZAPF
ISTANBUL
672-3551
FOB: Destination
F2GGC1

0002 POP 01-OCT-2013 TO
30-SEP-2014
FOB: Destination
F2GGC1

0003 POP 01-OCT-2013 TO
30-SEP-2014
FOB: Destination
F2GGC1

1001 POP 01-OCT-2014 TO
30-SEP-2015
FOB: Destination
F2GGC1

1002 POP 01-OCT-2014 TO
30-SEP-2015
FOB: Destination
F2GGC1

1003 POP 01-OCT-2014 TO
30-SEP-2015
FOB: Destination
F2GGC1

2001 POP 01-OCT-2015 TO
30-SEP-2016
FOB: Destination
F2GGC1

2002 POP 01-OCT-2015 TO
30-SEP-2016
FOB: Destination
F2GGC1

2003 POP 01-OCT-2015 TO
30-SEP-2016
FOB: Destination
F2GGC1

3001 POP 01-OCT-2016 TO
31-MAR-2017
FOB: Destination
F2GGC1

3002 POP 01-OCT-2016 TO
31-MAR-2017
FOB: Destination
F2GGC1

3003 POP 01-OCT-2016 TO
31-MAR-2017
FOB: Destination
F2GGC1

CLAUSES INCORPORATED BY REFERENCE

52.204-7 System for Award Management J UL 2013
FA5685-13-T-0045

Page 11 of 32

52.204-13 System for Award Management Maintenance J UL 2013
52.209-6 Protecting the Government's Interest When Subcontracting
With Contractors Debarred, Suspended, or Proposed for
Debarment
AUG 2013
52.209-10 Prohibition on Contracting With Inverted Domestic
Corporations
MAY 2012
52.212-1 Instructions to Offerors--Commercial Items J UL 2013
52.212-4 Contract Terms and Conditions--Commercial Items J UL 2013
52.217-5 Evaluation Of Options J UL 1990
52.222-50 Combating Trafficking in Persons FEB 2009
52.228-8 Liability and Insurance - Leased Motor Vehicles MAY 1999
52.232-1 Payments APR 1984
52.232-18 Availability Of Funds APR 1984
52.232-33 Payment by Electronic Funds Transfer--System for Award
Management
J UL 2013
52.233-1 Disputes J UL 2002
52.233-3 Protest After Award AUG 1996
52.247-34 F.O.B. Destination NOV 1991
252.204-7004 Alt A System for Award Management Alternate A MAY 2013
252.222-7002 Compliance With Local Labor Laws (Overseas) J UN 1997
252.229-7000 Invoices Exclusive of Taxes or Duties J UN 1997
252.232-7003 Electronic Submission of Payment Requests and Receiving
Reports
J UN 2012
252.232-7008 Assignment of Claims (Overseas) J UN 1997
252.233-7001 Choice of Law (Overseas) J UN 1997
252.243-7001 Pricing Of Contract Modifications DEC 1991

CLAUSES INCORPORATED BY FULL TEXT

52.212-2 EVALUATION--COMMERCIAL ITEMS (J AN 1999)

(a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer
conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The
following factors shall be used to evaluate offers:

Lowest Price Technically Acceptable in accordance with the Performance Work Statement Of Work titled
Vehicle Lease Services for US NSE to NRDC-T, Istanbul, Turkey dated 30 April 2013.

(b) Options. The Government will evaluate offers for award purposes by adding the total price for all options to the
total price for the basic requirement. The Government may determine that an offer is unacceptable if the option
prices are significantly unbalanced. Evaluation of options shall not obligate the Government to exercise the
option(s).

(c) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within
the time for acceptance specified in the offer, shall result in a binding contract without further action by either party.
Before the offer's specified expiration time, the Government may accept an offer (or part of an offer), whether or not
there are negotiations after its receipt, unless a written notice of withdrawal is received before award.

(End of provision)

FA5685-13-T-0045

Page 12 of 32

52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (AUG 2013)

An offeror shall complete only paragraph (b) of this provision if the offeror has completed the annual representations
and certifications electronically via http://www.acquisition.gov. If an offeror has not completed the annual
representations and certifications electronically at the System for Award Management (SAM) website, the offeror
shall complete only paragraphs (c) through (o) of this provision.

(a) Definitions. As used in this provision --

Economically disadvantaged women-owned small business (EDWOSB) Concern means a small business concern
that is at least 51 percent directly and unconditionally owned by, and the management and daily
business operations of which are controlled by, one or more women who are citizens of the United States and who
are economically disadvantaged in accordance with 13 CFR part 127. It automatically qualifies as a women-owned
small business eligible under the WOSB Program.

"Forced or indentured child labor" means all work or service-
(1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for
which the worker does not offer himself voluntarily; or

(2) Performed by any person under the age of 18 pursuant to a contract the enforcement of which can be
accomplished by process or penalties.

Inverted domestic corporation, as used in this section, means a foreign incorporated entity which is treated as an
inverted domestic corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United
States, or used to be a partnership in the United States, but now is incorporated in a foreign country, or is a
subsidiary whose parent corporation is incorporated in a foreign country, that meets the criteria specified in 6 U.S.C.
395(b), applied in accordance with the rules and definitions of 6 U.S.C. 395(c). An inverted domestic corporation as
herein defined does not meet the definition of an inverted domestic corporation as defined by the Internal Revenue
Code at 26 U.S.C. 7874.

Manufactured end product means any end product in Federal Supply Classes (FSC) 1000-9999, except--








(8) FSC 9610, Ores;



FA5685-13-T-0045

Page 13 of 32

Place of manufacture means the place where an end product is assembled out of components, or otherwise made or
processed from raw materials into the finished product that is to be provided to the Government. If a product is
disassembled and reassembled, the place of reassembly is not the place of manufacture.

Restricted business operations means business operations in Sudan that include power production activities, mineral
extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the
Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include
business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment
Act of 2007) conducting the business can demonstrate--


(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of
the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such
authorization;


(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian
organization;



Sensitive technology--

(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used
specifically--



(2) Does not include information or informational materials the export of which the President does not have the
authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act
(50 U.S.C. 1702(b)(3)).

Service-disabled veteran-owned small business concern--

(1) Means a small business concern--

(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any
publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled
veterans; and

(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans
or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver
of such veteran.

(2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-
connected, as defined in 38 U.S.C. 101(16).

FA5685-13-T-0045

Page 14 of 32

"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not
dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business
under the criteria in 13 CFR Part 121 and size standards in this solicitation.

Subsidiary means an entity in which more than 50 percent of the entity is owned--



Veteran-owned small business concern means a small business concern--

(1) Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the
case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more
veterans; and


"Women-owned business concern" means a concern which is at least 51 percent owned by one or more women; or in
the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women;
and whose management and daily business operations are controlled by one or more women.

"Women-owned small business concern" means a small business concern--

(1) That is at least 51 percent owned by one or more women or, in the case of any publicly owned business, at least
51 percent of its stock is owned by one or more women; or


Women-owned small business (WOSB) concern eligible under the WOSB Program (in accordance with 13 CFR part
127), means a small business concern that is at least 51 percent directly and unconditionally owned by, and the
management and daily business operations of which are controlled by, one or more women who are citizens of the
United States.

(b) (1) Annual Representations and Certifications. Any changes provided by the offeror in paragraph (b)(2) of this
provision do not automatically change the representations and certifications posted electronically on the SAM
website.

(2) The offeror has completed the annual representations and certifications electronically via the SAM website
accessed through https://www.acquisition.gov. After reviewing the SAM database information, the offeror verifies by
submission of this offer that the representations and certifications currently posted electronically at FAR 52.212-3,
Offeror Representations and Certifications--Commercial Items, have been entered or updated in the last 12 months,
are current, accurate, complete, and applicable to this solicitation (including the business size standard applicable to
the NAICS code referenced for this solicitation), as of the date of this offer and are incorporated in this offer by
reference (see FAR 4.1201), except for paragraphs ----------.

[Offeror to identify the applicable paragraphs at (c) through (o) of this provision that the offeror has completed for
the purposes of this solicitation only, if any.) These amended representation(s) and/or certification(s) are also
incorporated in this offer and are current, accurate, and complete as of the date of this offer. Any changes provided
by the offeror are applicable to this solicitation only, and do not result in an update to the representations and
certifications posted electronically on ORCA.]

(c) Offerors must complete the following representations when the resulting contract will be performed in the United
States or its outlying areas. Check all that apply.
FA5685-13-T-0045

Page 15 of 32

(1) Small business concern. The offeror represents as part of its offer that it ( ) is, ( ) is not a small business
concern.

(2) Veteran-owned small business concern. (Complete only if the offeror represented itself as a small business
concern in paragraph (c)(1) of this provision.) The offeror represents as part of its offer that it ( ) is, ( ) is not a
veteran-owned small business concern.

(3) Service-disabled veteran-owned small business concern. (Complete only if the offeror represented itself as a
veteran-owned small business concern in paragraph (c)(2) of this provision.) The offeror represents as part of its
offer that it ( ) is, ( ) is not a service-disabled veteran-owned small business concern.

(4) Small disadvantaged business concern. (Complete only if the offeror represented itself as a small business
concern in paragraph (c)(1) of this provision.) The offeror represents, for general statistical purposes, that it ( ) is, (
) is not a small disadvantaged business concern as defined in 13 CFR 124.1002.

(5) Women-owned small business concern. (Complete only if the offeror represented itself as a small business
concern in paragraph (c)(1) of this provision.) The offeror represents that it ( ) is, ( ) is not a women-owned small
business concern.

Note to paragraphs (c)(8) and (9): Complete paragraphs (c)(8) and (c)(9) only if this solicitation is expected to
exceed the simplified acquisition threshold.

(6) WOSB concern eligible under the WOSB Program. [Complete only if the offeror represented itself as a women-
owned small business concern in paragraph (c)(5) of this provision.] The offeror represents that--

(i) It [ ] is, [ ] is not a WOSB concern eligible under the WOSB Program, has provided all the required documents to
the WOSB Repository, and no change in circumstances or adverse decisions have
been issued that affects its eligibility; and

representation in paragraph (c)(6)(i) of this provision is accurate for each WOSB concern eligible under the WOSB
Program participating in the joint venture. [The offeror shall enter the name or names of the WOSB concern eligible
under the WOSB Program and other small businesses that are participating in the joint venture: ----------.] Each
WOSB concern eligible under the WOSB Program participating in the joint venture shall submit a separate signed
copy of the WOSB representation.

(7) Economically disadvantaged women-owned small business (EDWOSB) concern. [Complete only if the offeror
represented itself as a WOSB concern eligible under the WOSB Program in (c)(6) of this provision.] The offeror
represents that--

(i) It [ballot] is, [ballot] is not an EDWOSB concern, has provided all the required documents to the WOSB

representation in paragraph (c)(7)(i) of this provision is accurate for each EDWOSB concern participating in the
joint venture. [The offeror shall enter the name or names of the EDWOSB concern and
other small businesses that are participating in the joint venture: ----------.] Each EDWOSB concern participating in
the joint venture shall submit a separate signed copy of the EDWOSB representation.

(8) Women-owned business concern (other than small business concern). (Complete only if the offeror is a women-
owned business concern and did not represent itself as a small business concern in paragraph (c)(1) of this
provision.) The offeror represents that it ( ) is, a women-owned business concern.

FA5685-13-T-0045

Page 16 of 32

(9) Tie bid priority for labor surplus area concerns. If this is an invitation for bid, small business offerors may
identify the labor surplus areas in which costs to be incurred on account of manufacturing or production (by offeror
or first-tier subcontractors) amount to more than 50 percent of the contract price:

_____________________________________________

(10) (Complete only if the solicitation contains the clause at FAR 52.219-23, Notice of Price Evaluation Adjustment
for Small Disadvantaged Business Concerns or FAR 52.219-25, Small Disadvantaged Business Participation
Program-Disadvantaged Status and Reporting, and the offeror desires a benefit based on its disadvantaged status.)

(i) General. The offeror represents that either--

(A) It ( ) is, ( ) is not certified by the Small Business Administration as a small disadvantaged business concern and
identified, on the date of this representation, as a certified small disadvantaged business concern in the SAM
Dynamic Small Business Search database maintained by the Small Business Administration, and that no material
change in disadvantaged ownership and control has occurred since its certification, and, where the concern is owned
by one or more individuals claiming disadvantaged status, the net worth of each individual upon whom the
certification is based does not exceed $750,000 after taking into account the applicable exclusions set forth at 13
CFR 124.104(c)(2); or

(B) It ( ) has, ( ) has not submitted a completed application to the Small Business Administration or a Private
Certifier to be certified as a small disadvantaged business concern in accordance with 13 CFR 124, Subpart B, and a
decision on that application is pending, and that no material change in disadvantaged ownership and control has
occurred since its application was submitted.

(ii) J oint Ventures under the Price Evaluation Adjustment for Small Disadvantaged Business Concerns. The offeror
represents, as part of its offer, that it is a joint venture that complies with the requirements in 13 CFR 124.1002(f)
and that the representation in paragraph (c)(10)(i) of this provision is accurate for the small disadvantaged business
concern that is participating in the joint venture. (The offeror shall enter the name of the small disadvantaged
business concern that is participating in the joint venture: ____________.)

(11) HUBZone small business concern. (Complete only if the offeror represented itself as a small business concern
in paragraph (c)(1) of this provision.) The offeror represents, as part of its offer, that--

(i) It [ ] is, [ ] is not a HUBZone small business concern listed, on the date of this representation, on the List of
Qualified HUBZone Small Business Concerns maintained by the Small Business Administration, and no material
changes in ownership and control, principal office, or HUBZone employee percentage have occurred since it was
certified in accordance with 13 CFR Part 126; and

(ii) It [ ] is, [ ] is not a HUBZone joint venture that complies with the requirements of 13 CFR Part 126, and the
representation in paragraph (c)(11)(i) of this provision is accurate for each HUBZone small business concern
participating in the HUBZone joint venture. [The offeror shall enter the names of each of the HUBZone small
business concerns participating in the HUBZone joint venture: _______.] Each HUBZone small business concern
participating in the HUBZone joint venture shall submit a separate
signed copy of the HUBZone representation.

(d) Certifications and representations required to implement provisions of Executive Order 11246--

(1) Previous Contracts and Compliance. The offeror represents that--

(i) It ( ) has, ( ) has not, participated in a previous contract or subcontract subject either to the Equal Opportunity
clause of this solicitation, the and

FA5685-13-T-0045

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(ii) It ( ) has, ( ) has not, filed all required compliance reports.

(2) Affirmative Action Compliance. The offeror represents that--

(i) It ( ) has developed and has on file, ( ) has not developed and does not have on file, at each establishment,
affirmative action programs required by rules and regulations of the Secretary of Labor (41 CFR Subparts 60-1 and
60-2), or

(ii) It ( ) has not previously had contracts subject to the written affirmative action programs requirement of the rules
and regulations of the Secretary of Labor.

(e) Certification Regarding Payments to Influence Federal Transactions (31 U.S.C. 1352). (Applies only if the
contract is expected to exceed $150,000.) By submission of its offer, the offeror certifies to the best of its knowledge
and belief that no Federal appropriated funds have been paid or will be paid to any person for influencing or
attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of
Congress or an employee of a Member of Congress on his or her behalf in connection with the award of any resultant
contract. If any registrants under the Lobbying Disclosure Act of 1995 have made a lobbying contact on behalf of the
offeror with respect to this contract, the offeror shall complete and submit, with its offer, OMB Standard Form LLL,
Disclosure of Lobbying Activities, to provide the name of the registrants. The offeror need not report regularly
employed officers or employees of the offeror to whom payments of reasonable compensation were made.

(f) Buy American Act Certificate. (Applies only if the clause at Federal Acquisition Regulation (FAR) 52.225-1, Buy
American Act --Supplies, is included in this solicitation.)

(1) The offeror certifies that each end product, except those listed in paragraph (f)(2) of this provision, is a domestic
end product and that for other than COTS items, the offeror has considered components of unknown origin to have
been mined, produced, or manufactured outside the United States. The offeror shall list as foreign end products those
end products manufactured in the United States that do not qualify as domestic end products, i.e., an end product that
is not a COTS item and does not meet the component test in paragraph (2) of the definition of domestic end
product. The terms commercially available off-the-shelf (COTS) item, component, domestic end product,
end product, foreign end product, and United States are defined in the clause of this solicitation entitled Buy
American Act--Supplies.

_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_

(List as necessary)


(g)(1) Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate. (Applies only if the clause at FAR
52.225-3, Buy American Act--Free Trade Agreements--Israeli Trade Act, is included in this solicitation.)

FA5685-13-T-0045

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(i) The offeror certifies that each end product, except those listed in paragraph (g)(1)(ii) or (g)(1)(iii) of this
provision, is a domestic end product and that for other than COTS items, the offeror has considered components of
unknown origin to have been mined, produced, or manufactured outside the United States. The terms ``Bahrainian,
Moroccan, Omani, Panamanian, or Peruvian end product,'' ``commercially available off-the-shelf (COTS) item,''
``component,'' ``domestic end product,'' `ènd product,'' ``foreign end product,'' ``Free Trade Agreement country,''
``Free Trade Agreement country end product,'' `Ìsraeli end product,'' and `Ùnited States'' are defined in the clause
of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act.''

(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other than
Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end products) or Israeli end products as defined in the

Free Trade Agreement Country End Products (Other than Bahrainian, Moroccan, Omani, Panamanian, or Peruvian
End Products) or Israeli End Products:

_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_

[List as necessary]

(iii) The offeror shall list those supplies that are foreign end products (other than those listed in paragraph (g)(1)(ii)
of this provision) as defined in the clause of this solicitation entitled "Buy American Act-Free Trade Agreements-
Israeli Trade Act." The offeror shall list as other foreign end products those end products manufactured in the United
States that do not qualify as domestic end products, i.e., an end product that is not a COTS item and does not meet
the component test in paragraph (2) of the definition of domestic end product.
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_
[List as necessary]

(2) Buy American Act-Free Trade Agreements-Israeli Trade Act Certificate, Alternate I (Jan 2004). If Alternate I to
the clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph

solicitation entitled "Buy American Act-Free Trade Agreements-Israeli Trade Act":
FA5685-13-T-0045

Page 19 of 32

Line Item No.
______________________________________
_
______________________________________
_
______________________________________
_
[List as necessary]

(3) Buy American Act-Free Trade Agreements-Israeli Trade Act Certificate, Alternate II (J an 2004). If Alternate II
to the clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for
paragraph (g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are Canadian end products or Israeli end products as
defined in the clause of this solicitation entitled "Buy American Act-Free Trade Agreements-Israeli Trade Act":
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_
[List as necessary]

(4) Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate, Alternate III. If Alternate III to the
clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph

(g)(1)(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other
than Bahrainian, Korean, Moroccan, Omani, Panamanian, or Peruvian end products) or Israeli end products as
defined in the clause of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act'':

Free Trade Agreement Country End Products (Other than Bahrainian, Korean, Moroccan, Omani, Panamanian, or
Peruvian End Products) or Israeli End Products:

_____________
_
________________
_
_____________
_
________________
_
_____________ ________________
FA5685-13-T-0045

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_ _
[List as necessary]

(5) Trade Agreements Certificate. (Applies only if the clause at FAR 52.225-5, Trade Agreements, is included in this
solicitation.)

(i) The offeror certifies that each end product, except those listed in paragraph (g)(5)(ii) of this provision, is a U.S.-
made or designated country end product, as defined in the clause of this solicitation entitled "Trade Agreements."

(ii) The offeror shall list as other end products those end products that are not U.S.-made or designated country end
products.
Other End Products:
_____________
_
________________
_
_____________
_
________________
_
_____________
_
________________
_
(List as necessary)

(iii) The Government will evaluate offers in accordance with the policies and procedures of FAR Part 25. For line
items covered by the WTO GPA, the Government will evaluate offers of U.S.-made or designated country end
products without regard to the restrictions of the Buy American Act. The Government will consider for award only
offers of U.S.-made or designated country end products unless the Contracting Officer determines that there are no
offers for such products or that the offers for such products are insufficient to fulfill the requirements of the
solicitation.

(h) Certification Regarding Responsibility Matters (Executive Order 12689). (Applies only if the contract value is
expected to exceed the simplified acquisition threshold.) The offeror certifies, to the best of its knowledge and belief,
that --

(1) The offeror and/or any of its principals ( ) are, ( ) are not presently debarred, suspended, proposed for
debarment, or declared ineligible for the award of contracts by any Federal agency,

(2) ( ) Have, ( ) have not, within a three-year period preceding this offer, been convicted of or had a civil judgment
rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to
obtain, or performing a Federal, state or local government contract or subcontract; violation of Federal or state
antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements, tax evasion, violating Federal criminal tax laws, or
receiving stolen property; and

(3) ( ) are, ( ) are not presently indicted for, or otherwise criminally or civilly charged by a Government entity with,
commission of any of these offenses enumerated in paragraph (h)(2) of this clause; and

(4) ( ) Have, ( ) have not, within a three-year period preceding this offer, been notified of any delinquent Federal
taxes in an amount that exceeds $3,000 for which the liability remains unsatisfied.


FA5685-13-T-0045

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finally determined if there is a pending administrative or judicial challenge. In the case of a judicial challenge to the
liability, the liability is not finally determined until all judicial appeal rights have been exhausted.

(B) The taxpayer is delinquent in making payment. A taxpayer is delinquent if the taxpayer has failed to pay the tax
liability when full payment was due and required. A taxpayer is not delinquent in cases where enforced collection
action is precluded.

(ii) Examples.

(A) The taxpayer has received a statutory notice of deficiency, under I.R.C. Sec. 6212, which entitles the taxpayer to
seek Tax Court review of a proposed tax deficiency. This is not a delinquent tax because it is not a final tax liability.
Should the taxpayer seek Tax Court review, this will not be a final tax liability until the taxpayer has exercised all
judicial appeal rights.

(B) The IRS has filed a notice of Federal tax lien with respect to an assessed tax liability, and the taxpayer has been
issued a notice under I.R.C. Sec. 6320 entitling the taxpayer to request a hearing with the IRS Office of Appeals
contesting the lien filing, and to further appeal to the Tax Court if the IRS determines to sustain the lien filing. In the
course of the hearing, the taxpayer is entitled to contest the underlying tax liability because the taxpayer has had no
prior opportunity to contest the liability. This is not a delinquent tax because it is not a final tax liability. Should the
taxpayer seek tax court review, this will not be a final tax liability until the taxpayer has exercised all judicial appeal
rights.

(C) The taxpayer has entered into an installment agreement pursuant to I.R.C. Sec. 6159. The taxpayer is making
timely payments and is in full compliance with the agreement terms. The taxpayer is not delinquent because the
taxpayer is not currently required to make full payment.

(D) The taxpayer has filed for bankruptcy protection. The taxpayer is not delinquent because enforced collection
action is stayed under 11 U.S.C. 362 (the Bankruptcy Code).

(i) Certification Regarding Knowledge of Child Labor for Listed End Products (Executive Order 13126). [The
Contracting Officer must list in paragraph (i)(1) any end products being acquired under this solicitation that are
included in the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor, unless
excluded at 22.1503(b).]

(1) Listed end products.

Listed End Product Listed Countriesof Origin

(2) Certification. [If the Contracting Officer has identified end products and countries of origin in paragraph (i)(1)
of this provision, then the offeror must certify to either (i)(2)(i) or (i)(2)(ii) by checking the appropriate block.]

[ ] (i) The offeror will not supply any end product listed in paragraph (i)(1) of this provision that was mined,
produced, or manufactured in the corresponding country as listed for that product.

FA5685-13-T-0045

Page 22 of 32

[ ] (ii) The offeror may supply an end product listed in paragraph (i)(1) of this provision that was mined, produced,
or manufactured in the corresponding country as listed for that product. The offeror certifies that it has made a good
faith effort to determine whether forced or indentured child labor was used to mine, produce, or manufacture any
such end product furnished under this contract. On the basis of those efforts, the offeror certifies that it is not aware
of any such use of child labor.
(j) Place of manufacture. (Does not apply unless the solicitation is predominantly for the acquisition of
manufactured end products.) For statistical purposes only, the offeror shall indicate whether the place of manufacture
of the end products it expects to provide in response to this solicitation is predominantly



(j) Place of manufacture. (Does not apply unless the solicitation is predominantly for the acquisition of manufactured
end products.) For statistical purposes only, the offeror shall indicate whether the place of manufacture of the end
products it expects to provide in response to this solicitation is predominantly--



(k) Certificates regarding exemptions from the application of the Service Contract Act. (Certification by the offeror
as to its compliance with respect to the contract also constitutes its certification as to compliance by its subcontractor
if it subcontracts out the exempt services.)

[The contracting officer is to check a box to indicate if paragraph (k)(1) or (k)(2) applies.]

[ ] (1) Maintenance, calibration, or repair of certain equipment as described in FAR 22.1003-4(c)(1). The offeror (
) does ( ) does not certify that

(i) The items of equipment to be serviced under this contract are used regularly for other than Governmental
purposes and are sold or traded by the offeror (or subcontractor in the case of an exempt subcontract) in substantial
quantities to the general public in the course of normal business operations;

(ii) The services will be furnished at prices which are, or are based on, established catalog or market prices (see FAR
22.1003-4(c)(2)(ii)) for the maintenance, calibration, or repair of such equipment; and

(iii) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract
will be the same as that used for these employees and equivalent employees servicing the same equipment of
commercial customers.

[ ] (2) Certain services as described in FAR 22.1003-4(d)(1). The offeror ( ) does ( ) does not certify that

(i) The services under the contract are offered and sold regularly to non-Governmental customers, and are provided
by the offeror (or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in
the course of normal business operations;

(ii) The contract services will be furnished at prices that are, or are based on, established catalog or market prices
(see FAR 22.1003-4(d)(2)(iii));

FA5685-13-T-0045

Page 23 of 32

(iii) Each service employee who will perform the services under the contract will spend only a small portion of his or
her time (a monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20
percent of available hours during the contract period if the contract period is less than a month) servicing the
Government contract; and
(iv) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract
is the same as that used for these employees and equivalent employees servicing commercial customers.


(i) If the offeror does not certify to the conditions in paragraph (k)(1) or (k)(2) and the Contracting Officer did not
attach a Service Contract Act wage determination to the solicitation, the offeror shall notify the Contracting Officer
as soon as possible; and

(ii) The Contracting Officer may not make an award to the offeror if the offeror fails to execute the certification in
paragraph (k)(1) or (k)(2) of this clause or to contact the Contracting Officer as required in paragraph (k)(3)(i) of this
clause.

(l) Taxpayer Identification Number (TIN) (26 U.S.C. 6109, 31 U.S.C. 7701). (Not applicable if the offeror is
required to provide this information to the SAM database to be eligible for award.)

(1) All offerors must submit the information required in paragraphs (l)(3) through (l)(5) of this provision to comply
with debt collection requirements of 31 U.S.C. 7701(c) and 3325(d), reporting requirements of 26 U.S.C. 6041,
6041A, and 6050M, and implementing regulations issued by the Internal Revenue Service (IRS).

(2) The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the
offeror's relationship with the Government (31 U.S.C. 7701(c)(3)). If the resulting contract is subject to the payment
reporting requirements described in FAR 4.904, the TIN provided hereunder may be matched with IRS records to
verify the accuracy of the offeror's TIN.


( ) TIN: --------------------.

( ) TIN has been applied for.

( ) TIN is not required because:

( ) Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively
connected with the conduct of a trade or business in the United States and does not have an office or place of
business or a fiscal paying agent in the United States;

( ) Offeror is an agency or instrumentality of a foreign government;

( ) Offeror is an agency or instrumentality of the Federal Government.


( ) Sole proprietorship;

( ) Partnership;

( ) Corporate entity (not tax-exempt);

( ) Corporate entity (tax-exempt);
FA5685-13-T-0045

Page 24 of 32

( ) Government entity (Federal, State, or local);

( ) Foreign government;

( ) International organization per 26 CFR 1.6049-4;

( ) Other ----------.

(5) Common parent.

( ) Offeror is not owned or controlled by a common parent;

( ) Name and TIN of common parent:

Name --------------------.
TIN --------------------.

(m) Restricted business operations in Sudan. By submission of its offer, the offeror certifies that the offeror does not
conduct any restricted business operations in Sudan.

(n) Prohibition on Contracting with Inverted Domestic Corporations

(1) Relation to Internal Revenue Code. An inverted domestic corporation as herein defined does not meet the
definition of an inverted domestic corporation as defined by the Internal Revenue Code 25 U.S.C. 7874.




(o) Prohibition on contracting with entities engaging in certain activities or transactions relating to Iran.

(1) The offeror shall email questions concerning sensitive technology to the Department of State at
CISADA106@state.gov.

(2) Representation and certifications. Unless a waiver is granted or an exception applies as provided in paragraph
(o)(3) of this provision, by submission of its offer, the offeror--

(i) Represents, to the best of its knowledge and belief, that the offeror does not export any sensitive technology to the
government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of,
the government of Iran;

(ii) Certifies that the offeror, or any person owned or controlled by the offeror, does not engage in any activities for
which sanctions may be imposed under section 5 of the Iran Sanctions Act; and

(iii) Certifies that the offeror, and any person owned or controlled by the offeror, does not knowingly engage in any
transaction that exceeds $3,000 with Iran's Revolutionary Guard Corps or any of its officials, agents, or affiliates, the
property and interests in property of which are blocked pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (see OFAC's Specially Designated
Nationals and Blocked Persons List at http://www.treasury.gov/ofac/downloads/t11sdn.pdf).

(3) The representation and certification requirements of paragraph (o)(2) of this provision do not apply if
FA5685-13-T-0045

Page 25 of 32

(i) This solicitation includes a trade agreements certification (e.g., 52.212-3(g) or a comparable agency provision);
and


(End of provision)

52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS--COMMERCIAL ITEMS (AUG 2013) (DEVIATION)

(a) Comptroller General Examination of Record. The Contractor shall comply with the provisions of this paragraph
(a) if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and
does not contain the clause at 52.215-2, Audit and Records-Negotiation.

(1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall
have access to and right to examine any of the Contractor's directly pertinent records involving transactions related to
this contract.

(2) The Contractor shall make available at its offices at all reasonable times, the records, materials, and other
evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any
shorter period specified in FAR Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If
this contract is completely or partially terminated, the records relating to the work terminated shall be made available
for 3 years after any resulting final termination settlement. Records relating to appeals under the disputes clause or to
litigation or the settlement of claims arising under or relating to this contract shall be made available until such
appeals, litigation, or claims are finally resolved.

(3) As used in this clause, records include books, documents, accounting procedures and practices, and other data,
regardless of type and regardless of form. This does not require the Contractor to create or maintain any record that
the Contractor does not maintain in the ordinary course of business or pursuant to a provision of law.

(b)(1) Notwithstanding the requirements of any other clause in this contract, the Contractor is not required to flow
down any FAR clause, other than those in this paragraph (b)(i) in a subcontract for commercial items. Unless
otherwise indicated below, the extent of the flow down shall be as required by the clause-

(i) 52.203-13, Contractor Code of Business Ethics and Conduct (APR 2010) (Pub. L. 110-252, Title VI, Chapter 1
(41 U.S.C. 251 note).

(ii) 52.219-8, Utilization of Small Business Concerns (J ul 2013) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts
that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns)
exceeds $650,000 ($1.5 million for construction of any public facility), the subcontractor must include 52.219-8 in
lower tier subcontracts that offer subcontracting opportunities.

(iii) Reserved.

(iv) 52.222-26, Equal Opportunity (MAR 2007) (E.O. 11246).

(v) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible
Veterans (SEP 2006) (38 U.S.C. 4212).

FA5685-13-T-0045

Page 26 of 32

(vi) 52.222-36, Affirmative Action for Workers with Disabilities (J UN 1998) (29 U.S.C. 793).

Flow down required in accordance with paragraph (f) of FAR clause 52.222-40.

(viii) 52.222-41, Service Contract Act of 1965 (Nov 2007) (41 U.S.C. 351, et seq.).


X Alternate I (AUG 2007) of 52.222-50 (22 U.S.C. 7104(g)).

(x) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration,
or Repair of Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.).

(xi) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--
Requirements (FEB 2009) (41 U.S.C. 351, et seq.).

(xii) 52.222-54, Employment Eligibility Verification (J UL 2012).

(xiii) 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations. (MAR 2009) (Pub. L. 110-247). Flow
down required in accordance with paragraph (e) of FAR clause 52.226-6.

(xiv) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (FEB 2006) (46 U.S.C. Appx
1241(b) and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.

(2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of
additional clauses necessary to satisfy its contractual obligations.

(End of clause)

52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the
contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary
of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder
shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor
within 30 days.

(End of clause)

52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within 30 days;
provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 60
before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 3
FA5685-13-T-0045

Page 27 of 32

Years and 6 Months.

(End of clause)

52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

This solicitation incorporates one or more solicitation provisions by reference, with the same force and effect as if
they were given in full text. Upon request, the Contracting Officer will make their full text available. The offeror is
cautioned that the listed provisions may include blocks that must be completed by the offeror and submitted with its
quotation or offer. In lieu of submitting the full text of those provisions, the offeror may identify the provision by
paragraph identifier and provide the appropriate information with its quotation or offer. Also, the full text of a
solicitation provision may be accessed electronically at this/these address(es):


(End of provision

52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in
full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may
be accessed electronically at this/these address(es):


(End of clause)

52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)

(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an
authorized deviation is indicated by the addition of "(DEVIATION)" after the date of the clause.

(b) The use in this solicitation or contract of any Defense Federal Acquisition Regulation Supplement (48 CFR
Chapter 2) clause with an authorized deviation is indicated by the addition of "(DEVIATION)" after the name of the
regulation.

(End of clause)

252.229-7001 TAX RELIEF (J UN 1997)

(a) Prices set forth in this contract are exclusive of all taxes and duties from which the United States Government is
exempt by virtue of tax agreements between the United States Government and the Contractor's government. The
following taxes or duties have been excluded from the contract price:

NAME OF TAX: VAT RATE (PERCENTAGE): 18%

FA5685-13-T-0045

Page 28 of 32

(b) The Contractor's invoice shall list separately the gross price, amount of tax deducted, and net price charged.

(c) When items manufactured to United States Government specifications are being acquired, the Contractor shall
identify the materials or components intended to be imported in order to ensure that relief from import duties is
obtained. If the Contractor intends to use imported products from inventories on hand, the price of which includes a
factor for import duties, the Contractor shall ensure the United States Government's exemption from these taxes. The
Contractor may obtain a refund of the import duties from its government or request the duty-free import of an
amount of supplies or components corresponding to that used from inventory for this contract.

(End of clause)

252.247-7023 TRANSPORTATION OF SUPPLIES BY SEA (J UN 2013) ALTERNATE III (MAY 2002)

(a) Definitions. As used in this clause --

(1) "Components" means articles, materials, and supplies incorporated directly into end products at any level of
manufacture, fabrication, or assembly by the Contractor or any subcontractor.

(2) "Department of Defense" (DoD) means the Army, Navy, Air Force, Marine Corps, and defense agencies.

(3) "Foreign flag vessel" means any vessel that is not a U.S.-flag vessel.

(4) "Ocean transportation" means any transportation aboard a ship, vessel, boat, barge, or ferry through international
waters.

(5) "Subcontractor" means a supplier, materialman, distributor, or vendor at any level below the prime contractor
whose contractual obligation to perform results from, or is conditioned upon, award of the prime contract and who is
performing any part of the work or other requirement of the prime contract.

(6) "Supplies" means all property, except land and interests in land, that is clearly identifiable for eventual use by or
owned by the DoD at the time of transportation by sea.

(i) An item is clearly identifiable for eventual use by the DoD if, for example, the contract documentation contains a
reference to a DoD contract number or a military destination.

(ii) "Supplies" includes (but is not limited to) public works; buildings and facilities; ships; floating equipment and
vessels of every character, type, and description, with parts, subassemblies, accessories, and equipment; machine
tools; material; equipment; stores of all kinds; end items; construction materials; and components of the foregoing.

(7) "U.S.-flag vessel" means a vessel of the United States or belonging to the United States, including any vessel
registered or having national status under the laws of the United States.

(b)(1) The Contractor shall use U.S.-flag vessels when transporting any supplies by sea under this contract.

(2) A subcontractor transporting supplies by sea under this contract shall use U.S.-flag vessels if--

(i) This contract is a construction contract; or

(ii) The supplies being transported are--

(A) Noncommercial items; or

FA5685-13-T-0045

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(B) Commercial items that--

(1) The Contractor is reselling or distributing to the Government without adding value (generally, the Contractor
does not add value to items that it contracts for f.o.b. destination shipment);

(2) Are shipped in direct support of U.S. military contingency operations, exercises, or forces deployed in
humanitarian or peacekeeping operations; or

(3) Are commissary or exchange cargoes transported outside of the Defense Transportation System in accordance
with 10 U.S.C. 2643.

(c) The Contractor and its subcontractors may request that the Contracting Officer authorize shipment in foreign-flag
vessels, or designate available U.S.-flag vessels, if the Contractor or a subcontractor believes that --

(1) U.S.-flag vessels are not available for timely shipment;

(2) The freight charges are inordinately excessive or unreasonable; or

(3) Freight charges are higher than charges to private persons for transportation of like goods.

(d) The Contractor must submit any request for use of other than U.S.-flag vessels in writing to the Contracting
Officer at least 45 days prior to the sailing date necessary to meet its delivery schedules. The Contracting Officer
will process requests submitted after such date(s) as expeditiously as possible, but the Contracting Officer's failure to
grant approvals to meet the shipper's sailing date will not of itself constitute a compensable delay under this or any
other clause of this contract. Requests shall contain at a minimum --

(1) Type, weight, and cube of cargo;

(2) Required shipping date;

(3) Special handling and discharge requirements;

(4) Loading and discharge points;

(5) Name of shipper and consignee;

(6) Prime contract number; and

(7) A documented description of efforts made to secure U.S.-flag vessels, including points of contact (with names
and telephone numbers) with at least two U.S.-flag carriers contacted. Copies of telephone notes, telegraphic and
facsimile message or letters will be sufficient for this purpose.

(e) The Contractor shall, within 30 days after each shipment covered by this clause, provide the Contracting Officer
and the Maritime Administration, Office of Cargo Preference, U.S. Department of Transportation, 400 Seventh
Street SW., Washington, DC 20590, one copy of the rated on board vessel operating carrier's ocean bill of lading,
which shall contain the following information:

(1) Prime contract number;

(2) Name of vessel;

(3) Vessel flag of registry;

(4) Date of loading;
FA5685-13-T-0045

Page 30 of 32

(5) Port of loading;

(6) Port of final discharge;

(7) Description of commodity;

(8) Gross weight in pounds and cubic feet if available;

(9) Total ocean freight in U.S. dollars; and

(10) Name of the steamship company.

(f) The Contractor shall insert the substance of this clause, including this paragraph (f), in subcontracts that are for a
type of supplies described in paragraph (b)(2) of this clause.

(End of clause)

5352.201-9101 Ombudsman. OMBUDSMAN (NOV 2012)

(a) An ombudsman has been appointed to hear and facilitate the resolution of concerns from offerors, potential
offerors, and others for this acquisition. When requested, the ombudsman will maintain strict confidentiality as to the
source of the concern. The existence of the ombudsman does not affect the authority of the program manager,
contracting officer, or source selection official. Further, the ombudsman does not participate in the evaluation of
proposals, the source selection process, or the adjudication of protests or formal contract disputes. The ombudsman
may refer the interested party to another official who can resolve the concern.

(b) Before consulting with an ombudsman, interested parties must first address their concerns, issues, disagreements,
and/or recommendations to the contracting officer for resolution. Consulting an ombudsman does not alter or
postpone the timelines for any other processes (e.g., agency level bid protests, GAO bid protests, requests for
debriefings, employee-employer actions, contests of OMB Circular A-76 competition performance decisions).

(c) If resolution cannot be made by the contracting officer, the interested party may contact the
Center/MAJ COM/DRU or AFISRA ombudsmen, [Insert names, addresses, telephone numbers, facsimile numbers,
and e-mail addresses]. Concerns, issues, disagreements, and recommendations that cannot be resolved at the
Center/MAJ COM/DRU or AFISRA level, may be brought by the interested party for further consideration to the Air
Force ombudsman, Associate Deputy Assistant Secretary (ADAS) (Contracting), SAF/AQC, 1060 Air Force
Pentagon, Washington DC 20330-1060, phone number (571) 256-2397, facsimile number (571) 256-2431.

Primary:
Ms Tara Petersen
E-mail: tara.petersen@ramstein.af.mil
Tel: 0049-637-147-2209, Fax: (49)-6731-47-2025
Alternate:
Heidi Hoehn
E-mail: heidi.hoehn@ramstein.af.mil
Tel: 0049-637-147-9330, Fax: (49)-6731-47-2025
FA5685-13-T-0045

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Concerns, issues, disagreements, and recommendations that cannot be resolved at the MAJ COM/DRU level, may be
brought by the concerned party for further consideration to the Air Force ombudsman, Associate Deputy Assistant
Secretary (ADAS) (Contracting), SAF/AQC, 1060 Air Force Pentagon, Washington DC 20330-1060, phone number
(703) 588-7004, facsimile number (703) 588-1067.
(d) The ombudsman has no authority to render a decision that binds the agency.
(e) Do not contact the ombudsman to request copies of the solicitation, verify offer due date, or clarify technical
requirements. Such inquiries shall be directed to the Contracting Officer.

(End of clause)

5352.242-9000 Contractor access to Air Force installations.

CONTRACTOR ACCESS TO AIR FORCE INSTALLATIONS (NOV 2012)

(a) The contractor shall obtain base identification and vehicle passes for all contractor personnel who make frequent
visits to or perform work on the Air Force installation(s) cited in the contract. Contractor personnel are required to
wear or prominently display installation identification badges or contractor-furnished, contractor identification
badges while visiting or performing work on the installation.

(b) The contractor shall submit a written request on company letterhead to the contracting officer listing the
following: contract number, location of work site, start and stop dates, and names of employees and subcontractor
employees needing access to the base. The letter will also specify the individual(s) authorized to sign for a request
for base identification credentials or vehicle passes. The contracting officer will endorse the request and forward it to
the issuing base pass and registration office or security police for processing. When reporting to the registration
office, the authorized contractor individual(s) should provide a valid drivers license, current vehicle registration,
and valid vehicle insurance certificate to obtain a vehicle pass.

(c) Our office will certify applications for gate passes for Turkish pass and ID. The Turkish Air Force will coordinate
with contractors to attain the necessary documents and information to grant access to the installation. The U.S.
government will not be held liable for any delays or breach of contract caused by refusal of the Turkish Air Force to
grant a gate pass to a contractor. If a gate pass is not granted to a contractor allowing the delivery of goods,
execution of warranty support, or performance of services please contact the contracting officer immediately. Below
is a number to the Turkish Air Force Pass and ID for all gate pass issues: 322-316-4184 or 322-316-4186

(d) Performance of this contract is located on a Turkish Air Force installation, and all access to the installation is
controlled and granted by the Turkish Air Force (TAF) Security Battalion.

(e) Prior to commencing work the Contractor shall furnish a complete list of all vehicles and personnel involved in
the accomplishment of the contract work to the Turkish Air Force Pass and ID or designated representative to ensure
access to the respective installations. The following information must be furnished on this list:

Vehicles: Make, model, year of manufacture, capacity, type, license number, and insurance policy number.
Personnel: First and last name, date of birth, place of birth, passport or identification card number, place of residence
and any such other information, as required, to satisfy individual air base or army security regulations governing
access to granting of passes to the particular military establishment.

(f) All passes may be obtained from the Turkish Air Force Pass and ID or designated representative approximately
10 days after the aforementioned lists have been submitted. The contractor shall inform all assigned workers that
they may be subject to search, at the discretion of the installation commander, when entering or leaving the
installation.

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Page 32 of 32

(g) Installation passes will be returned immediately to the Issuing Officer when:

(1) Pass has expired.
(2) Pass holder is no longer employed by the Contractor.
(3) Contract is completed.
(4) Issuing Officer so directs.

(h) During performance of the contract, the contractor shall be responsible for obtaining required identification for
newly assigned personnel and for prompt return of credentials and vehicle passes for any employee who no longer
requires access to the work site.
(i) When work under this contract requires unescorted entry to controlled or restricted areas, the contractor shall
comply with AFI 31-101, Volume 1, The Air Force Installation Security Program, and AFI 31-501, Personnel
Security Program Management, as applicable.

(j) Upon completion or termination of the contract or expiration of the identification passes, the prime contractor
shall ensure that all base identification passes issued to employees and subcontractor employees are returned to the
issuing office.

(k) Failure to comply with these requirements may result in withholding of final payment.

(End of clause)

1

PERFORMANCE-BASED STATEMENT OF WORK



30 April 2013

2

PERFORMANCE-BASED WORK STATEMENT
TABLE OF CONTENTS

SECTION PAGE

1 DESCRIPTION OF SERVICES 3

2 GENERAL INFORMATION 5

3 SECURITY REQUIREMENTS 5

4 PERFORMANCE OF SERVICES DURING CRISIS 6

5 TRAFFIC TICKETS 6

6 APPENDIX 6

3

1. DESCRIPTION OF SERVICES:

1.1. Vendor shall provide office and mobile telephone numbers to the Fleet Manager. Vendor must
be available to assist in lease vehicle matters seven days a week, 24-hours a day.
1.2. SPECIAL REQUIREMENTS:
1.2.1. Vehicles shall be no older than four (4) model years and have less than 70,000 km for the
entire contract period. Vehicles reported to the vendor as having achieved or exceeded the four-
year or 70,000 km requirement will be replaced within (5) five business days to meet the
requirements of this paragraph or upon approval of the gate pass letter, whichever is sooner.
1.2.2. Rental cost shall include unlimited mileage.
1.2.3. Vendor is responsible for contacting US NSE to obtain and keep current gate passes for
entry to and exit from NRDC-T HQs, Istanbul, Turkey, for all vehicles leased, for the entire period
of the lease.
1.2.4. Lease price includes full coverage insurance (KASKO) and all applicable taxes, licenses,
registration fees, and any other requirements as mandated by Turkish Law. License plates will be
from the city of the location in which the vehicle is being used.
1.2.5. Vendor must maintain the minimum insurance (KASKO) in accordance with Turkish Law
and proof thereof on each vehicle and provide current, up-to-date copies of this insurance to the
user and Fleet Manager. Copies of the insurance documents for each vehicle will be provided to
the user and Fleet Manager by the vendor upon initial issue of vehicles and upon renewal of
insurance as it becomes due.
1.2.6. Vendor will ensure each leased vehicle is inspected and maintained in accordance with
Turkish law. Semiannual/annual emissions testing, road kit inspections, safety items, and vehicle
performance standard items are the sole responsibility of the vendor.
1.2.7. Vendor must deliver vehicles with a full tank of fuel and the government will return the
vehicle with a full tank of fuel.
1.2.8. Vehicles must be clean and fully serviced upon delivery.
1.2.9. Any and all maintenance (repairs/servicing) of vehicles is the vendors responsibility. When
a vehicle requires maintenance, a replacement vehicle must be provided on the same day and the
same time of that day as the leased vehicle is picked up/turned in for maintenance. The vendor
must make the change with 2 days of the task order for unscheduled maintenance when the vendor
is from outside the local area. Replacement vehicle must be the same class/type of vehicle being
serviced. Original vehicle shall be returned to the leasing organization upon completion of any
maintenance for which it was picked up/turned in. The fuel tank must indicate 100% full at pick up
time and 100% full upon return from servicing.
1.2.10. Vendor will notify the Fleet Manager no later than (7) seven-days prior of any scheduled
maintenance that needs to be performed on any vehicle.
1.3. Vendor will ensure all vehicles are taken to the base Vehicle Control Function prior to
acceptance by the user and Fleet Manager. This is to ensure that the vehicles meet all standards
listed under Special Requirements. For those vehicles leased outside of the Incirlik area, the
4

vehicles will be previewed by the local transportation supervisor or Vehicle Control Officer.
Results will be provided to the Fleet Manager prior to acceptance.
1.4. Exchanging of vehicles that are not of the same class/type is not authorized without prior
written approval of the Fleet Manager and Contracting Officer.
1.5. Vendor shall provide the requested vehicle types within (5) business days of notification by
the Contracting Officer that a task orders is being issued. Or upon approval of the gate pass letter,
whichever is sooner.
1.6. A representative of base safety shall have the authority under this contract to conduct random
and unannounced safety checks of all vehicles provided by the vendor. In addition, all lease
vehicles will be inspected on a no-notice basis by the Vehicle Control Function office on a random
semi-annual basis. Findings resulting from the inspection will be reported to the Logistics
Readiness Commander, Quality Assurance Evaluator, and the vendor. The vendor must correct
safety discrepancies immediately.
1.7. Only a Contracting Officer is authorized to make changes to the terms and conditions of this
contract.
1.8. Vehicles must be free of all religious symbols/references, advertisements, and stickers not of
manufacturer origin. Vehicles are subject to rejection if one or more of the following are found to
be unacceptable. If a vehicle is rejected, the vendor must provide a replacement within three (3)
hours:
1.8.1. Windows: Must be free of all cracks, holes, and any other obstructions. Front windows will
be powered controlled. All windows will be tinted that comply with Turkish traffic laws.
1.8.2. Tires: Must have minimum 50% original tire tread remaining, and be free of dry weather
cracks, splits, cuts, sidewall bulges etc. All tires must be radial, retread tires are forbidden. All tires
must be of the same type, manufacturer, and size. Vehicle must have an operational; manufacturer
supplied spare tire and a car jack for lifting of the vehicle during tire changes. When requested a
full size spare must be provided.
1.8.3. Vehicle lighting: All vehicles manufactured installed lighting must be operational. The
following are examples of manufacture installed lighting, but not all inclusive: brake lights, turn
signal indicator lights, backing lights, headlights, parking lights, fog lights (if installed), interior
lights, dashboard lights, clearance lights (if installed).
1.8.4. Horn: Must be operational and of an audible tone to be heard by other vehicles on roadways
with windows closed.
1.8.5. Cleanliness: Interior and exterior of vehicles shall be free of all dirt, trash and debris.
1.8.6. Brakes: Must be in good mechanical working order capable of stopping the vehicle in
forward and reverse motion as intended and designed by the manufacturer. Brakes must be free of
noise and vibration when applied. Parking brake must be functional and capable of holding the
vehicle in a parked position without allowing the vehicle to move.
1.8.7. Heating and Air Conditioning: Vehicle must have operational heating and air and window
defogger (if installed).
1.8.8. Exhaust System: Must be in good working order, free of leaks, cracks, holes, and rust.
5

1.8.9. Doors: Must have driver controlled power door locks. All doors will open, close and lock
properly without the aid of any foreign objects (i.e. wire, etc.).
1.8.10. Seatbelts: Must be installed and in working condition in drivers and all passenger seating
positions to include passenger vans.
1.8.11. Airbags: Must have driver and front passenger side airbags installed.

2. GENERAL INFORMATION:

2.1. Quality Control. The contractor shall develop and maintain a quality program to ensure that all
lease vehicle vendor services and obligations as identified in this statement of work are performed
in accordance with commonly accepted commercial practices, and all local Turkish Government
regulations and procedures. The contractor shall develop and implement procedures to identify,
prevent, and ensure non-recurrence of defective services. At a minimum, the contractor shall
develop quality control procedures addressing the areas identified in paragraph 1, Description of
Services.
2.2. Contracting Officers Representative. The government will periodically evaluate the
contractors performance by appointing a representative to monitor performance to ensure
commodities are received. The government representative will evaluate the contractors
performance through periodic on-site inspections of the contractors quality control program and
receipt of complaints from customers. The contractor shall be responsible for initially validating
customer complaints. However, the government representative shall make a final determination of
the validity of customer complaint(s) in cases of disagreement with customer(s).
2.3. Holidays. The contractor is required to be available and provide service 365 days of the year,
24-hours a day including all Turkish and American holidays throughout the year.

3. SECURITY REQUIREMENTS:
3.1. Contact with Security Forces. If the contractor encounters any difficulty or needs assistance in
matters under the jurisdiction of the Chief of Security Forces, he/she should contact any
appropriate agency to include:
ISTANBUL AREA:
U.S. National Support Element (NSE), Istanbul: Commerical: 212-276-8418 or DSN: 672-3551
U.S. Consulate General: Commercial 212-335-9000

3.2. Safety. All lease vehicle vendor provided services shall be performed in a safe and health
conscious manner. Accident prevention principles must be thoroughly integrated in all operations.
Unsafe conditions and practices shall be corrected immediately.

4. PERFORMANCE OF SERVICES DURING CRISIS DECLARED BY THE NATIONAL
COMMAND AUTHORITY OR OVERSEAS COMBATANT COMMANDER (ALL
SERVICES):
4.1. On occasion (alerts, disasters, emergency response, exercises) the contractors services may
not be required for a particular area or may be required more so than normal. If at all possible, the
6

contracting officer or lease vehicle program QAP will notify the contractor when this occurs. No
price reduction will be made, but the contractor will take the required action necessary to make up
for missed services once normal conditions resume and with minimal interface to regular service
schedules.

5. TRAFFIC TICKETS:
5.1. Any fines or penalties incurred by government personnel during the period of lease shall be
paid for by the individual that committed the infraction or by the unit leasing the vehicles.
5.2 Appropriated funds will not be used to pay for traffic fines and penalties incurred by
government personnel, who are personally liable for the fines and penalties.
5.3 All fines or penalties shall be reported to the 39th Contracting Office and Fleet Manager upon
receipt.

6. APPENDIX A: VEHICLE TYPES AND CLASSIFICATIONS:
Vehicle Type Classification Passengers (drivers seat included)
Compact Station Wagons Class II 5
Mini Passenger Vans 7-9
Van/Bus 15-16
Panel Van/Cargo Van 2

This compilation includes
PL 110-246, approved 6/18/08.

SMALL BUSINESS ACT

(Public Law 85-536, as amended)

1. This Act may be cited as the Small Business Act.

2. (a) The essence of the American economic system of private enterprise is free
competition. Only through full and free competition can free markets, free entry into business,
and opportunities for the expression and growth of personal initiative and individual judgment be
assured. The preservation and expansion of such competition is basic not only to the economic
well-being but to the security of this Nation. Such security and well-being cannot be realized
unless the actual and potential capacity of small business is encouraged and developed. It is the
declared policy of the Congress that the Government should aid, counsel, assist, and protect,
insofar as is possible, the interests of small-business concerns in order to preserve free
competitive enterprise, to insure that a fair proportion of the total purchases and contracts or
subcontracts for property and services for the Government (including but not limited to contracts
or subcontracts for maintenance, repair, and construction) be placed with small business
enterprises, to insure that a fair proportion of the total sales of Government property be made to
such enterprises, and to maintain and strengthen the overall economy of the Nation.

(b) (1) It is the declared policy of the Congress that the Federal Government,
through the Small Business Administration, acting in cooperation with the Department of
Commerce and other relevant State and Federal agencies, should aid and assist small businesses,
as defined under this Act, to increase their ability to compete in international markets by

(A) enhancing their ability to export;

(B) facilitating technology transfers;

(C) enhancing their ability to compete effectively and efficiently
against imports;

(D) increasing the access of small businesses to long-term capital for
the purchase of new plant and equipment used in the production of goods and services involved
in international trade;

(E) disseminating information concerning State, Federal, and private
programs and initiatives to enhance the ability of small businesses to compete in international
markets; and

(Rev. 12)
SMALL BUSINESS ACT
(F) ensuring that the interests of small businesses are adequately
represented in bilateral and multilateral trade negotiations.

(2) The Congress recognizes that the Department of Commerce is the
principal Federal agency for trade development and export promotion and that the Department of
Commerce and the Small Business Administration work together to advance joint interests. It is
the purpose of this Act to enhance, not alter, their respective roles.

(c) It is the declared policy of the Congress that the Government, through the Small
Business Administration, should aid and assist small business concerns which are engaged in the
production of food and fiber, ranching, and raising of livestock, aquaculture, and all other
farming and agricultural related industries; and the financial assistance programs authorized by
this Act are also to be used to assist such concerns.

(d) (1) The assistance programs authorized by sections 7(i) and 7(j) of this Act
are to be utilized to assist in the establishment, preservation, and strengthening of small business
concerns and improve the managerial skills employed in such enterprises, with special attention
to small business concerns (1) located in urban or rural areas with high proportions of
unemployed or low-income individuals; or (2) owned by low-income individuals; and to
mobilize for these objectives private as well as public managerial skills and resources.

(2) (A) With respect to the programs authorized by section 7(j) of this Act,
the Congress finds

(i) that ownership and control of productive capital is
concentrated in the economy of the United States and certain groups, therefore, own and control
little productive capital;

(ii) that certain groups in the United States own and control
little productive capital because they have limited opportunities for small business ownership;

(iii) that the broadening of small business ownership among
groups that presently own and control little productive capital is essential to provide for the
well-being of this Nation by promoting their increased participation in the free enterprise system
of the United States;

(iv) that such development of business ownership among
groups that presently own and control little productive capital will be greatly facilitated through
the creation of a small business ownership development program, which shall provide services,
including, but not limited to, financial, management, and technical assistance.

(v) that the power to let Federal contracts pursuant to section
8(a) of the Small Business Act can be an effective procurement assistance tool for development
of business ownership among groups that own and control little productive capital; and

(Rev. 12)
2
SMALL BUSINESS ACT
(vi) that the procurement authority under section 8(a) of the
Small Business Act shall be used only as a tool for developing business ownership among groups
that own and control little productive capital.

(B) It is therefore the purpose of the programs authorized by section
7(j) of this Act to

(i) foster business ownership and development by individuals
in groups that own and control little productive capital; and

(ii) promote the competitive viability of such firms in the
marketplace by creating a small business and capital ownership development program to provide
such available financial, technical, and management assistance as may be necessary.

(e) Further, it is the declared policy of the Congress that the Government should aid
and assist victims of floods and other catastrophes, and small-business concerns which are
displaced as a result of federally aided construction programs.

(f) (1) With respect to the Administrations business development programs the
Congress finds

(A) that the opportunity for full participation in our free enterprise
system by socially and economically disadvantaged persons is essential if we are to obtain social
and economic equality for such persons and improve the functioning of our national economy;

(B) that many such persons are socially disadvantaged because of their
identification as members of certain groups that have suffered the effects of discriminatory
practices or similar invidious circumstances over which they have no control;

(C) that such groups include, but are not limited to, Black Americans,
Hispanic Americans, Native Americans, Indian tribes, Asian Pacific Americans, Native
Hawaiian Organizations, and other minorities;

(D) that it is in the national interest to expeditiously ameliorate the
conditions of socially and economically disadvantaged groups;

(E) that such conditions can be improved by providing the maximum
practicable opportunity for the development of small business concerns owned by members of
socially and economically disadvantaged groups;

(F) that such development can be materially advanced through the
procurement by the United States of articles, equipment, supplies, services, materials, and
construction work from such concerns; and

(Rev. 12)
3
SMALL BUSINESS ACT
(G) that such procurements also benefit the United States by
encouraging the expansion of suppliers for such procurements, thereby encouraging competition
among such suppliers and promoting economy in such procurements.

(2) It is, therefore, the purpose of section 8(a) to

(A) promote the business development of small business concerns
owned and controlled by socially and economically disadvantaged individuals so that such
concerns can compete on an equal basis in the American economy;

(B) promote the competitive viability of such concerns in the
marketplace by providing such available contract, financial, technical, and management
assistance as may be necessary; and

(C) clarify and expand the program for the procurement by the United
States of articles, equipment, supplies, services, materials, and construction work from small
business concerns owned by socially and economically disadvantaged individuals.

(g) In administering the disaster loan program authorized by section 7 of this Act, to
the maximum extent possible, the Administration shall provide assistance and counseling to
disaster victims in filing applications, providing information relevant to loan processing, and in
loan closing and prompt disbursement of loan proceeds and shall give the disaster program a
high priority in allocating funds for administrative expenses.

(h) (1) With respect to the programs and activities authorized by this Act, the
Congress finds that

(A) women owned business has become a major contributor to the
American economy by providing goods and services, revenues, and jobs;

(B) over the past two decades there have been substantial gains in the
social and economic status of women as they have sought economic equality and independence;

(C) despite such progress, women, as a group, are subjected to
discrimination in entrepreneurial endeavors due to their gender;

(D) such discrimination takes many overt and subtle forms adversely
impacting the ability to raise or secure capital, to acquire managerial talents, and to capture
market opportunities;

(E) it is in the national interest to expeditiously remove discriminatory
barriers to the creation and development of small business concerns owned and controlled by
women;

(Rev. 12)
4
SMALL BUSINESS ACT
(F) the removal of such barriers is essential to provide a fair
opportunity for full participation in the free enterprise system by women and to further increase
the economic vitality of the Nation;

(G) increased numbers of small business concerns owned and
controlled by women will directly benefit the United States Government by expanding the
potential number of suppliers of goods and services to the Government; and

(H) programs and activities designed to assist small business concerns
owned and controlled by women must be implemented in such a way as to remove such
discriminatory barriers while not adversely affecting the rights of socially and economically
disadvantaged individuals.

(2) It is, therefore, the purpose of those programs and activities conducted
under the authority of this Act that assist women entrepreneurs to

(A) vigorously promote the legitimate interests of small business
concerns owned and controlled by women;

(B) remove, insofar as possible, the discriminatory barriers that are
encountered by women in accessing capital and other factors of production; and

(C) require that the Government engage in a systematic and sustained
effort to identify, define and analyze those discriminatory barriers facing women and that such
effort directly involve the participation of women business owners in the public/private sector
partnership.

(i) PROHIBITION ON THE USE OF FUNDS FOR INDIVIDUALS NOT
LAWFULLY WITHIN THE UNITED STATES.None of the funds made available pursuant to
this Act may be used to provide any direct benefit or assistance to any individual in the United
States if the Administrator or the official to which the funds are made available receives
notification that the individual is not lawfully within the United States.

(j) CONTRACT BUNDLING.In complying with the statement of congressional
policy expressed in subsection (a), relating to fostering the participation of small business
concerns in the contracting opportunities of the Government, each Federal agency, to the
maximum extent practicable, shall

(1) comply with congressional intent to foster the participation of small
business concerns as prime contractors, subcontractors, and suppliers;

(2) structure its contracting requirements to facilitate competition by and
among small business concerns, taking all reasonable steps to eliminate obstacles to their
participation; and

(Rev. 12)
5
SMALL BUSINESS ACT
(3) avoid unnecessary and unjustified bundling of contract requirements that
precludes small business participation in procurements as prime contractors.

3 (a) (1) For the purposes of this Act, a small-business concern, including but not
limited to enterprises that are engaged in the business of production of food and fiber, ranching
and raising of livestock, aquaculture, and all other farming and agricultural related industries,
shall be deemed to be one which is independently owned and operated and which is not
dominant in its field of operation: Provided, That notwithstanding any other provision of law, an
agricultural enterprise shall be deemed to be a small business concern if it (including its
affiliates) has annual receipts not in excess of $750,000.

(2) ESTABLISHMENT OF SIZE STANDARDS.

(A) IN GENERAL.In addition to the criteria specified in paragraph
(1), the Administrator may specify detailed definitions or standards by which a business concern
may be determined to be a small business concern for the purposes of this Act or any other Act.

(B) ADDITIONAL CRITERIA.The standards described in
paragraph (1) may utilize number of employees, dollar volume of business, net worth, net
income, a combination thereof, or other appropriate factors.

(C) REQUIREMENTS.Unless specifically authorized by statute, no
Federal department or agency may prescribe a size standard for categorizing a business concern
as a small business concern, unless such proposed size standard

(i) is proposed after an opportunity for public notice and
comment;

(ii) provides for determining

(I) the size of a manufacturing concern as measured by
the manufacturing concern's average employment based upon employment during each of the
manufacturing concern's pay periods for the preceding 12 months;

(II) the size of a business concern providing services on
the basis of the annual average gross receipts of the business concern over a period of not less
than 3 years;

(III) the size of other business concerns on the basis of
data over a period of not less than 3 years; or

(IV) other appropriate factors; and

(iii) is approved by the Administrator.

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(3) When establishing or approving any size standard pursuant to paragraph
(2), the Administrator shall ensure that the size standard varies from industry to industry to the
extent necessary to reflect the differing characteristics of the various industries and consider
other factors deemed to be relevant by the Administrator.

(4) EXCLUSION OF CERTAIN SECURITY EXPENSES FROM
CONSIDERATION FOR PURPOSE OF SMALL BUSINESS SIZE STANDARDS.

(A) DETERMINATION REQUIRED.Not later than 30 days after
the date of enactment of this paragraph, the Administrator shall review the application of size
standards established pursuant to paragraph (2) to small business concerns that are performing
contracts in qualified areas and determine whether it would be fair and appropriate to exclude
from consideration in the average annual gross receipts of such small business concerns any
payments made to such small business concerns by Federal agencies to reimburse such small
business concerns for the cost of subcontracts entered for the sole purpose of providing security
services in a qualified area.

(B) ACTION REQUIRED.not later than 60 days after the date of
enactment of this paragraph, the Administrator shall either

(i) initiate an adjustment to the size standards, as described in
subparagraph (A), if the Administrator determines that such an adjustment would be fair and
appropriate; or

(ii) provide a report to the Committee on Small Business
Entrepreneurship of the Senate and the Committee on Small Business of the House of
Representatives explaining in detail the basis for the determination by the Administrator that
such an adjustment would not be fair and appropriate.

(C) QUALIFIED AREAS.In this paragraph, the term qualified
area means

(i) Iraq,

(ii) Afghanistan, and

(iii) any foreign country which included a combat zone, as that
term is defined in section 112(c)(2) of the Internal Revenue Code of 1986, at the time of
performance of the relevant Federal contract or subcontract.

(b) for purposes of this Act, any reference to an agency or department of the United
States, and the term Federal agency, shall have the meaning given the term agency by
section 551(1) of title 5, United States Code, but does not include the United States Postal
Service or the Government Accountability Office.

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(c) (1) For purposes of this Act, a qualified employee trust shall be eligible for
any loan guarantee under section 7(a) with respect to a small business concern on the same basis
as if such trust were the same legal entity as such concern.

(2) For purposes of this Act, the term qualified employee trust means, with
respect to a small business concern, a trust

(A) which forms part of an employee stock ownership plan (as defined
in section 4975(e)(7) of the Internal Revenue Code of 1954)

(i) which is maintained by such concern, and

(ii) which provides that each participant in the plan is entitled
to direct the plan as to the manner in which voting rights under qualifying employer securities (as
defined in section 4975(e)(8) of such Code) which are allocated to the account of such
participant are to be exercised with respect to a corporate matter which (by law or charter) must
be decided by a majority vote of outstanding common shares voted; and

(B) in the case of any loan guarantee under section 7(a), the trustee of
which enters into an agreement with the Administrator which is binding on the trust and on such
small business concern and which provides that

(i) the loan guaranteed under section 7(a) shall be used solely
for the purchase of qualifying employer securities of such concern,

(ii) all funds acquired by the concern in such purchase shall be
used by such concern solely for the purposes for which such loan was guaranteed,

(iii) such concern will provide such funds as may be necessary
for the timely repayment of such loan, and the property of such concern shall be available as
security for repayment of such loan, and

(iv) all qualifying employer securities acquired by such trust in
such purchase shall be allocated to the accounts of participants in such plan who are entitled to
share in such allocation, and each participant has a nonforfeitable right, not later than the date
such loan is repaid, to all such qualifying employer securities which are so allocated to the
participant's account.

(3) Under regulations which may be prescribed by the Administrator, a trust
may be treated as a qualified employee trust with respect to a small business concern if

(A) the trust is maintained by an employee organization which
represents at least 51 percent of the employees of such concern, and

(B) such concern maintains a plan

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(i) which is an employee benefit plan which is designed to
invest primarily in qualifying employer securities (as defined in section 4975(e)(8) of the
Internal Revenue Code of 1954),

(ii) which provides that each participant in the plan is entitled
to direct the plan as to the manner in which voting rights under qualifying employer securities
which are allocated to the account of such participant are to be exercised with respect to a
corporate matter which (by law or charter) must be decided by a majority vote of the outstanding
common shares voted,

(iii) which provides that each participant who is entitled to
distribution from the plan has a right, in the case of qualifying employer securities which are not
readily tradable on an established market, to require that the concern repurchase such securities
under a fair valuation formula, and

(iv) which meets such other requirements (similar to
requirements applicable to employee stock ownership plans as defined in section 4975(e)(7) of
the Internal Revenue Code of 1954) as the Administrator may prescribe, and

(C) in the case of a loan guarantee under section 7(a), such
organization enters into an agreement with the Administration which is described in paragraph
(2)(B).

(d) For purposes of section 7 of this Act, the term qualified Indian tribe means an
Indian tribe as defined in section 4(a) of the Indian Self-Determination and Education Assistance
Act, which owns and controls 100 per centum of a small business concern.

(e) For purposes of section 7 of this Act, the term public or private organization for
the handicapped means one

(1) which is organized under the laws of the United States or of any State,
operated in the interest of handicapped individuals, the net income of which does not inure in
whole or in part to the benefit of any shareholder or other individual;

(2) which complies with any applicable occupational health and safety
standard prescribed by the Secretary of Labor; and

(3) which, in the production of commodities and in the provision of services
during any fiscal year in which it received financial assistance under this subsection, employs
handicapped individuals for not less than 75 per centum of the man-hours required for the
production or provision of the commodities or services.

(f) For purposes of section 7 of this Act, the term handicapped individual means an
individual

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(1) who has a physical, mental, or emotional impairment, defect, ailment,
disease, or disability of a permanent nature which in any way limits the selection of any type of
employment for which the person would otherwise be qualified or qualifiable; or

(2) who is a service-disabled veteran.

(g) For purposes of section 7 of this Act, the term energy measures includes

(1) solar thermal energy equipment which is either of the active type based
upon mechanically forced energy transfer or of the passive type based on convective, conductive,
or radiant energy transfer or some combination of these types;

(2) photovoltaic cells and related equipment;

(3) a product or service the primary purpose of which is conservation of
energy through devices or techniques which increase the energy efficiency of existing
equipment, methods of operation, or systems which use fossil fuels, and which is on the Energy
Conservation Measures list of the Secretary of Energy or which the Administrator determines to
be consistent with the intent of this subsection;

(4) equipment the primary purpose of which is production of energy from
wood, biological waste, grain or other biomass source of energy;

(5) equipment the primary purpose of which is industrial cogeneration of
energy, district heating, or production of energy from industrial waste;

(6) hydroelectric power equipment;

(7) wind energy conversion equipment; and

(8) engineering, architectural, consulting, or other professional services which
are necessary or appropriate to aid citizens in using any of the measures described in paragraph
(1) through (7).

(h) For purposes of this Act, the term credit elsewhere means the availability of
credit from non-Federal sources on reasonable terms and conditions taking into consideration the
prevailing rates and terms in the community in or near where the concern transacts business, or
the homeowner resides, for similar purposes and periods of time.

(i) For purposes of section 7 of this Act, the term homeowners includes owners
and lessees of residential property and also includes personal property.

(j) For the purposes of this Act, the term small agricultural cooperative means an
association (corporate or otherwise) acting pursuant to the provisions of the Agricultural
Marketing Act (12 U.S.C. 1141(j), whose size does not exceed the size standard established by
the Administration for other similar agricultural small business concerns. In determining such
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size, the Administration shall regard the association as a business concern and shall not include
the income or employees of any member shareholder of such cooperative.

(k) (1) For the purposes of this Act, the term disaster means a sudden event
which causes severe damage including, but not limited to, floods, hurricanes, tornadoes,
earthquakes, fires, explosions, volcanoes, windstorms, landslides or mudslides, tidal waves,
commercial fishery failures or fishery resource disasters (as determined by the Secretary of
Commerce under section 308(b) of the Interjurisdictional Fisheries Act of 1986), ocean
conditions resulting in the closure of customary fishing waters, riots, civil disorders or other
catastrophes, except it does not include economic dislocations.

(2) For purposes of section 7(b)(2), the term disaster includes

(A) drought;

(B) below average water levels in the Great Lakes, or on any body of
water in the United States that supports commerce by small business concerns; and

(C) ice storms and blizzards.

(l) For purposes of this Act

(1) The term computer crime means

(A) any crime committed against a small business concern by means of
the use of a computer; and

(B) any crime involving the illegal use of, or tampering with, a
computer owned or utilized by a small business concern.

(m) For purposes of this Act, the term simplified acquisition threshold has the
meaning given such term in section 4(11) of the Office of Federal Procurement Policy Act (41
USC 403(11)).

(n) For the purposes of this Act, a small business concern is a small business concern
owned and controlled by women if

(1) at least 51 percent of small business concern is owned by one or more
women or, in the case of any publicly owned business at least 51 percent of the stock of which is
owned by one or more women; and

(2) the management and daily business operations of the business are
controlled by one or more women.

(o) DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS AND
RELATED TERMS.In this Act:
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(1) BUNDLED CONTRACT.The term bundled contract means a
contract that is entered into to meet requirements that are consolidated in a bundling of contract
requirements.

(2) BUNDLING OF CONTRACT REQUIREMENTS.The term bundling
of contract requirements means consolidating 2 or more procurement requirements for goods or
services previously provided or performed under separate smaller contracts into a solicitation of
offers for a single contract that is likely to be unsuitable for award to a small-business concern
due to

(A) the diversity, size, or specialized nature of the elements of the
performance specified;

(B) the aggregate dollar value of the anticipated award;

(C) the geographical dispersion of the contract performance sites; or

(D) any combination of the factors described in subparagraphs (A),
(B), and (C).

(3) SEPARATE SMALL CONTRACT.The term separate smaller
contract, with respect to a bundling of contract requirements, means a contract that has been
performed by 1 or more small business concerns or was suitable for award to 1 or more small
business concerns.

(p) DEFINITIONS RELATING TO HUBZONES.In this Act:

(1) HISTORICALLY UNDERUTILIZED BUSINESS ZONE.The term
historically underutilized business zone means any area located within 1 or more

(A) qualified census tracts;

(B) qualified nonmetropolitan counties;

(C) lands within the external boundaries of an Indian reservation;

(D) redesignated areas; or

(E) base closure areas.

(2) HUBZONE.The term HUBZone means a historically underutilized
business zone.

(3) HUBZONE SMALL BUSINESS CONCERN.The term HUBZone
small business concern means
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(A) a small business concern that is at least 51 percent owned and
controlled by United States citizens;

(B) a small business concern that is

(i) an Alaska Native Corporation owned and controlled by
Natives (as determined pursuant to section 29(e)(1) of the Alaska Native Claims Settlement Act
(43 U.S.C. 1626(e)(1))); or

(ii) a direct or indirect subsidiary corporation, joint venture, or
partnership of an Alaska Native Corporation qualifying pursuant to section 29(e)(1) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1626(e)(1)), if that subsidiary, joint venture, or
partnership is owned and controlled by Natives (as determined pursuant to section 29(e)(2) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1626(e)(2)));

(C) a small business concern

(i) that is wholly owned by 1 or more Indian tribal
governments, or by a corporation that is wholly owned by 1 or more Indian tribal governments;
or

(ii) that is owned in part by 1 or more Indian tribal
governments, or by a corporation that is wholly owned by 1 or more Indian tribal governments, if
all other owners are either United States citizens or small business concerns;

(D) a small business concern that is

(i) wholly owned by a community development corporation
that has received financial assistance under Part 1 of Subchapter A of the Community Economic
Development Act of 1981 (41 U.S.C. 9805 et seq.); or

(ii) owned in part by 1 or more community development
corporations, if all other owners are either United States citizens or small business concerns; or

(E) a small business concern that is

(i) a small agricultural cooperative organized or incorporated
in the United States;

(ii) wholly owned by 1 or more small agricultural cooperatives
organized or incorporated in the United States; or

(iii) owned in part by 1 or more small agricultural cooperatives
organized or incorporated in the United States, if all owners are small business concerns or
United States citizens.
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(4) QUALIFIED AREAS

(A) QUALIFIED CENSUS TRACT.The term qualified census
tract has the meaning given that term in section 42(d)(5)(C)(ii) of the Internal Revenue Code of
1986.

(B) QUALIFIED NONMETROPOLITAN COUNTY.The term
qualified nonmetropolitan county means any county

(i) that was not located in a metropolitan statistical area (as
defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) at the time of the most
recent census taken for purposes of selecting qualified census tracts under section 42(d)(5)(C)(ii)
of the Internal Revenue Code of 1986; and

(ii) in which

(I) the median household income is less than 80
percent of the nonmetropolitan State median household income, based on the most recent data
available from the Bureau of the Census of the Department of Commerce;

(II) the unemployment rate is not less than 140 percent
of the average unemployment rate for the United States or for the State in which such county is
located, whichever is less, based on the most recent data available from the Secretary of Labor;
or

(III) there is located a difficult development area, as
designated by the Secretary of Housing and Urban Development in accordance with section
42(d)(5)(C)(iii) of the Internal Revenue Code of 1986, within Alaska, Hawaii, or any territory or
possession of the United States outside the 48 contiguous States.

(C) REDESIGNATED AREA.The term redesignated area means
any census tract that ceases to be qualified under subparagraph (A) and any nonmetropolitan
county that ceases to be qualified under subparagraph (B), except that a census tract or a
nonmetropolitan county may be a redesignated area only until the later of

(i) the date on which the Census Bureau publicly releases the
first results from the 2010 decennial census; or

(ii) 3 years after the date on which the census tract or
nonmetropolitan county ceased to be so qualified.

(D) BASE CLOSURE AREA.The term base closure area means
lands within the external boundaries of a military installation that were closed through a
privatization process under the authority of

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(i) the Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of division B of Public Law 101-510; 10 U.S.C. 2687 note);

(ii) title II of the Defense Authorization Amendments and Base
Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note);

(iii) section 2687 of title 10, United States Code; or

(iv) any other provision of law authorizing or directing the
Secretary of Defense or the Secretary of a military department to dispose of real property at the
military installation for purposes relating to base closures of [sic] redevelopment, while retaining
the authority to enter into a leaseback of all or a portion of the property for military use.

(5) QUALIFIED HUBZONE SMALL BUSINESS CONCERN

(A) IN GENERAL.A HUBZone small business concern is
qualified, if

(i) the small business concern has certified in writing to the
Administrator (or the Administrator otherwise determines, based on information submitted to the
Administrator by the small business concern, or based on certification procedures, which shall be
established by the Administration by regulation) that

(I) it is a HUBZone small business concern

(aa) pursuant to subparagraph (A), (B), (C), (D)
or (E) of paragraph (3), and that its principal office is located in a HUBZone and not fewer than
35 percent of its employees reside in a HUBZone; or

(bb) pursuant to paragraph (3)(C), and not fewer
than 35 percent of its employees engaged in performing a contract awarded to the small business
concern on the basis of a preference provided under section 31(b) reside within any Indian
reservation governed by 1 or more of the tribal government owners, or reside within any
HUBZone adjoining any such Indian reservation;

(II) the small business concern will attempt to maintain
the applicable employment percentage under subclause (I) during the performance of any
contract awarded to the small business concern on the basis of a preference provided under
section 31(b); and

(III) with respect to any subcontract entered into by the
small business concern pursuant to a contract awarded to the small business concern under
section 31, the small business concern will ensure that

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(aa) in the case of a contract for services (except
construction), not less than 50 percent of the cost of contract performance incurred for personnel
will be expended for its employees or for employees of other HUBZone small business concerns;

(bb) in the case of a contract for procurement of
supplies (other than procurement from a regular dealer in such supplies), not less than 50 percent
of the cost of manufacturing the supplies (not including the cost of materials) will be incurred in
connection with the performance of the contract in a HUBZone by 1 or more HUBZone small
business concerns;

(cc) in the case of a contract for the procurement
by the Secretary of Agriculture of agricultural commodities, none of the commodity being
procured will be obtained by the prime contractor through a subcontractor for the purchase of the
commodity in substantially the final form in which it is to be supplied to the Government; and

(ii) no certification made or information provided by the small
business concern under clause (i) has been, in accordance with the procedures established under
section 31(c)(1)

(I) successfully challenged by an interested party; or

(II) otherwise determined by the Administrator to be
materially false.

(B) CHANGE IN PERCENTAGES.The Administrator may utilize a
percentage other than the percentage specified in under [sic] item (aa) or (bb) of subparagraph
(A)(i)(III), if the Administrator determines that such action is necessary to reflect conventional
industry practices among small business concerns that are below the numerical size standard for
businesses in that industry category.

(C) CONSTRUCTION AND OTHER CONTRACTS.The
Administrator shall promulgate final regulations imposing requirements that are similar to those
specified in items (aa) and (bb) of subparagraph (A)(i)(III) on contracts for general and specialty
construction, and on contracts for any other industry category that would not otherwise be
subject to those requirements. The percentage applicable to any such requirement shall be
determined in accordance with subparagraph (B).

(D) LIST OF QUALIFIED SMALL BUSINESS CONCERNS.The
Administrator shall establish and maintain a list of qualified HUBZone small business concerns,
which list shall, to the extent practicable

(i) once the Administrator has made the certification required
by subparagraph (A)(i) regarding a qualified HUBZone small business concern and has
determined that subparagraph (A)(ii) does not apply to that concern, include the name, address,
and type of business with respect to each such small business concern;

(Rev. 12)
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(ii) be updated by the Administrator not less than annually; and

(iii) be provided upon request to any Federal agency or other
entity.

(6) NATIVE AMERICAN SMALL BUSINESS CONCERNS.

(A) ALASKA NATIVE CORPORATION.The term Alaska Native
Corporation has the same meaning as the term Native Corporation in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).

(B) ALASKA NATIVE VILLAGE.The term Alaska Native
Village has the same meaning as the term Native village in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602).

(C) INDIAN RESERVATION.The term Indian reservation

(i) has the same meaning as the term Indian country in
section 1151 of title 18, United States Code, except that such term does not include

(I) any lands that are located within a State in which a
tribe did not exercise governmental jurisdiction on the date of enactment of this paragraph,
unless that tribe is recognized after that date of enactment by either an Act of Congress or
pursuant to regulations of the Secretary of the Interior for the administrative recognition that an
Indian group exists as an Indian tribe (part 83 of title 25, Code of Federal Regulations); and

(II) lands taken into trust or acquired by an Indian tribe
after the date of enactment of this paragraph if such lands are not located within the external
boundaries of an Indian reservation or former reservation or are not contiguous to the lands held
in trust or restricted status on that date of enactment; and

(ii) in the State of Oklahoma, means lands that

(I) are within the jurisdictional areas of an Oklahoma
Indian tribe (as determined by the Secretary of the Interior); and

(II) are recognized by the Secretary of the Interior as
eligible for trust land status under part 151 of title 25, Code of Federal Regulations (as in effect
on the date of enactment of this paragraph).

(7) AGRICULTURAL COMMODITY.The term agricultural commodity
has the same meaning as in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

(q) DEFINITIONS RELATING TO VETERANS.In this Act, the following
definitions apply:

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SMALL BUSINESS ACT
(1) SERVICE-DISABLED VETERAN.The term service-disabled
veteran means a veteran with a disability that is service-connected (as defined in section
101(16) of title 38, United States Code).

(2) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY
SERVICE-DISABLED VETERANS.The term small business concern owned and controlled
by service-disabled veterans means a small business concern

(A) not less than 51 percent of which is owned by one or more service-
disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the
stock of which is owned by one or more service-disabled veterans; and

(B) the management and daily business operations of which are
controlled by one or more service-disabled veterans or, in the case of a veteran with permanent
and severe disability, the spouse or permanent caregiver of such veteran.

(3) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY
VETERANS.The term small business concern owned and controlled by veterans means a
small business concern

(A) not less than 51 percent of which is owned by one or more veterans
or, in the case of any publicly owned business, not less than 51 percent of the stock of which is
owned by one or more veterans; and

controlled by one or more veterans.

(4) VETERAN.The term veteran has the meaning given the term in
section 101(2) of title 38, United States Code.

(5) RELIEF FROM TIME LIMITATIONS.

(A) IN GENERAL.Any time limitation on any qualification,
certification, or period of participation imposed under this Act on any program that is available
to small business concerns shall be extended for a small business concern that

(i) is owned and controlled by

(I) a veteran who was called or ordered to active duty
under a provision of law specified in section 101(a)(13)(B) of title 10, United States Code, on or
after September 11, 2001; or

(II) a service-disabled veteran who became such a
veteran due to an injury or illness incurred or aggravated in the active military, naval, or air
service during a period of active duty pursuant to a call or order to active duty under a provision
of law referred to in subclause (I) on or after September 11, 2001; and
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SMALL BUSINESS ACT

(ii) was subject to the time limitation during such period of
active duty.

(B) DURATION.Upon submission of proper documentation to the
Administrator, the extension of a time limitation under subparagraph (A) shall be equal to the
period of time that such veteran who owned or controlled such a concern was on active duty as
described in that subparagraph.

(C) EXCEPTION FOR PROGRAMS SUBJ ECT TO FEDERAL
CREDIT REFORM ACT OF 1990The provisions of subparagraphs (A) and (B) shall not
apply to any programs subject to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

(r) DEFINITIONS RELATING TO SMALL BUSINESS LENDING
COMPANIES.As used in section 23 of this Act:

(1) SMALL BUSINESS LENDING COMPANY.The term small business
lending company means a business concern that is authorized by the Administrator to make
loans pursuant to section 7(a) and whose lending activities are not subject to regulation by any
Federal or State regulatory agency.

(2) NON-FEDERALLY REGULATED SBA LENDER.The term non-
Federally regulated SBA lender means a business concern if

(A) such concern is authorized by the Administrator to make loans
under section 7;

(B) such concern is subject to regulation by a State; and

(C) the lending activities of such concern are not regulated by any
Federal banking authority.

(s) MAJ OR DISASTER.In this Act, the term major disaster has the meaning
given that term in section 102 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122).

4. (a) In order to carry out the policies of this Act there is hereby created an agency
under the name Small Business Administration (herein referred to as the Administration),
which Administration shall be under the general direction and supervision of the President and
shall not be affiliated with or be within any other agency or department of the Federal
Government. The principal office of the Administration shall be located in the District of
Columbia. The Administration may establish such branch and regional offices in other places in
the United States as may be determined by the Administrator of the Administration. As used in
this Act, the term United States includes the several States, the Territories and possessions of
the United States, the Commonwealth of Puerto Rico, the Trust Territory of the Pacific Islands,
and the District of Columbia.
(Rev. 12)
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(b) (1) The management of the Administration shall be vested in an Administrator
who shall be appointed from civilian life by the President, by and with the advice and consent of
the Senate, and who shall be a person of outstanding qualifications known to be familiar and
sympathetic with small-business needs and problems. The Administrator shall not engage in any
other business, vocation, or employment than that of serving as Administrator. In carrying out
the programs administered by the Small Business Administration including its lending and
guaranteeing functions, the Administrator shall not discriminate on the basis of sex or marital
status against any person or small business concern applying for or receiving assistance from the
Small Business Administration, and the Small Business Administration shall give special
consideration to veterans of the Armed Forces of the United States and their survivors or
dependents. The President also may appoint a Deputy Administrator, by and with the advice and
consent of the Senate. The Administrator is authorized to appoint five Associate Administrators
(including the Associate Administrator specified in section 201 of the Small Business Investment
Act of 1958) to assist in the execution of the functions vested in the Administration. One of the
Associate Administrators shall be designated at the time of his appointment as the Associate
Administrator for Minority Small Business and Capital Ownership Development who shall be an
employee in the competitive service or in the Senior Executive Service and a career appointee
and shall be responsible to the Administrator for the formulation and execution of the policies
and programs under sections 7(j) and 8(a) of this Act which provide assistance to minority small
business concerns. The Deputy Administrator shall be Acting Administrator of the
Administration during the absence or disability of the Administrator or in the event of a vacancy
in the office of the Administrator.

(2) The Administrator also shall be responsible for

(A) establishing and maintaining an external small business economic
data base for the purpose of providing the Congress and the Administration information on the
economic condition and the expansion or contraction of the small business sector. To that end,
the Administrator shall publish on a regular basis national small business economic indices and,
to the extent feasible, regional small business economic indices, which shall include, but need
not be limited to, data on

(i) employment, layoffs, and new hires;

(ii) number of business establishments and the types of such
establishments such as sole proprietorships, corporations, and partnerships;

(iii) number of business formations and failures;

(iv) sales and new orders;

(v) back orders;

(vi) investment in plant and equipment;

(Rev. 12)
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(vii) changes in inventory and rate of inventory turnover;

(viii) sources and amounts of capital investment, including debt,
equity, and internally generated funds;

(ix) debt to equity ratios;

(x) exports;

(xi) number and dollar amount of mergers and acquisitions by
size of acquiring and acquired firm; and

(xii) concentration ratios; and

(B) publishing annually a report giving a comparative analysis and
interpretation of the historical trends of the small business sector as reflected by the data
acquired pursuant to subparagraph (A) of this subsection.

(3) RISK MANAGEMENT DATABASE.

(A) ESTABLISHMENT.The Administration shall establish, within
the management system for the loan programs authorized by subsections (a) and (b) of section 7
of this Act and title V of the Small Business Investment Act of 1958, a management information
system that will generate a database capable of providing timely and accurate information in
order to identify loan underwriting, collections, recovery, and liquidation problems.

(B) INFORMATION TO BE MAINTAINED.In addition to such
other information as the Administration considers appropriate, the database established under
subparagraph (A) shall, with respect to each loan program described in subparagraph (A),
include information relating to

(i) the identity of the institution making the guaranteed loan or
issuing the debenture;

(ii) the identity of the borrower;

(iii) the total dollar amount of the loan or debenture;

(iv) the total dollar amount of government exposure in each
loan;

(v) the district of the Administration in which the borrower has
its principal office;

(vi) the principal line of business of the borrower, as identified
by Standard Industrial Classification Code (or any successor to that system);
(Rev. 12)
21
SMALL BUSINESS ACT

(vii) the delinquency rate for each program (including number of
instances and days overdue);

(viii) the number and amount of repurchases, losses, and
recoveries in each program;

(ix) the number of deferrals or forbearances in each program
(including days and number of instances);

(x) comparisons on the basis of loan program, lender,
Administration district and region, for all the data elements maintained; and

(xi) underwriting characteristics of each loan that has entered
into default, including term, amount and type of collateral, loan-to-value and other actual and
projected ratios, line of business, credit history, and type of loan.

(C) DEADLINE FOR OPERATIONAL CAPABILITY.The
database established under subparagraph (A) shall

(i) be operational not later than J une 30, 1997; and

(ii) capture data beginning on the first day of the second
quarter of fiscal year 1997 beginning after such date and thereafter.

(4) (A) The Administrator shall establish a small business computer
security and education program to

(i) provide small business concerns information regarding

(I) utilization and management of computer
technology;

(II) computer crimes committed against small business
concerns; and

(III) security for computers owned or utilized by small
business concerns;

(ii) provide for periodic forums for small business concerns to
improve their knowledge of the matters described in clause (i); and

(iii) provide training opportunities to educate small business
users on computer security techniques.

(Rev. 12)
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SMALL BUSINESS ACT
(B) The Administrator, after consultation with the Director of the
Institute of Computer Sciences and Technology within the Department of Commerce, shall
develop information and materials to carry out the activities described in subparagraph (A) of
this paragraph.

(c) (1) There are hereby established in the Treasury the following revolving
funds: (A) a disaster loan fund which shall be available for financing functions performed under
sections 5(e), 7(b)(1), 7(b)(2), 7(b)(3), 7(b)(4), and 7(d)(2) of this Act; and (B) a business loan
and investment fund which shall be available for financing functions performed under sections
5(g), 7(a), and 8(a) of this Act, and titles III, IV and V of the Small Business Investment Act of
1958.

(2) All repayments of loans and debentures, payments of interest and other
receipts arising out of transactions heretofore or hereafter entered into by the Administration (A)
pursuant to sections 5(e), 7(b)(1), 7(b)(2), 7(b)(3), 7(b)(4), 7(b)(5), 7(b)(6), 7(b)(7), 7(b)(8),
7(d)(2), and 7(g) of this Act shall be paid into a disaster loan fund; and (B) pursuant to sections
5(g), 7(a), 7(h), 7(i), 7(l), 7(m), and 8(a) of this Act, and titles III, IV and V of the Small
Business Investment Act of 1958, shall be paid into the business loan and investment fund.

(3) Unexpended balances of appropriations made to the fund pursuant to this
subsection, as in effect immediately prior to the effective date of this paragraph, shall be
allocated, together with related assets and liabilities, to the funds established by paragraph (1) in
such amounts as the Administrator shall determine.

(4) The Administration shall submit to the Committees on Appropriations,
Senate Select Committee on Small Business, and the Committee on Small Business of the House
of Representatives, as soon as possible after the beginning of each calendar quarter, a full and
complete report on the status of each of the funds established by paragraph (1). Business-type
budgets for each of the funds established by paragraph (1) shall be prepared, transmitted to the
Committees on Appropriations, the Senate Select Committee on Small Business and the
Committee on Small Business of the House of Representatives and considered, and enacted in
the manner prescribed by law (Sections 102, 103 and 104 of the Government Corporation
Control Act (31 USC 847-849)) for wholly owned Government corporations.

(5) (A) The Administration is authorized to make and issue notes to the
Secretary of the Treasury for the purpose of obtaining funds necessary for discharging
obligations under the revolving funds created by section 4(c)(1) of this Act and for authorized
expenditures out of the funds. Such notes shall be in such form and denominations and have
such maturities and be subject to such terms and conditions as may be prescribed by the
Administration with the approval of the Secretary of the Treasury. Such notes shall bear interest
at a rate fixed by the Secretary of the Treasury, taking into consideration the current average
market yield of outstanding marketable obligations of the United States having maturities
comparable to the notes issued by the Administration under this paragraph. The Secretary of the
Treasury is authorized and directed to purchase any notes of the Administration issued
hereunder, and, for that purpose, the Secretary of the Treasury is authorized to use as a public
debt transaction the proceeds from the sale of any securities issued under the Second Liberty
(Rev. 12)
23
SMALL BUSINESS ACT
Bond Act, as amended, and the purposes for which such securities may be issued under such Act,
as amended, are extended to include the purchase of notes issued by the Administration. All
redemptions, purchases, and sales by the Secretary of the Treasury of such notes shall be treated
as public debt transactions of the United States. All borrowing authority contained herein shall
be effective only to such extent or in such amounts as are provided in advance in appropriation
Acts.

(B) (i) Moneys in the funds established in subsection (c)(1) not
needed for current operations may be paid into miscellaneous receipts of the Treasury.

(ii) Following the close of each fiscal year, the Administration
shall pay into the miscellaneous receipts of the United States Treasury the actual interest that the
Administration collects during that fiscal year on all financings made under this Act.

(C) Except on those loan disbursements on which interest is paid under
subsection (B)(ii), the Administration shall pay into miscellaneous receipts of the Treasury,
following the close of each fiscal year, interest received by the Administration on financing
functions performed under this Act and titles III and V of the Small Business Investment Act of
l958 providing the capital used to perform such functions originated from appropriated funds.
Such payments shall be treated by the Department of the Treasury as interest income, not as
retirement of indebtedness.

(D) There are authorized to be appropriated, in any fiscal year, such
sums as may be necessary for losses and interest subsidies incurred by the funds established by
subsection (c)(l), but not previously reimbursed.

(d) There is hereby created the Loan Policy Board of the Small Business
Administration, which shall consist of the following members, all ex officio. The Administrator,
as Chairman, the Secretary of the Treasury, and the Secretary of Commerce. Either of the said
Secretaries may designate an officer of his Department, who has been appointed by the President
by and with the advice and consent of the Senate, to act in his stead as a member of the Loan
Policy Board with respect to any matter or matters. The Loan Policy Board shall establish
general policies (particularly with reference to the public interest involved in the granting and
denial of applications for financial assistance by the Administration and with reference to the
coordination of the functions of the Administration with other activities and policies of the
Government), which shall govern the granting and denial of applications for financial assistance
by the Administration.

(e) PROHIBITION ON THE PROVISION OF ASSISTANCE.Notwithstanding
any other provision of law, the Administration is prohibited from providing any financial or
other assistance to any business concern or other person engaged in the production or distribution
of any product or service that has been determined to be obscene by a court of competent
jurisdiction.

(f) CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT
OBLIGATIONS.
(Rev. 12)
24
SMALL BUSINESS ACT

(1) IN GENERAL.For financial assistance approved after the promulgation
of final regulations to implement this section, each recipient of financial assistance under this
Act, including a recipient of a direct loan or a loan guarantee, shall certify that the recipient is not
more than 60 days delinquent under the terms of any

(A) administrative order;

(B) court order; or

(C) repayment agreement entered into between the recipient and the
custodial parent or State agency providing child support enforcement services,

that requires the recipient to pay child support, as such term is defined in section 462(b) of the
Social Security Act.

(2) ENFORCEMENT.Not later than 6 months after the date of enactment
of this subsection, the Administration shall promulgate such regulations as may be necessary to
enforce compliance with the requirements of this subsection.

(g) GIFTS.

(1) IN GENERAL.The Administrator may, for purposes of this Act, the
Small Business Investment Act of 1954 [sic; should be 1958], and title IV of the Womens Business
Ownership Act of 1988, solicit, accept, hold, administer, utilize, and dispose of gifts, devises,
and bequests of cash, property (including tangible, intangible, real, and personal), subsistence,
and services. Notwithstanding any other provision of law, the Administrator may utilize gifts,
devises, or bequests for marketing and outreach activities, including the cost of promotional
materials and wearing apparel.

(2) AUDITS.Any gift, devise, or bequest of cash accepted by the
Administrator shall be held in a separate account and shall be subject to semi-annual audits by
the Inspector General of the Administration who shall report his findings to the Congress.

(3) CONFLICTS OF INTEREST.No gift, devise, or bequest shall be
solicited or accepted under the authority of this subsection if such solicitation or acceptance
would, in the determination of the General Counsel, create a conflict of interest.

(4) ACCEPTANCE OF SERVICES AND FACILITIES FOR DISASTER
LOAN PROGRAM.The Administrator may accept the services and facilities of Federal, State,
and local agencies and groups, both public and private, and utilize such gratuitous services and
facilities as may, from time to time, be necessary, to further the objectives of section 7(b).

(h) CO-SPONSORSHIP OF EVENTS.

(Rev. 12)
25
SMALL BUSINESS ACT
(1) AUTHORIZATION.The Administrator, after consultation with the
General Counsel, may provide assistance for the benefit of small business through
Administration-sponsored activities, through cosponsored activities with any eligible entity, or
through such other activities that the Administrator determines to be appropriate, including
recognition events.

(2) ELIGIBLE ENTITY.For purposes of this subsection, the term eligible
entity means any for-profit or not-for-profit entity, any Federal, State, or local government
official, or any Federal, State, or local government entity.

(3) PROHIBITION ON ENDORSEMENTS.The Administrator shall ensure
that the Administration and any eligible entities that cosponsor activities receive appropriate
recognition for such cosponsorship, and that such recognition does not constitute or imply an
endorsement by the Administration of any product or service of such entity.

(4) AUTHORITY TO CHARGE FEES.Notwithstanding any other
provision of law, the Administrator may charge a participant in any activity sponsored or
cosponsored by the Administration a minimal fee, and retain and use such fee to cover the costs
of such activity.

(5) LIMITED DELEGATION.The Administrator may not delegate the
authority described in this subsection except to the Deputy Administrator, an Associate
Administrator, or an Assistant Administrator.

(6) REPORT TO CONGRESS.The Inspector General of the Administration
shall report semi-annually to Congress on the Administrators use of authority under this
subsection.

(7) RULEMAKING.Not later than 180 days after the date of enactment of
this subsection, the Administrator shall promulgate regulations to carry out the provisions of this
subsection.

5 (a) The Administration shall have power to adopt, alter, and use a seal, which shall be
judicially noticed. The Administrator is authorized, subject to the civil service and classification
laws, to select, employ, appoint, and fix the compensation of such officers, employees, attorneys,
and agents as shall be necessary to carry out the provisions of this Act; to define their authority
and duties; and to pay the costs of qualification of certain of them as notaries public. The
Administration, with the consent of any board, commission, independent establishment or
executive department of the Government, may avail itself on a reimbursable or non-reimbursable
basis of the use of information, services, facilities (including any field service thereof), officers,
and employees thereof, in carrying out the provisions of this Act.

(b) In the performance of, and with respect to, the functions, powers, and duties
vested in him by this Act the Administrator may

(Rev. 12)
26
SMALL BUSINESS ACT
(1) sue and be sued in any court of record of a State having general
jurisdiction, or in any United States district court, and jurisdiction is conferred upon such district
court to determine such controversies without regard to the amount in controversy; but no
attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued
against the Administrator or his property;

(2) under regulations prescribed by him, assign or sell at public or private
sale, or otherwise dispose of for cash or credit, in his discretion and upon such terms and
conditions and for such consideration as the Administrator shall determine to be reasonable, any
evidence of debt, contract, claim, personal property, or security assigned to or held by him in
connection with the payment of loans granted under this Act, and to collect or compromise all
obligations assigned to or held by him and all legal or equitable rights accruing to him in
connection with the payment of such loans until such time as such obligations may be referred to
the Attorney General for suit or collection;

(3) deal with, complete, renovate, improve, modernize, insure, or rent, or sell
for cash or credit upon such terms and conditions and for such consideration as the Administrator
shall determine to be reasonable, any real property conveyed to or otherwise acquired by him in
connection with the payment of loans granted under this Act;

(4) pursue to final collection, by way of compromise or otherwise, all claims
against third parties assigned to the Administrator in connection with loans made by him. This
shall include authority to obtain deficiency judgments or otherwise in the case of mortgages
assigned to the Administrator. Section 3709 of the Revised Statutes, as amended (41 U.S.C., sec.
5), shall not be construed to apply to any contract of hazard insurance or to any purchase or
contract for services or supplies on account of property obtained by the Administrator as a result
of loans made under this Act if the premium therefor or the amount thereof does not exceed
$1,000. The power to convey and to execute in the name of the Administrator deeds of
conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written
instrument relating to real property or any interest therein acquired by the Administrator pursuant
to the provisions of this Act may be exercised by the Administrator or by any officer or agent
appointed by him without the execution of any express delegation of power or power of attorney.
Nothing in this section shall be construed to prevent the Administrator from delegating such
power by order or by power of attorney, in his discretion, to any officer or agent he may appoint;

(5) acquire, in any lawful manner, any property (real, personal, or mixed,
tangible or intangible), whenever deemed necessary or appropriate to the conduct of the activities
authorized in sections 7(a) and 7(b);

(6) make such rules and regulations as he deems necessary to carry out the
authority vested in him by or pursuant to this Act;

(7) in addition to any powers, functions, privileges and immunities otherwise
vested in him, take any and all actions (including the procurement of the services of attorneys by
contract in any office where an attorney or attorneys are not or cannot be economically employed
full time to render such services) when he determines such actions are necessary or desirable in
(Rev. 12)
27
SMALL BUSINESS ACT
making, servicing, compromising, modifying, liquidating, or otherwise dealing with or realizing
on loans made under the provisions of this Act: Provided, That with respect to deferred
participation loans, the Administrator may, in the discretion of and pursuant to regulations
promulgated by the Administrator, authorize participating lending institutions to take actions
relating to loan servicing on behalf of the Administrator, including determining eligibility and
creditworthiness and loan monitoring, collection, and liquidation;

(8) pay the transportation expenses and per diem in lieu of subsistence
expenses, in accordance with the Travel Expense Act of 1949, for travel of any person employed
by the Administration to render temporary services not in excess of six months in connection
with any disaster referred to in section 7(b) from place of appointment to, and while at, the
disaster area and any other temporary posts of duty and return upon completion of the
assignment: Provided That the Administrator may extend the six-month limitation for an
additional six months if the Administrator determines the extension is necessary to continue
efficient disaster loan making activities;

(9) accept the services and facilities of Federal, State, and local agencies and
groups, both public and private, and utilize such gratuitous services and facilities as may, from
time to time, be necessary, to further the objectives of section 7(b);

(10) upon purchase by the Administration of any deferred participation entered
into under section 7 of this Act, continue to charge a rate of interest not to exceed that initially
charged by the participating institution on the amount so purchased for the remaining term of the
indebtedness;

(11) make such investigations as he deems necessary to determine whether a
recipient of or participant in any assistance under this Act or any other person has engaged or is
about to engage in any acts or practices which constitute or will constitute a violation of any
provision of this Act, or of any rule or regulation under this Act, or of any order issued under this
Act. The Administration shall permit any person to file with it a statement in writing, under oath
or otherwise as the Administration shall determine, as to all the facts and circumstances
concerning the matter to be investigated. For the purpose of any investigation, the
Administration is empowered to administer oaths and affirmations, subpena [sic] witnesses,
compel their attendance, take evidence, and require the production of any books, papers, and
documents which are relevant to the inquiry. Such attendance of witnesses and the production of
any such records may be required from any place in the United States. In case of contumacy by,
or refusal to obey a subpena [sic] issued to, any person, including a recipient or participant, the
Administration may invoke the aid of any court of the United States within the jurisdiction of
which such investigation or proceeding is carried on, or where such person resides or carries on
business, in requiring the attendance and testimony of witnesses and the production of books,
papers, and documents; and such court may issue an order requiring such person to appear before
the Administration, there to produce records, if so ordered, or to give testimony touching the
matter under investigation. Any failure to obey such order of the court may be punished by such
court as a contempt thereof. All process in any such case may be served in the judicial district
whereof such person is an inhabitant or wherever he may be found; and

(Rev. 12)
28
SMALL BUSINESS ACT
(12) impose, retain, and use only those fees which are specifically authorized
by law or which are in effect on September 30, 1994, and in the amounts and at the rates in effect
on such date, except that the Administrator may, subject to approval in appropriations Acts,
impose, retain, and utilize, additional fees

(A) not to exceed $100 for each loan servicing action (other than a loan
assumption) requested after disbursement of the loan, including any substitution of collateral,
release or substitution of a guarantor, reamortization, or similar action;

(B) not to exceed $300 for loan assumptions;

(C) not to exceed 1 percent of the amount of requested financings
under title III of the Small Business Investment Act of 1958 for which the applicant requests a
commitment from the Administration for funding during the following year; and

(D) to recover the direct, incremental cost involved in the production
and dissemination of compilations of information produced by the Administration under the
authority of this Act and the Small Business Investment Act of 1958;

(13) collect, retain and utilize, subject to approval in appropriations Acts, any
amounts collected by fiscal transfer agents and not used by such agent as payment of the cost of
loan pooling or debenture servicing operations, except that amounts collected under this
paragraph and paragraph (12) shall be utilized solely to facilitate the administration of the
program that generated the excess amounts; and

(14) require any lender authorized to make loans under section 7 of this Act to
pay examination and review fees, which shall be deposited in the account for salaries and
expenses of the Administration, and shall be available for the costs of examinations, reviews, and
other lender oversight activities.

(c) To such extent as he finds necessary to carry out the provisions of this Act, the
Administrator is authorized to procure the temporary (not in excess of one year) or intermittent
services of experts or consultants or organizations thereof, including stenographic reporting
services, by contract or appointment, and in such cases such services shall be without regard to
the civil-service and classification laws and, except in the case of stenographic reporting services
by organizations, without regard to section 3709 of the Revised Statutes, as amended (41 U.S.C.,
5). Any individual so employed may be compensated at a rate not in excess of the daily
equivalent of the highest rate payable under section 5332 of title 5, United States Code, including
traveltime, and, while such individual is away from his or her home or regular place of business,
he or she may be allowed travel expenses (including per diem in lieu of subsistence) as
authorized by section 5703 of title 5, United States Code.

(d) Section 3648 of the Revised Statutes (31 U.S.C. 529) shall not apply to
prepayments of rentals made by the Administration on safety deposit boxes used by the
Administration for the safeguarding of instruments held as security for loans or for the
safeguarding of other documents.
(Rev. 12)
29
SMALL BUSINESS ACT

(e) (1) Subject to the requirements and conditions contained in this subsection,
upon application by a small business concern which is the recipient of a loan made under this
Act, the Administration may undertake the small business concern's obligation to make the
required payments under such loan or may suspend such obligation if the loan was a direct loan
made by the Administration. While such payments are being made by the Administration
pursuant to the undertaking of such obligation or while such obligation is suspended, no such
payment with respect to the loan may be required from the small business concern.

(2) The Administration may undertake or suspend for a period of not to
exceed 5 years any small business concern's obligation under this subsection only if

(A) without such undertaking or suspension of the obligation, the small
business concern would, in the sole discretion of the Administration, become insolvent or remain
insolvent;

(B) with the undertaking or suspension of the obligation, the small
business concern would, in the sole discretion of the Administration, become or remain a viable
small business entity; and

(C) the small business concern executes an agreement in writing
satisfactory to the Administration as provided by paragraph (4).

(3) Notwithstanding the provisions of sections 7(a)(4)(C) and 7(i)(l) of this
Act, the Administration may extend the maturity of any loan on which the Administration
undertakes or suspends the obligation pursuant to this subsection for a corresponding period of
time.

(4) (A) Prior to the undertaking or suspension by the Administration of
any small business concern's obligation under this subsection, the Administration, consistent
with the purposes sought to be achieved herein, shall require the small business concern to agree
in writing to repay to it the aggregate amount of the payments which were required under the
loan during the period for which such obligation was undertaken or suspended, either

(i) by periodic payments not less in amount or less frequently
falling due than those which were due under the loan during such period, or

(ii) pursuant to a repayment schedule agreed upon by the
Administration and the small business concern, or

(iii) by a combination of the payments described in clause (i)
and clause (ii).

(B) In addition to requiring the small business concern to execute the
agreement described in subparagraph (A), the Administration shall, prior to the undertaking or
suspension of the obligation, take such action, and require the small business concern to take
(Rev. 12)
30
SMALL BUSINESS ACT
such action as the Administration deems appropriate in the circumstances, including the
provision of such security as the Administration deems necessary or appropriate to insure that the
rights and interests of the lender (Small Business Administration or participant) will be
safeguarded adequately during or after the period in which such obligation is so undertaken or
suspended.

(5) The term required payments with respect to any loan means payments of
principal and interest under the loan.

(f) (1) The guaranteed portion of any loan made pursuant this Act may be sold by
the lender, and by any subsequent holder, consistent with regulations on such sales as the
Administration shall establish, subject to the following limitations:

(A) prior to the Administration's approval of the sale, or upon any
subsequent resale, of any loan guaranteed by the Administration, if the lender certifies that such
loan has been properly closed and that the lender has substantially complied with the provisions
of the guarantee agreement and the regulations of the Administration, the Administration shall
review and approve only materials not previously approved;

(B) all fees due the Administration on a guaranteed loan shall have
been paid in full prior to any sale; and

(C) each loan, except each loan made under section 7(a)(14), shall
have been fully disbursed to the borrower prior to any sale.

(2) After a loan is sold in the secondary market, the lender shall remain
obligated under its guarantee agreement with the Administration, and shall continue to service
the loan in a manner consistent with the terms and conditions of such agreement.

(3) The Administration shall develop such procedures as are necessary for the
facilitation, administration, and promotion of secondary market operations, and for assessing the
increase of small business access to capital at reasonable rates and terms as a result of secondary
market operations. Beginning on March 31, 1997, the sale of the unguaranteed portion of any
loan made under section 7(a) shall not be permitted until a final regulation that applies uniformly
to both depository institutions and other lenders is promulgated by the Administration setting
forth the terms and conditions under which such sales can be permitted, including maintenance
of appropriate reserve requirements and other safeguards to protect the safety and soundness of
the program.

(4) Nothing in this subsection or subsection (g) of this section shall be
interpreted to impede or extinguish the right of the borrower or the successor in interest to such
borrower to prepay (in whole or in part) any loan made pursuant to section 7(a) of this Act, the
guaranteed portion of which may be included in such trust or pool, or to impede or extinguish the
rights of any party pursuant to section 7(a)(6)(C) or subsection (e) of this section.

(Rev. 12)
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SMALL BUSINESS ACT
(g) (1) The Administration is authorized to issue trust certificates representing
ownership of all or a fractional part of the guaranteed portion of one or more loans which have
been guaranteed by the Administration under this Act, or under section 502 of the Small
Business Investment Act of 1958 (15 U.S.C. 660): Provided, That such trust certificates shall be
based on and backed by a trust or pool approved by the Administration and composed solely of
the entire guaranteed portion of such loans.

(2) The Administration is authorized, upon such terms and conditions as are
deemed appropriate, to guarantee the timely payment of the principal of and interest on trust
certificates issued by the Administration or its agent for purposes of this subsection. Such
guarantee shall be limited to the extent of principal and interest on the guaranteed portions of
loans which compose the trust or pool. In the event that a loan in such trust or pool is prepaid,
either voluntarily or in the event of default, the guarantee of timely payment of principal and
interest on the trust certificates shall be reduced in proportion to the amount of principal and
interest such prepaid loan represents in the trust or pool. Interest on prepaid or defaulted loans
shall accrue and be guaranteed by the Administration only through the date of payment on the
guarantee. During the term of the trust certificate, it may be called for redemption due to
prepayment or default of all loans constituting the pool.

(3) The full faith and credit of the United States is pledged to the payment of
all amounts which may be required to be paid under any guarantee of such trust certificates
issued by the Administration or its agent pursuant to this subsection.

(4) (A) The Administration may collect a fee for any loan guarantee sold
into the secondary market under subsection (f) in an amount equal to not more than 50 percent of
the portion of the sale price that exceeds 110 percent of the outstanding principal amount of the
portion of the loan guaranteed by the Administration. Any such fee imposed by the
Administration shall be collected by the Administration or by the agent which carries out on
behalf of the Administration the central registration functions required by subsection (h) of this
section and shall be paid to the Administration and used solely to reduce the subsidy on loans
guaranteed under section 7(a) of this Act: Provided, That such fee shall not be charged to the
borrower whose loan is guaranteed: and Provided further, That nothing herein shall preclude any
agent of the Administration from collecting a fee approved by the Administration for the
functions described in subsection (h)(2).

(B) The Administration is authorized to impose and collect, either
directly or through a fiscal and transfer agent, a reasonable penalty on late payments of the fee
authorized under subparagraph (A) in an amount not to exceed 5 percent of such fee per month
plus interest.

(C) The Administration may contract with an agent to carry out, on
behalf of the Administration, the assessment and collection of the annual fee established under
section 7(a)(23). The agent may receive, as compensation for services, any interest earned on the
fee while in the control of the agent before the time at which the agent is contractually required
to remit the fee to the Administration.

(Rev. 12)
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SMALL BUSINESS ACT
(5) (A) In the event the Administration pays a claim under a guarantee
issued under this subsection, it shall be subrogated fully to the rights satisfied by such payment.

(B) No State or local law, and no Federal law, shall preclude or limit
the exercise by the Administration of its ownership rights in the portions of loans constituting the
trust or pool against which the trust certificates are issued.

(h) (1) Upon the adoption of final rules and regulations, the Administration
shall

(A) provide for a central registration of all loans and trust certificates
sold pursuant to subsections (f) and (g) of this section;

(B) contract with an agent to carry out on behalf of the Administration
the central registration functions of this section and the issuance of trust certificates to facilitate
pooling. Such agent shall provide a fidelity bond or insurance in such amounts as the
Administration determines to be necessary to fully protect the interest of the Government;

(C) prior to any sale, require the seller to disclose to a purchaser of the
guaranteed portion of a loan guaranteed under this Act and to the purchaser of a trust certificate
issued pursuant to subsection (g), information on terms, conditions, and yield of such instrument.
As used in this paragraph, if the instrument being sold is a loan, the term seller does not
include (A) an entity which made the loan or (B) any individual or entity which sells three or
fewer guaranteed loans per year; and

(D) have the authority to regulate brokers and dealers in guaranteed
loans and trust certificates sold pursuant to subsections (f) and (g) of this section.

(2) The agent described in paragraph (1)(B) may be compensated through any
of the fees assessed under this section and any interest earned on any funds collected by the
agent while such funds are in the control of the agent and before the time at which the agent is
contractually required to transfer such funds to the Administration or to the holders of the trust
certificates, as appropriate.

(3) Nothing in this subsection shall prohibit the utilization of a book-entry or
other electronic form of registration for trust certificates. The Administration may, with the
consent of the Secretary of the Treasury, use the book-entry system of the Federal Reserve
System.

6. (a) All moneys of the Administration not otherwise employed may be deposited with
the Treasury of the United States subject to check by authority of the Administration. The
Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal
agents for the Administration in the general performance of its powers conferred by this Act.
Any banks insured by the Federal Deposit Insurance Corporation, when designated by the
Secretary of the Treasury, shall act as custodians and financial agents for the Administration.
(Rev. 12)
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Each Federal Reserve bank, when designated by the Administrator as fiscal agent for the
Administration, shall be entitled to be reimbursed for all expenses incurred as such fiscal agent.

(b) The Administrator shall contribute to the employees compensation fund, on the
basis of annual billings as determined by the Secretary of Labor, for the benefit payments made
from such fund on account of employees engaged in carrying out functions financed by the
revolving fund established by section 4(c) of this Act. The annual billings shall also include a
statement of the fair portion of the cost of the administration of such fund, which shall be paid by
the Administrator into the Treasury as miscellaneous receipts.

7. (a) LOANS TO SMALL BUSINESS CONCERNS; ALLOWABLE PURPOSES;
QUALIFIED BUSINESS; RESTRICTIONS AND LIMITATIONS.The Administration is
empowered to the extent and in such amounts as provided in advance in appropriation Acts to
make loans for plant acquisition, construction, conversion, or expansion, including the
acquisition of land, material, supplies, equipment, and working capital, and to make loans to any
qualified small business concern, including those owned by qualified Indian tribes, for purposes
of this Act. Such financings may be made either directly or in cooperation with banks or other
financial institutions through agreements to participate on an immediate or deferred (guaranteed)
basis. These powers shall be subject, however, to the following restrictions, limitations, and
provisions:

(1) IN GENERAL.

(A) CREDIT ELSEWHERE.No financial assistance shall be
extended pursuant to this subsection if the applicant can obtain credit elsewhere. No immediate
participation may be purchased unless it is shown that a deferred participation is not available;
and no direct financing may be made unless it is shown that a participation is not available.

(B) BACKGROUND CHECKS.Prior to the approval of any loan
made pursuant to this subsection, or section 503 of the Small Business Investment Act of 1958,
the Administrator may verify the applicants criminal background, or lack thereof, through the
best available means, including, if possible, use of the National Crime Information Center
computer system at the Federal Bureau of Investigation.

(2) LEVEL OF PARTICIPATION IN GUARANTEED LOANS.

(A) IN GENERAL.Except as provided in subparagraph (B), in an
agreement to participate in a loan on a deferred basis under this subsection (including a loan
made under the Preferred Lenders Program), such participation by the Administration shall be
equal to

(i) 75 percent of the balance of the financing outstanding at the
time of disbursement of the loan, if such balance exceeds $150,000; or

(ii) 85 percent of the balance of the financing outstanding at the
time of disbursement of the loan, if such balance is less than or equal to $150,000.
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(B) REDUCED PARTICIPATION UPON REQUEST.

(i) IN GENERAL.The guarantee percentage specified by
subparagraph (A) for any loan under this subsection may be reduced upon the request of the
participating lender.

(ii) PROHIBITION.The Administration shall not use the
guarantee percentage requested by a participating lender under clause (i) as a criterion for
establishing priorities in approving loan guarantee requests under this subsection.

(C) INTEREST RATE UNDER PREFERRED LENDERS
PROGRAM.

(i) IN GENERAL.The maximum interest rate for a loan
guaranteed under the Preferred Lenders Program shall not exceed the maximum interest rate, as
determined by the Administration, applicable to other loans guaranteed under this subsection.

(ii) PREFERRED LENDERS PROGRAM DEFINED.For
purposes of this subparagraph, the term Preferred Lenders Program means any program
established by the Administrator, as authorized under the proviso in section 5(b)(7), under which
a written agreement between the lender and the Administration delegates to the lender

(I) complete authority to make and close loans with a
guarantee from the Administration without obtaining the prior specific approval of the
Administration; and

(II) complete authority to service and liquidate such
loans without obtaining the prior specific approval of the Administration for routine servicing
and liquidation activities, but shall not take any actions creating an actual or apparent conflict of
interest.

(D) PARTICIPATION UNDER EXPORT WORKING CAPITAL
PROGRAM.Notwithstanding subparagraph (A), in an agreement to participate in a loan on a
deferred basis under the Export Working Capital Program established pursuant to paragraph
(14)(A), such participation by the Administration shall not exceed 90 percent.

(3) No loan shall be made under this subsection

(A) if the total amount outstanding and committed (by participation or
otherwise) to the borrower from the business loan and investment fund established by this Act
would exceed $1,500,000 (or if the gross loan amount would exceed $2,000,000), except as
provided in subparagraph (B);

(B) if the total amount outstanding and committed (on a deferred basis)
solely for the purposes provided in paragraph (16) to the borrower from the business loan and
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investment fund established by this Act would exceed $1,750,000, of which not more than
$1,250,000 may be used for working capital, supplies or financings under section 7(a)(14) for
export purposes; and

(C) if effected either directly or in cooperation with banks or other
lending institutions through agreements to participate on an immediate basis if the amount would
exceed $350,000.

(4) INTEREST RATES AND PREPAYMENT CHARGES.

(A) INTEREST RATES.Notwithstanding the provisions of the
constitution of any State or the laws of any State limiting the rate or amount of interest which
may be charged, taken, received, or reserved, the maximum legal rate of interest on any
financing made on a deferred basis pursuant to this subsection shall not exceed a rate prescribed
by the Administration, and the rate of interest for the Administration's share of any direct or
immediate participation loan shall not exceed the current average market yield on outstanding
marketable obligations of the United States with remaining periods to maturity comparable to the
average maturities of such loans and adjusted to the nearest one-eighth of 1 per centum, and an
additional amount as determined by the Administration, but not to exceed 1 per centum per
annum: Provided, That for those loans to assist any public or private organization for the
handicapped or to assist any handicapped individual as provided in paragraph (10) of this
subsection, the interest rate shall be 3 per centum per annum.

(B) PAYMENT OF ACCRUED INTEREST.

(i) IN GENERAL.Any bank or other lending institution
making a claim for payment on the guaranteed portion of a loan made under this subsection shall
be paid the accrued interest due on the loan from the earliest date of default to the date of
payment of the claim at a rate not to exceed the rate of interest on the loan on the date of default,
minus one percent.

(ii) LOANS SOLD ON SECONDARY MARKET.If a loan
described in clause (i) is sold on the secondary market, the amount of interest paid to a bank or
other lending institution described in that clause from the earliest date of default to the date of
payment of the claim shall be no more than the agreed upon rate, minus one percent.

(iii) APPLICABILITY.Clauses (i) and (ii) shall not apply to
loans made on or after October 1, 2000.

(C) PREPAYMENT CHARGES.

(i) IN GENERAL.A borrower who prepays any loan
guaranteed under this subsection shall remit to the Administration a subsidy recoupment fee
calculated in accordance with clause (ii) if

(I) the loan is for a term of not less than 15 years;
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(II) the prepayment is voluntary;

(III) the amount of prepayment in any calendar year is
more than 25 percent of the outstanding balance of the loan; and

(IV) the prepayment is made within the first 3 years after
disbursement of the loan proceeds.

(ii) SUBSIDY RECOUPMENT FEE.The subsidy
recoupment fee charged under clause (i) shall be

(I) 5 percent of the amount of prepayment, if the
borrower repays during the first year after disbursement;

(II) 3 percent of the amount of prepayment, if the
borrower prepays during the second year after disbursement; and

(III) 1 percent of the amount of prepayment, if the
borrower prepays during the third year after disbursement.

(5) No such loans including renewals and extensions thereof may be made for
a period or periods exceeding twenty-five years, except that such portion of a loan made for the
purpose of acquiring real property or constructing, converting, or expanding facilities may have a
maturity of twenty-five years plus such additional period as is estimated may be required to
complete such construction, conversion, or expansion.

(6) All loans made under this subsection shall be of such sound value or so
secured as reasonably to assure repayment: Provided, however, That

(A) for loans to assist any public or private organization or to assist any
handicapped individual as provided in paragraph (10) of this subsection any reasonable doubt
shall be resolved in favor of the applicant;

(B) recognizing that greater risk may be associated with loans for
energy measures as provided in paragraph (12) of this subsection, factors in determining sound
value shall include, but not be limited to, quality of the product or service; technical
qualifications of the applicant or his employees; sales projections; and the financial status of the
business concern: Provided further, That such status need not be as sound as that required for
general loans under this subsection; and [sic]

(C) [Repealed]

On that portion of the loan used to refinance existing indebtedness held by a bank or other
lending institution, the Administration shall limit the amount of deferred participation to 80 per
centum of the amount of the loan at the time of disbursement: Provided further, That any
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authority conferred by this subparagraph on the Administration shall be exercised solely by the
Administration and shall not be delegated to other than Administration personnel.

(7) The Administration may defer payments on the principal of such loans for
a grace period and use such other methods as it deems necessary and appropriate to assure the
successful establishment and operation of such concern.

(8) The Administration may make loans under this subsection to small
business concerns owned and controlled by disabled veterans (as defined in section 4211(3) of
title 38, United States Code).

(9) The Administration may provide loans under this subsection to finance
residential or commercial construction or rehabilitation for sale: Provided, however, That such
loans shall not be used primarily for the acquisition of land.

(10) The Administration may provide guaranteed loans under this subsection to
assist any public or private organization for the handicapped or to assist any handicapped
individual, including service-disabled veterans, in establishing, acquiring, or operating a small
business concern.

(11) The Administration may provide loans under this subsection to any small
business concern, or to any qualified person seeking to establish such a concern when it
determines that such loan will further the policies established in section 2(c) of this Act, with
particular emphasis on the preservation or establishment of small business concerns located in
urban or rural areas with high proportions of unemployed or low-income individuals or owned
by low-income individuals.

(12) (A) The Administration may provide loans under this subsection to
assist any small business concern, including start up, to enable such concern to design
architecturally or engineer, manufacture, distribute, market, install, or service energy measures:
Provided, however, That such loan proceeds shall not be used primarily for research and
development.

(B) The Administration may provide deferred participation loans under
this subsection to finance the planning, design, or installation of pollution control facilities for
the purposes set forth in section 404 of the Small Business Investment Act of 1958. Notwith-
standing the limitation expressed in paragraph (3) of this subsection, a loan made under this
paragraph may not result in a total amount outstanding and committed to a borrower from the
business loan and investment fund of more than $1,000,000.

(13) The Administration may provide financings under this subsection to State
and local development companies for the purposes of, and subject to the restrictions in, title V of
the Small Business Investment Act of 1958.

(14) (A) The Administration may provide extensions of credit, standby
letters of credit, revolving lines of credit for export purposes and other financing to enable small
(Rev. 12)
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SMALL BUSINESS ACT
business concerns, including small business export trading companies and small business export
management companies, to develop foreign markets. A bank or participating lending institution
may establish the rate of interest on extensions and revolving lines of credit as may be legal and
reasonable.

(B) When considering loan or guarantee applications, the
Administration shall give weight to export-related benefits, including opening new markets for
United States goods and services abroad and encouraging the involvement of small businesses,
including agricultural concerns, in the export market.

(C) The Administration shall aggressively market its export financing
program to small businesses.

(15) (A) The Administration may guarantee loans under this subsection to
qualified employee trusts with respect to a small business concern for the purpose of purchasing
stock of the concern under a plan approved by the Administrator which, when carried out, results
in the qualified employee trust owning at least 51 per centum of the stock of the concern.

(B) The plan requiring the Administrator's approval under
subparagraph (A) shall be submitted to the Administration by the trustee of such trust with its
application for the guarantee. Such plan shall include an agreement with the Administrator
which is binding on such trust and on the small business concern and which provides that

(i) not later than the date the loan guaranteed under
subparagraph (A) is repaid (or as soon thereafter as is consistent with the requirements of section
401(a) of the Internal Revenue Code of 1954), at least 51 per centum of the total stock of such
concern shall be allocated to the accounts of at least 51 per centum of the employees of such
concern who are entitled to share in such allocation,

(ii) there will be periodic reviews of the role in the
management of such concern of employees to whose accounts stock is allocated, and

(iii) there will be adequate management to assure management
expertise and continuity.

(C) In determining whether to guarantee any loan under this paragraph,
the individual business experience or personal assets of employee-owners shall not be used as
criteria, except inasmuch as certain employee-owners may assume managerial responsibilities, in
which case business experience may be considered.

(D) For purposes of this paragraph, a corporation which is controlled
by any other person shall be treated as a small business concern if such corporation would, after
the plan described in subparagraph (B) is carried out, be treated as a small business concern.

(E) The Administration shall compile a separate list of applications for
assistance under this paragraph, indicating which applications were accepted and which were
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denied, and shall report periodically to the Congress on the status of employee-owned firms
assisted by the Administration.

(16) INTERNATIONAL TRADE.

(A) IN GENERAL.If the Administrator determines that a loan
guaranteed under this subsection will allow an eligible small business concern that is engaged in
or adversely affected by international trade to improve its competitive position, the
Administrator may make such loan to assist such concern in

(i) the financing of the acquisition, construction, renovation,
modernization, improvement, or expansion of productive facilities or equipment to be used in the
United States in the production of goods and services involved in international trade; or

(ii) the refinancing of existing indebtedness that is not
structured with reasonable terms and conditions.

(B) SECURITY.Each loan made under this paragraph shall be
secured by a first lien position or first mortgage on the property or equipment financed by the
loan or on other assets of the small business concern.

(C) ENGAGED IN INTERNATIONAL TRADE.For purposes of
this paragraph, a small business concern is engaged in international trade if, as determined by the
Administrator, the small business concern is in a position to expand existing export markets or
develop new export markets.

(D) ADVERSELY AFFECTED BY INTERNATIONAL TRADE.
For purposes of this paragraph, a small business concern is adversely affected by international
trade if, as determined by the Administrator, the small business concern

(i) is confronting increased competition with foreign firms in
the relevant market; and

(ii) is injured by such competition.

(E) FINDINGS BY CERTAIN FEDERAL AGENCIES.For
purposes of subparagraph (D)(ii) the Administrator shall accept any finding of injury by the
International Trade Commission or any finding of injury by the Secretary of Commerce pursuant
to chapter 3 of title II of the Trade Act of 1974.

(17) The Administration shall authorize lending institutions and other entities
in addition to banks to make loans authorized under this subsection.

(18) GUARANTEE FEES.

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SMALL BUSINESS ACT
(A) IN GENERAL.With respect to each loan guaranteed under this
subsection (other than a loan that is repayable in 1 year or less), the Administration shall collect a
guarantee fee, which shall be payable by the participating lender, and may be charged to the
borrower, as follows:

(i) A guarantee fee not to exceed 2 percent of the deferred
participation share of a total loan amount that is not more than $150,000.

(ii) A guarantee fee not to exceed 3 percent of the deferred
participation share of a total loan amount that is more than $150,000, but not more than
$700,000.

(iii) A guarantee fee not to exceed 3.5 percent of the deferred
participation share of a total loan amount that is more than $700,000.

(iv) In addition to the fee under clause (iii), a guarantee fee
equal to 0.25 percent of any portion of the deferred participation share that is more than
$1,000,000.

(B) RETENTION OF CERTAIN FEES.Lenders participating in the
programs established under this subsection may retain not more than 25 percent of a fee
collected under subparagraph (A)(i).

(C) [Deleted.]

(19) (A) In addition to the Preferred Lenders Program authorized by the
proviso in section 5(b)(7), the Administration is authorized to establish a Certified Lenders
Program for lenders who establish their knowledge of Administration laws and regulations
concerning the guaranteed loan program and their proficiency in program requirements. The
designation of a lender as a certified lender shall be suspended or revoked at any time that the
Administration determines that the lender is not adhering to its rules and regulations or that the
loss experience of the lender is excessive as compared to other lenders, but such suspension or
revocation shall not affect any outstanding guarantee.

(B) In order to encourage all lending institutions and other entities
making loans authorized under this subsection to provide loans of $50,000 or less in guarantees
to eligible small business loan applicants, the Administration shall develop and allow
participating lenders to solely utilize a uniform and simplified loan form for such loans.

(C) Authority to liquidate loans.

(i) IN GENERAL.The Administrator may permit lenders
participating in the Certified Lenders Program to liquidate loans made with a guarantee from the
Administration pursuant to a liquidation plan approved by the Administrator.

(Rev. 12)
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(ii) Automatic approval.If the Administrator does not
approve or deny a request for approval of a liquidation plan within 10 business days of the date
on which the request is made (or with respect to any routine liquidation activity under such a
plan, within 5 business days) such request shall be deemed to be approved.

(20) (A) The Administration is empowered to make loans either directly or
in cooperation with banks or other financial institutions through agreements to participate on an
immediate or deferred (guaranteed) basis to small business concerns eligible for assistance under
subsection (j)(10) and section 8(a). Such assistance may be provided only if the Administration
determines that

(i) the type and amount of such assistance requested by such
concern is not otherwise available on reasonable terms from other sources;

(ii) with such assistance such concern has a reasonable
prospect for operating soundly and profitably within a reasonable period of time;

(iii) the proceeds of such assistance will be used within a
reasonable time for plant construction, conversion, or expansion, including the acquisition of
equipment, facilities, machinery, supplies, or material or to supply such concern with working
capital to be used in the manufacture of articles, equipment, supplies, or material for defense or
civilian production or as may be necessary to insure a well-balanced national economy; and

(iv) such assistance is of such sound value as reasonably to
assure that the terms under which it is provided will not be breached by the small business
concern.

(B) (i) No loan shall be made under this paragraph if the total
amount outstanding and committed (by participation or otherwise) to the borrower would exceed
$750,000.

(ii) Subject to the provisions of clause (i), in agreements to
participate in loans on a deferred (guaranteed) basis, participation by the Administration shall be
not less than 85 per centum of the balance of the financing outstanding at the time of
disbursement.

(iii) The rate of interest on financings made on a deferred
(guaranteed) basis shall be legal and reasonable.

(iv) Financings made pursuant to this paragraph shall be subject
to the following limitations:

(I) No immediate participation may be purchased
unless it is shown that a deferred participation is not available.

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(II) No direct financing may be made unless it is shown
that a participation is unavailable.

(C) A direct loan or the Administration's share of an immediate
participation loan made pursuant to this paragraph shall be any secured debt instrument

(i) that is subordinated by its terms to all other borrowings of
the issuer;

(ii) the rate of interest on which shall not exceed the current
average market yield on outstanding marketable obligations of the United States with remaining
periods to maturity comparable to the average maturities of such loan and adjusted to the nearest
one-eighth of 1 per centum;

(iii) the term of which is not more than twenty-five years; and

(iv) the principal on which amortized at such rate as may be
deemed appropriate by the Administration, and the interest on which is payable not less often
than annually.

(21) (A) The Administration may make loans on a guaranteed basis under
the authority of this subsection

(i) to a small business concern that has been (or can
reasonably be expected to be) detrimentally affected by

(I) the closure (or substantial reduction) of a
Department of Defense installation; or

(II) the termination (or substantial reduction) of a
Department of Defense program on which such small business was a prime contractor or
subcontractor (or supplier) at any tier; or

(ii) to a qualified individual or a veteran seeking to establish
(or acquire) and operate a small business concern.

(B) Recognizing that greater risk may be associated with a loan to a
small business concern described in subparagraph (A)(i), any reasonable doubts concerning the
firm's proposed business plan for transition to nondefense-related markets shall be resolved in
favor of the loan applicant when making any determination regarding the sound value of the
proposed loan in accordance with paragraph (6).

(C) Loans pursuant to this paragraph shall be authorized in such
amounts as provided in advance in appropriation Acts for the purposes of loans under this
paragraph.

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(D) For purposes of this paragraph a qualified individual is

(i) a member of the Armed Forces of the United States,
honorably discharged from active duty involuntarily or pursuant to a program providing bonuses
or other inducements to encourage voluntary separation or early retirement;

(ii) an employee of a prime contractor, subcontractor, or
supplier at any tier of a Department of Defense program whose employment is involuntarily
terminated (or voluntarily terminated pursuant to a program offering inducements to encourage
voluntary separation or early retirement) due to the termination (or substantial reduction) of a
Department of Defense program.

(E) J OB CREATION AND COMMUNITY BENEFIT.In providing
assistance under this paragraph, the Administration shall develop procedures to ensure, to the
maximum extent practicable, that such assistance is used for projects that

(i) have the greatest potential for

(I) creating new jobs for individuals whose
employment is involuntarily terminated due to reductions in Federal defense expenditures; or

(II) preventing the loss of jobs by employees of small
business concerns described in subparagraph (A)(i); and

(ii) have substantial potential for stimulating new economic
activity in communities most affected by reductions in Federal defense expenditures.

(22) The Administration is authorized to permit participating lenders to impose
and collect a reasonable penalty fee on late payments of loans guaranteed under this subsection
in an amount not to exceed 5 percent of the monthly loan payment per month plus interest.

(23) YEARLY FEE.

(A) IN GENERAL.With respect to each loan approved under this
subsection, the Administration shall assess, collect, and retain a fee, not to exceed 0.55 percent
per year of the outstanding balance of the deferred participation share of the loan, in an amount
established once annually by the Administration in the Administrations annual budget request to
Congress, as necessary to reduce to zero the cost to the Administration of making guarantees
under this subsection. As used in this paragraph, the term cost has the meaning given that term
in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(B) PAYER.The yearly fee assessed under subparagraph (A) shall
be payable by the participating lender and shall not be charged to the borrower.

(C) LOWERING OF BORROWER FEES.If the Administration
determines that fees paid by lenders and by small business borrowers for guarantees under this
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subsection may be reduced, consistent with reducing to zero the cost to the Administration of
making such guarantees

(i) the Administration shall first consider reducing fees paid by
small business borrowers under clauses (i) through (iii) of paragraph (18)(A), to the maximum
extent possible; and

(ii) fees paid by small business borrowers shall not be
increased above the levels in effect on the date of enactment of this subparagraph.

(24) NOTIFICATION REQUIREMENT.The Administration shall notify the
Committees on Small Business of the Senate and the House of Representatives not later than 15
days before making any significant policy or administrative change affecting the operation of the
loan program under this subsection.

(25) LIMITATION ON CONDUCTING PILOT PROJ ECTS.

(A) IN GENERAL.Not more than 10 percent of the total number of
loans guaranteed in any fiscal year under this subsection may be awarded as part of a pilot
program which is commenced by the Administrator on or after October 1, 1996.

(B) PILOT PROGRAM DEFINED.In this paragraph, the term pilot
program means any lending program initiative, project, innovation, or other activity not
specifically authorized by law.

(C) LOW DOCUMENTATION LOAN PROGRAM.The
Administrator may carry out the low documentation loan program for loans of $100,000 or less
only through lenders with significant experience in making small business loans. Not later than
90 days after the date of enactment of this subsection, the Administrator shall promulgate
regulations defining the experience necessary for participation as a lender in the low
documentation loan program.

(26) CALCULATION OF SUBSIDY RATE.All fees, interest, and profits
received and retained by the Administration under this subsection shall be included in the
calculations made by the Director of the Office of Management and Budget to offset the cost (as
that term is defined in section 502 of the Federal Credit Reform Act of 1990) to the
Administration of purchasing and guaranteeing loans under this Act.

(27) [Repealed].

(28) LEASING.In addition to such other lease arrangements as may be
authorized by the Administration, a borrower may permanently lease to one or more tenants not
more than 20 percent of any property constructed with the proceeds of a loan guaranteed under
this subsection, if the borrower permanently occupies and uses not less than 60 percent of the
total business space in the property.

(Rev. 12)
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SMALL BUSINESS ACT
(29) REAL ESTATE APPRAISALS.With respect to a loan under this
subsection that is secured by commercial real property, an appraisal of such property by a State
licensed or certified appraiser

(A) shall be required by the Administration in connection with any
such loan for more than $250,000; or

(B) may be required by the Administration or the lender in connection
with any such loan for $250,000 or less, if such appraisal is necessary for appropriate evaluation
of creditworthiness.

(30) OWNERSHIP REQUIREMENTS.Ownership requirements to
determine the eligibility of a small business concern that applies for assistance under any credit
program under this Act shall be determined without regard to any ownership interest of a spouse
arising solely from the application of the community property laws of a State for purposes of
determining marital interests.

(31) EXPRESS LOANS.

(A) DEFINITIONS.As used in this paragraph:

(i) The term express lender means any lender authorized by
the Administration to participate in the Express Loan Program.

(ii) The term express loan means any loan made pursuant to
this paragraph in which a lender utilizes to the maximum extent practicable its own loan
analyses, procedures, and documentation.

(iii) The term Express Loan Program means the program for
express loans established by the Administration under paragraph (25)(B), as in existence on
April 5, 2004, with a guaranty rate of not more than 50 percent.

(B) RESTRICTION TO EXPRESS LENDER.The authority to make
an express loan shall be limited to those lenders deemed qualified to make such loans by the
Administration. Designation as an express lender for purposes of making an express loan shall
not prohibit such lender from taking any other action authorized by the Administration for that
lender pursuant to this subsection.

(C) GRANDFATHERING OF EXISTING LENDERS.Any express
lender shall retain such designation unless the Administration determines that the express lender
has violated the law or regulations promulgated by the Administration or modifies the
requirements to be an express lender and the lender no longer satisfies those requirements.

(D) MAXIMUM LOAN AMOUNT.The maximum loan amount
under the Express Loan Program is $350,000.

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SMALL BUSINESS ACT
(E) OPTION TO PARTICIPATE.Except as otherwise provided in
this paragraph, the Administration shall take no regulatory, policy, or administrative action,
without regard to whether such action requires notification pursuant to paragraph (24), that has
the effect of requiring a lender to make an express loan pursuant to subparagraph (D).

(F) EXPRESS LOANS FOR RENEWABLE ENERGY AND
ENERGY EFFICIENCY.

(i) DEFINITIONS.In this subparagraph

(I) the term biomass

(aa) means any organic material that is available
on a renewable or recurring basis, including

(AA) agricultural crops;

(BB) trees grown for energy production;

(CC) wood waste and wood residues;

(DD) plants (including aquatic plants and
grasses);

(EE) residues;

(FF) fibers;

(GG) animal wastes and other waste
materials; and

(HH) fats, oils, and greases (including
recycled fats, oils, and greases); and

(bb) does not include

(AA) paper that is commonly recycled; or

(BB) unsegregated solid waste;

(II) the term energy efficiency project means the
installation or upgrading of equipment that results in a significant reduction in energy usage; and

(III) the term renewable energy system means a
system of energy derived from

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(aa) a wind, solar, biomass (including biodiesel),
or geothermal source; or

(bb) hydrogen derived from biomass or water
using an energy source described in item (aa).

(ii) LOANS.The Administrator may make a loan under the
Express Loan Program for the purpose of

(I) purchasing a renewable energy system; or

(II) carrying out an energy efficiency project for a small
business concern.

(32) LOANS FOR ENERGY EFFICIENT TECHNOLOGIES.

(A) DEFINITIONS.In this paragraph

(i) the term cost has the meaning given that term in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a);

(ii) the term covered energy efficiency loan means a loan

(I) made under this subsection; and

(II) the proceeds of which are used to purchase energy
efficient designs, equipment, or fixtures, or to reduce the energy consumption of the borrower by
10 percent or more; and

(iii) the term pilot program means the pilot program
established under subparagraph (B).

(B) ESTABLISHMENT.The Administrator shall establish and carry
out a pilot program under which the Administrator shall reduce the fees for covered energy
efficiency loans.

(C) DURATION.The pilot program shall terminate at the end of the
second full fiscal year after the date that the Administrator establishes the pilot program.

(D) MAXIMUM PARTICIPATION.A covered energy efficiency
loan shall include the maximum participation levels by the Administrator permitted for loans
made under this subsection.

(E) FEES.

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(i) IN GENERAL.The fee on a covered energy efficiency
loan shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph
(18).

(ii) WAIVER.The Administrator may waive clause (i) for a
fiscal year if

(I) for the fiscal year before that fiscal year, the annual
rate of default of covered energy efficiency loans exceeds that of loans made under this
subsection that are not covered energy efficiency loans;

(II) the cost to the Administration of making loans
under this subsection is greater than zero and such cost is directly attributable to the cost of
making covered energy efficiency loans; and

(III) no additional sources of revenue authority are
available to reduce the cost of making loans under this subsection to zero.

(iii) EFFECT OF WAIVER.If the Administrator waives the
reduction of fees under clause (ii), the Administrator

(I) shall not assess or collect fees in an amount greater
than necessary to ensure that the cost of the program under this subsection is not greater than
zero; and

(II) shall reinstate the fee reductions under clause (i)
when the conditions in clause (ii) no longer apply.

(iv) NO INCREASE OF FEES.The Administrator shall not
increase the fees under paragraph (18) on loans made under this subsection that are not covered
energy efficiency loans as a direct result of the pilot program.

(F) GAO REPORT.

(i) IN GENERAL.Not later than 1 year after the date that
the pilot program terminates, the Comptroller General of the United States shall submit to the
Committee on Small Business of the House of Representatives and the Committee on Small
Business and Entrepreneurship of the Senate a report on the pilot program.

(ii) CONTENTS.The report submitted under clause (i) shall
include

(I) the number of covered energy efficiency loans for
which fees were reduced under the pilot program;

(Rev. 12)
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(II) a description of the energy efficiency savings with
the pilot program;

(III) a description of the impact of the pilot program on
the program under this subsection;

(IV) an evaluation of the efficacy and potential fraud and
abuse of the pilot program; and

(V) recommendations for improving the pilot program.

(32) INCREASED VETERAN PARTICIPATION PROGRAM.

(A) DEFINITIONS.In this paragraph

(i) the term cost has the meaning given that term in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a);

(ii) the term pilot program means the pilot program
established under subparagraph (B): and

(iii) the term veteran participation loan means a loan made
under this subsection to a small business concern owned and controlled by veterans of the Armed
Forces or members of the reserve components of the Armed Forces.

(B) ESTABLISHMENT.The Administrator shall establish and carry
out a pilot program under which the Administrator shall reduce the fees for veteran participation
loans.

(C) DURATION.The pilot program shall terminate at the end of the
second full fiscal year after the date that the Administrator establishes the pilot program.

(D) MAXIMUM PARTICIPATION.A veteran participation loan
shall include the maximum participation levels by the Administrator permitted for loans made
under this subsection.

(E) FEES.

(i) IN GENERAL.The fee on a veteran participation loan
shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph (18).

(ii) WAIVER.The Administrator may waive clause (i) for a
fiscal year if

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(I) for the fiscal year before that fiscal year, the annual
estimated rate of default of veteran participation loans exceeds that of loans made under this
subsection that are not veteran participation loans;

(II) the cost to the Administration of making loans
under this subsection is greater than zero and such cost is directly attributable to the cost of
making veteran participation loans; and

(III) no additional sources of revenue authority are
available to reduce the cost of making loans under this subsection to zero.

(iii) EFFECT OF WAIVER.If the Administrator waives the
reduction of fees under clause (ii), the Administrator

(I) shall not assess or collect fees in an amount greater
than necessary to ensure that the cost of the program under this subsection is not greater than
zero; and

(II) shall reinstate the fee reductions under clause (i)
when the conditions in clause (ii) no longer apply.

(iv) NO INCREASE OF FEES.the Administrator shall not
increase the fees under paragraph (18) on loans made under this subsection that are not veteran
participation loans as a direct result of the pilot program.

(F) GAO REPORT.

(i) IN GENERAL.Not later than 1 year after the date that
the pilot program terminates, the Comptroller General of the United States shall submit to the
Committee on Small Business of the House of Representatives and the Committee on Small
business and Entrepreneurship of the Senate a report on the pilot program.

(ii) CONTENTS.The report submitted under clause (i) shall
include

(I) the number of veteran participation loans for which
fees were reduced under the pilot program;

(II) a description of the impact of the pilot program on
the program under this subsection;

(III) an evaluation of the efficacy and potential fraud and
abuse of the pilot program; and

(IV) recommendations for improving the pilot program.

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(b) Except as to agricultural enterprises as defined in section 18(b)(1) of this Act, the
Administration also is empowered to the extent and in such amounts as provided in advance in
appropriation Acts

(1) (A) to make such loans (either directly or in cooperation with banks or
other lending institutions through agreements to participate on an immediate or deferred
(guaranteed) basis as the Administration may determine to be necessary or appropriate to repair,
rehabilitate or replace property, real or personal, damaged or destroyed by or as a result of
natural or other disasters,: Provided, That such damage or destruction is not compensated for by
insurance or otherwise: And provided further, That the Administration may increase the amount
of the loan by up to an additional 20 per centum of the aggregate costs of such damage or
destruction (whether or not compensated for by insurance or otherwise) if it determines such
increase to be necessary or appropriate in order to protect the damaged or destroyed property
from possible future disasters by taking mitigating measures, including, but not limited to,
construction of retaining walls and sea walls, grading and contouring land, relocating utilities
and modifying structures;

(B) to refinance any mortgage or other lien against a totally destroyed
or substantially damaged home or business concern: Provided, That no loan or guarantee shall
be extended unless the Administration finds that (i) the applicant is not able to obtain credit
elsewhere; (ii) such property is to be repaired, rehabilitated, or replaced; (iii) the amount
refinanced shall not exceed the amount of physical loss sustained; and (iv) such amount shall be
reduced to the extent such mortgage or lien is satisfied by insurance or otherwise; and

(C) during fiscal years 2000 through 2004, to establish a predisaster
mitigation program to make such loans (either directly or in cooperation with banks or other
lending institutions through agreements to participate on an immediate or deferred (guaranteed)
basis), as the Administrator may determine to be necessary or appropriate, to enable small
businesses to use mitigation techniques in support of a formal mitigation program established by
the Federal Emergency Management Agency, except that no loan or guarantee may be extended
to a small business under this subparagraph unless the Administration finds that the small
business is otherwise unable to obtain credit for the purposes described in this subparagraph;

(2) to make such loans (either directly or in cooperation with banks or other
lending institutions through agreements to participate on an immediate or deferred (guaranteed)
basis as the Administration may determine to be necessary or appropriate) to any small business
concern, private nonprofit organization or small agricultural cooperative located in an area
affected by a disaster, (including drought), with respect to both farm-related and nonfarm-related
small business concerns, if the Administration determines that the concern, the organization or
the cooperative has suffered a substantial economic injury as a result of such disaster and if such
disaster constitutes

(A) a major disaster, as determined by the President under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act; or

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(B) a natural disaster, as determined by the Secretary of Agriculture
pursuant to the Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1961); or

(C) a disaster, as determined by the Administrator of the Small
Business Administration; or

(D) if no disaster declaration has been issued pursuant to subparagraph
(A), (B), or (C), the Governor of a State in which a disaster has occurred may certify to the Small
Business Administration that small business concerns, private nonprofit organizations or small
agricultural cooperatives (1) have suffered economic injury as a result of such disaster, and (2)
are in need of financial assistance which is not available on reasonable terms in the disaster
stricken area. Not later than 30 days after the date of receipt of such certification by a Governor
of a State, the Administration shall respond in writing to that Governor on its determination and
the reasons therefore, and may then make such loans as would have been available under this
paragraph if a disaster declaration had been issued.

Provided, That no loan or guarantee shall be extended pursuant to this paragraph (2) unless the
Administration finds that the applicant is not able to obtain credit elsewhere.

(3) (A) In this paragraph

(i) the term essential employee means an individual who is
employed by a small business concern and whose managerial or technical expertise is critical to
the successful day-to-day operations of that small business concern;

(ii) the term period of military conflict has the meaning
given the term in subsection (n)(1); and

(iii) the term substantial economic injury means an economic
harm to a business concern that results in the inability of the business concern

(I) to meet its obligations as they mature;

(II) to pay its ordinary and necessary operating
expenses; or

(III) to market, produce, or provide a product or service
ordinarily marketed, produced, or provided by the business concern.

(B) The Administration may make such disaster loans (either directly
or in cooperation with banks or other lending institutions through agreements to participate on an
immediate or deferred basis) to assist a small business concern that has suffered or that is likely
to suffer substantial economic injury as the result of an essential employee of such small
business concern being ordered to active military duty during a period of military conflict.

(Rev. 12)
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(C) A small business concern described in subparagraph (B) shall be
eligible to apply for assistance under this paragraph during the period beginning on the date on
which the essential employee is ordered to active duty and ending on the date that is 1 year after
the date on which such essential employee is discharged or released from active duty. The
Administrator may, when appropriate (as determined by the Administrator), extend the ending
date specified in the preceding sentence by not more than 1 year.

(D) Any loan or guarantee extended pursuant to this paragraph shall be
made at the same interest rate as economic injury loans under paragraph (2).

(E) No loan may be made under this paragraph, either directly or in
cooperation with banks or other lending institutions through agreements to participate on an
immediate or deferred basis, if the total amount outstanding and committed to the borrower
under this subsection would exceed $1,500,000, unless such applicant constitutes, or have
become due to changed circumstances, a major source of employment in its surrounding area, as
determined by the Administration, in which case the Administration, in its discretion, may waive
the $1,500,000 limitation.

(F) For purposes of assistance under this paragraph, no declaration of a
disaster area shall be required.

(G) (i) Notwithstanding any other provision of law, the
Administrator make a loan under this paragraph of not more than $50,000 without collateral.

(ii) The Administrator may defer payment of principal and
interest on a loan described in clause (i) during the longer of

(I) the 1-year period beginning on the date of the initial
disbursement of the loan; and

(II) the period during which the relevant essential
employee is on active duty.

(H) The Administrator shall give priority to any application for a loan
under this paragraph and shall process and make a determination regarding such applications
prior to processing or making a determination on other loan applications under this subsection,
on a rolling basis.

(4) COORDINATION WITH FEMA.

(A) IN GENERAL.Notwithstanding any other provision of law, for
any disaster declared under this subsection or major disaster (including any major disaster
relating to which the Administrator declares eligibility for additional disaster assistance under
paragraph (9)), the Administrator, in consultation with the Administrator of the Federal
Emergency Management Agency, shall ensure, to the maximum extent practicable, that all
application periods for disaster relief under this Act correspond with application deadlines
(Rev. 12)
54
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established under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.), or as extended by the President.

(B) DEADLINES.Notwithstanding any other provision of law, not
later than 10 days before the closing date of an application period for a major disaster (including
any major disaster relating to which the Administrator declares eligibility for additional disaster
assistance under paragraph (9)), the Administrator, in consultation with the Administrator of the
Federal Emergency Management Agency, shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of the House of
Representatives a report that includes

(i) the deadline for submitting applications for assistance
under this Act relating to that major disaster;

(ii) information regarding the number of loan applications and
disbursements processed by the Administrator relating to that major disaster for each day during
the period beginning on the date on which that major disaster was declared and ending on the
date of that report; and

(iii) an estimate of the number of potential applicants that have
not submitted an application relating to that major disaster.

(5) PUBLIC AWARENESS OF DISASTERS.If a disaster is declared
under this subsection or the Administrator declares eligibility for additional disaster assistance
under paragraph (9), the Administrator shall make every effort to communicate through radio,
television, print, and web-based outlets, all relevant information needed by disaster loan
applicants, including

(A) the date of such declaration;

(B) cities and towns within the area of such declaration;

(C) loan application deadlines related to such disaster;

(D) all relevant contact information for victim services available
through the Administration (including links to small business development center websites);

(E) links to relevant Federal and State disaster assistance websites,
including links to websites providing information regarding assistance available from the Federal
Emergency Management Agency;

(F) information on eligibility criteria for Administration loan
programs, including where such applications can be found; and

(G) application materials that clearly state the function of the
Administration as the Federal source of disaster loans for homeowners and renters.
(Rev. 12)
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(6) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS.

(A) DISASTER LOAN PROCESSING.The Administrator may
enter into an agreement with a qualified private contractor, as determined by the Administrator,
to process loans under this subsection in the event of a major disaster (including any major
disaster relating to which the Administrator declares eligibility for additional disaster assistance
under paragraph (9)), under which the Administrator shall pay the contractor a fee for each loan
processed.

(B) LOAN LOSS VERIFICATION SERVICES.The Administrator
may enter into an agreement with a qualified lender or loss verification professional, as
determined by the Administrator, to verify losses for loans under this subsection in the event of a
major disaster (including any major disaster relating to which the Administrator declares
eligibility for additional disaster assistance under paragraph (9)), under which the Administrator
shall pay the lender or verification professional a fee for each loan for which such lender or
verification professional verifies losses.

(7) DISASTER ASSISTANCE EMPLOYEES.

(A) IN GENERAL.In carrying out this section, the Administrator
may, where practicable, ensure that the number of full-time equivalent employees

(i) in the Office of the Disaster Assistance is not fewer than
800; and

(ii) in the Disaster Cadre of the Administration is not fewer
than 1,000.

(B) REPORT.In carrying out this subsection, if the number of full-
time employees for either the Office of Disaster Assistance or the Disaster Cadre of the
Administration is below the level described in subparagraph (A) for that office, not later than 21
days after the date on which that staffing level decreased below the level described in
subparagraph (A), the Administrator shall submit to the Committee on Appropriations and the
Committee on Small Business and Entrepreneurship of the Senate and the Committee on
Appropriations and Committee on Small Business of the House of Representatives, a report

(i) detailing staffing levels on that date;

(ii) requesting, if practicable and determined appropriate by the
Administrator, additional funds for additional employees; and

(iii) containing such additional information, as determined
appropriate by the Administrator.

(8) INCREASED LOAN CAPS.
(Rev. 12)
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(A) AGGREGATE LOAN AMOUNTS.Except as provided in
subparagraph (B), and notwithstanding any other provision of law, the aggregate loan amount
outstanding and committed to a borrower under this subsection may not exceed $2,000,000.

(B) WAIVER AUTHORITY.The Administrator may, at the
discretion of the Administrator, increase the aggregate loan amount under subparagraph (A) for
loans relating to a disaster to a level established by the Administrator, based on appropriate
economic indicators for the region in which that disaster occurred.

(9) DECLARATION OF ELIGIBILITY FOR ADDITIONAL DISASTER
ASSISTANCE.

(A) IN GENERAL.If the President declares a major disaster, the
Administrator may declare eligibility for additional disaster assistance in accordance with this
paragraph.

(B) THRESHOLD.A major disaster for which the Administrator
declares eligibility for additional disaster assistance under this paragraph shall

(i) have resulted in extraordinary levels of casualties or
damage or disruption severely affecting the population (including mass evacuations),
infrastructure, environment, economy, national morale, or government functions in an area;

(ii) be comparable to the description of a catastrophic incident
in the National Response Plan of the Administration, or any successor thereto, unless there is no
successor to such plan, in which case this clause shall have no force or effect; and

(iii) be of such size and scope that

(I) the disaster assistance programs under the other
paragraphs under this subsection are incapable of providing adequate and timely assistance to
individuals or business concerns located within the disaster area; or

(II) a significant number of business concerns outside
the disaster area have suffered disaster-related substantial economic injury as a result of the
incident.

(C) ADDITIONAL ECONOMIC INJ URY DISASTER LOAN
ASSISTANCE.

(i) IN GENERAL.If the Administrator declares eligibility
for additional disaster assistance under this paragraph, the Administrator may make such loans
under this subparagraph (either directly or in cooperation with banks or other lending institutions
through agreements to participate on an immediate or deferred basis) as the Administrator
determines appropriate to eligible small business concerns located anywhere in the United States.
(Rev. 12)
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(ii) PROCESSING TIME.

(I) IN GENERAL.If the Administrator determines
that the average processing time for applications for disaster loans under this subparagraph
relating to a specific major disaster is more than 15 days, the Administrator shall give priority to
the processing of such applications submitted by eligible small business concerns located inside
the disaster area, until the Administrator determines that the average processing time for such
applications is not more than 15 days.

(II) SUSPENSION OF APPLICATIONS FROM
OUTSIDE DISASTER AREA.If the Administrator determines that the average processing
time for applications for disaster loans under this subparagraph relating to a specific major
disaster is more than 30 days, the Administrator shall suspend the processing of such
applications submitted by eligible small business concerns located outside the disaster area, until
the Administrator determines that the average processing time for such applications is not more
than 15 days.

(iii) LOAN TERMS.A loan under this subparagraph shall be
made on the same terms as a loan under paragraph (2).

(D) DEFINITIONS.In this paragraph

(i) the term disaster area means the area for which the
applicable major disaster was declared;

(ii) the term disaster-related substantial economic injury
means economic harm to a business concern that results in the inability of the business concern
to

(I) meet its obligations as it matures;

(II) meet its ordinary and necessary operating expenses; or

(III) market, produce, or provide a product or service
ordinarily marketed, produced, or provided by the business concern because the business concern
relies on materials from the disaster area or sells or markets in the disaster area; and

(iii) the term eligible small business concern means a small
business concern

(I) that has suffered disaster-related substantial
economic injury as a result of the applicable major disaster; and

(II) (aa) for which not less than 25 percent of the
market share of that small business concern is from business transacted in the disaster area;
(Rev. 12)
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(bb) for which not less than 25 percent of an
input into a production process of that small business concern is from the disaster area; or

(cc) that relies on a provider located in the
disaster area for a service that is not readily available elsewhere.

[THE FOLLOWING PARAGRAPHS PRECEDING SUBSECTION 7(c)
APPLY TO THE ENTIRE SUBSECTION 7(b).]

No loan under this subsection, including renewals and extensions thereof, may be made
for a period or periods exceeding thirty years: Provided, That the Administrator may consent to
a suspension in the payment of principal and interest charges on, and to an extension in the
maturity of, the Federal share of any loan under this subsection for a period not to exceed five
years, if (A) the borrower under such loan is a homeowner or a small business concern, (B) the
loan was made to enable (i) such homeowner to repair or replace his home, or (ii) such concern
to repair or replace plant or equipment which was damaged or destroyed as the result of a
disaster meeting the requirements of clause (A) or (B) of paragraph (2) of this subsection, and
(C) the Administrator determines such action is necessary to avoid severe financial hardship:
Provided further, That the provisions of paragraph (1) of subsection (d) of this section shall not
be applicable to any such loan having a maturity in excess of twenty years. Notwithstanding the
provisions of any other law, the interest rate on the Administrations share of any loan made
under subsection (d), except as provided in subsection (d), shall not exceed the average annual
interest rate on all interest-bearing obligations of the United States then forming a part of the
public debt as computed at the end of the fiscal year next preceding the date of the loan and
adjusted to the nearest one-eighth of 1 per centum plus one-quarter of 1 per centum: Provided,
however, That the interest rate for loans made under paragraphs (1) and (2) hereof shall not
exceed the rate of interest which is in effect at the time of the occurrence of the disaster. In
agreements to participate in loans on a deferred basis under this subsection, such participation by
the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding
at the time of disbursement. Notwithstanding any other provision of law, the interest rate on the
Administrations share of any loan made pursuant to paragraph (1) of this subsection to repair or
replace a primary residence and/or replace or repair damaged or destroyed personal property, less
the amount of compensation by insurance or otherwise, with respect to a disaster occurring on or
after J uly 1, 1976, and prior to October 1, 1978, shall be: 1 per centum on the amount of such
loan not exceeding $10,000, and 3 per centum on the amount of such loan over $10,000 but not
exceeding $40,000. The interest rate on the Administrations share of the first $250,000 of all
other loans made pursuant to paragraph (1) of this subsection, with respect to a disaster occurring
on or after J uly 1, 1976, and prior to October 1, 1978, shall be 3 per centum. All repayments of
principal on the Administrations share of any loan made under the above provisions shall first
be applied to reduce the principal sum of such loan which bears interest at the lower rates
provided in this paragraph. The principal amount of any loan made pursuant to paragraph (1) in
connection with a disaster which occurs on or after April 1, l977, but prior to J anuary 1, 1978,
may be increased by such amount, but not more than $2,000, as the Administration determines to
be reasonable in light of the amount and nature of loss, damage, or injury sustained in order to
finance the installation of insulation in the property which was lost, damaged, or injured, if the
(Rev. 12)
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uninsured, damaged portion of the property is 10 per centum or more of the market value of the
property at the time of the disaster. Not later than J une 1, 1978, the Administration shall prepare
and transmit to the Select Committee on Small Business of the Senate, the Committee on Small
Business of the House of Representatives, and the Committees of the Senate and House of
Representatives having jurisdiction over measures relating to energy conservation, a report on its
activities under this paragraph, including therein an evaluation of the effect of such activities on
encouraging the installation of insulation in property which is repaired or replaced after a disaster
which is subject to this paragraph, and its recommendations with respect to the continuation,
modification, or termination of such activities.

In the administration of the disaster loan program under paragraphs (1) and (2) of
this subsection, in the case of property loss or damage or injury resulting from a major disaster as
determined by the President or a disaster as determined by the Administrator which occurs on or
after J anuary 1, 1971, and prior to J uly 1, 1973, the Small Business Administration, to the extent
such loss or damage or injury is not compensated for by insurance or otherwise

(A) may make any loan for repair, rehabilitation, or replacement of
property damaged or destroyed without regard to whether the required financial assistance is
otherwise available from private sources;

(B) may, in the case of the total destruction or substantial property
damage of a home or business concern, refinance any mortgage or other liens outstanding against
the destroyed or damaged property if such property is to be repaired, rehabilitated, or replaced,
except that (1) in the case of a business concern, the amount refinanced shall not exceed the
amount of the physical loss sustained, and (2) in the case of a home, the amount of each monthly
payment of principal and interest on the loan after refinancing under this clause shall be not less
than the amount of each such payment made prior to such refinancing;

(C) may, in the case of a loan made under clause (A) or a mortgage or
other lien refinanced under clause (B) in connection with the destruction of, or substantial
damage to, property owned and used as a residence by an individual who by reason of
retirement, disability, or other similar circumstances relies for support on survivor, disability, or
retirement benefits under a pension, insurance, or other program, consent to the suspension of the
payments of the principal of that loan, mortgage, or lien during the lifetime of that individual and
his spouse for so long as the Administration determines that making such payments would
constitute a substantial hardship;

(D) shall, notwithstanding the provisions of any other law and upon
presentation by the applicant of proof of loss or damage or injury and a bona fide estimate of cost
of repair, rehabilitation, or replacement, cancel the principal of any loan made to cover a loss or
damage or injury resulting from such disaster, except that

(i) with respect to a loan made in connection with a disaster
occurring on or after J anuary 1, 1971, but prior to J anuary 1, 1972, the total amount so canceled
shall not exceed $2,500, and the interest on the balance of the loan shall be at a rate of 3 per
centum per annum; and
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(ii) with respect to a loan made in connection with a disaster
occurring on or after J anuary 1, 1972, but prior to J uly 1, 1973, the total amount so canceled
shall not exceed $5,000, and the interest on the balance of the loan shall be at a rate of 1 per
centum per annum.

With respect to any loan referred to in clause (D) which is outstanding on the date of enactment
of this paragraph, the Administrator shall

(i) make such change in the interest rate on the balance of such
loan as is required under that clause effective as of such date of enactment; and

(ii) in applying the limitation set forth in that clause with
respect to the total amount of such loan which may be canceled, consider as part of the amount
so canceled any part of such loan which was previously canceled pursuant to section 231 of the
Disaster Relief Act of 1970.

Whoever wrongfully misapplies the proceeds of a loan obtained under this subsection
shall be civilly liable to the Administrator in an amount equal to one-and-one-half times the
original principal amount of the loan.

(E) A State grant made on or prior to J uly 1, 1979, shall not be
considered compensation for the purpose of applying the provisions of section 312(a) of the
Disaster Relief and Emergency Assistance Act to a disaster loan under paragraph (1) or (2) of
this subsection.

(c) PRIVATE DISASTER LOANS.

(1) DEFINITIONS.In this subsection

(A) the term disaster area means any area for which the President
declared a major disaster relating to which the Administrator declares eligibility for additional
disaster assistance under subsection (b)(9), during the period of that major disaster declaration;

(B) the term eligible individual means an individual who is eligible
for disaster assistance under subsection (b)(1) relating to a major disaster relating to which the
Administrator declares eligibility for additional disaster assistance under subsection (b)(9);

(C) the term eligible small business concern means a business
concern that is

(i) a small business concern, as defined under this Act; or

(ii) a small business concern, as defined in section 103 of the
Small Business Investment Act of 1958;

(Rev. 12)
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(D) the term preferred lender means a lender participating in the
Preferred Lender Program;

(E) the term Preferred Lender Program has the meaning given that
term in subsection (a)(2)(C)(ii); and

(F) the term qualified private lender means any privately-owned
bank or other lending institution that

(i) is not a preferred lender; and

(ii) the Administrator determines meets the criteria established
under paragraph (10).

(2) PROGRAM REQUIRED.The Administrator shall carry out a program,
to be known as the Private Disaster Assistance program, under which the Administration may
guarantee timely payment of principal and interest, as scheduled, on any loan made to an eligible
small business concern located in a disaster area and to an eligible individual.

(3) USE OF LOANS.A loan guaranteed by the Administrator under this
subsection may be used for any purpose authorized under subsection (b).

(4) ONLINE APPLICATIONS.

(A) ESTABLISHMENT.The Administrator may establish, directly
or through an agreement with another entity, an online application process for loans guaranteed

(B) OTHER FEDERAL ASSISTANCE.The Administrator may
coordinate with the head of any other appropriate Federal agency so that any application
submitted through an online application process established under this paragraph may be
considered for any other Federal assistance program for disaster relief.

(C) CONSULTATION.In establishing an online application process
under this paragraph, the Administrator shall consult with appropriate persons from the public
and private sectors, including private lenders.

(5) MAXIMUM AMOUNTS.

(A) GUARANTEE PERCENTAGE.The Administrator may
guarantee not more than 85 percent of a loan under this subsection.

(B) LOAN AMOUNT.The maximum amount of a loan guaranteed
under this subsection shall be $2,000,000.

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(6) TERMS AND CONDITIONS.A loan guaranteed under this subsection
shall be made under the same terms and conditions as a loan under subsection (b).

(7) LENDERS.

(A) IN GENERAL.A loan guaranteed under this subsection made
to

(i) a qualified individual may be made by a preferred lender;
and

(ii) a qualified small business concern may be made by a
qualified private lender or by a preferred lender that also makes loans to qualified individuals.

(B) COMPLIANCE.If the Administrator determines that a preferred
lender knowingly failed to comply with the underwriting standards for loans guaranteed under
this subsection or violated the terms of the standard operating procedure agreement between that
preferred lender and the Administration, the Administrator shall do 1 or more of the following:

(i) Exclude the preferred lender from participating in the
program under this subsection.

(ii) Exclude the preferred lender from participating in the
Preferred Lender Program for a period of not more than 5 years.

(8) FEES.

(A) IN GENERAL.The Administrator may not collect a guarantee
fee under this subsection.

(B) ORIGINATION FEE.The Administrator may pay a qualified
private lender or preferred lender an origination fee for a loan guaranteed under this subsection
in an amount agreed upon in advance between the qualified private lender or preferred lender
and the Administrator.

(9) DOCUMENTATION.A qualified private lender or preferred lender
may use its own loan documentation for a loan guaranteed by the Administrator under this
subsection, to the extent authorized by the Administrator. The ability of a lender to use its own
loan documentation for a loan guaranteed under this subsection shall not be considered part of
the criteria for becoming a qualified private lender under the regulations promulgated under
paragraph (10).

(10) IMPLEMENTATION REGULATIONS.

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(A) IN GENERAL.Not later than 1 year after the date of enactment
of the Small Business Disaster Response and Loan Improvements Act of 2008, the Administrator
shall issue final regulations establishing permanent criteria for qualified private lenders.

(B) REPORT TO CONGRESS.Not later than 6 months after the
date of enactment of the Small Business Disaster Response and Loan Improvements Act of 2008,
the Administrator shall submit a report on the progress of the regulations required by
subparagraph (A) to the Committee on Small Business and Entrepreneurship of the Senate and
the Committee on Small Business of the House of Representatives.

(11) AUTHORIZATION OF APPROPRIATIONS.

(A) IN GENERAL.Amounts necessary to carry out this subsection
shall be made available from amounts appropriated to the Administration to carry out subsection
(b).

(B) AUTHORITY TO REDUCE INTEREST RATES AND OTHER
TERMS AND CONDITIONS.Funds appropriated to the Administration to carry out this
subsection, may be used by the Administrator to meet the loan terms and conditions specified in
paragraph (6).

(12) PURCHASE OF LOANS.The Administrator may enter into an
agreement with a qualified private lender or preferred lender to purchase any loan guaranteed

(d) (1) The Administration may further extend the maturity of or renew any loan
made pursuant to this section, or any loan transferred to the Administration pursuant to
Reorganization Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 1957, for
additional periods not to exceed ten years beyond the period stated therein, if such extension or
renewal will aid in the orderly liquidation of such loan.

(2) During any period in which principal and interest charges are suspended
on the Federal share of any loan, as provided in subsection (b), the Administrator shall, upon the
request of any person, firm, or corporation having a participation in such loan, purchase such
participation, or assume the obligation of the borrower, for the balance of such period, to make
principal and interest payments on the non-Federal share of such loan: Provided, That no such
payments shall be made by the Administrator in behalf of any borrower unless (i) the
Administrator determines that such action is necessary in order to avoid a default, and (ii) the
borrower agrees to make payments to the Administration in an aggregate amount equal to the
amount paid in its behalf by the Administrator, in such manner and at such times (during or after
the term of the loan) as the Administrator shall determine having due regard to the purposes
sought to be achieved by this paragraph.

(3) With respect to a disaster occurring on or after October 1, 1978, and prior
to the effective date of this Act, on the Administration's share of loans made pursuant to
paragraph (1) of subsection (b)
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(C) if the loan proceeds are to repair or replace property damaged or
destroyed and if the applicant is a business concern which is able to obtain sufficient credit
elsewhere, the interest rate shall not exceed the current average market yield on outstanding
marketable obligations of the United States with remaining periods to maturity comparable to the
average maturities of such loans and adjusted to the nearest one-eighth of 1 percent, and an
additional amount as determined by the Administration, but not to exceed 1 percent: Provided,
That three years after such loan is fully disbursed and every two years thereafter for the term of
the loan, if the Administration determines that the borrower is able to obtain a loan from
non-Federal sources at reasonable rates and terms for loans of similar purposes and periods of
time, the borrower shall, upon request by the Administration, apply for and accept such a loan in
sufficient amount to repay the Administration: Provided further, That no loan under subsection
(b)(1) shall be made, either directly or in cooperation with banks or other lending institutions
through agreements to participate on an immediate or deferred basis, if the total amount
outstanding and committed to the borrower under such subsection would exceed $500,000 for
each disaster, unless an applicant constitutes a major source of employment in an area suffering a
disaster, in which case the Administration, in its discretion, may waive the $500,000 limitation.

(4) Notwithstanding the provisions of any other law, the interest rate on the
Federal share of any loan made under subsection (b) shall be

(A) in the case of a homeowner unable to secure credit elsewhere, the
rate prescribed by the Administration but not more than one-half the rate determined by the
Secretary of the Treasury taking into consideration the current average market yield on
outstanding marketable obligations of the United States with remaining periods to maturity
comparable to the average maturities of such loans plus an additional charge of not to exceed 1
per centum per annum as determined by the Administrator, and adjusted to the nearest
one-eighth of 1 per centum but not to exceed 8 per centum per annum;

(B) in the case of a homeowner able to secure credit elsewhere, the rate
prescribed by the Administration but not more than the rate determined by the Secretary of the
Treasury taking into consideration the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the average
maturities of such loans plus an additional charge of not to exceed 1 per centum per annum as
determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum;

(C) in the case of a business concern unable to obtain credit elsewhere,
not to exceed 8 per centum per annum;

(D) in the case of a business concern able to obtain credit elsewhere,
the rate prescribed by the Administration but not in excess of the rate prevailing in private
market for similar loans and not more than the rate prescribed by the Administration as the
maximum interest rate for deferred participation (guaranteed) loans under section 7(a) of this
Act. Loans under this subparagraph shall be limited to a maximum term of three years.

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(5) Notwithstanding the provisions of any other law, the interest rate on the
Federal share of any loan made under subsection (b)(1) and (b)(2) on account of a disaster
commencing on or after October 1, 1982, shall be

(A) in the case of a homeowner unable to secure credit elsewhere, the
rate prescribed by the Administration but not more than one-half the rate determined by the
Secretary of the Treasury taking into consideration the current average market yield on
outstanding marketable obligations of the United States with remaining periods to maturity
comparable to the average maturities of such loan plus an additional charge of not to exceed 1
per centum per annum as determined by the Administrator, and adjusted to the nearest
one-eighth of 1 per centum, but not to exceed 4 per centum per annum;

(B) in the case of a homeowner able to secure credit elsewhere, the rate
prescribed by the Administration but not more than the rate determined by the Secretary of the
Treasury taking into consideration the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the average
maturities of such loans plus an additional charge of not to exceed 1 per centum per annum as
determined by the Administrator; and adjusted to the nearest one-eighth of 1 per centum, but not
to exceed 8 per centum per annum;

(C) in the case of a business, private nonprofit organization, or other
concern, including agricultural cooperatives, unable to obtain credit elsewhere, not to exceed 4
per centum per annum;

(D) in the case of a business concern able to obtain credit elsewhere,
the rate prescribed by the Administration but not in excess of the lowest of (i) the rate prevailing
in the private market for similar loans, (ii) the rate prescribed by the Administration as the
maximum interest rate for deferred participation (guaranteed) loans under section 7(a) of this
Act, or (iii) 8 per centum per annum. Loans under this subparagraph shall be limited to a
maximum term of three years.

(6) Notwithstanding the provisions of any other law, such loans, subject to the
reductions required by subparagraphs (A) and (B) of paragraph 7(b)(1), shall be in amounts
equal to 100 per centum of loss. The interest rates for loans made under paragraphs 7(b)(1) and
(2), as determined pursuant to paragraph (5), shall be the rate of interest which is in effect on the
date of the disaster commenced: Provided, That no loan under paragraphs 7(b)(1) and (2) shall
be made, either directly or in cooperation with banks or other lending institutions through
agreements to participate on an immediate or deferred (guaranteed) basis, if the total amount
outstanding and committed to the borrower under subsection 7(b) would exceed $500,000 for
each disaster unless an applicant constitutes a major source of employment in an area suffering a
disaster, in which case the Administration, in its discretion, may waive the $500,000 limitation.
Employees of concerns sharing a common business premises shall be aggregated in determining
major source of employment status for nonprofit applicants owning such premises. Provided
further, That the Administration, subject to the reductions required by subparagraphs (A) and (B)
of paragraph 7(b)(1), shall not reduce the amount of eligibility for any homeowner on account of
loss of real estate to less than $100,000 for each disaster nor for any homeowner or lessee on
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account of loss of personal property to less than $20,000 for each disaster, such sums being in
addition to any eligible refinancing: Provided further, That the Administration shall not require
collateral for loans of $14,000 or less (or such higher amount as the Administrator determines
appropriate in the event of a major disaster) which are made under paragraph (1) of subsection
(b).

With respect to any loan which is outstanding on the date of enactment of this paragraph
and which was made on account of a disaster commencing on or after October 1, 1982, the
Administrator shall make such change in the interest rate on the balance of such loan as is
required herein effective as of the date of enactment.

(7) The Administration shall not withhold disaster assistance pursuant to this
paragraph to nurseries who are victims of drought disasters. As used in section 7(b)(2) the term
an area affected by a disaster includes any county, or county contiguous thereto, determined to
be a disaster by the President, the Secretary of Agriculture or the Administrator of the Small
Business Administration.

(e) The Administration shall not fund any Small Business Development Center or
any variation thereof, except as authorized in section 21 of this Act.

(f) ADDITIONAL REQUIREMENTS FOR 7(b) LOANS.

(1) INCREASED DEFERMENT AUTHORIZED.

(A) IN GENERAL.In making loans under subsection (b), the
Administrator may provide, to the person receiving the loan, an option to defer repayment on the
loan.

(B) PERIOD.The period of a deferment under subparagraph (A)
may not exceed 4 years.

(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) LOANS.In making
loans under subsection (b), the Administrator shall not require the borrower to pay any non-
amortized amount for the first five years after repayment begins.

(h) (1) The Administration also is empowered, where other financial assistance is
not available on reasonable terms, to make such loans (either directly or in cooperation with
banks or other lending institutions through agreements to participate on an immediate or deferred
basis) as the Administration may determine to be necessary or appropriate

(A) to assist any public or private organization

(i) which is organized under the laws of the United States or of
any State, operated in the interest of handicapped individuals, the net income of which does not
inure in whole or in part to the benefit of any shareholder or other individual;

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(ii) which complies with any applicable occupational health
and safety standard prescribed by the Secretary of Labor; and

(iii) which, in the production of commodities and in the
provision of services during any fiscal year in which it receives financial assistance under this
subsection, employs handicapped individuals for not less than 75 per centum of the man-hours
required for the production or provision of the commodities or services; or

(B) to assist any handicapped individual in establishing, acquiring, or
operating a small business concern.

(2) The Administration's share of any loan made under this subsection shall
not exceed $350,000, nor may any such loan be made if the total amount outstanding and
committed (by participation or otherwise) to the borrower from the business loan and investment
fund established by section 4(c)(1)(B) of this Act would exceed $350,000. In agreements to
participate in loans on a deferred basis under this subsection, the Administrations participation
may total 100 per centum of the balance of the loan at the time of disbursement. The
Administrations share of any loan made under this subsection shall bear interest at the rate of 3
per centum per annum. The maximum term of any such loan, including extensions and renewals
thereof, may not exceed fifteen years. All loans made under this subsection shall be of such
sound value or so secured as reasonably to assure repayment: Provided, however, That any
reasonable doubt shall be resolved in favor of the applicant.

(3) For purposes of this subsection, the term handicapped individual means
a person who has a physical, mental, or emotional impairment, defect, ailment, disease, or
disability of a permanent nature which in any way limits the selection of any type of employment
for which the person would otherwise be qualified or qualifiable.

(i) (1) The Administration also is empowered to make, participate (on an
immediate basis) in, or guarantee loans, repayable in not more than fifteen years, to any small
business concern, or to any qualified person seeking to establish such a concern, when it
determines that such loans will further the policies established in section 2(b) of this Act, with
particular emphasis on the preservation or establishment of small business concerns located in
urban or rural areas with high proportions of unemployed or low-income individuals, or owned
by low-income individuals: Provided, however, That no such loans shall be made, participated
in, or guaranteed if the total of such Federal assistance to a single borrower outstanding at any
one time would exceed $100,000. The Administration may defer payments on the principal of
such loans for a grace period and use such other methods as it deems necessary and appropriate
to assure the successful establishment and operation of such concern. The Administration may,
in its discretion, as a condition of such financial assistance, require that the borrower take steps
to improve his management skills by participating in a management training program approved
by the Administration: Provided, however, That any management training program so approved
must be of sufficient scope and duration to provide reasonable opportunity for the individuals
served to develop entrepreneurial and managerial self-sufficiency.

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(2) The Administration shall encourage, as far as possible, the participation of
the private business community in the program of assistance to such concerns, and shall seek to
stimulate new private lending activities to such concerns through the use of the loan guarantees,
participations in loans, and pooling arrangements authorized by this subsection.

(3) To insure an equitable distribution between urban and rural areas for loans
between $3,500 and $100,000 made under this subsection the Administration is authorized to use
the agencies and agreements and delegations developed under title III of the Economic
Opportunity Act of 1964, as amended, as it shall determine necessary.

(4) The Administration shall provide for the continuing evaluation of
programs under this subsection, including full information on the location, income
characteristics, and types of businesses and individuals assisted, and on new private lending
activity stimulated, and the results of such evaluation together with recommendations shall be
included in the report required by section 10(a) of this Act.

(5) Loans made pursuant to this subsection (including immediate participation
in and guarantees of such loans) shall have such terms and conditions as the Administration shall
determine, subject to the following limitations

(A) there is reasonable assurance of repayment of the loan;

(B) the financial assistance is not otherwise available on reasonable
terms from private sources or other Federal, State, or local programs;

(C) the amount of the loan, together with other funds available, is
adequate to assure completion of the project or achievement of the purposes for which the loan is
made;

(D) the loan bears interest at a rate not less than (i) a rate determined
by the Secretary of the Treasury, taking into consideration the average market yield on
outstanding Treasury obligations of comparable maturity, plus (ii) such additional charge, if any,
toward covering other costs of the program as the Administration may determine to be consistent
with its purposes: Provided, however, That the rate of interest charged on loans made in
redevelopment areas designated under the Public Works and Economic Development Act of
1965 (42 U.S.C. 3108 et seq.) shall not exceed the rate currently applicable to new loans made
under section 201 of that Act (42 U.S.C. 3141); and

(E) fees not in excess of amounts necessary to cover administrative
expenses and probable losses may be required on loan guarantees.

(6) The Administration shall take such steps as may be necessary to insure
that, in any fiscal year, at least 50 per centum of the amounts loaned or guaranteed pursuant to
this subsection are allotted to small business concerns located in urban areas identified by the
Administration as having high concentrations of unemployed or low-income individuals or to
small business concerns owned by low-income individuals. The Administration shall define the
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meaning of low-income as it applies to owners of small business concerns eligible to be assisted

(7) No financial assistance shall be extended pursuant to this subsection where
the Administration determines that the assistance will be used in relocating establishments from
one area to another if such relocation would result in an increase in unemployment in the area of
original location.

(j) (1) The Administration shall provide financial assistance to public or private
organizations to pay all or part of the cost of projects designed to provide technical or
management assistance to individuals or enterprises eligible for assistance under sections 7(i),
7(j)(10), and 8(a) of this Act, with special attention to small businesses located in areas of high
concentration of unemployed or low-income individuals, to small businesses eligible to receive
contracts pursuant to section 8(a) of this Act.

(2) Financial assistance under this subsection may be provided for projects,
including, but not limited to

(A) planning and research, including feasibility studies and market
research;

(B) the identification and development of new business opportunities;

(C) The furnishing of centralized services with regard to public
services and Federal Government programs including programs authorized under sections 7(i),
7(j)(10), and 8(a) of this Act;

(D) the establishment and strengthening of business service agencies,
including trade associations and cooperatives; and

(E) the furnishing of business counseling, management training, and
legal and other related services, with special emphasis on the development of management
training programs using the resources of the business community, including the development of
management training opportunities in existing business, and with emphasis in all cases upon
providing management training of sufficient scope and duration to develop entrepreneurial and
managerial self-sufficiency on the part of the individuals served.

(3) The Administration shall encourage the placement of subcontracts by
businesses with small business concerns located in areas of high concentration of unemployed or
low-income individuals, and with small businesses eligible to receive contracts pursuant to
section 8(a) of this Act. The Administration may provide incentives and assistance to such
businesses that will aid in the training and upgrading of potential subcontractors or other small
business concerns eligible for assistance under sections 7(i), 7(j), and 8(a) of this Act.

(A) [Repealed].

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(B) [Repealed].

(4) The Administration shall give preference to projects which promote the
ownership, participation in ownership, or management of small businesses owned by low-
income individuals and small businesses eligible to receive contracts pursuant to section 8(a) of
this Act.

(5) The financial assistance authorized for projects under this subsection
includes assistance advanced by grant, agreement, or contract.

(6) The Administration is authorized to make payments under grants and
contracts entered into under this subsection in lump sum or installments, and in advance or by
way of reimbursement, and in the case of grants, with necessary adjustments on account of
overpayments or underpayments.

(7) To the extent feasible, services under this subsection shall be provided in a
location which is easily accessible to the individuals and small business concerns served.

(8) [Repealed].

(9) The Administration shall take such steps as may be necessary and
appropriate, in coordination and cooperation with the heads of other Federal departments and
agencies, to insure that contracts, subcontracts, and deposits made by the Federal Government or
with programs aided with Federal funds are placed in such way as to further the purposes of
sections 7(i), 7(j), and 8(a) of this Act.

(10) There is established within the Administration a small business and capital
ownership development program (hereinafter referred to as the Program) which shall provide
assistance exclusively for small business concerns eligible to receive contracts pursuant to
section 8(a) of this Act. The program, and all other services and activities authorized under
section 7(j) and 8(a) of this Act, shall be managed by the Associate Administrator for Minority
Small Business and Capital Ownership Development under the supervision of, and responsible
to, the Administrator.

(A) The program shall

(i) assist small business concerns participating in the Program
(either through public or private organizations) to develop and maintain comprehensive business
plans which set forth the Program Participant's specific business targets, objectives, and goals
developed and maintained in conformity with subparagraph (D).

(ii) provide for such other nonfinancial services as deemed
necessary for the establishment, preservation, and growth of small business concerns
participating in the Program, including but not limited to (I) loan packaging, (II) financial
counseling, (III) accounting and bookkeeping assistance, (IV) marketing assistance, and (V)
management assistance;
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(iii) assist small business concerns participating in the Program
to obtain equity and debt financing;

(iv) establish regular performance monitoring and reporting
systems for small business concerns participating in the Program to assure compliance with their
business plans;

(v) analyze and report the causes of success and failure of
small business concerns participating in Program; and

(vi) provide assistance necessary to help small business
concerns participating in the Program to procure surety bonds, with such assistance including,
but not limited to (I) the preparation of application forms required to receive a surety bond, (II)
special management and technical assistance designed to meet the specific needs of small
business concerns participating in the Program and which have received or are applying to
receive a surety bond, and (III) preparation of all forms necessary to receive a surety bond
guarantee from the Administration pursuant to title IV, part B of the Small Business Investment
Act of l958.

(B) Small business concerns eligible to receive contracts pursuant to
section 8(a) of this Act shall participate in the Program.

(C) (i) A small business concern participating in any program or
activity conducted under the authority of this paragraph or eligible for the award of contracts
pursuant to section 8(a) on September 1, 1988, shall be permitted continued participation and
eligibility in such program or activity for a period of time which is the greater of

(I) 9 years less the number of years since the award of
its first contract pursuant to section 8(a); or

(II) its original fixed program participation term (plus
any extension thereof) assigned prior to the effective date of this paragraph plus eighteen
months.

(ii) Nothing contained in this subparagraph shall be deemed to
prevent the Administration from instituting a termination or graduation pursuant to subparagraph
(F) or (H) for issues unrelated to the expiration of any time period limitation.

(D) (i) Promptly after certification under paragraph (11) a Program
Participant shall submit a business plan (hereinafter referred to as the plan) as described in
clause (ii) of this subparagraph for review by the Business Opportunity Specialist assigned to
assist such Program Participant. The plan may be a revision of a preliminary business plan
submitted by the Program Participant or required by the Administration as a part of the
application for certification under this section and shall be designed to result in the Program
Participant eliminating the conditions or circumstances upon which the Administration
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determined eligibility pursuant to section 8(a)(6). Such plan, and subsequent modifications
submitted under clause (iii) of this subparagraph, shall be approved by the business opportunity
specialist prior to the Program Participant being eligible for award of a contract pursuant to
section 8(a).

(ii) The plans submitted under this subparagraph shall include
the following:

(I) An analysis of market potential, competitive
environment, and other business analyses estimating the Program Participant's prospects for
profitable operations during the term of program participation and after graduation.

(II) An analysis of the Program Participant's strengths
and weaknesses with particular attention to correcting any financial, managerial, technical, or
personnel conditions which are likely to impede the small business concern from receiving
contracts other than those awarded under section 8(a).

(III) Specific targets, objectives, and goals, for the
business development of the Program Participant during the next and succeeding years utilizing
the results of the analyses conducted pursuant to subclauses (I) and (II).

(IV) A transition management plan outlining specific
steps to assure profitable business operations after graduation (to be incorporated into the
Program Participant's plan during the first year of the transitional stage of Program participation.

(V) Estimates of contract awards pursuant to section
8(a) and from other sources, which the Program Participant will require to meet the specific
targets, objectives, and goals for the years covered by its plan. The estimates established shall be
consistent with the provisions of subparagraph (I) and section 8(a).

(iii) Each Program Participant shall annually review its
currently approved plan with its Business Opportunity Specialist and modify such plan as may be
appropriate. Any modified plan shall be submitted to the Administration for approval. The
currently approved plan shall be considered valid until such time as a modified plan is approved
by the Business Opportunity Specialist. Annual reviews pertaining to years in the transitional
stage of program participation shall require, as appropriate, a written verification that such
Program Participant has complied with the requirements of subparagraph (I) relating to attaining
business activity from sources other that contracts awarded pursuant to section 8(a).

(iv) Each Program Participant shall annually forecast its needs
for contract awards under section 8(a) for the next program year and the succeeding program
year during the review of its business plan, conducted pursuant to clause (iii). Such forecast
shall be known as the section 8(a) contract support level and shall be included in the Program
Participant's business plan. Such forecast shall include

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(I) the aggregate dollar value of contract support to be
sought on a noncompetitive basis under section 8(a), reflecting compliance with the requirements
of subparagraph (I) relating to attaining business activity from sources other than contracts
awarded pursuant to section 8(a),

(II) the types of contract opportunities being sought,
identified by Standard Industrial Classification (SIC) Code or otherwise,

(III) an estimate of the dollar value of contract support to
be sought on a competitive basis, and

(IV) such other information as may be requested by the
Business Opportunity Specialist to provide effective business development assistance to the
Program Participant.

(E) A small business concern participating in the program conducted
under the authority of this paragraph and eligible for the award of contracts pursuant to section
8(a) shall be denied all such assistance if such concern

(i) voluntarily elects not to continue participation;

(ii) completes the period of Program participation as prescribed
by paragraph (15);

(iii) is terminated pursuant to a termination proceeding
conducted in accordance with section 8(a)(9); or

(iv) is graduated pursuant to a graduation proceeding conducted
in accordance with section 8(a)(9).

(F) For purposes of this section and section 8(a), the term terminated
and the term termination means the total denial or suspension of assistance under this
paragraph or under section 8(a) prior to the graduation of the participating small business
concern or prior to the expiration of the maximum program participation term. An action for
termination shall be based upon good cause, including

(i) the failure by such concern to maintain its eligibility for
Program participation;

(ii) the failure of the concern to engage in business practices
that will promote its competitiveness within a reasonable period of time as evidenced by, among
other indicators, a pattern of unjustified delinquent performance or terminations for default with
respect to contracts awarded under the authority of section 8(a);

(iii) a demonstrated pattern of failing to make required
submissions or responses to the Administration in a timely manner;
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(iv) the willful violation of any rule or regulation of the
Administration pertaining to material issues;

(v) the debarment of the concern or its disadvantaged owners
by any agency pursuant to subpart 9.4 of title 48, Code of Federal Regulations (or any successor
regulation); or

(vi) the conviction of the disadvantaged owner or an officer of
the concern for any offense indicating a lack of business integrity including any conviction for
embezzlement, theft, forgery, bribery, falsification or violation of section 16. For purposes of
this clause, no termination action shall be taken with respect to a disadvantaged owner solely
because of the conviction of an officer of the concern (who is other than a disadvantaged owner)
unless such owner conspired with, abetted, or otherwise knowingly acquiesced in the activity or
omission that was the basis of such officer's conviction.

(G) The Director of the Division may initiate a termination proceeding
by recommending such action to the Associate Administrator for Minority Small Business and
Capital Ownership Development. Whenever the Associate Administrator, or a designee of such
officer, determines such termination is appropriate, within 15 days after making such a
determination the Program Participant shall be provided a written notice of intent to terminate,
specifying the reasons for such action. No Program Participant shall be terminated from the
Program pursuant to subparagraph (F) without first being afforded an opportunity for a hearing
in accordance with section 8(a)(9).

(H) For the purposes of sections 7(j) and 8(a) the term graduated or
graduation means that the Program Participant is recognized as successfully completing the
program by substantially achieving the targets, objectives, and goals contained in the concern's
business plan thereby demonstrating its ability to compete in the marketplace without assistance
under this section or section 8(a).

(I) (i) During the developmental stage of its participation in the
Program, a Program Participant shall take all reasonable efforts within its control to attain the
targets contained in its business plan for contracts awarded other than pursuant to section 8(a)
(hereinafter referred to as business activity targets). Such efforts shall be made a part of the
business plan and shall be sufficient in scope and duration to satisfy the Administration that the
Program Participant will engage [sic] a reasonable marketing strategy that will maximize its
potential to achieve its business activity targets.

(ii) During the transitional stage of the Program a Program
Participant shall be subject to regulations regarding business activity targets that are promulgated
by the Administration pursuant to clause (iii).

(iii) The regulations referred to in clause (ii) shall:

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(I) establish business activity targets applicable to
Program Participants during the fifth year and each succeeding year of Program Participation;
such targets, for such period of time, shall reflect a reasonably consistent increase in contracts
awarded other than pursuant to section 8(a), expressed as a percentage of total sales; when
promulgating business activity targets the Administration may establish modified targets for
Program Participants that have participated in the Program for a period of longer than four years
on the effective date of this subparagraph;

(II) require a Program Participant to attain its business
activity targets;

(III) provide that, before the receipt of any contract to be
awarded pursuant to section 8(a), the Program Participant (if it is in the transitional stage) must
certify that it has complied with the regulations promulgated pursuant to subclause (II), or that it
is in compliance with such remedial measures as may have been ordered pursuant to regulations
issued under subclause (V);

(IV) require the Administration to review each Program
Participant's performance regarding attainment of business activity targets during periodic
reviews of such Participant's business plan; and

(V) authorize the Administration to take appropriate
remedial measures with respect to a Program Participant that has failed to attain a required
business activity target for the purpose of reducing such Participant's dependence on contracts
awarded pursuant to section 8(a); such remedial actions may include, but are not limited to
assisting the Program Participant to expand the dollar volume of its competitive business activity
or limiting the dollar volume of contracts awarded to the Program Participant pursuant to section
8(a); except for actions that would constitute a termination, remedial measures taken pursuant to
this subclause shall not be reviewable pursuant to section 8(a)(9).

(J ) (i) The Administration shall conduct an evaluation of a
Program Participant's eligibility for continued participation in the Program whenever it receives
specific and credible information alleging that such Program Participant no longer meets the
requirements for Program eligibility. Upon making a finding that a Program Participant is no
longer eligible, the Administration shall initiate a termination proceeding in accordance with
subparagraph (F). A Program Participant's eligibility for award of any contract under the
authority of section 8(a) may be suspended pursuant to subpart 9.4 of title 48, Code of Federal
Regulations (or any successor regulation).

(ii) (I) Except as authorized by subclause (II) or (III), no
award shall be made pursuant to section 8(a) to other than a small business concern.

(II) In determining the size of a small business concern
owned by a socially and economically disadvantaged Indian tribe (or a wholly owned business
entity of such tribe), each firm's size shall be independently determined without regard to its
affiliation with the tribe, any entity of the tribal government, or any other business enterprise
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owned by the tribe, unless the Administrator determines that one or more such tribally owned
business concerns have obtained, or are likely to obtain, a substantial unfair competitive
advantage within an industry category.

(III) Any joint venture established under the authority of
section 602(b) of Public Law 100-656, the Business Opportunity Development Reform Act of
1988, shall be eligible for award of a contract pursuant to section 8(a).

(11) (A) The Associate Administrator for Minority Small Business and
Capital Ownership Development shall be responsible for coordinating and formulating policies
relating to Federal Assistance to small business concerns eligible for assistance under section 7(i)
of this Act and small business concerns eligible to receive contracts pursuant to section 8(a) of
this Act.

(B) (i) Except as provided in clause (iii), no individual who was
determined pursuant to section 8(a) to be socially and economically disadvantaged before the
effective date of this subparagraph shall be permitted to assert such disadvantage with respect to
any other concern making application for certification after such effective date.

(ii) Except as provided in clause (iii), any individual upon
whom eligibility is based pursuant to section 8(a)(4) shall be permitted to assert such eligibility
for only one small business concern.

(iii) A socially and economically disadvantaged Indian tribe
may own more than one small business concern eligible for assistance pursuant to section
7(j)(10) and section 8(a) if

(I) the Indian tribe does not own another firm in the
same industry which has been determined to be eligible to receive contracts under this program,
and

(II) the individuals responsible for the management and
daily operations of the concern do not manage more than two Program Participants.

(C) No concern, previously eligible for the award of contracts pursuant
to section 8(a), shall be subsequently recertified for program participation if its prior
participation in the program was concluded for any of the reasons described in paragraph
(10)(E).

(D) A concern eligible for the award of contracts pursuant to this
subsection shall remain eligible for such contracts if there is a transfer of ownership and control
(as defined pursuant to section 8(a)(4)) to individuals who are determined to be socially and
economically disadvantaged pursuant to section 8(a). In the event of such a transfer, the
concern, if not terminated or graduated, shall be eligible for a period of continued participation in
the program not to exceed the time limitations prescribed in paragraph (15).

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(E) There is established a Division of Program Certification and
Eligibility (hereinafter referred to in this paragraph as the Division) that shall be made part of
the Office of Minority Small Business and Capital Ownership Development. The Division shall
be headed by a Director who shall report directly to the Associate Administrator for Minority
Small Business and Capital Ownership Development. The Division shall establish field offices
within such regional offices of the Administration as may be necessary to perform efficiently its
functions and responsibilities.

(F) Subject to the provisions of section 8(a)(9), the functions and
responsibility of the Division are to

(i) receive, review and evaluate applications for certification
pursuant to paragraphs (4), (5), (6) and (7) of section 8(a);

(ii) advise each program applicant within 15 days after the
receipt of an application as to whether such application is complete and suitable for evaluation
and, if not, what matters must be rectified;

(iii) render recommendations on such applications to the
Associate Administrator for Minority Small Business and Capital Ownership Development;

(iv) review and evaluate financial statements and other
submissions from concerns participating in the program established by paragraph (10) to
ascertain continued eligibility to receive subcontracts pursuant to section 8(a);

(v) make a request for the initiation of termination or
graduation proceedings, as appropriate, to the Associate Administrator for Minority Small
Business and Capital Ownership Development;

(vi) make recommendations to the Associate Administrator for
Minority Small Business and Capital Ownership Development concerning protests from
applicants that have been denied program admission;

(vii) decide protests regarding the status of a concern as a
disadvantaged concern for purposes of any program or activity conducted under the authority of
subsection (d) of section 8, or any other provision of Federal law that references such subsection
for a definition of program eligibility; and

(viii) implement such policy directives as may be issued by the
Associate Administrator for Minority Small Business and Capital Ownership Development
pursuant to subparagraph (I) regarding, among other things, the geographic distribution of
concerns to be admitted to the program and the industrial make-up of such concerns.

(G) An applicant shall not be denied admission into the program
established by paragraph (10) due solely to a determination by the Division that specific contract
opportunities are unavailable to assist in the development of such concern unless
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(i) the Government has not previously procured and is unlikely
to procure the types of products or services offered by the concern; or

(ii) the purchases of such products or services by the Federal
Government will not be in quantities sufficient to support the developmental needs of the
applicant and other Program Participants providing the same or similar items or services.

(H) Not later than 90 days after receipt of a completed application for
Program certification, the Associate Administrator for Minority Small Business and Capital
Ownership Development shall certify a small business concern as a Program Participant or shall
deny such application.

(I) Thirty days before the conclusion of each fiscal year, the Director
of the Division shall review all concerns that have been admitted into the Program during the
preceding 12-month period. The review shall ascertain the number of entrants, their geographic
distribution and industrial classification. The Director shall also estimate the expected growth of
the Program during the next fiscal year and the number of additional Business Opportunity
Specialists, if any, that will be needed to meet the anticipated demand for the Program. The
findings and conclusions of the Director shall be reported to the Associate Administrator for
Minority Small Business and Capital Ownership Development by September 30 of each year.
Based on such report and such additional data as may be relevant, the Associate Administrator
shall, by October 31 of each year, issue policy and program directives applicable to such fiscal
year that

(i) establish priorities for the solicitation of program
applications from underrepresented regions and industry categories;

(ii) assign staffing levels and allocate other program resources
as necessary to meet program needs; and

(iii) establish priorities in the processing and admission of new
Program Participants as may be necessary to achieve an equitable geographic distribution of
concerns and a distribution of concerns across all industry categories in proportions needed to
increase significantly contract awards to small business concerns owned and controlled by
socially and economically disadvantaged individuals. When considering such increase the
Administration shall give due consideration to those industrial categories where Federal
purchases have been substantial but where the participation rate of such concerns has been
limited.

(12) (A) The Administration shall segment the Capital Ownership
Development Program into two stages: a developmental stage; and a transitional stage.

(B) The developmental stage of program participation shall be
designed to assist the concern in its effort to overcome its economic disadvantage by providing
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such assistance as may be necessary and appropriate to access its markets and to strengthen its
financial and managerial skills.

(C) The transitional stage of program participation shall be designed to
overcome, insofar as practicable, the remaining elements of economic disadvantage and to
prepare such concern for graduation from the program.

(13) A Program Participant, if otherwise eligible, shall be qualified to receive
the following assistance during the stages of program participation specified in paragraph 12:

(A) Contract support pursuant to section 8(a).

(B) Financial assistance pursuant to section 7(a)(20).

(C) A maximum of two exemptions from the requirements of section
1(a) of the Act entitled An Act providing conditions for the purchase of supplies and the making
of contracts by the United States, and for other purposes, approved J une 30, 1936 (49 Stat.
2036), which exemptions shall apply only to contracts awarded pursuant to section 8(a) and shall
only be used to allow for contingent agreements by a small business concern to acquire the
machinery, equipment, facilities, or labor needed to perform such contracts. No exemption shall
be made pursuant to this subparagraph if the contract to which it pertains has an anticipated value
in excess of $10,000,000. This subparagraph shall cease to be effective on October 1, 1992.

(D) A maximum of five exemptions from the requirements of the Act
entitled An Act requiring contracts for the construction, alteration and repair of any public
building or public work of the United States to be accompanied by a performance bond
protecting the United States and by an additional bond for the protection of persons furnishing
material and labor for the construction, alteration, or repair of said public buildings or public
works, approved August 24, 1935 (49 Stat. 793), which exemptions shall apply only to
contracts awarded pursuant to section 8(a), except that, such exemptions may be granted under
this subparagraph only if

(i) the Administration finds that such concern is unable to
obtain the requisite bond or bonds from a surety and that no surety is willing to issue a bond
subject to the guarantee provision of title IV of the Small Business Investment Act of 1958 (15
U.S.C. 692 et seq.);

(ii) the Administration and the agency providing the
contracting opportunity have provided for the protection of persons furnishing materials or labor
to the Program Participant by arranging for the direct disbursement of funds due to such persons
by the procuring agency or through any bank the deposits of which are insured by the Federal
Deposit Insurance Corporation; and

(iii) the contract to which it pertains does not exceed
$3,000,000 in amount. This subparagraph shall cease to be effective on October 1, 1994.

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(E) Financial assistance whereby the Administration may purchase in
whole or in part, and on behalf of such concerns, skills training or upgrading for employees or
potential employees of such concerns. Such assistance may be made without regard to section
18(a). Assistance may be made by direct payment to the training provider or by reimbursing the
Program Participant or the Participant's employee, if such reimbursement is found to be
reasonable and appropriate. For purposes of this subparagraph the term training provider shall
mean an institution of higher education, a community or vocational college, or an institution
eligible to provide skills training or upgrading under the J ob Training Partnership Act or title I of
the Workforce Investment Act of 1998. The Administration shall, in consultation with the
Secretary of Labor, promulgate rules and regulations to implement this subparagraph that
establish acceptable training and upgrading performance standards and provide for such
monitoring or audit requirements as may be necessary to ensure the integrity of the training
effort. No financial assistance shall be granted under the subparagraph unless the Administrator
determines that

(i) such concern has documented that it has first explored the
use of existing cost-free or cost-subsidized training programs offered by public and private sector
agencies working with programs of employment and training and economic development;

(ii) no more than five employees or potential employees of
such concern are recipients of any benefits under this subparagraph at any one time;

(iii) no more than $2,500 shall be made available for any one
employee or potential employee;

(iv) the length of training or upgrading financed by this
subparagraph shall be no less than one month nor more than six months;

(v) such concern has given adequate assurance it will employ
the trainee or upgraded employee for at least six months after the training or upgrading financed
by this subparagraph has been completed and each trainee or upgraded employee has provided a
similar assurance to remain within the employ of such concern for such period; if such concern,
trainee, or upgraded employee breaches this agreement, the Administration shall be entitled to
and shall make diligent efforts to obtain from the violating party the repayment of all funds
expended on behalf of the violating party, such repayment shall be made to the Administration
together with such interest and costs of collection as may be reasonable; the violating party shall
be barred from receiving any further assistance under this subparagraph;

(vi) the training to be financed may take place either at such
concern's facilities or at those of the training provider; and

(vii) such concern will maintain such records as the
Administration deems appropriate to ensure that the provisions of this paragraph and any other
applicable law have not been violated.

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(F) The transfer of technology or surplus property owned by the
United States to such a concern. Activities designed to effect such transfer shall be developed in
cooperation with the heads of Federal agencies and shall include the transfer by grant, license, or
sale of such technology or property to such a concern. Such property may be transferred to
Program Participants on a priority basis. Technology or property transferred under this
subparagraph shall be used by the concern during the normal conduct of its business operation
and shall not be sold or transferred to any other party (other than the Government) during such
concern's term of participation in the Program and for one year thereafter.

(G) Training assistance whereby the Administration shall conduct
training sessions to assist individuals and enterprises eligible to receive contracts under section
8(a) in the development of business principles and strategies to enhance their ability to
successfully compete for contracts in the marketplace.

(H) J oint ventures, leader-follow arrangements, and teaming
agreements between the Program Participant and other Program Participants and other business
concerns with respect to contracting opportunities for the research, development, full-scale
engineering or production of major systems. Such activities shall be undertaken on the basis of
programs developed by the agency responsible for the procurement of the major system, with the
assistance of the Administration.

(I) Transitional management business planning training and technical
assistance.

(J ) Program Participants in the developmental stage of Program
participation shall be eligible for the assistance provided by subparagraphs (A), (B), (C), (D),
(E), (F), and (G).

(14) Program Participants in the transitional stage of Program participation
shall be eligible for the assistance provided by subparagraphs (A), (B), (F), (G), (H), and (I) of
paragraph (13).

(15) Subject to the provisions of paragraph (10)(C), a small business concern
may receive developmental assistance under the Program and contracts under section 8(a) for a
total period of not longer than nine years, measured from the date of its certification under the
authority of such section, of which

(A) no more than four years may be spent in the developmental stage
of Program Participation; and

(B) no more than five years may be spent in the transitional stage of
Program Participation.

(16) (A) The Administrator shall develop and implement a process for the
systematic collection of data on the operations of the Program established pursuant to paragraph
(10).
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(B) Not later than April 30 of each year, the Administrator shall submit
a report to the Congress on the Program that shall include the following:

(i) The average personal net worth of individuals who own
and control concerns that were initially certified for participation in the Program during the
immediately preceding fiscal year. The Administrator shall also indicate the dollar distribution
of net worths, at $50,000 increments, of all such individuals found to be socially and
economically disadvantaged. For the first report required pursuant to this paragraph the
Administrator shall also provide the data specified in the preceding sentence for all eligible
individuals in the Program as of the effective date of this paragraph.

(ii) A description and estimate of the benefits and costs that
have accrued to the economy and the Government in the immediately preceding fiscal year due
to the operations of those business concerns that were performing contracts awarded pursuant to
section 8(a).

(iii) A compilation and evaluation of those business concerns
that have exited the Program during the immediately preceding three fiscal years. Such
compilation and evaluation shall detail the number of concerns actively engaged in business
operations, those that have ceased or substantially curtailed such operations, including the
reasons for such actions, and those concerns that have been acquired by other firms or
organizations owned and controlled by other than socially and economically disadvantaged
individuals. For those businesses that have continued operations after they exited from the
Program, the Administrator shall also separately detail the benefits and costs that have accrued to
the economy during the immediately preceding fiscal year due to the operations of such
concerns.

(iv) A listing of all participants in the Program during the
preceding fiscal year identifying, by State and by Region, for each firm: the name of the
concern, the race or ethnicity, and gender of the disadvantaged owners, the dollar value of all
contracts received in the preceding year, the dollar amount of advance payments received by
each concern pursuant to contracts awarded under section 8(a), and a description including (if
appropriate) an estimate of the dollar value of all benefits received pursuant to paragraphs (13)
and (14) and section 7(a)(20) during such year.

(v) The total dollar value of contracts and options awarded
during the preceding fiscal year pursuant to section 8(a) and such amount expressed as a
percentage of total sales of (I) all firms participating in the Program during such year; and (II) of
firms in each of the nine years of program participation.

(vi) A description of such additional resources or program
authorities as may be required to provide the types of services needed over the next two-year
period to service the expected portfolio of firms certified pursuant to section 8(a).

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(vii) The total dollar value of contracts and options awarded
pursuant to section 8(a), at such dollar increments as the Administrator deems appropriate, for
each four digit standard industrial classification code under which such contracts and options
were classified.

(C) The first report required by subparagraph (B) shall pertain to fiscal
year 1990.

(k) In carrying out its functions under subsections 7(i), 7(j) and 8(a) of this Act, the
Administration is authorized

(1) to utilize, with their consent, the services and facilities of Federal agencies
without reimbursement, and, with the consent of any State or political subdivision of a State,
accept and utilize the services and facilities of such State or subdivision without reimbursement;

(2) to accept, in the name of the Administration, and employ or dispose of in
furtherance of the purposes of this Act, any money or property, real, personal, or mixed, tangible,
or intangible, received by gift, devise, bequest, or otherwise;

(3) to accept voluntary and uncompensated services, notwithstanding the
provisions of section 3679(b) of the Revised Statutes (31 U.S.C. 665(b)); and

(4) to employ experts and consultants or organizations thereof as authorized
by section 15 of the Administrative Expenses Act of 1946 (5 U.S.C. 55a), except that no
individual may be employed under the authority of this subsection for more than one hundred
days in any fiscal year; to compensate individuals so employed at rates not in excess of the daily
equivalent of the highest rate payable under section 5332 of title 5, United States Code, including
traveltime; and to allow them, while away from their homes or regular places of business, travel
expenses (including per diem in lieu of subsistence) as authorized by section 5 of such Act (5
U.S.C. 73b-2) for persons in the Government service employed intermittently, while so
employed: Provided, however, that contracts for such employment may be renewed annually.

(l) [RESERVED].

(m) MICROLOAN PROGRAM

(1) (A) PURPOSES. The purposes of the Microloan Program are

(i) to assist women, low-income, veteran (within the meaning
of such term under section 3(q)), and minority entrepreneurs and business owners, and other such
individuals possessing the capability to operate successful business concerns; and

(ii) to assist small business concerns in those areas suffering
from a lack of credit due to economic downturns;

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(iii) to establish a microloan program to be administered by the
Small Business Administration

(I) to make loans to eligible intermediaries to enable
such intermediaries to provide small-scale loans, particularly loans in amounts averaging not
more than $10,000, to startup, newly established, or growing small business concerns for
working capital or the acquisition of materials, supplies, or equipment;

(II) to make grants to eligible intermediaries that,
together with non-Federal matching funds, will enable such intermediaries to provide intensive
marketing, management, and technical assistance to microloan borrowers;

(III) to make grants to eligible nonprofit entities that,
together with non-Federal matching funds, will enable such entities to provide intensive
marketing, management, and technical assistance to assist low-income entrepreneurs and other
low-income individuals obtain private sector financing for their businesses, with or without loan
guarantees; and

(IV) to report to the Committees on Small Business of
the Senate and the House of Representatives on the effectiveness of the microloan program and
the advisability and feasibility of implementing such a program; and

(iv) to establish a welfare-to-work microloan initiative, which
shall be administered by the Administration, in order to test the feasibility of supplementing the
technical assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals
who are receiving assistance under the State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), or under any comparable State funded means tested
program of assistance for low-income individuals, in order to adequately assist those individuals
in

(I) establishing small businesses; and

(II) eliminating their dependence on that assistance.

(B) ESTABLISHMENT. There is established a microloan program,
under which the Administration may

(i) make direct loans to eligible intermediaries, as provided
under paragraph (3), for the purpose of making short-term, fixed interest rate microloans to
startup, newly established, and growing small business concerns under paragraph (6);

(ii) in conjunction with such loans and subject to the
requirements of paragraph (4), make grants to such intermediaries for the purpose of providing
intensive marketing, management, and technical assistance to small business concerns that are
borrowers under this subsection; and

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(iii) subject to the requirements of paragraph (5), make grants to
nonprofit entities for the purpose of providing marketing, management, and technical assistance
to low-income individuals seeking to start or enlarge their own businesses, if such assistance
includes working with the grant recipient to secure loans in amounts not to exceed $35,000 from
private sector lending institutions, with or without a loan guarantee from the nonprofit entity.

(2) ELIGIBILITY FOR PARTICIPATION.An intermediary shall be
eligible to receive loans and grants under subparagraphs (B)(i) and (B)(ii) of paragraph (1) if it

(A) meets the definition in paragraph (10); and

(B) has at least 1 year of experience making microloans to startup,
newly established, or growing small business concerns and providing, as an integral part of its
microloan program, intensive marketing, management, and technical assistance to its borrowers.

(3) LOANS TO INTERMEDIARIES.

(A) INTERMEDIARY APPLICATIONS.

(i) IN GENERAL.As part of its application for a loan, each
intermediary shall submit a description to the Administration of

(I) the type of businesses to be assisted;

(II) the size and range of loans to be made;

(III) the geographic area to be served and its economic
and unemployment characteristics;

(IV) the status of small business concerns in the area to
be served and an analysis of their credit and technical assistance needs;

(V) any marketing, management, and technical
assistance to be provided in connection with a loan made under this subsection;

(VI) the local economic credit markets, including the
costs associated with obtaining credit locally;

(VII) the qualifications of the applicant to carry out the
purpose of this subsection; and

(VIII) any plan to involve other technical assistance
providers (such as counselors from the Service Corps of Retired Executives or small business
development centers) or private sector lenders in assisting selected small business concerns.

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(ii) SELECTION OF INTERMEDIARIES.In selecting
intermediaries to participate in the program established under this subsection, the Administration
shall give priority to those applicants that provide loans in amounts averaging not more than
$10,000.

(B) INTERMEDIARY CONTRIBUTION.As a condition of any
loan made to an intermediary under subparagraph (B)(i) of paragraph (1), the Administration
shall require the intermediary to contribute not less than 15 percent of the loan amount in cash
from non-Federal sources.

(C) LOAN LIMITS.Notwithstanding subsection (a)(3), no loan shall
be made under this subsection if the total amount outstanding and committed to one intermediary
(excluding outstanding grants) from the business loan and investment fund established by this
Act would, as a result of such loan, exceed $750,000 in the first year of such intermediary's
participation in the program, and $3,500,000 in the remaining years of the intermediary's
participation in the program.

(D) (i) IN GENERAL.The Administrator shall, by regulation,
require each intermediary to establish a loan loss reserve fund, and to maintain such reserve fund
until all obligations owed to the Administration under this subsection are repaid.

(ii) LEVEL OF LOAN LOSS RESERVE FUND.

(I) IN GENERAL.Subject to subclause (III), the
Administrator shall require the loan loss reserve fund of an intermediary to be maintained at a
level equal to 15 percent of the outstanding balance of the notes receivable owed to the
intermediary.

(II) REVIEW OF LOAN LOSS RESERVE.After the
initial 5 years of an intermediarys participation in the program authorized by this subsection, the
Administrator shall, at the request of the intermediary, conduct a review of the annual loss rate of
the intermediary. Any intermediary in operation under this subsection prior to October 1, 1994,
that requests a reduction in its loan loss reserve shall be reviewed based on the most recent 5-
year period preceding the request.

(III) REDUCTION OF LOAN LOSS RESERVE.
Subject to the requirements of clause IV, the Administrator may reduce the annual loan loss
reserve requirement of an intermediary to reflect the actual average loan loss rate for the
intermediary during the preceding 5-year period, except that in no case shall the loan loss reserve
be reduced to less than 10 percent of the outstanding balance of the notes receivable owed to the
intermediary.

(IV) REQUIREMENTS.The Administrator may
reduce the annual loan loss reserve requirement of an intermediary only if the intermediary
demonstrates to the satisfaction of the Administrator that

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(aa) the average annual loss rate for the
intermediary during the preceding 5-year period is less than 15 percent; and

(bb) that no other factors exist that may impair
the ability of the intermediary to repay all obligations owed to the Administration under this
subsection.

(E) UNAVAILABILITY OF COMPARABLE CREDIT.An
intermediary may make a loan under this subsection of more than $20,000 to a small business
concern only if such small business concern demonstrates that it is unable to obtain credit
elsewhere at comparable interest rates and that it has good prospects for success. In no case shall
an intermediary make a loan under this subsection of more than $35,000, or have outstanding or
committed to any 1 borrower more than $35,000.

(F) LOAN DURATION; INTEREST RATES.

(i) LOAN DURATION.Loans made by the Administration
under this subsection shall be for a term of 10 years.

(ii) APPLICABLE INTEREST RATES.Except as provided
in clause (iii), loans made by the Administration under this subsection to an intermediary shall
bear an interest rate equal to 1.25 percentage points below the rate determined by the Secretary
of the Treasury for obligations of the United States with a period of maturity of 5 years, adjusted
to the nearest one-eighth of 1 percent.

(iii) RATES APPLICABLE TO CERTAIN SMALL
LOANS.Loans made by the Administration to an intermediary that makes loans to small
business concerns and entrepreneurs averaging not more than $7,500, shall bear an interest rate
that is 2 percentage points below the rate determined by the Secretary of the Treasury for
obligations of the United States with a period of maturity of 5 years, adjusted to the nearest one-
eighth of 1 percent.

(iv) RATES APPLICABLE TO MULTIPLE SITES OR
OFFICES.The interest rate prescribed in clause (ii) or (iii) shall apply to each separate
loanmaking site or office of 1 intermediary only if such site or office meets the requirements of
that clause.

(v) RATE BASIS.The applicable rate of interest under this
paragraph shall

(I) be applied retroactively for the first year of an
intermediary's participation in the program, based upon the actual lending practices of the
intermediary as determined by the Administration prior to the end of such year; and

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(II) be based in the second and subsequent years of an
intermediary's participation in the program, based upon the actual lending practices of the
intermediary during the term of the intermediary's participation in the program.

(vii)[sic] COVERED INTERMEDIARIES.The interest rates
prescribed in this subparagraph shall apply to all loans made to intermediaries under this
subsection on or after October 28, 1991.

(G) DELAYED PAYMENTS.The Administration shall not require
repayment of interest or principal of a loan made to an intermediary under this subsection during
the first year of the loan.

(H) FEES; COLLATERAL.Except as provided in subparagraphs (B)
and (D), the Administration shall not charge any fees or require collateral other than an
assignment of the notes receivable of the microloans with respect to any loan made to an
intermediary under this subsection.

(4) MARKETING, MANAGEMENT AND TECHNICAL ASSISTANCE
GRANTS TO INTERMEDIARIES.Grants made in accordance with subparagraph (B)(ii) of
paragraph (1) shall be subject to the following requirements:

(A) GRANT AMOUNTS.Except as otherwise provided in
subparagraph (C) and subject to subparagraph (B), each intermediary that receives a loan under
subparagraph (B)(i) of paragraph (1) shall be eligible to receive a grant to provide marketing,
management, and technical assistance to small business concerns that are borrowers under this
subsection. Except as provided in subparagraph (C), each intermediary meeting the requirements
of subparagraph (B) may receive a grant of not more than 25 percent of the total outstanding
balance of loans made to it under this subsection.

(B) CONTRIBUTION.As a condition of any grant made under
subparagraph (A), except for a grant made to an intermediary that provides not less than 50
percent of its loans to small business concerns located in or owned by one or more residents of
an economically distressed area, the Administration shall require the intermediary to contribute
an amount equal to 25 percent of the amount of the grant, obtained solely from non-Federal
sources. In addition to cash or other direct funding, the contribution may include indirect costs
or in-kind contributions paid for under non-Federal programs.

(C) ADDITIONAL TECHNICAL ASSISTANCE GRANTS FOR
MAKING CERTAIN LOANS.

(i) IN GENERAL.In addition to grants made under
subparagraph (A), each intermediary shall be eligible to receive a grant equal to 5 percent of the
total outstanding balance of loans made to the intermediary under this subsection if

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(I) the intermediary provides not less than 25 percent
of its loans to small business concerns located in or owned by one or more residents of an
economically distressed area; or

(II) the intermediary has a portfolio of loans made under
this subsection that averages not more than $10,000 during the period of the intermediary's
participation.

(ii) PURPOSES.A grant awarded under clause (i) may be
used to provide marketing, management, and technical assistance to small business concerns that
are borrowers under this subsection.

(iii) CONTRIBUTION EXCEPTION.The contribution
requirements in subparagraph (B) do not apply to grants made under this subparagraph.

(D) ELIGIBILITY FOR MULTIPLE SITES OR OFFICES.The
eligibility for a grant described in subparagraph (A) or (C) shall be determined separately for
each loan-making site or office of 1 intermediary.

(E) ASSISTANCE TO CERTAIN SMALL BUSINESS
CONCERNS.
(i) IN GENERAL.Each intermediary may expend an
amount not to exceed 25 percent of the grant funds received under paragraph (1)(B)(ii) to
provide information and technical assistance to small business concerns that are prospective
borrowers under this subsection.

(ii) TECHNICAL ASSISTANCE.An intermediary may
expend not more than 25 percent of the funds received under paragraph (1)(B)(ii) to enter into
third party contracts for the provision of technical assistance.

(F) SUPPLEMENTAL GRANT

(i) IN GENERAL.The Administration may accept any
funds transferred to the Administration from other departments or agencies of the Federal
Government to make grants in accordance with this subparagraph and section 202(b) of the
Small Business Reauthorization Act of 1997 to participating intermediaries and technical
assistance providers under paragraph (5), for use in accordance with clause (iii) to provide
additional technical assistance and related services to recipients of assistance under a State
program described in paragraph (1)(A)(iv) at the time they initially apply for assistance under
this subparagraph.

(ii) ELIGIBLE RECIPIENTS; GRANT AMOUNTS.In
making grants under this subparagraph, the Administration may select, from among participating
intermediaries and technical assistance providers described in clause (i), not more than 20
grantees in fiscal year 1998, not more than 25 grantees in fiscal year 1999, and not more than 30
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grantees in fiscal year 2000, each of whom may receive a grant under this subparagraph in an
amount not to exceed $200,000 per year.

(iii) USE OF GRANT AMOUNTS.Grants under this
subparagraph

(I) are in addition to other grants provided under this
subsection and shall not require the contribution of matching amounts as a condition of
eligibility; and

(II) may be used by a grantee

(aa) to pay or reimburse a portion of child care
and transportation costs of recipients of assistance described in clause (i), to the extent such costs
are not otherwise paid by State block grants under the Child Care Development Block Grant Act
of 1990 (42 U.S.C. 9958 et seq.); and

(bb) for marketing, management, and technical
assistance to recipients of assistance described in clause (i).

(iv) MEMORANDUM OF UNDERSTANDING.Prior to
accepting any transfer of funds under clause (i) from a department or agency of the Federal
Government, the Administration shall enter into a Memorandum of Understanding with the
department or agency, which shall

(I) specify the terms and conditions of the grants under
this subparagraph; and

(II) provide for appropriate monitoring of expenditures
by each grantee under this subparagraph and each recipient of assistance described in clause (i)
who receives assistance from a grantee under this subparagraph, in order to ensure compliance
with this subparagraph by those grantees and recipients of assistance.

(5) PRIVATE SECTOR BORROWING TECHNICAL ASSISTANCE
GRANTS. Grants made in accordance with subparagraph (B)(iii) of paragraph (1) shall be
subject to the following requirements:

(A) GRANT AMOUNTS. Subject to the requirements of
subparagraph (B), the Administration may make not more than 55 grants annually, each in
amounts not to exceed $200,000 for the purposes specified in subparagraph (B)(iii) of paragraph
(1).

(B) CONTRIBUTION. As a condition of any grant made under
subparagraph (A), the Administration shall require the grant recipient to contribute an amount
equal to 20 percent of the amount of the grant, obtained solely from non-Federal sources. In
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addition to cash or other direct funding, the contribution may include indirect costs or in-kind
contributions paid for under non-Federal programs.

(6) LOANS TO SMALL BUSINESS CONCERNS FROM ELIGIBLE
INTERMEDIARIES.

(A) IN GENERAL.An eligible intermediary shall make short-term,
fixed rate loans to startup, newly established, and growing small business concerns from the
funds made available to it under subparagraph (B)(i) of paragraph (1) for working capital and the
acquisition of materials, supplies, furniture, fixtures, and equipment.

(B) PORTFOLIO REQUIREMENT.To the extent practicable, each
intermediary that operates a microloan program under this subsection shall maintain a microloan
portfolio with an average loan size of not more than $15,000.

(C) INTEREST LIMIT.Notwithstanding any provision of the laws
of any State or the constitution of any State pertaining to the rate or amount of interest that may
be charged, taken, received or reserved on a loan, the maximum rate of interest to be charged on
a microloan funded under this subsection shall not exceed the rate of interest applicable to a loan
made to an intermediary by the Administration

(i) in the case of a loan of more than $7,500 made by the
intermediary to a small business concern or entrepreneur by more than 7.75 percentage points;
and

(ii) in the case of a loan of not more than $7,500 made by the
intermediary to a small business concern or entrepreneur by more than 8.5 percentage points.

(D) REVIEW RESTRICTION.The Administration shall not review
individual microloans made by intermediaries prior to approval.

(E) ESTABLISHMENT OF CHILD CARE OR TRANSPORTATION
BUSINESS.In addition to other eligible small businesses concerns, borrowers under any
program under this subsection may include individuals who will use the loan proceeds to
establish for-profit or nonprofit child care establishments or business providing for-profit
transportation services.

(7) PROGRAM FUNDING FOR MICROLOANS.

(A) NUMBER OF PARTICIPANTS.Under the program authorized
by this subsection, the Administration may fund, on a competitive basis, not more than 300
intermediaries.

(B) ALLOCATION.

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(i) MINIMUM ALLOCATION. Subject to the availability
of appropriations, of the total amount of new loan funds made available for award under this
subsection in each fiscal year, the Administration shall make available for award in each State
(including the district of Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa) an amount equal to the sum of

(I) the lesser of

(aa) $800,000; or

(bb) 1/55 of the total amount of new loan funds
made available for award under this subsection for that fiscal year; and

(II) any additional amount, as determined by the
Administration.

(ii) REDISTRIBUTION.If, at the beginning of the third
quarter of a fiscal year, the Administration determines that any portion of the amount made
available to carry out this subsection is unlikely to be made available under clause (i) during that
fiscal year, the Administration may make that portion available for award in any one or more
States (including the District of Columbia, the Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, and American Samoa) without regard to clause (i).

(8) EQUITABLE DISTRIBUTION OF INTERMEDIARIES.In approving
microloan program applicants and providing funding to intermediaries under this subsection, the
Administration shall select and provide funding to such intermediaries as will ensure appropriate
availability of loans for small businesses in all industries located throughout each State,
particularly those located in urban and in rural areas.

(9) GRANTS FOR MANAGEMENT, MARKETING, TECHNICAL
ASSISTANCE, AND RELATED SERVICES

(A) IN GENERAL.The Administration may procure technical
assistance for intermediaries participating in the Microloan Program to ensure that such
intermediaries have the knowledge, skills, and understanding of microlending practice necessary
to operate successful microloan programs.

(B) ASSISTANCE AMOUNT.The Administration shall transfer 7
percent of its annual appropriation for loans and loan guarantees under this subsection to the
Administration's Salaries and Expense Account for the specific purpose of providing 1 or more
technical assistance grants to experienced microlending organizations and national and regional
nonprofit organizations that have demonstrated experience in providing training support for
microenterprise development and financing to achieve the purpose set forth in subparagraph (A).

(C) WELFARE-TO-WORK.Of amounts made available to carry out
the welfare-to-work microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the
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Administration may use not more than 5 percent to provide technical assistance, either directly or
through contractors, to welfare-to-work microloan initiative grantees, to ensure that, as grantees
they have the knowledge, skills, and understanding of microlending and welfare-to-work
transition, and other related issues, to operate a successful welfare-to-work microloan initiative.

(10) REPORT TO CONGRESS. On November 1, 1995, the Administration
shall submit to the Committees on Small Business of the Senate and the House of
Representatives a report, including the Administration's evaluation of the effectiveness of the
first 3 1/2 years of the microloan program and the following:

(A) the numbers and locations of the intermediaries funded to conduct
microloan programs;

(B) the amounts of each loan and each grant to intermediaries;

(C) a description of the matching contributions of each intermediary;

(D) the numbers and amounts of microloans made by the inter-
mediaries to small business concern borrowers;

(E) the repayment history of each intermediary;

(F) a description of the loan portfolio of each intermediary including
the extent to which it provides microloans to small business concerns in rural areas; and

(G) any recommendations for legislative changes that would improve
program operations.

(11) DEFINITIONS. For purposes of this subsection

(A) the term intermediary means

(i) a private, nonprofit entity;

(ii) a private nonprofit community development corporation;

(iii) a consortium of private, nonprofit organizations or
nonprofit community development corporations;

(iv) a quasi-governmental economic development entity (such
as a planning and development district), other than a State, county, municipal government, or any
agency thereof, if

(I) no application is received from an eligible nonprofit
organization; or

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(II) the Administration determines that the needs of a
region or geographic area are not adequately served by an existing, eligible nonprofit
organization that has submitted an application; or

(v) an agency of or nonprofit entity established by a Native
American Tribal Government,

that seeks to borrow or has borrowed funds from the Small Business Administration to make
microloans to small business concerns under this subsection;

(B) the term microloan means a short-term, fixed rate loan of not
more than $35,000, made by an intermediary to a startup, newly established, or growing small
business concern;

(C) the term rural area means any political subdivision or
unincorporated area--

(i) in a nonmetropolitan county (as defined by the Secretary of
Agriculture) or its equivalent thereof; or

(ii) in a metropolitan county or its equivalent that has a resident
population of less than 20,000 if the Small Business Administration has determined such
political subdivision or area to be rural; and

(D) the term economically distressed area, as used in paragraph (4),
means a county or equivalent division of local government of a State in which the small business
concern is located, in which, according to the most recent data available from the Bureau of the
Census, Department of Commerce, not less than 40 percent of residents have an annual income
that is at or below the poverty level.

(12) DEFERRED PARTICIPATION LOAN PILOT.In lieu of making direct
loans to intermediaries as authorized in paragraph (1)(B), during fiscal years 1998 through 2000,
the Administration may, on a pilot program basis, participate on a deferred basis of not less than
90 percent and not more than 100 percent on loans made to intermediaries by a for-profit or
nonprofit entity or by alliances of such entities, subject to the following conditions:

(A) NUMBER OF LOANS.In carrying out this paragraph, the
Administration shall not participate in providing financing on a deferred basis to more than 10
intermediaries in urban areas or more than 10 intermediaries in rural areas.

(B) TERM OF LOANS.The term of each loan shall be 10 years.
During the first year of the loan, the intermediary shall not be required to repay any interest or
principal. During the second through fifth years of the loan, the intermediary shall be required to
pay interest only. During the sixth through tenth years of the loan, the intermediary shall be
required to make interest payments and fully amortize the principal.

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(C) INTEREST RATE.The interest rate on each loan shall be the
rate specified by paragraph (3)(F) for direct loans.

(13) EVALUATION OF WELFARE-TO-WORK MICROLOAN
INITIATIVE.On J anuary 31, 1999, and annually thereafter, the Administration shall submit to
the Committees on Small Business of the House of Representatives and the Senate a report on
any monies distributed pursuant to paragraph (4)(F).

(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RESERVISTS.

(1) DEFINITIONS.In this subsection:

(A) ELIGIBLE RESERVIST.The term eligible reservist means a
member of a reserve component of the Armed Forces ordered to active duty during a period of
military conflict.

(B) ESSENTIAL EMPLOYEE.The term essential employee
means an individual who is employed by a small business concern and whose managerial or
technical expertise is critical to the successful day-to-day operations of that small business
concern.

(C) PERIOD OF MILITARY CONFLICT.The term period of
military conflict means

(i) a period of war declared by the Congress;

(ii) a period of national emergency declared by the Congress or
by the President; or

(iii) a period of a contingency operation, as defined in section
101(a) of title 10, United States Code.

(D) QUALIFIED BORROWER.The term qualified borrower
means

(i) an individual who is an eligible reservist and who received
a direct loan under subsection (a) or (b) before being ordered to active duty; or

(ii) a small business concern that received a direct loan under
subsection (a) or (b) before an eligible reservist, who is an essential employee, was ordered to
active duty.

(2) DEFERRAL OF DIRECT LOANS.

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(A) IN GENERAL.The Administration shall, upon written request,
defer repayment of principal and interest due on a direct loan made under subsection (a) or (b), if
such loan was incurred by a qualified borrower.

(B) PERIOD OF DEFERRAL.The period of deferral for repayment
under this paragraph shall begin on the date on which the eligible reservist is ordered to active
duty and shall terminate on the date that is 180 days after the date such eligible reservist is
discharged or released from active duty.

(C) INTEREST RATE REDUCTION DURING DEFERRAL.
Notwithstanding any other provision of law, during the period of deferral described in
subparagraph (B), the Administration may, in its discretion, reduce the interest rate on any loan
qualifying for a deferral under this paragraph.

(3) DEFERRAL OF LOAN GUARANTEES AND OTHER
FINANCINGS.The Administration shall

(A) encourage intermediaries participating in the program under
subsection (m) to defer repayment of a loan made with proceeds made available under that
subsection, if such loan was incurred by a small business concern that is eligible to apply for
assistance under subsection (b)(3); and

(B) not later than 30 days after the date of the enactment of this
subsection, establish guidelines to

(i) encourage lenders and other intermediaries to defer
repayment of, or provide other relief relating to, loan guarantees under subsection (a) and
financings under section 504 of the Small Business Investment Act of 1958 that were incurred by
small business concerns that are eligible to apply for assistance under subsection (b)(3), and loan
guarantees provided under subsection (m) if the intermediary provides relief to a small business
concern under this paragraph; and

(ii) implement a program to provide for the deferral of
repayment or other relief to any intermediary providing relief to a small business borrower under
this paragraph.

8. (a) (1) It shall be the duty of the Administration and it is hereby empowered,
whenever it determines such action is necessary or appropriate

(A) to enter into contracts with the United States Government and any
department, agency, or officer thereof having procurement powers obligating the Administration
to furnish articles, equipment, supplies, services, or materials to the Government or to perform
construction work for the Government. In any case in which the Administration certifies to any
officer of the Government having procurement powers that the Administration is competent and
responsible to perform any specific Government procurement contract to be let by any such
officer, such officer shall be authorized in his discretion to let such procurement contract to the
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Administration upon such terms and conditions as may be agreed upon between the
Administration and the procurement officer. Whenever the Administration and such procurement
officer fail to agree, the matter shall be submitted for determination to the Secretary or the head
of the appropriate department or agency by the Administrator. Not later than 5 days from the
date the Administration is notified of a procurement officer's adverse decision, the
Administration may notify the contracting officer of the intent to appeal such adverse decision,
and within 15 days of such date the Administrator shall file a written request for a
reconsideration of the adverse decision with the Secretary of the department or agency head. For
the purposes of this subparagraph, a procurement officer's adverse decision includes a decision
not to make available for award pursuant to this subsection a particular procurement requirement
or the failure to agree on the terms and conditions of a contract to be awarded noncompetitively
under the authority of this subsection. Upon receipt of the notice of intent to appeal, the
Secretary of the department or the agency head shall suspend further action regarding the
procurement until a written decision on the Administrators request for reconsideration has been
issued by such Secretary or agency head, unless such officer makes a written determination that
urgent and compelling circumstances which significantly affect interests of the United States will
not permit waiting for a reconsideration of the adverse decision. If the Administrators request
for reconsideration is denied, the Secretary of the department or agency head shall specify the
reasons why the selected firm was determined to be incapable to perform the procurement
requirement, and the findings supporting such determination, which shall be made a part of the
contract file for the requirement. A contract may not be awarded under this subsection if the
award of the contract would result in a cost to the awarding agency which exceeds a fair market
price;

(B) to arrange for the performance of such procurement contracts by
negotiating or otherwise letting subcontracts to socially and economically disadvantaged small
business concerns for construction work, services, or the manufacture, supply, assembly of such
articles, equipment, supplies, materials, or parts thereof, or servicing or processing in connection
therewith, or such management services as may be necessary to enable the Administration to
perform such contracts;

(C) to make an award to a small business concern owned and
controlled by socially and economically disadvantaged individuals which has completed its
period of Program Participation as prescribed by section 7(j)(15), if

(i) the contract will be awarded as a result of an offer
(including price) submitted in response to a published solicitation relating to a competition
conducted pursuant to subparagraph (D); and

(ii) the prospective contract awardee was a Program Participant
eligible for award of the contract on the date specified for receipt of offers contained in the
contract solicitation; and

(D) (i) A contract opportunity offered for award pursuant to this
subsection shall be awarded on the basis of competition restricted to eligible Program
Participants if
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(I) there is a reasonable expectation that at least two
eligible Program Participants will submit offers and that award can be made at a fair market
price, and

(II) the anticipated award price of the contract
(including options) will exceed $5,000,000 in the case of a contract opportunity assigned a
standard industrial classification code for manufacturing and $3,000,000 (including options) in
the case of all other contract opportunities.

(ii) The Associate Administrator for Minority Small Business
and Capital Ownership Development, on a nondelegable basis, is authorized to approve a request
from an agency to award a contract opportunity under this subsection on the basis of a
competition restricted to eligible Program Participants even if the anticipated award price is not
expected to exceed the dollar amounts specified in clause (i)(II). Such approvals shall be granted
only on a limited basis.

(2) Notwithstanding subsections (a) and (c) of the first section of the Act
entitled An Act requiring contracts for the construction, alteration, and repair of any public
building or public work of the United States to be accompanied by a performance bond
protecting the United States and by additional bond for the protection of persons furnishing
material and labor for the construction, alteration, or repair of said public buildings or public
works, approved August 24, 1935 (49 Stat. 793), no small business concern shall be required to
provide any amount of any bond as a condition of receiving any subcontract under this
subsection if the Administrator determines that such amount is inappropriate for such concern in
performing such contract: Provided, That the Administrator shall exercise the authority granted
by the paragraph only if

(A) the Administration takes such measures as it deems appropriate for
the protection of persons furnishing materials and labor to a small business receiving any benefit
pursuant to this paragraph;

(B) the Administration assists, insofar as practicable, a small business
receiving the benefits of this paragraph to develop, within a reasonable period of time, such
financial and other capability as may be needed to obtain such bonds as the Administration may
subsequently require for the successful completion of any program conducted under the authority
of this subsection;

(C) the Administration finds that such small business is unable to
obtain the requisite bond or bonds from a surety and that no surety is willing to issue such bond
or bonds subject to the guarantee provisions of Title IV of the Small Business Investment Act of
1958; and

(D) the small business is determined to be a startup concern and such
concern has not been participating in any program conducted under the authority of this
subsection for a period exceeding one year.
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The authority to waive bonds provided in this paragraph (2) may not be exercised after
September 30, 1988.

(3) (A) Any Program Participant selected by the Administration to perform
a contract to be let noncompetitively pursuant to this subsection shall, when practicable,
participate in any negotiation of the terms and conditions of such contract.

(B) (i) For purposes of paragraph (1) a fair market price shall be
determined by the agency offering the procurement requirement to the Administration, in
accordance with clauses (ii) and (iii).

(ii) The estimate of a current fair market price for a new
procurement requirement, or a requirement that does not have a satisfactory procurement history,
shall be derived from a price or cost analysis. Such analysis may take into account prevailing
market conditions, commercial prices for similar products or services, or data obtained from any
other agency. Such analysis shall consider such cost or pricing data as may be timely submitted
by the Administration.

(iii) The estimate of a current fair market price for a
procurement requirement that has a satisfactory procurement history shall be based on recent
award prices adjusted to insure comparability. Such adjustments shall take into account
differences in quantities, performance times, plans, specifications, transportation costs,
packaging and packing costs, labor and materials costs, overhead costs, and any other additional
costs which may be deemed appropriate.

(C) An agency offering a procurement requirement for potential award
pursuant to this subsection shall, upon the request of the Administration, promptly submit to the
Administration a written statement detailing the method used by the agency to estimate the
current fair market price for such contract, identifying the information, studies, analyses, and
other data used by such agency. The agencys estimate of the current fair market price (and any
supporting data furnished to the Administration) shall not be disclosed to any potential offeror
(other than the Administration).

(D) A small business concern selected by the Administration to
perform or negotiate a contract to be let pursuant to this subsection may request the
Administration to protest the agencys estimate of the fair market price for such contract
pursuant to paragraph (1)(A).

(4) (A) For purposes of this section, the term socially and economically
disadvantaged small business concern means any small business concern which meets the
requirements of subparagraph (B) and

(i) which is at least 51 per centum unconditionally owned
by

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(I) one or more socially and economically
disadvantaged individuals,

(II) an economically disadvantaged Indian tribe (or a
wholly owned business entity of such tribe), or

(III) an economically disadvantaged Native Hawaiian
organization, or

(ii) in the case of any publicly owned business, at least 51 per
centum of the stock of which is unconditionally owned by

(I) one or more socially and economically
disadvantaged individuals,

(II) an economically disadvantaged Indian tribe (or a
wholly owned business entity of such tribe), or

(III) an economically disadvantaged Native Hawaiian
organization.

(B) A small business concern meets the requirements of this
subparagraph if the management and daily business operations of such small concern are
controlled by one or more

(i) socially and economically disadvantaged individuals
described in subparagraph (A)(i)(I) or subparagraph (A)(ii)(I), or

(ii) members of an economically disadvantaged Indian tribe
described in subparagraph (A)(i)(II) or subparagraph (A)(ii)(II) or

(iii) Native Hawaiian organizations described in subparagraph
(A)(i)(III) or subparagraph (A)(ii)(III).

(C) Each Program Participant shall certify, on an annual basis, that it
meets the requirements of this paragraph regarding ownership and control.

(5) Socially disadvantaged individuals are those who have been subjected to
racial or ethnic prejudice or cultural bias because of their identity as a member of a group
without regard to their individual qualities.

(6) (A) Economically disadvantaged individuals are those socially
disadvantaged individuals whose ability to compete in the free enterprise system has been
impaired due to diminished capital and credit opportunities as compared to others in the same
business area who are not socially disadvantaged. In determining the degree of diminished credit
and capital opportunities the Administration shall consider, but not be limited to, the assets and
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net worth of such socially disadvantaged individual. In determining the economic disadvantage
of an Indian tribe, the Administration shall consider, where available, information such as the
following: the per capita income of members of the tribe excluding judgment awards, the
percentage of the local Indian population below the poverty level, and the tribes access to
capital markets.

(B) Each Program Participant shall annually submit to the
Administration

(i) a personal financial statement for each disadvantaged
owner;

(ii) a record of all payments made by the Program Participant
to each of its disadvantaged owners or to any person or entity affiliated with such owners; and

(iii) such other information as the Administration may deem
necessary to make the determinations required by this paragraph.

(C) (i) Whenever, on the basis of information provided by a
Program Participant pursuant to subparagraph (B) or otherwise, the Administration has reason to
believe that the standards to establish economic disadvantage pursuant to subparagraph (A) have
not been met, the Administration shall conduct a review to determine whether such Program
Participant and its disadvantaged owners continue to be impaired in their ability to compete in
the free enterprise system due to diminished capital and credit opportunities when compared to
other concerns in the same business area, which are not socially disadvantaged.

(ii) If the Administration determines, pursuant to such review,
that a Program Participant and its disadvantaged owners are no longer economically
disadvantaged for the purpose of receiving assistance under this subsection, the Program
Participant shall be graduated pursuant to section 7(j)(10)(G) subject to the right to a hearing as
provided for under paragraph (9).

(D) (i) Whenever, on the basis of information provided by a
Program Participant pursuant to subparagraph (B) or otherwise, the Administration has reason to
believe that the amount of funds or other assets withdrawn from a Program Participant for the
personal benefit of its disadvantaged owners or any person or entity affiliated with such owners
may have been unduly excessive, the Administration shall conduct a review to determine
whether such withdrawal of funds or other assets was detrimental to the achievement of the
targets, objectives, and goals contained in such Program Participant's business plan.

(ii) If the Administration determines, pursuant to such review,
that funds or other assets have been withdrawn to the detriment of the Program Participants
business, the Administration shall

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(I) initiate a proceeding to terminate the Program
Participant pursuant to section 7(j)(10)(F), subject to the right to a hearing under paragraph (9);
or

(II) require an appropriate reinvestment of funds or
other assets and such other steps as the Administration may deem necessary to ensure the
protection of the concern.

(E) Whenever the Administration computes personal net worth for any
purpose under this paragraph, it shall exclude from such computation

(i) the value of investments that disadvantaged owners have in
their concerns, except that such value shall be taken into account under this paragraph when
comparing such concerns to other concerns in the same business area that are owned by other
than socially disadvantaged persons;

(ii) the equity that disadvantaged owners have in their primary
personal residences, except that any portion of such equity that is attributable to unduly
excessive withdrawals from a Program Participant or a concern applying for program
participation shall be taken into account.

(7) (A) No small business concern shall be deemed eligible for any
assistance pursuant to this subsection unless the Administration determines that with contract,
financial, technical, and management support the small business concern will be able to perform
contracts which may be awarded to such concern under paragraph (1)(C) and has reasonable
prospects for success in competing in the private sector.

(B) Limitations established by the Administration in its regulations and
procedures restricting the award of contracts pursuant to this subsection to a limited number of
standard industrial classification codes in an approved business plan shall not be applied in a
manner that inhibits the logical business progression by a participating small business concern
into areas of industrial endeavor where such concern has the potential for success.

(8) All determinations made pursuant to paragraph (5) with respect to whether
a group has been subjected to prejudice or bias shall be made by the Administrator after
consultation with the Associate Administrator for Minority Small Business and Capital
Ownership Development. All other determinations made pursuant to paragraphs (4), (5), (6),
and (7) shall be made by the Associate Administrator for Minority Small Business and Capital
Ownership Development under the supervision of, and responsible to, the Administrator.

(9) (A) Subject to the provisions of subparagraph (E), the Administration,
prior to taking any action described in subparagraph (B), shall provide the small business
concern that is the subject of such action, an opportunity for a hearing on the record, in
accordance with chapter 5 of title 5, United States Code.

(B) The actions referred to in subparagraph (A) are
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(i) denial of program admission based upon a negative
determination pursuant to paragraph (4), (5), or (6);

(ii) a termination pursuant to section 7(j)(10)(F);

(iii) a graduation pursuant to section 7(j)(10)(G); and

(iv) the denial of a request to issue a waiver pursuant to
paragraph (21)(B).

(C) The Administrations proposed action, in any proceeding con-
ducted under the authority of this paragraph, shall be sustained unless it is found to be arbitrary,
capricious, or contrary to law.

(D) A decision rendered pursuant to this paragraph shall be the final
decision of the Administration and shall be binding upon the Administration and those within its
employ.

(E) The adjudicator selected to preside over a proceeding conducted
under the authority of this paragraph shall decline to accept jurisdiction over any matter that

(i) does not, on its face, allege facts that, if proven to be true,
would warrant reversal or modification of the Administrations position;

(ii) is untimely filed;

(iii) is not filed in accordance with the rules of procedure
governing such proceedings; or

(iv) has been decided by or is the subject of an adjudication
before a court of competent jurisdiction over such matters.

(F) Proceedings conducted pursuant to the authority of this paragraph
shall be completed and a decision rendered, insofar as practicable, within ninety days after a
petition for a hearing is filed with the adjudicating office.

(10) The Administration shall develop and implement an outreach program to
inform and recruit small business concerns to apply for eligibility for assistance under this
subsection. Such program shall make a sustained and substantial effort to solicit applications for
certification from small business concerns located in areas of concentrated unemployment or
underemployment or within labor surplus areas and within States having relatively few Program
Participants and from small disadvantaged business concerns in industry categories that have not
substantially participated in the award of contracts let under the authority of this subsection.

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(11) To the maximum extent practicable, construction subcontracts awarded by
the Administration pursuant to this subsection shall be awarded within the county or State where
the work is to be performed.

(12) (A) The Administration shall require each concern eligible to receive
subcontracts pursuant to this subsection to annually prepare and submit to the Administration a
capability statement. Such statement shall briefly describe such concerns various contract
performance capabilities and shall contain the name and telephone number of the Business
Opportunity Specialist assigned such concern. The Administration shall separate such
statements by those primarily dependent upon local contract support and those primarily
requiring a national marketing effort. Statements primarily dependent upon local contract
support shall be disseminated to appropriate buying activities in the marketing area of the
concern. The remaining statements shall be disseminated to the Directors of Small and
Disadvantaged Business Utilization for the appropriate agencies who shall further distribute such
statements to buying activities with such agencies that may purchase the types of items or
services described on the capability statements.

(B) Contracting activities receiving capability statements shall, within
60 days after receipt, contact the relevant Business Opportunity Specialist to indicate the
number, type and approximate dollar value of contract opportunities that such activities may be
awarding over the succeeding 12-month period and which may be appropriate to consider for
award to those concerns for which it has received capability statements.

(C) Each executive agency reporting to the Federal Procurement Data
System contract actions with an aggregate value in excess of $50,000,000 in fiscal year 1988, or
in any succeeding fiscal year, shall prepare a forecast of expected contract opportunities or
classes of contract opportunities for the next and succeeding fiscal years that small business
concerns, including those owned and controlled by socially and economically disadvantaged
individuals, are capable of performing. Such forecast shall be periodically revised during such
year. To the extent such information is available, the agency forecasts shall specify:

(i) The approximate number of individual contract
opportunities (and the number of opportunities within a class)

(ii) The approximate dollar value, or range of dollar values, for
each contract opportunity or class of contract opportunities.

(iii) The anticipated time (by fiscal year quarter) for the
issuance of a procurement request.

(iv) The activity responsible for the award and administration of
the contract.

(D) The head of each executive agency subject to the provisions of
subparagraph (C) shall within 10 days of completion furnish such forecasts to

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(i) the Director of the Office of Small and Disadvantaged
Business Utilization established pursuant to section 15(k) for such agency; and

(ii) the Administrator.

(E) The information reported pursuant to subparagraph (D) may be
limited to classes of items and services for which there are substantial annual purchases.

(F) Such forecasts shall be available to small business concerns.

(13) For purposes of this subsection, the term Indian tribe means any Indian
tribe, band, nation, or other organized group or community of Indians, including any Alaska
Native village or regional or village corporation (within the meaning of the Alaska Native
Claims Settlement Act) which

(A) is recognized as eligible for the special programs and services
provided by the United States to Indians because of their status as Indians, or

(B) is recognized as such by the State in which such tribe, band,
nation, group, or community resides.

(14) (A) A concern may not be awarded a contract under this subsection as
a small business concern unless the concern agrees that

(i) in the case of a contract for services (except construction),
at least 50 percent of the cost of contract performance incurred for personnel shall be expended
for employees of the concern; and

(ii) in the case of a contract for procurement of supplies (other
than procurement from a regular dealer in such supplies), the concern will perform work for at
least 50 percent of the cost of manufacturing the supplies (not including the cost of materials).

(B) The Administrator may change the percentage under clause (i) or
(ii) of subparagraph (A) if the Administrator determines that such change is necessary to reflect
conventional industry practices among business concerns that are below the numerical size
standard for businesses in that industry category. A percentage established under the preceding
sentence may not differ from a percentage established under section 15(o).

(C) The Administration shall establish, through public rulemaking,
requirements similar to those specified in subparagraph (A) to be applicable to contracts for
general and specialty construction and to contracts for any other industry category not otherwise
subject to the requirements of such subparagraph. The percentage applicable to any such
requirement shall be determined in accordance with subparagraph (B), except that such a
percentage may not differ from a percentage established under section 15(o) for the same
industry category.

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(15) For purposes of this subsection, the term Native Hawaiian Organization
means any community service organization serving Native Hawaiians in the State of Hawaii
which

(A) is a nonprofit corporation that has filed articles of incorporation
with the director (or the designee thereof) of the Hawaii Department of Commerce and
Consumer Affairs, or any successor agency,

(B) is controlled by Native Hawaiians, and

(C) whose business activities will principally benefit such Native
Hawaiians.

(16) (A) The Administration shall award sole source contracts under this
section to any small business concern recommended by the procuring agency offering the
contract opportunity if

(i) the Program Participant is determined to be a responsible
contractor with respect to performance of such contract opportunity;

(ii) the award of such contract would be consistent with the
Program Participants business plan; and

(iii) the award of the contract would not result in the Program
Participant exceeding the requirements established by section 7(j)(10)(I).

(B) To the maximum extent practicable, the Administration shall
promote the equitable geographic distribution of sole source contracts awarded pursuant to this
subsection.

(17) (A) An otherwise responsible business concern that is in compliance
with the requirements of subparagraph (B) shall not be denied the opportunity to submit and
have considered its offer for any procurement contract for the supply of a product to be let
pursuant to this subsection or subsection (a) of section 15 solely because such concern is other
than the actual manufacturer or processor of the product to be supplied under the contract.

(B) To be in compliance with the requirements referred to in
subparagraph (A), such a business concern shall

(i) be primarily engaged in the wholesale or retail trade;

(ii) be a small business concern under the numerical size
standard for the Standard Industrial Classification Code assigned to the contract solicitation on
which the offer is being made;

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(iii) be a regular dealer, as defined pursuant to section 35(a) of
title 41, United States Code (popularly referred to as the Walsh-Healey Public Contracts Act), in
the product to be offered the Government or be specifically exempted from such section by
section 7(j)(13)(C); and

(iv) represent that it will supply the product of a domestic small
business manufacturer or processor, unless a waiver of such requirement is granted

(I) by the Administrator, after reviewing a
determination by the contracting officer that no small business manufacturer or processor can
reasonably be expected to offer a product meeting the specifications (including period for
performance) required of an offeror by the solicitation; or

(II) by the Administrator for a product (or class of
products), after determining that no small business manufacturer or processor is available to
participate in the Federal procurement market.

(18) (A) No person within the employ of the Administration shall, during
the term of such employment and for a period of two years after such employment has been
terminated, engage in any activity or transaction specified in subparagraph (B) with respect to
any Program Participant during such person's term of employment, if such person participated
personally (either directly or indirectly) in decision-making responsibilities relating to such
Program Participant or with respect to the administration of any assistance provided to Program
Participants generally under this subsection, section 7(j)(10), or section 7(a)(20).

(B) The activities and transactions prohibited by subparagraph (A)
include

(i) the buying, selling, or receiving (except by inheritance) of
any legal or beneficial ownership of stock or any other ownership interest or the right to acquire
any such interest;

(ii) the entering into or execution of any written or oral
agreement (whether or not legally enforceable) to purchase or otherwise obtain any right or
interest described in clause (i); or

(iii) the receipt of any other benefit or right that may be an
incident of ownership.

(C) (i) The employees designated in clause (ii) shall annually
submit a written certification to the Administration regarding compliance with the requirements
of this paragraph.

(ii) The employees referred to in clause (i) are

(I) regional administrators;
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(II) district directors;

(III) the Associate Administrator for Minority Small
Business and Capital Ownership Development;

(IV) employees whose principal duties relate to the
award of contracts or the provision of other assistance pursuant to this subsection or section
7(j)(10); and

(V) such other employees as the Administrator may
deem appropriate.

(iii) Any present or former employee of the Administration who
violates this paragraph shall be subject to a civil penalty, assessed by the Attorney General, that
shall not exceed 300 per centum of the maximum amount of gain such employee realized or
could have realized as a result of engaging in those activities and transactions prescribed by
subparagraph (B).

(iv) In addition to any other remedy or sanction provided for
under law or regulation, any person who falsely certifies pursuant to clause (i) shall be subject to
a civil penalty under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801-3812).

(19) (A) Any employee of the Administration who has authority to take,
direct others to take, recommend, or approve any action with respect to any program or activity
conducted pursuant to this subsection or section 7(j), shall not, with respect to any such action,
exercise or threaten to exercise such authority on the basis of the political activity or affiliation of
any party. Employees of the Administration shall expeditiously report to the Inspector General
of the Administration any such action for which such employee's participation has been solicited
or directed.

(B) Any employee who willfully and knowingly violates subparagraph
(A) shall be subject to disciplinary action which may consist of separation from service,
reduction in grade, suspension, or reprimand.

(C) Subparagraph (A) shall not apply to any action taken as a penalty
or other enforcement of a violation of any law, rule, or regulation prohibiting or restricting
political activity.

(D) The prohibitions of subparagraph (A), and remedial measures
provided for under subparagraphs (B) and (C) with regard to such prohibitions, shall be in
addition to, and not in lieu of, any other prohibitions, measures or liabilities that may arise under
any other provision of law.

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(20) (A) Small business concerns participating in the Program under section
7(j)(10) and eligible to receive contracts pursuant to this section shall semiannually report to
their assigned Business Opportunity Specialist the following:

(i) A listing of any agents, representatives, attorneys,
accountants, consultants, and other parties (other than employees) receiving compensation to
assist in obtaining a Federal contract for such Program Participant.

(ii) The amount of compensation received by any person listed
under clause (i) during the relevant reporting period and a description of the activities performed
in return for such compensation.

(B) The Business Opportunity Specialist shall promptly review and
forward such report to the Associate Administrator for Minority Small Business and Capital
Ownership Development. Any report that raises a suspicion of improper activity shall be
reported immediately to the Inspector General of the Administration.

(C) The failure to submit a report pursuant to the requirements of this
subsection and applicable regulations shall be considered good cause for the initiation of a
termination proceeding pursuant to section 7(j)(10)(F).

(21) (A) Subject to the provisions of subparagraph (B), a contract (including
options) awarded pursuant to this subsection shall be performed by the concern that initially
received such contract. Notwithstanding the provisions of the preceding sentence, if the owner
or owners upon whom eligibility was based relinquish ownership or control of such concern, or
enter into any agreement to relinquish such ownership or control, such contract or option shall be
terminated for the convenience of the Government, except that no repurchase costs or other
damages may be assessed against such concerns due solely to the provisions of this
subparagraph.

(B) The Administrator may, on a nondelegable basis, waive the
requirements of subparagraph (A) only if one of the following conditions exist:

(i) When it is necessary for the owners of the concern to
surrender partial control of such concern on a temporary basis in order to obtain equity financing.

(ii) The head of the contracting agency for which the contract
is being performed certifies that termination of the contract would severely impair attainment of
the agency's program objectives or missions;

(iii) Ownership and control of the concern that is performing
the contract will pass to another small business concern that is a program participant, but only if
the acquiring firm would otherwise be eligible to receive the award directly pursuant to
subsection (a);

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(iv) The individuals upon whom eligibility was based are no
longer able to exercise control of the concern due to incapacity or death; or

(v) When, in order to raise equity capital, it is necessary for the
disadvantaged owners of the concern to relinquish ownership of a majority of the voting stock of
such concern, but only if

(I) such concern has exited the Capital Ownership
Development Program;

(II) the disadvantaged owners will maintain ownership
of the largest single outstanding block of voting stock (including stock held by affiliated parties);
and

(III) the disadvantaged owners will maintain control of
daily business operations.

(C) The Administrator may waive the requirements of subparagraph
(A) if

(i) in the case of subparagraph (B)(i), (ii) and (iv), he is
requested to do so prior to the actual relinquishment of ownership or control; and

(ii) in the case of subparagraph (B)(iii), he is requested to do so
as soon as possible after the incapacity or death occurs.

(D) Concerns performing contracts awarded pursuant to this subsection
shall be required to notify the Administration immediately upon entering an agreement (either
oral or in writing) to transfer all or part of its stock or other ownership interest to any other party.

(E) Notwithstanding any other provision of law, for the purposes of
determining ownership and control of a concern under this section, any potential ownership
interests held by investment companies licensed under the Small Business Investment Act of
1958 shall be treated in the same manner as interests held by the individuals upon whom
eligibility is based.

(b) It shall also be the duty of the Administration and it is hereby empowered,
whenever it determines such action is necessary

(1) (A) to provide technical, managerial, and informational aids to small
business concerns

(i) by advising and counseling on matters in connection with
Government procurement and policies, principles, and practices of good management;

(ii) by cooperating and advising with
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(I) voluntary business, professional, educational, and
other nonprofit organizations, associations, and institutions (except that the Administration shall
take such actions as it determines necessary to ensure that such cooperation does not constitute
or imply an endorsement by the Administration of the organization or its products or services,
and shall ensure that it receives appropriate recognition in all printed materials); and

(II) other Federal and State agencies;

(iii) by maintaining a clearinghouse for information on
managing, financing, and operating small business enterprises; and

(iv) by disseminating such information, including through
recognition events, and by other activities that the Administration determines to be appropriate.

(B) To establish, conduct, and publicize, and to recruit, select, and
train volunteers for (and to enter into contracts, grants, or cooperative agreements therefor),
volunteer programs, including a Service Corps of Retired Executives (SCORE) and an Active
Corps of Executive (sic) (ACE) for the purposes of section 8(b)(1)(A) of this Act. To facilitate
the implementation of such volunteer programs the Administration shall maintain at its
headquarters and pay the salaries, benefits, and expenses of a volunteer and professional staff to
manage and oversee the program. Any such payments made pursuant to this subparagraph shall
be effective only to such extent or in such amounts as are provided in advance in appropriation
Acts. Notwithstanding any other provision of law, SCORE may solicit cash and in-kind
contributions from the private sector to be used to carry out its functions under this Act, and may
use payments made by the Administration pursuant to this subparagraph for such solicitation and
the management of the contributions received.

(C) To allow any individual or group of persons participating with it in
furtherance of the purposes of subparagraphs (A) and (B) to use the Administrations office
facilities and related material and services as the Administration deems appropriate, including
clerical and stenographic services:

(i) such volunteers, while carrying out activities under section
8(b)(1) of this Act shall be deemed Federal employees for the purposes of the Federal tort claims
provisions in title 28, United States Code; and for the purposes of subchapter I of chapter 81 of
title 5, United States Code (relative to compensation to Federal employees for work injuries)
shall be deemed civil employees of the United States within the meaning of the term employee
as defined in section 8101 of title 5, United States Code, and the provisions of that subchapter
shall apply except that in computing compensation benefits for disability or death, the monthly
pay of a volunteer shall be deemed that received under the entrance salary for a grade GS-11
employee;

(ii) the Administrator is authorized to reimburse such
volunteers for all necessary out-of-pocket expenses incident to their provision of services under
this Act, or in connection with attendance at meetings sponsored by the Administration, or for
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the cost of malpractice insurance, as the Administrator shall determine, in accordance with
regulations which he or she shall prescribe, and, while they are carrying out such activities away
from their homes or regular places of business, for travel expenses (including per diem in lieu of
subsistence) as authorized by section 5703 of title 5, United States Code, for individuals serving
without pay; and

(iii) such volunteers shall in no way provide services to a client
of such Administration with a delinquent loan outstanding, except upon a specific request signed
by such client for assistance in connection with such matter.

(D) Notwithstanding any other provision of law, no payment for
supportive services or reimbursement of out-of-pocket expenses made to persons serving
pursuant to section 8(b)(1) of this Act shall be subject to any tax or charge or be treated as wages
or compensation for the purposes of unemployment, disability, retirement, public assistance, or
similar benefit payments, or minimum wage laws.

(E) In carrying out its functions under subparagraph (A), to make
grants (including contracts and cooperative agreements) to any public or private institution of
higher education for the establishment and operation of a small business institute, which shall be
used to provide business counseling and assistance to small business concerns through the
activities of students enrolled at the institution, which students shall be entitled to receive
educational credits for their activities.

(F) Notwithstanding any other provision of law and pursuant to
regulations which the Administrator shall prescribe, counsel may be employed and counsel fees,
court costs, bail, and other expenses incidental to the defense of volunteers may be paid in
judicial or administrative proceedings arising directly out of the performance of activities
pursuant to section 8(b)(1) of this Act, as amended (15 U.S.C. 637(b)(1)) to which volunteers
have been made parties.

(G) In carrying out its functions under this Act and to carry out the
activities authorized by title IV of the Womens Business Ownership Act of 1988 the
Administration is authorized to accept, in the name of the Administration, and employ or dispose
of in furtherance of the purposes of this Act, any money or property, real, personal, or mixed,
tangible, or intangible, received by gift, devise, bequest, or otherwise; and, further, to accept
gratuitous services and facilities.

(2) to make a complete inventory of all productive facilities of small-business
concerns or to arrange for such inventory to be made by any other governmental agency which
has the facilities. In making any such inventory, the appropriate agencies in the several States
may be requested to furnish an inventory of the productive facilities of small-business concerns
in each respective State if such an inventory is available or in prospect;

(3) to coordinate and to ascertain the means by which the productive capacity
of small-business concerns can be more effectively utilized;

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(4) to consult and cooperate with officers of the Government having
procurement or property disposal powers, in order to utilize the potential productive capacity of
plants operated by small-business concerns;

(5) to obtain information as to methods and practices which Government
prime contractors utilize in letting subcontracts and to take action to encourage the letting of
subcontracts by prime contractors to small-business concerns at prices and on conditions and
terms which are fair and equitable;

(6) to determine within any industry the concerns, firms, persons,
corporations, partnerships, cooperatives, or other business enterprises which are to be designated
small business concerns for the purpose of effectuating the provisions of this Act. To carry out
this purpose the Administrator, when requested to do so, shall issue in response to each such
request an appropriate certificate certifying an individual concern as a small business concern
in accordance with criteria expressed in this Act. Any such certificate shall be subject to
revocation when the concern covered thereby ceases to be a small business concern. Offices
of the Government having procurement or lending powers, or engaging in the disposal of Federal
property or allocating materials or supplies, or promulgating regulations affecting the distribution
of materials or supplies, shall accept as conclusive the Administrations determination as to
which enterprises are to be designated small-business concerns, as authorized and directed
under this paragraph;

(7) (A) to certify to Government procurement officers, and officers
engaged in the sale and disposal of Federal property, with respect to all elements of
responsibility, including, but not limited to, capability, competency, capacity, credit, integrity,
perseverance, and tenacity, of any small business concern or group of such concerns to receive
and perform a specific Government contract. A Government procurement officer or an officer
engaged in the sale and disposal of Federal property may not, for any reason specified in the
preceding sentence, preclude any small business concern or group of such concerns from being
awarded such contract without referring the matter for a final disposition to the Administration.

(B) If a Government procurement officer finds that an otherwise
qualified small business concern may be ineligible due to the provisions of section 35(a) of title
41, United States Code (the Walsh-Healey Public Contracts Act), he shall notify the
Administration in writing of such finding. The Administration shall review such finding and
shall either dismiss it and certify the small business concern to be an eligible Government
contractor for a specific Government contract or if it concurs in the finding, forward the matter to
the Secretary of Labor for final disposition, in which case the Administration may certify the
small business concern only if the Secretary of Labor finds the small business concern not to be
in violation.

(C) In any case in which a small business concern or group of such
concerns has been certified by the Administration pursuant to (A) or (B) to be a responsible or
eligible Government contractor as to a specific Government contract, the officers of the
Government having procurement or property disposal powers are directed to accept such
certification as conclusive, and shall let such Government contract to such concern or group of
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concerns without requiring it to meet any other requirement of responsibility or eligibility.
Notwithstanding the first sentence of this subparagraph, the Administration may not establish an
exemption from referral or notification or refuse to accept a referral or notification from a
Government procurement officer made pursuant to subparagraph (A) or (B) of this paragraph,
but nothing in this paragraph shall require the processing of an application for certification if the
small business concern to which the referral pertains declines to have the application processed.

(8) to obtain from any Federal department, establishment, or agency engaged
in procurement or in the financing of procurement or production such reports concerning the
letting of contracts and subcontracts and the making of loans to business concerns as it may
deem pertinent in carrying out its functions under this Act;

(9) to obtain from any Federal department, establishment, or agency engaged
in the disposal of Federal property such reports concerning the solicitation of bids, time of sale,
or otherwise as it may deem pertinent in carrying out its functions under this Act;

(10) to obtain from suppliers of materials information pertaining to the method
of filling orders and the bases for allocating their supply, whenever it appears that any small
business is unable to obtain materials from its normal sources;

(11) to make studies and recommendations to the appropriate Federal agencies
to insure that a fair proportion of the total purchases and contracts for property and services for
the Government be placed with small-business enterprises, to insure that a fair proportion of
Government contracts for research and development be placed with small-business concerns, to
insure that a fair proportion of the total sales of Government property be made to small-business
concerns, and to insure a fair and equitable share of materials, supplies, and equipment to
small-business concerns;

(12) to consult and cooperate with all Government agencies for the purpose of
insuring that small-business concerns shall receive fair and reasonable treatment from such
agencies;

(13) to establish such advisory boards and committees as may be necessary to
achieve the purposes of this Act and of the Small Business Investment Act of 1958; to call
meetings of such boards and committees from time to time; to pay the transportation expenses
and a per diem allowance in accordance with Section 5703 of title 5, United States Code, to the
members of such boards and committees for travel and subsistence expenses incurred at the
request of the Administration in connection with travel to points more than fifty miles distant
from the homes of such members in attending the meetings of such boards and committees; and
to rent temporarily, within the District of Columbia or elsewhere, such hotel or other
accommodations as are needed to facilitate the conduct of such meetings;

(14) to provide at the earliest practicable time such information and assistance
as may be appropriate, including information concerning eligibility for loans under section
7(b)(3), to local public agencies (as defined in section 110(h) of the Housing Act of 1949) and to
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small-business concerns to be displaced by federally aided urban renewal projects in order to
assist such small-business concerns in reestablishing their operations;

(15) to disseminate, without regard to the provisions of section 3204 of title 39,
United States Code, data and information, in such form as it shall deem appropriate, to public
agencies, private organizations, and the general public;

(16) to make studies of matters materially affecting the competitive strength of
small business, and of the effect on small business of Federal laws, programs, and regulations,
and to make recommendations to the appropriate Federal agency or agencies for the adjustment
of such programs and regulations to the needs of small business; and

(17) to make grants to, and enter into contracts and cooperative agreements
with, educational institutions, private businesses, veterans nonprofit community-based
organizations, and Federal, State, and local departments and agencies for the establishment and
implementation of outreach programs for disabled veterans (as defined in section 4211(3) of title
38, United States Code), veterans, and members of a reserve component of the Armed Forces.

(c) [Reserved].

(d) (1) It is the policy of the United States that small business concerns, small
business concerns owned and controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and economically disadvantaged individuals
and small business concerns owned and controlled by women, shall have the maximum
practicable opportunity to participate in the performance of contracts let by any Federal agency,
including contracts and subcontracts for subsystems, assemblies, components, and related
services for major systems. It is further the policy of the United States that its prime contractors
establish procedures to ensure the timely payment of amounts due pursuant to the terms of their
subcontracts with small business concerns, small business concerns owned and controlled by
veterans, small business concerns owned and controlled by service-disabled veterans, qualified
HUBZone small business concerns, small business concerns owned and controlled by socially
and economically disadvantaged individuals, and small business concerns owned and controlled
by women.

(2) The clause stated in paragraph (3) shall be included in all contracts let by
any Federal agency except any contract which

(A) does not exceed the simplified acquisition threshold;

(B) including all subcontracts under such contracts will be performed
entirely outside of any State, territory, or possession of the United States, the District of
Columbia, or the Commonwealth of Puerto Rico; or

(C) is for services which are personal in nature.

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(3) The clause required by paragraph (2) shall be as follows:

(A) It is the policy of the United States that small business concerns,
small business concerns owned and controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and economically disadvantaged individuals,
and small business concerns owned and controlled by women shall have the maximum
practicable opportunity to participate in the performance of contracts let by any Federal agency,
including contracts and subcontracts for subsystems, assemblies, components, and related
services for major systems. It is further the policy of the United States that its prime contractors
establish procedures to ensure the timely payment of amounts due pursuant to the terms of their
subcontracts with small business concerns, small business concerns owned and controlled by
veterans, small business concerns owned and controlled by service-disabled veterans, qualified
by women.

(B) The contractor hereby agrees to carry out this policy in the awarding
of subcontracts to the fullest extent consistent with the efficient performance of this contract.
The contractor further agrees to cooperate in any studies or surveys as may be conducted by the
United States Small Business Administration or the awarding agency of the United States as may
be necessary to determine the extent of the contractor's compliance with this clause.

(C) As used in this contract, the term small business concern shall
mean a small business as defined pursuant to section 3 of the Small Business Act and relevant
regulations promulgated pursuant thereto. The term small business concern owned and
controlled by socially and economically disadvantaged individuals shall mean a small business
concern

(i) which is at least 51 per centum owned by one or more socially
and economically disadvantaged individuals; or, in the case of any publicly owned business, at
least 51 per centum of the stock of which is owned by one or more socially and economically
disadvantaged individuals; and

(ii) whose management and daily business operations are
controlled by one or more of such individuals.

The contractor shall presume that socially and economically
disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans,
Asian Pacific Americans, and other minorities, or any other individual found to be disadvantaged
by the Administration pursuant to section 8(a) of the Small Business Act.

(D) The term small business concern owned and controlled by women
shall mean a small business concern

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(i) which is at least 51 per centum owned by one or more
women; or, in the case of any publicly owned business, at least 51 per centum of the stock of
which is owned by one or more women; and

controlled by one or more women.

(E) The term small business concern owned and controlled by
veterans shall mean a small business concern

(i) which is at least 51 per centum owned by one or more
eligible veterans; or, in the case of any publicly owned business, at least 51 per centum of the
stock of which is owned by one or more veterans; and

controlled by such veterans. The contractor shall treat as veterans all individuals who are
veterans within the meaning of the term under section 3(q) of the Small Business Act.

(F) Contractors acting in good faith may rely on written
representations by their subcontractors regarding their status as either a small business concern,
small business concerns owned and controlled by veterans, small business concerns owned and
controlled by service-disabled veterans, a small business concern owned and controlled by
socially and economically disadvantaged individuals, or a small business concern owned and
controlled by women.

(G) In this contract, the term qualified HUBZone small business
concern has the meaning given that term in section 3(p) of the Small Business Act.

(4) (A) Each solicitation of an offer for a contract to be let by a Federal
agency which is to be awarded pursuant to the negotiated method of procurement and which may
exceed $1,000,000, in the case of a contract for the construction of any public facility, or
$500,000, in the case of all other contracts, shall contain a clause notifying potential offering
companies of the provisions of this subsection relating to contracts awarded pursuant to the
negotiated method of procurement.

(B) Before the award of any contract to be let, or any amendment or
modification to any contract let, by any Federal agency which

(i) is to be awarded, or was let, pursuant to the negotiated
method of procurement;

(ii) is required to include the clause stated in paragraph (3),

(iii) may exceed $1,000,000 in the case of a contract for the
construction of any public facility, or $500,000 in the case of all other contracts, and

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(iv) which offers subcontracting possibilities,

the apparent successful offeror shall negotiate with the procurement authority a subcontracting
plan which incorporates the information prescribed in paragraph (6). The subcontracting plan
shall be included in and made a material part of the contract.

(C) If, within the time limit prescribed in regulations of the Federal
agency concerned, the apparent successful offeror fails to negotiate the subcontracting plan
required by this paragraph, such offeror shall become ineligible to be awarded the contract. Prior
compliance of the offeror with other such subcontracting plans shall be considered by the Federal
agency in determining the responsibility of that offeror for the award of the contract.

(D) No contract shall be awarded to any offeror unless the procurement
authority determines that the plan to be negotiated by the offeror pursuant to this paragraph
provides the maximum practicable opportunity for small business concerns, qualified HUBZone
small business concerns, small business concerns owned and controlled by veterans, small
business concerns owned and controlled by service-disabled veterans, small business concerns
owned and controlled by socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women to participate in the performance of the
contract.

(E) Notwithstanding any other provision of law, every Federal agency,
in order to encourage subcontracting opportunities for small business concerns, small business
concerns owned and controlled by veterans, small business concerns owned and controlled by
service-disabled veterans, qualified HUBZone small business concerns, and small business
concerns owned and controlled by the socially and economically disadvantaged individuals as
defined in paragraph (3) of this subsection and for small business concerns owned and controlled
by women, is hereby authorized to provide such incentives as such Federal agency may deem
appropriate in order to encourage such subcontracting opportunities as may be commensurate
with the efficient and economical performance of the contract: Provided, That, this
subparagraph shall apply only to contracts let pursuant to the negotiated method of procurement.

(F) (i) Each contract subject to the requirements of this paragraph
or paragraph (5) shall contain a clause for the payment of liquidated damages upon a finding that
a prime contractor has failed to make a good faith effort to comply with the requirements
imposed on such contractor by this subsection.

(ii) The contractor shall be afforded an opportunity to
demonstrate a good faith effort regarding compliance prior to the contracting officer's final
decision regarding the imposition of damages and the amount thereof. The final decision of a
contracting officer regarding the contractor's obligation to pay such damages, or the amounts
thereof, shall be subject to the Contract Disputes Act of 1978 (41 U.S.C. 601-613).

(iii) Each agency shall ensure that the goals offered by the
apparent successful bidder or offeror are attainable in relation to

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(I) the subcontracting opportunities available to the
contractor, commensurate with the efficient and economical performance of the contract;

(II) the pool of eligible subcontractors available to
fulfill the subcontracting opportunities; and

(III) the actual performance of such contractor in
fulfilling the subcontracting goals specified in prior plans.

(G) The following factors shall be designated by the Federal agency as
significant factors for purposes of evaluating offers for a bundled contract where the head of the
agency determines that the contract offers a significant opportunity for subcontracting:

(i) A factor that is based on the rate provided under the
subcontracting plan for small business participation in the performance of the contract.

(ii) For the evaluation of past performance of an offeror, a
factor that is based on the extent to which the offeror attained applicable goals for small business
participation in the performance of contracts.

(5) (A) Each solicitation of a bid for any contract to be let, or any
amendment or modification to any contract let, by any Federal agency which

(i) is to be awarded pursuant to the formal advertising method
of procurement,

(ii) is required to contain the clause stated in paragraph (3) of
this subsection,

(iii) may exceed $1,000,000 in the case of a contract for the
construction of any public facility, or $500,000, in the case of all other contracts, and

(iv) offers subcontracting possibilities,

shall contain a clause requiring any bidder who is selected to be awarded a contract to submit to
the Federal agency concerned a subcontracting plan which incorporates the information
prescribed in paragraph (6).

(B) If, within the time limit prescribed in regulations of the Federal
agency concerned, the bidder selected to be awarded the contract fails to submit the
subcontracting plan required by this paragraph, such bidder shall become ineligible to be
awarded the contract. Prior compliance of the bidder with other such subcontracting plans shall
be considered by the Federal agency in determining the responsibility of such bidder for the
award of the contract. The subcontracting plan of the bidder awarded the contract shall be
included in and made a material part of the contract.

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(6) Each subcontracting plan required under paragraph (4) or (5) shall
include

(A) percentage goals for the utilization as subcontractors of small
business concerns, small business concerns owned and controlled by veterans, small business
concerns owned and controlled by service-disabled veterans, qualified HUBZone small business
concerns, small business concerns owned and controlled by socially and economically
disadvantaged individuals, and small business concerns owned and controlled by women;

(B) the name of an individual within the employ of the offeror or
bidder who will administer the subcontracting program of the offeror or bidder and a description
of the duties of such individual;

(C) a description of the efforts the offeror or bidder will take to assure
that small business concerns, small business concerns owned and controlled by veterans, small
business concerns owned and controlled by service-disabled veterans, qualified HUBZone small
business concerns, small business concerns owned and controlled by the socially and
economically disadvantaged individuals, and small business concerns owned and controlled by
women will have an equitable opportunity to compete for subcontracts;

(D) assurances that the offeror or bidder will include the clause
required by paragraph (2) of this subsection in all subcontracts which offer further
subcontracting opportunities, and that the offeror or bidder will require all subcontractors (except
small business concerns) who receive subcontracts in excess of $1,000,000 in the case of a
contract for the construction of any public facility, or in excess of $500,000 in the case of all
other contracts, to adopt a plan similar to the plan required under paragraph (4) or (5);

(E) assurances that the offeror or bidder will submit such periodic
reports and cooperate in any studies or surveys as may be required by the Federal agency or the
Administration in order to determine the extent of compliance by the offeror or bidder with the
subcontracting plan; and

(F) a recitation of the types of records the successful offeror or bidder
will maintain to demonstrate procedures which have been adopted to comply with the
requirements and goals set forth in this plan, including the establishment of source lists of small
business concerns, small business concerns owned and controlled by veterans, small business
concerns owned and controlled by service-disabled veterans, qualified HUBZone small business
concerns, small business concerns owned and controlled by socially and economically
disadvantaged individuals, and small business concerns owned and controlled by women; and
efforts to identify and award subcontracts to such small business concerns.

(7) The provisions of paragraph (4), (5), and (6) shall not apply to offerors or
bidders who are small business concerns.

(8) The failure of any contractor or subcontractor to comply in good faith
with
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(A) the clause contained in paragraph (3) of this subsection, or

(B) any plan required of such contractor pursuant to the authority of
this subsection to be included in its contract or subcontract,

shall be a material breach of such contract or subcontract.

(9) Nothing contained in this subsection shall be construed to supersede the
requirements of Defense Manpower Policy Number 4A (32A CFR Chap. 1) or any successor
policy.

(10) In the case of contracts within the provisions of paragraphs (4), (5), and
(6), the Administration is authorized to

(A) assist Federal agencies and businesses in complying with their
responsibilities under the provisions of this subsection, including the formulation of
subcontracting plans pursuant to paragraph (4);

(B) review any solicitation for any contract to be let pursuant to
paragraphs (4) and (5) to determine the maximum practicable opportunity for small business
concerns, small business concerns owned and controlled by veterans, small business concerns
owned and controlled by service-disabled veterans, qualified HUBZone small business concerns,
small business concerns owned and controlled by socially and economically disadvantaged
individuals, and small business concerns owned and controlled by women to participate as
subcontractors in the performance of any contract resulting from any solicitation, and to submit
its findings, which shall be advisory in nature, to the appropriate Federal agency; and

(C) evaluate compliance with subcontracting plans, either on a
contract-by-contract basis, or in the case contractors [sic] having multiple contracts, on an
aggregate basis.

(11) For purposes of determining the attainment of a subcontract utilization
goal under any subcontracting plan entered into with any executive agency pursuant to this
subsection, a mentor firm providing development assistance to a protg firm under the pilot
Mentor-Protg Program established pursuant to section 831 of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 USC 2301 note) shall be
granted credit for such assistance in accordance with subsection (g) of such section.

(e) (1) Except as provided in subsection (g)

(A) an executive agency intending to

(i) solicit bids or proposals for a contract for property or
services for a price expected to exceed $25,000;

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(ii) place an order, expected to exceed $25,000, under a basic
agreement, basic ordering agreement, or similar arrangement,

shall furnish for publication by the Secretary of Commerce a notice described in subsection (b)
of this section;

(B) an executive agency intending to solicit bids or proposals for a
contract for property or services shall post, for a period of not less than ten days, in a public
place at the contracting office issuing the solicitation a notice of solicitation described in
subsection (f)

(i) in the case of an executive agency other than the
Department of Defense, if the contract is for a price expected to exceed $10,000, but not to
exceed $25,000; and

(ii) in the case of the Department of Defense, if the contract is
for a price expected to exceed $5,000, but not to exceed $25,000; and

(C) an executive agency awarding a contract for property or services
for a price exceeding $100,000, or placing an order referred to in clause (A)(ii) exceeding
$100,000, shall furnish for publication by the Secretary of Commerce a notice announcing the
award or order if there is likely to be any subcontract under such contract or order.

(2) The Secretary of Commerce shall publish promptly in the Commerce
Business Daily each notice required by paragraph (1).

(3) Whenever an executive agency is required by paragraph (1)(A) to furnish
a notice to the Secretary of Commerce, such executive agency may not

(A) issue the solicitation earlier than 15 days after the date on which
the notice is published by the Secretary of Commerce; or

(B) in the case of a contract or order estimated to be greater than the
simplified acquisition threshold, establish a deadline for the submission of all bids or proposals
in response to the notice required by paragraph (1)(A) that

(i) in the case of an order under a basic agreement, basic
ordering agreement, or similar arrangement, is earlier than the date 30 days after the date the
notice required by paragraph (1)(A)(ii) is published;

(ii) in the case of a solicitation for research and development, is
earlier than the date 45 days after the date the notice required by paragraph (1)(A)(i) is
published; or

(iii) in any other case, is earlier than the date 30 days after the
date the solicitation is issued.
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(f) Each notice of solicitation required by subparagraph (A) or (B) of subsection
(e)(1) shall include

(1) an accurate description of the property or services to be contracted for,
which description (A) shall not be unnecessarily restrictive of competition, and (B) shall include,
as appropriate, the agency nomenclature, National Stock Number or other part number, and a
brief description of the item's form, fit, or function, physical dimensions, predominant material
of manufacture, or similar information that will assist a prospective contractor to make an
informed business judgment as to whether a copy of the solicitation should be requested;

(2) provisions that

(A) state whether the technical data required to respond to the
solicitation will not be furnished as part of such solicitation, and identify the source in the
Government, if any, from which the technical data may be obtained; and

(B) state whether an offeror, its product, or service must meet a
qualification requirement in order to be eligible for award, and, if so, identify the office from
which a qualification requirement may be obtained;

(3) the name, business address, and telephone number of the contracting
officer;

(4) a statement that all responsible sources may submit a bid, proposal, or
quotation (as appropriate) which shall be considered by the agency;

(5) in the case of a procurement using procedures other than competitive
procedures, a statement of the reason justifying the use of such procedures and the identity of the
intended source; and

(6) in the case of a contract in an amount estimated to be greater than $25,000
but not greater than the simplified acquisition threshold

(A) a description of the procedures to be used in awarding the contract;
and

(B) a statement specifying the periods for prospective offerors and the
contracting officer to take the necessary preaward and award actions.

(g) (1) A notice is not required under subsection (e)(1) if

(A) the proposed procurement is for an amount not greater than the
simplified acquisition threshold and is to be conducted by

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(i) using widespread electronic public notice of the solicitation
in a form that allows convenient and universal user access through a single, Government-wide
point of entry; and

(ii) permitting the public to respond to the solicitation
electronically.

(B) the notice would disclose the executive agency's needs and the
disclosure of such needs would compromise the national security;

(C) the proposed procurement would result from acceptance of

(i) any unsolicited proposal that demonstrates a unique and
innovative research concept and the publication of any notice of such unsolicited research
proposal would disclose the originality of thought or innovativeness of the proposal or would
disclose proprietary information associated with the proposal; or

(ii) a proposal submitted under section 9 of this Act;

(D) the procurement is made against an order placed under a
requirements contract;

(E) the procurement is made for perishable subsistence supplies;

(F) the procurement is for utility services, other than
telecommunication services, and only one source is available; or

(G) the procurement is for the services of an expert for use in any
litigation or dispute (including preparation for any foreseeable litigation or dispute) that involves
or could involve the Federal Government in any trial, hearing, or proceeding before any court,
administrative tribunal, or agency, or in any part of an alternative dispute resolution process,
whether or not the expert is expected to testify.

(2) The requirements of subsection (a)(1)(A) do not apply to any procurement
under conditions described in paragraph (2), (3), (4), (5), or (7) of section 303(c) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)) or paragraph (2), (3), (4),
(5), or (7) of section 2304(c) of title 10, United States Code.

(3) The requirements of subsection (a)(1)(A) shall not apply in the case of any
procurement for which the head of the executive agency makes a determination in writing, after
consultation with the Administrator for Federal Procurement Policy and the Administrator of the
Small Business Administration, that it is not appropriate or reasonable to publish a notice before
issuing a solicitation.

(h) (1) An executive agency may not award a contract using procedures other
than competitive procedures unless
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(A) except as provided in paragraph (2), a written justification for the
use of such procedures has been approved

(i) in the case of a contract for an amount exceeding $100,000
(but equal to or less than $1,000,000), by the advocate for competition for the procuring activity
(without further delegation);

(ii) in the case of a contract for an amount exceeding
$1,000,000 (but equal to or less than $10,000,000), by the head of the procuring activity or a
delegate who, if a member of the Armed Forces, is a general or flag officer, or, if a civilian, is
serving in a position in grade GS-16 or above under the General Schedule (or in a comparable or
higher position under another schedule); or

(iii) in the case of a contract for an amount exceeding
$10,000,000, by the senior procurement executive of the agency designated pursuant to section
16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(3)) (without further
delegation); and

(B) all other requirements applicable to the use of such procedures
under title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et
seq.) or chapter 137 of title 10, United States Code, as appropriate, have been satisfied.

(2) The same exceptions as are provided in section 303(f)(2) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C. 253(f)(2)) or section 2304(f)(2) of
title 10, United States Code, shall apply with respect to the requirements of paragraph (1)(A) of
this subsection in the same manner as such exceptions apply to the requirements of section
303(f)(1) of such Act or section 2304(f)(1) of such title, as appropriate.

(i) An executive agency shall make available to any business concern, or the
authorized representative of such concern, the complete solicitation package for any on-going
procurement announced pursuant to a notice under subsection (e). An executive agency may
require the payment of a fee, not exceeding the actual cost of duplication, for a copy of such
package.

(j) For purposes of this section, the term executive agency has the meaning
provided such term in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C.
403(1)).

(k) NOTICES OF SUBCONTRACTING OPPORTUNITIES

(1) IN GENERAL.Notices of subcontracting opportunities may be
submitted for publication in the Commerce Business Daily by

(A) a business concern awarded a contract by an executive agency
subject to subsection (e)(1)(C); and
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(B) a business concern that is a subcontractor or supplier (at any tier)
to such contractor having a subcontracting opportunity in excess of $10,000.

(2) CONTENT OF NOTICE.The notice of a subcontracting opportunity
shall include

(A) a description of the business opportunity that is comparable to the
description specified in paragraphs (1), (2), (3), and (4) of subsection (f); and

(B) the due date for receipt of offers.

(l) MANAGEMENT ASSISTANCE FOR SMALL BUSINESSES AFFECTED BY
MILITARY OPERATIONS.The Administration shall utilize, as appropriate, its
entrepreneurial development and management assistance programs, including programs
involving State or private sector partners, to provide business counseling and training to any
small business concern adversely affected by the deployment of units of the Armed Forces of the
United States in support of a period of military conflict (as defined in section 7(n)(1)).

(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS
CONCERNS.

(1) DEFINITIONS.In this subsection, the following definitions apply:

(A) CONTRACTING OFFICER.The term contracting officer has
the meaning given such term in section 27(f)(5) of the Office of Federal Procurement Policy Act
(41 U.S.C. 423(f)(5)).

(B) SMALL BUSINESS CONCERN OWNED AND CONTROLLED
BY WOMEN.The term small business concern owned and controlled by women has the
meaning given such term in section 3(n), except that ownership shall be determined without
regard to any community property law.

(2) AUTHORITY TO RESTRICT COMPETITION.In accordance with this
subsection, a contracting officer may restrict competition for any contract for the procurement of
goods or services by the Federal Government to small business concerns owned and controlled
by women, if

(A) each of the concerns is not less than 51 percent owned by 1 or
more women who are economically disadvantaged (and such ownership is determined without
regard to any community property law);

(B) the contracting officer has a reasonable expectation that 2 or more
small business concerns owned and controlled by women will submit offers for the contract;

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(C) the contract is for the procurement of goods or services with
respect to an industry identified by the Administrator pursuant to paragraph (3);

(D) the anticipated award price of the contract (including options) does
not exceed

(i) $5,000,000, in the case of a contract assigned an industrial
classification code for manufacturing; or

(ii) $3,000,000, in the case of all other contracts;

(E) in the estimation of the contracting officer, the contract award can
be made at a fair and reasonable price; and

(F) each of the concerns

(i) is certified by a Federal agency, a State government, or a
national certifying entity approved by the Administrator, as a small business concern owned and
controlled by women; or

(ii) certifies to the contracting officer that it is a small business
concern owned and controlled by women and provides adequate documentation, in accordance
with standards established by the Administration, to support such certification.

(3) WAIVER.With respect to a small business concern owned and
controlled by women, the Administrator may waive subparagraph (2)(A) if the Administrator
determines that the concern is in an industry in which small business concerns owned and
controlled by women are substantially underrepresented.

(4) IDENTIFICATION OF INDUSTRIES.The Administrator shall conduct
a study to identify industries in which small business concerns owned and controlled by women
are underrepresented with respect to Federal procurement contracting.

(5) ENFORCEMENT; PENALTIES.

(A) VERIFICATION OF ELIGIBILITY.In carrying out this
subsection, the Administrator shall establish procedures relating to

(i) the filing, investigation, and disposition by the
Administration of any challenge to the eligibility of a small business concern to receive
assistance under this subsection (including a challenge, filed by an interested party, relating to
the veracity of a certification made or information provided to the Administration by a small
business concern under paragraph (2)(F)); and

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(ii) verification by the Administrator of the accuracy of any
certification made or information provided to the Administration by a small business concern
under paragraph (2)(F).

(B) EXAMINATIONS.The procedures established under
subparagraph (A) may provide for program examinations (including random program
examinations) by the Administrator of any small business concern making a certification or
providing information to the Administrator under paragraph (2)(F).

(C) PENALTIES.In addition to the penalties described in section
16(d), any small business concern that is determined by the Administrator to have
misrepresented the status of that concern as a small business concern owned and controlled by
women for purposes of this subsection, shall be subject to

(i) section 1001 of title 18, United States Code; and

(ii) sections 3729 through 3733 of title 31, United States Code;

(6) PROVISION OF DATA.Upon the request of the Administrator, the
head of any Federal department or agency shall promptly provide to the Administrator such
information as the Administrator determines to be necessary to carry out this subsection.

(n) BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.

(1) IN GENERAL.In accordance with this subsection, the Administrator
may make grants to enter into cooperative agreements with any coalition of private entities,
public entities, or any combination of private and public entities

(A) to expand business-to-business relationships between large and
small businesses; and

(B) to provide businesses, directly or indirectly, with online
information and a database of companies that are interested in mentor-protg programs or
community-based, statewide, or local business development programs.

(2) MATCHING REQUIREMENT.Subject to subparagraph (B), the
Administrator may make a grant to a coalition under paragraph (1) only if the coalition provides
for activities described in paragraph (1)(A) or (1)(B) an amount, either in kind or in cash, equal
to the grant amount.

(3) AUTHORIZATION OF APPROPRIATIONS.There is authorized to be
appropriated to carry out this subsection $6,600,000, to remain available until expended, for each
of fiscal years 2001 through 2006.

9. (a) Research and development are major factors in the growth and progress of
industry and the national economy. The expense of carrying on research and development
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programs is beyond the means of many small-business concerns, and such concerns are
handicapped in obtaining the benefits of research and development programs conducted at
Government expense. These small-business concerns are thereby placed at a competitive
disadvantage. This weakens the competitive free enterprise system and prevents the orderly
development of the national economy. It is the policy of the Congress that assistance be given to
small-business concerns to enable them to undertake and to obtain the benefits of research and
development in order to maintain and strengthen the competitive free enterprise system and the
national economy.

(b) It shall be the duty of the Administration, and it is hereby empowered

(l) to assist small-business concerns to obtain Government contracts for
research and development;

(2) to assist small-business concerns to obtain the benefits of research and
development performed under Government contracts or at Government expense;

(3) to provide technical assistance to small-business concerns to accomplish
the purposes of this section; and

(4) to develop and maintain a source file and an information program to
assure each qualified and interested small business concern the opportunity to participate in
Federal agency small business innovation research programs and small business technology
transfer programs;

(5) to coordinate with participating agencies a schedule for release of SBIR
and STTR solicitations, and to prepare a master release schedule so as to maximize small
businesses' opportunities to respond to solicitations;

(6) to independently survey and monitor the operation of SBIR and STTR
programs within participating Federal agencies;

(7) to report not less than annually to the Committee on Small Business of the
Senate and the Committee on Science and the Committee on Small Business of the House of
Representatives, on the SBIR and STTR programs of the Federal agencies and the
Administrations information and monitoring efforts related to the SBIR programs, including the
data on output and outcomes collected pursuant to subsections (g)(10) and (o)(9) , and (o)(15),
the number of proposals received from, and the number and total amount of awards to,
HUBZone small business concerns under each of the SBIR and STTR programs, and a
description of the extent to which Federal agencies are providing in a timely manner information
needed to maintain the database described in subsection (k); and

(8) to provide for and fully implement the tenets of Executive Order No.
13329 (Encouraging Innovation in Manufacturing).

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(c) The Administration is authorized to consult and cooperate with all Government
agencies and to make studies and recommendations to such agencies, and such agencies are
authorized and directed to cooperate with the Administration in order to carry out and to
accomplish the purposes of this section.

(d) (l) The Administrator is authorized to consult with representatives of
small-business concerns with a view to assisting and encouraging such firms to undertake joint
programs for research and development carried out through such corporate or other mechanism
as may be most appropriate for the purpose. Such joint programs may, among other things,
include the following purposes:

(A) to construct, acquire, or establish laboratories and other facilities
for the conduct of research;

(B) to undertake and utilize applied research;

(C) to collect research information related to a particular industry and
disseminate it to participating members;

(D) to conduct applied research on a protected, proprietary, and
contractual basis with member or nonmember firms, Government agencies, and others;

(E) to prosecute applications for patents and render patent services for
participating members; and

(F) to negotiate and grant licenses under patents held under the joint
program, and to establish corporations designed to exploit particular patents obtained by it.

(2) The Administrator may, after consultation with the Attorney General and
the Chairman of the Federal Trade Commission, and with the prior written approval of the
Attorney General, approve any agreement between small-business firms providing for a joint
program of research and development, if the Administrator finds that the joint program proposed
will maintain and strengthen the free enterprise system and the economy of the Nation. The
Administrator or the Attorney General may at any time withdraw his approval of the agreement
and the joint program of research and development covered thereby, if he finds that the
agreement or the joint program carried on under it is no longer in the best interests of the
competitive free enterprise system and the economy of the Nation. A copy of the statement of
any such finding and approval intended to be within the coverage of this subsection, and a copy
of any modification or withdrawal of approval, shall be published in the Federal Register. The
authority conferred by this subsection on the Administrator shall not be delegated by him.

(3) No act or omission to act pursuant to and within the scope of any joint
program for research and development, under an agreement approved by the Administrator under
this subsection, shall be construed to be within the prohibitions of the antitrust laws or the
Federal Trade Commission Act. Upon publication in the Federal Register of the notice of
withdrawal of his approval of the agreement granted under this subsection, either by the
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Administrator or by the Attorney General, the provisions of this subsection shall not apply to any
subsequent act or omission to act by reason of such agreement or approval.

(e) For the purpose of this section

(1) the term extramural budget means the sum of the total obligations minus
amounts obligated for such activities by employees of the agency in or through Government-
owned, Government-operated facilities, except that for the Department of Energy it shall not
include amounts obligated for atomic energy defense programs solely for weapons activities or
for naval reactor programs, and except that for the Agency for International Development it shall
not include amounts obligated solely for general institutional support of international research
centers or for grants to foreign countries;

(2) the term Federal agency means an executive agency as defined in
section 105 of title 5, United States Code, or a military department as defined in section 102 of
such title, except that it does not include any agency within the Intelligence Community (as the
term is defined in section 3.4(f) of Executive Order 12333 or its successor orders);

(3) the term funding agreement means any contract, grant, or cooperative
agreement entered into between any Federal agency and any small business for the performance
of experimental, developmental, or research work funded in whole or in part by the Federal
Government;

(4) the term Small Business Innovation Research Program or SBIR
means a program under which a portion of a Federal agency's research or research and
development effort is reserved for award to small business concerns through a uniform process
having

(A) a first phase for determining, insofar as possible, the scientific and
technical merit and feasibility of ideas that appear to have commercial potential, as described in
subparagraph (B), submitted pursuant to SBIR program solicitations;

(B) a second phase, to further develop proposals which meet particular
program needs, in which awards shall be made based on the scientific and technical merit and
feasibility of the proposals, as evidenced by the first phase, considering, among other things, the
proposal's commercial potential, as evidenced by

(i) the small business concern's record of successfully
commercializing SBIR or other research;

(ii) the existence of second phase funding commitments from
private sector or non-SBIR funding sources;

(iii) the existence of third phase, follow-on commitments for the
subject of the research; and

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(iv) the presence of other indicators of the commercial potential
of the idea; and

(C) where appropriate, a third phase

(i) in which commercial applications of SBIR-funded research
or research and development are funded by non-Federal sources of capital or, for products or
services intended for use by the Federal Government, by follow-on non-SBIR Federal funding
awards; or

(ii) for which awards from non-SBIR Federal funding sources
are used for the continuation of research or research and development that has been
competitively selected using peer review or scientific review criteria;

(5) the term research or research and development means any activity
which is (A) a systematic, intensive study directed toward greater knowledge or understanding of
the subject studied; (B) a systematic study directed specifically toward applying new knowledge
to meet a recognized need; or (C) a systematic application of knowledge toward the production
of useful materials, devices, and systems or methods, including design, development, and
improvement of prototypes and new processes to meet specific requirements;

(6) the term Small Business Technology Transfer Program or STTR
means a program under which a portion of a Federal agency's extramural research or research
and development effort is reserved for award to small business concerns for cooperative research
and development through a uniform process having

(A) a first phase, to determine, to the extent possible, the scientific,
technical, and commercial merit and feasibility of ideas submitted pursuant to STTR program
solicitations;

(B) a second phase, to further develop proposed ideas to meet
particular program needs, in which awards shall be made based on the scientific, technical, and
commercial merit and feasibility of the idea, as evidenced by the first phase and by other relevant
information; and

(C) where appropriate, a third phase

(i) in which commercial applications of STTR-funded research
or research and development are funded by non-Federal sources of capital or, for products or
services intended for use by the Federal Government, by follow-on non-STTR Federal funding
awards; and

(ii) for which awards from non-STTR Federal funding sources
are used for the continuation of research or research and development that has been competitively
selected using peer review or scientific review criteria;

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(7) the term cooperative research and development means research or
research and development conducted jointly by a small business concern and a research
institution in which not less than 40 percent of the work is performed by the small business
concern, and not less than 30 percent of the work is performed by the research institution;

(8) the term research institution means a nonprofit institution, as defined in
section 4(5) of the Stevenson-Wydler Technology Innovation Act of 1980, and includes federally
funded research and development centers, as identified by the National Scientific Foundation in
accordance with the governmentwide Federal Acquisition Regulation issued in accordance with
section 25(c)(1) of the Office of Federal Procurement Policy Act (or any successor regulation
thereto); and

(9) the term commercial applications shall not be construed to exclude
testing and evaluation of products, services, or technologies for use in technical or weapons
systems, and further, awards for testing and evaluation of products, services, or technologies for
use in technical or weapons systems may be made in either the second or the third phase of the
Small Business Innovation Research Program and of the Small Business Technology Transfer
Program, as defined in this subsection.

(f) FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

(1) REQUIRED EXPENDITURE AMOUNTS.Each Federal agency which
has an extramural budget for research or research and development in excess of $100,000,000 for
fiscal year 1992, or any fiscal year thereafter, shall expend with small business concerns

(A) not less than 1.5 percent of such budget in each of fiscal years
1993 and 1994;

(B) not less than 2.0 percent of such budget in each of fiscal years
1995 and 1996; and

(C) not less than 2.5 percent of such budget in each fiscal year
thereafter,

specifically in connection with SBIR programs which meet the requirements of this section,
policy directives, and regulations issued under this section.

(2) LIMITATIONS.A Federal agency shall not

(A) use any of its SBIR budget established pursuant to paragraph (1)
for the purpose of funding administrative costs of the program, including costs associated with
salaries and expenses; or

(B) make available for the purpose of meeting the requirements of
paragraph (1) an amount of its extramural budget for basic research which exceeds the
percentages specified in paragraph (1).
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(3) EXCLUSION OF CERTAIN FUNDING AGREEMENTS.Funding
agreements with small business concerns for research or research and development which result
from competitive or single source selections other than an SBIR program shall not be considered
to meet any portion of the percentage requirements of paragraph (1).

(g) Each Federal agency required by subsection (f) to establish a small business
innovation research program shall, in accordance with this Act and regulations issued
hereunder

(1) unilaterally determine categories of projects to be in its SBIR program;

(2) issue small business innovation research solicitations in accordance with a
schedule determined cooperatively with the Small Business Administration;

(3) unilaterally determine research topics within the agency's SBIR
solicitations, giving special consideration to broad research topics and to topics that further 1 or
more critical technologies, as identified by

(A) the National Critical Technologies Panel (or its successor) in the
1991 report required under section 603 of the National Science and Technology Policy,
Organization, and Priorities Act of 1976, and in subsequent reports issued under that authority;
or

(B) the Secretary of Defense, in the 1992 report issued in accordance
with section 2522 of title 10, United States Code, and in subsequent reports issued under that
authority;

(4) unilaterally receive and evaluate proposals resulting from SBIR proposals;

(5) subject to subsection (l), unilaterally select awardees for its SBIR funding
agreements and inform each awardee under such an agreement, to the extent possible, of the
expenses of the awardee that will be allowable under the funding agreement;

(6) administer its own SBIR funding agreements (or delegate such
administration to another agency);

(7) make payments to recipients of SBIR funding agreements on the basis of
progress toward or completion of the funding agreement requirements and, in all cases, make
payment to recipients under such agreements in full, subject to audit, on or before the last day of
the 12-month period beginning on the date of completion of such requirements;

(8) make an annual report on the SBIR program to the Small Business
Administration and the Office of Science and Technology Policy;

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(9) include, as part of its annual performance plan as required by subsections
(a) and (b) of section 1115 of title 31, United States Code, a section on its SBIR program, and
shall submit such section to the Committee on Small Business of the Senate, and the Committee
on Science and the Committee on Small Business of the House of Representatives;

(10) collect, and maintain in a common format in accordance with subsection
(v), such information from awardees as is necessary to assess the SBIR program, including
information necessary to maintain the database described in subsection (k); and

(11) provide for and fully implement the tenets of Executive Order No. 13329
(Encouraging Innovation in Manufacturing).

(h) In addition to the requirements of subsection (f), each Federal agency which has a
budget for research or research and development in excess of $20,000,000 for any fiscal year
beginning with fiscal year 1983 or subsequent fiscal year shall establish goals specifically for
funding agreements for research or research and development to small business concerns, and no
goal established under this subsection shall be less than the percentage of the agencys research
or research and development budget expended under funding agreements with small business
concerns in the immediately preceding fiscal year.

(i) ANNUAL REPORTING.

(1) IN GENERAL.Each Federal agency required by this section to have an
SBIR program or to establish goals shall report annually to the Small Business Administration
the number of awards pursuant to grants, contracts, or cooperative agreements over $10,000 in
amount and the dollar value of all such awards, identifying SBIR awards and comparing the
number and amount of such awards with awards to other than small business concerns.

(2) CALCULATION OF EXTRAMURAL BUDGET.

(A) METHODOLOGY.Not later than 4 months after the date of
enactment of each appropriations Act for a Federal agency required by this section to have an
SBIR program, the Federal agency shall submit to the Administrator a report, which shall include
a description of the methodology used for calculating the amount of the extramural budget of
that Federal agency.

(B) ADMINISTRATORS ANALYSIS.The Administrator shall
include an analysis of the methodology received from each Federal agency referred to in
subparagraph (A) in the report required by subsection (b)(7).

(j) (1) POLICY DIRECTIVES.The Small Business Administration, after
consultation with the Administrator of the Office of Federal Procurement Policy, the Director of
the Office of Science and Technology Policy, and the Intergovernmental Affairs Division of the
Office of Management and Budget, shall, within one hundred and twenty days of the enactment
of the Small Business Innovation Development Act of 1982, issue policy directives for the
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general conduct of the SBIR programs within the Federal Government, including providing
for

(A) simplified, standardized, and timely SBIR solicitations;

(B) a simplified, standardized funding process which provides for

(i) the timely receipt and review of proposals;

(ii) outside peer review for at least phase two proposals, if
appropriate;

(iii) protection of proprietary information provided in proposals;

(iv) selection of awardees;

(v) retention of rights in data generated in the performance of
the contract by the small business concern;

(vi) transfer of title to property provided by the agency to the
small business concern if such a transfer would be more cost effective than recovery of the
property by the agency;

(vii) cost sharing; and

(viii) cost principles and payment schedules;

(C) exemptions from the regulations under paragraph (2) if national
security or intelligence functions clearly would be jeopardized;

(D) minimizing regulatory burden associated with participation in the
SBIR program for the small business concern which will stimulate the cost-effective conduct of
Federal research and development and the likelihood of commercialization of the results of
research and development conducted under the SBIR program;

(E) simplified, standardized, and timely annual report on the SBIR
program to the Small Business Administration and the Office of Science and Technology Policy;

(F) standardized and orderly withdrawal from program participation
by an agency having a SBIR program; at the discretion of the Administration, such directives
may require a phased withdrawal over a period of time sufficient in duration to minimize any
adverse impact on small business concerns; and

(G) the voluntary participation in a SBIR program by a Federal agency
not required to establish such a program pursuant to subsection (f).

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(2) MODIFICATIONS.Not later than 90 days after the enactment of the
Small Business Research and Development Enhancement Act of 1992, the Administrator shall
modify the policy directives issued pursuant to this subsection to provide for

(A) retention by a small business concern of the rights to data
generated by the concern in the performance of an SBIR award for a period of not less than 4
years;

(B) continued use by a small business concern participating in the third
phase of the SBIR program, as a directed bailment, of any property transferred by a Federal
agency to the small business concern in the second phase of an SBIR program for a period of not
less than 2 years, beginning on the initial date of the concern's participation in the third phase of
such program;

(C) procedures to ensure, to the extent practicable, that an agency
which intends to pursue research, development, or production of a technology developed by a
small business concern under an SBIR program enters into follow-on non-SBIR funding
agreements with the small business concern for such research, development, or production;

(D) an increase to $100,000 in the first phase of an SBIR program, and
to $750,000 in the second phase of an SBIR program, and an adjustment of such amounts once
every 5 years to reflect economic adjustments and programmatic considerations;

(E) a process for notifying the participating SBIR agencies and
potential SBIR participants of the 1991, 1992, and the current critical technologies, as
identified

(i) by the National Critical Technologies Panel (or its
successor), in accordance with section 603 of the National Science and Technology Policy,
Organization, and Priorities Act of 1976; or

(ii) by the Secretary of Defense, in accordance with section
2522 of title 10, United States Code;

(F) enhanced outreach efforts to increase the participation of socially
and economically disadvantaged small business concerns, as defined in section 8(a)(4), and the
participation of small businesses that are 51 percent owned and controlled by women in
technological innovation and in SBIR programs, including the third phase of such programs, and
the collection of data to document such participation;

(G) technical and programmatic guidance to encourage agencies to
develop gap-funding programs to address the delay between an award for the first phase of an
SBIR program and the application for and extension of an award for the second phase of such
program;

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(H) procedures to ensure that a small business concern that submits a
proposal for a funding agreement for the first phase of an SBIR program and that has received
more than 15 second phase SBIR awards during the preceding 5 fiscal years is able to
demonstrate the extent to which it was able to secure third phase funding to develop concepts
resulting from previous second phase SBIR awards; and

(I) procedures to ensure that agencies participating in the SBIR
program retain the information submitted under subparagraph (H) at least until the Government
Accountability Office submits the report required under section 105 of the Small Business
Research and Development Enhancement Act of 1992.

(3) ADDITIONAL MODIFICATIONS.Not later than 120 days after the
date of enactment of the Small Business Innovation Research Program Reauthorization Act of
2000, the Administrator shall modify the policy directives issued pursuant to this subsection

(A) to clarify that the rights provided for under paragraph (2)(A) apply
to all Federal funding awards under this section, including the first phase (as described in
subsection (e)(4)(A)), the second phase (as described in subsection (e)(4)(B)), and the third
phase (as described in subsection (e)(4)(C));

(B) to provide for the requirement of a succinct commercialization
plan with each application for a second phase award that is moving toward commercialization;

(C) to require agencies to report to the Administration, not less
frequently than annually, all instances in which an agency pursued research, development, or
production of a technology developed by a small business concern using an award made under
the SBIR program of that agency, and determined that it was not practicable to enter into a
follow-on non-SBIR program funding agreement with the small business concern, which report
shall include, at a minimum

(i) the reasons why the follow-on funding agreement with the
small business concern was not practicable;

(ii) the identity of the entity with which the agency contracted
to perform the research, development, or production; and

(iii) a description of the type of funding agreement under which
the research, development, or production was obtained; and

(D) to implement subsection (v), including establishing standardized
procedures for the provision of information pursuant to subsection (k)(3).

(k) DATABASE.

(1) PUBLIC DATABASE.Not later than 180 days after the date of
enactment of the Small Business Innovation Research Program Reauthorization Act of 2000, the
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Administrator shall develop, maintain, and make available to the public a searchable, up-to-date,
electronic database that includes

(A) the name, size, location, and an identifying number assigned by the
Administrator, of each small business concern that has received a first phase or second phase
SBIR or STTR award from a Federal agency;

(B) a description of each first phase or second phase SBIR or STTR
award received by that small business concern, including

(i) an abstract of the project funded by the award, excluding
any proprietary information so identified by the small business concern;

(ii) the Federal agency making the award; and

(iii) the date and amount of the award;

(C) an identification of any business concern or subsidiary established
for the commercial application of a product or service for which an SBIR or STTR award is
made;

(D) information regarding mentors and Mentoring Networks, as
required by section 35(d); and

(E) with respect to assistance under the STTR program only

(i) whether the small business concern or the research
institution initiated their collaboration on each assisted STTR project;

(ii) whether the small business concern or the research
institution originated any technology relating to the assisted STTR project;

(iii) the length of time it took to negotiate any licensing
agreement between the small business concern and the research institution under each assisted
STTR project; and

(iv) how the proceeds from commercialization, marketing, or
sale of technology resulting from each assisted STTR project were allocated (by percentage)
between the small business concern and the research institution.

(2) GOVERNMENT DATABASE.Not later than 180 days after the date of
enactment of the Small Business Innovation Research Program Reauthorization Act of 2000, the
Administrator, in consultation with Federal agencies required to have an SBIR program pursuant
to subsection (f)(1) or an STTR program pursuant to subsection (n)(1), shall develop and
maintain a database to be used exclusively for SBIR and STTR program evaluation that

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(A) contains for each second phase award made by a Federal agency

(i) information collected in accordance with paragraph (3) on
revenue from the sale of new products or services resulting from the research conducted under
the award;

(ii) information collected in accordance with paragraph (3) on
additional investment from any source, other than first phase or second phase SBIR or STTR
awards, to further the research and development conducted under the award; and

(iii) any other information received in connection with the
award that the Administrator, in conjunction with the SBIR and STTR program managers of
Federal agencies, considers relevant and appropriate;

(B) includes any narrative information that a small business concern
receiving a second phase award voluntarily submits to further describe the outputs and outcomes
of its awards;

(C) includes for each applicant for a first phase or second phase award
that does not receive such an award

(i) the name, size, and location, and an identifying number
assigned by the Administration;

(ii) an abstract of the project; and

(iii) the Federal agency to which the application was made;

(D) includes any other data collected by or available to any Federal
agency that such agency considers may be useful for SBIR or STTR program evaluation; and

(E) is available for use solely for program evaluation purposes by the
Federal Government or, in accordance with policy directives issued by the Administration, by
other authorized persons who are subject to a use and nondisclosure agreement with the Federal
Government covering the use of the database.

(3) UPDATING INFORMATION FOR DATABASE.

(A) IN GENERAL.A small business concern applying for a second
phase award under this section shall be required to update information in the database established
under this subsection for any prior second phase award received by that small business concern.
In complying with this paragraph, a small business concern may apportion sales or additional
investment information relating to more than one second phase award among those awards, if it
notes the apportionment for each award.

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(B) ANNUAL UPDATES UPON TERMINATION.A small
business concern receiving a second phase award under this section shall

(i) update information in the database concerning that award at
the termination of the award period; and

(ii) be requested to voluntarily update such information
annually thereafter for a period of 5 years.

(4) PROTECTION OF INFORMATION.Information provided under
paragraph (2) shall be considered privileged and confidential and not subject to disclosure
pursuant to section 552 of title 5, Untied States Code.

(5) RULE OF CONSTRUCTION.Inclusion of information in the database
under this subsection shall not be considered to be publication for purposes of subsection (a) or
(b) of section 102 of title 35, United States Code.

(l) REPORTING OF AWARDS MADE FROM SINGLE PROPOSAL, TO
MULTIPLE AWARD WINNERS, OR TO CRITICAL TECHNOLOGY TOPICS

(1) SINGLE PROPOSAL.If a Federal agency required to establish an SBIR
program under subsection (f) makes an award with respect to an SBIR solicitation topic or
subtopic for which the agency received only 1 proposal, the agency shall provide written
justification for making the award in its next quarterly report to the Administration and in the
agency's next annual report required under subsection (g)(8).

(2) MULTIPLE AWARDS.An agency referred to in paragraph (1) shall
include in its next annual report required under subsection (g)(8) an accounting of the awards the
agency has made for the first phase of an SBIR program during the reporting period to entities
that have received more than 15 awards for the second phase of an SBIR program during the
preceding 5 fiscal years.

(3) CRITICAL TECHNOLOGY AWARDS.An agency referred to in
paragraph (1) shall include in its next annual report required under subsection (g)(8) an
accounting of the number of awards it has made to critical technology topics, as defined in
subsection (g)(3), including an identification of the specific critical technologies topics, and the
percentage by number and dollar amount of the agency's total SBIR awards to such critical
technology topics.

(m) TERMINATION.The authorization to carry out the Small Business Innovation
Research Program under this section shall terminate on September 30, 2008.

(n) REQUIRED EXPENDITURES FOR STTR BY FEDERAL AGENCIES.

(1) REQUIRED EXPENDITURE AMOUNTS.

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(A) IN GENERAL.With respect to each fiscal year through fiscal
year 2009, each Federal agency that has an extramural budget for research, or research and
development, in excess of $1,000,000,000 for that fiscal year, shall expend with small business
concerns not less than the percentage of that extramural budget specified in subparagraph (B),
specifically in connection with STTR programs that meet the requirements of this section and
any policy directives and regulations issued under this section.

(B) EXPENDITURE AMOUNTS.The percentage of the extramural
budget required to be expended by an agency in accordance with subparagraph (A) shall be

(i) 0.15 percent for each fiscal year through fiscal year 2003;
and

(ii) 0.3 percent for fiscal year 2004 and each fiscal year
thereafter.

(2) LIMITATIONS.A Federal agency shall not

(A) use any of its STTR budget established pursuant to paragraph (1)
for the purpose of funding administrative costs of the program, including costs associated with
salaries and expenses, or, in the case of a small business concern or a research institution, costs
associated with salaries, expenses, and administrative overhead (other than those direct or
indirect costs allowable under guidelines of the Office of Management and Budget and the
governmentwide Federal Acquisition Regulation issued in accordance with section 25(c)(1) of
the Office of Federal Procurement Policy Act); or

(B) make available for the purpose of meeting the requirements of
paragraph (1) an amount of its extramural budget for basic research which exceeds the
percentage specified in paragraph (1).

(3) EXCLUSION OF CERTAIN FUNDING AGREEMENTS.Funding
agreements with small business concerns for research or research and development which result
from competitive or single source selections other than an STTR program shall not be considered
to meet any portion of the percentage requirements of paragraph (1).

(o) FEDERAL AGENCY STTR AUTHORITY.Each Federal agency required to
establish an STTR program in accordance with subsection (n) and regulations issued under this
Act, shall

(1) unilaterally determine categories of projects to be included in its STTR
program;

(2) issue STTR solicitations in accordance with a schedule determined
cooperatively with the Administration;

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(3) unilaterally determine research topics within the agencys STTR
solicitations, giving special consideration to broad research topics and to topics that further 1 or
more critical technologies, as identified

(A) by the National Critical Technologies Panel (or its successor) in
reports required under section 603 of the National Science and Technology Policy, Organization,
and Priorities Act of 1976; or

(B) by the Secretary of Defense, in accordance with section 2522 of
title 10, United States Code;

(4) unilaterally receive and evaluate proposals resulting from STTR
solicitations;

(5) unilaterally select awardees for its STTR funding agreements and inform
each awardee under such an agreement, to the extent possible, of the expenses of the awardee
that will be allowable under the funding agreement;

(6) administer its own STTR funding agreements (or delegate such
administration to another agency);

(7) make payments to recipients of STTR funding agreements on the basis of
progress toward or completion of the funding agreement requirements and, in all cases, make
payment to recipients under such agreements in full, subject to audit, on or before the last day of
the 12-month period beginning on the date of the completion of such requirements;

(8) include, as part of its annual performance plan as required by subsections
(a) and (b) of section 1115 of title 31, United States Code, a section on its STTR program, and
shall submit such section to the Committee on Small Business of the Senate, and the Committee
on Science and the Committee on Small Business of the House of Representatives;

(9) collect such data from awardees as is necessary to assess STTR program
outputs and outcomes;

(10) submit an annual report on the STTR program to the Administration and
the Office of Science and Technology Policy;

(11) adopt the agreement developed by the Administrator under subsection (w)
as the agencys model agreement for allocating between small business concerns and research
institutions intellectual property rights and rights, if any, to carry out follow-on research,
development, or commercialization;

(12) develop, in consultation with the Office of Federal Procurement Policy
and the Office of Government Ethics, procedures to ensure that federally funded research and
development centers (as defined in subsection (e)(8)) that participate in STTR agreements

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(A) are free from organizational conflicts of interests relative to the
STTR program;

(B) do not use privileged information gained through work performed
for an STTR agency or private access to STTR agency personnel in the development of an STTR
proposal; and

(C) use outside peer review, as appropriate; and

(13) not later than J uly 31, 1993, develop procedures for assessing the
commercial merit and feasibility of STTR proposals, as evidenced by

(A) the small business concern's record of successfully commercializing
STTR or other research;

(B) the existence of second phase funding commitments from private
sector or non-STTR funding sources;

(C) the existence of third phase follow-on commitments for the subject
of the research; and

(D) the presence of other indicators of the commercial potential of the
idea.

(14) implement an outreach program to research institutions and small business
concerns for the purpose of enhancing its STTR program, in conjunction with any such outreach
done for purposes of the SBIR program;

(15) collect, and maintain in a common format in accordance with subsection
(v), such information from awardees as is necessary to assess the STTR program, including
information necessary to maintain the database described in subsection (k); and

(16) provide for and fully implement the tenets of Executive Order No. 13329
(Encouraging Innovation in Manufacturing).

(p) STTR POLICY DIRECTIVE.

(1) ISSUANCE.The Administrator shall issue a policy directive for the
general conduct of the STTR programs within the Federal Government. Such policy directive
shall be issued after consultation with

(A) the heads of each of the Federal agencies required by subsection
(n) to establish an STTR program;

(B) the Under Secretary of Commerce for Intellectual Property and
Director of the United States Patent and Trademark Office; and
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(C) the Director of the Office of Federal Procurement Policy.

(2) CONTENTS.The policy directive required by paragraph (1) shall
provide for

(A) simplified, standardized, and timely STTR solicitations;

(B) a simplified, standardized funding process that provides for

(i) the timely receipt and review of proposals;

(ii) outside peer review, if appropriate;

(iii) protection of proprietary information provided in proposals;

(iv) selection of awardees;

(v) retention by a small business concern of the rights to data
generated by the concern in the performance of an STTR award for a period of not less than 4
years;

(vi) continued use by a small business concern, as a directed
bailment, of any property transferred by a Federal agency to the small business concern in the
second phase of the STTR program for a period of not less than 2 years, beginning on the initial
date of the concern's participation in the third phase of such program;

(vii) cost sharing;

(viii) cost principles and payment schedules; and

(ix) 1-year awards for the first phase of an STTR program,
generally not to exceed $100,000 and 2-year awards for the second phase of an STTR program,
generally not to exceed $750,000, greater or lesser amounts to be awarded at the discretion of the
awarding agency, and shorter or longer periods of time to be approved at the discretion of the
awarding agency where appropriate for a particular project;

(C) minimizing regulatory burdens associated with participation in
STTR programs;

(D) guidelines for a model agreement, to be used by all agencies, for
allocating between small business concerns and research institutions intellectual property rights
and rights, if any, to carry out follow-on research, development, or commercialization;

(E) procedures to ensure that

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(i) a recipient of an STTR award is a small business concern,
as defined in section 3 and the regulations promulgated thereunder; and

(ii) such small business concern exercises management and
control of the performance of the STTR funding agreement pursuant to a business plan providing
for the commercialization of the technology that is the subject matter of the award; and

(F) procedures to ensure, to the extent practicable, that an agency
which intends to pursue research, development, or production of a technology developed by a
small business concern under an STTR program enters into follow-on, non-STTR funding
agreements with the small business concern for such research, development, or production.

(3) MODIFICATIONS.Not later than 120 days after the date of enactment of
this paragraph, the Administrator shall modify the policy directive issued pursuant to this
subsection to clarify that the rights provided for under paragraph (2)(B)(v) apply to all Federal
funding awards under this section, including the first phase (as described in subsection (e)(6)(A)),
the second phase (as described in subsection (e)(6)(B)), and the third phase (as described in
subsection (e)(6)(C)).

(q) DISCRETIONARY TECHNICAL ASSISTANCE.

(1) IN GENERAL.Each Federal agency required by this section to conduct
an SBIR program may enter into an agreement with a vendor selected under paragraph (2) to
provide small business concerns engaged in SBIR projects with technical assistance services,
such as access to a network of scientists and engineers engaged in a wide range of technologies,
or access to technical and business literature available through on-line data bases, for the purpose
of assisting such concerns in

(A) making better technical decisions concerning such projects;

(B) solving technical problems which arise during the conduct of such
projects;

(C) minimizing technical risks associated with such projects; and

(D) developing and commercializing new commercial products and
processes resulting from such projects.

(2) VENDOR SELECTION.Each agency may select a vendor to assist
small business concerns to meet the goals listed in paragraph (1) for a term not to exceed 3 years.
Such selection shall be competitive and shall utilize merit-based criteria.

(3) ADDITIONAL TECHNICAL ASSISTANCE.

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(A) FIRST PHASE.Each agency referred to in paragraph (1) may
provide services described in paragraph (1) to first phase SBIR award recipients in an amount
equal to not more than $4,000, which shall be in addition to the amount of the recipient's award.

(B) SECOND PHASE.Each agency referred to in paragraph (1) may
authorize any second phase SBIR award recipient to purchase, with funds available from their
SBIR awards, services described in paragraph (1), in an amount equal to not more than $4,000
per year.

(r) THIRD PHASE AGREEMENTS.

(1) IN GENERAL.In the case of a small business concern that is awarded a
funding agreement for the second phase of an SBIR or STTR program, a Federal agency may enter
into a third phase agreement with that business concern for additional work to be performed during
or after the second phase period. The second phase funding agreement with the small business
concern may, at the discretion of the agency awarding the agreement, set out the procedures
applicable to third phase agreements with that agency or any other agency.

(2) DEFINITION.In this subsection, the term third phase agreement
means a follow-on, non-SBIR or non-STTR funded contract as described in paragraph (4)(C) or
paragraph (6)(C) of subsection (e).

(3) INTELLECTUAL PROPERTY RIGHTS.Each funding agreement
under an SBIR or STTR program shall include provisions setting forth the respective rights of
the United States and the small business concern with respect to intellectual property rights and
with respect to any right to carry out follow-on research.

(s) OUTREACH.

(1) DEFINITION OF ELIGIBLE STATE.In this subsection, the term
eligible State means a State

(A) if the total value of contracts awarded to the State during fiscal
year 1995 under this section was less than $5,000,000; and

(B) that certifies to the Administration described in paragraph (2) that
the State will, upon receipt of assistance under this subsection, provide matching funds from
non-Federal sources in an amount that is not less than 50 percent of the amount provided under
this subsection.

(2) PROGRAM AUTHORITY.Of amounts made available to carry out this
section for each of the fiscal years 2000 through 2005 the Administrator may expend with
eligible States not more than $2,000,000 in each such fiscal year in order to increase the
participation of small business concerns located in those States in the programs under this
section.

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(3) AMOUNT OF ASSISTANCE.The amount of assistance provided to an
eligible State under this subsection in any fiscal year

(A) shall be equal to twice the total amount of matching funds from
non-Federal sources provided by the State; and

(B) shall not exceed $100,000.

(4) USE OF ASSISTANCE.Assistance provided to an eligible State under
this subsection shall be used by the State, in consultation with State and local departments and
agencies, for programs and activities to increase the participation of small business concerns
located in the State in the programs under this section, including

(A) the establishment of quantifiable performance goals, including
goals relating to

(i) the number of program awards under this section made to
small business concerns in the State; and

(ii) the total amount of Federal research and development
contracts awarded to small business concerns in the State;

(B) the provision of competition outreach support to small business
concerns in the State that are involved in research and development; and

(C) the development and dissemination of educational and promotional
information relating to the programs under this section to small business concerns in the State.

(t) INCLUSION IN STRATEGIC PLANS.Program information relating to the
SBIR and STTR programs shall be included by each Federal agency in any update or revision
required of the Federal agency under section 306(b) of title 5, United States.

(u) COORDINATION OF TECHNOLOGY DEVELOPMENT PROGRAMS.

(1) DEFINITION OF TECHNOLOGY DEVELOPMENT PROGRAM.In
this subsection, the term technology development program means

(A) the Experimental Program to Stimulate Competitive Research of
the National Science Foundation, as established under section 113 of the National Science
Foundation Authorization Act of 1988 (42 U.S.C. 1862g);

(B) the Defense Experimental Program to Stimulate Competitive
Research of the Department of Defense;

(C) the Experimental Program to Stimulate Competitive Research of
the Department of Energy;
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(D) the Experimental Program to Stimulate Competitive Research of
the Environmental Protection Agency;

(E) the Experimental Program to Stimulate Competitive Research of
the National Aeronautics and Space Administration;

(F) the Institutional Development Award Program of the National
Institutes of Health; and

(G) the National Research Initiative Competitive Grants Program of
the Department of Agriculture.

(2) COORDINATION REQUIREMENTS.Each Federal agency that is
subject to subsection (f) and that has established a technology development program may, in
each fiscal year, review for funding under that technology development program

(A) any proposal to provide outreach and assistance to 1 or more small
business concerns interested in participating in the SBIR program, including any proposal to
make a grant or loan to a company to pay a portion or all of the cost of developing an SBIR
proposal, from an entity, organization, or individual located in

(i) a State that is eligible to participate in that program; or

(ii) a State described in paragraph (3); or

(B) any proposal for the first phase of the SBIR program, if the
proposal, though meritorious, is not funded through the SBIR program for that fiscal year due to
funding restraints, from a small business concern located in

(i) a State that is eligible to participate in a technology
development program; or

(ii) a State described in paragraph (3).

(3) ADDITIONALLY ELIGIBLE STATE.A State referred to in
subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State in which the total value of contracts
awarded to small business concerns under all SBIR programs is less than the total value of
contracts awarded to small business concerns in a majority of other States, as determined by the
Administrator in biennial fiscal years, beginning with fiscal year 2000, based on the most recent
statistics compiled by the Administrator.

(v) SIMPLIFIED REPORTING REQUIREMENTS.The Administrator shall work
with the Federal agencies required by this section to have an SBIR or STTR program to
standardize reporting requirements for the collection of data from SBIR or STTR applicants and
awardees, including data for inclusion in the database under subsection (k), taking into
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consideration the unique needs of each agency, and to the extent possible, permitting the
updating of previously reported information by electronic means. Such requirements shall be
designed to minimize the burden on small businesses.

(w) STTR MODEL AGREEMENT FOR INTELLECTUAL PROPERTY RIGHTS.

(1) IN GENERAL.The Administrator shall promulgate regulations
establishing a single model agreement for use in the STTR program that allocates between small
business concerns and research institutions intellectual property rights and rights, if any, to carry
out follow-on research, development, or commercialization.

(2) OPPORTUNITY FOR COMMENT.In promulgating regulations under
paragraph (1), the Administrator shall provide to affected agencies, small business concerns,
research institutions, and other interested parties the opportunity to submit written comments.

(x) RESEARCH AND DEVELOPMENT FOCUS.

(1) REVISION AND UPDATE OF CRITERIA AND PROCEDURES OF
IDENTIFICATION.In carrying out subsection (g), the Secretary of Defense shall, not less
often than once every 4 years, revise and update the criteria and procedures utilized to identify
areas of the research and development efforts of the Department of Defense which are suitable
for the provision of funds under the Small Business Innovation Research Program and the Small
Business Technology Transfer Program.

(2) UTILIZATION OF PLANS.The criteria and procedures described in
paragraph (1) shall be developed through the use of the most current versions of the following
plans:

(A) The J oint Warfighting Science and Technology Plan required
under section 270 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law
104-201; 10 U.S.C. 2501 note).

(B) The Defense Technology Area Plan of the Department of Defense.

(C) The Basic Research Plan of the Department of Defense.

(3) INPUT IN IDENTIFICATION OF AREAS OF EFFORT.The criteria
and procedures described in paragraph (1) shall include input in the identification of areas of
research and development efforts described in that paragraph from Department of Defense
program managers (PMs) and program executive officers (PEOs).

(y) COMMERCIALIZATION PILOT PROGRAM.

(1) IN GENERAL.The Secretary of Defense and the Secretary of each
military department is authorized to create and administer a Commercialization Pilot Program
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to accelerate the transition of technologies, products, and services developed under the Small
Business Innovation Research Program to Phase III, including the acquisition process.

(2) IDENTIFICATION OF RESEARCH PROGRAMS FOR
ACCELERATED TRANSITION TO ACQUISITION PROCESS.In carrying out the
Commercialization Pilot Program, the Secretary of Defense and the Secretary of each military
department shall identify research programs of the Small Business Innovation Research Program
that have the potential for rapid transitioning to Phase III and into the acquisition process.

(3) LIMITATION.No research program may be identified under paragraph
(2) unless the Secretary of the military department concerned certifies in writing that the
successful transition of the program to Phase III and into the acquisition process is expected to
meet high priority military requirements of such military department.

(4) FUNDING.For payment of expenses incurred to administer the
Commercialization Pilot Program under this subsection, the Secretary of Defense and each
Secretary of a military department is authorized to use not more than an amount equal to 1
percent of the funds available to the Department of Defense or the military department pursuant
to the Small Business Innovation Research Program. Such funds

(A) shall not be subject to the limitations on the use of funds in
subsection (f)(2); and

(B) shall not be used to make Phase III awards.

(5) EVALUATIVE REPORT.At the end of each fiscal year, the Secretary
of Defense shall submit to the Committee on Armed Services and the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Armed Services and the
Committee on Small Business of the House of Representatives an evaluative report regarding
activities under the Commercialization Pilot Program. The report shall include

(A) an accounting of the funds used in the Commercialization Pilot
Program;

(B) a detailed description of the Commercialization Pilot Program,
including incentives and activities undertaken by acquisition program managers, program
executive officers, and prime contractors; and

(C) a detailed compilation of results achieved by the Commercialization
Pilot Program, including the number of small business concerns assisted and the number of
projects commercialized.

(6) SUNSET.The pilot program under this subsection shall terminate at the
end of fiscal year 2009.

(z) ENCOURAGING INNOVATION IN ENERGY EFFICIENCY.
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(1) FEDERAL AGENCY ENERGY-RELATED PRIORITY.In carrying
out its duties under this section relating to SBIR and STTR solicitations by Federal departments
and agencies, the Administrator shall

(A) ensure that such departments and agencies give high priority to
small business concerns that participate in or conduct energy efficiency or renewable energy
system research and development projects; and

(B) include in the annual report to Congress under subsection (b)(7) a
determination of whether the priority described in subparagraph (A) is being carried out.

(2) CONSULTATION REQUIRED.The Administrator shall consult with
the heads of other Federal departments and agencies in determining whether priority has been
given to small business concerns that participate in or conduct energy efficiency or renewable
energy system research and development projects, as required by this subsection.

(3) GUIDELINES.The Administrator shall, as soon as is practicable after
the date of enactment of this subsection, issue guidelines and directives to assist Federal agencies
in meeting the requirements of this subsection.

(4) DEFINITIONS.In this subsection

(A) the term biomass

(i) means any organic material that is available on a renewable
or recurring basis, including

(I) agricultural crops;

(II) trees grown for energy production;

(III) wood waste and wood residues;

(IV) plants (including aquatic plants and grasses);

(V) residues;

(VI) fibers;

(VII) animal wastes and other waste materials; and

(VIII) fats, oils, and greases (including recycled fats, oils,
and grasses); and

(ii) does not include
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(I) paper that is commonly recycled; or

(II) unsegregated solid waste;

(B) the term energy efficiency project means the installation or
upgrading of equipment that results in a significant reduction energy usage; and

(C) the term renewable energy system means a system of energy
derived from

(i) a wind, solar, biomass (including biodiesel), or geothermal
source; or

(ii) hydrogen derived from biomass or water using an energy
source described in clause (i).

l0. (a) The Administration shall, as soon as practicable each fiscal year make a
comprehensive annual report to the President, the President of the Senate, the Senate Select
Committee on Small Business, and the Speaker of the House of Representatives. Such report
shall include a description of the state of small business in the Nation and the several States, and
a description of the operations of the Administration under this chapter, including, but not
limited to, the general lending, disaster relief, Government regulation relief, procurement and
property disposal, research and development, technical assistance, dissemination of data and
information, and other functions under the jurisdiction of the Administration during the previous
fiscal year. Such report shall contain recommendations for strengthening or improving such
programs, or, when necessary or desirable to implement more effectively congressional policies
and proposals, for establishing new or alternative programs. In addition, such report shall
include the names of the business concerns to whom contracts are let and for whom financing is
arranged by the Administration, together with the amounts involved. With respect to minority
small business concerns, the report shall include the proportion of loans and other assistance
under this Act provided to such concerns, the goals of the Administration for the next fiscal year
with respect to such concerns, and recommendations for improving assistance to minority small
business concerns under this Act.

(b) The Administration shall make a report to the President, the President of the
Senate, and the Speaker of the House of Representatives, to the Senate Select Committee on
Small Business, and to the Committee on Small Business of the House of Representatives, as
soon as practicable each fiscal year, showing as accurately as possible for each such period the
amount of funds appropriated to it that it has expended in the conduct of each of its principal
activities such as lending, procurement, contracting, and providing technical and managerial
aids. Such report shall contain the number and amount of loans, the number of applications, the
total amount applied for, and the number and amount of defaults for each type of equipment or
service for which loans are authorized by this Act. Such report shall provide such information
separately on each type of loan made under paragraphs (10) through (15) of section 7(a) and
separately for all other loan programs. In addition, the information on loans shall be supplied on
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a monthly basis to the Committee on Small Business of the Senate and the Committee on Small
Business of the House of Representatives.

(c) [Repealed].

(d) For the purpose of aiding in carrying out the national policy to insure that a fair
proportion of the total purchases and contracts for property and services for the Government be
placed with small-business enterprises, and to maintain and strengthen the overall economy of
the Nation, the Department of Defense shall make an annual report to the Committees on Small
Business of the Senate and the House of Representatives showing the amount of funds
appropriated to the Department of Defense which have been expended, obligated, or contracted
to be spent with small business concerns and the amount of such funds expended, obligated, or
contracted to be spent with firms other than small business in the same fields of operation; and
such reports shall show separately the funds expended, obligated, or contracted to be spent for
basic and applied scientific research and development.

(e) The Administration and the Inspector General of the Administration shall retain
all correspondence, records of inquiries, memoranda, reports, books, and records, including
memoranda as to all investigations conducted by or for the Administration, for a period of at
least one year from the date of each thereof, and shall at all times keep the same available for
inspection and examination by the Senate Select Committee on Small Business and the
Committee on Small Business of the House of Representatives, or their duly authorized
representatives.

(2) The Committee on Small Business of either the Senate or the House of
Representatives may request that the Office of the Inspector General of the Administration
conduct an investigation of any program or activity conducted under the authority of section 7(j)
or 8(a). Not later than thirty days after the receipt of such a request, the Inspector General shall
inform the committee, in writing, of the disposition of the request by such office.

(f) To the extent deemed necessary by the Administrator to protect and preserve
small-business interests, the Administration shall consult and cooperate with other departments
and agencies of the Federal Government in the formulation by the Administration of policies
affecting small-business concerns. When requested by the Administrator, each department and
agency of the Federal Government shall consult and cooperate with the Administration in the
formulation by the Administration of policies affecting small-business concerns. When
requested by the Administrator, each department and agency of the Federal Government shall
consult and cooperate with the Administration in the formulation by such department or agency
of policies affecting small-business concerns, in order to insure that small-business interests will
be recognized, protected, and preserved. This subsection shall not require any department or
agency to consult or cooperate with the Administration in any case where the head of such
department or agency determines that such consultation or cooperation would unduly delay
action which must be taken by such department or agency to protect the national interest in an
emergency.

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(g) The Administration shall transmit, not later than December 3l of each year, to the
Senate Select Committee on Small Business and Committee on Small Business of the House of
Representatives a sealed report with respect to

(l) complaints alleging illegal conduct by employees of the Administration
which were received or acted upon by the Administration during the preceding fiscal year; and

(2) investigations undertaken by the Administration, including external and
internal audits and security and investigation reports.

(h) The Administration shall transmit, not later than March 31 of each year, to the
Committees on Small Business of the Senate and House of Representatives a report on the
secondary market operations during the preceding calendar year. This report shall include, but
not be limited to, (1) the number and the total dollar amount of loans sold into the secondary
market and the distribution of such loans by size of loan, size of lender, geographic location of
lender, interest rate, maturity, lender servicing fees, whether the rate is fixed or variable, and
premium paid; (2) the number and dollar amount of loans resold in the secondary market with a
distribution by size of loan, interest rate, and premiums; (3) the number and total dollar amount
of pools formed; (4) the number and total dollar amount of loans in each pool; (5) the dollar
amount, interest rate, and terms on each loan in each pool and whether the rate is fixed or
variable; (6) the number, face value, interest rate, and terms of the trust certificates issued for
each pool; (7) to the maximum extent possible, the use by the lender of the proceeds of sales of
loans in the secondary market for additional lending to small business concerns; and (8) an
analysis of the information reported in (1) through (7) to assess small businesses' access to
capital at reasonable rates and terms as a result of secondary market operations.

11. (a) The President is authorized to consult with representatives of small-business
concerns with a view to encouraging the making by such persons with the approval of the
President of voluntary agreements and programs to further the objectives of this Act.

(b) No act or omission to act pursuant to this Act which occurs while this Act is in
effect, if requested by the President pursuant to a voluntary agreement or program approved
under subsection (a) of this section and found by the President to be in the public interest as
contributing to the national defense, shall be construed to be within the prohibitions of the
antitrust laws or the Federal Trade Commission Act of the United States. A copy of each such
request intended to be within the coverage of this section, and any modification or withdrawal
thereof, shall be furnished to the Attorney General and the Chairman of the Federal Trade
Commission when made, and it shall be published in the Federal Register unless publication
thereof would, in the opinion of the President, endanger the national security.

(c) The authority granted in subsection (b) of this section shall be delegated only (1)
to an official who shall for the purpose of such delegation be required to be appointed by the
President by and with the advice and consent of the Senate, (2) upon the condition that such
official consult with the Attorney General and the Chairman of the Federal Trade Commission
not less than ten days before making any request or finding thereunder, and (3) upon the
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condition that such official obtain the approval of the Attorney General to any request thereunder
before making the request.

(d) Upon withdrawal of any request or finding hereunder, or upon withdrawal by the
Attorney General of his approval of the voluntary agreement or program on which the request or
finding is based, the provisions of this section shall not apply to any subsequent act, or omission
to act, by reason of such finding or request.

12. The President may transfer to the Administration any functions, powers, and duties of
any department or agency which relate primarily to small-business problems. In connection with
any such transfer, the President may provide for appropriate transfers of records, property,
necessary personnel, and unexpended balances of appropriations and other funds available to the
department or agency from which the transfer is made.

13. No loan shall be made or equipment, facilities, or services furnished by the Administration
under this Act to any business enterprise unless the owners, partners, or officers of such business
enterprise (1) certify to the Administration the names of any attorneys, agents, or other persons
engaged by or on behalf of such business enterprise for the purpose of expediting applications
made to the Administration for assistance of any sort, and the fees paid or to be paid to any such
persons; (2) execute an agreement binding any such business enterprise for a period of two years
after any assistance is rendered by the Administration to such business enterprise, to refrain from
employing, tendering any office or employment to, or retaining for professional service, any
person, who, on the date such assistance or any part thereof was rendered, or within one year prior
thereto, shall have served as an officer, attorney, agent, or employee of the Administration
occupying a position or engaging in activities which the Administration shall have determined
involve discretion with respect to the granting of assistance under this Act; and (3) furnish the
names of lending institutions to which such business enterprise has applied for loans together with
dates, amounts, terms, and proof of refusal.

14. To the fullest extent the Administration deems practicable, it shall make a fair charge for
the use of Government-owned property and make and let contracts on a basis that will result in a
recovery of the direct cost incurred by the Administration.

15. (a) To effectuate the purposes of this Act, small business concerns within the
meaning of this Act shall receive any award or contract or any part thereof, and be awarded any
contract for the sale of Government property, as to which it is determined by the Administration
and the contracting procurement or disposal agency (1) to be in the interest of maintaining or
mobilizing the Nations full productive capacity, (2) to be in the interest of war or national
defense programs, (3) to be in the interest of assuring that a fair proportion of the total purchases
and contracts for property and services for the Government in each industry category are placed
with small-business concerns, or (4) to be in the interest of assuring that a fair proportion of the
total sales of Government property be made to small-business concerns; but nothing contained in
this Act shall be construed to change any preferences or priorities established by law with respect
to the sale of electrical power or other property by the Government or any agency thereof. These
determinations may be made for individual awards or contracts or for classes of awards or
contracts. If a proposed procurement includes in its statement of work goods or services
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currently being performed by a small business, and if the proposed procurement is in a quantity
or estimated dollar value the magnitude of which renders small business prime contract
participation unlikely, or if a proposed procurement for construction seeks to package or
consolidate discrete construction projects, or the solicitation involves an unnecessary or
unjustified bundling of contract requirements, as determined by the Administration, the
Procurement Activity shall provide a copy of the proposed procurement to the Procurement
Activitys Small Business Procurement Center Representative at least 30 days prior to the
solicitation's issuance along with a statement explaining (1) why the proposed acquisition cannot
be divided into reasonably small lots (not less than economic production runs) to permit offers
on quantities less than the total requirement, (2) why delivery schedules cannot be established on
a realistic basis that will encourage small business participation to the extent consistent with the
actual requirements of the Government, (3) why the proposed acquisition cannot be offered so as
to make small business participation likely, (4) why construction cannot be procured as separate
discrete projects, or (5) why the agency has determined that the bundled contract (as defined in
section 3(o)) is necessary and justified. The thirty-day notification process shall occur
concurrently with other processing steps required prior to issuance of the solicitation. Within 15
days after receipt of the proposed procurement and accompanying statement, if the Procurement
Center Representative believes that the procurement as proposed will render small business
prime contract participation unlikely, the Representative shall recommend to the Procurement
Activity alternative procurement methods which would increase small business prime
contracting opportunities. Whenever the Administration and the contracting procurement agency
fail to agree, the matter shall be submitted for determination to the Secretary or the head of the
appropriate department or agency by the Administrator. For purposes of clause (3) of the first
sentence of this subsection, an industry category is a discrete group of similar goods and
services. Such groups shall be determined by the Administration in accordance with the
definition of a United States industry under the North American Industry Classification
System, as established by the Office of Management and Budget, except that the Administration
shall limit such an industry category to a greater extent than provided under such classification
codes if the Administration receives evidence indicating that further segmentation for purposes
of this paragraph is warranted due to special capital equipment needs or special labor or
geographic requirements or to recognize a new industry. A market for goods or services may not
be segmented under the preceding sentence due to geographic requirements unless the
Government typically designates the area where work for contracts for such goods or services is
to be performed and Government purchases comprise the major portion of the entire domestic
market for such goods or services and, due to the fixed location of facilities, high mobilization
costs, or similar economic factors, it is unreasonable to expect competition from business
concerns located outside of the general areas where such concerns are located. A contract may
not be awarded under this subsection if the award of the contract would result in a cost to the
awarding agency which exceeds a fair market price.

(b) With respect to any work to be performed the amount of which would exceed the
maximum amount of any contract for which a surety may be guaranteed against loss under
section 411 of the Small Business Investment Act of 1958 (15 U.S.C. 694 (b)), the contracting
procurement agency shall, to the extent practicable, place contracts so as to allow more than one
small business concern to perform such work.

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(c) (1) As used in this subsection:

(A) The term Committee means the Committee for Purchase from
the Blind and Other Severely Handicapped established under the first section of the Act entitled
An Act to create a Committee on Purchases of Blind-made Products, and for other purposes,
approved J une 25, 1938 (41 U.S.C. 46).

(B) The term public or private organization for the handicapped has
the same meaning given such term in section 3(e).

(C) The term handicapped individual has the same meaning given
such term in section 3(f).

(2) (A) During fiscal year 1995, public or private organizations for the
handicapped shall be eligible to participate in programs authorized under this section in an
aggregate amount not to exceed $40,000,000.

(B) None of the amounts authorized for participation by subparagraph
(A) may be placed on the procurement list maintained by the Committee pursuant to section 2 of
the Act entitled An Act to create a Committee on Purchases of Blind-made Products, and for
other purposes, approved J une 25, 1938 (41 U.S.C. 47).

(3) The Administrator shall monitor and evaluate such participation.

(4) (A) Not later than ten days after the announcement of a proposed
award of a contract by an agency or department to a public or private organization for the
handicapped, a for-profit small business concern that has experienced or is likely to experience
severe economic injury as the result of the proposed award may file an appeal of the proposed
award with the Administrator.

(B) If such a concern files an appeal of a proposed award under
subparagraph (A) and the Administrator, after consultation with the Executive Director of the
Committee, finds that the concern has experienced or is likely to experience severe economic
injury as the result of the proposed award, not later than thirty days after the filing of the appeal,
the Administration shall require each agency and department having procurement powers to take
such action as may be appropriate to alleviate economic injury sustained or likely to be sustained
by the concern.

(5) Each agency and department having procurement powers shall report to
the Office of Federal Procurement Policy each time a contract subject to paragraph (2)(A) is
entered into, and shall include in its report the amount of the next higher bid submitted by a
for-profit small business concern. The Office of Federal Procurement Policy shall collect data
reported under the preceding sentence through the Federal procurement data system and shall
report to the Administration which shall notify all such agencies and departments when the
maximum amount of awards authorized under paragraph (2)(A) has been made during any fiscal
year.
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(6) For the purpose of this subsection, a contract may be awarded only if at
least 75 per centum of the direct labor performed on each item being produced under the contract
in the sheltered workshop or performed in providing each type of service under the contract by
the sheltered workshop is performed by handicapped individuals.

(7) Agencies awarding one or more contracts to such an organization pursuant
to the provisions of this subsection may use multiyear contracts, if appropriate.

(d) For purposes of this section priority shall be given to the awarding of contracts
and the placement of subcontracts to small business concerns which shall perform a substantial
proportion of the production on those contracts and subcontracts within areas of concentrated
unemployment or underemployment or within labor surplus areas. Notwithstanding any other
provision of law, total labor surplus area set-asides pursuant to [44 C.F.R. Part 331] or any
successor policy shall be authorized if the Secretary or his designee specifically determines that
there is a reasonable expectation that offers will be obtained from a sufficient number of eligible
concerns so that awards will be made at reasonable prices. As soon as practicable and to the
extent possible, in determining labor surplus areas, consideration shall be given to those persons
who would be available for employment were suitable employment available. Until such
definition reflects such number, the present criteria of such policy shall govern.

(e) PROCUREMENT STRATEGIES; CONTRACT BUNDLING

(1) IN GENERAL.To the maximum extent practicable, procurement
strategies used by the various agencies having contracting authority shall facilitate the maximum
participation of small business concerns as prime contractors, subcontractors, and suppliers.

(2) MARKET RESEARCH

(A) IN GENERAL.Before proceeding with an acquisition strategy
that could lead to a contract containing consolidated procurement requirements, the head of an
agency shall conduct market research to determine whether consolidation of the requirements is
necessary and justified.

(B) FACTORS.For purposes of subparagraph (A), consolidation of
the requirements may be determined as being necessary and justified if, as compared to the
benefits that would be derived from contracting to meet those requirements if not consolidated,
the Federal Government would derive from the consolidation measurably substantial benefits,
including any combination of benefits that, in combination, are measurably substantial. Benefits
described in the preceding sentence may include the following:

(i) Cost savings.

(ii) Quality improvements.

(iii) Reduction in acquisition cycle times.
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(iv) Better terms and conditions.

(v) Any other benefits.

(C) REDUCTION OF COSTS NOT DETERMINATIVE.The
reduction of administrative or personnel costs alone shall not be a justification for bundling of
contract requirements unless the cost savings are expected to be substantial in relation to the
dollar value of the procurement requirements to be consolidated.

(3) STRATEGY SPECIFICATIONS.If the head of a contracting agency
determines that a proposed procurement strategy for a procurement involves a substantial
bundling of contract requirements, the proposed procurement strategy shall

(A) identify specifically the benefits anticipated to be derived from the
bundling of contract requirements;

(B) set forth an assessment of the specific impediments to participation
by small business concerns as prime contractors that result from the bundling of contract
requirements and specify actions designed to maximize small business participation as
subcontractors (including suppliers) at various tiers under the contract or contracts that are
awarded to meet the requirements; and

(C) include a specific determination that the anticipated benefits of the
proposed bundled contract justify its use.

(4) CONTRACT TEAMING.In the case of a solicitation of offers for a
bundled contract that is issued by the head of an agency, a small business concern may submit an
offer that provides for use of a particular team of subcontractors for the performance of the
contract. The head of the agency shall evaluate the offer in the same manner as other offers, with
due consideration to the capabilities of all of the proposed subcontractors. If a small business
concern teams under this paragraph, it shall not affect its status as a small business concern for
any other purpose.

(f) [deleted].

(g) (1) The President shall annually establish Government-wide goals for
procurement contracts awarded to small business concerns, small business concerns owned and
controlled by service disabled veterans, qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and economically disadvantaged individuals,
and small business concerns owned and controlled by women. The Government-wide goal for
participation by small business concerns shall be established at not less than 23 percent of the
total value of all prime contract awards for each fiscal year. The Government-wide goal for
participation by small business concerns owned and controlled by service-disabled veterans shall
be established at not less than 3 percent of the total value of all prime contract and subcontract
awards for each fiscal year. The Government-wide goal for participation by qualified HUBZone
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small business concerns shall be established at not less than 1 percent of the total value of all
prime contract awards for fiscal year 1999, not less than 1.5 percent of the total value of all
prime contract awards for fiscal year 2000, not less than 2 percent of the total value of all prime
contract awards for fiscal year 2001, not less than 2.5 percent of the total value of all prime
contract awards for fiscal year 2002, and not less than 3 percent of the total value of all prime
contract awards for fiscal year 2003 and each fiscal year thereafter. The Government-wide goal
for participation by small business concerns owned and controlled by socially and economically
disadvantaged individuals shall be established at not less than 5 percent of the total value of all
prime contract and subcontract awards for each fiscal year. The Government-wide goal for
participation by small business concerns owned and controlled by women shall be established at
not less than 5 percent of the total value of all prime contract and subcontract awards for each
fiscal year. Notwithstanding the Government-wide goal, each agency shall have an annual goal
that presents, for that agency, the maximum practicable opportunity for small business concerns,
small business concerns owned and controlled by service-disabled veterans, qualified HUBZone
small business concerns, small business concerns owned and controlled by socially and
economically disadvantaged individuals, and small business concerns owned and controlled by
women to participate in the performance of contracts let by such agency. The Administration
and the Administrator of the Office of Federal Procurement Policy shall, when exercising their
authority pursuant to paragraph (2), insure that the cumulative annual prime contract goals for all
agencies meet or exceed the annual Government-wide prime contract goal established by the
President pursuant to this paragraph.

(2) The head of each Federal agency shall, after consultation with the
Administration, establish goals for the participation by small business concerns, by small
business concerns owned and controlled by service-disabled veterans, by qualified HUBZone
small business concerns, by small business concerns owned and controlled by socially and
economically disadvantaged individuals, and by small business concerns owned and controlled
by women in procurement contracts of such agency having a value of $25,000 or more. Goals
established under this subsection shall be jointly established by the Administration and the head
of each Federal agency and shall realistically reflect the potential of small business concerns,
small business concerns owned and controlled by service-disabled veterans, qualified HUBZone
small business concerns, and small business concerns owned and controlled by socially and
economically disadvantaged individuals to perform such contracts and to perform subcontracts
under such contracts. Whenever the Administration and the head of any Federal agency fail to
agree on established goals, the disagreement shall be submitted to the Administrator of the
Office of Federal Procurement Policy for final determination. For the purpose of establishing
goals under this subsection, the head of each Federal agency shall make consistent efforts to
annually expand participation by small business concerns from each industry category in
procurement contracts of the agency, including participation by small business concerns owned
and controlled by service-disabled veterans, by qualified HUBZone small business concerns, by
small business concerns owned and controlled by socially and economically disadvantaged
individuals and by small business concerns owned and controlled by women. The head of each
Federal agency, in attempting to attain such participation, shall consider

(A) contracts awarded as the result of unrestricted competition; and

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(B) contracts awarded after competition restricted to eligible small
business concerns under this section and under the program established under section 8(a).

(h) (1) At the conclusion of each fiscal year, the head of each Federal agency
shall report to the Administration on the extent of participation by small business concerns, small
business concerns owned and controlled by veterans (including service-disabled veterans),
qualified HUBZone small business concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, and small business concerns owned and
controlled by women in procurement contracts of such agency. Such reports shall contain
appropriate justifications for failure to meet the goals established under subsection (g) of this
section.

(2) The Administration shall annually compile and analyze the reports
submitted by the individual agencies pursuant to paragraph (1) and shall submit them to the
President and the Congress. The Administration's submission to the President shall include the
following:

(A) The Government-wide goals for participation by small business
concerns, small business concerns owned and controlled by service-disabled veterans, qualified
by women and the performance in attaining such goals.

(B) The goals in effect for each agency and the agency's performance
in attaining such goals.

(C) An analysis of any failure to achieve the Government-wide goals
or any individual agency goals and the actions planned by such agency (and approved by the
Administration) to achieve the goals in the succeeding fiscal year.

(D) The number and dollar value of contracts awarded to small
business concerns, small business concerns owned and controlled by service-disabled veterans,
socially and economically disadvantaged individuals and small business concerns owned and
controlled by women through

(i) noncompetitive negotiation,

(ii) competition restricted to small business concerns owned
and controlled by socially and economically disadvantaged individuals,

(iii) competition restricted to small business concerns, and

(iv) unrestricted competitions,

for each agency and on a Government-wide basis.
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(E) The number and dollar value of subcontracts awarded to small
business concerns, small business concerns owned and controlled by service-disabled veterans,
socially and economically disadvantaged individuals and small business concerns owned and
controlled by women.

(F) The number and dollar value of prime contracts and subcontracts
awarded to small business concerns owned and controlled by women.

(3) The President shall include the information required by paragraph (2) in
each annual report to the Congress on the state of small business prepared pursuant to section
303(a) of the Small Business Economic Policy Act of 1980 (15 U.S.C. 631b(a)).

(i) Nothing in this Act or any other provision of law precludes exclusive small
business set-asides for procurements of architectural and engineering services, research,
development, test and evaluation, and each Federal agency is authorized to develop such set-
asides to further the interests of small business in those areas.

(j) (1) Each contract for the purchase of goods and services that has an anticipated
value greater than $2,500 but not greater than $100,000 shall be reserved exclusively for small
business concerns unless the contracting officer is unable to obtain offers from two or more small
business concerns that are competitive with market prices and are competitive with regard to the
quality and delivery of the goods or services being purchased.

(2) in carrying out paragraph (1), a contracting officer shall consider a
responsive offer timely received from an eligible small business offeror.

(3) Nothing in paragraph (1) shall be construed as precluding an award of a
contract with a value not greater than $100,000 under the authority of subsection (a) of section 8
of this Act, section 2323 of title 10, United States Code, section 712 of the Business Opportunity
Development Reform Act of 1988 (Public Law 100-656; 15 U.S.C. 644 note), or section 7102 of
the Federal Acquisition Streamlining Act of 1994.

(k) There is hereby established in each Federal agency having procurement powers an
office to be known as the Office of Small and Disadvantaged Business Utilization. The
management of each such office shall be vested in an officer or employee of such agency who
shall

(1) be known as the Director of Small and Disadvantaged Business
Utilization for such agency,

(2) be appointed by the head of such agency,

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(3) be responsible only to, and report directly to, the head of such agency or to
the deputy of such head, except that the director for the Office of the Secretary of Defense shall
be responsible only to, and report to, such Secretary or the Secretary's designee,

(4) be responsible for the implementation and execution of the functions and
duties under sections 8 and 15 of this Act which relate to such agency,

(5) identify proposed solicitations that involve significant bundling of contract
requirements, and work with the agency acquisition officials and the Administration to revise the
procurement strategies for such proposed solicitations where appropriate to increase the
probability of participation by small businesses as prime contractors, or to facilitate small
business participation as subcontractors and suppliers, if a solicitation for a bundled contract is to
be issued;

(6) assist small business concerns to obtain payments, late payment interest
penalties, or information due to such concerns from an executive agency or a contractor, in
conformity with chapter 39 of title 31, United States Code, or any other protection for
contractors or subcontractors (including suppliers) that is included in the Federal Acquisition
Regulation or any individual agency supplement to such Government-wide regulation;

(7) have supervisory authority over personnel of such agency to the extent
that the functions and duties of such personnel relate to functions and duties under sections 8 and
15 of this Act,

(8) assign a small business technical adviser to each office to which the
Administration has assigned a procurement center representative

(A) who shall be a full-time employee of the procuring activity and
shall be well qualified, technically trained and familiar with the supplies or services purchased at
the activity, and

(B) whose principal duty shall be to assist the Administration procure-
ment center representative in his duties and functions relating to sections 8 and 15 of this Act,

(9) cooperate, and consult on a regular basis, with the Administration with
respect to carrying out the functions and duties described in paragraph (4) of this subsection, and

(10) make recommendations to contracting officers as to whether a particular
contract requirement should be awarded pursuant to subsection (a), or section 8(a) of this Act or
section 2323 of title 10, United States Code. Such recommendations shall be made with due
regard to the requirements of subsection (m), and the failure of the contracting officer to accept
any such recommendations shall be documented and included within the appropriate contract
file.

This subsection shall not apply to the Administration.

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(l) (1) The Administration shall assign to each major procurement center a
breakout procurement center representative with such assistance as may be appropriate. The
breakout procurement center representative shall carry out the activities described in paragraph
(2), and shall be an advocate for the breakout of items for procurement through full and open
competition, whenever appropriate, while maintaining the integrity of the system in which such
items are used, and an advocate for the use of full and open competition, whenever appropriate,
for the procurement of supplies and services by such center. Any breakout procurement center
representative assigned under this subsection shall be in addition to the representative referred to
in subsection (k)(6).

(2) In addition to carrying out the responsibilities assigned by the
Administration, a breakout procurement center representative is authorized to

(A) attend any provisioning conference or similar evaluation session
during which determinations are made as to whether requirements are to be procured through
other than full and open competition and make recommendations with respect to such
requirements to the members of such conference or session;

(B) review, at any time, restrictions on competition previously imposed
on items through acquisition method coding or similar procedures, and recommend to personnel
of the appropriate activity the prompt reevaluation of such limitations;

(C) review restrictions on competition arising out of restrictions on the
rights of the United States in technical data, and, when appropriate, recommend that personnel of
the appropriate activity initiate a review of the validity of such an asserted restriction;

(D) obtain from any governmental source, and make available to
personnel of the appropriate activity, technical data necessary for the preparation of a competitive
solicitation package for any item of supply or service previously procured noncompetitively due to
the unavailability of such technical data;

(E) have access to procurement records and other data of the
procurement center commensurate with the level of such representative's approved security
clearance classification;

(F) receive unsolicited engineering proposals and, when appropriate (i)
conduct a value analysis of such proposal to determine whether such proposal, if adopted, will
result in lower costs to the United States without substantially impeding legitimate acquisition
objectives and forward to personnel of the appropriate activity recommendations with respect to
such proposal, or (ii) forward such proposals without analysis to personnel of the activity
responsible for reviewing such proposals and who shall furnish the breakout procurement center
representative with information regarding the disposition of any such proposal; and

(G) review the systems that account for the acquisition and management
of technical data within the procurement center to assure that such systems provide the maximum
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availability and access to data needed for the preparation of offers to sell to the United States those
supplies to which such data pertain which potential offerors are entitled to receive.

(3) A breakout procurement center representative is authorized to appeal the
failure to act favorably on any recommendation made pursuant to paragraph (2). Such appeal shall
be filed and processed in the same manner and subject to the same conditions and limitations as an
appeal filed by the Administrator pursuant to subsection (a).

(4) The Administration shall assign and co-locate at least two small business
technical advisers to each major procurement center in addition to such other advisers as may be
authorized from time to time. The sole duties of such advisers shall be to assist the breakout
procurement center representative for the center to which such advisers are assigned in carrying
out the functions described in paragraph (2) and the representatives referred to in subsection
(k)(6).

(5) (A) The breakout procurement center representatives and technical
advisers assigned pursuant to this subsection shall be

(i) full-time employees of the Administration; and

(ii) fully qualified, technically trained, and familiar with the
supplies and services procured by the major procurement center to which they are assigned.

(B) In addition to the requirements of subparagraph (A), each breakout
procurement center representative, and at least one technical adviser assigned to such
representative, shall be an accredited engineer.

(C) The Administration shall establish personnel positions for breakout
procurement representatives and advisers assigned pursuant to this subsection which are
classified at a grade level of the General Schedule sufficient to attract and retain highly qualified
personnel.

(6) For purposes of this subsection, the term major procurement center
means a procurement center that, in the opinion of the Administrator, purchases substantial
dollar amounts of other than commercial items and which has the potential to incur significant
savings as the result of the placement of a breakout procurement center representative.

(7) (A) At such times as the Administrator deems appropriate, the breakout
procurement center representative shall conduct familiarization sessions for contracting officers
and other appropriate personnel of the procurement center to which such representative is
assigned. Such sessions shall acquaint the participants with the provisions of this subsection and
shall instruct them in methods designed to further the purposes of such subsection.

(B) The breakout procurement center representative shall prepare and
personally deliver an annual briefing and report to the head of the procurement center to which
such representative is assigned. Such briefing and report shall detail the past and planned
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activities of the representative and shall contain such recommendations for improvement in the
operation of the center as may be appropriate. The head of such center shall personally receive
such briefing and report and shall, within sixty calendar days after receipt, respond, in writing, to
each recommendation made by such representative.

(m) (1) Each agency subject to the requirements of section 2323 of title 10, United
States Code, shall, when implementing such requirements

(A) establish policies and procedures that insure that there will be no
reduction in the number of dollar value of contracts awarded pursuant to this section and section
8(a) in order to achieve any goal or other program objective; and

(B) assure that such requirements will not alter or change the
procurement process used to implement this section or section 8(a).

(2) All procurement center representatives (including those referred to in
subsection (k)(6)), in addition to such other duties as may be assigned by the Administrator,
shall

(A) monitor the performance of the procurement activities to which
they are assigned to ascertain the degree of compliance with the requirements of paragraph (l);

(B) report to their immediate supervisors all instances of noncompliance
with such requirements; and

(C) increase, insofar as possible, the number and dollar value of
procurements that may be used for the programs established under this section, section 8(a), and
section 2323 of title 10, United States Code.

(n) For purposes of this section, the determination of labor surplus areas shall be
made on the basis of the criteria in effect at the time of the determination, except that any
minimum population criteria shall not exceed twenty-five thousand. Such determination, as
modified by the preceding sentence, shall be made by the Secretary of Labor.

(o) (1) A concern may not be awarded a contract under subsection (a) as a small
business concern unless the concern agrees that

(A) in the case of a contract for services (except construction), at least
50 percent of the cost of contract performance incurred for personnel shall be expended for
employees of the concern; and

(B) in the case of a contract for procurement of supplies (other than
procurement from a regular dealer in such supplies), the concern will perform work for at least
50 percent of the cost of manufacturing the supplies (not including the cost of materials).

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(2) The Administrator may change the percentage under subparagraph (A) or
(B) of paragraph (1) if the Administrator determines that such change is necessary to reflect
conventional industry practices among business concerns that are below the numerical size
standard for businesses in that industry category.

(3) The Administration shall establish, through public rulemaking,
requirements similar to those specified in paragraph (1) to be applicable to contracts for general
and specialty construction and to contracts for any other industry category not otherwise subject
to the requirements of such paragraph. The percentage applicable to any such requirement shall
be determined in accordance with paragraph (2).

(p) DATABASE, ANALYSIS, AND ANNUAL REPORT WITH RESPECT TO
BUNDLED CONTRACTS.

(1) BUNDLED CONTRACT DEFINED.In this subsection, the term
bundled contract has the meaning given such term in section 3(o)(1).

(2) DATABASE.

(A) IN GENERAL.Not later than 180 days after the date of the
enactment of this subsection, the Administrator of the Small Business Administration shall
develop and shall thereafter maintain a database containing data and information regarding

(i) each bundled contract awarded by a Federal agency; and

(ii) each small business concern that has been displaced as a
prime contractor as a result of the award of such a contract.

(3) ANALYSIS.For each bundled contract that is to be recompeted as a
bundled contract, the Administrator shall determine

(A) the amount of savings and benefits (in accordance with subsection
(e)) achieved under the bundling of contract requirements; and

(B) whether such savings and benefits will continue to be realized if
the contract remains bundled, and whether such savings and benefits would be greater if the
procurement requirements were divided into separate solicitations suitable for award to small
business concerns.

(4) ANNUAL REPORT ON CONTRACT BUNDLING.

(A) IN GENERAL.Not later than 1 year after the date of the
enactment of this paragraph, and annually in March thereafter, the Administration shall transmit
a report on contract bundling to the Committees on Small Business of the House of
Representatives and the Senate.

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(B) CONTENTS.Each report transmitted under subparagraph (A)
shall include

(i) data on the number, arranged by industrial classification, of
small business concerns displaced as prime contractors as a result of the award of bundled
contracts by Federal agencies; and

(ii) a description of the activities with respect to previously
bundled contracts of each Federal agency during the preceding year, including

(I) data on the number and total dollar amount of all
contract requirements that were bundled; and

(II) with respect to each bundled contract, data or
information on

(aa) the justification for the bundling of contract
requirements;

(bb) the cost savings realized by bundling the
contract requirements over the life of the contract;

(cc) the extent to which maintaining the bundled
status of contract requirements is projected to result in continued cost savings;

(dd) the extent to which the bundling of contract
requirements complied with the contracting agencys small business subcontracting plan,
including the total dollar value awarded to small business concerns as subcontractors and the
total dollar value previously awarded to small business concerns as prime contractors; and

(ee) the impact of the bundling of contract
requirements on small business concerns unable to compete as prime contractors for the
consolidated requirements and on the industries of such small business concerns, including a
description of any changes to the proportion of any such industry that is composed of small
business concerns.

(5) ACCESS TO DATA.

(A) FEDERAL PROCUREMENT DATA SYSTEM.To assist in the
implementation of this section, the Administration shall have access to information collected
through the Federal Procurement Data System.

(B) AGENCY PROCUREMENT DATA SOURCES.To assist in the
implementation of this section, the head of each contracting agency shall provide, upon request
of the Administration, procurement information collected through existing agency data collection
sources.
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16. (a) Whoever makes any statement knowing it to be false, or whoever willfully
overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or
extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or
substitution of security therefor, or for the purpose of influencing in any way the action of the
Administration, or for the purpose of obtaining money, property, or anything of value, under this
Act, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than
two years, or both.

(b) Whoever, being connected in any capacity with the Administration, (1)
embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other
things of value, whether belonging to it or Pledged or otherwise entrusted to it, or (2) with intent
to defraud the Administration or any other body politic or corporate, or any individual, or to
deceive any officer, auditor, or examiner of the Administration makes any false entry in any
book, report, or statement of or to the Administration, or without being duly authorized, draws
any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft,
bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates
or shares in or receives directly or indirectly any money, profit, property, or benefit through any
transaction, loan, commission, contract, or any other act of the Administration, or (4) gives any
unauthorized information concerning any future action or Plan of the Administration which
might affect the value of securities, or, having such knowledge, invests or speculates, directly or
indirectly, in the securities or property of any company or corporation receiving loans or other
assistance from the Administration, shall be punished by a fine of not more than $10,000 or by
imprisonment for not more than five years, or both.

(c) Whoever, with intent to defraud, knowingly conceals, removes, disposes of, or
converts to his own use or to that of another, any property mortgaged or Pledged to, or held by,
the Administration, shall be fined not more than $5,000 or imprisoned not more than five years,
or both; but if the value of such property does not exceed $100, he shall be fined not more than
$1,000 or imprisoned not more than one year, or both.

(d) (1) Whoever misrepresents the status of any concern or person as a small
business concern, a qualified HUBZone small business concern, a small business concern
owned and controlled by socially and economically disadvantaged individuals or a small
business concern[s] owned and controlled by women, in order to obtain for oneself or another
any

(A) prime contract to be awarded pursuant to section 9, 15, or 31;

(B) subcontract to be awarded pursuant to section 8(a);

(C) subcontract that is to be included as part or all of a goal contained
in a subcontracting Plan required pursuant to section 8(d); or

(D) prime or subcontract to be awarded as a result, or in furtherance, of
any other provision of Federal law that specifically references section 8(d) for a definition of
program eligibility, shall be subject to the penalties and remedies described in paragraph (2).
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(2) Any person who violates paragraph (1) shall

(A) be punished by a fine of not more than $500,000 or by
imprisonment for not more than 10 years, or both;

(B) be subject to the administrative remedies prescribed by the
Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801-3812);

(C) be subject to suspension and debarment as specified in subpart 9.4
of title 48, Code of Federal Regulations (or any successor regulation) on the basis that such
misrepresentation indicates a lack of business integrity that seriously and directly affects the
present responsibility to perform any contract awarded by the Federal Government or a
subcontract under such a contract; and

(D) be ineligible for participation in any program or activity conducted
under the authority of this Act or the Small Business Investment Act of 1958 (15 U.S.C. 661 et
seq.) for a period not to exceed 3 years.

(e) Any representation of the status of any concern or person as a small business
concern, a HUBZone small business concern, a small business concern owned and
controlled by socially and economically disadvantaged individuals, or a small business
concern[s] owned and controlled by women in order to obtain any prime contract or subcontract
enumerated in subsection (d) of this section shall be in writing.

(f) Whoever falsely certifies past compliance with the requirements of section
7(j)(10)(I) of this Act shall be subject to the penalties prescribed in subsection (d).

17. Any interest held by the Administration in property, as security for a loan, shall be
subordinate to any lien on such property for taxes due on the property to a State, or political
subdivision thereof, in any case where such lien would, under applicable State law, be superior to
such interest if such interest were held by any party other than the United States.

18. (a) The Administration shall not duplicate the work or activity of any other
department or agency of the Federal Government and nothing contained in this Act shall be
construed to authorize any such duplication unless such work or activity is expressly provided
for in this Act. If loan applications are being refused or loans denied by such other department
or agency responsible for such work or activity due to administrative withholding from
obligation or withholding from apportionment, or due to administratively declared moratorium,
then, for purposes of this section, no duplication shall be deemed to have occurred.

(b) As used in this Act

(1) agricultural enterprises means those businesses engaged in the
production of food and fiber, ranching, and raising of livestock, aquaculture, and all other
farming and agricultural related industries; and
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(2) credit elsewhere means the availability of sufficient credit from
non-Federal sources at reasonable rates and terms, taking into consideration prevailing private
rates and terms in the community in or near where the concern transacts business for similar
purposes and periods of time.

19. If any provision of this Act, or the application thereof to any person or circumstances, is
held invalid, the remainder of this Act, and the application of such provision to other persons or
circumstances, shall not be affected thereby.

20. (a) (1) For fiscal year 2000 and each fiscal year thereafter, there are authorized to
be appropriated such sums as may be necessary and appropriate, to remain available until
expended, and to be available solely

(A) to carry out the Small Business Development Center Program
under section 21, but not to exceed the annual funding level, as specified in section 21(a);

(B) to pay the expenses of the National Small Business Development
Center Advisory Board, as provided in section 21(i);

(C) to pay the expenses of the information sharing system, as provided
in section 21(c)(8);

(D) to pay the expenses of the association referred to in section
21(a)(3)(A) for conducting the accreditation program, as provided in section 21(k)(2); and

(E) to pay the expenses of the Administration, including salaries of
examiners, for conducting examinations as part of the accreditation program conducted by the
association referred to in section 21(a)(3)(A).

(F) to pay for small business development center grants as mandated
or directed by Congress.

(2) Notwithstanding any other provision of law, the Administration shall enter
into commitments for direct loans and to guarantee loans, debentures, payment of rentals, or
other amounts due under qualified contracts and other types of financial assistance and enter into
commitments to purchase debentures and preferred securities and to guarantee sureties against
loss pursuant to programs under this Act and the Small Business Investment Act of 1958, in the
full amounts provided by law subject only to (A) the availability of qualified applications, and
(B) limitations contained in appropriations Acts. Nothing in this paragraph authorizes the
Administration to reduce or limit its authority to enter into such commitments. Subject to
approval in appropriations Acts, amounts authorized for preferred securities, debentures or
participating securities under title III of the Small Business Investment Act of 1958 may be
obligated in one fiscal year and disbursed or guaranteed in any 1 or more of the 4 subsequent
fiscal years.

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(3) There are authorized to be transferred from the disaster loan revolving
fund such sums as may be necessary and appropriate for administrative expenses of the
Administration.

(4) Except as may be otherwise specifically provided by law, the amount of
deferred participation loans authorized in this section

(A) shall mean the net amount of the loan principal guaranteed by the
Small Business Administration (and does not include any amount which is not guaranteed); and

(B) shall be available for a national program, except that the
Administration may use not more than an amount equal to 10 percent of the amount authorized
each year for any special or pilot program directed to identified sectors of the small business
community or to specific geographic regions of the United States.

(b) There are authorized to be appropriated to the Administration for fiscal year 1991
such sums as may be necessary to carry out the provisions of this Act and the Small Business
Investment Act of 1958. There also are hereby authorized to be appropriated such sums as may
be necessary and appropriate for the carrying out of the provisions and purposes, including
administrative, of sections 7(b)(1) and 7(b)(2) of this Act; and there are authorized to be
transferred from the disaster loan revolving fund such sums as may be necessary and appropriate
for such administrative expenses.

(c) DISASTER MITIGATION PILOT PROGRAM.The following program levels
are authorized for loans under section 7(b)(1)(C):

(1) $15,000,000 for fiscal year 2005.

(2) $15,000,000 for fiscal year 2006.

(d) FISCAL YEAR 2005.

(1) PROGRAM LEVELS.The following program levels are authorized for
fiscal year 2005:

(A) For the programs authorized by this Act, the Administration is
authorized to make

(i) $75,000,000 in technical assistance grants, as provided in
section 7(m); and

(ii) $105,000,000 in direct loans, as provided in 7(m).

(B) For the programs authorized by this Act, the Administration is
authorized to make $23,050,000,000 in deferred participation loans and other financings. Of
such sum, the Administration is authorized to make
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(i) $16,500,000,000 in general business loans, as provided in
section 7(a);

(ii) $6,000,000,000 in certified development company
financings, as provided in section 7(a)(13) and as provided in section 504 of the Small Business
Investment Act of 1958;

(iii) $500,000,000 in loans, as provided in section 7(a)(21); and

(iv) $50,000,000 in loans, as provided in section 7(m).

(C) For the programs authorized by title III of the Small Business
Investment Act of 1958, the Administration is authorized to make

(i) $4,250,000,000 in purchases of participating securities; and

(ii) $3,250,000,000 in guarantees of debentures.

(D) For the programs authorized by part B of title IV of the Small
Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to
exceed $6,000,000,000, of which not more than 50 percent may be in bonds approved pursuant
to section 411(a)(3) of that Act.

(E) The Administration is authorized to make grants or enter into
cooperative agreements for a total amount of $7,000,000 for the Service Corps of Retired
Executives program authorized by section 8(b)(1).

(2) ADDITIONAL AUTHORIZATIONS.

(A) There are authorized to be appropriated to the Administration for
fiscal year 2005 such sums as may be necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses and necessary loan capital for disaster
loans pursuant to section 7(b), and to carry out the Small Business Investment Act of 1958,
including salaries and expenses of the Administration.

(B) Notwithstanding any other provision of this paragraph, for fiscal
year 2005

(i) no funds are authorized to be used as loan capital for the
loan program authorized by section 7(a)(21) except by transfer from another Federal department
or agency to the Administration, unless the program level authorized for general business loans
under paragraph (1)(B)(i) is fully funded; and

(ii) the Administration may not approve loans on its own
behalf or on behalf of any other Federal department or agency, by contract or otherwise, under
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terms and conditions other than those specifically authorized under this Act or the Small
Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this
Act in gross amounts of not more than $2,000,000.

(e) FISCAL YEAR 2006.

(1) PROGRAM LEVELS.The following program levels are authorized for
fiscal year 2006:

(A) For the programs authorized by this Act, the Administration is
authorized to make

(i) $80,000,000 in technical assistance grants, as provided in
section 7(m); and

(ii) $110,000,000 in direct loans, as provided in 7(m).

(B) For the programs authorized by this Act, the Administration is
authorized to make $25,050,000,000 in deferred participation loans and other financings. Of
such sum, the Administration is authorized to make

(i) $17,000,000,000 in general business loans, as provided in
section 7(a);

(ii) $7,500,000,000 in certified development company
financings, as provided in section 7(a)(13) and as provided in section 504 of the Small Business
Investment Act of 1958;

(iii) $500,000,000 in loans, as provided in section 7(a)(21); and

(iv) $50,000,000 in loans, as provided in section 7(m).

(C) For the programs authorized by title III of the Small Business
Investment Act of 1958, the Administration is authorized to make

(i) $4,500,000,000 in purchases of participating securities; and

(ii) $3,500,000,000 in guarantees of debentures.

(D) For the programs authorized by part B of title IV of the Small
Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to
exceed $6,000,000,000, of which not more than 50 percent may be in bonds approved pursuant
to section 411(a)(3) of that Act.

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(E) The Administration is authorized to make grants or enter into
cooperative agreements for a total amount of $7,000,000 for the Service Corps of Retired
Executives program authorized by section 8(b)(1).

(2) ADDITIONAL AUTHORIZATIONS.

(A) There are authorized to be appropriated to the Administration for
fiscal year 2006 such sums as may be necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses and necessary loan capital for disaster
loans pursuant to section 7(b), and to carry out the Small Business Investment Act of 1958,
including salaries and expenses of the Administration.

(B) Notwithstanding any other provision of this paragraph, for fiscal
year 2006

(i) no funds are authorized to be used as loan capital for the
loan program authorized by section 7(a)(21) except by transfer from another Federal department
or agency to the Administration, unless the program level authorized for general business loans
under paragraph (1)(B)(i) is fully funded; and

(ii) the Administration may not approve loans on its own
behalf or on behalf of any other Federal department or agency, by contract or otherwise, under
terms and conditions other than those specifically authorized under this Act or the Small
Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this
Act in gross amounts of not more than $2,000,000.

[(f)(i) deleted].

(j) FISCAL YEAR 2004 PURCHASE AND GUARANTEE AUTHORITY UNDER
TITLE III OF SMALL BUSINESS INVESTMENT ACT OF 1958.For fiscal year 2004, for
the programs authorized by title III of the Small Business Investment Act of 1958 (15 U.S.C. 681
et seq.), the Administration is authorized to make

(1) $4,000,000,000 in purchases of participating securities; and

(2) $3,000,000,000 in guarantees of debentures.

21. (a) (1) The Administration is authorized to make grants (including contracts and
cooperative agreements) to any State government or any agency thereof, any regional entity, any
State-chartered development, credit or finance corporation, any womens business center
operating pursuant to section 29, any public or private institution of higher education, including
but not limited to any land-grant college or university, any college or school of business,
engineering, commerce, or agriculture, community college or junior college, or to any entity
formed by two or more of the above entities (herein referred to as applicants) to assist in
establishing small business development centers and to any such body for: small business
oriented employment or natural resources development programs; studies, research, and
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counseling concerning the managing, financing, and operation of small business enterprises;
management and technical assistance regarding small business participation in international
markets, export promotion and technology transfer, delivery or distribution of such services and
information; and providing access to business analysts who can refer small business concerns to
available experts: Provided, That after December 31, 1990, the Administration shall not make a
grant to any applicant other than an institution of higher education or a womens business center
operating pursuant to section 29 as a Small Business Development Center unless the applicant
was receiving a grant (including a contract or cooperative agreement) on such date. The
Administration shall require any applicant for a small business development center grant with
performance commencing on or after J anuary 1, 1992 to have its own budget and to primarily
utilize institutions of higher education and womens business centers operating pursuant to
section 29 to provide services to the small business community. The term of such grants shall be
made on a calendar year basis or to coincide with the Federal fiscal year.

(2) The Small Business Development Centers shall work in close cooperation
with the Administrations regional and local offices, the Department of Commerce, appropriate
Federal, State and local agencies and the small business community to serve as an active
information dissemination and service delivery mechanism for existing trade promotion, trade
finance, trade adjustment, trade remedy and trade data collection programs of particular utility
for small businesses.

(3) The Small Business Development Center Program shall be under the
general management and oversight of the Administration, for the delivery of programs and
services to the small business community. Such programs and services shall be jointly
developed, negotiated, and agreed upon, with full participation of both parties, pursuant to an
executed cooperative agreement between the Small Business Development Center applicant and
the Administration.

(A) Small business development centers are authorized to form an
association to pursue matters of common concern. If more than a majority of the small business
development centers which are operating pursuant to agreements with the Administration are
members of such an association, the Administration is authorized and directed to recognize the
existence and activities of such an association and to consult with it and develop documents (i)
announcing the annual scope of activities pursuant to this section, (ii) requesting proposals to
deliver assistance as provided in this section and (iii) governing the general operations and
administration of the Small Business Development Center Program, specifically including the
development of regulations and a uniform negotiated cooperative agreement for use on an annual
basis when entering into individual negotiated agreements with small business development
centers.

(B) Provisions governing audits, cost principles and administrative
requirements for Federal grants, contracts and cooperative agreements which are included in
uniform requirements of Office of Management and Budget (OMB) Circulars shall be
incorporated by reference and shall not be set forth in summary or other form in regulations.

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(C) On an annual basis, the Small Business Development Center shall
review and coordinate public and private partnerships and cosponsorships with the Administration
for the purpose of more efficiently leveraging available resources on a National and a State basis.

(4) SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.

(A) IN GENERAL.The Administration shall require as a condition
of any grant (or amendment or modification thereof) made to an applicant under this section, that
a matching amount (excluding any fees collected from recipients of such assistance) equal to the
amount of such grant be provided from sources other than the Federal Government, to be
comprised of not less than 50 percent cash and not more than 50 percent of indirect costs and in-
kind contributions.

(B) RESTRICTION.The matching amount described in
subparagraph (A) shall not include any indirect costs or in-kind contributions derived from any
Federal program.

(C) FUNDING FORMULA.

(i) IN GENERAL.Subject to clause (iii), the amount of a
formula grant received by a State under this subparagraph shall be equal to an amount
determined in accordance with the following formula:

(I) The annual amount made available under section
20(a) for the Small Business Development Center Program, less any reductions made for
expenses authorized by clause (v) of this subparagraph, shall be divided on a pro rata basis,
based on the percentage of the population of each State, as compared to the population of the
United States.

(II) If the pro rata amount calculated under subclause (I)
for any State is less than the minimum funding level under clause (iii), the Administration shall
determine the aggregate amount necessary to achieve that minimum funding level for each such
State.

(III) The aggregate amount calculated under subclause
(II) shall be deducted from the amount calculated under subclause (I) for States eligible to
receive more than the minimum funding level. The deductions shall be made on a pro rata basis,
based on the population of each such State, as compared to the total population of all such States.

(IV) The aggregate amount deducted under subclause
(III) shall be added to the grants of those States that are not eligible to receive more than the
minimum funding level in order to achieve the minimum funding level for each such State,
except that the eligible amount of a grant to any State shall not be reduced to an amount below
the minimum funding level.

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(ii) GRANT DETERMINATION.The amount of a grant that
a State is eligible to apply for under this subparagraph shall be the amount determined under
clause (i), subject to any modifications required under clause (iii), and shall be based on the
amount available for the fiscal year in which performance of the grant commences, but not
including amounts distributed in accordance with clause (iv). The amount of a grant received by
a State under any provision of this subparagraph shall not exceed the amount of matching funds
from sources other than the Federal Government, as required under subparagraph (A).

(iii) MINIMUM FUNDING LEVEL.The amount of the
minimum funding level for each State shall be determined for each fiscal year based on the
amount made available for that fiscal year to carry out this section, as follows:

(I) If the amount made available is not less than
$81,500,000 and not more than $90,000,000, the minimum funding level shall be $500,000.

(II) If the amount made available is less than
$81,500,000, the minimum funding level shall be the remainder of $500,000 minus a percentage
of $500,000 equal to the percentage amount by which the amount made available is less than
$81,500,000.

(III) If the amount available is more than $90,000,000,
the minimum funding level shall be the sum of $500,000 Plus a percentage of $500,000 equal to
the percentage amount by which the amount made available exceeds $90,000,000.

(iv) DISTRIBUTIONS.Subject to clause (iii), if any State
does not apply for, or use, its full funding eligibility for a fiscal year, the Administration shall
distribute the remaining funds as follows:

(I) If the grant to any State is less than the amount
received by that State in Fiscal year 2000, the Administration shall distribute such remaining
funds, on a pro rata bases, based on the percentage of shortage of each such State, as compared
to the total amount of such remaining funds available, to the extent necessary in order to increase
the amount of the grant to the amount received by that State in fiscal year 2000, or until such
funds are exhausted, whichever first occurs.

(II) If any funds remain after the application of
subclause (I), the remaining amount may be distributed as supplemental grants to any State, as
the Administration determines, in its discretion, to be appropriate, after consultation with the
association referred to in subsection (a)(3)(A).

(v) USE OF AMOUNTS.

(I) IN GENERAL.Of the amounts made available in
any fiscal year to carry out this section

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(aa) not more than $500,000 may be used by the
Administration to pay expenses enumerated in subparagraphs (B) through (D) of section
20(a)(1); and

(bb) not more than $500,000 may be used by the
Administration to pay the examination expenses enumerated in section 20(a)(1)(E).

(II) LIMITATION.No funds described in subclause
(I) may be used for examination expenses under section 20(a)(1)(E) if the usage would reduce
the amount of grants made available under clause (i)(I) of this subparagraph to less than
$85,000,000 (after excluding any amounts provided in appropriations Acts, or accompanying
report language, for specific institutions or for purposes other than the general small business
development center program) or would further reduce the amount of such grants below such
amount.

(vi) EXCLUSIONS.Grants provided to a State by the
Administration or another Federal agency to carry out subsection (a)(6) or (c)(3)(G), or for
supplemental grants set forth in clause (iv)(II) of this subparagraph, shall not be included in the
calculation of maximum funding for a State under clause (ii) of this subparagraph.

(vii) AUTHORIZATION OF APPROPRIATIONS.There are
authorized to be appropriated to carry out this subparagraph

(I) $130,000,000 for fiscal year 2005; and

(II) $135,000,000 for fiscal year 2006.

(viii) LIMITATION.From the funds appropriated pursuant to
clause (vii), the Administration shall reserve not less than $1,000,000 in each fiscal year to
develop portable assistance for startup and sustainability non-matching grant programs to be
conducted by eligible small business development centers in communities that are economically
challenged as a result of a business or government facility down sizing or closing, which has
resulted in the loss of jobs or small business instability. A non-matching grant under this clause
shall not exceed $100,000, and shall be used for small business development center personnel
expenses and related small business programs and services.

(ix) STATE DEFINED.In this subparagraph, the term State
means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, and American Samoa.

(5) FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT
CENTERS.

(A) IN GENERAL.Subject to the conditions set forth in
subparagraph (B), a small business development center may enter into a contract with a Federal
department or agency to provide specific assistance to small business concerns.
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(B) CONTRACT PREREQUISITES.Before bidding on a contract
described in subparagraph (A), a small business development center shall receive approval from
the Associate Administrator of the small business development center program of the subject and
general scope of the contract. Each approval under subparagraph (A) shall be based upon a
determination that the contract will provide assistance to small business concerns and that
performance of the contract will not hinder the small business development center in carrying out
the terms of the grant received by the small business development center from the Administration.

(C) EXEMPTION FROM MATCHING REQUIREMENT.A
contract under this paragraph shall not be subject to the matching funds or eligibility
requirements of paragraph (4).

(D) ADDITIONAL PROVISION.Notwithstanding any other
provision of law, a contract for assistance under this paragraph shall not be applied to any
Federal department or agencys small business, woman-owned business, or socially and
economically disadvantaged business contracting goal under section 15(g).

(6) Any applicant which is funded by the Administration as a Small Business
Development Center may apply for an additional grant to be used solely to assist

(A) with the development and enhancement of exports by small
business concerns;

(B) in technology transfer; and

(C) with outreach, development, and enhancement of minority-owned
small business startups or expansions, HUBZone small business concerns, veteran-owned small
business startups or expansions, and women-owned small business startups or expansions, in
communities impacted by base closings or military or corporate downsizing, or in rural or
underserved communities;

as provided under subparagraphs (B) through (G) of subsection (c)(3). Applicants for such
additional grants shall comply with all of the provisions of this section, including providing
matching funds, except that funding under this paragraph shall be effective for any fiscal year to
the extent provided in advance in appropriations Acts and shall be in addition to the dollar
program limitations specified in paragraphs (4) and (5). No recipient of funds under this
paragraph shall receive a grant which would exceed its pro rata share of a $15,000,000 program
based upon the populations to be served by the Small Business Development Center as compared
to the total population of the United States. The minimum amount of eligibility for any State
shall be $100,000.

(7) PRIVACY REQUIREMENTS.

(A) IN GENERAL.A small business development center,
consortium of small business development centers, or contractor or agent of a small business
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development center may not disclose the name, address, or telephone number of any individual
or small business concern receiving assistance under this section without the consent of such
individual or small business concern, unless

(i) the Administrator is ordered to make such a disclosure by a
court in any civil or criminal enforcement action initiated by a Federal or State agency; or

(ii) the Administrator considers such a disclosure to be
necessary for the purpose of conducting a financial audit of a small business development center,
but a disclosure under this clause shall be limited to the information necessary for such audit.

(B) ADMINISTRATOR USE OF INFORMATION.This section
shall not

(i) restrict Administrator access to program activity data; or

(ii) prevent the Administrator from using client information to
conduct client surveys.

(C) REGULATIONS.

(i) IN GENERAL.The Administrator shall issue regulations
to establish standards

(I) for disclosures with respect to financial audits under
subparagraph (A)(ii); and

(II) for client surveys under subparagraph (B)(ii),
including standards for oversight of such surveys and for dissemination and use of client
information.

(ii) MAXIMUM PRIVACY PROTECTION.Regulations
under this subparagraph, [sic] shall, to the extent practicable, provide for the maximum amount
of privacy protection.

(iii) INSPECTOR GENERAL.Until the effective date of
regulations under this subparagraph, any client survey and the use of such information shall be
approved by the Inspector General who shall include such approval in his semi-annual report.

(b) (1) Financial assistance shall not be made available to any applicant if
approving such assistance would be inconsistent with a Plan for the area involved which has
been adopted by an agency recognized by the State government as authorized to do so and
approved by the Administration in accordance with the standards and requirements established
pursuant to this section.

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(2) An applicant may apply to participate in the program by submitting to the
Administration for approval a Plan naming those authorized in subsection (a) to participate in the
program, the geographic area to be served, the services that it would provide, the method for
delivering services, a budget, and any other information and assurances the Administration may
require to insure that the applicant will carry out the activities eligible for assistance. The
Administration is authorized to approve, conditionally approve or reject a Plan or combination of
Plans submitted. In all cases, the Administration shall review Plans for conformity with the Plan
submitted pursuant to paragraph (1) of this subsection, and with a view toward providing small
business with the most comprehensive and coordinated assistance in the State or part thereof to
be served.

(3) At the discretion of the Administration, the Administration is authorized to
permit a small business development center to provide advice, information and assistance, as
described in subsection (c), to small businesses located outside the State, but only to the extent
such businesses are located within close geographical proximity to the small business
development center, as determined by the Administration.

(c) (1) Applicants receiving grants under this section shall assist small businesses
in solving problems concerning operations, manufacturing, engineering, technology exchange
and development, personnel administration, marketing, sales, merchandising, finance,
accounting, business strategy development, and other disciplines required for small business
growth and expansion, innovation, increased productivity, and management improvement, and
for decreasing industry economic concentrations.

(2) A small business development center shall provide services as close as
possible to small businesses by providing extension services and utilizing satellite locations
when necessary. The facilities and staff of each Small Business Development Center shall be
located in such places as to provide maximum accessibility and benefits to the small business
which the center is intended to serve. To the extent possible, it also shall make full use of other
Federal and State government programs that are concerned with aiding small business. A small
business development center shall have

(A) a full-time staff, including a full-time director who shall have the
authority to make expenditures under the center's budget and who shall manage the program
activities;

(B) access to business analysts to counsel, assist, and inform small
business clients;

(C) access to technology transfer agents to provide state of art
technology to small businesses through coupling with national and regional technology data
sources;

(D) access to information specialists to assist in providing information
searches and referrals to small business;

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(E) access to part-time professional specialists to conduct research or
to provide counseling assistance whenever the need arises; and

(F) access to laboratory and adaptive engineering facilities.

(3) Services provided by a small business development center shall include,
but shall not be limited to

(A) furnishing one-to-one individual counseling to small businesses,
including

(i) working with individuals to increase awareness of basic
credit practices and credit requirements;

(ii) working with individuals to develop business Plans,
financial packages, credit applications, and contract proposals;

(iii) working with the Administration to develop and provide
informational tools for use in working with individuals on pre-business startup Planning, existing
business expansion, and export Planning; and

(iv) working with individuals referred by the local offices of the
Administration and Administration participating lenders;

(B) assisting in technology transfer, research and development,
including applied research, and coupling from existing sources to small businesses, including

(i) working to increase the access of small businesses to the
capabilities of automated flexible manufacturing systems;

(ii) working through existing networks and developing new
networks for technology transfer that encourage partnership between the small business and
academic communities to help commercialize university-based research and development and
introduce university-based engineers and scientists to their counterparts in small technology-
based firms; and

(iii) exploring the viability of developing shared production
facilities, under appropriate circumstances;

(C) in cooperation with the Department of Commerce and other
relevant Federal agencies, actively assisting small businesses in exporting by identifying and
developing potential export markets, facilitating export transactions, developing linkages
between United States small business firms and prescreened foreign buyers, assisting small
businesses to participate in international trade shows, assisting small businesses in obtaining
export financing, and facilitating the development or reorientation of marketing and production
strategies; where appropriate, the Small Business Development Center and the Administration
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may work in cooperation with the State to establish a State international trade center for these
purposes;

(D) developing a program in conjunction with the Export-Import Bank
and local and regional Administration offices that will enable Small Business Development
Centers to serve as an information network and to assist small business applicants for Export-
Import Bank financing programs, and otherwise identify and help to make available export
financing programs to small businesses;

(E) working closely with the small business community, small
business consultants, State agencies, universities and other appropriate groups to make
translation services more readily available to small business firms doing business, or attempting
to develop business, in foreign markets;

(F) in providing assistance under this subsection, applicants shall
cooperate with the Department of Commerce and other relevant Federal agencies to increase
access to available export market information systems, including the CIMS system;

(G) assisting small businesses to develop and implement strategic
business Plans to timely and effectively respond to the planned closure (or reduction) of a
Department of Defense facility within the community, or actual or projected reductions in such
firms business base due to the actual or projected termination (or reduction) of a Department of
Defense program or a contract in support of such program

(i) by developing broad economic assessments of the adverse
impacts of

(I) the closure (or reduction) of the Department of
Defense facility on the small business concerns providing goods or services to such facility or to
the military and civilian personnel currently stationed or working at such facility; and

(II) the termination (or reduction) of a Department of
Defense program (or contracts under such program) on the small business concerns participating
in such program as a prime contractor, subcontractor or supplier at any tier;

(ii) by developing, in conjunction with appropriate Federal,
State, and local governmental entities and other private sector organizations, the parameters of a
transition adjustment program adaptable to the needs of individual small business concerns;

(iii) by conducting appropriate programs to inform the affected
small business community regarding the anticipated adverse impacts identified under clause (i)
and the economic adjustment assistance available to such firms; and

(iv) by assisting small business concerns to develop and
implement an individualized transition business Plan.

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(H) maintaining current information concerning Federal, State, and
local regulations that affect small businesses and counsel small businesses on methods of
compliance. Counseling and technology development shall be provided when necessary to help
small businesses find solutions for complying with environmental, energy, health, safety, and
other Federal, State, and local regulations;

(I) coordinating and conducting research into technical and general
small business problems for which there are no ready solutions;

(J ) providing and maintaining a comprehensive library that contains
current information and statistical data needed by small businesses;

(K) maintaining a working relationship and open communications with
the financial and investment communities, legal associations, local and regional private
consultants, and local and regional small business groups and associations in order to help
address the various needs of the small business community;

(L) conducting in-depth surveys for local small business groups in
order to develop general information regarding the local economy and general small business
strengths and weaknesses in the locality;

(M) in cooperation with the Department of Commerce, the
Administration and other relevant Federal agencies, actively assisting rural small businesses in
exporting by identifying and developing potential export markets for rural small businesses,
facilitating export transactions for rural small businesses, developing linkages between United
States rural small businesses and prescreened foreign buyers, assisting rural small businesses to
participate in international trade shows, assisting rural small businesses in obtaining export
financing and developing marketing and production strategies;

(N) assisting rural small businesses

(i) in developing marketing and production strategies that will
enable them to better compete in the domestic market

(ii) by providing technical assistance needed by rural small
businesses;

(iii) by making available managerial assistance to rural small
business concerns; and

(iv) by providing information and assistance in obtaining
financing for business startups and expansion;

(O) in conjunction with the United States Travel and Tourism
Administration, assist rural small business in developing the tourism potential of rural
communities by
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(i) identifying the cultural, historic, recreational, and scenic
resources of such communities;

(ii) providing assistance to small businesses in developing
tourism marketing and promotion Plans relating to tourism in rural areas; and

(iii) assisting small business concerns to obtain capital for
starting or expanding businesses primarily serving tourists;

(P) maintaining lists of local and regional private consultants to whom
small businesses can be referred;

(Q) providing information to small business concerns regarding
compliance with regulatory requirements;

(R) developing informational publications, establishing resource
centers of reference materials, and distributing compliance guides published under section 312(a)
of the Small Business Regulatory Enforcement Fairness Act of 1996;

(S) providing small business owners with access to a wide variety of
export-related information by establishing on-line computer linkages between small business
development centers and an international trade data information network with ties to the Export
Assistance Center program; and

(T) providing information and assistance to small business concerns
with respect to establishing drug-free workplace programs on or before October 1, 2006.

(4) A small business development center shall continue to upgrade and
modify its services, as needed, in order to meet the changing and evolving needs of the small
business community.

(5) In addition to the methods prescribed in section 21(c)(2), a small business
development center shall utilize and compensate as one of its resources qualified small business
vendors, including but not limited to, private management consultants, private consulting
engineers and private testing laboratories, to provide services as described in this subsection to
small businesses on behalf of such small business development center.

(6) In any State (A) in which the Administration has not made a grant
pursuant to paragraph (1) of subsection (a), or (B) in which no application for a grant has been
made by a Small Business Development Center pursuant to paragraph (6) of such subsection
within 60 days after the effective date of any grant under subsection (a)(1) to such center or the
date the Administration notifies the grantee funded under subsection (a)(1) that funds are
available for grant applications pursuant to subsection (a)(6), whichever date occurs last, the
Administration may make grants to a non-profit entity in that State to carry out the activities
specified in paragraph (6) of subsection (a). Any such applicants shall comply with the matching
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funds requirement of paragraph (4) of subsection (a). Such grants shall be effective for any
fiscal year only to the extent provided in advance in appropriations Acts, and each State shall be
limited to the pro rata share provisions of paragraph (6) of subsection (a).

(7) In performing the services identified in paragraph (3), the Small Business
Development Centers shall work in close cooperation with the Administration's regional and
local offices, the local small business community, and appropriate State and local agencies.

(8) The Associate Administrator for Small Business Development Centers, in
consultation with the Small Business Development Centers, shall develop and implement an
information sharing system. Subject to amounts approved in advance in appropriations Acts, the
Administration may make grants or enter cooperative agreements with one or more centers to
carry out the provisions of this paragraph. Said grants or cooperative agreements shall be
awarded for periods of no more than five years duration. The matching funds provisions of
subsection (a) shall not be applicable to grants or cooperative agreements under this paragraph.
The system shall

(A) allow Small Business Development Centers participating in the
program to exchange information about their programs; and

(B) provide information central to technology transfer.

(d) Where appropriate, the Small Business Development Centers shall work in
conjunction with the relevant State agency and the Department of Commerce to develop a
comprehensive Plan for enhancing the export potential of small businesses located within the
State. This Plan may involve the cofunding and staffing of a State Office of International Trade
within the State Small Business Development Center, using joint State and Federal funding, and
any other appropriate measures directed at improving the export performances of small
businesses within the State.

(e) Laboratories operated and funded by the Federal Government are authorized and
directed to cooperate with the Administration in developing and establishing programs to support
small business development centers by making facilities and equipment available; providing
experiment station capabilities in adaptive engineering; providing library and technical
information processing capabilities; and providing professional staff for consulting. The
Administration is authorized to reimburse the laboratories for such services.

(f) The National Science Foundation is authorized and directed to cooperate with the
Administration and with the Small Business Development Centers in developing and
establishing programs to support the centers.

(g) NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND
REGIONAL TECHNOLOGY TRANSFER CENTERS.The National Aeronautics and Space
Administration and regional technology transfer centers supported by the National Aeronautics
and Space Administration are authorized and directed to cooperate with small business
development centers participating in the program.
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(h) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOPMENT
CENTERS.

(1) APPOINTMENT AND COMPENSATION.The Administrator shall
appoint an Associate Administrator for Small Business Development Centers who shall report to
an official who is not more than one level below the Office of the Administrator and who shall
serve without regard to the provisions of title 5 governing appointments in the competitive
service, and without regard to chapter 51, and subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, but at a rate not less than the rate of GS-17 of the
General Schedule.

(2) DUTIES.

(A) IN GENERAL.The sole responsibility of the Associate
Administrator for Small Business Development Centers shall be to administer the small business
development center program. Duties of the position shall include recommending the annual
program budget, reviewing the annual budgets submitted by each applicant, establishing
appropriate funding levels therefore, selecting applicants to participate in this program,
implementing the provisions of this section, maintaining a clearinghouse to provide for the
dissemination and exchange of information between small business development centers and
conducting audits of recipients of grants under this section.

(B) CONSULTATION REQUIREMENTS.In carrying out the duties
described in this subsection, the Associate Administrator shall confer with and seek the advice of
the Board established by subsection (i) and Administration officials in areas served by the small
business development centers; however, the Associate Administrator shall be responsible for the
management and administration of the program and shall not be subject to the approval or
concurrence of such Administration officials.

(i) (1) There is established a National Small Business Development Center
Advisory Board (herein referred to as Board) which shall consist of nine members appointed
from civilian life by the Administrator and who shall be persons of outstanding qualifications
known to be familiar and sympathetic with small business needs and problems. No more than
three members shall be from universities or their affiliates and six shall be from small businesses
or associations representing small businesses. At the time of the appointment of the Board, the
Administrator shall designate one-third of the members and at least one from each category
whose term shall end in two years from the date of appointment, a second third whose terms
shall end in three years from the date of appointment, and the final third whose term shall end in
four years from the date of appointment. Succeeding Boards shall have three-year terms, with
one-third of the Board changing each year.

(2) The Board shall elect a Chairman and advise, counsel, and confer with the
Associate Administrator for Small Business Development Centers in carrying out the duties
described in this section. The Board shall meet at least semiannually and at the call of the
Chairman of the Board. Each member of the Board shall be entitled to be compensated at the
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rate not in excess of their per diem equivalent of the highest rate of pay for individuals
occupying the position under GS-18 of the General Schedule for each day engaged in activities
of the Board and shall be entitled to be reimbursed for expenses as a member of the Board.

(j) (1) Each small business development center shall establish an advisory board.

(2) Each small business development center advisory board shall elect a
chairman and advise, counsel, and confer with the director of the small business development
center on all policy matters pertaining to the operation of the small business development center,
including who may be eligible to receive assistance from, and how local and regional private
consultants may participate with the small business development center.

(k) PROGRAM EXAMINATION AND ACCREDITATION.

(1) EXAMINATION.Not later than 180 days after the date of enactment of
this subsection, the Administration shall develop and implement a biennial programmatic and
financial examination of each small business development center established pursuant to this
section.

(2) ACCREDITATION.The Administration may provide financial support,
by contract or otherwise, to the association authorized by subsection (a)(3)(A) for the purpose of
developing a small business development center accreditation program.

(3) EXTENSION OR RENEWAL OF COOPERATIVE AGREEMENTS.

(A) IN GENERAL.-In extending or renewing a cooperative agreement
of a small business development center, the Administration shall consider the results of the
examination and accreditation program conducted pursuant to paragraphs (1) and (2).

(B) ACCREDITATION REQUIREMENT.After September 30,
2000, the Administration may not renew or extend any cooperative agreement with a small
business development center unless the center has been approved under the accreditation
program conducted pursuant to this subsection, except that the Associate Administrator for Small
Business Development Centers may waive such accreditation requirement, in the discretion of
the Associate Administrator, upon a showing that the center is making a good faith effort to
obtain certification.

(l) CONTRACT AUTHORITY.The authority to enter into contracts shall be in
effect for each fiscal year only to the extent and in the amounts as are provided in advance in
appropriations Acts. After the administration [sic] has entered a contract, either as a grant or a
cooperative agreement, with any applicant under this section, it shall not suspend, terminate, or
fail to renew or extend any such contract unless the Administration provides the applicant with
written notification setting forth the reasons therefore and affording the applicant an opportunity
for a hearing, appeal, or other administrative proceeding under the provisions of chapter 5 of title
5, United States Code. If any contract or cooperative agreement under this section with an entity
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that is covered by this section is not renewed or extended, any award of a successor contract or
cooperative agreement under this section to another entity shall be made on a competitive basis.

(m) PROHIBITION ON CERTAIN FEES.A small business development center
shall not impose or otherwise collect a fee or other compensation in connection with the
provision of counseling services under this section.

(n) VETERANS ASSISTANCE AND SERVICES PROGRAM.

(1) IN GENERAL.A small business development center may apply for a
grant under this subsection to carry out a veterans assistance and services program.

(2) ELEMENTS OF PROGRAM.Under a program carried out with a grant
under this subsection, a small business development center shall

(A) create a marketing campaign to promote awareness and education
of the services of the center that are available to veterans, and to target the campaign toward
veterans, service-disabled veterans, military units, Federal agencies, and veterans organizations;

(B) use technology-assisted online counseling and distance learning
technology to overcome the impediments to entrepreneurship faced by veterans and members of
the Armed Forces; and

(C) increase coordination among organizations that assist veterans,
including by establishing virtual integration of service providers and offerings for a one-stop
point of contact for veterans who are entrepreneurs or owners of small business concerns.

(3) AMOUNT OF GRANTS.A grant under this subsection shall be for not
less than $75,000 and note more than $250,000.

(4) FUNDING.Subject to amounts approved in advance in appropriations
Acts, the Administration may make grants or enter into cooperative agreements to carry out the
provisions of this subsection.

21A. [Repealed].

22. (a) There is established within the Administration an Office of International Trade
which shall implement the programs pursuant to this section.

(b) The Office, working in close cooperation with the Department of Commerce and
other relevant Federal agencies, Small Business Development Centers engaged in export
promotion efforts, regional and local Administration offices, the small business community, and
relevant State and local export promotion programs, shall

(1) assist in developing a distribution network for existing trade promotion,
trade finance, trade adjustment, trade remedy assistance and trade data collection programs
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through use of the Administration's regional and local offices and the Small Business
Development Center network;

(2) assist in the aggressive marketing of these programs and the dissemination
of marketing information, including computerized marketing data, to the small business
community; and

(3) give preference in hiring or approving the transfer of any employee into
the Office or to a position described in paragraph (8) below to otherwise qualified applicants
who are fluent in a language in addition to English. Such employees shall accompany foreign
trade missions if designated by the director of the Office and shall be available as needed to
translate documents, interpret conversations and facilitate multilingual transactions including
providing referral lists for translation services if required.

(c) The Office shall promote sales opportunities for small business goods and
services abroad. To accomplish this objective the office shall

(1) in cooperation with the Department of Commerce, other relevant agencies,
regional and local Administration offices, the Small Business Development Center network, and
State programs, develop a mechanism for (A) identifying sub-sectors of the small business
community with strong export potential; (B) identifying areas of demand in foreign markets; (C)
prescreening foreign buyers for commercial and credit purposes; and (D) assisting in increasing
international marketing by disseminating relevant information regarding market leads, linking
potential sellers and buyers, and catalyzing the formation of joint ventures, where appropriate;

(2) in cooperation with the Department of Commerce, actively assist small
businesses in the formation and utilization of export trading companies, export management
companies and research and development pools authorized under section 9 of this Act;

(3) work in conjunction with other Federal agencies, regional and local offices
of the Administration, the Small Business Development Center network, and the private sector to
identify and publicize existing translation services, including those available through colleges
and universities participating in the Small Business Development Center Program;

(4) work closely with the Department of Commerce and other relevant
Federal agencies to

(A) collect, analyze and periodically update relevant data regarding the
small business share of United States exports and the nature of State exports (including the
production of Gross State Produce figures) and disseminate that data to the public and to
Congress;

(B) make recommendations to the Secretary of Commerce and to
Congress regarding revision of the SIC codes to encompass industries currently overlooked and
to create SIC codes for export trading companies and export management companies;

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(C) improve the utility and accessibility of existing export promotion
programs for small businesses; and

(D) increase the accessibility of the Export Trading Company contact
facilitation service;

(5) make available to the small business community information regarding
conferences on exporting and international trade sponsored by the public and private sector;

(6) provide small businesses with access to current and complete export
information by

(A) making available, at the Administration's regional offices through
cooperation with the Department of Commerce, export information, including, but not limited to,
the worldwide information and trade system and world trade data reports;

(B) maintaining a current list of financial institutions that finance
export operations;

(C) maintaining a current directory of all Federal, regional, State and
private sector programs that provide export information and assistance to small businesses; and

(D) preparing and publishing such reports as it determines to be
necessary concerning market conditions, sources of financing, export promotion programs, and
other information pertaining to the needs of small business exporting firms so as to insure that
the maximum information is made available to small businesses in a readily usable form;

(7) encourage through cooperation with the Department of Commerce, greater
small business participation in trade fairs, shows, missions, and other domestic and overseas
export development activities of the Department of Commerce; and

(8) facilitate decentralized delivery of export information and assistance to
small businesses by assigning full-time export development specialists to each Administration
regional office and assigning primary responsibility for export development to one person in
each district office. Such specialists shall

(A) assist small businesses in obtaining export information and
assistance from other Federal departments and agencies;

(B) maintain a current directory of all programs which provide export
information and assistance to small businesses within the region;

(C) encourage financial institutions to develop and expand programs
for export financing;

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(D) provide advice to Administration personnel involved in granting
loans, loan guarantees, and extensions and revolving lines of credit, and providing other forms of
assistance to small businesses engaged in exports; and

(E) within one hundred and eighty days of their appointment, participate
in training programs designed by the Administrator, in conjunction with the Department of
Commerce and other Federal departments and agencies, to study export programs and to examine
small businesses needs for export information and assistance.

(d) The Office shall work in cooperation with the Export-Import Bank of the United
States, the Department of Commerce, other relevant Federal agencies, and the States to develop a
program through which export specialists in the regional offices of the Administration, regional
and local loan officers, and Small Business Development Center personnel can facilitate the
access of small businesses to relevant export financing programs of the Export-Import Bank of
the United States and to export and pre-export financing programs available from the
Administration and the private sector. To accomplish this goal, the Office shall work in
cooperation with the Export-Import Bank and the small business community, including small
business trade associations, to

(1) aggressively market existing Administration export financing and
pre-export financing programs;

(2) identify financing available under various Export-Import Bank programs,
and aggressively market those programs to small businesses;

(3) assist in the development of financial intermediaries and facilitate the
access of those intermediaries to existing financing programs;

(4) promote greater participation by private financial institutions, particularly
those institutions already participating in loan programs under this Act, in export finance; and

(5) provide for the participation of appropriate Administration personnel in
training programs conducted by the Export-Import Bank.

(e) The Office shall

(1) work in cooperation with other Federal agencies and the private sector to
counsel small businesses with respect to initiating and participating in any proceedings relating
to the administration of the United States trade laws; and

(2) work with the Department of Commerce, the Office of the United States
Trade Representative, and the International Trade Commission to increase access to trade
remedy proceedings for small businesses.

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(f) The Office shall report to the Committees on Small Business of the House of
Representatives and the Senate on an annual basis as to its progress in implementing the
requirements under this section.

(g) The Office, in cooperation, where appropriate, with the Division of Economic
Research of the Office of Advocacy, and with other Federal agencies, shall undertake studies
regarding the following issues and shall report to the Committees on Small Business of the
House of Representatives and the Senate, and to other relevant Committees of the House and
Senate within 6 months after the date of enactment of the Small Business International Trade and
Competitiveness Act with specific recommendations on

(1) the viability and cost of establishing an annual, competitive small business
export incentive program similar to the Small Business Innovation Research program and
alternative methods of structuring such a program;

(2) methods of streamlining trade remedy proceedings to increase access for,
and reduce expenses incurred by, smaller firms;

(3) methods of improving the current small business foreign sales corporation
tax incentives and providing small businesses with greater benefits from this initiative;

(4) methods of identifying potential export markets for United States small
businesses; maintaining and disseminating current foreign market data; and devising a
comprehensive export marketing strategy for United States small business goods and services,
and shall include data on the volume and dollar amount of goods and services, identified by type,
imported by United States trading partners over the past 10 years; and

(5) the results of a survey of major United States trading partners to identify
the domestic policies, programs and incentives, and the private sector initiatives, which exist to
encourage the formation and growth of small business.

23. SUPERVISORY AND ENFORCEMENT AUTHORITY FOR SMALL BUSINESS
LENDING COMPANIES.

(a) IN GENERAL.The Administrator is authorized

(1) to supervise the safety and soundness of small business lending companies
and non-Federally regulated lenders;

(2) with respect to small business lending companies to set capital standards
to regulate, to examine, and to enforce laws governing such companies, in accordance with the
purposes of this Act; and

(3) with respect to non-Federally regulated lenders to regulate, to examine,
and to enforce laws governing the lending activities of such lenders under section 7(a) in
accordance with the purposes of this Act.
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(b) CAPITAL DIRECTIVE.

(1) IN GENERAL.If the Administrator determines that a small business
lending company is being operated in an imprudent manner, the Administrator may, in addition
to any other action authorized by law, issue a directive to such company to increase capital to
such level as the Administrator determines will result in the safe and sound operation of such
company.

(2) DELEGATION.The Administrator may not delegate the authority
granted under paragraph (1) except to an Associate Deputy Administrator.

(3) REGULATIONS.The Administrator shall issue regulations outlining
the conditions under which the Administrator may determine the level of capital pursuant to
paragraph (1).

(c) CIVIL ACTION.If a small business lending company violates this Act, the
Administrator may institute a civil action in an appropriate district court to terminate the rights,
privileges, and franchises of the company under this Act.

(d) REVOCATION OR SUSPENSION OF LOAN AUTHORITY.

(1) The Administrator may revoke or suspend the authority of a small
business lending company or a non-Federally regulated lender to make, service or liquidate
business loans authorized by section 7(a) of this Act

(A) for false statements knowingly made in any written submission
required under this Act;

(B) for omission of a material fact from any written submission
required under this Act;

(C) for willful or repeated violation of this Act;

(D) for willful or repeated violation of any condition imposed by the
Administrator with respect to any application, request, or agreement under this Act; or

(E) for violation of any cease and desist order of the Administrator
under this section.

(2) The Administrator may revoke or suspend authority under paragraph (1)
only after a hearing under subsection (f). The Administrator may delegate power to revoke or
suspend authority under paragraph (1) only to the Deputy Administrator and only if the
Administrator is unavailable to take such action.

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(A) The Administrator, after finding extraordinary circumstances and
in order to protect the financial or legal position of the United States, may issue a suspension
order without conducting a hearing pursuant to subsection (f). If the Administrator issues a
suspension under the preceding sentence, the Administrator shall within two business days
follow the procedures set forth in subsection (f).

(B) Any suspension under paragraph (1) shall remain in effect until the
Administrator makes a decision pursuant to subparagraph (4) to permanently revoke the authority
of the small business lending company or non-Federally regulated lender, suspend the authority
for a time certain, or terminate the suspension.

(3) The small business lending company or non-Federally regulated lender
must notify borrowers of a revocation and that a new entity has been appointed to service their
loans. The Administrator or an employee of the Administration designated by the Administrator
may provide such notice to the borrower.

(4) Any revocation or suspension under paragraph (1) shall be made by the
Administrator except that the Administrator shall delegate to an administrative law judge as that
term is used in section 3105 of title 5, United States Code, the authority to conduct any hearing
required under subsection (f). The Administrator shall base the decision to revoke on the record
of the hearing.

(e) CEASE AND DESIST ORDER.

(1) Where a small business lending company, a non-Federally regulated
lender, or other person violates this Act or is engaging or is about to engage in any acts or
practices which constitute or will constitute a violation of this Act, the Administrator may order,
after the opportunity for hearing pursuant to subsection (f), the company, lender, or other person
to cease and desist from such action or failure to act. The Administrator may delegate the
authority under the preceding sentence only to the Deputy Administrator and only if the
Administrator is unavailable to take such action.

(2) The Administrator, after finding extraordinary circumstances and in order
to protect the financial or legal position of the United States, may issue a cease and desist order
without conducting a hearing pursuant to subsection (f). If the Administrator issues a cease and
desist order under the preceding sentence, the Administrator shall within two business days
follow the procedures set forth in subsection (f).

(3) The Administrator may further order such small business lending
company or non-Federally regulated lender or other person to take such action or to refrain from
such action as the Administrator deems necessary to insure compliance with this Act.

(4) A cease and desist order under this subsection may also provide for the
suspension of authority to lend in subsection (d).

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(f) PROCEDURE FOR REVOCATION OR SUSPENSION OF LOAN
AUTHORITY AND FOR CEASE AND DESIST ORDER.

(1) Before revoking or suspending authority under subsection (d) or issuing a
cease and desist order under subsection (e), the Administrator shall serve an order to show cause
upon the small business lending company, non-Federally regulated lender, or other person why
an order revoking or suspending the authority or a cease and desist order should not be issued.
The order to show cause shall contain a statement of the matters of fact and law asserted by the
Administrator and the legal authority and jurisdiction under which a hearing is to be held, and
shall set forth that a hearing will be held before an administrative law judge at a time and place
stated in the order. Such hearing shall be conducted pursuant to the provisions of sections 554,
556, and 557 of title 5, United States Code. If after hearing, or a waiver thereof, the
Administrator determines that an order revoking or suspending the authority or a cease and desist
order should be issued, the Administrator shall promptly issue such order, which shall include a
statement of the findings of the Administrator and the grounds and reasons therefore and specify
the effective date of the order, and shall cause the order to be served on the small business
lending company, non-Federally regulated lender, or other person involved.

(2) Witnesses summoned before the Administrator shall be paid by the party
at whose instance they were called the same fees and mileage that are paid witnesses in the
courts of the United States.

(3) A cease and desist order, suspension or revocation issued by the
Administrator, after the hearing under this subsection is final agency action for purposes of
chapter 7 of title 5, United States Code. An adversely aggrieved party shall have 20 days from
the date of issuance of the cease and desist order, suspension or revocation, to seek judicial
review in an appropriate district court.

(g) REMOVAL OR SUSPENSION OF MANAGEMENT OFFICIAL.

(1) DEFINITION.In this section, the term management official means,
with respect to a small business lending company or a non-Federally regulated lender, an officer,
director, general partner, manager, employee, agent, or other participant in the management of
the affairs of the companys or lenders activities under section 7(a) of this Act.

(2) REMOVAL OF MANAGEMENT OFFICIAL.

(A) NOTICE.The Administrator may serve upon any management
official a written notice of its intention to remove that management official if, in the opinion of
the Administrator, the management official

(i) willfully and knowingly commits a substantial violation
of

(I) this Act;

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(II) any regulation issued under this Act;

(III) a final cease-and-desist order under this Act; or

(IV) any agreement by the management official, the
small business lending company or non-Federally regulated lender under this Act; or

(ii) willfully and knowingly commits a substantial breach of a
fiduciary duty of that person as a management official and the violation or breach of fiduciary
duty is one involving personal dishonesty on the part of such management official.

(B) CONTENTS OF NOTICE.A notice under subparagraph (A)
shall contain a statement of the facts constituting grounds therefore and shall fix a time and place
at which a hearing, conducted pursuant to sections 554, 556, and 557 of title 5, United States
Code, will be held thereon.

(C) HEARING.

(i) TIMING.A hearing under subparagraph (B) shall be held
not earlier than 30 days and later than 60 days after the date of service of notice of the hearing,
unless an earlier or a later date is set by the Administrator at the request of

(I) the management official, and for good cause shown; or

(II) the Attorney General.

(ii) CONSENT.Unless the management official appears at a
hearing under this paragraph in person or by a duly authorized representative, the management
official shall be deemed to have consented to the issuance of an order of removal under
subparagraph (A).

(D) ORDER OF REMOVAL.

(i) IN GENERAL.In the event of consent under
subparagraph (C)(ii), or if upon the record made at a hearing under this subsection, the
Administrator finds that any of the grounds specified in the notice of removal has been
established, the Administrator may issue such orders of removal from office as the Administrator
deems appropriate.

(ii) EFFECTIVENESS.An order under clause (i) shall

(I) take effect 30 days after the date of service upon the
subject small business lending company or non-Federally regulated lender and the management
official concerned (except in the case of an order issued upon consent as described in
subparagraph (C)(ii), which shall become effective at the time specified in such order); and

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(II) remain effective and enforceable, except to such
extent as it is stayed, modified, terminated, or set aside by action of the Administrator or a
reviewing court in accordance with this section.

(3) AUTHORITY TO SUSPEND OR PROHIBIT PARTICIPATION.

(A) IN GENERAL.In order to protect a small business lending
company, a non-Federally regulated lender or the interests of the Administration or the United
States, the Administrator may suspend from office or prohibit from further participation in any
manner in the management or conduct of the affairs of a small business lending company or a
non-Federally regulated lender a management official by written notice to such effect served
upon the management official. Such suspension or prohibition may prohibit the management
official from making, servicing, reviewing, approving, or liquidating any loan under section 7(a)
of this Act.

(B) EFFECTIVENESS.A suspension or prohibition under
subparagraph (A)

(i) shall take effect upon service of notice under paragraph (2);
and

(ii) unless stayed by a court in proceedings authorized by
subparagraph (C), shall remain in effect

(I) pending the completion of the administrative
proceedings pursuant to a notice of intention to remove served under paragraph (2); and

(II) until such time as the Administrator dismisses the
charges specified in the notice, or, if an order of removal or prohibition is issued against the
management official, until the effective date of any such order.

(C) J UDICIAL REVIEW OF SUSPENSION PRIOR TO
HEARING.Not later than 10 days after a management official is suspended or prohibited from
participation under subparagraph (A), the management official may apply to an appropriate
district court for a stay of the suspension or prohibition pending the completion of the
administrative proceedings pursuant to a notice of intent to remove served upon the management
official under paragraph (2).

(4) AUTHORITY TO SUSPEND ON CRIMINAL CHARGES.

(A) IN GENERAL.If a management official is charged in any
information, indictment, or complaint authorized by a United States attorney, with a felony
involving dishonesty or breach of trust, the Administrator may, by written notice served upon the
management official, suspend the management official from office or prohibit the management
official from further participation in any manner in the management or conduct of the affairs of
the small business lending company or non-Federally regulated lender.
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(B) EFFECTIVENESS.A suspension or prohibition under
subparagraph (A) shall remain in effect until the information, indictment, or complaint is finally
disposed of, or until terminated by the Administrator or upon an order of a district court.

(C) AUTHORITY UPON CONVICTION.If a judgment of
conviction with respect to an offense described in subparagraph (A) is entered against a
management official, then at such time as the judgment is not subject to further judicial review
(and for purposes of this subparagraph shall not include any petition for a writ of habeas corpus),
the Administrator may issue and serve upon the management official an order removing the
management official, effective upon service of a copy of the order upon the small business
lending company or non-Federally regulated lender.

(D) AUTHORITY UPON DISMISSAL OR OTHER
DISPOSITION.A finding of not guilty or other disposition of charges described in
subparagraph (A) shall not preclude the Administrator from instituting proceedings under
subsection (e) or (f).

(5) NOTIFICATION TO SMALL BUSINESS LENDING COMPANY OR A
NON-FEDERALLY REGULATED LENDER.Copies of each notice required to be served on
a management official under this section shall also be served upon the small business lending
company or non-Federally regulated lender involved.

(6) FINAL AGENCY ACTION AND J UDICIAL REVIEW.

(A) ISSUANCE OF ORDERS.After a hearing under this subsection,
and not later than 30 days after the Administrator notifies the parties that the case has been
submitted for final decision, the Administrator shall render a decision in the matter (which shall
include findings of fact upon which its decision is predicated), and shall issue and cause to be
served upon each party to the proceeding an order or orders consistent with this section. The
decision of the Administrator shall constitute final agency action for purposes of chapter 7 of
title 5, United States Code.

(B) J UDICIAL REVIEW.An adversely aggrieved party shall have
20 days from the date of issuance of the order to seek judicial review in an appropriate district
court.

(h) APPOINTMENT OF RECEIVER.

(1) In any proceeding under subsection (f)(4) or subsection (g)(6)(C) [sic], the
court may take exclusive jurisdiction of a small business lending company or a non-Federally
regulated lender and appoint a receiver to hold and administer the assets of the company or
lender.

(2) Upon request of the Administrator, the court may appoint the
Administrator as a receiver under paragraph (1).
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(i) POSSESSION OF ASSETS.

(1) If a small business lending company or a non-Federally regulated lender is
not in compliance with capital requirements or is insolvent, the Administrator may take
possession of the portfolio of loans guaranteed by the Administrator and sell such loans to a third
party by means of a receiver appointed under subsection (h).

(2) If a small business lending company or a non-Federally regulated lender is
not in compliance with capital requirements or is insolvent or otherwise operating in an unsafe
and unsound condition, the Administrator may take possession of servicing activities of loans
that are guaranteed by the Administrator and sell such servicing rights to a third party by means
of a receiver appointed under subsection (h).

(j) PENALTIES AND FORFEITURES.

(1) Except as provided in paragraph (2), a small business lending company or
a non-Federally regulated lender which violates any regulation or written directive issued by the
Administrator regarding the filing of any regular or special report shall pay to the United States a
civil penalty of not more than $5,000 for each day of the continuance of the failure to file such
report, unless it is shown that such failure is due to reasonable cause and not due to willful
neglect. The civil penalties under this subsection may be enforced in a civil action brought by
the Administrator. The penalties under this subsection shall not apply to any affiliate of a small
business lending company that procures at least 10 percent of its annual purchasing requirements
from small manufacturers.

(2) The Administrator may by rules and regulations that shall be codified in
the Code of Federal Regulations, after an opportunity for notice and comment, or upon
application of an interested party, at any time previous to such failure, by order, after notice and
opportunity for hearing which shall be conducted pursuant to sections 554, 556, and 557 of title
5, United States Code, exempt in whole or in part, any small business lending company or non-
Federally regulated lender from paragraph (1), upon such terms and conditions and for such
period of time as it deems necessary and appropriate, if the Administrator finds that such action
is not inconsistent with the public interest or the protection of the Administration. The
Administrator may for the purposes of this section make any alternative requirements appropriate
to the situation.

24. (a) The Administrator is authorized to make grants to or to enter into contracts with
any State for the purpose of contracting with small businesses to plant trees on land owned or
controlled by such State or local government. The Administrator shall require as a condition of
any grant (or amendment or modification thereof) under this section that the applicant also
contribute to the project a sum equal to at least 25 per centum of a particular project cost from
sources other than the Federal Government. Such non-Federal money may include inkind
contributions, including the cost or value of providing care and maintenance for a period of three
years after the planting of the trees, but shall not include any value attributable to the land on
which the trees are to be planted, nor may any part of any grant be used to pay for land or land
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charges: Provided, That not less than one-half of the amounts appropriated under this section
shall be allocated to each State, the District of Columbia, and the Commonwealth of Puerto Rico
on the basis of the population in each area as compared to the total population in all areas as
provided by the Census Bureau of the Department of Commerce in the annual population
estimate or the decennial census, whichever is most current. The Administrator may give a
priority in awarding the remaining one-half of appropriated amounts to applicants who agree to
contribute more than the requisite 25 per centum, and shall give priority to a proposal to restore
an area determined to be a major disaster by the President on a date not more than three years
prior to the fiscal year for which the application is made.

(b) In order to accomplish the objectives of this section, the Administrator, in
consultation with appropriate Federal agencies, shall be responsible for formulating a national
small business tree planting program. Based on this program, a State may submit a detailed
proposal for tree planting by contract.

(c) To encourage and develop the capacity of small business concerns, to utilize this
important segment of our economy, and to permit rapid increases in employment opportunities in
local communities, grantees are directed to utilize small business contractors or concerns in
connection with the program established by this section, and shall, to the extent practicable,
divide the project to allow more than one small business concern to perform the work under the
project.

(d) For purposes of this section, agencies of the Federal Government are hereby
authorized to cooperate with all grantees and with State foresters or other appropriate officials by
providing without charge, in furtherance of this program, technical services with respect to the
planting and growing of such trees.

(e) There are authorized to be appropriated to carry out the objectives of this section,
$15,000,000 for fiscal year 1991 and $30,000,000 for each of the fiscal years 1992 through 1994,
and all of such sums may remain available until expended.

(f) Notwithstanding any other law, rule, or regulation, the administration shall
publish in the Federal Register proposed rules and regulations implementing this section within
sixty days after the date of enactment of this section and shall publish final rules and regulations
within one hundred and twenty days of the date of enactment of this section.

(g) As used in this section:

(1) the term local government includes political subdivisions of a State such
as counties, parishes, cities, towns and municipalities;

(2) the term planting includes watering, application of fertilizer and
herbicides, pruning and shaping, and other subsequent care and maintenance for a period of three
years after the trees are planted; and

(3) the term State includes any agency thereof.
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(h) The Administrator shall submit annually to the President and the Congress a
report on activities within the scope of this section.

25. (a) There is hereby established a Central European Small Business Enterprise
Development Commission (hereinafter in this section referred to as the Commission). The
Commission shall be comprised of a representative of each of the following: the Small Business
Administration, the Association of American Universities, and the Association of Small Business
Development Centers.

(b) The Commission shall develop in Czechoslovakia, Poland and Hungary
(hereinafter referred to as designated Central European countries) a self-sustaining system to
provide management and technical assistance to small business owners.

(1) Not later than 90 days after the effective date of this section, the
Commission, in consultation with the Agency for International Development, shall enter a
contract with one or more entities to

(A) determine the needs of small businesses in the designated Central
European countries for management and technical assistance;

(B) evaluate appropriate Small Business Development Center-
programs [sic] which might be replicated in order to meet the needs of each of such countries;
and

(C) identify and assess the capability of educational institutions in each
such country to develop a Small Business Development Center type program.

(2) Not later than 18 months after the effective date of this section, the
Commission shall review the recommendations submitted to it and shall formulate and contract
for the establishment of a three-year management and technical assistance demonstration
program.

(c) In order to be eligible to participate, the educational institution in each designated
Central European country shall

(1) obtain the prior approval of the government to conduct the program;

(2) agree to provide partial financial support for the program, either directly or
indirectly, during the second and third years of the demonstration program; and

(3) agree to obtain private sector involvement in the delivery of assistance
under the program.

(d) The Commission shall meet and organize not later than 30 days after the date of
enactment of this section.
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(e) Members of the Commission shall serve without pay, except they shall be entitled
to reimbursement for travel, subsistence, and other necessary expenses incurred by them in
carrying out their functions in the same manner as persons employed intermittently in the Federal
Government are allowed expenses under section 5703 of title 5, United States Code.

(f) Two Commissioners shall constitute a quorum for the transaction of business.
Meetings shall be at the call of the Chairperson who shall be elected by the Members of the
Commission.

(g) The Commission shall not have any authority to appoint staff, but upon request of
the Chairperson, the head of any Federal department or agency may detail, on a reimbursable
basis, any of the personnel of such department or agency to the Commission to assist in carrying
out the Commission's functions under this section without regard to section 3341 of title 5 of the
United States Code. The Administrator of the General Services Administration shall provide, on
a reimbursable basis, such administrative support services as the Commission may request.

(h) The Commission shall report to Congress not later than December 1, 1991, and
annually thereafter, on the progress in carrying out the provisions of this section.

(i) There are hereby authorized to be appropriated to the Small Business
Administration the sum of $3,000,000 for fiscal year 1991, $5,000,000 for fiscal year 1992,
$2,000,000 for each of fiscal years 1993 and 1994, and $1,000,000 for fiscal year 1995 to carry
out the provisions of this section. Such sums shall be disbursed by the Small Business
Administration as requested by the Commission and may remain available until expended. Any
authority to enter contracts or other spending authority provided for in this section is subject to
amounts provided for in advance in appropriations Acts.

26. (a) There is hereby established in the Small Business Administration an Office of
Rural Affairs (hereafter in this section referred to as the Office).

(b) The Office shall be headed by a director who shall be appointed by the
Administrator not later than 90 days after the date of the enactment of this section.

(c) The Office shall

(1) strive to achieve an equitable distribution of the financial assistance
available from the Administration for small business concerns located in rural areas;

(2) to the extent practicable, compile annual statistics on rural areas, including
statistics concerning the population, poverty, job creation and retention, unemployment, business
failures, and business startups;

(3) provide information to industries, organizations, and State and local
governments concerning the assistance available to rural small business concerns through the
Administration and through other Federal departments and agencies;
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(4) provide information to industries, organizations, educational institutions,
and State and local governments concerning programs administered by private organizations,
educational institutions, and Federal, State, and local governments which improve the economic
opportunities of rural citizens; and

(5) work with the United States Tourism and Travel Administration to assist
small businesses in rural areas with tourism promotion and development.

27. PAUL D. COVERDELL DRUG-FREE WORKPLACE PROGRAM.

(a) DEFINITIONS.In this section:

(1) DRUG-FREE WORKPLACE PROGRAM.The term drug-free
workplace program means a program that includes

(A) a written policy, including a clear statement of expectations for
workplace behavior, prohibitions against reporting to work or working under the influence of
illegal drugs or alcohol, prohibitions against the use or possession of illegal drugs in the
workplace, and the consequences of violating those expectations and prohibitions;

(B) drug and alcohol abuse prevention training for a total of not less
than 2 hours for each employee, and additional voluntary drug and alcohol abuse prevention
training for employees who are parents;

(C) employee illegal drug testing, with analysis conducted by a drug
testing laboratory certified by the Substance Abuse and Mental Health Services Administration,
or approved by the College of American Pathologists for forensic drug testing, and a review of
each positive test result by a medical review officer;

(D) employee access to an employee assistance program, including
confidential assessment, referral, and short-term problem resolution; and

(E) continuing alcohol and drug abuse prevention education.

(2) ELIGIBLE INTERMEDIARY.The term eligible intermediary means
an organization

(A) that has not less than 2 years of experience in carrying out drug-
free workplace programs;

(B) that has a drug-free workplace policy in effect;

(C) that is located in a State, the District of Columbia, or a territory of
the United States; and

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(D) (i) the purpose of which is

(I) to develop comprehensive drug-free workplace
programs or to supply drug-free workplace services; or

(II) to provide other forms of assistance and services to
small business concerns; or

(ii) that is eligible to receive a grant under chapter 2 of the
National Narcotics Leadership Act of 1988 (21 U.S.C. 1521 et seq.).

(3) EMPLOYEE.The term employee includes any

(A) applicant for employment;

(B) employee;

(C) supervisor;

(D) manager;

(E) officer of a small business concern who is active in management of
the concern; and

(F) owner of a small business concern who is active in management of
the concern.

(4) MEDICAL REVIEW OFFICER.The term medical review officer

(A) means a licensed physician with knowledge of substance abuse
disorders; and

(B) does not include any

(i) employee of the small business concern; or

(ii) employee or agent of, or any person having a financial
interest in, the laboratory for which the illegal drug test results are being reviewed.

(b) ESTABLISHMENT.

(1) IN GENERAL.There is established a drug-free workplace
demonstration program, under which the Administrator may make grants to, or enter into
cooperative agreements or contracts with, eligible intermediaries for the purpose of providing
financial and technical assistance to small business concerns seeking to establish a drug-free
workplace program.
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(2) ADDITIONAL GRANTS FOR TECHNICAL ASSISTANCE.In
addition to grants under paragraph (1), the Administrator may make grants to, or enter into
cooperative agreements or contracts with, any grantee for the purpose of providing, in
cooperation with one or more small business development centers, technical assistance to small
business concerns seeking to establish a drug-free workplace program.

(3) 2-YEAR GRANTS.Each grant made under this subsection shall be for a
period of 2 years, subject to an annual performance review by the Administrator.

(c) PROMOTION OF EFFECTIVE PRACTICES OF ELIGIBLE
INTERMEDIARIES.

(1) TECHNICAL ASSISTANCE AND INFORMATION.The
Administrator, after consultation with the Director of the Center for Substance Abuse and
Prevention, shall provide technical assistance and information to each eligible intermediary
under subsection (b) regarding the most effective practices in establishing and carrying out drug-
free workplace programs.

(2) EVALUATION OF PROGRAM.

(A) DATA COLLECTION AND ANALYSIS.Each eligible
intermediary receiving a grant under this section shall establish a system to collect and analyze
information regarding the effectiveness of drug-free workplace programs established with
assistance provided under this section through the intermediary, including information regarding
any increase or decrease among employees in drug use, awareness of the adverse consequences
of drug use, and absenteeism, injury, and disciplinary problems related to drug use. Such system
shall conform to such requirements as the Administrator, after consultation with the Director of
the Center for Substance Abuse and Prevention, may prescribe. Not more than 5 percent of the
amount of each grant made under subsection (b) shall be used by the eligible intermediary to
carry out this paragraph.

(B) METHOD OF EVALUATION.The Administrator, after
consultation with the Director of the Center for Substance Abuse and Prevention, shall provide
technical assistance and guidance to each eligible intermediary receiving a grant under
subsection (b) regarding the collection and analysis of information to evaluate the effectiveness
of drug-free workplace programs established with assistance provided under this section,
including the information referred to in paragraph (1). Such assistance shall include the
identification of additional information suitable for measuring the benefits of drug-free
workplace programs to the small business concern and to the concerns employees and the
identification of methods suitable for analyzing such information.

(d) EVALUATION AND COORDINATION. Not later than 18 months after the date
of enactment of the Drug-Free Workplace Act of 1998, the Administrator, in coordination with
the Secretary of Labor, the Secretary of Health and Human Services, and the Director of
National Drug Control Policy, shall
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(1) evaluate the drug-free workplace programs established with assistance
made available under this section; and

(2) submit to Congress a report describing the results of the evaluation under
paragraph (1).

(e) CONTRACT AUTHORITY.In carrying out this section, the Administrator
may

(1) contract with public and private entities to provide assistance related to
carrying out the program under this section; and

(2) compensate those entities for provision of that assistance.

(f) CONSTRUCTION.Nothing in this section may be construed to require an
employer who attends a program offered by an intermediary to contract for any service offered
by the intermediary.

(g) AUTHORIZATION.

(1) IN GENERAL.There is authorized to be appropriated to carry out this
section, (other than subsection (b)(2)), $5,000,000 for each of fiscal years 2005 and 2006.
Amounts made available under this paragraph shall remain available until expended.

(2) SMALL BUSINESS DEVELOPMENT CENTERS.Of the total amount
made available under paragraph (1) for each of fiscal years 2005 and 2006, not more than the
greater of 10 percent or $500,000 may be used to carry out section 21(c)(3)(T).

(3) ADDITIONAL AUTHORIZATION FOR TECHNICAL ASSISTANCE
GRANTS.There are authorized to be appropriated to carry out subsection (b)(2), $1,500,000
for each of fiscal years 2005 and 2006. Amounts made available under this paragraph shall
remain available until expended.

(4) LIMITATION ON ADMINISTRATIVE COSTS.Not more than 5
percent of the total amount made available under this subsection for any fiscal year shall be used
for administrative costs (determined without regard to the administrative costs of eligible
intermediaries).

28. PILOT TECHNOLOGY ACCESS PROGRAM.

(a) The Administration, in consultation with the National Institute of Standards and
Technology and the National Technical Information Service, shall establish a Pilot Technology
Access Program, for making awards under this section to Small Business Development Centers
(hereinafter in this section referred to as Centers).

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(b) The Administrator of the Small Business Administration shall establish
competitive, merit-based criteria for the selection of Centers to receive awards on the basis of

(1) the ability of the applicant to carry out the purposes described in
subsection (d) in a manner relevant to the needs of industries in the area served by the Center;

(2) the ability of the applicant to integrate the implementation of this program
with existing Federal and State technical and business assistance resources; and

(3) the ability of the applicant to continue providing technology access after
the termination of this pilot program.

(c) To be eligible to receive an award under this section, an applicant shall provide a
matching contribution at least equal to that received under such award, not more than 50 percent
of which may be waived overhead or in-kind contributions.

(d) Awards made under this section shall be for the purpose of increasing access by
small businesses to on-line data base services that provide technical and business information,
and access to technical experts, in a wide range of technologies, through such activities as

(1) defraying the cost of access by small businesses to the data base services;

(2) training small businesses in the use of the data base services; and

(3) establishing a public point of access to the data base services.

Activities described in paragraphs (1) through (3) may be carried out through contract with a
private entity.

(e) Awards previously made under section 21A of this Act may be renewed under
this section.

(f) Two years after the date on which the first award was issued under section 21A of
this Act, the Government Accountability Office shall submit to the Committee on Small
Business and the Committee on Science, Space, and Technology of the House of Representatives
and to the Committee on Small Business and the Committee on Commerce, Science, and
Transportation of the Senate, an interim report on the implementation of the program under such
section and this section, including the judgments of the participating Centers as to its effect on
small business productivity and innovation.

(g) Three years after such date, the Government Accountability Office shall submit to
the Committee on Small Business and the Committee on Science, Space, and Technology of the
House of Representatives and to the Committee on Small Business and the Committee on
Commerce, Science and Transportation of the Senate, a final report evaluating the effectiveness
of the Program under section 21A and this section in improving small business productivity and
innovation.
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(h) There are authorized to be appropriated to the Small Business Administration $5
million for each of fiscal years 1992 through 1995 to carry out this section, and such amounts
may remain available until expended.

(i) Centers are encouraged to seek funding from Federal and non-Federal sources
other than those provided for in this section to assist small businesses in the identification of
appropriate technologies to fill their needs, the transfer of technologies from Federal laboratories,
public and private universities, and other public and private institutions, the analysis of
commercial opportunities represented by such technologies, and such other functions as the
development business Planning, market research, and financial packaging required for
commercialization. Insofar as such Centers pursue these activities, Federal agencies are
encouraged to employ these Centers to interface with small businesses for such purposes as
facilitating small business participation in Federal procurement and fostering commercialization
of Federally-funded research and development.

29. WOMENS BUSINESS CENTER PROGRAM.

(a) DEFINITIONS.In this section

(1) the term Assistant Administrator means the Assistant Administrator of
the Office of Womens Business Ownership established under subsection (g);

(2) the term private nonprofit organization means an entity that is described
in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code;

(3) the term small business concern owned and controlled by women, either
startup or existing, includes any small business concern

(A) that is not less than 51 percent owned by 1 or more women; and

controlled by 1 or more women; and

(4) the term womens business center site means the location of

(A) a womens business center; or

(B) 1 or more womens business centers, established in conjunction
with another womens business center in another location within a State or region

(i) that reach a distinct population that would otherwise not be
served;

(ii) whose services are targeted to women; and
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(iii) whose scope, function, and activities are similar to those of
the primary womens business center or centers in conjunction with which it was established.

(b) AUTHORITY.The Administration may provide financial assistance to private
nonprofit organizations to conduct 5-year projects for the benefit of small business concerns
owned and controlled by women. The projects shall provide

(1) financial assistance, including training and counseling in how to apply for
and secure business credit and investment capital, preparing and presenting financial statements,
and managing cash flow and other financial operations of a business concern;

(2) management assistance, including training and counseling in how to plan,
organize, staff, direct, and control each major activity and function of a small business concern;
and

(3) marketing assistance, including training and counseling in identifying and
segmenting domestic and international market opportunities, preparing and executing marketing
Plans, developing pricing strategies, locating contract opportunities, negotiating contracts, and
utilizing varying public relations and advertising techniques.

(c) CONDITIONS OF PARTICIPATION

(1) NON-FEDERAL CONTRIBUTIONS.As a condition of receiving
financial assistance authorized by this section, the recipient organization shall agree to obtain,
after its application has been approved and notice of award has been issue, cash contributions
from non-Federal sources as follows:

(A) in the first and second years, 1 non-Federal dollar for each 2
Federal dollars; and

(B) in the third, fourth, and fifth years, 1 non-Federal dollar for each
Federal dollar.

(2) FORM OF NON-FEDERAL CONTRIBUTIONS.Not more than one-
half of the non-Federal sector matching assistance may be in the form of in-kind contributions
that are budget line items only, including office equipment and office space.

(3) FORM OF FEDERAL CONTRIBUTIONS.The financial assistance
authorized pursuant to this section may be made by grant, contract, or cooperative agreement and
may contain such provision, as necessary, to provide for payments in lump sum or installments,
and in advance or by way of reimbursement. The Administration may disburse up to 25 percent
of each years Federal share awarded to a recipient organization after notice of the award has
been issued and before the non-Federal sector matching funds are obtained.

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(4) FAILURE TO OBTAIN NON-FEDERAL FUNDING.If any recipient
of assistance fails to obtain the required non-Federal contribution during any project, it shall not
be eligible thereafter for advance disbursements pursuant to paragraph (3) during the remainder
of that project, or for any other project for which it is or may be funded by the Administration,
and prior to approving assistance to such organization for any other projects, the Administration
shall specifically determine whether the Administration believes that the recipient will be able to
obtain the requisite non-Federal funding and enter a written finding setting forth the reasons for
making such determination.

(d) CONTRACT AUTHORITY.A womens business center may enter into a
contract with a Federal department or agency to provide specific assistance to women and other
underserved small business concerns. Performance of such contract should not hinder the
womens business centers in carrying out the terms of the grant received by the womens
business centers from the Administration.

(e) SUBMISSION OF 5-YEAR PLAN.Each applicant organization initially shall
submit a 5-year Plan to the Administration on proposed fundraising and training activities, and a
recipient organization may receive financial assistance under this program for a maximum of 5
years per womens business center site.

(f) CRITERIA.The Administration shall evaluate and rank applicants in
accordance with predetermined selection criteria that shall be stated in terms of relative
importance. Such criteria and their relative importance shall be made publicly available and
stated in each solicitation for applications made by the Administration. The criteria shall
include

(1) the experience of the applicant in conducting programs or ongoing efforts
designed to impart or upgrade the business skills of women business owners or potential owners;

(2) the present ability of the applicant to commence a project within a
minimum amount of time;

(3) the ability of the applicant to provide training and services to a
representative number of women who are both socially and economically disadvantaged; and

(4) the location for the women's business center site proposed by the
applicant.

(g) OFFICE OF WOMENS BUSINESS OWNERSHIP

(1) ESTABLISHMENT.There is established within the Administration an
Office of Womens Business Ownership, which shall be responsible for the administration of the
Administrations programs for the development of womens business enterprises (as defined in
section 408 of the Womens Business Ownership Act of 1988 (15 U.S.C. 631 note)). The Office
of Womens Business Ownership shall be administered by an Assistant Administrator, who shall
be appointed by the Administrator.
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(2) ASSISTANT ADMINISTRATOR OF THE OFFICE OF WOMENS
BUSINESS OWNERSHIP

(A) QUALIFICATIONS.The position of Assistant Administrator
shall be a Senior Executive Service position under section 3132(a)(2) of title 5, United States
Code. The Assistant Administrator shall serve as a noncareer appointee (as defined in section
3132(a)(7) of that title).

(B) RESPONSIBILITIES AND DUTIES

(i) RESPONSIBILITIES.The responsibilities of the
Assistant Administrator shall be to administer the programs and services of the Office of
Womens Business Ownership established to assist women entrepreneurs in the areas of

(I) starting and operating a small business;

(II) development of management and technical skills;

(III) seeking Federal procurement opportunities; and

(IV) increasing the opportunity for access to capital.

(ii) DUTIES.The Assistant Administrator shall

(I) administer and manage the Womens Business
Center program;

(II) recommend the annual administrative and program
budgets for the Office of Womens Business Ownership (including the budget for the Womens
Business Center program);

(III) establish appropriate funding levels therefore;

(IV) review the annual budgets submitted by each
applicant for the Women's Business Center program;

(V) select applicants to participate in the program under
this section

(VI) implement this section;

(VII) maintain a clearinghouse to provide for the
dissemination and exchange of information between women's business centers;

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(VIII) serve as the vice chairperson of the Interagency
Committee on Womens Business Enterprise;

(IX) serve as liaison for the National Womens Business
Council; and

(X) advise the Administrator on appointments to the
Womens Business Council.

(C) CONSULTATION REQUIREMENTS - In carrying out the
responsibilities and duties described in this paragraph, the Assistant Administrator shall confer
with and seek the advice of the Administration officials in areas served by the womens business
centers.

(h) PROGRAM EXAMINATION.

(1) IN GENERAL.The Administration shall

(A) develop and implement an annual programmatic and financial
examination of each womens business center established pursuant to this section, pursuant to
which each such center shall provide to the Administration

(i) an itemized cost breakdown of actual expenditures for costs
incurred during the preceding year; and

(ii) documentation regarding the amount of matching
assistance from non-Federal sources obtained and expended by the center during the preceding
year in order to meet the requirements of subsection (c) and, with respect to any in-kind
contributions described in subsection (c)(2) that were used to satisfy the requirements of
subsection (c), verification of the existence and valuation of those contributions; and

(B) analyze the results of each such examination and, based on that
analysis, make a determination regarding the programmatic and financial viability of each
womens business center.

(2) CONDITIONS FOR CONTINUED FUNDING.In determining whether
to award a contract (as a sustainability grant) under subsection (l) or to renew a contract (either
as a grant or cooperative agreement) under this section with a womens business center, the
Administration

(A) shall consider the results of the most recent examination of the
center under paragraph (1); and

(B) may withhold such award or renewal, if the Administration
determines that

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(i) the center has failed to provide any information required to
be provided under clause (i) or (ii) of paragraph (1)(A), or the information provided by the center
is inadequate; or

(ii) the center has failed to provide any information required to
be provided by the center for purposes of the report of the Administration under subsection (j), or
the information provided by the center is inadequate.

(i) CONTRACT AUTHORITY.The authority of the Administrator to enter into
contracts shall be in effect for each fiscal year only to the extent and in the amounts as are
provided in advance in appropriations Acts. After the Administrator has entered into a contract,
either as a grant or a cooperative agreement, with any applicant under this section, it shall not
suspend, terminate, or fail to renew or extend any such contract unless the Administrator
provides the applicant with written notification setting forth the reasons therefore and affords the
applicant an opportunity for a hearing, appeal, or other administrative proceeding under chapter
5 of title 5, United States Code.

(j) MANAGEMENT REPORT.

(1) IN GENERAL.The Administration shall prepare and submit to the
Committees on Small Business of the House of Representatives and the Senate a report on the
effectiveness of all projects conducted under this section.

(2) CONTENTS.Each report submitted under paragraph (1) shall include
information concerning, with respect to each womens business center established pursuant to
this section

(A) the number of individuals receiving assistance;

(B) the number of startup business concerns formed;

(C) the gross receipts of assisted concerns;

(D) the employment increases or decreases of assisted concerns;

(E) to the maximum extent practicable, increases or decreases in
profits of assisted concerns; and

(F) the most recent analysis, as required under subsection (h)(1)(B),
and the subsequent determination made by the Administration under that subsection.

(k) AUTHORIZATION OF APPROPRIATIONS

(1) IN GENERAL.There is authorized to be appropriated, to remain
available until the expiration of the pilot program under subsection (l)

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(A) $12,000,000 for fiscal year 2000;

(B) $12,800,000 for fiscal year 2001;

(C) $13,700,000 for fiscal year 2002; and

(D) $14,500,000 for fiscal year 2003.

(2) USE OF AMOUNTS.

(A) IN GENERAL.Except as provided in subparagraph (B),
amounts made available under this subsection for fiscal year 1999, and each fiscal year
thereafter, may only be used for grant awards and may not be used for costs incurred by the
Administration in connection with the management and administration of the program under this
section.

(B) EXCEPTIONS.Of the amount made available under this
subsection for a fiscal year, the following amounts shall be available for selection panel costs,
post-award conference costs, and costs related to monitoring and oversight:

(i) For fiscal year 2000, 2 percent.

(ii) For fiscal year 2001, 1.9 percent.

(iii) For fiscal year 2002, 1.9 percent.

(iv) For fiscal year 2003, 1.6 percent.

(3) EXPEDITED ACQUISITION.Notwithstanding any other provision of
law, the Administrator, acting through the Assistant Administrator, may use such expedited
acquisition methods as the Administrator determines to be appropriate to carry out this section,
except that the Administrator shall ensure that all small business sources are provided a
reasonable opportunity to submit proposals.

(4) RESERVATION OF FUNDS FOR SUSTAINABILITY PILOT
PROGRAM.

(A) IN GENERAL.Subject to subparagraph (B), of the total amount
made available under this subsection for a fiscal year, the following amounts shall be reserved
for sustainability grants under subsection (l):

(i) For fiscal year 2000, 17 percent.

(ii) For fiscal year 2001, 18.8 percent.

(iii) For fiscal year 2002, 30.2 percent.
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(iv) For fiscal year 2003, 30.2 percent.

(B) USE OF UNAWARDED FUNDS FOR SUSTAINABILITY
PILOT PROGRAM GRANTS.If the amount reserved under subparagraph (A) for any fiscal
year is not fully awarded to private nonprofit organizations described in subsection (l)(1)(B), the
Administration is authorized to use the unawarded amount to fund additional womens business
center sites or to increase funding of existing womens business center sites under subsection (b).

(l) SUSTAINABILITY PILOT PROGRAM.

(1) IN GENERAL.There is established a 4-year pilot program under which
the Administration is authorized to award grants (referred to in this section as sustainability
grants) on a competitive basis for an additional 5-year project under this section to any private
nonprofit organization (or a division thereof)

(A) that has received financial assistance under this section pursuant to
a grant, contract, or cooperative agreement; and

(B) that

(i) is in the final year of a 5-year project; or

(ii) has completed a project financed under this section (or any
predecessor to this section) and continues to provide assistance to women entrepreneurs.

(2) CONDITIONS FOR PARTICIPATION.In order to receive a
sustainability grant, an organization described in paragraph (1) shall submit to the
Administration an application, which shall include

(A) a certification that the applicant

(i) is a private nonprofit organization;

(ii) employs a full-time executive director or program manager
to manage the center; and

(iii) as a condition of receiving a sustainability grant, agrees

(I) to a site visit as part of the final selection process
and to an annual programmatic and financial examination; and

(II) to the maximum extent practicable, to remedy any
problems identified pursuant to that site visit or examination;

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(B) information demonstrating that the applicant has the ability and
resources to meet the needs of the market to be served by the womens business center site for
which a sustainability grant is sought, including the ability to fundraise;

(C) information relating to assistance provided by the womens business
center site for which a sustainability grant is sought in the area in which the site is located,
including

(i) the number of individuals assisted;

(ii) the number of hours of counseling, training, and workshops
provided; and

(iii) the number of startup business concerns formed;

(D) information demonstrating the effective experience of the applicant
in

(i) conducting financial, management, and marketing
assistance programs, as described in paragraphs (1), (2), and (3) of subsection (b), designed to
impart or upgrade the business skills of women business owners or potential owners;

(ii) providing training and services to a representative number
of women who are both socially and economically disadvantaged;

(iii) using resource partners of the Administration and other
entities, such as universities;

(iv) complying with the cooperative agreement of the applicant;
and

(v) the prudent management of finances and staffing, including
the manner in which the performance of the applicant compared to the business Plan of the
applicant and the manner in which grant funds awarded under subsection (b) were used by the
applicant; and

(E) a 5-year Plan that projects the ability of the womens business
center site for which a sustainability grant is sought

(i) to serve women business owners or potential owners in the
future by improving fundraising and training activities; and

(ii) to provide training and services to a representative number
of women who are both socially and economically disadvantaged.

(3) REVIEW OF APPLICATIONS.
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(A) IN GENERAL.The Administration shall

(i) review each application submitted under paragraph (2)
based on the information provided in subparagraphs (D) and (E) of that paragraph, and the
criteria set forth in subsection (f);

(ii) as part of the final selection process, conduct a site visit at
each womens business center for which a sustainability grant is sought; and

(iii) approve or disapprove applications for sustainability grants
simultaneously with applications for grants under subsection (b).

(B) DATA COLLECTION.Consistent with the annual report to
Congress under subsection (j), each womens business center site that is awarded a sustainability
grant shall, to the maximum extent practicable, collect information relating to

(i) the number of individuals assisted;

(ii) the number of hours of counseling and training provided
and workshops conducted;

(iii) the number of startup business concerns formed;

(iv) any available gross receipts of assisted concerns; and

(v) the number of jobs created, maintained, or lost at assisted
concerns.

(C) RECORD RETENTION.The Administration shall maintain a
copy of each application submitted under this subsection for not less than 10 years.

(4) NON-FEDERAL CONTRIBUTION.

(A) IN GENERAL.Notwithstanding any other provision of this
section, as a condition of receiving a sustainability grant, an organization described in paragraph
(1) shall agree to obtain, after its application has been approved under paragraph (3) and notice
of award has been issued, cash and in-kind contributions from non-Federal sources for each year
of additional program participation in an amount equal to 1 non-Federal dollar for each Federal
dollar.

(B) FORM OF NON-FEDERAL CONTRIBUTIONS.Not more than
50 percent of the non-Federal assistance obtained for purposes of subparagraph (A) may be in
the form of in-kind contributions that are budget line items only, including office equipment and
office space.

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(5) TIMING OF REQUESTS FOR PROPOSALS..In carrying out this
subsection, the Administration shall issue requests for proposals for womens business centers
applying for the pilot program under this subsection simultaneously with requests for proposals
for grants under subsection (b).

(m) CONTINUED FUNDING FOR CENTERS.

(1) IN GENERAL.A nonprofit organization described in paragraph (2)
shall be eligible to receive, subject to paragraph (3), a 3-year grant under this subsection.

(2) APPLICABILITY.A nonprofit organization described in this paragraph
is a non profit organization that has received funding under subsection (b) or (l).

(3) APPLICATION AND APPROVAL CRITERIA.

(A) CRITERIA.Subject to subparagraph (B), the Administrator shall
develop and publish criteria for the consideration and approval of applications by nonprofit
organizations under this subsection.

(B) CONTENTS.Except as otherwise provided in this subsection,
the conditions for participation in the grant program under this subsection shall be the same as
the conditions for participation in the program under subsection (l), as in effect on the date of
enactment of this Act.

(C) NOTIFICATION.Not later than 60 days after the date of the
deadline to submit applications for each fiscal year, the Administrator shall approve or deny any
application under this subsection and notify the applicant for each application.

(4) AWARD OF GRANTS.

(A) IN GENERAL.Subject to the availability of appropriations, the
Administrator shall make a grant for the Federal share of the cost of activities described in the
application to each applicant approved under this subsection.

(B) AMOUNT.A grant under this subsection shall be for not more
than $150,000, for each year of that grant.

(C) FEDERAL SHARE.The Federal share under this subsection
shall not be more than 50 percent.

(D) PRIORITY.In allocating funds made available for grants under
this section, the Administrator shall give applications under this subsection or subsection (l)
priority over first-time applications under subsection (b).

(5) RENEWAL.

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(A) IN GENERAL.The Administrator may renew a grant under this
subsection for additional 3-year periods, if the nonprofit organization submits an application for
such renewal at such time, in such manner, and accompanied by such information as the
Administrator may establish.

(B) UNLIMITED RENEWALS.There shall be no limitation on the
number of times a grant may be renewed under subparagraph (A).

(n) PRIVACY REQUIREMENTS.

(1) IN GENERAL.A womens business center may not disclose the name,
address, or telephone number of any individual or small business concern receiving assistance
under this section without the consent of such individual or small business concern, unless

(A) the Administrator is ordered to make such a disclosure by a court
in any civil or criminal enforcement action initiated by a Federal or State agency; or

(B) the Administrator considers such a disclosure to be necessary for
the purpose of conducting a financial audit of a womens business center, but a disclosure under
this subparagraph shall be limited to the information necessary for such audit.

(2) ADMINISTRATION USE OF INFORMATION.This subsection shall
not

(A) restrict Administration access to program activity data; or

(B) prevent the Administration from using client information (other
than the information described in subparagraph (A)) to conduct client surveys.

(3) REGULATIONS.The Administrator shall issue regulations to establish
standards for requiring disclosures during a financial audit under paragraph (1)(B).

30. OVERSIGHT OF REGULATORY ENFORCEMENT.

(a) DEFINITIONS.For purposes of this section, the term

(1) Board means a Regional Small Business Regulatory Fairness Board
established under subsection (c); and

(2) Ombudsman means the Small Business and Agriculture Regulatory
Enforcement Ombudsman designated under subsection (b).

(b) SBA ENFORCEMENT OMBUDSMAN.

(1) Not later than 180 days after the date of enactment of this section, the
Administrator shall designate a Small Business and Agriculture Regulatory Enforcement
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Ombudsman, who shall report directly to the Administrator, utilizing personnel of the Small
Business Administration to the extent practicable. Other agencies shall assist the Ombudsman
and take actions as necessary to ensure compliance with the requirements of this section.
Nothing in this section is intended to replace or diminish the activities of any Ombudsman or
similar office in any other agency.

(2) The Ombudsman shall

(A) work with each agency with regulatory authority over small
businesses to ensure that small business concerns that receive or are subject to an audit, on-site
inspection, compliance assistance effort, or other enforcement related communication or contact
by agency personnel are provided with a means to comment on the enforcement activity
conducted by such personnel;

(B) establish means to receive comments from small business concerns
regarding actions by agency employees conducting compliance or enforcement activities with
respect to the small business concern, means to refer comments to the Inspector General of the
affected agency in the appropriate circumstances, and otherwise seek to maintain the identity of
the person and small business concern making such comments on a confidential basis to the
same extent as employee identities are protected under section 7 of the Inspector General Act of
1978 (5 U.S.C. App.);

(C) based on substantiated comments received from small business
concerns and the Boards, annually report to Congress and affected agencies evaluating the
enforcement activities of agency personnel including a rating of the responsiveness to small
business of the various regional and program offices of each agency;

(D) coordinate and report annually on the activities, findings and
recommendations of the Boards to the Administrator and to the heads of affected agencies; and

(E) provide the affected agency with an opportunity to comment on
draft reports prepared under subparagraph (C), and include a section of the final report in which
the affected agency may make such comments as are not addressed by the Ombudsman in
revisions to the draft.

(c) REGIONAL SMALL BUSINESS REGULATORY FAIRNESS BOARDS.

(1) Not later than 180 days after the date of enactment of this section, the
Administrator shall establish a Small Business Regulatory Fairness Board in each regional office
of the Small Business Administration.

(2) Each Board established under paragraph (1) shall

(A) meet at least annually to advise the Ombudsman on matters of
concern to small businesses relating to the enforcement activities of agencies;

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(B) report to the Ombudsman on substantiated instances of excessive
enforcement actions of agencies against small business concerns including any findings or
recommendations of the Board as to agency enforcement policy or practice; and

(C) prior to publication, provide comment on the annual report of the
Ombudsman prepared under subsection (b).

(3) Each Board shall consist of five members, who are owners, operators, or
officers of small business concerns, appointed by the Administrator, after receiving the
recommendations of the chair and ranking minority member of the Committees on Small
Business of the House of Representatives and the Senate. Not more than three of the Board
members shall be of the same political party. No member shall be an officer or employee of the
Federal Government, in either the executive branch or the Congress.

(4) Members of the Board shall serve at the Pleasure of the Administrator for
terms of three years or less.

(5) The Administrator shall select a chair from among the members of the
Board who shall serve at the Pleasure of the Administrator for not more than 1 year as chair.

(6) A majority of the members of the Board shall constitute a quorum for the
conduct of business, but a lesser number may hold hearings.

(d) POWERS OF THE BOARDS.

(1) The Board may hold such hearings and collect such information as
appropriate for carrying out this section.

(2) The Board may use the United States mails in the same manner and under
the same conditions as other departments and agencies of the Federal Government.

(3) The Board may accept donations of services necessary to conduct its
business, provided that the donations and their sources are disclosed by the Board.

(4) Members of the Board shall serve without compensation, provided that,
members of the Board shall be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, while away from their homes or regular Places of business in the
performance of services for the Board.

31. HUBZONE PROGRAM

(a) IN GENERAL.There is established within the Administration a program to be
carried out by the Administrator to provide for Federal contracting assistance to qualified
HUBZone small business concerns in accordance with this section.

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(b) ELIGIBLE CONTRACTS

(1) DEFINITIONS .In this subsection

(A) the term contracting officer has the meaning given that term in
section 27(f)(5) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(f)(5); and

(B) the term full and open competition has the meaning given that
term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

(2) AUTHORITY OF CONTRACTING OFFICER.Notwithstanding any
other provision of law

(A) a contracting officer may award sole source contracts under this
section to any qualified HUBZone small business concern, if

(i) the qualified HUBZone small business concern is
determined to be a responsible contractor with respect to performance of such contract
opportunity, and the contracting officer does not have a reasonable expectation that 2 or more
qualified HUBZone small business concerns will submit offers for the contracting opportunity;

(ii) the anticipated award price of he contract (including
options) will not exceed

(I) $5,000,000, in the case of a contract opportunity
assigned a standard industrial classification code for manufacturing; or

(II) $3,000,000, in the case of all other contract
opportunities; and

(iii) in the estimation of the contracting officer, the contract
award can be made at a fair and reasonable price;

(B) a contract opportunity shall be awarded pursuant to this section on
the basis of competition restricted to qualified HUBZone small business concerns if the
contracting officer has a reasonable expectation that not less than 2 qualified HUBZone small
business concerns will submit offers and that the award can be made at a fair market price; and

(C) not later than 5 days from the date the Administration is notified of
a procurement officers decision not to award a contract opportunity under this section to a
qualified HUBZone small business concern, the Administrator may notify the contracting officer
of the intent to appeal the contracting officers decision, and within 15 days of such date the
Administrator may file a written request for reconsideration of the contracting officers decision
with the Secretary of the department or agency head.

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(3) PRICE EVALUATION PREFERENCE IN FULL AND OPEN
COMPETITIONS.

(A) IN GENERAL.Subject to subparagraph (B), in any case in
which a contract is to be awarded on the basis of full and open competition, the price offered by
a qualified HUBZone small business concern shall be deemed as being lower than the price
offered by another offeror (other than another small business concern), if the price offered by the
qualified HUBZone small business concern is not more than 10 percent higher than the price
offered by the otherwise lowest, responsive, and responsible offeror.

(B) PROCUREMENT OF COMMODITIES.For purchases by the
Secretary of Agriculture of agricultural commodities, the price evaluation preferences shall be

(i) 10 percent, for the portion of a contract to be awarded that
is not greater than 25 percent of the total volume being procured for each commodity in a single
invitation;

(ii) 5 percent, for the portion of a contract to be awarded that is
greater than 25 percent, but not greater than 40 percent, of the total volume being procured for
each commodity in a single invitation; and

(iii) zero, for the portion of a contract to be awarded that is
greater than 40 percent of the total volume being procured for each commodity in a single
invitation.

(C) PROCUREMENT OF COMMODITIES FOR INTERNATIONAL
FOOD AID EXPORT OPERATIONS.The price evaluation preference for purchases of
agricultural commodities by the Secretary of Agriculture for export operations through
international food aid programs administered by the Farm Service Agency shall be 5 percent on
the first portion of a contract to be awarded that is not greater than 20 percent of the total volume
of each commodity being procured in a single invitation.

(D) TREATMENT OF PREFERENCE.A contract awarded to a
HUBZone small business concern under a preference described in subparagraph (B) shall not be
counted toward the fulfillment of any requirement partially set aside for competition restricted to
small business concerns.

(4) RELATIONSHIP TO OTHER CONTRACTING PREFERENCES.A
procurement may not be made from a source on the basis of a preference provided in paragraph
(2) or (3), if the procurement would otherwise be made from a different source under section
4124 or 4125 of title 18, United States Code, or the J avits-Wagner-ODay Act (41 U.S.C. 46 et
seq.).

(c) ENFORCEMENT; PENALTIES

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(1) VERIFICATION OF ELIGIBILITY.In carrying out this section, the
Administrator shall establish procedures relating to

(A) the filing, investigation, and disposition by the Administration of
any challenge to the eligibility of a small business concern to receive assistance under this
section (including a challenge, filed by an interested party, relating to the veracity of a
under section 3(p)(5); and

(B) verification by the Administrator of the accuracy of any
under section 3(p)(5).

(2) EXAMINATIONS.The procedures established under paragraph (1) may
provide for program examinations (including random program examinations) by the
Administrator of any small business concern making a certification or providing information to
the Administrator under section 3(p)(5).

(3) PROVISION OF DATA.Upon the request of the Administrator, the
Secretary of Labor, the Secretary of Housing and Urban Development, and the Secretary of the
Interior (or the Assistant Secretary for Indian Affairs), shall promptly provide to the
Administrator such information as the Administrator determines to be necessary to carry out this
subsection.

(4) PENALTIES.In addition to the penalties described in section 16(d), any
small business concern that is determined by the Administrator to have misrepresented the status
of that concern as a HUBZone small business concern for purposes of this section, shall be
subject to

(A) section 1001 of title 18, United States Code; and

(B) sections 3729 through 3733 of title 31, United States Code.

(d) AUTHORIZATION OF APPROPRIATIONS.There is authorized to be
appropriated to carry out the program established by this section $10,000,000 for each of fiscal
years 2004 through 2006.

32. VETERANS PROGRAMS.

(a) OFFICE OF VETERANS BUSINESS DEVELOPMENT.There is established
in the Administration an Office of Veterans Business Development, which shall be administered
by the Associate Administrator for Veterans Business Development (in this section referred to as
the Associate Administrator) appointed under section 4(b)(1).

(b) ASSOCIATE ADMINISTRATOR FOR VETERANS BUSINESS
DEVELOPMENT.The Associate Administrator
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(1) shall be an appointee in the Senior Executive Service;

(2) shall be responsible for the formulation, execution, and promotion of
policies and programs of the Administration that provide assistance to small business concerns
owned and controlled by veterans and small business concerns owned and controlled by service-
disabled veterans. The Associate Administrator shall act as an ombudsman for full consideration
of veterans in all programs of the Administration; and

(3) shall report to and be responsible directly to the Administrator.

(c) INTERAGENCY TASK FORCE

(1) ESTABLISHMENT.Not later than 90 days after the date of enactment
of this subsection, the President shall establish an interagency task force to coordinate the efforts
of Federal agencies necessary to improve capital and business development opportunities for,
and ensure achievement of the pre-established Federal contracting goals for, small business
concerns owned and controlled by service-disabled veterans and small business concerns owned
and controlled by veterans (in this section referred to as the task force).

(2) MEMBERSHIP.the members of the task force shall include

(A) the Administrator, who shall serve as chairperson of the task force;
and

(B) a senior level representative from

(i) the Department of Veterans Affairs;

(ii) the Department of Defense;

(iii) the Administration (in addition to the Administrator);

(iv) the Department of Labor;

(v) the Department of the Treasury;

(vi) the General Services Administration;

(vii) the Office of Management and Budget; and

(viii) 4 representatives from a veterans service organization or
military organization or association, selected by the President.

(3) DUTIES.The task force shall

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(A) consult regularly with veterans service organizations and military
organizations in performing the duties of the task force; and

(B) coordinate administrative and regulatory activities and develop
proposals relating to

(i) improving capital access and capacity of small business
concerns owned and controlled by service-disabled veterans and small business concerns owned
and controlled by veterans through loans, surety bonding, and franchising;

(ii) ensuring achievement of the pre-established Federal
contracting goals for small business concerns owned and controlled by service-disabled veterans
and small business concerns owned and controlled by veterans through expanded mentor-protg
assistance and matching such small business concerns with contracting opportunities;

(iii) increasing the integrity of certifications of status as a small
business concern owned and controlled by service-disabled veterans or a small business concern
owned and controlled by veterans;

(iv) reducing paperwork and administrative burdens on veterans
in accessing business development and entrepreneurship opportunities;

(v) increasing and improving training and counseling services
provided to small business concerns owned and controlled by veterans; and

(vi) making other improvements relating to the support for
veterans business development by the Federal Government.

(d) PARTICIPATION IN TAP WORKSHOPS.

(1) IN GENERAL.The Associate Administrator shall increase veteran
outreach by ensuring that Veteran Business Outreach Centers regularly participate, on a
nationwide basis, in the workshops of the Transition Assistance Program of the Department of
Labor.

(2) PRESENTATIONS.In carrying out paragraph (1), a Veteran Business
Outreach Center may provide grants to entities located in Transition Assistance Program
locations to make presentations on the opportunities available from the Administration for
recently separating or separated veterans. Each presentation under this paragraph shall include,
at a minimum, a description of the entrepreneurial and business training resources available from
the Administration.

(3) WRITTEN MATERIALS.The Associate Administrator shall

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(A) create written materials that provide comprehensive information on
self-employment and veterans entrepreneurship, including information on resources available
from the Administration on such topics; and

(B) make the materials created under subparagraph (A) available to the
Secretary of Labor for inclusion in the Transition Assistance Program manual.

(4) REPORTS.The Associate Administrator shall submit to Congress
progress reports on the implementation of this subsection.

(e) WOMEN VETERANS BUSINESS TRAINING.The Associate Administrator
shall

(1) compile information on existing resources available to women veterans for
business training, including resources for

(A) vocational and technical education;

(B) general business skills, such as marketing and accounting; and

(C) business assistance programs targeted to women veterans; and

(2) disseminate the information compiled under paragraph (1) through
Veteran Business Outreach Centers and womens business centers.

(f) AUTHORIZATION OF APPROPRIATIONS.There are authorized to be
appropriated to carry out this section

(1) $1,500,000 for fiscal year 2005; and

(2) $2,000,000 for fiscal year 2006.

33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

(a) ESTABLISHMENT.There is established a federally chartered corporation to be
known as the National Veterans Business Development Corporation (in this section referred to as
the Corporation) which shall be incorporated under the laws of the District of Columbia and
which shall have the powers granted in this section. Notwithstanding any other provision of law,
the Corporation is a private entity and is not an agency, instrumentality, authority, entity, or
establishment of the United States Government.

(b) PURPOSES OF THE CORPORATION.The purposes of the Corporation shall
be

(1) to expand the provision of and improve access to technical assistance
regarding entrepreneurship for the Nations veterans; and
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(2) to assist veterans, including service-disabled veterans, with the formation
and expansion of small business concerns by working with and organizing public and private
resources, including those of the Small Business Administration, the Department of Veterans
Affairs, the Department of Labor, the Department of Commerce, the Department of Defense, the
Service Corps of Retired Executives (described in section 8(b)(1)(B) of this Act), the Small
Business Development Centers (described in section 21 of this Act), and the business
development staffs of each department and agency of the United States.

(c) BOARD OF DIRECTORS.

(1) IN GENERAL.The management of the Corporation shall be vested in a
Board of Directors composed of nine voting members and three nonvoting ex officio members.

(2) APPOINTMENT OF VOTING MEMBERS.The President shall, after
considering recommendations which shall be proposed by the Chairmen and Ranking Members
of the Committees on Small Business and the Committees on Veterans Affairs of the House of
Representatives and the Senate, appoint United States citizens to be voting members of the
Board, not more than five of whom shall be members of the same political party.

(3) EX OFFICIO MEMBERS.The Administrator of the Small Business
Administration, the Secretary of Defense, and the Secretary of Veterans Affairs shall serve as the
nonvoting ex officio members of the Board of Directors.

(4) INITIAL APPOINTMENTS.The initial members of the Board of
Directors shall be appointed non later than 60 days after the date of enactment of this Act.

(5) CHAIRPERSON.The members of the Board of Directors appointed
under paragraph (2) shall elect one such member to serve as chairperson of the Board of
Directors for a term of 2 years.

(6) TERMS OF APPOINTED MEMBERS.

(A) IN GENERAL.Each member of the Board of Directors
appointed under paragraph (2) shall serve a term of 6 years, except as provided in subparagraph
(B).

(B) TERMS OF INITIAL APPOINTEES.As designated by the
President at the time of appointment, of the members first appointed

(i) three shall be for a term of 2 years; and

(ii) three shall be for a term of 4 years.

(C) UNEXPIRED TERMS.Any member of the board of Directors
appointed to fill a vacancy occurring before the expiration of the term for which the members
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predecessor was appointed shall be appointed only for the remainder of the term. A member
may serve after the expiration of that members term until a successor has taken office.

(7) VACANCIES.Any vacancy on the Board of Directors shall be filled in
the manner in which the original appointment was made. In the case of a vacancy in the office of
the Administrator of the Small Business Administration or the Secretary of Veterans Affairs, and
pending the appointment of a successor, an acting appointee for such vacancy may serve as an ex
officio member.

(8) INELIGIBILITY FOR OTHER OFFICES.No voting member of the
Board of directors may be an officer or employee of the United States while serving as a member
of the Board of Directors or during the 2-year period preceding such service.

(9) IMPARTIALITY AND NONDISCRIMINATION.The Board of
Directors shall administer the affairs of the Corporation fairly and impartially and without
discrimination.

(10) OBLIGATIONS AND EXPENSES.The Board of Directors shall
prescribe the manner in which the obligations of the Corporation may be incurred and in which
its expenses shall be allowed and paid.

(11) QUORUM.Five voting members of the Board of Directors shall
constitute a quorum, but a lesser number may hold hearings.

(d) CORPORATE POWERS.On October 1, 1999, the Corporation shall become a
body corporate and as such shall have the authority to do the following:

(1) To adopt and use a corporate seal.

(2) To have succession until dissolved by an Act of Congress.

(3) To make contracts or grants.

(4) To sue and be sued, and to file and defend against lawsuits in State or
Federal court.

(5) To appoint, through the actions of its Board of Directors, officers and
employees of the Corporation, to define their duties and responsibilities, fix their compensations,
and to dismiss at will such officers or employees.

(6) To prescribe, through the actions of its Board of Directors, bylaws not
inconsistent with Federal law and the law of the State of incorporation, regulating the manner in
which its general business may be conducted and the manner in which the privileges granted to it
by law may be exercised.

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(7) To exercise, through the actions of its Board of Directors or duly
authorized officers, all powers specifically granted by the provisions of this section, and such
incidental powers as shall be necessary.

(8) To solicit, receive, and disburse funds from private, Federal, State and
local organizations.

(9) To accept and employ or dispose of in furtherance of the purposes of this
section any money or property, real, personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise.

(10) To accept voluntary and uncompensated services.

(e) CORPORATE FUNDS.

(1) DEPOSIT OF FUNDS.The board of Directors shall deposit all funds of
the Corporation in federally chartered and insured depository institutions until such funds are
disbursed under paragraph (2).

(2) DISBURSEMENT OF FUNDS.Funds of the Corporation may be
disbursed only for purposes that are

(A) approved by the Board of Directors by a recorded vote with a
quorum present; and

(B) in accordance with the purposes of the Corporation as specified in
subsection (b).

(f) NETWORK OF INFORMATION AND ASSISTANCE CENTERS.In carrying
out the purpose described in subsection (b), the Corporation shall establish and maintain a
network of information and assistance centers for use by veterans and the public.

(g) ANNUAL REPORT.On or before October 1 of each year, the Board of
Directors shall transmit a report to the President and the Congress describing the activities and
accomplishments of the Corporation for the preceding year and the Corporations findings
regarding the efforts of Federal, State and private organizations to assist veterans in the
formation and expansion of small business concerns.

(h) USE OF MAILS.The Corporation may use the United States mails in the same
manner and under the same conditions as the departments and agencies of the United States.

(i) PROFESSIONAL CERTIFICATION ADVISORY BOARD.

(1) IN GENERAL.Acting through the Board of Directors, the Corporation
shall establish a Professional Certification Advisory Board to create uniform guidelines and
standards for the professional certification of members of the Armed Services to aid in their
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efficient and orderly transition to civilian occupations and professions and to remove potential
barriers in the areas of licensure and certification.

(2) MEMBERSHIP.The members of the Advisory Board shall serve
without compensation, shall meet in the District of Columbia no less than quarterly, and shall be
appointed by the Board of Directors as follows:

(A) PRIVATE SECTOR MEMBERS.The Corporation shall appoint
not less than seven members for terms of 2 years to represent private sector organizations and
associations, including the American Association of Community Colleges, the Society for
Human Resource Managers, the Coalition for Professional Certification, the Council on
Licensure and Enforcement, and the American Legion.

(B) PUBLIC SECTOR MEMBERS.The Corporation shall invite
public sector members to serve at the discretion of their departments or agencies and shall

(i) encourage the participation of the Under Secretary of
Defense for Personnel and Readiness;

(ii) encourage the participation of two officers from each
branch of the Armed Forces to represent the Training Commands of their branch; and

(iii) seek the participation and guidance of the Assistant
Secretary of Labor for Veterans Employment.

(j) AUTHORIZATION OF APPROPRIATIONS.

(1) IN GENERAL.Subject to paragraph (2), there are authorized to be
appropriated to the Corporation to carry out this section

(A) $4,000,000 for fiscal year 2001;

(B) $4,000,000 for fiscal year 2002;

(C) $2,000,000 for fiscal year 2003; and

(D) $2,000,000 for fiscal year 2004.

(2) MATCHING REQUIREMENT.

(A) FISCAL YEAR 2002.The amount made available to the
Corporation for fiscal year 2002 may not exceed twice the amount that the Corporation
certifies that it will provide for that fiscal year from sources other than the Federal Government.

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(B) SUBSEQUENT FISCAL YEARS.The amount made available
to the Corporation for fiscal year 2003 or 2004 may not exceed the amount that the Corporation
certifies that it will provide for that fiscal year from sources other than the Federal Government.

(3) PRIVATIZATION.The Corporation shall institute and implement a
Plan to raise private funds and become a self-sustaining corporation.

34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

(a) DEFINITIONS.In this section and section 35, the following definitions apply:

(1) APPLICANT.The term applicant means an entity, organization, or
individual that submits a proposal for an award or a cooperative agreement under this section.

(2) BUSINESS ADVICE AND COUNSELING.The term business advice
and counseling means provide advice and assistance on matters described in section 35(c)(2)(B)
to small business concerns to guide them through the SBIR and STTR program process, from
application to award and successful completion of each phase of the program.

(3) FAST PROGRAM.The term FAST program means the Federal and
State Technology Partnership Program established under this section.

(4) MENTOR.The term mentor means an individual described in section
35(c)(2).

(5) MENTORING NETWORK.The term Mentoring Network means an
association, organization, coalition, or other entity (including an individual) that meets the
requirements of section 35(c).

(6) RECIPIENT.The term recipient means a person that receives an
award or becomes party to a cooperative agreement under this section.

(7) SBIR PROGRAM.The term SBIR program has the same meaning as
in section 9(e)(4).

(8) STATE.The term State means each of the several States, the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American
Samoa.

(9) STTR PROGRAM.The term STTR program has the same meaning as
in section 9(e)(6).

(b) ESTABLISHMENT OF PROGRAM.The Administrator shall establish a
program to be known as the Federal and State Technology Partnership Program, the purpose of
which shall be to strengthen the technological competitiveness of small business concerns in the
States.
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(c) GRANTS AND COOPERATIVE AGREEMENTS.

(1) J OINT REVIEW.In carrying out the FAST program under this section,
the Administrator and the SBIR program managers at the National Science Foundation and the
Department of Defense shall jointly review proposals submitted by applicants and may make
awards or enter into cooperative agreements under this section based on the factors for
consideration set forth in paragraph (2), in order to enhance or develop in a State

(A) technology research and development by small business concerns;

(B) technology transfer from university research to technology-based
small business concerns;

(C) technology deployment and diffusion benefiting small business
concerns;

(D) the technological capabilities of small business concerns through
the establishment or operation of consortia comprised of entities, organizations, or individuals,
including

(i) State and local development agencies and entities;

(ii) representatives of technology-based small business
concerns;

(iii) industries and emerging companies;

(iv) universities; and

(v) small business development centers; and

(E) outreach, financial support, and technical assistance to technology-
based small business concerns participating in or interested in participating in an SBIR program,
including initiatives

(i) to make grants or loans to companies to pay a portion or all
of the cost of developing SBIR proposals;

(ii) to establish or operate a Mentoring Network within the
FAST program to provide business advice and counseling that will assist small business
concerns that have been identified by FAST program participants, program managers of
participating SBIR agencies, the Administration, or other entities that are knowledgeable about
the SBIR and STTR programs as good candidates for the SBIR and STTR programs, and that
would benefit from mentoring, in accordance with section 35;

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(iii) to create or participate in a training program for individuals
providing SBIR outreach and assistance at the State and local levels; and

(iv) to encourage the commercialization of technology
developed through SBIR program funding.

(2) SELECTION CONSIDERATIONS.In making awards or entering into
cooperative agreements under this section, the Administrator and the SBIR program managers
referred to in paragraph (1)

(A) may only consider proposals by applicants that intend to use a
portion of the Federal assistance provided under this section to provide outreach, financial
support, or technical assistance to technology-based small business concerns participating in or
interested in participating in the SBIR program; and

(B) shall consider, at a minimum

(i) whether the applicant has demonstrated that the assistance
to be provided would address unmet needs of small business concerns in the community, and
whether it is important to use Federal funding for the proposed activities;

(ii) whether the applicant has demonstrated that a need exists to
increase the number or success of small high-technology businesses in the State, as measured by
the number of first phase and second phase SBIR awards that have historically been received by
small business concerns in the State;

(iii) whether the projected costs of the proposed activities are
reasonable;

(iv) whether the proposal integrates and coordinates the
proposed activities with other State and local programs assisting small high-technology firms in
the State; and

(v) the manner in which the applicant will measure the results
of the activities to be conducted.

(vi) whether the proposal addresses the needs of small business
concerns

(I) owned and controlled by women;

(II) owned and controlled by minorities; and

(III) located in areas that have historically not
participated in the SBIR and STTR programs.

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(3) PROPOSAL LIMIT.Not more than 1 proposal may be submitted for
inclusion in the FAST program under this section to provide services in any one State in any 1
fiscal year.

(4) PROCESS.Proposals and applications for assistance under this section
shall be in such form and subject to such procedures as the Administrator shall establish. The
Administrator shall promulgate regulations establishing standards for the consideration of
proposals under paragraph (2), including standards regarding each of the considerations
identified in paragraph (2)(B).

(d) COOPERATION AND COORDINATION.In carrying out the FAST program
under this section, the Administrator shall cooperate and coordinate with

(1) Federal agencies required by section 9 to have an SBIR program; and

(2) entities, organizations, and individuals actively engaged in enhancing or
developing the technological capabilities of small business concerns, including

(A) State and local development agencies and entities;

(B) State committees established under the Experimental Program to
Stimulate Competitive Research of the National Science Foundation (as established under
section 113 of the National Science Foundation Authorization Act of 1988 (42 U.S.C. 1862g));

(C) State science an technology councils; and

(D) representatives of technology-based small business concerns.

(e) ADMINISTRATIVE REQUIREMENTS.

(1) COMPETITIVE BASIS.Awards and cooperative agreements under this
section shall be made or entered into, as applicable, on a competitive basis.

(2) MATCHING REQUIREMENTS.

(A) IN GENERAL.The non-Federal share of the cost of an activity
(other than a Planning activity) carried out using an award or under a cooperative agreement
under this section shall be

(i) 50 cents for each Federal dollar, in the case of a recipient
that will serve small business concerns located in one of the 18 States receiving the fewest SBIR
first phase awards (as described in section 9(e)(4)(A));

(ii) except as provided in subparagraph (B), 1 dollar for each
Federal dollar, in the case of a recipient that will serve small business concerns located in one of
the 16 States receiving the greatest number of such SBIR first phase awards; and
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(iii) except as provided in subparagraph (B), 75 cents for each
Federal dollar, in the case of a recipient that will serve small business concerns located in a State
that is not described in clause (i) or (ii) that is receiving such SBIR first phase awards.

(B) LOW-INCOME AREAS.The non-Federal share of the cost of
the activity carried out using an award or under a cooperative agreement under this section shall
be 50 cents for each Federal dollar that will be directly allocated by a recipient described in
subparagraph (A) to serve small business concerns located in a qualified census tract, as that
term is defined in section 42(d)(5)(C)(ii) of the Internal Revenue Code of 1986. Federal dollars
not so allocated by that recipient shall be subject to the matching requirements of subparagraph
(A).

(C) TYPES OF FUNDING.The non-Federal share of the cost of an
activity carried out by a recipient shall be comprised of not less than 50 percent cash and not
more than 50 percent of indirect costs and in-kind contributions, except that no such costs or
contributions may be derived from funds from any other Federal program.

(D) RANKINGS.For purposes of subparagraph (A), the Administrator
shall reevaluate the ranking of a State once every 2 fiscal years, beginning with fiscal year 2001,
based on the most recent statistics compiled by the Administrator.

(3) DURATION.Awards may be made or cooperative agreements entered
into under this section for multiple years, not to exceed 5 years in total.

(f) REPORTS.

(1) INITIAL REPORT.Not later than 120 days after the date of enactment
of the Small Business Innovation Research Program Reauthorization Act of 2000, the
Administrator shall prepare and submit to the Committee on Small Business of the Senate and
the Committee on Science and the Committee on Small Business of the House of
Representatives a report, which shall include, with respect to the FAST program, including
Mentoring Networks

(A) a description of the structure and procedures of the program;

(B) a management Plan for the program; and

(C) a description of the merit-based review process to be used in the
program.

(2) ANNUAL REPORTS.The Administrator shall submit an annual report
to the Committee on Small Business of the Senate and the Committee on Science and the
Committee on Small Business of the House of Representatives regarding

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(A) the number and amount of awards provided and cooperative
agreements entered into under the FAST program during the preceding year;

(B) a list of recipients under this section, including their location and
the activities being performed with the awards made or under the cooperative agreements entered
into; and

(C) the Mentoring Networks and the mentoring database, as provided
for under section 35, including

(i) the status of the inclusion of mentoring information in the
database required by section 9(k); and

(ii) the status of the implementation and description of the
usage of the Mentoring Networks.

(g) REVIEWS BY INSPECTOR GENERAL.

(1) IN GENERAL.The Inspector General of the Administration shall
conduct a review of

(A) the extent to which recipients under the FAST program are
measuring the performance of the activities being conducted and the results of such
measurements; and

(B) the overall management and effectiveness of the FAST program.

(2) REPORT.During the first quarter of fiscal year 2004, the Inspector
General of the Administration shall submit a report to the Committee on Small Business of the
Senate and the Committee on Science and the Committee on Small Business of the House of
Representatives on the review conducted under paragraph (1).

(h) PROGRAM LEVELS.

(1) IN GENERAL.There is authorized to be appropriated to carry out the
FAST program, including Mentoring Networks, under this section and section 35, $10,000,000
for each of fiscal years 2001 through 2005.

(2) MENTORING DATABASE.Of the total amount made available under
paragraph (1) for fiscal years 2001 through 2005, a reasonable amount, not to exceed a total of
$500,000, may be used by the Administration to carry out section 35(d).

(i) TERMINATION.The authority to carry out the FAST program under this
section shall terminate on September 30, 2005.

35. MENTORING NETWORKS.
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(a) FINDINGS.Congress finds that

(1) the SBIR and STTR programs create jobs, increase capacity for
technological innovation, and boost international competitiveness;

(2) increasing the quantity of applications from all States to the SBIR and
STTR programs would enhance competition for such awards and the quality of the completed
projects; and

(3) mentoring is a natural complement to the FAST program of reaching out
to new companies regarding the SBIR and STTR programs as an effective and low-cost way to
improve the likelihood that such companies will succeed in such programs in developing and
commercializing their research.

(b) AUTHORIZATION FOR MENTORING NETWORKS.The recipient of an
award or participant in a cooperative agreement under section 34 may use a reasonable amount
of such assistance for the establishment of a Mentoring Network under this section.

(c) CRITERIA FOR MENTORING NETWORKS.A Mentoring Network
established using assistance under section 34 shall

(1) provide business advice and counseling to high technology small business
concerns located in the State or region served by the Mentoring Network and identified under
section 34(c)(1)(E)(ii) as potential candidates for the SBIR or STTR programs;

(2) identify volunteer mentors who

(A) are persons associated with a small business concern that has
successfully completed one or more SBIR or STTR funding agreements; and

(B) have agreed to guide small business concerns through all stages of
the SBIR or STTR program process, including providing assistance relating to

(i) proposal writing;

(ii) marketing;

(iii) Government accounting;

(iv) Government audits;

(v) project facilities and equipment;

(vi) human resources;

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(vii) third phase partners;

(viii) commercialization;

(ix) venture capital networking; and

(x) other matters relevant to the SBIR and STTR programs;

(3) have experience working with small business concerns
participating in the SBIR and STTR programs;

(4) contribute information to the national database referred to in
subsection (d); and

(5) agree to reimburse volunteer mentors for out-of-pocket expenses
related to service as a mentor under this section.

(d) MENTORING DATABASE.The Administrator shall

(1) include in the database required by section 9(k)(1), in cooperation with the
SBIR, STTR, and FAST programs, information on Mentoring Networks and mentors
participating under this section, including a description of their areas of expertise;

(2) work cooperatively with Mentoring Networks to maintain and update the
database;

(3) take such action as may be necessary to aggressively promote Mentoring
Networks under this section; and

(4) fulfill the requirements of this subsection either directly or by contract.

36. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY SERVICE-DISABLED VETERANS.

(a) SOLE SOURCE CONTRACTS.In accordance with this section, a contracting
officer may award a sole source contract to any small business concern owned and controlled by
service-disabled veterans if

(1) such concern is determined to be a responsible contractor with respect to
performance of such contract opportunity and the contracting officer does not have a reasonable
expectation that 2 or more small business concerns owned and controlled by service-disabled
veterans will submit offers for the contracting opportunity;

(2) the anticipated award price of the contract (including options) will not
exceed

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(A) $5,000,000, in the case of a contract opportunity assigned a
standard industrial classification code for manufacturing; or

(B) $3,000,000, in the case of any other contract opportunity; and

(3) in the estimation of the contracting officer, the contract award can be
made at a fair and reasonable price.

(b) RESTRICTED COMPETITION.In accordance with this section, a contracting
officer may award contracts on the basis of competition restricted to small business concerns
owned and controlled by service-disabled veterans if the contracting officer has a reasonable
expectation that not less than 2 small business concerns owned and controlled by service-
disabled veterans will submit offers and that the award can be made at a fair market price.

(c) RELATIONSHIP TO OTHER CONTRACTING PREFERENCES.A
procurement may not be made from a source on the basis of a preference provided under
subsection (a) or (b) if the procurement would otherwise be made from a different source under
section 4124 or 4125 of title 18, United States Code, or the J avits-Wagner-ODay Act (41 U.S.C.
46 et seq.).

(d) ENFORCEMENT; PENALTIES.Rules similar to the rules of paragraphs (5)
and (6) of section 8(m) shall apply for purposes of this section.

(e) CONTRACTING OFFICER.For purposes of this section, the term contracting
officer has the meaning given such term in section 27(f)(5) of the Office of Federal
Procurement Policy Act (41 U.S.C. 423(f)(5)).

37. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

(a) COORDINATION REQUIRED.The Administrator shall ensure that the
disaster assistance programs of the Administration are coordinated, to the maximum extent
practicable, with the disaster assistance programs of the Federal Emergency Management
Agency.

(b) REGULATIONS REQUIRED.The Administrator, in consultation with the
Administrator of the Federal Emergency Management Agency, shall establish regulations to
ensure that each application for disaster assistance is submitted as quickly as practicable to the
Administration or directed to the appropriate agency under the circumstances.

(c) COMPLETION; REVISION.The initial regulations shall be completed not
later than 270 days after the date of the enactment of the Small Business Disaster Response and
Loan Improvements Act of 2008. Thereafter, the regulations shall be revised on an annual basis.

(d) REPORT.The Administrator shall include a report on the regulations whenever
the Administration submits the report required by section 43.

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38. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER
ASSISTANCE.

(a) SYSTEM REQUIRED.The Administrator shall develop, implement, or
maintain a centralized information system to track communications between personnel of the
Administration and applicants for disaster assistance. The system shall ensure that whenever an
applicant for disaster assistance communicates with such personnel on a matter relating to the
application, the following information is recorded:

(1) The method of communication.

(2) The date of communication.

(3) The identity of the personnel.

(4) A summary of the subject matter of the communication.

(b) FOLLOW-UP REQUIRED.The Administrator shall ensure that an applicant for
disaster assistance receives, by telephone, mail, or electronic mail, follow-up communications
from the Administration at all critical stages of the application process, including the following:

(1) When the Administration determines that additional information or
documentation is required to process the application.

(2) When the Administration determines whether to approve or deny the loan.

(3) When the primary contact person managing the loan application has
changed.

39. DISASTER PROCESSING REDUNDANCY.

(a) IN GENERAL.The Administrator shall ensure that the Administration has in
place a facility for disaster loan processing that, whenever the Administrations primary facility
for disaster loan processing becomes unavailable, is able to take over all disaster loan processing
from that primary facility within 2 days.

(b) AUTHORIZATION OF APPROPRIATIONS.There are authorized to be
appropriated such sums as may be necessary to carry out this section.

40. COMPREHENSIVE DISASTER RESPONSE PLAN.

(a) PLAN REQUIRED.The Administrator shall develop, implement, or maintain a
comprehensive written disaster response plan. The plan shall include the following:

(1) For each region of the Administration, a description of the disasters most
likely to occur in that region.
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(2) For each disaster described under paragraph (1)

(A) an assessment of the disaster;

(B) an assessment of the demand for Administration assistance most
likely to occur in response to the disaster;

(C) an assessment of the needs of the Administration, with respect to
such resources as information technology, telecommunications, human resources, and office
space, to meet the demand referred to in subparagraph (B); and

(D) guidelines pursuant to which the Administration will coordinate
with other Federal agencies and with State and local authorities to best respond to the demand
referred to in subparagraph (B) and to best use the resources referred to in that subparagraph.

(b) COMPLETION; REVISION.The first plan required by subsection (a) shall be
completed not later than 180 days after the date of the enactment of this section. Thereafter, the
Administrator shall update the plan on an annual basis and following any major disaster relating
to which the Administrator declares eligibility for additional disaster assistance under section
7(b)(9).

(c) KNOWLEDGE REQUIRED.The Administrator shall carry out subsections (a)
and (b) through an individual with substantial knowledge in the field of disaster readiness and
emergency response.

(d) REPORT.The Administrator shall include a report on the plan whenever the
Administration submits the report required by section 43.

41. PLANS TO SECURE SUFFICIENT OFFICE SPACE.

(a) PLANS REQUIRED.The Administrator shall develop longterm plans to secure
sufficient office space to accommodate an expanded workforce in times of disaster.

(b) REPORT.The Administrator shall include a report on the plans developed
under subsection (a) each time the Administration submits a report required under section 43.

42. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

(a) PROGRAM REQUIRED.The Administrator shall carry out a program, to be
known as the Immediate Disaster Assistance program, under which the Administration
participates on a deferred (guaranteed) basis in 85 percent of the balance of the financing
outstanding at the time of disbursement of the loan if such balance is less than or equal to
$25,000 for businesses affected by a disaster.

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(b) ELIGIBILITY REQUIREMENT.To receive a loan guaranteed under
subsection (a), the applicant shall also apply for, and meet basic eligibility standards for, a loan
under subsection (b) or (c) of section 7.

(c) USE OF PROCEEDS.A person who receives a loan under subsection (b) or (c)
of section 7 shall use the proceeds of that loan to repay all loans guaranteed under subsection (a),
if any, before using the proceeds for any other purpose.

(d) LOAN TERMS.

(1) NO PREPAYMENT PENALTY.There shall be no prepayment penalty
on a loan guaranteed under subsection (a).

(2) REPAYMENT.A person who receives a loan guaranteed under
subsection (a) and who is disapproved for a loan under subsection (b) or (c) of section 7, as the
case may be, shall repay the loan guaranteed under subsection (a) not later than the date
established by the Administrator, which may not be earlier than 10 years after the date on which
the loan guaranteed under subsection is disbursed.

(e) APPROVAL OR DISAPPROVAL.The Administrator shall ensure that each
applicant for a loan under the program receives a decision approving or disapproving of the
application within 36 hours after the Administration receives the application.

43. ANNUAL REPORTS ON DISASTER ASSISTANCE.

Not later than 45 days after the end of a fiscal year, the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the disaster assistance operations of the
Administration for that fiscal year. The report shall

(1) specify the number of Administration personnel involved in such
operations;

(2) describe any material changes to those operations, such as changes to
technologies used or to personnel responsibilities;

(3) describe and assess the effectiveness of the Administration in responding
to disasters during that fiscal year, including a description of the number and amounts of loans
made for damage and for economic injury; and

(4) describe the plans of the Administration for preparing to respond to
disasters during the next fiscal year.

44. All laws and parts of laws inconsistent with this Act are hereby repealed to the extent of
such inconsistency.

TABLE of CONTENTS
PUBLIC LAW 95-907 Page 2
FAR 19.601 Page 3
AFFARS 9952.900 Page 4
FAR 19.502-2 Page 5
FAR 19.502-5 Page 6
FAR 19.502-4 Page 7
15 U.S.C. 644(j) Page 8
FAR Part 19 Page 9
FAR 2.101 Page 10
( Contingency areas SAT increases to $ 1 Mil )
PREFERENCE FOR U.S. COMPANIES
236.274 Restriction on acquisition of steel Page 12
252.236-7010 - Page 13
OVERSEAS MILITARY CONSTRUCTION
PREFERENCE FOR U.S. FIRMS
252.236-7013 Page 14 g
Requirement for competition opportunity and manufacturers.
for American steel producers, fabricators, and manufacturers.
48 CFR 236.274Restriction on acquisition of Page 15
steel for use inmilitary construction projects
Part 236Construction Page 16
PGI 236.273 Construction in foreign countries Page 18
48 CFR 252.236-7001
Contract drawings and specifications Page 20
48 CFR 252.236-7011 Page 21
Overseas architect-engineer services Ove seas a c tect e g ee se v ces
Restriction to United States firms.
1. Public Law 95-507, The Small Business Act
On October 24, 1978, President Carter signed Public Law 95-507 amending the Small Business Act and the Small
Business Investment Act of 1958, making federal procurement contracting more readily accessible to all small
businesses. PL 95-507 stipulates that it is the policy of the Government to provide maximum practicable opportunities in
its acquisitions to small businesses, small disadvantaged businesses and women-owned businesses. This stipulation also
extends to having the maximum practicable opportunity to participate as subcontractors in contracts awarded by any
executive agency.
The head of each agency is responsible for effectively implementing the small business programs within his agency,
including setting and achieving yearly procurement opportunity program (POP) goals for small and small disadvantaged
business contracting.
Office of Federal Procurement Policy (OFPP) Letter No. 79-1, dated March 7, 1979 on the implementation of Section 15(k)
of the SBA Act requires each agency with contracting authority to establish an OSDBU, and appoint a director, who
reports to the agency head (or deputy), and who will have responsibility for carrying out the purposes of the Act.
Specifically the OFPP directs that the position of OSDBU director include the following:
o Responsibility for the implementation and execution of the functions and duties of Section 8 and 15 of the SBA
Act. [Section 15 states that a fair proportion of the total purchases and contracts for property and services for
the Government are to be placed with small business concerns. Because the law requires the Government to
buy at competitive prices, contracts are set-aside only when at least two qualified small businesses are
expected to bid. Section 8(a) of the SBA Act authorizes the SBA to enter into contracts with other Federal
agencies to supply needed goods and services. SBA then subcontracts the actual performance of the work to
small businesses owned and controlled by socially and economically disadvantaged individuals. The objective of
the 8(a) program is to assist eligible small firms to become independently competitive.]
o Assigning a small business technical advisor who shall be a full time employee of the procuring activity and
whose principal duty shall be to assist the SBA procurement representative in his duties related to Section 8
and 15.
o Cooperate and consult on a regular basis with SBA with respect to carrying out the functions and duties of
Sections 8 and 15.
o Developing systematic procedures for insuring the effective execution of the SBA Act, as amended.
o Recommending agency goals.
o Training and education of agency staff whose duties and functions relate to Sections 8 and 15.
o Conducting outreach, liaison, source listings and seminars for small and disadvantaged business.
o Publishing required information brochures and documents.
o Interagency liaison of program procurement activities relating to small and disadvantaged businesses.
o Oversight of the implementation of Section 223(a) of P.L. 95-507. [This section requires that for any contract
being let by a Federal agency, the agency will provide to any small business upon request a copy of the bid
specifications; the name and telephone number of a employee to answer questions with respect to the contract
and adequate citations to each major Federal law or agency rule to which the business must comply in
performing the contract.
In addition to these duties, Section 211 of P.L. 95-507 requires the OSDBU to review all subcontractor plans submitted by
prime contractors to ensure compliance. This Section directs that the successful offeror or bidder on contracts valued at
$500,000 or more must submit, before an award is made, a subcontracting plan setting percentage and dollar goals for
the award of subcontracts to small and disadvantaged businesses

2
LATVIAN CONNECTION LLC 2 EXHIBIT 3 FARS
19.601 General.
(a) A Certificate of Competency (COC) is the certificate issued by the Small Business
Administration (SBA) stating that the holder is responsible (with respect to all elements of
responsibility, including, but not limited to, capability, competency, capacity, credit, integrity,
perseverance, tenacity, and limitations on subcontracting) for the purpose of receiving and
performing a specific Government contract.
(b) The COC program empowers the Small Business Administration (SBA) to certify to
Government contracting officers as to all elements of responsibility of any small business
concern to receive and perform a specific Government contract. The COC program does not
extend to questions concerning regulatory requirements imposed and enforced by other Federal
agencies.
(c) The COC program is applicable to all Government acquisitions. A contracting officer shall,
upon determining an apparent successful small business offeror to be nonresponsible, refer that
small business to the SBA for a possible COC, even if the next acceptable offer is also from a
small business.
(d) When a solicitation requires a small business to adhere to the limitations on subcontracting,
a contracting officers finding that a small business cannot comply with the limitation shall be
treated as an element of responsibility and shall be subject to the COC process. When a
solicitation requires a small business to adhere to the definition of a nonmanufacturer, a
contracting officers determination that the small business does not comply shall be processed
in accordance with Subpart 19.3.
(e) Contracting officers, including those located overseas, are required to comply with this
subpart for U.S. small business concerns.

3

4
19.502-1 Requirements for setting aside acquisitions.
(a) The contracting officer shall set aside an individual acquisition or class of acquisitions for
competition among small businesses when
(1) It is determined to be in the interest of maintaining or mobilizing the Nations full
productive capacity, war or national defense programs; or
(2) Assuring that a fair proportion of Government contracts in each industry category is
placed with small business concerns; and the circumstances described in 19.502-2 or
19.502-3(a) exist.
(b) This requirement does not apply to purchases of $3,000 or less ($15,000 or less for
acquisitions as described in 13.201(g)(1)), or purchases from required sources of supply under
Part 8 (e.g., Committee for Purchase From People Who are Blind or Severely Disabled, and
Federal Supply Schedule contracts).

5
19.502-2 Total small business set-asides.
(a) Each acquisition of supplies or services that has an anticipated dollar value exceeding
$3,000 ($15,000 for acquisitions as described in 13.201(g)(1)), but not over $100,000 ($250,000
for acquisitions described in paragraph (1) of the Simplified Acquisition Threshold definition at
2.101), is automatically reserved exclusively for small business concerns and shall be set aside
for small business unless the contracting officer determines there is not a reasonable
expectation of obtaining offers from two or more responsible small business concerns that are
competitive in terms of market prices, quality, and delivery. If the contracting officer does not
proceed with the small business set-aside and purchases on an unrestricted basis, the
contracting officer shall include in the contract file the reason for this unrestricted purchase. If
the contracting officer receives only one acceptable offer from a responsible small business
concern in response to a set-aside, the contracting officer should make an award to that firm. If
the contracting officer receives no acceptable offers from responsible small business concerns,
the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on an
unrestricted basis. The small business reservation does not preclude the award of a contract
with a value not greater than $100,000 under Subpart 19.8, Contracting with the Small Business
Administration, under 19.1007(c), Solicitations equal to or less than the ESB reserve amount, or
under 19.1305, HUBZone set-aside procedures.
(b) The contracting officer shall set aside any acquisition over $100,000 for small business
participation when there is a reasonable expectation that (1) offers will be obtained from at least
two responsible small business concerns offering the products of different small business
concerns (but see paragraph (c) of this subsection); and (2) award will be made at fair market
prices. Total small business set-asides shall not be made unless such a reasonable expectation
exists (but see 19.502-3 as to partial set-asides). Although past acquisition history of an item or
similar items is always important, it is not the only factor to be considered in determining
whether a reasonable expectation exists. In making R&D small business set-asides, there must
also be a reasonable expectation of obtaining from small businesses the best scientific and
technological sources consistent with the demands of the proposed acquisition for the best mix
of cost, performances, and schedules.
(c) For small business set-asides other than for construction or services, any concern proposing
to furnish a product that it did not itself manufacture must furnish the product of a small business
manufacturer unless the SBA has granted either a waiver or exception to the nonmanufacturer
rule (see 19.102(f)). In industries where the SBA finds that there are no small business
manufacturers, it may issue a waiver to the nonmanufacturer rule (see 19.102(f)(4) and (5)). In
addition, SBA has excepted procurements processed under simplified acquisition procedures
(see Part 13), where the anticipated cost of the procurement will not exceed $25,000, from the
nonmanufacturer rule. Waivers permit small businesses to provide any firms product. The
exception permits small businesses to provide any domestic firms product. In both of these
cases, the contracting officers determination in paragraph (b)(1) of this subsection or the
decision not to set aside a procurement reserved for small business under paragraph (a) of this
subsection will be based on the expectation of receiving offers from at least two responsible
small businesses, including nonmanufacturers, offering the products of different concerns.
(d) The requirements of this subsection do not apply to acquisitions over $30,000 during the
period when small business set-asides cannot be considered for the designated industry groups
(see 19.1007(b)).

6
19.502-5 Insufficient causes for not setting aside an acquisition.
None of the following is, in itself, sufficient cause for not setting aside an acquisition:
(a) A large percentage of previous contracts for the required item(s) has been placed with small
business concerns.
(b) The item is on an established planning list under the Industrial Readiness Planning Program.
However, a total small business set-aside shall not be made when the list contains a large
business Planned Emergency Producer of the item(s) who has conveyed a desire to supply
some or all of the required items.
(c) The item is on a Qualified Products List. However, a total small business set-aside shall not
be made if the list contains the products of large businesses unless none of the large
businesses desire to participate in the acquisition.
(d) A period of less than 30 days is available for receipt of offers.
(e) The acquisition is classified.
(f) Small business concerns are already receiving a fair proportion of the agencys contracts for
supplies and services.
(g) A class small business set-aside of the item or service has been made by another
contracting activity.
(h) A brand name or equal product description will be used in the solicitation.

7
19.502-4 Methods of conducting set-asides.
(a) Total small business set-asides may be conducted by using simplified acquisition
procedures (see Part 13), sealed bids (see Part 14), or competitive proposals (see Part 15).
Partial small business set-asides may be conducted using sealed bids (see Part 14), or
competitive proposals (see Part 15).
(b) Except for offers on the non-set-aside portion of partial set-asides, offers received from
concerns that do not qualify as small business concerns shall be considered nonresponsive and
shall be rejected. However, before rejecting an offer otherwise eligible for award because of
questions concerning the size representation, an SBA determination must be obtained (see
Subpart 19.3).

8
15 U.S.C. 644(j): Each contract for the purchase of goods and services that has an anticipated value
greater than $2,500 but not greater than $100,000 (recently raised to $3,000 and $150,000) shall be
reserved exclusively for small business concerns.
The interim rule issued by DoD, GSA and NASA provides for the use of small business set-asides on GSA
Schedule contracts but only at the discretion of the federal agency. This is unacceptable in particular
because when federal regulators originally passed a rule at section 8.4 of the FAR exempting GSA
Schedule contracts from FAR 19, they exceeded the scope of their authority and went against the
original congressional intent of the Small Business Act. The interim rule is nothing more than an
egregious attempt on the part of federal regulators to grant federal agencies the authority to decide
whether or not to recognize the constitutional rights of small business concerns.
Moreover, in 2007 the Small Business Administration offered a legal opinion to the GAO, which stated
that, according to statute and regulations, small business set asides are mandatory for acquisitions
valued from $3,000 to $100,000 (upgraded to $150,000 in 2011) and take priority over GSA Schedule
contracts. This interpretation is consistent with the declared and unambiguous intent of Congress as it
relates to Federal procurement and small Businesses. In other words, agencies do not have any latitude
on the matter. Over the past decade, the exemptions at section 8.4 of the FAR have divertedaway
from small businesseseach year: $44 billion in GSA Schedule contracts and $20 billion in foreign (or
overseas) contracts destined for military bases and embassies on foreign soil. According to the Federal
Procurement Data System, three out of five simplified acquisitions on GSA Schedule contracts are
awarded to large businesses. Current regulations force small business concerns to compete against
many of the largest companies in the world for contracts that legally should be exclusive to small
business concerns. Therefore, any rule seeking to repair the damage imposed on small businesses by
federal regulators needs to coincide with the Small Business Act and provide that any and
all simplified acquisitions (those between $3,000 and $150,000) shall be set-aside exclusively for small
business concerns regardless of procurement vehicles such as GSA Schedules

9
FAR Part 19 also recognizes VOSBs, see FAR 19.201(a) (It is the policy of the Government to provide
maximum practicable opportunities in its acquisitions to small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business,
and women-owned small business concerns.) (emphasis added), although no separate VOSB program
like the set-aside program for SDVOSBs is found in FAR Part 19.

10
b. Increased simplified acquisition threshold. Once a contingency operation has been declared, an
agency head may increase the SAT from $150,000 to $300,000 for purchases inside the United States
and $1 million for purchases outside the United States, when those supplies or services are used to
support the contingency operation. Increasing this threshold will also raise the small business set-aside
thresholds. (See FAR 2.101.)

11
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236.274 Restriction on acquisition of steel for use in military construction projects.
Home Title List Title 48 - Federal Acquisition Regulations System CHAPTER 2--DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE SUBCHAPTER F--
SPECIAL CATEGORIES OF CONTRACTING Part 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS Subpart 236.2Special Aspects of Contracting for Construction
236.274 Restriction on acquisition of steel for use in military construction projects.
Effective: Tuesday, November 01, 2011
In accordance with section 108 of the Military Construction and Veterans Affairs Appropriations Act, 2009 (Pub. L. 110329, Division E), do not acquire, or allow a contractor
to acquire, steel for any construction project or activity for which American steel producers, fabricators, or manufacturers have been denied the opportunity to compete for
such acquisition of steel.
[74 FR 2418, Jan. 15, 2009]
Federal
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252.236-7010
Code of Feder al Regul at i ons
Ti t l e 48 - Feder al Ac qui si t i on Regul at i ons Syst em
Volume: 3
Date: 2012-10-01
Original Date: 2012-10-01
Title: Section 252.236-7010 - Overseas military construction-Preference for United States ifrms.
Context: Title 48 - Federal Acquisition Regulations System. CHAPTER 2 - DEFENSE ACQUISITION REGULATIONS
SYSTEM, DEPARTMENT OF DEFENSE. SUBCHAPTER H - CLAUSES AND FORMS. PART 252 - SOLICITATION
PROVISIONS AND CONTRACT CLAUSES. Subpart 252.2 - Text of Provisions And Clauses.
Overseas military constructionPreference for United States ifrm
As prescribed in 236.570(c)(1), use the following provision:
OVERSEAS MILITARY CONSTRUCTIONPREFERENCE FOR UNITED STATES FIRMS (JAN 1997)
(A) DEFINITION. UNITED STATES FIRM, AS USED IN THIS PROVISION, MEANS A FIRM INCORPORATED IN THE UNITED STATES THAT
COMPLIES WITH THE FOLLOWING:
(1) THE CORPORATE HEADQUARTERS ARE IN THE UNITED STATES;
(2) THE FIRM HAS FILED CORPORATE AND EMPLOYMENT TAX RETURNS IN THE UNITED STATES FOR A MINIMUM OF 2 YEARS (IF
REQUIRED), HAS FILED STATE AND FEDERAL INCOME TAX RETURNS (IF REQUIRED) FOR 2 YEARS, AND HAS PAID ANY TAXES DUE AS A
RESULT OF THESE FILINGS; AND
(3) THE FIRM EMPLOYS UNITED STATES CITIZENS IN KEY MANAGEMENT POSITIONS.
(B) EVALUATION. OFFERS FROM FIRMS THAT DO NOT QUALIFY AS UNITED STATES FIRMS WILL BE EVALUATED BY ADDING 20 PERCENT TO
THE OFFER.
(C) STATUS. THE OFFEROR ___ IS, ___ IS NOT A UNITED STATES FIRM.
(End of provision) [62 FR 2857, Jan. 17, 1997, as amended at 63 FR 11549, Mar. 9, 1998]
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Title 48: Federal Acquisition Regulations System
PART 252SOLICITATION PROVISIONS AND CONTRACT CLAUSES
Subpart 252.2Text of Provisions And Clauses
252.236-7013Requi r ement f or c ompet i t i on oppor t uni t y f or Amer i c an st eel pr oduc er s, f abr i c at or s,
and manuf ac t ur er s.
As prescribed in 236.570(d), use the following clause:
Requirement for Competition Opportunity for American Steel Producers, Fabricators, and Manufacturers (JUN 2013JAN
2009)
(a) Deifnition. Construction materi as used in this clause, means an article, material, or supply brought to the construction site
by the Contractor or a subcontractor for incorporation into the building or work.
(b) The Contractor shall provide American steel producers, fabricators, and manufacturers the opportunity to compete when
acquiring steel as a construction material (e.g., steel beams, rods, cables, plates).
(c) The Contractor shall insert the substance of this clause, including this paragraph (c), in any subcontract that involves the
acquisition of steel as a construction material, including subcontracts for the acquisition of commercial items.
(End of clause)
[74 FR 2418, Jan. 15, 2009, as amended at 78 FR 37990, June 25, 2013]
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48 CFR 236.274 - Restriction on acquisition of steel for use in
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236.274
Restriction on acquisition of steel for use in military construction projects.
In accordance with section 108 of the Military Construction and Veterans Affairs
Appropriations Act, 2009 (Pub. L. 110-329, Division E), do not acquire, or allow a
contractor to acquire, steel for any construction project or activity for which American steel
producers, fabricators, or manufacturers have been denied the opportunity to compete for
such acquisition of steel.
[74 FR 2418, Jan. 15, 2009]

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Defense Federal Acquisition Regulation Supplement

Part 236Construction and Architect-Engineer Contracts

1998 EDITION 236.5-1
SUBPART 236.5--CONTRACT CLAUSES
(Revised January 15, 2009)

236.570 Additional provisions and clauses.

(a) Use the following clauses in all fixed-price construction solicitations and
contracts

(1) 252.236-7000, Modification Proposals--Price Breakdown; and

(2) 252.236-7001, Contract Drawings and Specifications.

(b) Use the following provisions and clauses in fixed-price construction contracts
and solicitations as applicable

(1) 252.236-7002, Obstruction of Navigable Waterways, when the contract will
involve work near or on navigable waterways.

(2) When the head of the contracting activity has approved use of a separate bid
item for mobilization and preparatory work, use either

(i) 252.236-7003, Payment for Mobilization and Preparatory Work. Use this
clause for major construction contracts that require

(A) Major or special items of plant and equipment; or

(B) Large stockpiles of material which are in excess of the type, kind,
and quantity which would be normal for a contractor qualified to undertake the work;
or

(ii) 252.236-7004, Payment for Mobilization and Demobilization. Use this
clause for contracts involving major mobilization expense, or plant equipment and
material (other than the situations covered in paragraph (b)(2)(i) of this section) made
necessary by the location or nature of the work.

(A) Generally, allocate 60 percent of the lump sum price in paragraph
(a) of the clause to the cost of mobilization.

(B) Vary this percentage to reflect the circumstances of the particular
contract, but in no event should mobilization exceed 80 percent of the payment item.

(3) 252.236-7005, Airfield Safety Precautions, when construction will be
performed on or near airfields.

(4) 252.236-7006, Cost Limitation, if the solicitation's bid schedule contains one
or more items subject to statutory cost limitations, and if a waiver has not been granted
(FAR 36.205).

(5) 252.236-7007, Additive or Deductive Items, if the procedures in 236.213 are
being used.

16
Defense Federal Acquisition Regulation Supplement

Part 236Construction and Architect-Engineer Contracts

1998 EDITION 236.5-2
(6) 252.236-7008, Contract Prices--Bidding Schedule, if the contract will contain
only unit prices for some items.

(c) Use the following provisions in solicitations for military construction contracts
that are funded with military construction appropriations and are estimated to exceed
$1,000,000:

(1) 252.236-7010, Overseas Military Construction--Preference for United States
Firms, when contract performance will be in a United States outlying area in the
Pacific or in a country bordering the Arabian Gulf.

(2) 252.236-7012, Military Construction on Kwajalein Atoll--Evaluation
Preference, when contract performance will be on Kwajalein Atoll.

(d) Use the clause at 252.236-7013, Requirement for Competition Opportunity for
American Steel Producers, Fabricators, and Manufacturers, in solicitations and
contracts that

(1) Use funds appropriated by Title I of the Military Construction and Veterans
Affairs Appropriations Act, 2009 (Pub. L. 110-329, Division E); and

(2) May require the acquisition of steel as a construction material.

(e) Also see 246.710(4) for an additional clause applicable to construction contracts
to be performed in Germany.

17
Pr evi ous | Nex t
(Revised September 20, 2011)
PGI 236.2SPECI AL ASPECTS OF CONTRACTI NG FOR CONSTRUCTI ON
PGI 236.203 Gover nment est i mat e of c onst r uc t i on c ost s.
(See DFARS 236.203, DFARS/PGI view)
(1) Designate the Government estimate as For Ofifcial Use Only, unless the information is classiifed. I
it is, handle the estimate in accordance with security regulations.
(2) For sealed bid acquisitions
(i) File a sealed copy of the Government estimate with the bids. (In the case of two-step
acquisitions, this is done in the second step.)
(ii) After the bids are read and recorded, remove the For Ofifcial Use Only designation and re
and record the estimate as if it were a bid, in the same detail as the bids.
PGI 236.213 Spec i al pr oc edur es f or seal ed bi ddi ng i n c onst r uc t i on c ont r ac t i ng.
For additive or deductive items
(1) Use a bid schedule with
(i) A ifrst or base bid item covering the work generally as speciifed; and
(ii) A list of priorities that contains one or more additive or deductive bid items that progressively
add or omit speciifed features of the work in a stated order of priority. (Normally, do not mix additive
deductive bid items in the same solicitation.)
(2) Before opening the bids, record in the contract ifle the amount of funds available for the proje
(3) Determine the low bidder and the items to be awarded in accordance with the procedures in the
clause at 252.236-7007, Additive or Deductive Items.
PGI 236.273 Const r uc t i on i n f or ei gn c ount r i es.
(b) When a technical working agreement with a foreign government is required for a construction contract
(i) Consider inviting the Army Ofifce of the Chief of Engineers, or the Naval Facilities Engineering
Command, to participate in the negotiations.
(ii) The agreement should, as feasible and where not otherwise provided for in other agreements,
cover all elements necessary for the construction that are required by laws, regulations, and customs of the
United States and the foreign government, including
18
(A) Acquisition of all necessary rights;
(B) Expeditious, duty-free importation of labor, material, and equipment;
(C) Payment of taxes applicable to contractors, personnel, materials, and equipment;
(D) Applicability of workers' compensation and other labor laws to citizens of the United States,
the host country, and other countries;
(E) Provision of utility services;
(F) Disposition of surplus materials and equipment;
(G) Handling of claims and litigation; and
(H) Resolution of any other foreseeable problems that can be appropriately included in the
agreement.
19
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48 CFR 252.236-7001 - Contract drawings and specications.
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252.236-7001
Contract drawings and specications.
As prescribed in 236.570(a), use the following clause:
Contract Drawings and Specications (AUG 2000)
(a) The Government will provide to the Contractor, without charge, one set of contract
drawings and specications, except publications incorporated into the technical provisions
by reference, in electronic or paper media as chosen by the Contracting Ofcer.
(b) The Contractor shall
(1) Check all drawings furnished immediately upon receipt;
(2) Compare all drawings and verify the gures before laying out the work;
(3) Promptly notify the Contracting Ofcer of any discrepancies;
(4) Be responsible for any errors that might have been avoided by complying with this
paragraph (b); and
(5) Reproduce and print contract drawings and specications as needed.
(c) In general
(1) Large-scale drawings shall govern small-scale drawings; and
(2) The Contractor shall follow gures marked on drawings in preference to scale
measurements.
(d) Omissions from the drawings or specications or the misdescription of details of work
that are manifestly necessary to carry out the intent of the drawings and specications, or
that are customarily performed, shall not relieve the Contractor from performing such
omitted or misdescribed details of the work. The Contractor shall perform such details as
if fully and correctly set forth and described in the drawings and specications.
(e) The work shall conform to the specications and the contract drawings identied on
the following index of drawings:
TitleFileDrawing No.
(End of clause)
[65 FR 50152, Aug. 17, 2000]

CFR
Title 48 Chapter 2 Subchapter H Part 252
Subpart 252.2 Section 252.236-7001
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CFR Updates Authorities (U.S. Code) Rulemaking
48 CFR 252.236-7011 - Overseas architect-engineer services
Restriction to United States i.rms.
There are 12 Updates appearing in the Federal Register for 48 CFR 252. Select
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252.236-7011
Overseas architect-engineer servicesRestriction to United States rms.
As prescribed in 236.609-70(b), use the following provision:
Overseas Architect-Engineer ServicesRestriction to United States Firms (JAN 1997)
(a) Denition. United States rm, as used in this provision, means a rm incorporated in
the United States that complies with the following:
(1) The corporate headquarters are in the United States;
(2) The rm has led corporate and employment tax returns in the United States for a
minimum of 12 years (if required), has led State and Federal income tax returns (if
required) for 2 years, and has paid any taxes due as a result of these lings; and
(3) The rm employs United States citizens in key management positions.
(b) Restriction. Military construction appropriations acts restrict award of a contract,
resulting from this solicitation, to a United States rm or a joint venture of United States
and host nation rms.
(c) Status. The offeror conrms, by submission of its offer, that it is a United States rm or
a joint venture of United States and host nation rms.
(End of provision)
[62 FR 2858, Jan. 17, 1997]

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ACQUISITION
TECHNOLOGY
OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON, DC 20301 -3000
MEMORANDUM FOR ASSISTANT SECRETARY OF THE ARMY
(ACQUISITION, LOGISTICS AND TECHNOLOGY)
ASSISTANT SECRETARY OF THE NAVY
(RESEARCH, DEVELOPMENT AND ACQUISITION)
ASSISTANT SECRETARY OF THE AIR FORCE
(ACQUISITION)
DIRECTORS OF DEFENSE AGENCIES
SUBJECT: Immediate Increase in the Dollar Threshold for Simplified Acquisition
Procedures and in the Dollar Threshold for Senior Procurement Executive
Approval of Justifications and Approvals
Section 822 of the Ronald W. Reagan National Defense Authorization Act for
Fiscal Year 2005 (the Act) sets out increases in both the micro-purchase threshold and the
simplified acquisition threshold for certain procurements and purchases. Effective
immediately, the micro-purchase threshold outside the United States is $25,000 and the
simplified acquisition threshold outside the United States is $1,000,000. These
thresholds are applicable only for contracts to be awarded and performed, or purchases to
be made, outside the United States in support of a contingency operation or to facilitate
the defense against or recovery from nuclear, biological, chemical, or radiological attack.
The Act also increases the dollar threshold for certain Justification and Approval
(J&A) authority. Effective immediately, Senior Procurement Executive approval is
required only for a J&A for a proposed contract in excess of $75M.
These changes are being incorporated in the Defense Federal Acquisition
Regulation Supplement. If you have any questions regar&dg this memorandum, please
contact Angelena Moy at 703-602- 1302.
Deidre A. Lee
Director, Defense Procurement
and Acquisition Policy
Bill Text - 113th Congress (2013-2014) - THOMAS (Library of Congress)
http://thomas.loc.gov/cgi-bin/query/F?c113:1:./temp/~c1130lwwLw:e422254:[8/27/2013 7:43:18 PM]
The Library of Congress > THOMAS Home > Bills, Resolutions > Search Results
Bill Text
113th Congress (2013-2014)
H.R.933.ENR
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H.R.933
Consolidated and Further Continuing Appropriations Act, 2013 (Enrolled Bill [Final as
Passed Both House and Senate] - ENR)
Operation and Maintenance, Air Force
For an additional amount for Òperation and Maintenance, Air Force', $9,249,736,000:
Provided, That such amount is designated by the Congress for Overseas Contingency
Operations/Global War on Terrorism pursuant to section 251(b)(2)(A)(ii) of the Balanced
Budget and Emergency Decit Control Act of 1985.
Operation and Maintenance, Defense-Wide
For an additional amount for Òperation and Maintenance, Defense-Wide', $7,714,079,000:
Provided, That of the funds provided under this heading, not to exceed $1,650,000,000, to
remain available until September 30, 2014, shall be for payments to reimburse key
cooperating nations for logistical, military, and other support, including access, provided to
United States military operations in support of Operation Enduring Freedom, and post-
operation Iraq border security related to the activities of the Ofce of Security Cooperation
in Iraq, notwithstanding any other provision of law: Provided further, That such
reimbursement payments may be made in such amounts as the Secretary of Defense, with
the concurrence of the Secretary of State, and in consultation with the Director of the Ofce
of Management and Budget, may determine, in his discretion, based on documentation
determined by the Secretary of Defense to adequately account for the support provided, and
such determination is nal and conclusive upon the accounting ofcers of the United States,
and 15 days following notication to the appropriate congressional committees: Provided
further, That the requirement under this heading to provide notication to the appropriate
congressional committees shall not apply with respect to a reimbursement for access based
on an international agreement: Provided further, That these funds may be used for the
purpose of providing specialized training and procuring supplies and specialized equipment
and providing such supplies and loaning such equipment on a non-reimbursable basis to
coalition forces supporting United States military operations in Afghanistan, and 15 days
following notication to the appropriate congressional committees: Provided further, That
the Secretary of Defense shall provide quarterly reports to the congressional defense
committees on the use of funds provided in this paragraph: Provided further, That such
amount in this section is designated by the Congress for Overseas Contingency
Operation and Maintenance, Army Reserve
For an additional amount for Òperation and Maintenance, Army Reserve', $157,887,000:
Operation and Maintenance, Navy Reserve
For an additional amount for Òperation and Maintenance, Navy Reserve', $55,924,000:
Operation and Maintenance, Marine Corps Reserve
For an additional amount for Òperation and Maintenance, Marine Corps Reserve',
$25,477,000: Provided, That such amount is designated by the Congress for Overseas
Contingency Operations/Global War on Terrorism pursuant to section 251(b)(2)(A)(ii) of the
Balanced Budget and Emergency Decit Control Act of 1985.
Operation and Maintenance, Air Force Reserve
For an additional amount for Òperation and Maintenance, Air Force Reserve', $60,618,000:
Operation and Maintenance, Army National Guard
For an additional amount for Òperation and Maintenance, Army National Guard',
Operation and Maintenance, Air National Guard
For an additional amount for Òperation and Maintenance, Air National Guard',
Overseas Contingency Operations Transfer Fund
(including transfer of funds)
In addition to amounts provided elsewhere in this Act, there is appropriated $582,884,000
for the Òverseas Contingency Operations Transfer Fund' for expenses directly relating to
overseas contingency operations by United States military forces, to be available until
expended: Provided, That of the funds made available in this section, the Secretary of
Defense may transfer these funds only to military personnel accounts, operation and
maintenance accounts, procurement accounts, and working capital fund accounts: Provided
further, That the funds made available in this paragraph may only be used for programs,
projects, or activities categorized as Overseas Contingency Operations in the scal year
2013 budget request for the Department of Defense and the justication material and other
documentation supporting such request: Provided further, That the funds transferred shall
be merged with and shall be available for the same purposes and for the same time period,
as the appropriation to which transferred: Provided further, That the Secretary shall notify
the congressional defense committees 15 days prior to such transfer: Provided further, That
the transfer authority provided under this heading is in addition to any other transfer
authority available to the Department of Defense: Provided further, That upon a
determination that all or part of the funds transferred from this appropriation are not
necessary for the purposes provided herein, such amounts may be transferred back to this
appropriation and shall be available for the same purposes and for the same time period as
originally appropriated: Provided further, That such amount is designated by the Congress
for Overseas Contingency Operations/Global War on Terrorism pursuant to section
251(b)(2)(A)(ii) of the Balanced Budget and Emergency Decit Control Act of 1985.
Afghanistan Infrastructure Fund
For the Àfghanistan Infrastructure Fund', $325,000,000, to remain available until
September 30, 2014: Provided, That such funds shall be available to the Secretary of
Defense for infrastructure projects in Afghanistan, notwithstanding any other provision of
law, which shall be undertaken by the Secretary of State, unless the Secretary of State and
the Secretary of Defense jointly decide that a specic project will be undertaken by the
Department of Defense: Provided further, That the infrastructure referred to in the
preceding proviso is in support of the counterinsurgency strategy, which may require
funding for facility and infrastructure projects, including, but not limited to, water, power,
and transportation projects and related maintenance and sustainment costs: Provided
further, That the authority to undertake such infrastructure projects is in addition to any
other authority to provide assistance to foreign nations: Provided further, That any projects
funded under this heading shall be jointly formulated and concurred in by the Secretary of
State and Secretary of Defense: Provided further, That funds may be transferred to the
Department of State for purposes of undertaking projects, which funds shall be considered to
be economic assistance under the Foreign Assistance Act of 1961 for purposes of making
available the administrative authorities contained in that Act: Provided further, That the
transfer authority in the preceding proviso is in addition to any other authority available to
the Department of Defense to transfer funds: Provided further, That any unexpended funds
transferred to the Secretary of State under this authority shall be returned to the
Afghanistan Infrastructure Fund if the Secretary of State, in coordination with the Secretary
of Defense, determines that the project cannot be implemented for any reason, or that the
project no longer supports the counterinsurgency strategy in Afghanistan: Provided further,
That any funds returned to the Secretary of Defense under the previous proviso shall be
available for use under this appropriation and shall be treated in the same manner as funds
not transferred to the Secretary of State: Provided further, That contributions of funds for
the purposes provided herein to the Secretary of State in accordance with section 635(d) of
the Foreign Assistance Act from any person, foreign government, or international
organization may be credited to this Fund, to remain available until expended, and used for
such purposes: Provided further, That the Secretary of Defense shall, not fewer than 15
days prior to making transfers to or from, or obligations from the Fund, notify the
appropriate committees of Congress in writing of the details of any such transfer: Provided
further, That the àppropriate committees of Congress' are the Committees on Armed
Services, Foreign Relations and Appropriations of the Senate and the Committees on Armed
Services, Foreign Affairs and Appropriations of the House of Representatives: Provided
further, That such amount is designated by the Congress for Overseas Contingency
Afghanistan Security Forces Fund
For the Àfghanistan Security Forces Fund', $5,124,167,000, to remain available until
September 30, 2014: Provided, That such funds shall be available to the Secretary of
Defense, notwithstanding any other provision of law, for the purpose of allowing the
Commander, Combined Security Transition Command--Afghanistan, or the Secretary's
designee, to provide assistance, with the concurrence of the Secretary of State, to the
security forces of Afghanistan, including the provision of equipment, supplies, services,
training, facility and infrastructure repair, renovation, and construction, and funding:
Provided further, That the authority to provide assistance under this heading is in addition to
any other authority to provide assistance to foreign nations: Provided further, That
contributions of funds for the purposes provided herein from any person, foreign
government, or international organization may be credited to this Fund, to remain available
until expended, and used for such purposes: Provided further, That the Secretary of Defense
shall notify the congressional defense committees in writing upon the receipt and upon the
obligation of any contribution, delineating the sources and amounts of the funds received
and the specic use of such contributions: Provided further, That the Secretary of Defense
shall, not fewer than 15 days prior to obligating from this appropriation account, notify the
congressional defense committees in writing of the details of any such obligation: Provided
further, That the Secretary of Defense shall notify the congressional defense committees of
any proposed new projects or transfer of funds between budget sub-activity groups in
excess of $20,000,000: Provided further, That such amount is designated by the Congress
for Overseas Contingency Operations/Global War on Terrorism pursuant to section
PROCUREMENT
Aircraft Procurement, Army
For an additional amount for Àircraft Procurement, Army', $550,700,000, to remain
available until September 30, 2015: Provided, That such amount is designated by the
Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to section
Missile Procurement, Army
For an additional amount for `Missile Procurement, Army', $67,951,000, to remain available
until September 30, 2015: Provided, That such amount is designated by the Congress for
Overseas Contingency Operations/Global War on Terrorism pursuant to section
Procurement of Weapons and Tracked Combat Vehicles, Army
For an additional amount for `Procurement of Weapons and Tracked Combat Vehicles,
Army', $15,422,000, to remain available until September 30, 2015: Provided, That such
amount is designated by the Congress for Overseas Contingency Operations/Global War on
Terrorism pursuant to section 251(b)(2)(A)(ii) of the Balanced Budget and Emergency Decit
Control Act of 1985.
Procurement of Ammunition, Army
For an additional amount for `Procurement of Ammunition, Army', $338,493,000, to remain
Other Procurement, Army
For an additional amount for Òther Procurement, Army', $1,740,157,000, to remain
Aircraft Procurement, Navy
For an additional amount for Àircraft Procurement, Navy', $215,698,000, to remain
Weapons Procurement, Navy
For an additional amount for `Weapons Procurement, Navy', $22,500,000, to remain
Procurement of Ammunition, Navy and Marine Corps
For an additional amount for `Procurement of Ammunition, Navy and Marine Corps',
$283,059,000, to remain available until September 30, 2015: Provided, That such amount is
designated by the Congress for Overseas Contingency Operations/Global War on Terrorism
pursuant to section 251(b)(2)(A)(ii) of the Balanced Budget and Emergency Decit Control
Act of 1985.
Other Procurement, Navy
For an additional amount for Òther Procurement, Navy', $98,882,000, to remain available
until September 30, 2015: Provided, That such amount is designated by the Congress for
Procurement, Marine Corps
For an additional amount for `Procurement, Marine Corps', $822,054,000, to remain
Aircraft Procurement, Air Force
For an additional amount for Àircraft Procurement, Air Force', $305,600,000, to remain
Missile Procurement, Air Force
For an additional amount for `Missile Procurement, Air Force', $34,350,000, to remain
Procurement of Ammunition, Air Force
For an additional amount for `Procurement of Ammunition, Air Force', $116,203,000, to
remain available until September 30, 2015: Provided, That such amount is designated by
the Congress for Overseas Contingency Operations/Global War on Terrorism pursuant to
section 251(b)(2)(A)(ii) of the Balanced Budget and Emergency Decit Control Act of 1985.
Other Procurement, Air Force
For an additional amount for Òther Procurement, Air Force', $2,680,270,000, to remain
Procurement, Defense-Wide
For an additional amount for `Procurement, Defense-Wide', $188,099,000, to remain
National Guard and Reserve Equipment
For procurement of aircraft, missiles, tracked combat vehicles, ammunition, other weapons
and other procurement for the reserve components of the Armed Forces, $1,500,000,000, to
remain available for obligation until September 30, 2015: Provided, That the Chiefs of
National Guard and Reserve components shall, not later than 30 days after the enactment of
this Act, individually submit to the congressional defense committees the modernization
priority assessment for their respective National Guard or Reserve component: Provided
further, That such amount is designated by the Congress for Overseas Contingency
RESEARCH, DEVELOPMENT, TEST AND EVALUATION
Research, Development, Test and Evaluation, Army
For an additional amount for `Research, Development, Test and Evaluation, Army',
Act of 1985.
Research, Development, Test and Evaluation, Navy
For an additional amount for `Research, Development, Test and Evaluation, Navy',
Act of 1985.
Research, Development, Test and Evaluation, Air Force
For an additional amount for `Research, Development, Test and Evaluation, Air Force',
Act of 1985.
Research, Development, Test and Evaluation, Defense-Wide
For an additional amount for `Research, Development, Test and Evaluation, Defense-Wide',
Act of 1985.
REVOLVING AND MANAGEMENT FUNDS
Defense Working Capital Funds
For an additional amount for `Defense Working Capital Funds', $243,600,000: Provided,
That such amount is designated by the Congress for Overseas Contingency
OTHER DEPARTMENT OF DEFENSE PROGRAMS
Defense Health Program
For an additional amount for `Defense Health Program', $993,898,000, which shall be for
operation and maintenance: Provided, That such amount is designated by the Congress for
Drug Interdiction and Counter-Drug Activities, Defense
For an additional amount for `Drug Interdiction and Counter-Drug Activities, Defense',
Act of 1985.
Joint Improvised Explosive Device Defeat Fund
For the `Joint Improvised Explosive Device Defeat Fund', $1,622,614,000, to remain
available until September 30, 2015: Provided, That such funds shall be available to the
Secretary of Defense, notwithstanding any other provision of law, for the purpose of allowing
the Director of the Joint Improvised Explosive Device Defeat Organization to investigate,
develop and provide equipment, supplies, services, training, facilities, personnel and funds
to assist United States forces in the defeat of improvised explosive devices: Provided further,
That the Secretary of Defense may transfer funds provided herein to appropriations for
military personnel; operation and maintenance; procurement; research, development, test
and evaluation; and defense working capital funds to accomplish the purpose provided
herein: Provided further, That this transfer authority is in addition to any other transfer
authority available to the Department of Defense: Provided further, That the Secretary of
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Defense shall, not fewer than 15 days prior to making transfers from this appropriation,
notify the congressional defense committees in writing of the details of any such transfer:
Provided further, That such amount is designated by the Congress for Overseas Contingency
Ofce of the Inspector General
For an additional amount for the Òfce of the Inspector General', $10,766,000: Provided,
That such amount is designated by the Congress for Overseas Contingency
GENERAL PROVISIONS--THIS TITLE
Sec. 9001.
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2013 Contract Attorneys Deskbook
Chapter 9
Simplified Acquisition
Procedures

CHAPTER 9
SIMPLIFIED ACQUISITIONS
I. INTRODUCTION....................................................................................................... 1
II. REFERENCES............................................................................................................ 1
III. OVERVIEW................................................................................................................ 2
IV. DEFINITIONS. ........................................................................................................... 7
A. Authorized Individual........................................................................................... 7
B. Commercial Item Test Program (CITP) ............................................................... 7
C. Contingency Operation......................................................................................... 7
D. Governmentwide Commercial Purchase Card ..................................................... 7
E. In support of...................................................................................................... 7
F. Imprest Fund......................................................................................................... 8
G. Humanitarian or Peacekeeping Operation............................................................ 8
H. Purchase Order ..................................................................................................... 8
I. Request for Quotes (RFQ).................................................................................... 8
V. WHEN TO USE SAP OVERVIEW OF POLICY PRE-REQUISITES ............. 8
A. General Rule......................................................................................................... 8
B. Overview of Pre-Requisites.................................................................................. 8
VI. PRE-REQUISITE: REQUIRED SOURCES .......................................................... 9
A. FAR Policy for Required Sources of Supplies and Services................................ 9
B. Required Sources of Supplies............................................................................. 10
C. Required Sources of Services. ............................................................................ 15
VII. PRE-REQUISITE: SMALL-BUSINESS SET-ASIDES ...................................... 16
A. General Rule....................................................................................................... 16
VIII. COMPETITION REQUIREMENTS. .................................................................... 17

A. General Rules ..................................................................................................... 17
B. Defining "maximum extent practicable." ........................................................... 17
C. Considerations for soliciting competition. ......................................................... 19
IX. SIMPLIFIED ACQUISITION METHOD OF CONTRACTING. ...................... 21
A. Policy.................................................................................................................. 21
B. Request for Quotations Legal Formation of the contract. ............................... 21
C. Authority to Combine Methods of Contracting.................................................. 23
D. Evaluation Procedures & Criteria....................................................................... 24
E. Award and Documentation................................................................................. 26
F. Authority to Innovate ......................................................................................... 27
X. PUBLICIZING AGENCY CONTRACT ACTIONS. FAR PART 5. ................. 28
A. Policy.................................................................................................................. 28
B. Exception for contract actions outside the United States ................................... 28
C. Definitions. ......................................................................................................... 28
D. Publicizing Requirements................................................................................... 29
E. Methods of soliciting quotes. ............................................................................. 31
XI. PURCHASING TECHNIQUES.............................................................................. 33
A. General ............................................................................................................... 33
B. Purchase Orders.................................................................................................. 33
C. Blanket Purchase Agreements............................................................................ 36
D. Imprest Funds ..................................................................................................... 40
E. Government-wide Commercial Purchase Card .................................................. 41
XII. USING THE FEDERAL SUPPLY SCHEDULES (FSS) ...................................... 45
A. Background......................................................................................................... 45
B. Ordering under the FSS. ..................................................................................... 48

XIII. CONCLUSION ......................................................................................................... 55
XIII. APPENDICES........................................................................................................... 56

This page left intentionally blank.

CHAPTER 9
SIMPLIFIED ACQUISITIONS
I. INTRODUCTION
Following this block of instruction, students should:
A. Understand that Simplified Acquisitions streamline the acquisition process
and can result in substantial savings of time and money to the Government.
B. Understand how Simplified Acquisitions differ from the Sealed Bidding and
Negotiated Procurement methods of acquisitions.
C. Understand when you can use Simplified Acquisitions, and the different
competition requirements and thresholds that apply to different Simplified
Acquisition procedures.
D. Understand the various simplified acquisitions procedures and the situations
when each procedure should be used.
II. REFERENCES
A. Federal Acquisition Streamlining Act of 1994, Pub. L. No. 103-355, 108 Stat.
3243 (1994) (hereinafter FASA).
B. Federal Acquisition Regulation (hereinafter FAR) Part 13, Simplified
Acquisition Procedures.
C. FAR Part 8, Required Sources of Supplies and Services.
D. FAR Part 5, Publicizing Contract Actions.
E. FAR Part 2, Definitions of Words and Terms.
F. Defense Federal Acquisition Regulation Supplement (DFARS) Part 213,
Simplified Acquisitions Procedures.
G. DOD Financial Management Regulation (FMR), Volume 5, 0204, Imprest
Funds (May 2012).
H. DOD Financial Management Regulation (FMR), Volume 10, Chapter 23,
Purchase Card Payments (Sep 2010).
I. Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005,
Pub. L. No. 108-375, 822.
9-1

III. OVERVIEW
A. What is a Simplified Acquisition? To streamline the federal procurement
process, in 1994, Congress authorized the use of a simplified acquisition
process for purchases of supplies and services under certain thresholds. The
goal was to allow agency officials to expedite the evaluation and selection
processes and keep documentation to a minimum.
1
B. Simplified acquisition procedures are those procedures prescribed in Part 13
of the FAR, Part 213 of the DFARS, and agency FAR supplements for
making simplified acquisitions. The simplified acquisition procedures include
the use of SF 1449 (Solicitation / Contract / Order for Commercial Items),
SF18 (Request for Quotation), purchase orders, blanket purchase agreements
(BPAs), imprest funds, and government purchase cards (GPCs are basically
government credit cards).
C. Purpose. FAR 13.002. Simplified acquisition procedures are used to:
1. Reduce administrative costs;
2. Improve opportunities for small disadvantaged, women-owned,
veteran-owned, HUBZone, and service-disabled veteran-owned small
business concerns to obtain a fair proportion of government contracts;
3. Promote efficiency and economy in contracting;
4. Avoid unnecessary burdens for agencies and contractors.
D. Thresholds. There are basically four different categories of purchases
authorized to use a form of the simplified acquisition procedures. Three of the
four categories are primarily defined by thresholds. The following chart
summarizes the thresholds, which are then further defined below the chart:
1
GAO Report to Congressional Committees, September 2003, Contract Management, No Reliable Data to
Measure Benefits of the Simplified Acquisition Test Program, GAO-03-1068, pg. 2.
9-2

Simplified
Acquisition Method
Normal
Thresholds
Purchase made (or awarded & performed)
inside the U.S. in support of a
contingency operation or to facilitate the
defense against or recovery from NBCR
Purchase made (or
awarded & performed)
outside
2
the U.S in
support of a contingency
operation or NBCR
recovery.
Micro-Purchase $3,000
3
$15,000 $30,000
SAP $150,000
4
$300,000 $1,000,000
Commercial Items
5
[$6,500,000] [$12,000,000] [$12,000,000]
1. Simplified Acquisition Threshold. Acquisitions of supplies or services
in the amount of $150,000 or less are called simplified acquisitions.
They may use the simplified acquisition procedures listed in FAR Part
13. FAR 2.101.
a. The Simplified Acquisition threshold increases to $300,000 for
contract awards and purchases inside the U.S. if the head of
the agency determines the acquisition of supplies or services is
to be used to in support of a contingency operation or to
facilitate defense against or recovery from nuclear, biological,
chemical, or radiological attack. FAR 2.101.
b. The Simplified Acquisition threshold increases to $300,000 for
contract awards and purchases outside the U.S. if the head of
the contracting activity determines the acquisition of supplies
or services is to be used to in support of a humanitarian or
peacekeeping operation, as defined in FAR 2.101.
2
Section 843 of the National Defense Authorization Act for Fiscal Year 2012 permits DoD to designate a single
lead contracting activity inside the United States to act as a reach-back contracting authority in support of
OEF and Operation New Dawn. The single reach-back contracting authority may use the increased thresholds
available to support contingencies even if the contracts are awarded inside the United States.
3
Per the definition in FAR 2.101, the micro-purchase threshold is $2,000 for purchase of construction subject to
the Davis-Bacon Act and $2,500 for purchase of services subject to the Service Contract Act.
4
A DoD Class Deviation (DARS Tracking Number: 2011-O0009), effective March 28, 2011, raised the
Simplified Acquisition Threshold to $300,000 when soliciting or awarding contracts to be awarded and
performed outside the United States, or making purchases outside the United States, for acquisitions of supplies
and services that, as determined by the head of the contracting activity, are to be used to support a humanitarian
or peacekeeping operation, as defined at FAR 2.101 (emphasis added). The Class Deviation has since been
incorporated into the Simplified Acquisition definition at DFARS 202.101.
5
Authority for the CITP lapsed on 1 Jan 2012, but was reauthorized by section 822 of the 2013 NDAA.
Authority for the program will lapse on 1 Jan 2015, absent Congressional action to re-extend the program or to
make it permanent. Curiously, the NDAA provision that reauthorized the program included an effective date of
1 January 2012, which in effect retroactively authorizes the program for all of 2012 (i.e. between the date the
authority originally lapsed (1 Jan 2012) and the date the NDAA was signed into law (2 Jan 2013)). Whether
this retroactive effect has any practical importance remains to be seen.
9-3

c. The Simplified Acquisition threshold increases to $1,000,000
for contract awards and purchases outside the U.S. if the head
of the agency determines the acquisition of supplies or services
is to be used to in support of a contingency operation or to
facilitate defense against or recovery from nuclear, biological,
chemical, or radiological attack. FAR 2.101. The Ronald W.
Reagan National Defense Authorization Act for Fiscal Year
2005, Pub. L. No. 108-375, 822.
2. Micro Purchase Threshold. Acquisition of supplies or services, the
aggregate amount of which does not exceed $3,000 are called micro
purchases. In the case of construction, the limit is $2,000 and in the
case of acquisitions subject to the Service Contract Act the limit is
$2,500.
6
FAR 2.101.
a. If the head of the agency determines the acquisitions of
supplies or services is in support of a contingency operation or
to facilitate defense against or recovery from nuclear,
biological, chemical or radiological attack the micro-purchase
threshold increases to $15,000 for any contract to be awarded
and performed, or purchase to be made inside the U.S. FAR
2.101; FAR 13.201(g). Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005, Pub. L. No. 108-375,
822.
b. If the head of the agency determines the acquisitions of
supplies or services is in support of a contingency operation or
to facilitate defense against or recovery from nuclear,
biological, chemical or radiological attack the micro-purchase
threshold increases to $30,000 for any contract to be awarded
and performed, or purchase to be made outside the U.S. FAR
2.101; FAR 13.201(g). Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005, Pub. L. No. 108-375,
822.
(1) Purchases using this authority must have a clear and
direct relationship to the support of a contingency
operation or the defense against or recovery from
nuclear, biological, chemical, or radiological attack.
6
Effective September 28, 2006, the Civilian Agency Acquisition Council and the Defense Acquisition
Regulation Council (FAR Councils) adjusted general micro-purchase for inflation from $2,500 to $3,000,
pursuant to Pub. L. No. 108-375, 807. The FAR Councils could not adjust the micro-purchase thresholds for
non-exempt service contracts and construction contracts because of limitation created by the Service Contract
Act and the Davis-Bacon Wage Act. See Federal Acquisition Regulation; Inflation Adjustment of Acquisition-
Related Thresholds, 71 Fed. Reg. 57,363.
9-4

(2) The government-wide commercial purchase card is the
preferred method of making micro-purchases, although
any of the contract vehicles may be used if agency
procedures allow it. FAR 13.201(b). NOTE: As of 31
July 2000, DoD requires the use of the government
purchase card (GPC) for all purchases at or below the
micro-purchase threshold. 65 Fed. Reg. 46,625 (2000).
See DFARS 213.270 (for exceptions to the policy); see
AFARS 5113.270 (for agency specific requirements for
the purchase card program).
(3) No provisions or clauses are required for micro-
purchases, but they may be used. FAR Part 8 DOES
apply to micro-purchases.
(4) Competition is not required if the authorized individual
considers the price reasonable. To the extent
practicable, micro-purchases shall be distributed
equitably among qualified suppliers. FAR 13.202(a).
3. Commercial Item Test Program Threshold.
7
Congress created a
Commercial Item Test Program (CITP) authority for agencies to use
simplified acquisition procedures to purchase commercial item
supplies and services for amounts greater than the simplified
acquisition threshold but not greater than $6,500,000. National
Defense Authorization Act for Fiscal Year 1996, Pub. L. No. 104-106,
4202(a) (1) (A) (codified at 10 U.S.C. 2304(g)(1)(B)). FAR 13.5.
8
a. For a contingency operation or to facilitate the defense
against or recovery from nuclear, biological, chemical, or
radiological attack against the United States, the $6,500,000
commercial item test program threshold increases to
$12,000,000. See National Defense Authorization Act for
Fiscal Year 2004, Pub. L. No. 108-136, 1443.
b. For the period of the CITP test, contracting activities are to use
simplified acquisition procedures to the maximum extent
practicable. FAR 13.500(b).
c. Congress created the CITP authority to promote efficiency and
economy in contracting and to avoid unnecessary burdens for
agencies and contractors. 10 U.S.C. 2304(g)(1). Therefore,
7
See footnote 5 above.
8
Effective October 1, 2010, the FAR Councils adjusted the maximum purchase threshold for the Commercial
Items Test Program for inflation from $5.5 million to $6.5 million. See Federal Acquisition Regulation;
Inflation Adjustment of Acquisition-Related Thresholds, 75 Fed. Reg. 53129.
9-5

agencies should take advantage of the simplified acquisition
method of acquisition whenever possible in conjunction with
the CITP authority. See East West Research, Inc., B-239516,
Aug. 29, 1990, 90-2 CPD 178 (In keeping with their purpose
promoting efficiency and economy in contracting small
purchase procedures are specifically excepted from the full and
open competition requirements of the Competition in
Contracting Act of 1984 and the mandatory use of commercial
item descriptions); see also American Eurocopter Corporation,
B-283700, Dec. 16, 1999, 99-2 CPD P 110 (agency used
authority of FAR 13.5 to purchase a Bell Helicopter).
d. On January 15, 2013 the Defense Procurement and Acquisition
Policy (DPAP) authorized a class deviation from Federal
Acquisition Regulation (FAR) Subpart 13.5, Test Program
For Certain Commercial Items, whereby extending
authority to issue solicitations under this Subpart from
January 1, 2012, to January 1, 2015
9
.
e. Section 821: Extension of Authority for Use of Simplified
Acquisition Procedures for Certain Commercial Items This
provision extends to 2015 the test program in which an
agency may use simplified procedures to purchase commercial
items in amounts greater than the simplified acquisition
threshold, but not exceeding $6,500,000 ($12,000,000 for
acquisitions in support of a contingency operation or to
facilitate the defense against or recovery from nuclear,
biological, chemical, or radiological attack) .
f. Section 822: Fiscal Year 2013 National Defense Authorization
Act -renewed and extended the test program which allows
agencies to use simplified acquisition procedures for certain
commercial items above the simplified acquisition threshold.
The deviation is effective immediately and will remain in
effect until incorporated into the far or otherwise rescinded.
4. Personal Services. If an agency has specific statutory authority to
acquire personal services, that agency may use simplified acquisition
procedures to acquire those services. FAR 13.003 and FAR 37.104.
9
Director, DPAP memo of 15 January 2013, Class Deviation-Extension of Authority for Use of Simplified
Acquisition Procedures for Certain Commercial Items, available at
https://www.gotovao.com/index.cfm?action=comment&id=0680049691000443>
9-6

IV. DEFINITIONS.
A. Authorized Individual. A person who has been granted authority under
agency procedures to acquire supplies and services in accordance with the
simplified acquisition procedures of FAR Part 13. FAR 13.001.
B. Commercial Item Test Program (CITP).
10
A program designed to implement
the federal governments preference for the acquisition of commercial items
by establishing acquisition policies more closely resembling those of the
commercial marketplace. In general, this program allows for the procurement
of commercial items using simplified acquisition procedures as long as the
commercial item costs less than $6,500,000. See FAR Part 13.5 and Chapter
10 of the Contract Attorneys Deskbook for a comprehensive outline. Note
that the authority to issue solicitations and to use the increased thresholds
under the Test Program for Certain Commercial Items was extended to
January 1, 2015.
C. Contingency Operation. For purposes of determining the applicable
simplified acquisition threshold, a contingency operation is a military
operation that is designated by the Secretary of Defense as an operation in
which members of the armed forces are or may become involved in military
actions, operation, or hostilities against an enemy of the United States or
against an opposing military force; or a military operation that results in the
call or order to, or retention on, active duty of members of the uniformed
services under section 688, 12301(a), 12302, 12304, 12305, or 12406 of 10
U.S.C. chapter 15 of 10 USC or any other provision of law during a war or
during a national emergency declared by the President or Congress. FAR
2.101 and 10 U.S.C. 101(a)(13).
D. Governmentwide Commercial Purchase Card. A purchase card, similar in
nature to a commercial credit card, issued to authorized agency personnel to
use to acquire and to pay for supplies and services. FAR 13.001.
E. In support of. For purposes of determining applicable simplified acquisition
threshold, the determination as to whether the supplies or services are to be
used in support of such a contingency operation is to be made by the head of
the agency, which for the Army is the Assistant Secretary of the Army
(Acquisition, Logistics and Technology). FAR 2.101. By memorandum
dated March 24, 2004, the ASA(ALT) delegated this authority down to each
Head of Contracting Activity, who may further delegate this authority down to
any official in procurement channels, who is at least one level above the
contracting officer. Typically, the authority is re-delegated down to the
Directors of Contracting or to the chiefs of contracting offices.
10
See footnote 5 above.
9-7

F. Imprest Fund. A cash fund of a fixed amount established by an advance of
funds without charge to an appropriation, from an agency finance or
disbursing officer to a duly appointed cashier, for disbursement as needed
from time to time in making payment in cash for relatively small amounts.
FAR 13.001.
G. Humanitarian or Peacekeeping Operation. A military operation in support of
the provision of humanitarian or foreign disaster assistance or in support of a
peacekeeping operation under chapter VI or VII of the Charter of the United
Nations. The term does not include routine training, force rotation, or
stationing (10 U.S.C. 2302(8) and 41 U.S.C 259(d)). FAR 2.101.
H. Purchase Order. A government offer to buy certain supplies or services,
including construction and research and development, upon specified terms
and conditions, using simplified acquisition procedures. FAR 2.101.
I. Request for Quotes (RFQ). When a contracting officer solicits vendors to fill
an agency need while using simplified acquisitions procedures, the solicitation
is called a Request for Quotes. Vendors responses to fill the agency needs
are called quotes. A quotation is not an offer, and consequently, cannot be
accepted by the government to form a binding contract. The order by the
government is the offer. When the contractor accepts the governments order,
a legal contract is formed. FAR 13.004.
V. WHEN TO USE SAP OVERVIEW OF POLICY PRE-
REQUISITES
A. General Rule: Agencies shall use simplified acquisition procedures to the
maximum extent practicable for all purchases of supplies or services not
exceeding the simplified acquisition threshold (including purchases at or
below the micro-purchase threshold). FAR 13.003(a).
11
B. Overview of Pre-Requisites. There are pre-requisites to using SAP.
1. Agencies shall not use simplified acquisition procedures to acquire
supplies and services initially estimated to exceed the simplified
acquisition threshold, or that will, in fact, exceed it. FAR 13.003(c).
a. Options. Options may be included in simplified acquisitions
but the threshold value of the acquisition is determined by
11
In support of contingency operations defined by 10 U.S.C. 101(a)(13), or to facilitate defense against or
recovery from NBC or radiological attack, the simplified acquisition threshold increases to $300,000 for
purchase made in the U.S., or $1,000,000 for purchase made outside the U.S. Service Acquisition Reform Act
of 2003, Pub. L. No. 108-136, 1443; increased thresholds in the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005, Pub. L. No. 108-375, 817; and FAR 2.101 and DFARS 202.101. In
support of humanitarian or peacekeeping operations, the Simplified Acquisition Threshold is $300,000 for
purchases made, or contracts to be awarded and performed, outside the United States. See note 4 supra.
9-8

adding the value of the base contract and all options. FAR
13.106-1(e).
2. Agencies shall not divide requirements that exceed the simplified
acquisition threshold into multiple purchases merely to justify using
simplified acquisition procedures. 10 U.S.C. 2304(g)(2); FAR
13.003(c).
a. See L.A. Systems v. Department of the Army, GSBCA 13472-
P, 96-1 BCA 28,220 (Government improperly fragmented
purchase of computer upgrades into four parts because agency
knew that all four upgrades were necessary and were,
therefore, one requirement).
b. But see Petchem, Inc. v. United States, 99 F.Supp. 2d 50
(D.D.C. 2000) (Navy did not violate CICA by purchasing
tugboat services on a piecemeal basis when it used an IDIQ
contract, even though total value of the services were expected
to exceed $100,000, because actual requirement was
indeterminate and a prior competitive solicitation did not result
in reasonable offers); Mas-Hamilton Group, Inc., B-249049,
Oct. 20, 1992, 72 Comp. Gen. 6, 92-2 CPD 259 (Where an
agency was not in a position to proceed with fully competitive
award for critical items, agencys utilization of small purchase
procedures to make interim, emergency filler buys on an as-
needed, urgent basis was not improper).
3. If other existing ID/IQ contracts or other existing contracts would
satisfy the agencys requirement, the agency must order off the other
contract. FAR 13.003(a)(2) & (3).
4. Required Supply or Service: If agencys requirement can be met by
using a required source of supply or a required source of services
under FAR Part 8, then the agency must acquire the item in that
manner.
5. Small Business Set-Aside. All acquisitions exceeding the micro-
purchase threshold but under the simplified acquisition threshold are
reserved exclusively for small business concerns and shall be set
aside. FAR 13.003.
VI. PRE-REQUISITE: REQUIRED SOURCES OF SUPPLIES AND
SERVICES
A. FAR Policy for Required Sources of Supplies and Services. Prior to
competing a contract for supplies or services through ANY method of
acquisition (Simplified Acquisitions, Sealed Bidding, or Negotiations),
9-9

agencies must determine whether they can satisfy their needs through
Required Sources of Supplies and Services under FAR Part 8. (e.g., Federal
Prison Industries, Committee for Purchase from People who are Blind or
12 13
Severely Disabled, and Federal Supply Schedule contracts). FAR 8.002.
B. Required Sources of Supplies. Agencies shall satisfy requirements for
supplies in the descending order of priority listed below:
1. First, Agency inventories;
2. Second, Excess from other agencies (see FAR Subpart 8.1);
3. Third, Federal Prison Industries, Inc. (FPI) (see FAR Subpart 8.6).
a. FPI (also referred to as UNICOR) is a self-supporting, wholly
owned government corporation that provides training and
employment for Federal penal and correctional prisoners
through the creation and sale of its supplies and services to
government agencies. FPI diversifies its supplies and services
to minimize adverse impact on private industry. FAR 8.601;
18 U.S.C. 4121-4128 (2006). See www.unicor.gov.
b. Although FAR 8.002 lists FPI/UNICOR as a mandatory supply
source, due to statutory changes, FPI is now a qualified
mandatory source pursuant to Section 637 of Division H of the
Consolidated Appropriations Act, 2005 (Public Law 108-447).
National Defense Authorization Act (NDAA) for FY 2002,
Pub. L. No. 107-107, div. a, Title VIII, 811(a)(1), 115 Stat.
1180-81 (2001), as amended by the NDAA for FY 2008, Pub.
L. No. 110-181, Div. A, Title VIII, 827, 122 Stat. 228-29
(2008)(appearing at 10 U.S.C. 2410n (b)).
(1) The 2005 CAA provided that none of the funds made
available under that or any other Act for fiscal year
2005 and each fiscal year thereafter shall be expended
for the purchase of a product or service offered by FPI,
unless the agency making the purchase determines that
12
Federal Supply Schedule is no longer mandatory, but is a preferred method of purchasing. See Murray-
Benjamin Elec. Co., LLP, B-298481, 2006 U.S. Comp. Gen. LEXIS 143 (Sept. 7, 2006).
13
DoD, GSA, and NASA are proposing to amend the FAR part 8. FAR part 8 requires Federal agencies to
satisfy their requirements for supplies and services from or through a list of sources in order of priority. This
proposed rule would amend FAR part 8 by revising FAR 8.000, 8.002, 8.003, and 8.004, eliminating outdated
categories, and distinguishing between Government sources (e.g., Federal Supply Schedules (FSS)) and private-
sector sources. See FAR Case 2009024, Prioritizing Sources of Supplies and Services for Use by the
Government, Proposed rule, 76 Fed. Reg. 34634, June 14, 2011.
9-10

the offered product or service provides the best value to
the buying agency.
(2) The statutory guidance has been implemented at FAR
8.602 and 8.605.
c. Procedures for FPI Procurements.
(1) Market Research Requirement. Prior to procuring from
FPI/UNICOR, agencies are unilaterally required to
conduct market research to determine whether
UNICOR products are comparable to products available
in the commercial market in terms of price, quality and
time of delivery. FAR 8.602 (a)(1).
14
(2) Written D&F. The contracting officer must prepare a
written determination with supporting rationale
comparing the FPI item to supplies available from the
private sector in terms of price, quality, and time of
delivery. If the FPI item is comparable, the agency
shall purchase the item from FPI unless the agency has
one of the waivers or exceptions below. FAR
8.602(a)(2).
(a) Waivers. FPI may grant a waiver for purchase
of supplies in the FPI Schedule from another
source. There are two types of waivers:
General and Formal. FAR 8.604.
(b) Exceptions. Purchase from FPI is not required
and a waiver is not needed if:
(i) Public exigency requires immediate
delivery or performance;
(ii) Suitable used or excess supplies are
available;
(iii) The supplies are acquired and used
outside the United States;
(iv) Items total $3,000 or less (below the
micro purchase threshold);
14
The arbitration provisions of 18 U.S.C. 4124(b) do not apply to the initial market research decision conducted
by the agency. However, once the agency finds that FPI is not comparable and decides to acquire the item
using any of the authorized procedures, any dispute regarding price, quality, character, or suitability of supplies
produced by FPI are subject to arbitration as specified in 18 U.S.C. 4124. Arbitration decisions are final and
binding on all parties. FAR 8.602(d).
9-11

(v) Acquiring services; or
(vi) FPI already offers exclusively on a
competitive (non-mandatory) basis, as
identified in the FPI schedule. FAR
8.605.
(3) If FPI products are not comparable, an agency must
acquire the item:
(a) Using Competitive Procedures in FAR 6.102,
19.5 or Part 13;
OR
(b) Using the fair opportunity procedures in FAR
16.505, if placing an order under a multiple
award delivery-order contract.
(4) In both cases, the agency MUST include FPI in the
solicitation process and consider a timely offer from
FPI. Posting the solicitation on FedBizOps is adequate
notice. If the solicitation is not posted on FedBizOps,
then a copy of the solicitation must be sent to FPI.
FAR 8.602(a)(4).
(5) If the agency is using the fair opportunity procedures in
FAR 16.505 or using the multiple award schedule
issued pursuant to FAR Subpart 8.4, the agency must
also provide FPI the item description or specification,
the evaluation factors that will be used as the basis for
source selection AND consider a timely offer from FPI.
FAR 8.602(a)(4)(iii).
(6) Agencies are to award to the source offering the best
value to the government. If FPI is determined to be the
best value, order from FPI. FAR 8.602(a)(4)(iv).
d. If agencies do procure supplies via FPI/UNICOR (after making
the above determinations and findings), they are required to
rate FPI performance, and compare it to the private sector.
FAR 8.606.
e. DOD Restrictions. Section 827 of the NDAA Fiscal Year
2008 (Pub. Law. 110-181) required DoD to use competitive
procedures when procuring products for which FPI has a
significant market share. The statutes implementing
regulation is at DFARS 208.602-70. FPI is treated as having a
9-12

significant market share if FPIs share of the Department of
Defense market is greater than 5 percent. In that case, DoD
must acquire the item
(1) Using Competitive Procedures in FAR 6.102, 19.5 or
Part 13; OR
(2) Using the fair opportunity procedures in FAR 16.505, if
placing an order under a multiple award delivery-order
contract; AND
(3) The agency MUST include FPI in the solicitation
process, consider a timely offer from FPI, and make an
award in accord with FAR 8.602(a)(4)(ii) through (v.)
(4) A list of the federal supply classification codes of items
for which FPI has more than a 5% share is maintained
at
http://www.acq.osd.mil/dpap/cpic/cp/specific_policy_ar
eas.html#federal_prison (last visited 24 May 2013).
(a) Case Study. GAO has found DOD reasonably
exercised its discretion in implementing the
2008 NDAA when it established an effective
date that began 30 days after its issuance of an
amended list of product categories for which
FPI has a significant share. After DoD issued
an amendment adding shirts to the list, but prior
to the effective date of the amendment, the
Defense Supply Center Philadelphia (DSCP)
non-competitively issued a solicitation to FPI.
DSCP had previously completed a
comparability assessment, determined FPIs
products were comparable and decided to award
to FPI. GAO found DSCP properly followed
DoDs implementation instructions. Ashland
Sales & Service Co., B-401481, 15 Sept. 2009.
4. Fourth, supplies which are on the Procurement List maintained by the
Committee for Purchase From People Who Are Blind or Severely
Disabled (Ability One).
9-13

a. Ability One markets its supplies available through the
Skilcraft brand name. See www.jwod.org
15
and FAR Subpart
8.7;
b. Contractors who purchase supplies and services for U.S.
Government use, must also purchase supplies and services
from Ability One. FAR 8.002(c) and FAR 52.208-9.
5. Fifth, wholesale supply sources, such as stock programs of the General
Services Administration (GSA) (see 41 CFR 101-26.3), the Defense
Logistics Agency (see 41 CFR 101-26.6), the Department of Veterans
Affairs (see 41 CFR 101-26.704), and military inventory control
points.
6. Sixth, Mandatory Use Federal Supply Schedules (FSS) (see FAR
Subpart 8.4). See www.fss.gsa.gov. The GSA competes and maintains
all FSS.
a. Although FAR 8.002 lists mandatory FSS as a required supply
source, the GSA has not maintained a mandatory FSS since the
1990s.
16
b. GAO has reiterated that the current GSAs FSS are not
mandatory. See Murray-Benjamin Electric Company, LLP, B-
298481, Sept. 7, 2006; 2006 CPD 129. GAO denied a protest
holding that while the list of required sources found in FAR
8.002 places non-mandatory FSS contracts above commercial
sources in priority, it does not require an agency to order from
the FSS. 17
15
Effective September 28, 2006, the Javits-Wagner-ODay (JWOD) required source program changed its name
to AbilityOne. Some AbilityOne products can also be found on GSA's Federal Supply Schedules.
16
While FAR 8.002 still lists mandatory and optional schedules as separate priority sources, mandatory
schedules have not been in use by GSA since the mid-1990s. Today, all schedules are optional use, even
though FAR 8.002 still lists mandatory use FSS (Telephone Interview with Roger Waldron, Acting Senior
Procurement Executive, General Services Administration (Oct. 19, 2006)). See also notes 11 and 12, supra.
17
See Murray-Benjamin Electric Company, LLP, B-298481, Sept. 7, 2006; U.S. Comp. Gen. LEXIS 143, at
note 5: As explained by GSA, while agencies are encouraged to use the FSS, where an agency concludes that it
is in its best interests to meet its needs through an open-market procurement, it is free to do so. GSA Comments
at 1. MBE asserts that DLA did not make a best interests determination, but we are aware of no legal
requirement--and MBE cites none--that an agency do so. In any case, such a determination is implicit from the
record. DLA explains that this acquisition is for critical application items used on a critical weapons system--
nuclear power plants, weapons system code 21N--and will result in moving inventory control into the hands of
the contractor. Agency Report (AR) 28-29. For these reasons, DLA determined that it is necessary to make a
determination of best value among competing proposals. (Emphasis added).
9-14

7. Seventh, Optional Use Federal Supply Schedules (see FAR Subpart
8.4).
18
a. The GSAs interpretation of FAR 8.002 is that the optional
FSS schedules are a preferred source of supply for
Government agencies. . . . There are currently no mandatory
FSS, however.
b. The GSA FSS policy is that Government agencies should first
consider whether it can best fulfill its requirements through the
use of an FSS schedule contractor. Where possible, agencies
should generally use the FSS schedule in accordance with the
procedures set forth in FAR 8.401 et seq. See Murray-
Benjamin Electric Company, LLP, B-298481, Sept. 7, 2006; U
2006 CPD P 129.
8. Commercial sources of supplies (including educational and nonprofit
institutions). Once a Contracting Officer determines that the supply
requirement cannot be filled with a required source, then he/she may
compete the requirement via one of the three acquisition methods
(Simplified Acquisition Procedures, Sealed Bidding, Contracting by
Negotiation).
9. Statutory Sole Sources. In addition to the priority list for Required
Sources of Supplies and Services in FAR 8.002, agencies must procure
some types of supplies and services from statutory sole sources. These
required supply and services procurements include: Helium (FAR
Subpart 8.5), Printing Services and Related Supplies (FAR Subpart
8.8), and Leasing of Motor Vehicles (FAR Subpart 8.11)
10. Bottom Line on Required Sources of Supply. Due to the significant
restrictions on the use of FPI/UNICOR, the fact that there are no
longer any mandatory FSS, and the flexibility that the GAO has given
agencies in determining whether to use Optional FSS, contracting
offices should focus on whether the Committee for Purchase From
People Who Are Blind or Severely Disabled (Ability One/JWOD) can
meet their supply needs prior to competing an acquisition.
C. Required Sources of Services.
1. Agencies shall satisfy requirements for services in the descending
order of priority listed below:
18
See GSA website Welcome to GSA Schedules available at http://www.gsa.gov/portal/category/100615 for
an overview of Federal Supply Schedule policies and procedures.
9-15

a. Services which are on the Procurement List maintained by the
Committee for Purchase From People Who Are Blind or
Severely Disabled (see FAR Subpart 8.7);
19
b. Mandatory Federal Supply Schedules
20
(see FAR Subpart
8.4);
21
c. Optional use Federal Supply Schedules (see FAR Subpart 8.4);
d. Federal Prison Industries, Inc. (see FAR Subpart 8.6);
22
e. Commercial Sources of Services (including educational and
nonprofit institutions). Once a Contracting Officer determines
that the service requirement cannot be filled with a required
source,
23
then he/she may compete the requirement via one of
the three acquisition methods (Simplified Acquisitions, Sealed
Bidding, and Negotiations).
2. The same constraints apply to the priority list for Required Sources of
Services as discussed in section VI.B. for Required Sources of
Supplies.
3. Bottom Line on Required Sources of Services. Due to the significant
restrictions on the use of FPI/UNICOR, the fact that there are no
longer any mandatory FSS, and the flexibility that the GAO has given
agencies in determining whether to use Optional FSS, contracting
offices should focus on whether the Committee for Purchase From
People Who Are Blind or Severely Disabled (Ability One/JWOD) can
meet their services needs prior to competing an acquisition.
VII. PRE-REQUISITE: SMALL-BUSINESS SET-ASIDES
A. General Rule. Simplified acquisitions exceeding the micro-purchase
threshold but under the simplified acquisition threshold are reserved
exclusively for small business concerns. FAR 13.003.
1. Exceptions. In general, the set-aside requirement above does not apply
when:
19
AbilityOne provides both supplies and services to the federal government.
20
Although called the Federal Supply Schedule, the FSS includes services as well as supplies.
21
See supra note 15 (The GSA no longer maintains mandatory use FSS).
22
See supra Section VI.B.3. (Federal Prison Industries) (FPI/UNICOR is a qualified mandatory RSS.
Agencies may not meet their supply or service requirements via FPI unless the agency determines that FPI
provides the best value to the agency).
23
In addition to the priority list for Required Sources of Supplies and Services in FAR 8.002, agencies must
procure some types of supplies and services from statutory sole sources. These required supply and services
procurements include: Helium (FAR Subpart 8.5), Printing Services and Related Supplies (FAR Subpart 8.8),
and Leasing of Motor Vehicles (FAR Subpart 8.11).
9-16

a. The small business set-aside requirement does not apply to
purchases from required sources of supply under FAR Part 8.
FAR 19.502-1(b).
b. Purchases occur outside the United States, its territories and
possessions, Puerto Rico, and the District of Columbia. FAR
19.000(b).
c. There is no reasonable expectation of obtaining quotations
from two or more responsible small business concerns that are
competitive in terms of market prices, quality, or delivery.
This is called the Rule of Two. FAR 19.502-2(b)(1).
However, there are small business programs that permit or
require awards to small business even where the Rule of Two
is not met.
2. For a more complete discussion of small business set-asides, please
refer to the chapter on socio-economic policies.
VIII.COMPETITION REQUIREMENTS.
A. General Rules. FAR 13.104; FAR 13.106-1.
1. The Competition in Contracting Act of 1984 (CICA) exempts
simplified acquisition procedures from the requirement that agencies
obtain full and open competition. 10 U.S.C. 2304(g)(1); 41 U.S.C.
3301.
2. For simplified acquisitions, CICA requires only that agencies obtain
competition to the maximum extent practicable to obtain supplies
and services from the source whose offer is the most advantageous to
the government, considering the administrative cost of the purchase.
10 U.S.C. 2304(g)(3); 41 U.S.C. 3301, 111; FAR 13.104.
B. Defining "maximum extent practicable."
1. Agency must make reasonable efforts, consistent with efficiency and
economy, to give responsible sources the opportunity to compete.
a. FAR 13.104 no longer contains a provision that the solicitation
of three or more vendors is required to ensure competition to
the maximum extent practicable when using simplified
acquisition procedures.
9-17

(1) Contracting officers, however, should consider using
solicitation of at least three sources to promote
competition to the maximum extent practicable; and
(2) Whenever possible they should request quotations or
offers from two sources not included in the previous
solicitation.
b. If not providing access to notice through the single
government-wide point of entry, competition requirements
ordinarily can be obtained by soliciting quotes from sources
within the local trade area. FAR 13.104(b).
c. Vendors who ask to compete should be afforded a reasonable
opportunity to compete. Proper publication of a solicitation on
FEDBIZOPS will satisfy agencys obligation to encourage
maximum competition.
(1) PR Newswire Assn, LLC, B-400430, 26 Sept. 2008
(incumbent claimed no actual notice, GAO ruled post
on FEDBIZOPS put PR Newswire on constructive
notice); Optelec U.S. Inc., B-400349, B400349.2, 16
Oct. 2008 (Optelec found solicitation day before
proposals due, GAO held once advised solicitation
would be posted on FEDBIZOPS, it was Optelecs
responsibility to obtain it).
(2) Gateway Cable Co., B-223157, Sep. 22, 1986, 65
Comp. Gen. 854, 86-2 CPD 333 (agency failed to
satisfy competition to the maximum extent practicable
when it failed to solicit the protesting vendor, who
called the contracting officer 19 times in regards to an
acquisition requirement).
(3) While the maximum extent practicable standard can
generally be met through the solicitation of at least
three sources, an agency may not deliberately fail to
solicit a responsible source that has expressed interest
in competing without a reasonable basis for questioning
the sources ability to meet the agencys needs.
Solutions Lucid Group, LLC, B-400967, Comp. Gen.,
Apr. 2, 2009 (Vendor exclusion for use of non-domestic
products on prior purchase order unreasonable when
domestic requirement no longer applied to current
purchase); Military Agency Servs. Pty., Ltd., B-290414
et al., Aug. 1, 2002, 2002 CPD 130 at 7-8 (Deliberate
vendor exclusion from competition for a BPA order not
9-18

decided by GAO because Vendor unable to show it
would have had a substantial chance of award, but for
the agencys actions); Bosco Contracting, Inc., B-
270366, Mar. 4, 1996, 96-1 CPD 140 at 3-4
(Deliberate exclusion of incumbent from solicitation for
two-month interim services contract unreasonable
where incumbent asked to compete and incumbents
alleged poor past performance was unsupported by the
record).
d. Contracting officers should generally solicit the incumbent.
(1) An agency's failure to solicit an incumbent, however, is
not an automatic violation of the requirement to
promote competition to the maximum extent
practicable.
(2) Rather, the determinative question is whether an
agency, that deliberately excluded a firm which
expressed an interest in competing, acted reasonably.
PR Newswire Assn, LLC, B-400430, 26 Sept. 2008,
2008 CPD 178 (incumbent claimed no actual notice,
GAO ruled post on FEDBIZOPS put PR Newswire on
constructive notice).
C. Considerations for soliciting competition.
1. Contracting officers shall not:
a. solicit quotations based on personal preference (FAR
13.104(a)(1)); or
b. restrict solicitation to suppliers of well-known and widely
distributed makes or brands (FAR 13.104(a)(2)). An agency
should not include restrictive provisions, such as specifying a
particular manufacturer's product, unless it is absolutely
necessary to satisfy the agency's needs.
24
See American
Eurocopter Corporation, B-283700, Dec. 16, 1999, 99-2 CPD
110 (finding reasonable the solicitation for a Bell Helicopter
model 407); But see Delta International, Inc., B-284364.2, May
11, 2000, 2000-1 CPD 78 (agency could not justify how only
one type of x-ray system would meet its needs). See also, FAR
11.104.
24
FAR 13.106-3 and 13.501 outline file documentation requirements that explain the use of brand name
specifications or other circumstances that explain the absence of competition.
9-19

2. Before requesting quotes, FAR 13.106-1(a) requires the contracting
officer to consider:
a. The nature of the article or service to be purchased and whether
it is highly competitive and readily available in several makes
or brands, or is relatively noncompetitive;
b. The availability of an electronic commerce method that
employs widespread electronic public notice;
c. The urgency of the proposed purchase;
d. The dollar value of the proposed purchase; and
e. Past experience concerning specific dealers' prices.
3. Sole source Acquisitions (including Brand Name).
a. For items under the SAP threshold, an agency may limit a
Request For Quotes (RFQ) to a single source ONLY IF the
contacting officer has determined that only one source is
reasonably available (e.g., urgency, exclusive licensing
agreements, brand name, or industrial mobilization). FAR
13.106-1(b). A formal justification and approval (J&A) is not
required by the FAR, but FAR 13.106-3 does require the
explanation of the absence of competition.
b. For commercial items in excess of the SAP threshold, a formal
J&A is required pursuant to the requirements listed in FAR
13.501(a).
c. Agencies must furnish potential offerors a reasonable
opportunity to respond to the agency's notice of intent to award
on a sole source basis. See Jack Faucett Associates, Inc., B-
279347, June 3, 1998, 98-1 CPD 155 (unreasonable to issue
purchase order one day after providing FACNET notice of
intent to sole-source award); Information Ventures, Inc., B-
293541, Apr. 9, 2004, 2004 CPD 81 (1 1/2 business days
does not provide potential sources with a reasonable
opportunity to respond, particularly where the record does not
show a need for the short response period and the agency knew
of the requirement well in advance of issuing the notice).
Similarly, FAR 5.102(a)(6) requires publication of a brand
name justification.
4. Micro-purchases & Competition. FAR 13.202.
9-20

a. Competition is not required for a micro-purchase if the
contracting officer determines that the price is reasonable.
FAR 13.202(a)(2); Michael Ritschard, B-276820, Jul. 28,
1997, 97-2 CPD 32 (contracting officer properly sought
quotes from two of five known sources, and made award).
b. To the maximum extent practicable, micro-purchases shall be
distributed equitably among qualified suppliers. FAR
13.202(a)(1). See Grimms Orthopedic Supply & Repair, B-
231578, Sept. 19, 1988, 88-2 CPD 258 (agency properly
distributed orthopedic business based on a rotation list).
IX. SIMPLIFIED ACQUISITION METHOD OF CONTRACTING.
A. Policy. Authorized individuals shall make purchases in the simplified manner
that is most suitable, efficient, and economical based on the circumstances of
each acquisition. FAR 13.003(g). In some cases, agencies delegate authority
to use simplified acquisition procedures below the contracting officer to these
Authorized Individuals.
B. Request for Quotations Legal Formation of the contract.
1. In simplified acquisitions, the government solicits quotes. A quotation
is not an offer, and can't be accepted by the government to form a
binding contract. FAR 13.004(a); Eastman Kodak Co., B-271009,
May 8, 1996, 96-1 CPD 215 (contending that the cancellation was
unreasonable due to a lack of planning. GAO held that DOT properly
cancelled the solicitation after determining that: (1) the solicitation did
not meet its needs; and (2) more relaxed specifications would result in
more savings and competition. Accordingly, the protest was denied.).
2. Offer. After considering the quotes, if the government is interested, it
submits an order, which is a legal offer to buy supplies or services
under specified terms and conditions. A supplier creates a contract
when it accepts the governments order. C&M Mach. Prods., Inc.,
ASBCA No. 39635, 90-2 BCA 22,787 (bidders response to
purchase order proposing a new price was a counteroffer that the
government could accept or reject). See, Kingdomware Technologies,
B-407628, January, 2013, the agency is not required to remove all
uncertainty from the mind of every prospective vendor.
3. Acceptance. FAR 13.004(b). A contractor may accept a government
order by:
a. notifying the government, preferably in writing;
9-21

b. furnishing supplies or services; or
c. proceeding with work to the point where substantial
performance has occurred.
(1) When does substantial performance occur?
25
See the
case study following Cancellation of an RFQ infra.
(2) Sunshine Cordage Corp., ASBCA 38904, 90-1 BCA
22,382 at 112,471 (1989)(citing Klass Engineering,
Inc., ASBCA 22052, 78-2 BCA 13,236, at 64,716,
modified and affd on recon., 78-2 BCA 13,463. See
also, Tefft, Kelly and Motley, Inc., GSBCA 6562, 83-1
BCA 16,177, at 80,388 (1982) (teaching contractor
entitled to compensation for preparation expense
incurred before government terminated contract).
4. Cancellation of an RFQ. A contracting agency needs a reasonable
basis to support a decision to cancel an RFQ. Deva & Assoc. PC, B-
309972.3, Apr. 29, 2008, 2008 CPD 89 at. 3.
a. A reasonable basis to cancel exists when, for example, an
agency determines that a solicitation does not accurately reflect
its needs, or where there is a material increase in the services
needed to satisfy the agencys requirements. Logistics
Solutions Group, Inc., B-294604.7, B-294604.8, July 28, 2005,
2005 CPD 141 at 3.
b. A solicitation may be cancelled where, during the course of the
procurement, the item or services involved are discovered to be
on, or have been added to, the JWOD procurement list. Best
Foam Fabricators, Inc., B-259905.3, Jun. 16, 1995, 95-1 CPD
275 at 2 (Item added to the list on 1 January during the
procurement and agency properly canceled the procurement on
30 January when original awardee could not perform.) But see
OSC Solutions, Inc., B-401498, Sept. 14, 2009 (RFQ may not
be cancelled and a BPA sole-sourced to the Industries of the
Blind under the authority of the JWOD Act when an item is not
yet added to the JWOD procurement list).
c. Cancellation versus Termination. If acceptance of an order has
occurred, the agency must terminate the contract rather than
25
"Substantial performance" is a phrase used in construction or service contracts, which is synonymous with
"substantial completion." It is defined as performance short of full performance, but nevertheless good faith
performance in compliance with the contract except for minor deviations. RALPH C. NASH, ET AL., THE
GOVERNMENT CONTRACTS REFERENCE BOOK, at 555 (3d ed. 2007).
9-22

cancel it. Termination normally involves a monetary
settlement for the vendor.
Case Study: GSA solicited quotes for instructors to teach a four-week
acquisition course in Arlington, Virginia. GI, who was just one of several
vendors, sent a quote for $6800. GSA issued the purchase order to GI on
April 21. On May 11, GSA gave GI the course materials and GI began
reviewing them immediately. May 18, a losing vendor filed a protest with
GAO protesting the award to GI. On May 27, GSA canceled the purchase
order with GI. GAO dismissed the protest on 2 June after GSA stated it
canceled the order due to the use of defective evaluation criteria in the
selection of instructors. GI filed a T4C settlement proposal to recover
$3,849.20, based on an hourly teaching rate of $50.00 per hour. GI stated he
incurred 61 hours of preparation time plus overhead expenses. GSA paid GI a
total settlement of $425.00. GI appealed to the ASBCA.
Question: Did GI accept the governments purchase order by substantial
performance such that there was a binding contract?
At trial, the government requested dismissal arguing that GI had not
accepted the governments purchase order so no legally binding contract
existed. The ASBCA stated so long as the contractor does not ask to change
the terms of the contract after issuance of a purchase order, acceptance of an
offer occurs once the contractor commences substantial performance of the
order, which in turn creates a binding contract. In this case, the ASBCA
found that acceptance had occurred by examining the actions of both parties.
ASBCA stated that when the government provided GI the course materials
and he received and began reviewing them, acceptance had occurred. The
ASBCA also noted that by paying $425.00, the contracting officer had
correctly decided a binding contract existed (there could be no settlement if
there was no contract). The ASBCA eventually awarded GI a termination
settlement of $2,236.92. Giancola & Associates vs. GSA, GSBCA 12128,
Feb. 5, 1993.
C. Authority to Combine Methods of Contracting.
1. For acquisitions under the simplified acquisition threshold for other
than commercial items, authorized individuals may use any
appropriate combination of the procedures in FAR part 13 (simplified
acquisitions), Part 14 (sealed bidding), Part 15 (competitive
negotiations), Part 35 (research and development contracting), or Part
36 (construction and architect-engineer contracts). FAR 13.003(g)(1).
2. For acquisitions of commercial items under the CITP threshold,
authorized individuals shall make purchases using any appropriate
9-23

combination of FAR Part 12 (commercial items), Part 13 (simplified
acquisitions), Part 14 (sealed bidding), and Part 15 (competitive
negotiations). FAR 13.003(g)(2).
D. Evaluation Procedures & Criteria.
1. Evaluations must be conducted fairly and in accordance with the terms
of the solicitation. Kathryn Huddleston & Assocs., Ltd., B-289453,
Mar. 11, 2002, 2002 CPD 57; Finlen Complex Inc., B-288280, Oct.
10, 2001, 2001 CPD 167; Diebold, Inc., B-404823, Jun 2, 2011, it is
a fundamental principle of government procurement that competition
must be conducted on an equal basis, that is, offerors must be treated
equally and be provided with a common basis for the preparation of
their proposals. When using simplified acquisitions, agencies must
still follow stated evaluation criteria. Low & Associates, Inc., B-
297444.2, Apr. 13, 2006, 2006 CPD 76 (LAI successfully protested
Natl Science Foundation award claiming agency waived material
solicitation requirements).
a. Sea Box, Inc., B-105711.2, Mar. 19, 2012 CPD 156 (GAO
will review allegations of improper agency actions in
conducting simplified acquisitions to ensure that the
procurements are conducted consistent with a concern for fair
and equitable competition and with the terms of the
solicitation.) Also see, Novex Enterprises, B-407914, April 5, 2013,
(The protester argues that it was improper to consider PTIs
shorter delivery schedule, this argument has no merit because the
solicitation specifically provided for the consideration of both
price and non-price factors in the award decision, and also stated
that one of the non-price factors was offered delivery).
a. Agency unreasonably evaluated the protesters bid of an equal
product under a brand name or equal solicitation conducted
under simplified acquisition procedures where the solicitation
lacked salient characteristics and the equal product was not
shown to be significantly different from the brand name
product. See, Veterans Healthcare Supply Solutions, Inc., B-
407223.2, December 13, 2012
Evaluation Procedures. The contracting officer has broad discretion in
fashioning suitable evaluation criteria. The procedures in FAR Part 14
(sealed bidding) and Part 15 (competitive negotiations) are NOT
mandatory. At the contracting officers discretion, one or more, but
not necessarily all, of the evaluation procedures in FAR Part 14 or 15
may be used. FAR 13.106-2(b). See Cromartie and Breakfield, B-
279859, Jul. 27, 1998, 98-2 CPD 32 (upholding rejection of quote
using Part 14 procedures for suspected mistake). When the
9-24

contracting officer uses procedures outlined in Parts 14 or 15, GAO
will evaluate the governments conduct in light of the standards
outlined in those Parts. See ERIE Strayer Company, B-406131, Feb.
21, 2012 (sustaining a protest when the government had
communications with one contractor that amounted to discussions
under Part 15, but did not have communications or discussions with
the protestor; Although an agency is not required to conduct
discussions under simplified acquisition procedures, where an agency
avails itself of negotiated procurement procedures, the agency should
fairly and reasonably treat offerors in the conduct of those
procedures.). See Tipton Textile Rental, Inc., B-406372, May 9, 2012,
(GAO sustained the protest because once the agency opened
discussions, the discussions had to be meaningful and they were not.)
2. Contracting officers shall consider all quotations that are timely
received. FAR 13.003(h)(3).
a. The Government can solicit and receive new quotations any
time before contract formation, unless a request for quotations
establishes a firm closing date. Technology Advancement
Group, B-238273, May 1, 1990, 90-1 CPD
439; ATF Constr. Co., Inc., B-260829, July 18, 1995,
95-2 CPD 29.
b. When a purchase order has been issued prior to receipt of a
quote, the agency's decision not to consider the quote is
unobjectionable. Comspace Corp. B-274037, Nov. 14, 1996,
96-2 CPD 186.
c. Agency was not obligated to consider vendors quote where the
record shows that the agency did not receive written
verification of information related to the quote and the vendor
was advised that failure to respond would constitute
withdrawal of quote. B&S Transport, Inc., B-407589, Dec. 27
2012.
3. If a solicitation contains no evaluation factors other than price, price is
the sole evaluation criterion. AMBAC International, B-234281, May
23, 1989, 89-1 CPD 492 (price was the only term solicited from each
participating contractor).
4. If using price and other factors, ensure quotes can be evaluated in an
efficient and minimally burdensome fashion. Formal evaluation plans,
discussions, and scoring of quotes are not required.
26
Contracting
officers may conduct comparative evaluations of offers. FAR 13.106-
26
Some documentation in the contract file to support the award decision is still required (see FAR 13.106-3 and
documentation discussion infra).
9-25

2(b)(3); See United Marine International LLC, B-281512, Feb. 22,
1999, 99-1 CPD 44 (discussions not required).
5. Evaluation of other factors, such as past performance:
a. Does not require the creation or existence of a formal data
base; and
b. May be based on information such as the contracting officer's
knowledge of, and previous experience with, the supply or
service being acquired, customer surveys, or other reasonable
basis. FAR 13.106-2(b)(3); See MAC's General Contractor, B-
276755, July 24, 1997, 97-2 CPD 29 (reasonable to use
protester's default termination under a prior contract as basis
for selecting a higher quote for award); Environmental
Tectonics Corp., B-280573.2, Dec. 1, 1998, 98-2 CPD 140
(Navy properly considered evidence of past performance from
sources not listed in vendor's quotation).
E. Award and Documentation. FAR 13.106-3
1. Basis of Award. Regardless of the method used to solicit quotes, the
contracting officer shall notify potential quoters of the basis on which
award will be made (price alone or price and other factors, e.g., past
performance and quality). Contracting officers are encouraged to use
best value. FAR 13.106-1(a)(2). Notice to unsuccessful vendors shall
be provided if requested. FAR 13.106-3(c) and (d).
2. Price Reasonableness. The contracting officer must determine that a
price is fair and reasonable before making a contract award. The
protester challenges the agencys price realism evaluation, arguing that
CWSs price is so low that this should have raised significant concerns
with CWSs understanding of the PWS. Protestor generally disagrees
with the agencys price realism judgment and argues that the agency
should have documented more detailed analysis, the protester does not
show that the agency acted unreasonably - Protest Denied. See, Preferred
Systems Solutions, Inc., B-407234; B-407234.2, November 30, 2012.
3. Documentation.
a. Documentation should be kept to a minimum. FAR 13.106-
3(b) provides examples of the types of information that should
be recorded.
27
For oral solicitations, the contracting office should generally maintain records of oral price quotations,
including the names of the suppliers contacted and the prices and other terms and conditions quoted by each.
For written solicitations, the contracting office should generally maintain notes or abstracts to show prices,
9-26
27

b. The contracting officer must include a statement in the contract
file supporting the award decision if other than price-related
factors were considered in selecting the supplier. FAR 13.106-
3(b)(3)(ii); See Universal Building Maintenance, Inc, B-
282456, Jul. 15, 1999, 99-2 CPD 32 (protest sustained
because contracting officer failed to document award selection,
and FAR Parts 12 and 13 required some explanation of the
award decision). See also, Resource Dimensions, LLC, B-
404536, Feb. 24, 2011 (sustaining a protest where an agency
used SAP and oral presentations, but the agency failed to
provide adequate supporting rationale in the record for GAO to
conclude the agency acted reasonably).
F. Authority to Innovate. Contracting Officers shall use innovative approaches,
to the maximum extent practicable, in awarding contracts using simplified
acquisition procedures. FAR 13.003(h)(4).
1. Example of an Innovative Approach: Reverse auctions. Prospective
contractors bid down the price in real time to compete to provide the
product sought by the government. See Thomas F. Burke, Online
Reverse Auctions, West Group Briefing Papers (Oct. 2000).
Tremendous growth potential, yet no statutory or regulatory guidance.
a. There are few reported GAO cases dealing directly with
reverse auctions: See, e.g., Royal Hawaiian Movers, B-
288653, Oct. 31, 2001, 2001 CPD 182; Pacific Island
Movers, B-287643.2, July 19, 2001, 2001 CPD 126.
b. In general, the use of reverse auctions has been sustained by
GAO. See MTB Group, B-295463, Feb. 23, 2005 (concluding
that procurement using reverse auction format is permissible
because agency is conducting reverse auction under simplified
acquisition procedures which encourage use of innovative
procedures). There has been some recent criticism of reverse
auctions however in that: they typically require contractors to
disclose their prices to each other (contractors are informed
whether they are the current low bidder, but dont see the name
of the low-bidding contractor or the actual bid price until close
of the auction); the pricing competition saves money for the
government but reduces prices to levels that small business
cannot afford; and reverse auctions fail to take into account
past performance and other non-price factors that help the
government achieve the best value on a specific procurement.
delivery, references to printed price lists used, the supplier or suppliers contacted, and other pertinent data. FAR
13.106-3(b)(1) and (b)(2).
9-27

c. Additionally, the GAO has held that internet failure may not
excuse late delivery of contractors proposal. Performance
Construction, Inc., B-286192, Oct. 30, 2000, 2000 CPD. 180.
This rule could affect reverse auctions, which are exclusively
conducted using electronic forums (see, e.g.,
www.feddbid.com FedBid is a commercial vendor that hosts
many of the reverse auctions used by federal agencies).
X. PUBLICIZING AGENCY CONTRACT ACTIONS. FAR PART 5.
A. Policy. Prior to awarding government contracts, agencies must comply with
the publicizing requirements of FAR Part 5.
28
B. Exception for contract actions outside the United States. The contracting
officer need not submit a notice to the government point of entry (GPE) if the
proposed contract action is by a defense agency and the proposed contract
action will be made and performed outside the United States and its outlying
areas, and only local sources will be solicited. This exception does NOT
apply to proposed contract actions covered by the World Trade Organization
Government Procurement Agreement or a Free Trade Agreement. FAR
5.202(a)(12).
C. Definitions.
1. Publicizing means to disseminate information in a public forum so that
potential vendors are informed of the agencys need, and the agencys
proposed contract action. As the value of the anticipated acquisition
increases, agencies have to meet more stringent requirements to ensure
the proposed contract action is disseminated to the public.
2. Posting is a limited form of publicizing where a contracting officer
informs the public of a proposed contract action by displaying a
summary of the anticipated solicitation (a synopsis), or displaying the
actual solicitation, in a public place (usually a contract action display
board outside the contracting office), or by an equivalent electronic
means (usually a contracting office webpage).
3. A synopsis is a notice to the public which summarizes the anticipated
solicitation. At a minimum, a synopsis must include: a clear and
concise description of the supplies or services that the agency needs,
the description must not be unnecessarily restrictive of competition,
and the description should allow prospective offerors to make an
informed business judgment as to whether they should seek more
28
See infra, Appendix B: Publicizing and Synopsis Requirements for Government Procurements (containing a
chart that summarizes publicizing and synopsis requirements for all methods of acquisitions depending on the
value of the procurement).
9-28

information (a copy of the solicitation) and/or offer to fulfill the
agency need.
29
4. A solicitation means any request to submit offers or quotations to the
Government. Solicitations under sealed bid procedures are called
invitations for bids or IFB. Solicitations under negotiated
procedures are called requests for proposals or RFP. Solicitations
under simplified acquisition procedures may require submission of
either a quotation or an offer (FAR 2.101), but most frequently take
the form of a request for quotation or RFQ.
D. Publicizing Requirements. Contracting officers must publicize proposed
contract actions as follows:
1. For proposed contract actions expected to exceed the Simplified
Acquisitions Threshold (SAT), agencies must synopsize on the
30 31
Government-wide Point of Entry (GPE) for at least 15 days, and
32 33
then issue a solicitation and allow at least 30 days to respond.
2. For proposed contract actions expected to exceed $25,000 but less than
the Simplified Acquisitions Threshold (SAT), agencies must synopsize
on the GPE for at least 15 days,
34
and then issue a solicitation and
allow a reasonable opportunity to respond.
35
This can be less than
30 days.
3. For proposed contract actions expected to exceed $15,000, but not
expected to exceed $25,000, agencies must post (displayed in a public
place or by an appropriate and equivalent electronic means), a
29
FAR 5.207(c).
30
The GPE is available online at the Federal Business Opportunities website, available at www.fbo.gov.
31
FAR 5.203(a).
32
FAR 5.101(a)(1) and 5.203(c).
33
A November 24, 2010 DPAP memo (Improving Competition in Defense Procurements) and an April 27,
2011 memo amplifying the original memo, lays out additional requirements in certain cases above the SAT
when only one offer is received. The guidance applies to all competitive procurements of supplies and
services above the SAT including commercial items and construction. Specifically, it covers procurements
conducted under FAR parts/subparts 8.4 (Federal Supply Schedules), 12 (Commercial Items), 13.5
(Commercial Items Test Program), 14 (Sealed Bidding), 15 (Contracting by Negotiation), and 16.5 (Indefinite
Delivery Contracts). The memos provide that: unless an exception applies or a waiver is granted, [1] if the
solicitation was advertised for fewer than 30 days and only one offer is received, then the contracting officer
shall cancel the solicitation and resolicit for an additional period of at least 30 days; or [2] if a solicitation
allowed at least 30 days for receipt of offers and only one offer was received, then the contracting officer shall
not depend on the standard at FAR 15.403-1(c)(1)(ii) (expectation of adequate price competition) in
determining price to be fair and reasonable, instead using FAR 15.404-1 (price and cost analysis) to make that
determination. Authority to waive this requirement has been delegated to the HCA, and can be further
delegated no lower than one level above the contracting officer. Memos available at
http://www.acq.osd.mil/dpap/policy/policyvault/USA002080-11-DPAP.pdf. Guidance in these memos will be
incorporated into the DFARS.
34
The GPE is available online at the Federal Business Opportunities website, available at www.fbo.gov.
35
FAR 5.201(b)(1)(i) and 5.203(b).
9-29

synopsis of the solicitation, or the actual solicitation, for at least 10
days.
36
If a contracting officer posts a synopsis, then they must allow
a reasonable opportunity to respond after issuing the solicitation.
37
a. The synopsis must include a statement that all responsible
sources may submit a response, which, if timely received, must
be considered by the agency.
b. The synopsis must be posted not later than the date the
solicitation is issued, and must remain posted for at least 10
days or until after quotations have been opened, whichever is
later.
c. If solicitations are posted instead of a synopsis, the contracting
officer may employ various methods of satisfying the
description of supplies or services required by FAR 5.207(c).
38
d. Exception to Posting Requirement. If an agency issues an oral
solicitation (as opposed to a written solicitation), it needs not
comply with the public posting/display requirements of FAR
5.101(a)(2).
39
Oral solicitations, however, should only be used
for non-complex requirements.
4. For proposed contract actions less than $15,000 and/or the micro-
purchase threshold, there are no required publicizing requirements.
5. When acquiring commercial items whose value exceeds $25,000, the
contracting officer may publicize the agency need, at his/her
discretion, in one of two ways:
a. Combined Synopsis/Solicitation: Agencies may issue a
combined synopsis/solicitation on the GPE in accordance with
the procedures detailed at FAR 12.603. The agency issues a
combined synopsis/solicitation and then provides a reasonable
response time. See FAR 5.203(a)(2), FAR 12.603(a) and
12.603(c)(3).
b. Shortened Synopsis/Solicitation: Agencies may issue a
separate synopsis and solicitation on the GPE. The synopsis
must remain on the GPE for a reasonable time period, which
may be less than 15 days.
40
The agency should then issue the
36
FAR 5.101(a)(2).
37
Id.
38
FAR 5.101(a)(2)(i) (For example, the contracting officer may meet the requirements of 5.207(c) by
stamping the solicitation, by a cover sheet to the solicitation, or by placing a general statement in the display
room.).
39
FAR 5.101(a)(2)(ii).
40
FAR 5.203(a)(2).
9-30

solicitation on the GPE, providing potential vendors a
reasonable opportunity to respond to the solicitation, which
may be less than 30 days.
41
c. Reasonable Response Time. Contracting officers shall establish
deadlines for the submission of responses to solicitations that
afford suppliers a reasonable period of time to respond. FAR
13.003(h)(2). See American Artisan Productions, Inc., B-
281409, Dec. 21, 1998, 98-2 CPD 155 (finding fifteen day
response period reasonable); Military Agency Services Pty.,
Ltd., B-290414 et al., Aug. 1, 2002 (finding near immediate
response period (24 hours) reasonable where publication
requirements did not apply overseas, only prices were
requested, all requested sources timely submitted quotes and
due to security concerns, agency routinely received and filled
requests for picket boat services within a 72 hour period). But
see KPMG Consulting, B-290716, B-290716.2, Sept. 23, 2002,
2002 CPD 196 (agency may, if not prohibited by solicitation,
consider a late quote).
E. Methods of soliciting quotes.
1. Oral. FAR 13.106-1(c).
a. Contracting officers shall solicit quotes orally to the maximum
extent practicable, if:
(1) The acquisition does not exceed the simplified
acquisition threshold;
(2) It is more efficient than soliciting through available
electronic commerce alternatives; and
(3) Notice is not required under FAR 5.101.
b. It may not be practicable for actions exceeding $30,000 unless
covered by an exception in FAR 5.202.
c. The contracting officer shall issue a written solicitation for
construction requirements exceeding $2,000.
FAR 13.106-1(d).
2. Electronic Commerce.
41
See infra, Appendix A: Publicizing and Synopsis Requirements for Government Procurements (containing a
chart that summarizes publicizing and synopsis requirements for all methods of acquisitions depending on the
value of the procurement).
9-31

a. Agencies shall use electronic commerce when practicable and
cost-effective. FAR 13.003(f); FAR Subpart 4.5.
b. Drawings and lengthy specifications can be provided off-line in
hard copy or through other appropriate means. FAR 13.003(f).
c. This is an exploding growth area involving numerous e-
government initiatives.
(1) In December 2002, the President established an e-
government office within the White House Office of
Management and Budget. E-Government Act of 2002,
Pub. L. No. 107-347.
(2) On May 12, 2004, the Office of Federal Procurement
Policy issued a memorandum on the subject of
Utilization of Commercially Available Online
Procurement Services, which encouraged agencies to
take advantage of these services for the acquisition of
commercial items, including goods and services.
(3) Electronic Signatures in federal procurement. 65 Fed.
Reg. 65,698 (Nov. 1, 2000) (see FAR 2.101 and 4.502).
(4) Effective 1 October 2001, mandatory single point of
electronic access to government-wide procurement
opportunities. See www.fedbizopps.gov.
(5) Treasury Department policy on electronic transactions
in federal payments and collections. See
www.contracts.ogc.doc.gov/cld/ecomm/66fr394.htm.
(6) Agencies can use certified e-mail from U.S. Postal
Service. See www.fedtechnology.com (Jan. 23, 2001
issue).
(7) GSA on-line property auction. See
www.govexec.com/dailyfed/0101/011801h1.htm.
(8) Section 508 of the Rehabilitation Act of 1973. As of
June 25, 2001, government contracts awarded for
electronic and information technology (EIT) must
contain technology that is accessible to disabled federal
employees and disabled members of the public (508
Compliant). 66 Fed. Reg. 20,894 (Apr. 25, 2001); see
also FAR 39.2.
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(9) See OMB Office of E-Government & Information
Technology, for more information and current policies
(available at http://www.whitehouse.gov/omb/e-gov).
3. Written. FAR 13.106-1(d).
a. Contracting officers shall issue a written solicitation for
construction requirements exceeding $2,000.
b. If obtaining electronic or oral quotations is uneconomical,
contracting officers should issue paper solicitations for contract
actions likely to exceed $30,000.
XI. PURCHASING TECHNIQUES
A. General. There are four basic simplified acquisition options for procuring
items: Purchase Orders (FAR 13.302 and 13.306); Blanket Purchase
Agreements (FAR 13.303); Imprest Funds (FAR 13.305); and
Governmentwide Commercial Purchase Card (government credit card) (FAR
13.301).
B. Purchase Orders. FAR 13.302.
1. Definition. A purchase order is a government offer to buy certain
supplies, services, or construction, from commercial sources, upon
specified terms and conditions. FAR 13.004. A purchase order is
different than a delivery order, which is placed against an established
contract (e.g. a delivery order for supplies might be placed against an
existing indefinite delivery type contract; a task order is used to order
services from and indefinite delivery contract).
2. Forms. FAR 13.307.
a. SF 1449, Solicitation/Contract/Order.
(1) The SF 1449 is a multipurpose form used for negotiated
purchases of supplies or services, delivery or task
orders, inspection and receiving reports, and invoices.
(2) Contracting officers use this form for purchases of
commercial items. Per DFARS 213.307, if SF 1449 is
not used, DD Form 1155 (Order for Supplies or
Services) should be used. FAR 13.307 and FAR
12.204.
(3) Except when quotations are solicited electronically or
orally, the SF 1449, SF 18, or an agency automated
form is used to request quotations.
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b. SF 44 Purchase Order Invoice Voucher. This is a
multipurpose pocket-size purchase order form designed
primarily for on-the-spot, over-the-counter purchase of
supplies and nonpersonal services while away from the
purchasing office or at isolated activities. FAR 13.306(a)(1).
Due to the increased use and acceptance of the
Governmentwide Commercial Purchase Card, the use of the
SF44 within DoD is typically limited to purchases of: fuel and
oil; overseas transactions in support of a contingency
environment; and purchases in support of certain intelligence
activities. DFARS 213.306(a)(1).
(1) Because the SF 44 is used only for on-the-spot
purchases of supplies or services that are immediately
available, no clauses are used with this form. Properly
authorized field ordering officers
42
may also use the
SF44, but only up to the micro-purchase threshold.
(2) This form may be used only if all of the following
conditions are satisfied:
(a) The amount of the purchase is at or below the
micro-purchase threshold, except for purchases
made under unusual and compelling urgency or
in support of contingency operations. Agencies
may establish higher dollar limitations for
specific activities or items;
(b) The supplies or services are immediately
available;
(c) One delivery and one payment will be made;
AND
(d) Its use is determined to be more economical and
efficient than use of other simplified acquisition
procedures.
3. General Rules for Purchase Orders.
a. Purchase Orders are generally issued on a fixed price basis.
FAR 13.302-1(a). However, the FAR does provide guidelines
for an unpriced purchase order method in FAR 13.302-2.
42
See also, Handbook 09-16, Field Ordering Officer and Paying Agent TTPs, available at
http://usacac.army.mil/cac2/call/docs/09-16/09-16.pdf.
9-34

b. FAR 12.207 governs contract types for the acquisition of
commercial items.
c. Purchase orders shall:
(1) Specify the quantity of supplies or scope of services
ordered.
(2) Contain a determinable date by which delivery or
performance is required.
(3) Provide for inspection as prescribed in FAR Part 46.
Generally, inspection and acceptance should be at
destination.
(4) Specify F.O.B. destination for supplies within the
continental United States unless there are valid reasons
to the contrary. FAR 13.302-1(b).
4. Unpriced Purchase Orders. FAR 13.302-2.
a. An unpriced purchase order is an order for supplies or services
where the price is not established when the order is issued. A
realistic monetary limitation, either for each line item or for the
total order, shall be placed on each unpriced purchase order.
b. It may be used only when it is impractical to obtain pricing in
advance AND the purchase is for
(1) Repairs to equipment requiring disassembly to
determine the nature and extent of repairs;
(2) Material available from only one source and for which
cost cannot be readily established; OR
(3) Supplies or services for which prices are known to be
competitive, but exact prices are not known (e.g.,
miscellaneous repair parts, maintenance agreements).
5. Termination or cancellation of purchase orders. FAR 13.302-4.
a. The government may withdraw, amend, or cancel an order at
any time before acceptance. See Alsace Industrial, Inc.,
ASBCA No. 51708, 99-1 BCA 30,220 (holding that the
governments offer under the unilateral purchase order lapsed
by its own terms when Alsace failed to deliver on time);
Master Research & Mfg., Inc., ASBCA No. 46341, 94-2 BCA
26,747.
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b. If the contractor has not accepted a purchase order in writing,
the contracting officer may notify the contractor in writing,
and:
(1) Cancel the purchase order, if the contractor accepts the
cancellation; or
(2) Process the termination action if the contractor does not
accept the cancellation or claims that it incurred costs
as a result of beginning performance. But see Rex Sys.,
Inc., ASBCA No. 45301, 93-3 BCA 26,065
(contractor's substantial performance only required
government to keep its unilateral purchase order offer
open until the delivery date, after which the government
could cancel when goods were not timely delivered).
c. Once the contractor accepts a purchase order in writing, the
government cannot cancel it; the contracting officer must
terminate the contract in accordance with:
(1) FAR 12.403(d) and 52.212-4(l) for commercial items;
or
(2) FAR Part 49 and 52.213-4 for other than commercial
items.
C. Blanket Purchase Agreements. FAR 13.303.
1. Definition. A blanket purchase agreement (BPA) is a simplified
method of filling anticipated repetitive needs for supplies or services
by establishing charge accounts with qualified sources of supply.
FAR 13.303-1(a).
a. A BPA is not a contract. The actual contract is not formed
until an order is issued or the basic agreement is incorporated
into a new contract by reference. Zhengxing v. U.S, 71 Fed.
Cl. 732 (2006)(discussing that it is well settled that a BPA is
not a contract); Modern Systems Technology Corp. v. United
States, 24 Cl.Ct. 360 (1991) (Judge Bruggink provides
comprehensive analysis of legal effect of a BPA in granting
summary judgment to Postal Service in breach claim);
Envirosolve, LLC, B-294974.4, June 8, 2005, 2005 CPD 106
(for a summary of the law surrounding BPAs); Prod.
Packaging, ASBCA No. 53662, 03-2 BCA 32,388 (ASBCA
2003)(stating it is well established that a BPA is not a
contract. Rather, a BPA is nothing more than an agreement of
terms by which the government could purchase.).
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b. BPAs may be issued without a commitment of funds; however,
a commitment and an obligation of funds must separately
support each order placed under a BPA.
c. Blanket purchase agreements should include the maximum
possible discounts, allow for adequate documentation of
individual transactions, and provide for periodic billing. FAR
13.303-2(d).
d. Since a BPA is not a contract, there is no established
jurisdiction under the Contract Disputes Act (CDA).
Zhengxing v. U.S., 71 Fed. Cl. 732, 739 (2006); Julian
Freeman, ASBCA No. 46675, 94-3 BCA at 135,906.
2. Limits on BPA usage.
a. The use of a BPA does not justify purchasing from only one
source or avoiding small business set-asides. FAR 13.303-
5(c).
b. If there is an insufficient number of BPAs to ensure maximum
practicable competition for a particular purchase, the
contracting officer must solicit from other sources or create
additional BPAs. FAR 13.303-5(d). Compare Logan, LLC, B-
294974.6, Dec. 1, 2006, 2006 CPD 188 (There is no
requirement that an agency conduct further competition among
the BPA holders in connection with each individual purchase
order subsequently issued under the BPAs, when the BPAs
were originally competitively established).
c. A BPA may be properly established when:
(1) There is a wide variety of items in a broad class of
supplies and services that are generally purchased, but
the exact items, quantities, and delivery requirements
are not known in advance and may vary considerably.
(2) There is a need to provide commercial sources of
supply for one or more offices or projects that do not
have or need authority to purchase otherwise.
(3) Use of BPAs would avoid the writing of numerous
purchase orders.
(4) There is no existing requirements contract for the same
supply or service that the contracting activity is legally
obligated to use.
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3. Establishment of BPAs. FAR 13.303-2(b-c).
a. After determining a BPA to be advantageous, contracting
officers shall:
(1) Establish the parameters of the BPA. Will the
agreement be limited to individually identified items, or
will it merely identify broad commodity groups or
classes of goods and services?
(2) Consider quality suppliers who have provided
numerous purchases at or below the simplified
acquisition threshold.
b. BPAs may be established with:
(1) More than one supplier for goods and services of the
same type to provide maximum practicable
competition.
(2) A single source from which numerous individual
purchases at or below the simplified acquisition
threshold will likely be made. This may be a useful
tool in a contingency operation where vendor choices
may be limited, and contract personnel can negotiate
the terms for subsequent orders in advance of, or
concurrent with, a deployment.
(3) The FAR authorizes the creation of BPAs under the
Federal Supply Schedule (FSS) if not inconsistent with
the terms of the applicable schedule contract. FAR
13.303-2(c)(3).
43
(a) FAR 8.405-3 provides detailed guidance for
creating a BPA under the FSS. Among other
things, it provides:
(i) Ordering activities shall establish BPAs
to fill repetitive needs or supplies and
services with the schedule contractor(s)
that can provide the supply or service
that represents the best value;
(ii) Ordering activities may consider factors
then price when determining best value
(such as past performance, special
43
See FAR 8.405-3 for detailed guidance on establishing BPAs under Federal Supply Schedule contracts.
9-38

features, warranty considerations,
delivery terms, environmental concerns,
etc.);
(iii) Ordering offices shall, to the maximum
extent practicable, give preference to
establishing multiple-award BPAs rather
than single-award BPAs. FAR 8.405-
3(b) provides additional guidance for
awarding BPAs pursuant to a
competitive process. When single award
BPAs are appropriate, FAR 8.405-
3(a)(3) provides additional limitations
and guidance;
(iv) BPAs should address the frequency of
ordering and invoicing, discounts, and
delivery locations and times.
(v) Ordering offices should specify the
procedures for placing orders or calls
against a BPA.
(b) GSA provides information regarding BPAs and
GSA schedules and a sample BPA format for
agencies to use. See Appendix B (also available
at http://www.gsa.gov/portal/content/199353).
(c) Benefits of establishing BPAs with a FSS
contractor.
(i) It can reduce costs. Agencies can seek
further price reductions from the FSS
contract price.
(ii) It can streamline the ordering process. A
study of the FSS process revealed that it
was faster to place an order against a
BPA than it was to place an order under
a FSS.
(iii) Purchases against BPAs established
under GSA multiple award schedule
contracts can exceed the simplified
acquisition threshold and the $6,500,000
limit of FAR 13.5. FAR 13.303-5(b)(1).
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4. Review of BPAs. The contracting officer who entered into the BPA
shall (FAR 13.303-6):
a. ensure it is reviewed at least annually and updated if necessary;
b. maintain awareness in market conditions, sources of supply,
and other pertinent factors that warrant new arrangements or
modifications of existing arrangements; and
c. review a sufficient random sample of orders at least annually to
make sure authorized procedures are being followed.
D. Imprest Funds. FAR Part 13.305; DFARS 213.305.
1. Definition. An imprest fund is a cash fund of a fixed amount
established by an advance of funds, without charge to an
appropriation, from an agency finance or disbursing officer to a duly
appointed cashier, for disbursement as needed from time to time in
making payment in cash for relatively small amounts. FAR 13.001.
2. DOD Policy. DOD does not support the use of cash payments from
imprest funds. This policy is based, in part, on the mandatory
electronic funds transfer requirements of the Debt Collection
Improvement Act of 1996 (Pub. L. 104-134). DFARS 213.305-1(1).
3. DOD Use.
a. Use of imprest funds must comply with the conditions stated in
the DOD Financial Management Regulation (DoD FMR),
44
the
Treasury Financial Manual,
45
FAR 13.305, and DFARS
213.305.
b. On a very limited basis, installation commanders and
commanders of other activities with contracting authority may
be granted authority to establish imprest funds. DFARS
213.305-3(d)(i). Approval is required from the Director for
Financial Commerce, Office of the Deputy Chief Financial
Officer, Office of the Under Secretary of Defense
(Comptroller). DFARS 213.305-3(d)(ii).
c. The DoD FMR explains that Imprest funds are generally not
authorized for DoD activities. Exceptions are allowed for
contingency and classified operations. Submit specific requests
for exception in accordance with Chapter 1 [of DoD FMR, Vol.
44
DOD 7000.14-R, Volume 5, Chapter 2, Disbursing Offices, Officers, and Agents (see para. 0204, discussing
Imprest Funds specifically).
45
TFM, Vol.1, Part 4, Chapter 3000, section 3020.
9-40

5]. Include adequate justification and demonstrate that the use
of a government purchase card, third party draft, purchase card
convenience check, government travel card, or other
reasonable alternatives are not feasible for the specific
situation. DoD FMR Vol. 5, Chapter 2, para. 020402.
d. When specifically authorized, DFARS 213.305-3(d)(iii),
provides that imprest funds can be used without further
approval for:
(1) Overseas transactions at or below the micro-purchase
threshold in support of a contingency operation as
defined in 10 U.S.C. 101(a)(13) or a humanitarian or
peacekeeping operation as defined in 10 U.S.C.
2302(7); and
(2) Classified transactions.
e. The DoD FMR provides additional limitations on the use of,
and safeguarding of imprest funds on the rare occasions that
they are authorized. See generally, DoD FMR Vol. 5, Chapter
2, para. 0204.
E. Government-wide Commercial Purchase Card. FAR 13.301; DFARS
213.270; DFARS 213.301.
1. Purpose. The government-wide commercial purchase card (GCPC or
GPC) is a government-managed charge card used by specific
authorized individuals to make purchases on behalf of the government.
Like any other contract, purchases made with the GPC obligate
appropriated funds. The GPC is authorized for use in making and/or
paying for purchases of supplies, services, or construction.
46
DOD
contracting officers must use the card for all acquisitions at or below
$3,000 unless a specific exception applies. DFARS 213.270.
2. Use. Agencies shall use the GPC and electronic purchasing techniques
to the maximum extent practicable in conducting simplified
acquisitions. FAR 13.003(e).
3. Implementation.
a. Currently, the General Services Administration (GSA) runs this
initiative through the SmartPay purchase charge card program.
46
DODs purchase card limit is $25,000 if the criteria in DFARS 213.301(2) are met. DFARS 213.301(3)
permits a contracting officer supporting a contingency, humanitarian, or peacekeeping operation to make
purchases that exceed the micro-purchase threshold but do not exceed the SAT so long as other stated criteria
are met.
9-41

Information on this program can be found at
https://smartpay.gsa.gov/program-coordinators/card-basics
(last visited June 2012).
b. Agencies using government-wide commercial purchase cards
shall establish procedures for use and control of the card. FAR
13.301(b). Procedures and purchasing authority differ among
agencies (i.e., AFARS 5113.202, 5113.270).
c. Agencies must have effective training programs in place to
avoid card abuses. For example, cardholders may be bypassing
required sources of supply. See Memorandum, Administrator
of the Office of Federal Procurement Policy, to Agency Senior
Procurement executives, subject: Applicability of the Javits-
Wagner-O'Day Program for Micro purchases (Feb. 16, 1999)
(clarifies that JWOD's status as a priority source under FAR
8.7 applies to micro purchases).
d. A new Army SOP was published on 3 May 2013 and
supersedes policy guidance in the 2002 SOP and in AR 715-
XX. The new SOP has been added to the AFARS as Appendix
EE (available at http://farsite.hill.af.mil/vfafara.htm).
4. Required Sources. GPC Cardholders must still abide by the FARs
provisions for required sources of supply and services. Some of those
requirements are listed below:
a. FAR Part 8 Required Sources of Supply and Services.
b. FAR Part 41 Public Utility Services
c. Printing and related supplies. FAR 8.8
d. Leased motor vehicles FAR 8.11.
e. Strategic and critical materials (metals and ores) from
inventories exceeding Defense National Stockpile
requirements;
f. Helium FAR 8.5
g. Micro-purchases may be procured from small businesses, but a
set aside for small businesses is not required.
5. Restrictions.
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a. Agency specific policies may restrict what GPC holders can
purchase.
47
Most agencies will restrict cash advances.
b. The GPC may not be used to purchase long-term rental or lease
of land or buildings.
c. The GPC may not be used for travel or travel related expenses.
However, conference rooms, meeting spaces, local
transportation services such as metro fare cards, subway tokens
and shuttle services can be purchased.
d. Contracting officers may not use the GPC to purchase goods or
services exceeding the micro-purchase threshold if the
contractor has a delinquent debt flag in the Central Contractor
Registration (CCR) database. FAC 2005-38, 74 FR 65600,
12/10/2009, effective 2/1/2010; FAR 32.1108.
(1) Contracting officers must check the CCR database
when the contract or order is over the micro-purchase
threshold, even if purchasing from GSA. GPC holders
are exempt as long as the purchase is under the
micropurchase threshold.
(2) This rule does not apply to individual travel charge
cards or centrally billed accounts for
travel/transportation services.
(3) Contracting officers shall not use the presence of the
CCR debt flag to exclude a contractor from receipt of
contract award or placement of an order. Instead, other
payment methods (like an electronic funds transfer)
must be pursued. If the Contractor pays the debt, then
GPC may be used as a payment method. FAR 32.1108;
FAC 2005-38, 74 FR 65600, 12/10/2009, effective
2/1/2010.
(4) Why? This restriction is in place so that the
government can increase its ability to recoup funds
when a contractor owes the government funds. Since
the GPC system employs a 3
rd
party (the charge card
company) to pay for good and services, a direct offset
47
For example, ASA(ALT) memo of 31 Oct 2011, Mandatory Use of Blanket Purchase Agreements (BPAs)
for Office Supplies, requires cardholders to use established Army-wide BPAs to fill needs for office supplies,
absent one of several listed exceptions. Memo available at http://www.jrtc-
polk.army.mil/doc/NEWwebpagecontents/GPC/ASA(ALT)BPAmemo.pdf.
9-43

between a debtor contractor and the government is not
practicable.
6. Uses. FAR 13.301(c).
a. To make micro-purchases.
b. To place task or delivery orders (if authorized in the basic
contract, basic ordering agreement, or BPA).
c. To make payments when the contractor agrees to accept
payment by the card.
d. Additional uses and guidance for DoD are described above and
are included in DFARS 213.301.
e. As a general rule, DO NOT I SSUE THE GPC TO
CONTRACTORS! AFI 64-117, Air Force Government
Purchase Card Program (20 September 2011); FAR 13.301(a);
FAR 1.603-3. But see GPC SOP dtd 3 May 2013, para. 1-5,
providing that certain contractors working under cost type
contracts may request a GPC.
7. Control Weaknesses. Several GAO reports and a DOD IG Audit
Report have identified control weaknesses that leave agencies
vulnerable to fraud and abuse. DOD IG Audit Report, Controls Over
the DoD Purchase Card Program, Rept. No. D-2002-075, 29 March
2002; GAO Rept. No. 02-676T, Government Purchase Cards: Control
Weaknesses Expose Agencies to Fraud and Abuse, (May 1, 2002);
GAO Rept. No. 02-506T, Governmentwide Purchase Cards: Actions
Needed to Strengthen Internal Controls to Reduce Fraudulent,
Improper, and Abusive Purchases, March, 2008. Problem areas
include:
a. Lack of Training for both GPC cardholders and
issuing/approving officials.
b. Selecting Cardholders and Assigning Approving Officials.
Cardholders should be mature, responsible individuals.
Approving Officials should be individuals with some
supervisory responsibility over individual cardholders.
c. Inadequate Internal Controls. Poor review and approval
procedures lead to fraudulent transactions and mistakes.
Internal controls must also account for the management and
accounting of personal property after purchase to ensure that an
otherwise legitimate purchase is not converted to personal use.
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d. Splitting purchases to avoid spending limits. Splitting a known
requirement into multiple smaller procurements under the
micro-purchase threshold is an impermissible, but tempting
pitfall for cardholders and commands.
8. Practical Pointers
a. Training. Online training is available from the GSA SmartPay
website at http:www.gsa.gov.
b. Issue cards only to GOVERNMENT employees (NOT
contractors) who are authorized and trained to use the GPC.
c. Authorizing officials should be responsible for no more then 5-
7 cardholders. Authorizing officials should have some
supervisory responsibility over their cardholders.
d. Authorizing officials should not also be a cardholder.
e. Scrutinize single purchases and monthly spending limits.
f. Closely monitor the use of convenience checks.
XII. USING THE FEDERAL SUPPLY SCHEDULES (FSS)
A. Background.
1. The General Services Administration (GSA) manages the FSS
program pursuant to the Section 201 of the Federal Property
Administrative Services Act of 1949. A FSS is also known as a
multiple award schedule (MAS).
2. The Federal Supply Schedule (FSS) program provides federal agencies
with a simplified process for obtaining commonly used commercial
supplies and services at prices associated with volume buying. The
FSS program provides over four million commercial off-the-shelf
products and services, at stated prices, for given periods of time.
3. Congress recognizes the multiple award schedule (MAS) program as a
full and open competition procedure if participation in the program has
been open to all responsible sources and orders and contracts under the
program result in the lowest overall cost alternative to the United
States. 10 U.S.C. 2302(2)(C). But see Reep, Inc., B-290665, Sep.
17, 2002, 2002 CPD 158 (to satisfy the statutory obligation of
competitive acquisitions . . . an agency is required to consider
reasonably available information . . . typically by reviewing the prices
of at least three schedule vendors. The agency failed to meets its
9-45

obligation by not awarding to a vendor providing the best value to the
government at the lowest overall cost.).
4. Therefore, an agency need not take certain additional actions, such as:
a. NO need to seek further competition outside the FSS itself.
(1) But see Draeger Safety, Inc., B-285366, B-285366.2,
Aug. 23, 2000, 2000 CPD 139 (though the
government need not seek further competition when
buying from the FSS, if it asks for competition among
FSS vendors, it must give those vendors sufficient
details about the solicitation to allow them to compete
intelligently and fairly).
(2) For DoD agencies, Section 803 of the National
Defense Authorization Act for Fiscal Year 2002, Pub.
L. No. 107-107, as implemented by DFARS 208.405-
70, requires each order of supplies or services under the
FSS (including FSS BPAs) exceeding $150,000 to be
placed on a competitive basis, unless the requirement is
waived based upon a justification prepared in
accordance with FAR 8.405-6. Placing an order on a
competitive basis requires a contracting officer to
provide fair notice of the intent to make the purchase,
including a description of the supplies/services along
with the source selection criteria, to:
(a) As many schedule contractors as practicable to
ensure the receipt of at least three qualified
offerors. The contracting officer must then
actually receive three qualified offers or
determine in writing that no additional
contractors can fulfill the requirements.
DFARS 208.405-70(c)(1). All offers received
must then be fairly considered;
or
(b) All contractors offering the required
supplies/services under the applicable schedule.
If such notification is provided, the contracting
officer must then afford schedule holders a fair
opportunity to submit an offer and to have it
fairly considered. DFARS 208.405-70(c)(2).
Note PGI 208.405-70(1) states that posting an
RFQ on GSAs eBuy
9-46

(www.gsaAdvantage.gov) is one medium of
providing fair notice to all contractors as
required by DFARS 208.405-70(c)(2).
b. Generally, NO Synopsis requirement under FAR Part 5. FAR
8.404(a).
48
c. No separate determination of fair and reasonable pricing (FAR
8.404(d)), except for price evaluation required by 8.405-2(d),
which states that when services require a statement of work,
the ordering activity is responsible for considering the level of
effort and the labor mix proposed to perform a specific task
being ordered, and for determining that the total price is
reasonable.
d. NO small business set-asides in accordance with FAR 19.5.
FAR 8.405-5. See Global Analytic Information Technology
Services, Inc., B-297200.3, Mar. 21, 2006, 2006 CPD 53
(Small business set-aside requirements in FAR Part 19 do not
apply to FSS Schedules). However, orders placed with small
business concerns may still be credited toward an
organizations small business goals. FAR 8.405-5(b). Further,
activities may consider socio-economic status during
competitively awarded orders or BPAs. FAR 8.405-5(c).
e. NO responsibility determination for FSS order. See Advance
Tech. Sys., Inc., B-296493.6, Oct. 6, 2006, 2006 CPD 151
(an ordering agency is not required to make a responsibility
determination each time it places a task or delivery order).
1. However, The FAR was amended effective April 2, 2012, that adopted
as final, with changes, the interim rule, 76 Fed. Reg. 14548 (Mar. 16,
2011), which implemented a section of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 to enhance
competition in the purchase of supplies and services by all executive
agencies under multiple-award contracts. For each purchase of
supplies or services in excess of the simplified threshold under a
multiple-award contract, the rule requires the provision of fair notice of
intent to make a purchase (including a description of the work to be
performed and the basis on which the selection will be made) to all
48
See FAR 8.404(g)(1) which does require publication of contract actions funded in whole or in part by the
American Recovery and Reinvestment Act of 2009. FAR 8.404(g)(2) requires publication when an order is
awarded, or a BPA is established, with an estimated value in excess of the SAT, and it is supported by a limited
sources justification.
9-47

contractors offering such supplies or services under the multiple-award
49
contract.
acquisition threshold under a multiple-award contract, the rule requires
1. the provision of fair notice of intent to make a purchase (including a de-
B. Ordering under the FSS.
50
1. For DoD agencies, Section 854 of the Ronald W. Reagan National
Defense Authorization Act for Fiscal Year 2005, Pub. L. No. 107-107,
as implemented by DFARS 208.405-70, requires departments and
agencies to review and approve orders placed for supplies or services
under non-DoD contracts, whether through direct acquisition or
assisted acquisitions, when the amount of the order exceeds the
simplified acquisition threshold. Before placing an order against these
non-DoD contract vehicles, which include FSS, contracting officers
must consider various factors and determine the acquisition is in the
best interest of DoD. See Director, Defense Procurement and
Acquisition Policy (DPAP), memos of 24 Aug 2009 (Interagency
Acquisition Update); 25 Apr 2013) (Support Agreements); and (17
June 2005) (Proper Use of Non-DoD Contracts); see also
Memorandum, Principal Deputy Under Secretary of Defense
(Comptroller) & Acting Under Secretary of Defense (Acquisition,
Technology & Logistics), Subject: Proper Use of Non-DoD Contracts
(Oct. 29, 2004); Memorandum, Assistant Secretary of the Army
(Financial Management and Comptroller) & Secretary of the Army
(Acquisition, Logistics, and Technology), Subject: Proper Use of
Non-Department of Defense (Non-DoD) Contracts (July 12, 2005)
(establishes Army policy for reviewing and use of non-DoD
contracts vehicles). A summary of current Interagency Acquisition
Policy and links to many of the memos referenced above can be found
at http://www.acq.osd.mil/dpap/cpic/cp/interagency_acquisition.html.
See also, DFARS 217.802.
2. Agencies place orders to obtain supplies or services from a FSS
contractor. When placing the order, the agency has determined that
the order represents the best value and results in the lowest overall cost
alternative (considering price, special features, administrative costs,
49
In addition, the rule requires that all contractors responding to the notice be afforded a fair opportunity to
make an offer and have that offer fairly considered by the purchasing official. A notice may be provided to
fewer than all contractors offering such supplies or services under a multiple-award contract only if the notice is
provided to as many contractors as practicable. When notice is provided to fewer than all the contractors, a
purchase cannot be made unless: (i) offers were received from at least three qualified contractors; or (ii) a
contracting officer determines in writing that no additional qualified contractors were able to be identified
despite reasonable efforts to do so.
50
Unfortunately, many contracting officers do not follow GSAs established procedures when using the FSS.
GOVERNMENT ACCOUNTABILITY OFFICE, GAO-01-125, NOT FOLLOWING PROCEDURES UNDERMINES BEST
PRICING UNDER GSAS SCHEDULE (Nov. 2000).
9-48

etc.) to meet the government's needs. FAR 8.404(d). Even though
GSA has already determined prices to be fair and reasonable, Agencies
may always seek additional discounts. Id.
3. An agency must reasonably ensure that the selection meets its needs
by considering reasonably available information about products
offered under FSS contracts. Pyxis Corp., B-282469, B-282469.2,
July 15, 1999,
99-2 CPD 18.
4. If an agency places an order against an expired FSS contract, it may
result in an improper sole-source award. DRS Precision Echo, Inc., B-
284080; B-284080.2, Feb. 14, 2000, 2000 CPD 26.
5. If an agency places an order against a FSS contract, then all items or
supplies ordered must be covered by the vendors FSS contract (no
off the schedule buys). Science Appl. Internatl Corp., Comp. Gen.
B-401773, Nov. 10, 2009 (holding agencies could not submit purchase
order to FSS vendor when two of six items were not on the FSS
contract at the time of the order but were added prior to the delivery
date); Symplicity Corp., Comp. Gen. B-291902, Apr. 29, 2003, 2003
CPD 89 (Agency can not award to a vendor whose labor categories
are outside the scope of its FSS contract); Omniplex World Servs.,
Corp., B-291105, Nov. 6, 2002, 2002 CPD 199 (BPA improper when
the services are not within the scope of the offerors FSS contract).
See also FAR 8.402(f), which explains that items not on FSS schedule
may be added to FSS orders only if those added items meet all
applicable competition and procurement regulations. See also,
Rapiscan Systems, Inc., B-401773.2, B-401773.3, March 15, 2010
(explaining that the sole exception to [the FAR 8.402(f)] requirement is
for items that do not exceed the micro-purchase threshold of $3,000, since
such items properly may be purchased outside the normal competition
requirements in any case.).
6. Thresholds.
a. At or under the micro-purchase threshold (MPT). Agencies
can place an order with any FSS contractor. FAR 8.405-1(b).
b. Above the micro-purchase threshold, but below the simplified
acquisition threshold (SAT). Procedures vary slightly
depending on whether a statement of work is required. See
FAR 8.405-1 and 8.405-2.
(1) Orders exceeding the MPT but not exceeding the SAT,
and which do NOT require a statement of work (SOW).
FAR 8.405-1(c). Activities shall place the order with
9-49

the schedule contractor that represents the best value.
Before placing orders, the activity shall:
(a) Consider reasonably available information using
the "GSA Advantage!" on-line shopping
service, by reviewing catalogs/pricelists of at
least three schedule contractors, or by
requesting quotes from at least three schedule
contractors; or
(b) Document the circumstances for restricting
consideration to fewer than three schedule
contractors based on one of the reasons
specified in FAR 8.405-6(a):
(i) An urgent and compelling need exists;
(ii) Only one source is capable of providing
the required supplies or services because
they are unique or highly specialized; or
(iii) In the interests of economy and
efficiency, the new work is a logical
follow-on to a previous FSS order. The
previous FSS order must have been
placed in accordance with proper
ordering procedures and must not have
been ordered as a sole-source or limited
source order.
(2) Orders exceeding the MPT but not exceeding the SAT,
and which DO require a statement of work (SOW).
FAR 8.405-2(c)(2). Activities shall place the order
with the schedule contractor that represents the best
value. Before placing orders, the activity shall:
(a) Develop a SOW in accordance with FAR 8.405-
2(b) (i.e., they shall include: descriptions of
work to be performed; deliverables schedules;
performance standards; location of work; period
of performance; special requirements; and
whenever possible, shall be performance-
based);
(b) Provide an RFQ to at least three schedule
contractors that offer services that will meet or
exceed the agencys needs, or document
circumstances for restricting consideration
9-50

based on one of the reasons specified in FAR
8.405-6(a) (urgent and compelling need; only
one source capable; logical follow-on); and
(c) Specify the type of order (i.e. firm-fixed-price,
labor-hour) for the services specified in the
SOW. The KO should establish firm-fixed
prices, as appropriate.
(3) Above the simplified acquisition threshold (SAT).
Procedures vary slightly depending on whether a
statement of work is required. See FAR 8.405-1 and
8.405-2.
(4) Orders exceeding the SAT and which do NOT require a
statement of work (SOW). FAR 8.405-1(d). Each order
shall be placed on a competitive basis unless a
justification is prepared and approved in accordance
with FAR 8.405-6.
(a) Activities shall place the order with the schedule
contractor that represents the best value and
may consider a variety of factors (see FAR
8.405-1(f)). Before placing orders, the activity
shall:
(i) Post an RFQ on e-Buy to afford all
relevant schedule contractors offering
the required supplies or services an
opportunity to submit a quote; or
(ii) Provide the RFQ to as many schedule
contractors as practicable, consistent
with market research, to reasonably
ensure that quotes will be received from
at least three contractors. When fewer
than three quotes are received, the KO
shall prepare a written determination
explaining that no additional contractors
could be identified despite reasonable
efforts to do so.
(b) Activities shall ensure that all quotes received
are fairly considered and award is made in
accordance with the evaluation criteria set out in
the RFQ. The basis for the award decision, and
other required aspects of the procurement must
9-51

be documented in the contract file. FAR 8.405-
1(g).
(5) Orders exceeding the SAT and which DO require a
statement of work (SOW). FAR 8.405-2(c)(3). In
addition to the requirements for an order between the
MPT and SAT that requires a SOW as stated above,
each order above the SAT shall be placed on a
competitive basis unless a justification is prepared and
approved in accordance with FAR 8.405-6.
(a) Activities shall place the order with the schedule
contractor that represents the best value and
may consider a variety of factors (see FAR
8.405-2(d)). Before placing orders, the activity
shall prepare an RFQ that includes the SOW and
evaluation criteria. The activity must then:
(i) Post an RFQ on e-Buy to afford all
relevant schedule contractors offering
the required supplies or services an
opportunity to submit a quote; or
(ii) Provide the RFQ to as many schedule
contractors as practicable, consistent
with market research, to reasonably
ensure that quotes will be received from
at least three contractors. When fewer
than three quotes are received, the KO
shall prepare a written determination
explaining that no additional contractors
could be identified despite reasonable
efforts to do so.
(b) Activities shall ensure that all quotes received
are fairly considered and award is made in
accordance with the evaluation criteria set out in
the RFQ. The basis for the award decision, and
other required aspects of the procurement must
be documented in the contract file. FAR 8.405-
2(f). Note the documentation for this type of
order must consider the level of effort and labor
mix in order to determine if price is reasonable.
(c) Time and materials and labor hour orders for
services require additional determinations and
findings. See FAR 8.405-2(e) and 8.404(h).
9-52

7. Advantages of FSS ordering.
a. Reduce the time of buying.
b. Reduce the cost of buying. Agencies can fill recurring needs
while taking advantage of quantity discounts associated with
government-wide purchasing.
c. While not protest proof, ordering from a FSS should diminish
the chances of a successful protest.
(1) Whether the agency satisfies a requirement through an
order placed against a MAS contract/BPA or through an
open market purchase from commercial sources is a
matter of business judgment that the GAO will not
question unless there is a clear abuse of discretion.
AMRAY, Inc., B-210490, Feb. 7, 1983, 83-1 CPD
135.
(2) An agency may consider administrative costs in
deciding whether to proceed with a MAS order, even
though it knows it can satisfy requirements at a lower
cost through a competitive procurement. Precise
Copier Services, B-232660, Jan. 10, 1989, 89-1 CPD
25.
(3) The GAO will review orders to ensure the choice of a
vendor is reasonable. Commercial Drapery
Contractors, Inc., B-271222, June 27, 1996, 96-1 CPD
290 (protest sustained where agency's initial failure to
follow proper order procedures resulted in "need" to
issue order to higher priced vendor, on the basis it was
now the only vendor that could meet delivery
schedule).
(4) Section 843 of the 2008 NDAA granted GAO the
authority to review bid protests of task or delivery
orders over $10 million. This authority was later
codified at 41 U.S.C. 253j(e) (now 41 U.S.C. 4106(f))
for civilian agencies and 10 U.S.C. 2304c(e) for DoD.
Prior to the enactment of section 843, a protest of a task
or delivery order was only authorized on the grounds
that the order increased the scope, period, or maximum
value of the contract under which the order was issued.
As of 2013, only the civilian codification of section 843
contains a sunset provision. The GAOs authority to
9-53

review bid protests for civilian agencies has been reset
to 30 Sep 2016.
d. GSA awards and administers the contract (not the order).
Problems with orders should be resolved directly with the
contractor. Failing that, complaints concerning deficiencies
can be lodged with GSA telephonically (1-800-488-3111) or
electronically (through "GSA Advantage!").
8. Disadvantages.
a. Must pay GSAs service charge or Industrial Funding Fee
which funds GSAs costs associated with running the FSS
program. Since January 1, 2004 the Industrial Funding Fee
has been .075 percent. This fee is built into the cost of the
supplies or services procured and is not paid as a separate line
item.
b. Agencies cannot order incidentals on Federal Supply
Schedule orders.
(1) In ATA Defense Industries, Inc., 38 Fed. Cl. 489
(1997), the Court of Federal Claims ruled that
bundling non-schedule products with schedule
products violated the Competition in Contracting Act.
The contract in question involved the upgrade of two
target ranges at Fort Stewart, Georgia. The non-
schedule items amounted to thirty-five percent of the
contract value.
(2) Prior to 1999, the GAO allowed incidental purchases of
non-schedule items in appropriate circumstances.
ViON Corp., B-275063.2, Feb. 4, 1997, 97-1 CPD 53
(authorizing purchase of various cables, clamps, and
controller cards necessary for the operation of CPUs
ordered from the schedule).
(3) The GAO has concluded, in light of the COFC's
analysis in ATA, that there is no statutory basis for the
incidental test it enunciated in ViON. Agencies must
comply with regulations governing purchases of non-
FSS items, such as those concerning competition
requirements, to justify including those items on a FSS
delivery order. Pyxis Corp., B-282469, B-282469.2,
July 15, 1999, 99-2 CPD 18.
(4) FAR 8.402(f) permits adding open market items (i.e.
items not on FSS schedule) to FSS orders provided that
9-54

all other applicable acquisition regulations regarding
the non-FSS items have been complied with
(publicizing Part 5; competition Part 6; commercial
item procurement Part 12; method of procurement
Part 13, 14, or 15; and small business programs Part
19). Non-FSS items must also be fairly and reasonably
priced, must be clearly identified as non-FSS items on
the order, and the order must contain all clauses
applicable to non-FSS orders. Note that if the amount
of non-schedule items does not exceed the micro-
purchase threshold, these items may be added (see
Rapiscan Systems, Inc., B-401773.2, B-401773.3, March
15, 2010 (explaining the micro-purchase exception) and
Section XII.B.5 above.
XIII. CONCLUSION.
9-55

APPENDIX A:
PUBLICIZING SYNOPSIS/ SOLICITATION REQUIREMENTS AND SIMPLIFIED
ACQUISITION THRESHOLD CHARTS
9-56

9-57

APPENDIX B:
Sample GSA Blanket Purchase Agreement Format
9-58

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9-59
USACE ACQUISITION INSTRUCTION (UAI)
TABLE OF CONTENTS

1
18 March 2013
PART 1 FEDERAL ACQUISITION REGULATION SYSTEM
SUBPART 1.1 PURPOSE, AUTHORITY, ISSUANCE
1.101-100 Purpose............................................................................................................... 11
1.103-100 Authority............................................................................................................. 11
1.104-100 Applicability......................................................................................................... 11
1.105-2-100 Arrangement of Regulations............................................................................. 11
1.170-100 Peer Reviews....................................................................................................... 11

SUBPART 1.2 ADMINISTRATION
1.201-100 Maintenance of the UAI....................................................................................... 14
1.201-101 Interim Changes of the UAI................................................................................... 14

SUBPART 1.4 DEVIATIONS FROM THE FAR
1.402 Policy --------------------------------------------------------------------------------------------------------- 15

SUBPART 1.6 CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES
1.601(5)-100 Principal Assistant Responsible for Contracting (PARC) Authority
Responsibilities.................................................................................................................... 15
1.602-1-100 Authority Administrative Contracting Officer (ACO)....................................... 15
1.602-2-100 Responsibilities................................................................................................. 15
1.602-2-90-100 Appointment of Ordering Officers................................................................ 16
1.604-100 Appointment of Contracting Officers Representative (COR)................................. 16

SUBPART 1.90 NON-APPROPRIATED FUNDS (NAF)
5101.9002-100 Contracting Authority................................................................................. 19

PART 2 DEFINITIONS OF WORDS AND TERMS
SUBPART 2.1 DEFINITIONS
2.101-100 Definitions........................................................................................................... 20

PART 3 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
SUBPART 3.1 SAFEGUARDS
3.104-2-100 General............................................................................................. 21

SUBPART 3.2 CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL
3.203-100 Reporting Suspected Violations of the Gratuities Clause.................................... 22

PART 4 ADMINISTRATIVE MATTERS
SUBPART 4.8 GOVERNMENT CONTRACT FILES
4.802-100 Contract Files ...................................................................................................... 23
TABLE OF CONTENTS

2
18 March 2013

PART 5 PUBLICIZING CONTRACT ACTIONS
SUBPART 5.2 SYNOPSES OF PROPOSED CONTRACT ACTIONS
5.203-100 Publicizing and Response Time............................................................................. 26

SUBPART 5.4 RELEASE OF INFORMATION
5.403-100 Requests from Members of Congress................................................................ 26

SUBPART 5.5 PAID ADVERTISEMENTS
5.502-100 Authority ............................................................................................................. 27

PART 6 COMPETITION REQUIREMENTS
SUBPART 6.3 OTHER THAN FULL AND OPEN COMPETITION
6.302-2-100 Unusual and Compelling Urgency SCA Approval to Proceed with an
After-the-Fact J&A............................................................................................................... 28
6.304-100 Approval of the Justification................................................................................ 28

SUBPART 6.4 SEALED BIDDING AND COMPETITIVE PROPOSALS
6.401-100 Sealed Bidding and Competitive Proposals.......................................................... 28

SUBPART 6.5 COMPETITION ADVOCATES
6.501-100 Requirement....................................................................................................... 29

PART 7 ACQUISITION PLANNING
SUBPART 7.1 ACQUISITION PLANS
7.102-100 Policy.................................................................................................................. 30
207.170-100 Consolidation of Contract Requirements......................................................... 31

PART 8 REQUIRED SOURCES OF SUPPLIES AND SERVICES
SUBPART 8.4 FEDERAL SUPPLY SCHEDULES
8.404-100 Use of Federal Supply Schedules.......................................................................... 32
8.405-6-100 Limited Sources Justification and Approval (LSJ&A)........................................ 33

SUBPART 8.7 ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE
BLIND OR SEVERELY DISABLED
8.705-100 Procedures Mandatory Use of AbilityOne Program Contract Closeout
Services................................................................................................................................ 33

SUBPART 8.74 ENTERPRISE SOFTWARE AGREEMENTS
8.7403-100 Acquisition Procedures ....................................................................................... 32
TABLE OF CONTENTS

3
18 March 2013
PART 9 RESERVED

PART 10 RESERVED

PART 11 DESCRIBING AGENCY NEEDS
SUBPART 11.7 VARIATION IN QUANTITY
11.703 Contract Clauses ......................................................................................................... 35

PART 12 RESERVED

PART 13 RESERVED

PART 14 SEALED BIDDING
SUBPART 14.2 SOLICITATION OF BIDS
14.201-100 Preparation of Invitation for Bids (IFBs) Construction Contracts....................... 37

PART 15 CONTRACTING BY NEGOTIATION
SUBPART 15.2 SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION
15.203-100 Request for Proposals........................................................................................ 38
15.204-100 Contract Format................................................................................................. 38

SUBPART 15.3 SOURCE SELECTION
15.300-100 Scope of Subpart - Department of Defense Source Selection Procedures........... 38
15.304-100 Evaluation Factors and Significant Subfactors.................................................... 40

SUBPART 15.4 CONTRACT PRICING
215.404-73-100 Alternate Structured Approaches................................................................. 41
215.404-73-101 Alternate Structured Approaches Construction Contracts........................... 41
215.404-73-102 Alternate Structured Approaches Architect-Engineer (A-E) Contracts.......... 43
15.406-1-100 Prenegotiation Objectives (POM).................................................................... 43

SUBPART 15.5 PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS,
AND MISTAKES
15.503-100 Notifications to Unsuccessful Offerors............................................................... 44
15.504-100 Award to Successful Offeror............................................................................... 44
15.505-100 Preaward Debriefing of Offerors........................................................................ 44

TABLE OF CONTENTS

4
18 March 2013
PART 16 TYPES OF CONTRACTS
SUBPART 16.1 SELECTING CONTRACT TYPES
16.103-100 Negotiating Contract Type................................................................................. 45

SUBPART 16.4 INCENTIVE CONTRACTS
16.405-2-100 Cost-Plus-Award Fee (CPAF) Contracts............................................................ 45

SUBPART 16.5 INDEFINITE-DELIVERY CONTRACTS
16.504-100 Indefinite-Quantity Contracts............................................................................ 45
16.505-100 Ordering............................................................................................................ 45

SUBPART 16.6 TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS
16.603-100 Letter Contracts.............................................................................................. 46

PART 17 SPECIAL CONTRACTING METHODS
SUBPART 17.2 OPTIONS
17.200-100 Scope of Subpart............................................................................................... 47

SUBPART 17.5 INTERAGENCY ACQUISITIONS
17.500-100 Scope of Subpart Proper Use of Non-DoD Contracts.................................. 47

SUBPART 17.74 UNDEFINITIZED CONTRACT ACTIONS
217.7404-1-100 Authorization............................................................................................... 47
217.7405-100 Plans and Reports............................................................................................ 48

PART 18 RESERVED

PART 19 SMALL BUSINESS PROGRAMS
SUBPART 19.2 POLICIES
19.201-100 General Policy................................................................................... 49

SUBPART 19.5 SET-ASIDES FOR SMALL BUSINESS
19.502-2-100 Total Small Business Set-Asides...................................................................... 50
19.502-4-100 Multiple-Award Contracts and Small Business Set-Asides............................... 50

SUBPART 19.7 THE SMALL BUSINESS SUBCONTRACTING PROGRAM
19.705-6-100 Postaward Responsibilities of the Contracting Officer..................................... 50

PART 20 RESERVED

TABLE OF CONTENTS

5
18 March 2013
PART 21 RESERVED

PART 22 APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
SUBPART 22.3 CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
22.302-100 Liquidated Damages and Overtime Pay.............................................................. 52

SUBPART 22.4 LABOR STANDARDS FOR CONTRACTS INVOLVING CONSTRUCTION
22.406-6-100 Payroll and Statements................................................................................... 52
22.407-100 Solicitation Provisions and Contract Clauses/Special Contract Requirements..... 53

SUBPART 22.5 Use of Project Labor Agreements on Federal Construction Projects.
22.503-100 Policy ................................................................................................................... 54

PART 23 Environment, Energy and Water Efficiency, Renewable Energy Technologies,
Occupational Safety, and Drug-Free Workplace
SUBPART 23.1 SUSTAINABLE ACQUISITION POLICY
23.103-100 Sustainable Acquisition................................................................................... 55

PART 24 PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
SUBPART 24.1 PROTECTION OF INDIVIDUAL PRIVACY
24.101-100 Definitions................................................................................... 57
24.103-100 Procedures................................................................................... 57

SUBPART 24.2 FREEDOM OF INFORMATION ACT
24.203-100 Policy............................................................................................ 58

PART 25 FOREIGN ACQUISITION
SUBPART 25.2 BUY AMERICAN ACT CONSTRUCTION MATERIALS
25.202-100 Exceptions......................................................................................................... 59

PART 26 RESERVED

PART 27 RESERVED

PART 28 BONDS AND INSURANCE
SUBPART 28.3 INSURANCE
28.305-100 Overseas Workers Compensation and War Hazard Insurance............................ 60

PART 29 RESERVED
TABLE OF CONTENTS

6
18 March 2013

PART 30 RESERVED

PART 31 CONTRACT COST PRINCIPLES AND PROCEDURES
SUBPART 31.1 APPLICABILITY
31.105-100 Construction and Architect-Engineer Contracts................................................. 61
31.105-101 Special Contract Requirements......................................................................... 61

PART 32 CONTRACT FINANCING
SUBPART 32.1 NON-COMMERICAL ITEM PURCHASE FINANCING
32.102-100 Description of Contracting Financing Methods.................................................. 62

SUBPART 32.7 CONTRACT FUNDING
32.703-2-100 Contracts Conditioned Upon Availability of Funds Civil Works Continuing
Contracts............................................................................................................................. 62
32.705-2-100 Contract Clauses............................................................................................. 62

PART 33 PROTESTS, DISPUTES, AND APPEALS
SUBPART 33.1 PROTESTS
33.102-100 General............................................................................................................. 63
33.102-101 USACE Automated Legal System Matter Tracking System.................................. 63
33.103-100 Protests to the Agency...................................................................................... 63
33.103-101 Disclosure of Government Estimate.................................................................. 64
33.103-90-100 Annual Agency Bid Protest Report............................................................... 64
33.104-100 Protests to GAO................................................................................................ 65
33.190-100 Contracting Officers Reports on GAO and Agency Protests............................... 66
33.190-1-100 Bid Protest Action Report............................................................................... 67

SUBPART 33.2 DISPUTES AND APPEALS
33.203-100 Applicability - Agency Board of Contract Appeals for Civil Works Contracts........ 67

PART 34 RESERVED

PART 35 RESERVED

PART 36 CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
SUBPART 36.1 GENERAL
36.102-100 Definitions......................................................................................................... 68
36.104-100 Policy................................................................................................................. 68
TABLE OF CONTENTS

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SUBPART 36.2 - SPECIAL ASPECTS OF CONTRACTING FOR CONSTRUCTION
36.201-100 Evaluation of Contractor Performance............................................................... 68
36.203-100 Government Estimate of Construction Costs...................................................... 69
36.203-101 Civil Works Contracts......................................................................................... 70
36.203-102 Revision of Government Estimate...................................................................... 70
36.205-100 Statutory Cost Limitations Civil Works Contracts............................................. 70
36.205-101 Cost Limitations Military Construction Contracts............................................. 70

SUBPART 36.3 TWO-PHASE DESIGN-BUILD SELECTION PROCEDURES
36.303-100 Procedures......................................................................................................... 71

SUBPART 36.5 CONTRACT CLAUSES
36.516-100 Quantity Surveys - Hydrographic..................................................................... 71
36.570-100 Additional Solicitation Provision and Contract Clauses....................................... 71

SUBPART 36.6 ARCHITECT-ENGINEER SERVICES
36.600-100 Scope of Subpart................................................................................................... 72
36.601-3-100 Applicable Contracting Procedures................................................................. 72
36.601-3-90-100 Limitations................................................................................................ 72
36.601-4-100 Implementation............................................................................................. 73
36.602-2-100 Evaluation Boards.......................................................................................... 73
36.602-4-100 Selection Authority........................................................................................ 73
36.602-5-100 Short Selection Process for Contracts Not-to-Exceed the Simplified
Acquisition Threshold.......................................................................................................... 73
36.603-100 Collecting Data on and Appraising Firms Qualifications..................................... 74
36.604-100 Performance Evaluation..................................................................................... 74
36.605-100 Government Cost Estimate for Architect-Engineer Work.................................... 74
36.606-70-100 Statutory Fee Limitation................................................................................ 74
36.609-1-100 Design Within Funding Limitations.................................................................. 74

PART 37 SERVICE CONTRACTING
SUBPART 37.1 SERVICE CONTRACTS GENERAL
37.104-100 Personal Services Contracts............................................................................... 75

SUBPART 37.5 MANAGEMENT OVERSIGHT OF SERVICE CONTRACTS
37.590-100 Army Management and Oversight of the Acquisition of Services........................ 75
37.590-6-100 Army Services Strategy Panel (ASSP) Procedures.............................................. 75

PART 38 RESERVED
TABLE OF CONTENTS

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PART 39 RESERVED

PART 40 RESERVED

PART 41 RESERVED

PART 42 CONTRACT ADMINISTRATION AND AUDIT SERVICES
SUBPART 42.1 CONTRACT AUDIT SERVICES
5142.1-90-100 Responsibilities................................................................................................ 77

SUBPART 42.2 ASSIGNMENT OF CONTRACT ADMINISTRATION
42.202-100 Assignment of Contract Administration............................................................. 77

SUBPART 42.3 CONTRACT ADMINISTRATION OFFICE FUNCTIONS
42.302-100 Contract Administration Functions Administrative Contracting Officer (ACO)... 77

SUBPART 42.490 FOLLOW-UP ON CONTRACT AUDIT REPORTS
5142.490-4-100 Overage Audit Review Boards........................................................................ 78

PART 43 CONTRACT MODIFICATIONS
43.102-100 Policy................................................................................................................. 79

PART 44 RESERVED

PART 45 GOVERNMENT PROPERTY
45.103-100 General.............................................................................................................. 80

PART 46 QUALITY ASSURANCE
SUBPART 46.7 WARRANTIES
46.710-100 Contract Clauses................................................................................................. 81

PART 47 RESERVED

PART 48 RESERVED

TABLE OF CONTENTS

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PART 49 TERMINATION OF CONTRACTS
SUBPART 49.113 COST PRINCIPLES
49.113-100 Cost Principles - Construction Equipment Costs - Contract Clauses..................... 82

PART 50 RESERVED

PART 51 RESERVED

PART 52 USACE PROVISIONS AND CONTRACT CLAUSES
SUBPART 52.1 INSTRUCTIONS FOR USING PROVISIONS AND CLAUSES
52.101-100 Using Part 52..................................................................................................... 83

SUBPART 52.2 TEXTS OF PROVISIONS AND CLAUSES
52.211-5001 Variation in Estimated Quantities Subdivided Items..................................... 83
52.232-5000 Payment for Materials Delivered Off-Site........................................................ 83
52.232-5001 Continuing Contracts Special Continuing Contract for Civil Works Project
Managed by the United States Army Corps of Engineers [DEVIATION]................................. 84
52.236-5000 Design-Build Contract Order of Precedence................................................ 86
52.236-5001 Personnel, Subcontractors, and Outside Associates or Consultants.................. 87
52.236-5002 Government-Furnished Drawings, Surveys, and Specifications in the
Request for Proposal........................................................................................................... 87
52.236-5003 Government-Furnished Specifications and Drawings for Construction............. 87
52.236-5004 Responsibility of the Contractor for Design..................................................... 87
52.236-5005 Warranty of Design......................................................................................... 88
52.236-5006 Deviating from the Accepted Design............................................................... 89
52.236-5007 Contractors Role During Design Process......................................................... 89
52.236-5008 Value Engineering after Award....................................................................... 90
52.236-5009 Partnering....................................................................................................... 90
52.236-5010 Government Re-Use of Design......................................................................... 91
52.249-5000 Basis for Settlement of Proposals.................................................................... 91

APPENDICES
APPENDIX 1-1 PROCESS CHART FOR USACE ACQUISITION PEER REVIEW POLICY................... 92
APPENDIX 1-2 TIMELINE FLOWCHART FOR USACE HCA PEER REVIEW PROCESS ................... 96
APPENDIX 1-3 HQ USACE CECT REVIEW & APPROVAL PROCESS (DOC/HCA & HIGHER).......... 98
APPENDIX 1-4 PEER REVIEW TOOLKITS.............................................. 100
APPENDIX 1-6 COR FILE REVIEW CHECKLIST.......................................................................... 112
APPENDIX 2-1 DOC DOCUMENT REVIEW AND APPROVAL MATRIX.................................. 116
APPENDIX 6-1 AFTER-THE-FACT J&A UPWARD REPORTING FORM........................................ 128
APPENDIX 6-2 JUSTIFICATION OF PROCUREMENT METHOD TEMPLATE................................ 129
TABLE OF CONTENTS

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APPENDIX 6-3 J&A CHECKLIST AND LINK TO DASA(P) J&A SOP............................................. 132
APPENDIX 8-1 LIMITED SOURCES J&A (LSJ&A)...................................................................... 136
APPENDIX 15-1 SAMPLE DETERMINATION & FINDINGS (D&F).............................................. 139
APPENDIX 15-2 NAVFAC / USACE PAST PERFORMANCE QUESTIONAIRE (PPQ) FORM AND
INSTRUCTIONS..................................................................................................................... 145
APPENDIX 16-1 AFDO FOR CPAF CHECKLIST.......................................................................... 152
APPENDIX 17-1 D&F FOR CERTIFICATION OF REQUIREMENTS FOR PROPER USE OF
NON-DOD CONTRACTS ASSISTED ACQUISITION TEMPLATE................................................... 155
APPENDIX 17-2 D&F FOR CERTIFICATION OF REQUIREMENTS FOR PROPER USE OF
NON-DOD CONTRACTS DIRECTED ACQUISITION TEMPLATE.................................................. 159
APPENDIX 24-1 SAMPLE PERSONALLY IDENTIFIABLE INFORMATION (PII) LANGUAGE........... 163
APPENDIX 24-2 SAMPLE PERSONALLY IDENTIFIABLE (PII) BREACH CONTRACTUAL
LANGUAGE........................................................................................................................... 165
APPENDIX 33-1 CONTRACT REQUESTS, CLAIMS & APPEALS.................................................. 167
APPENDIX 36-1 DEVELOPMENT, REVIEW AND APPROVAL OF GOVERNMENT ESTIMATES
MATRIX................................................................................................................................ 187
APPENDIX 37-1 SERVICES ACQUISITION STRATEGIES GUIDE/CHECKLIST................................ 190

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PART 1 FEDERAL ACQUISITION REGULATIONS SYSTEM

SUBPART 1.1 PURPOSE, AUTHORITY, ISSUANCE

1.101-100 Purpose.
The United States Army Corps of Engineers (USACE) Acquisition Instruction (UAI) establishes uniform
policies and procedures to ensure that business practices are consistent throughout USACE, provides
internal guidance, delegations of authority, assignments of responsibilities, work-flow procedures,
procedures that are required by regulation to be established by the Head of the Contracting Activity
(HCA), procedures that implement policies, and internal reporting requirements. It does not restrict the
exercise of good business judgment or stifle innovation. The UAI is not intended to repeat, paraphrase,
or otherwise restate material contained in the Federal Acquisition Regulation (FAR), the Defense Federal
Acquisition Regulation Supplement (DFARS), the Army Federal Acquisition Regulation Supplement
(AFARS), or higher-level agency regulations. The information in the UAI will not conflict or be
inconsistent with FAR content as prescribed in FAR 1.304(b). The UAI is not a stand-alone document.
The Engineering Federal Acquisition Regulation Supplement (EFARS) is hereby rescinded and superseded
by the issuance of this acquisition instruction.

1.103-100 Authority.
The UAI is issued by the HCA, pursuant to the FAR 1.301, DFARS 201.304, and under the authority of the
Secretary of the Army, pursuant to AFARS 5101.304.

1.104-100 Applicability.
The UAI applies to all USACE Districts and Centers and the Defense Microelectronics Activity (DMEA) as
long as USACE serves as the HCA for DMEA. Wherever District/Center is stated, DMEA is included.

1.105-2-100 Arrangement of Regulations.

(a) General. The arrangement and numbering of the UAI conforms to the FAR, DFARS and the AFARS.

(b) Numbering. Numbered divisions (parts, subparts, sections, or paragraphs, etc. and numbered
appendices) of the UAI correspond to the same numbered division in the FAR, DFARS and AFARS.
Numbered divisions of the UAI with a suffix in the "100" series (e.g. 1.601-100) contain subject matter
related to but not contained in an FAR, DFARS, or AFARS numbered division. Omission from the UAI of a
numbered division that appears in FAR, DFARS or AFARS denotes that there is no additional guidance
provided in the UAI.

(c) References and Citations. This guidance shall be referred to as the UAI. Any numbered division may
be cited as "UAI" followed by the division number. Thus, this section would be cited as "UAI 1.105-2-
100," but within this guidance, it would be cited as "1.105-2-100."

1.170-100 Peer Reviews.

(a) This guidance applies to all acquisitions (regardless of type) above the micro-purchase threshold.
Peer review procedures are available at UAI Appendix 1-1. Approval thresholds by the type and dollar
value are outlined in UAI Appendix 2-1.

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(b) Administration of Peer Reviews.
(1) Peer reviews are not compliance reviews (i.e. Solicitation Review Boards (SRB)/Contract Review
Boards (CRB)). Refer to Defense Procurement and Acquisition Policy (DPAP) Deputy Director peer
review slides, dated 13 May 2010, presented at the Department of Defense (DoD) Procurement
Conference and Training Symposium. These slides highlight that peer reviews are intended to be
advisory in nature.

(2) Actions > $250M: Regional Principal Assistant Responsible for Contracting (PARC) shall ensure
all internal compliance reviews and approvals (i.e. pre-negotiation objective memorandums (POMs),
price negotiation memorandums (PNMs), determination & findings, justification and approvals, legal
sufficiency reviews, etc.) are completed prior to scheduling a peer review.

(c) Peer Review Required Documents and Elements, Suggested Questions, Tenets and Toolkits:
(1) Peer Review minimum required documents and elements to address during pre- and post-award
peer reviews are available in DFARS Procedures, Guidance and Instruction (PGI) 201.170-4.

(2) Utilize the list of suggested questions formulated by DPAP for peer review team members as a
guide for peer review discussion.

(3) The following references provide the tenets and review criteria for pre- and post-award peer
reviews for the acquisition of services:

DFARS PGI 201.170 and 237.102-76
Memorandum, Director, Defense Procurement and Acquisition Policy (DPAP), subject:
Review Criteria for the Acquisition of Services, 18 February 2009

(4) Peer review toolkits are available in UAI Appendix 1-4. Toolkits are provided as a self-check for
use in preparing for peer reviews.

(d) Peer reviews are independent reviews conducted outside the purview of the District/Center Project
Delivery Team (PDT) of the particular action being reviewed. For actions valued at $50M and greater,
the peer review should be a multi-functional team comprised of senior level experts, which will at a
minimum, include representatives from the acquisition center, small business office, office of counsel,
requirements community and in the case of non-competitive actions, the competition advocate. For
actions valued up to $50M, the team composition should be commensurate with the scope and
complexity of the requirement. While legal counsel participates in the peer review process, separate
legal sufficiency reviews are required in accordance with AFARS 5101.602-2(c). To avoid any conflict of
interest and maintain the integrity of the advisory nature of the peer review, the Peer Review Chair
should not be in the supervisory chain of the source selection authority (SSA).

(1) Business Oversight Branch (BOB)/Contracting Officer: BOBs/Contracting Officers will identify
and perform a random sampling of peer reviews for stand-alone contract actions, task/delivery/
Federal Supply Schedule orders and Blanket Purchase Agreement calls above the micro-purchase
threshold to less than $500K. The Regional Contracting Chief (RCC) will specify in writing, with a
copy furnished to the USACE Headquarters (HQ) Directorate of Contracting (DOC) Program
Evaluation Division, the random sampling minimum quantity of contract actions for peer review for
each District/Center within their area of responsibility (AOR). The peer review can be conducted by

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Contracting 1102 peers with commensurate knowledge, skills, abilities and warrant thresholds as
the Procuring Contracting Officer (PCO). (Peers should not be subordinate to the PCO).

(2) RCC and District/Center Contracting Chief (DCC/CCC) Peer Reviews. Peer reviews facilitated by
the DCC, CCC, and RCC or designee apply to contract actions valued at $500K to $50M.

(i) The DCC or CCC will randomly identify and perform a minimum of one (1) peer review
annually for each Contracting Officer in their AOR.

(ii) The RCC will randomly identify and perform a minimum of two (2) peer reviews annually for
each District/Center in their AOR.

(3) Regional PARC Peer Reviews. Regional PARC peer reviews apply to all applicable contract
actions valued at $50M to less than $250M.

(4) HCA Peer Reviews. HCA peer reviews are required for competitive actions valued at $250M to
less than $1B and for non-competitive actions valued at $250M to less than $500M.

(i) Notice of upcoming HCA peer reviews shall be provided by District/Center BOB to the HQ
USACE DOC through the Regional Acquisition Support Analyst. The District/Center PDT shall
plan, at a minimum, one week (7 calendar days) for scheduling and document review by the
peer review team; two to three business days for the actual review; and five business days for
HCA endorsement. The District/Center BOB and Regional Acquisition Support Analyst will
coordinate and organize the peer review date and time; the HQ DOC will establish the peer
review participants, the Regional Acquisition Support Analyst will confirm the peer review
participants with the District/Center BOB, and the District/Center BOB will coordinate the PDT
members requested as attendees at the peer review meeting, to include at a minimum, the
PCO, Technical Evaluation Team Lead, Price Evaluation Team Lead/Price or Cost Evaluator (as
applicable), and Source Selection Evaluation Board Chair. The SSA is invited, but not required, to
attend the peer review meeting. If the SSA does not attend the peer review meeting, the peer
review team will provide a debriefing to the SSA upon request. An HCA timeline visual is
provided at UAI Appendix 1-2.

(ii) HCA peer reviews are conducted in accordance with the Acquisition Review and Approval
Process flowchart available in UAI Appendix 1-3. For all HCA peer reviews, the USACE HQ DOC
will conduct reviews appropriate to determine that the contractual documentation is complete
and that an effective source selection is accomplished.

(iii) Peer reviews are conducted as a review of the applicable acquisition documents either
through a face-to-face meeting, by video teleconferencing, or teleconference.

(iv) Access to the peer review documents are provided by the Regional Acquisition Support
Analyst to the HQ DOC peer review members. The Regional Acquisition Support Analyst, in
coordination with the HQ DOC Peer Review Lead, will draft and send the PCO a summary
memorandum of the peer review recommendations. This memorandum will include the
names/positions of the peer review and PDT members, state the review proceedings, note any
significant findings and incorporate any applicable resolutions that were determined as a result

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of the peer review.

(v) After the HQ DOC Peer Review Lead signs the summary memorandum, the PCO must send a
response to the Peer Review Lead addressing resolutions to peer review recommendations,
prior to proceeding for HCA endorsement.

(5) HCA Peer Review Endorsement: Only actions endorsed by the HCA (staffed through the DOC) in
accordance with the Acquisition Review & Approval Process flowchart (UAI Appendix 1-3) shall be
released for solicitation or award.

(6) Peer Review Reporting Requirements. Each quarter (via electronic method), the District/Center
BOB will provide the Regional PARC a report of upcoming peer reviews for that quarter, as well as,
peer reviews completed (for all thresholds). The list will include the project name, project location,
estimated project amount, contract award amount, solicitation and contract number, names of peer
review members, scheduled dates of the peer review, and a summary of best practices, systemic
weaknesses, and quality improvements identified. The USACE HQ DOC shall ensure all peer review
best practices and lessons learned from all levels have been posted to the Central Peer Review Site.
USACE HQ DOC will maintain the site.

(7) Peer Review Waivers or Cancellations. In accordance with PARC Policy Alert #13-25, Interim
AFARS Change for Peer Review Thresholds, there are no waivers permitted to the requirement for
peer reviews valued at $50M or greater. If it becomes necessary to cancel a peer review due to a
withdrawal or cancellation of the project, the District/Center BOB will document the justification in
a memorandum to the Regional PARC or the HQ DOC. The cancellation memorandum shall be
submitted as soon as the withdrawal or cancellation of the project becomes known.

SUBPART 1.2 ADMINISTRATION

1.201-100 Maintenance of the UAI.

(a) The UAI will be maintained by the USACE HQ Directorate of Contracting. Recommendations for
changes, additions, and deletions to the UAI are encouraged and should be submitted to the USACE HQ
DOC Contracting Policy Division mailbox, HQ-CECT-PolicyMailbox@usace.army.mil. It is anticipated the
UAI will be reviewed and updated on an annual basis.

1.201-101 Interim Changes of the UAI.
The USACE HQ DOC may issue interim changes to this instruction, published as Interim Policy Directives
(IPD), which are effective until formal incorporation into the UAI, rescission, cancellation or expiration.
In addition, Procurement Instruction Letters (PILs) may be issued to provide internal USACE mandatory
and non-mandatory acquisition procedures. PILs are located electronically at the USACE Knowledge
Management Environment (KME) Contracting Communities of Practice (CoP) Website, under
Procurement Instruction Letters (PILs) Active.


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SUBPART 1.4 DEVIATIONS FROM THE FAR

1.402 Policy
As set forth in AFARS 5101.4, individual and class deviations requiring higher headquarters approval, or
publication in the Federal Register, will be reviewed by the Regional PARC and submitted to the USACE
HQ DOC Contracting Policy Division mailbox, HQ-CECT-PolicyMailbox@usace.army.mil for coordination
and staffing.

SUBPART 1.6 CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES

1.601(5)-100 Principal Assistant Responsible for Contracting (PARC) Responsibilities.
The PARC is responsible for oversight and execution of the contracting functions within their assigned
mission areas. There are three Regional PARCs in USACE: PARC Atlanta, GA, PARC Winchester, VA
and PARC - Dallas, TX.

1.602-1-100 Authority Administrative Contracting Officer (ACO)

(a) Appointment. An ACO shall be appointed by Regional PARCs with specified warrant authority, not
greater than $500,000.

(b) Authority.
(1) The ACO is authorized to obligate the government only to the limits delegated in individual
contract appointment letters issued by the contracting officer. The PCO shall ensure contract
specific ACO delegations do not conflict with or exceed the amount/type of authority specified in
the ACO warrant.

(2) The ACO may modify construction contracts within the scope of the contract under any of the
following contract clauses, provided that no individual contract modification exceeds the ACO
warrant threshold:

(i) FAR 52.211-18, Variation in Estimated Quantity;
(ii) FAR 52.236-2, Differing Site Conditions;
(iii) FAR 52.242-14, Suspension of Work;
(iv) FAR 52.243-4, Changes;
(v) FAR 52.248-3, Value Engineering Construction; and
(vi) Modify construction contract performance periods under FAR clause 52.249-10, Default
(Fixed-Price Construction), when a delay is due to unforeseeable causes beyond the control and
without the fault of the contractor; and
(vii) Modify construction purchase orders under FAR clause 52.243-5, Changes and Changed
Conditions, provided that the modification does not cause the total value of the purchase order
to exceed the simplified acquisition threshold (SAT) at FAR 13.101.

1.602-2-100 Responsibilities.

(a) Each contract action with a total estimated absolute value expected to exceed $500,000 shall be
reviewed by Counsel prior to issuance. Each contract file shall contain written documentation indicating

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the date each solicitation was reviewed and the identity of the Counsel who performed the review. The
contracting officer shall document the disposition of any written legal comments prior to issuance of the
solicitation, contract award, and/or modification.

(b) Counsel shall also provide written concurrence on determination and findings (D&Fs), justification
and approvals (J&As), decision(s) that may lead to a claim, ratification actions, competitive range
determinations, substitution of sureties, alternate payment protections, non-responsiveness
determinations, unacknowledged amendments, bid/proposal irregularities, bid mistakes, acceptance of
late bids, rejection of all bids, reassignment issues, individual sureties, assignment of claims, novation
agreements, terminations, tax/duty issues regardless of the dollar value, requests for equitable
adjustment in excess of the SAT, or other legal reviews requested by the contracting officer.

(c) Differences between the contracting officer and legal counsel as to legal sufficiency that cannot be
satisfactorily resolved within the District/Center/Region shall be referred to the Regional PARC and PARC
Counsel for resolution through the proper channels.

1.602-2-90-100 Appointment of Ordering Officers.

(a) The contracting officer is the appointing authority; however, the DCC/CCC must first approve the
ordering officers qualifications. It is essential that the qualification decisions appropriately consider the
technical knowledge, training, and experience commensurate with what is being acquired via the
contract, as well as the business acumen and judgment of the individual. Suggested training that may
be suitable for ordering officers is the training identified for qualifications of COR Certification and
Training Requirements.

(b) Ordering officer appointments should be used by exception in the execution of the contracting
mission. DCC/CCCs and contracting officers must exercise sound business judgment in determining the
need for such appointments. Conditions that may lend themselves to appointing ordering officers are:

(1) The scope of work to be executed is for specific, non-complex, repetitive requirements (e.g.,
mowing and janitorial services, sand/gravel supply orders, painting, roofing, etc.); and

(2) The ordering officer is issuing orders for quantities placed against bid schedules with pre-priced
line items.

(c) All ordering officer appointments (except job order contract (JOC) ordering officer appointments)
shall be in compliance with AFARS 5101.602-2-90 (JOC ordering officer appointments shall comply with
AFARS 5117.9006).

1.604-100 Appointment of Contracting Officers Representative (COR).

(a) General. Each District/Center shall have a sufficient number of trained CORs available to ensure that
contractors comply with all contract requirements. The COR responsibilities should be tailored to be
consistent with the magnitude, complexity and type of contract (see DFARS 201.602-1).

(b) Nomination. In order to be considered by the contracting officer for designation as a COR, a
nomination memorandum must be submitted by the requiring activity (e.g., engineering, construction,
or operations) for each contract. In accordance with OPORD 2012-53, all COR nominations,

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appointments, and records shall be processed, tracked and managed within Virtual Contracting
Enterprise (VCE) Contracting Officer Representatives Module (CORM). The COR nomination provides
the contracting officer with the necessary information to determine if the nominee is qualified to serve
as COR for a specific contract and requires the nominee's supervisor to support the nomination. The
nomination shall clearly demonstrate that the nominee meets all training and experience requirements
articulated in the current PIL, COR Certification and Training Requirements. The contracting officer will
accept, return for additional information, or reject the nomination through VCE CORM. If the
nomination is rejected, the contracting officer will note the reason(s) for the rejection and return it to
the requiring activity requesting a different nominee.

(c) Architect-Engineering (A-E) Services, Other Services, and Construction. Contracting officers shall
designate a properly trained COR in writing before awarding any service or construction contract IAW
DFARS 201.602-2 and PGI 201.602-2(i)(A), and if one or more of the below conditions apply.

(1) For A-E services contract with a total dollar value (including options) greater than $25,000;

(2) When the contract or action is for complex services that have quality or performance standards
for which contractual conformance must be established progressively through precise
measurements, tests, and controls applied during purchasing, performance, and functional
operation either as an individual service or in conjunction with other services;

(3) If the contract or action is for a critical service in which the failure of the service could injure
personnel or jeopardize a vital agency mission and the contracting officer determines it appropriate.

(4) Prior contractor past performance indicates a need for Government oversight; or,

(5) The contracting officer otherwise determines a COR is necessary.
(d) Construction CORs: The CORs designated on construction contracts will generally be a person other
than the ACO. The COR designation letter will be created within VCE CORM. If the contracting officer
determines it is practicable for the ACO to perform the duties performed by a COR in addition to their
ACO duties, then the PCO must approve a COR designation within VCE CORM, and include an ACO
designation letter notating that COR assignment conducted within VCE CORM within the body of the
letter, in which case do not designate the ACO, by title, as a COR.

(e) Duties. The CORs should be the subject matter expert or specialist in specific areas related to
contract performance (e.g., architect engineer, construction, environmental, information technology,
operations, etc). They advise the contracting officer, (and/or the ACO on construction contracts)
regarding the progress towards successful achievement of the contract requirements and assist in the
technical monitoring and coordination with the contracting officer and/or ACO for contract
administration (the independent government estimate (IGE) can assist in defining thresholds/tasks).
The COR designation memorandum should detail a COR's duties, identifying the actions a COR is
authorized to take under a particular contract. The COR shall not take any action not specifically stated
in the COR designation memorandum.

(f) Request for Proposal (RFP) Letters.

(1) The PCO is the sole authority for signing RFP letters for new requirements, task or delivery
orders and contract modifications for supply or service contracts.

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(2) The ACO may sign RFP letters for construction modifications within their warranted authority.
For construction actions above the warrant threshold of the ACO, the PCO will be the sole authority
to sign RFP letters unless the ACO has been specifically authorized in their delegation letter from the
contracting officer to issue RFP letters for modifications over their warrant authority. Copies of RFP
letters for modifications over the ACOs authority shall be provided to the contracting officer
immediately upon issuance.

(3) CORs are not authorized to sign RFP letters under any circumstance; however, CORs may
prepare RFP letters for signature and issuance by a USACE contracting officer.

(g) Quality Assurance. Quality assurance shall be performed on all contracts per FAR Subpart 46.102
and 37.604.

(1) Other Services (excluding A-E): A quality assurance surveillance plan (QASP) is necessary to
ensure the Government receives and pays for an acceptable level of quality services required by the
contract. A QASP shall be prepared in conjunction with the performance work statement (PWS) and
documented in writing whenever a COR is appointed, unless specifically exempted in writing by the
contracting officer. Contracting officers shall not exempt surveillance plan preparation and
execution without a justifiable reason. During contract administration, the Government QASP shall
ensure systematic quality assurance methods are used. The level of surveillance described in the
plan should be commensurate with the dollar value, risk, complexity and criticality of the
acquisition. The link to the DAU continuous learning module CLC 013, Performance-Based Services
Acquisition, provides instructions on developing and, writing the performance work statement and
QASP. Additional related resource materials are at the Performance-Based Acquisition Community
of Practice, and Acquisition Center of Excellence Community of Practice.

(2) Construction: Quality assurance shall be performed by the Government, with the contractor
conducting quality control as specified in the contract specifications.

(3) A-E Services: Quality assurance shall be performed by the Government IAW Engineer Publication
(EP) 715-1-7, Architect-Engineer Contracting and IAW Engineering Regulation 1110-1-12.

(h) Performance Objectives. The COR nomination memorandum affirms that the nominee will be
afforded sufficient time and resources to effectively perform the delegated COR duties. The supervisor
of the COR will ensure that performance standards include an appropriate performance objective
relating to the duties as a COR, as well as support the required experience and training on Individual
Development Plans to effectively perform COR duties. As a minimum, the performance objective should
include the following elements: comply with all technical requirements identified in the COR
designation memorandum; participate in the creation and enforcement of the QASP or other quality
assurance (as required); ensure surveillance or monitoring occurs as scheduled and is properly
documented and reported to the contracting officer; and provide timely and adequate input on
contractor performance evaluations.

(i) Inspections. The COR/ordering officer files are required to be reviewed annually. The DCC/CCC shall
maintain electronic record of each COR/ordering officer designation in order to facilitate a
representative review of each COR/ordering officer files. The DCC/CCC shall conduct the COR/ordering
officer file review utilizing the checklist included as Appendix 1-6.

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SUBPART 1.90 NON-APPROPRIATED FUNDS (NAF)

5101.9002-100 Contracting Authority.
Contracting Officers are advised to comply with DoDI 4105.71, Page 3, Paragraph 6.1.3, which states
personnel with appropriated fund procurement authority are not required to have a separate
certificate of appointment for NAF. Reference AR 215-4 for comprehensive acquisition policy for NAF
contracts.

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PART 2 DEFINITION OF WORDS AND TERMS

SUBPART 2.1 DEFINITIONS

2.101-100 Definitions.

Administrative Contracting Officer (ACO) means an individual warranted by a Regional PARC and
delegated authority, in writing, by a PCO with limited authorities to administer construction contracts,
task orders, and/or modifications.

"Chief of the Contracting Office" means the District Contracting Chief (DCC) or a Center Contracting Chief
(CCC). This individual serves as the DOC at the District or Center (not to be confused with HQ DOC).

Contracting Officer within the UAI means the Procuring Contracting Officer (PCO).

Directorate of Contracting (DOC) The DOC is the USACE HQ Directorate of Contracting, led by the
Director of Contracting, who is responsible for the oversight and management of all contract activities
initiated and administered in support of the USACE mission.

DOC Document Review and Approval Matrix provides thresholds, approval authorities, and applicable
regulatory/policy references for the review/approval of acquisition documents (UAI Appendix 2-1).

Head of the Contracting Activity (HCA) is the Chief of Engineers, USACE Commanding General.

Independent Government Estimate (IGE) is the formal, approved estimate prepared to support a
contract/task order award or modification. The IGE shall be used in conjunction with other
techniques/tools identified in FAR 15.404, Proposal Analysis, to ensure the final agreed price is fair and
reasonable. (Refer to the current PIL and the IGE Matrix, Requirements for Independent Estimates for
further guidance.)

Interim Policy Directive (IPD) are interim changes to the UAI. IPDs are effective until formal
incorporation into the UAI (at least annually), rescission, cancellation or expiration.

Procurement Instruction Letter (PIL) means acquisition companion resources issued by the USACE HQ
DOC that will direct compliance with mandatory internal USACE acquisition procedures and guidance
and supplemental information, and may contain non-mandatory procedures to be used at the discretion
of the PCO. The PILs provide updates or new instructions prior to the annual update of the UAI.

Regional Contracting Chief (RCC) means the principal contracting advisor to the Division Commander,
Engineer Research and Development Center (ERDC) and Army Geospatial Center (AGC) Directors, as well
as, the Regional Manager for Contracting. The RCC is responsible for overseeing the District and Center
contracting and leveraging contract support regionally.

Regional Principal Assistant Responsible for Contracting (PARC) means PARC-Atlanta, PARC-Dallas, and
PARC-Winchester. Based on authorities delegated by the HCA, the PARC oversees acquisition and
contracting matters within their assigned mission areas.

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PART 3 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

SUBPART 3.1 SAFEGUARDS

3.104-2-100 General.

(a) Public service is a public trust.

(b) Each employee has a responsibility to the United States and its citizens to place loyalty to the
Constitution, laws and ethical principles above private gain.

(c) To ensure that every citizen can have complete confidence in the integrity of the Federal
Government, each employee shall respect and adhere to the principles of ethical conduct set forth in
the ethics regulations.

(d) All DoD personnel are required to be familiar with the Standards of Ethical Conduct (5 CFR 2365) and
the DoD Joint Ethics Regulation (DoD 5500.7-R).

(e) All acquisition personnel shall complete the current DAU, Overview of Acquisition Ethics Course, a
computer-based training module, within 30 days of assuming acquisition duties, and annually
thereafter. Access can be obtained through the DAU website. USACE acquisition personnel include the
following:

(1) Civilian and military professionals in the Army Acquisition, Logistics and Technology Workforce
and all Army Acquisition Corps members,

(2) All USACE warranted ACOs, CORs and Contracting Officer Technical Representatives (COTRs)

(3) All Government Purchase Card holders and Billing Officials,

(4) All Ordering Officers,

(5) Any significant acquisition-related position identified by a supervisor, manager or commander .

(f) The following are types of prohibited activities:

(1) Promises, offers or gifts to a military member, civilian employee or other person having official
duties, something of value with the intent of influencing an official act;

(2) Direct or indirect demands, solicitation, receipt, acceptance or agreements to receive anything
of value by any government employee or other person having official duties, in return for
performing any official act;

(3) Direct or indirect solicitation of a gift from a contractor or other prohibited source by a
government employee or other person having official duties;


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(4) Offers or gifts to a Government employee or other person having official duties from a
contractor, or other prohibited source, any amount of cash or other financial interests, such as
stocks, bonds or futures; or

(5) Bribery, fraud, waste and abuse at any level within the organization.

(6) Endorsement of a non-federal entity, event, product, service, or enterprise may be neither
stated nor implied by the Department of Defense (DoD) or a DoD employee in their office capacity.
Titles, positions, and/or organization names may not be used to suggest official endorsement or
preferential treatment of any non-federal entity. Any letters of recommendation of contractors is
prohibited IAW Joint Ethics Regulation, Paragraph 3-209.

(g) Report incidents of prohibited acts immediately to the local Ethics Counselor or Procurement Fraud
Advisor.

SUBPART 3.2 CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL

3.203-100 Reporting Suspected Violations of the Gratuities Clause.

(a) All USACE personnel shall report any suspected violations of the gratuities clause to the Contracting
Officer, Ethics Counselor, Procurement Fraud Advisor, Commander, or the Inspector General.

(b) The following are examples of gratuities violations and are not all inclusive. Violations, or any
suspected violation, should be reported:

(1) Should a contractor or other prohibited source offer or give a Government employee or other
person performing official USACE duties, any gift, except for a perishable item, that person shall
immediately report the offer or gift to their immediate supervisor and to one of the individuals
identified in (a) above.

(2) Should a Government employee or other person performing official duties have any questions
or doubts about a gift, gratuity or bribery issue, they should contact the local Ethics Counselor or
Procurement Fraud Advisor. The attorney-client privilege and the attorney-client confidentiality
provisions do not apply to communications to an attorney working as an ethics counselor.

(3) Any employee, including contractor support employees regardless of their companys policies,
are prohibited from accepting a gift of any value from a contractor, potential contractor, or other
outside party without prior coordination with the local Ethics Counselor or Procurement Advisor.
Contractor employees should elevate ethics issues and concerns to their management for
coordination through their companys Government contracting officer.


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SUBPART 4.8 GOVERNMENT CONTRACT FILES

4.802-100 Contract Files.

(a) Maintenance of the official contract file is the overall responsibility of the PCO. The PCO shall
maintain all contract file documentation using the VCE Paperless Contract File (PCF) IAW OPORD 2012-
66. The PCO shall ensure that the during the contract administration of construction contracts, the COR
and/or ACO maintain contract documents electronically IAW OPORD 2012-66.

(b) At the time of contract closeout, all contractual records shall be retired IAW standards found at FAR
4.804 and DFARS 204.8.

(c) For applicable contract files not uploaded to the VCE PCF format, ACOs are required to provide to
the PCO office, immediately upon execution:

(i) The original contract modification and supporting documentation;
(ii) Correspondence;
(iii) Interim unsatisfactory performance evaluations;
(iv) Any other contract administration documents requested by the PCO.

(d) Contract File Documentation. The official contract file shall be electronic in PCF. If the contract file
is not under PCF due to exceptional circumstances, that contract file shall include cross-reference to
document location (e.g., payrolls, submittals, labor interviews, etc.) maintained by the ACO and/or COR
at an external site. The COR and/or ACO documentation (e.g., qualifications, training, designation
letters, etc.), if centrally maintained within the Contracting office, shall also be cross-referenced.

(e) Distribution of Contract Materials that are Sensitive.

(1) The following guidance is provided to contracting officers in the course of military operations,
including, but not limited to, contingency operations as defined in 10 U.S.C. 101(a)(13) or
humanitarian or peacekeeping operations as defined in 10 U.S.C. 2302(7) to assist in determining
whether a solicitation/request for proposal (RFP) contains information that requires additional
controls to monitor access and distribution (e.g., technical data, specifications, maps, building
designs, schedules, etc). Desk reference (January 2012), Integrating Antiterrorism and Operations
Security into the Contract Support Process to ATTP 4-10 (FM 3-100.21), Operational Contract
Support Tactics, Techniques, and Procedures (June 2011) identifies appropriate actions for
Operational Security (OPSEC) during the contracting process during both CONUS and OCONUS
situations. Applicability is discussed for all stakeholders during the entire acquisition process.

(2) Contracting in a contingency environment poses additional risks and complications that may
warrant alternative measures for the distribution and handling of contracting information
determined to be sensitive but not necessarily classified. In particular, there have been several
incidents where questions were raised about whether appropriate security measures were
exercised before drawings were distributed on unsecure websites.


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(3) Determination of Sensitivity. According to Army Regulation 530-1, Operations Security (OPSEC),
the definition of sensitive information (formerly known as sensitive but unclassified (SBU)
information) is information requiring special protection from disclosure that, if disclosed, could
cause compromise or threat to our national security, an Army organization, activity, family member,
Department of the Army (DA) civilian, or DoD contractor.

(4) The User Agency (UA) or the Requiring Agency (RA) should ultimately decide whether the
contract or certain contract information is sensitive. In the case of projects located on base, the
Commander, the Deputy Commander, the OPSEC officer and the Program Manager for the project
should determine what, if any, contract information needs to be treated as sensitive. The
determination of sensitivity needs also to be weighed against the following factors which may be
impacted:

(i) Time - delays in the execution of the project
(ii) Execution - impact on ability to execute project
(iii) Cost - additional cost of treating information as sensitive
(iv) Competition - limiting the number of available contractors, including preclusion of local
contractors.

(5) If contract information is determined to be sensitive, the contracting officer shall decide upon
the most practicable and cost effective alternative for managing the information. Alternatives to be
considered include, but are not limited to, the following:

(i) Issue sensitive technical information via CD/DVD to the contractor(s) with a restriction that
specified information for subcontracting purposes will be published on a secure site that
requires password protection.
(ii) Establishes an official secured file transfer protocol (FTP) site with password protection for
dissemination of sensitive technical information that can only be utilized by authorized
contractors and subcontractors.
(iii) Per OPORD 2011-55, USACE Disablement of Internal External File Transfer Protocol (FTP),
all FTP server files that appeared to be For Official Use Only (FOUO) and/or sensitive information
which were freely available to the public are no longer public information. USACE reconfigured
all USACE FTP servers to disable internal and external FTP in order to ensure sensitive
information is protected as is our network. For additional information concerning transfer of
sensitive material over the USACE network refer to USACE OPORD 2011-55 dated 1 September
2011.
(iv) When releasing sensitive information via the alternatives listed above, or by other means
that the contracting officer deems appropriate, prudent actions shall be taken to ensure the
individual receiving the information is a legitimate business concern. This practice should also
be addressed to the prime contractor when seeking subcontractors.

(6) When RFPs and amendments are issued to contractors with sensitive information included, the
following special language should be added in the RFP as Special Conditions, Special Contract
Requirements, or Terms and Conditions:


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This RFP contains sensitive information. Prime contractors shall not distribute pertinent
information, i.e., plans and specifications, to any individuals or subcontractor(s) over an
electronic system without security measures in place.

(7) Prime contractors shall not distribute pertinent information, i.e., plans and specifications, to any
individuals or subcontractors, over an electronic system, without security measures in place to
ensure information is not shared with other than those parties on a need-to-know basis. For
additional situational awareness on the release of information to the public, refer to: CEMP/CECC
Memo, 18 Nov 08, subject: Release of Information to the Public. For additional situational
awareness on essential elements of friendly information, refer to: USACE OPORD 2008-04, 18 Jan
08, subject: Operations Security.

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SUBPART 5.2 SYNOPSES OF PROPOSED CONTRACT ACTIONS

5.203-100 Publicizing and Response Time.
For a proposed contract action the Government intends to solicit and negotiate with only one source
under the authority of 6.302: the District/Center shall not submit the Justification & Approval (J&A) to
the Special Competition Advocate (SCA) prior to the end of the 15-day notice period and a review of any
capabilities statements received. When a full analysis of any response from the 15-day notice is
incorporated into the J&A, the contracting officer shall coordinate with the SCA should circumstances
dictate a need for the contracting officer to request prior coordination of a draft J&A with the SCA.

SUBPART 5.4 RELEASE OF INFORMATION

5.403-100 Requests from Members of Congress.
Processing of congressional inquiries will follow the procedures outlined herein.

(a) Inquiries sent directly from congressional offices to District/Center Commanders will be processed
according to local procedures.

(b) Inquiries received by the Headquarters (HQs) Command Staff Group, or by the HQs Future
Directions Branch (responsible for congressional liaison activities), directly from the Member or
Members staff, will be processed for action by CECW-IF. Should any individual receive a congressional
inquiry directly, addressed to the Chief of Engineers or HQ-Congressional Liaison Office/Officer, they
should immediately forward the inquiry to CECW-IF, and take no further action unless tasked with the
formal response.

(c) Congressional inquiries with contracting issues or aspects may be routed to the Regional PARC for
coordination of a draft response with the District/Center.

(d) The USACE HQ Staff Action Control Sheet submitted with the congressional inquiry will indicate the
actual suspense date and will also indicate the recipient of the coordinated response to the inquiry.
There may be times when the Member will request that the response be sent directly to his/her local
Congressional District office and that will be indicated on the Staff Action Control Sheet.

(e) When a direct response is required by the Regional PARC, the following procedures are applicable:

(1) The congressional inquiry package will be sent by the Regional PARC office via email to the
responsible DCC/CCC) (with a courtesy copy to the RCC), for preparation of the draft response for
Regional PARC review, coordination and signature. The email shall include the suspense date and
tasking number. The draft response shall be fully coordinated at the District/Center level to
include review and approval by the local Commander, or designee, and the Local Congressional
Liaison. Generally, a Staff Action Summary Sheet is the preferred method to route and track
staffing actions per guidance from the Chief of Staff.


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(2) If the established suspense date cannot be met, an interim reply will be drafted for signature by
the Regional PARC. It will contain as much information as available at the time, inform the Member
of Congress the reason for the delay (if appropriate), and set a specific time period for a final
response. The final response must meet the deadline. The Regional PARC will coordinate with
CECW-IF prior to signing; and a copy of the signed interim will be provided to CECT-O.

(3) Once the draft response is received by the Regional PARC office, the response, along with the
congressional inquiry (requires a minimum of 2 days for review), will be coordinated with CECW-IF,
and then finalized for Regional PARC signature.

(4) After the Regional PARC has signed the response, the original will be sent to the Member as
indicated on the Staff Action Control Sheet. The response, along with the congressional inquiry
package, will be sent via email to the DOC Congressional Liaison for forwarding to HQ Congressional
Liaison and closeout of the suspense. The RCC and DCC/CCC will be included as a courtesy on this
email. The DCC/CCC will ensure that the response is provided to the District Commander and Local
Congressional Liaison for information.

(5) In some cases, the same congressional inquiry may be received at various levels of the
organization from a single or multiple Member(s) or a similar/identical inquiry received at a later
date. It is important that coordination occur so that the appropriate level for responding is identified
and/or a consistent response is provided to the Member(s).

(f) Congressional inquiries should receive priority staffing upon receipt to ensure that all parties
involved have maximum time available for development and coordination of the response. It is
important that a clear, concise, validated and well-documented response be provided to the Member(s)
in a timely manner.

SUBPART 5.5 PAID ADVERTISEMENTS

5.502-100 Authority.
The HCA delegates, without power of redelegation, the authority to approve paid advertisements in
newspapers to: the Deputy Chief of Engineers, the Regional PARC, and Commanders.

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SUBPART 6.3 OTHER THAN FULL AND OPEN COMPETITION

6.302-2-100 Unusual and Compelling Urgency Special Competition Advocate Approval to
Proceed with an After-the-Fact J&A.

(a) A J&A for other than full and open competition is required to be approved prior to contract award.
However, FAR 6.302-2(c)(1) & DFARS PGI 206.302-2 Unusual and compelling urgency, state the
particular circumstances permitting the preparation and approval of a J&A after award of the contract,
when contracting under the authority of 10 U.S.C. 2304(c)(2), where an unusual and compelling urgency
precludes full and open competition, and delay in the award of a contract would result in serious injury,
financial or other, to the Government (see DFARS PGI 206.302-2). Concurrence by the SCA must be
obtained using the following upward reporting procedures:

(1) Prior to taking any action on an acquisition using the 10 U.S.C. 2304(c)(2) authority, the
DCC/CCC or the contracting officer must obtain verbal approval to proceed through their Regional
PARC, who will coordinate with the respective SCA approval authority based on the estimated dollar
amount of the action. Upon that coordination, the Regional PARC will provide the formal verbal
approval to proceed. The requestor, when contacting the Regional PARC must describe:

(i) Unusual and compelling urgency of the circumstances to include a description of the action;
(ii) Estimated dollar value; and
(iii) Brief justification in terms of impact on quality of life, readiness, loss or other serious injury
to the Government; and the acquisition strategy the contracting officer proposes, to assure
maximum competition to the extent practicable, given the unusual and compelling
circumstances;

(2) Within one working day after verbal approval to proceed, the DCC/CCC shall submit a completed
After-the-Fact J&A Upward Reporting Form (at UAI Appendix 6-1) to the Regional PARC who will
provide the form to the respective SCA.

6.304-100 Approval of the Justification.
All justifications shall be reviewed and signed by the local Office of Counsel, Field Competition Advocate,
Deputy for Small Business and other signatories required by the J&A Review Signature Page. Refer to
Appendix 2-1, DOC Document Review and Approval Matrix, for J&A approval thresholds and to AFARS
5106.303-2-90 for the specific format and submission requirements for Army J&A documents.

SUBPART 6.4 SEALED BIDDING AND COMPETITIVE PROPOSALS

6.401-100 Sealed Bidding and Competitive Proposals.

A Justification of Procurement Method (format at Appendix 6-2) shall be prepared for all competitively
negotiated acquisitions, regardless of the dollar value, addressing each of the four criteria outlined in
FAR 6.401(a). Exceptions to this requirement are Brooks Act A-E contracts; and FAR Part 13 Simplified

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Acquisition Procedures, when the Contracting Officer does not incorporate FAR Part 15 evaluation
procedures (under FAR 13.106-2(b)).

SUBPART 6.5 COMPETITION ADVOCATES

6.501-100 Requirement.

(a) The HCA will designate SCAs by letter of appointment. Delegation letters may be found at
Contracting CoP, Appointments and Delegations.

(b) Deputy District Commanders/Deputy Directors shall be appointed, in writing, by
Commanders/Directors, as Field Competition Advocates. The DCC/CCC shall provide a copy of each
appointment letter to their Regional SCA at the time the appointment is made. Field Competition
Advocates will perform the duties and responsibilities listed in FAR 6.502. Field Competition Advocate
responsibilities apply to FAR Part 8 and Part 16 justification actions as well.

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SUBPART 7.1 ACQUISITION PLANS

7.102-100 Policy.

(a) Acquisition planning and market research shall be performed for all acquisitions. In general, there
are two levels of acquisition planning:

(1) The annual overall acquisition strategy for the District/Center contracting activitys total
anticipated workload; and

(2) A formal or informal acquisition plan, as appropriate, for an individual acquisition.

(b) Formal Acquisitions Plans.

(1) A formal acquisition plan shall be prepared IAW DFARS 207.103 for:

(iv) Acquisitions for A-E services, construction, other services or non-commercial item supplies,
when the total cost for the contract(s) is/are estimated at $50 million or more for all years, or at
$25 million or more for any fiscal year (for example: requirements that will be contracted for via
multiple award contracts, multiple contracts for a single program, or multiple requirements to
be awarded under a single contract);

(v) Acquisitions for development, as defined in FAR 35.001, when the total cost of all contracts
for the acquisition program is estimated at $10 million or more;

(vi) Nationwide projects or projects that exceed a Divisions geographic boundaries at any
threshold, except as excluded under paragraph (3);

(vii) Any Early Contractor Involvement (ECI) contract, regardless of dollar value; and

(viii) Any acquisition determined by the Regional PARC, to be of such significance so as to impact
a major USACE initiative, raise serious or unique environmental matters, implement a deviation
from the FAR, concerns significant Congressional or political interest beyond normal constituent
service, and/or as otherwise requested by the Regional PARC.

(2) The Project Management Plan (PMP) required in ER 5-1-11, USACE Business Process, paragraph
7.b. (2), shall include the formal acquisition plan, if applicable, as an attachment.

(3) Formal acquisition plans are not required for the following:

(i) Single/discrete construction projects unless requested by the Regional PARC; and

(ii) For requirements below the thresholds in DFARS 207.103, extending beyond a Divisions
geographic boundaries to align with supported customers specific needs, IAW a signed
Memorandum of Agreement (MOA), Memorandum of Understanding (MOU), or designation as

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the Center of Expertise or one door to the Corps. A copy of the signed MOA/MOU/
designation and a copy of the PMP, which complies with paragraph 5 b (5) of ER 5-1-10, Corps-
Wide Area of Work Responsibility, may serve as the informal acquisition plan for these actions.

(c) Informal Acquisition Plans. The acquisition strategy portion of the PMP will serve as the informal
acquisition plan for requirements with a total value below the thresholds identified in paragraph (b).
The PMP shall be made a part of the official contract file. For further guidance refer to the Project
Management Business Process Manual, PROC 2000, PMP Development, and PROC 2050, Project
Delivery Acquisition Strategy.

(d) Acquisition Plan Assistance. At present, for sample and templates of formal acquisition plans, see
FAR 7.105, DFARS 207.105, AFARS 5107.1, and the Regional PARC June 2012 Acquisition Plan
Preparation Guide and Template. The template provides a format and guidelines for the contents of
formal acquisition plans the contracting officer shall ensure that all aspects required within the
regulations are included in any formal acquisition plan.

207.170-100 Consolidation of Contract Requirements.
New construction requirements are not categorically exempt from the definition of consolidation
under the applicable statute, 10 United States Code (U.S.C.) 2382, and a new construction
requirement that meets the definition of consolidation would be subject to the analysis, documentation,
and approval for consolidation IAW DFARS 207.170.

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SUBPART 8.4 FEDERAL SUPPLY SCHEDULES

8.404-100 Use of Federal Supply Schedules.

(a) Pursuant to DFARS 216.505-70, orders under multiple award contracts (MATOCs) do not apply to
orders for A-E services, which shall be placed IAW the procedures in FAR Subpart 36.6.

(b) Proper Use of Non-DoD Contracts.

(1) This guidance applies to the use of Non-DoD contract vehicles for all procurements of supplies
or services, including construction, and orders under the Federal Supply Schedules (FSS), except for:

(i) Printing, binding or blank-book work, to which 44 U.S.C. 502 applies; and

(ii) Services available under programs pursuant to 2 U.S.C. 182c (Section 103 of the Library of
Congress Fiscal Operations Improvement Act of 2000 (Public Law 106-481)).

(2) For Non-Economy Act contract actions, this guidance applies to amounts greater than the
Simplified Acquisition Threshold (SAT).

(3) For Non-Economy Act contract actions utilizing Non-DoD contracts, the requirement(s) shall be
certified by the District/Center Commander. This certification should be attached or made a part of
the Determination & Findings (D&F) that will be approved at the appropriate Contracting level.

(4) Contracting officers making direct acquisitions using FSS for amounts greater than the SAT are
reminded to:

(i) Determine whether the use of Non-DoD contracts is in the best interest of the Government
and verify that the required goods cannot be obtained as conveniently or economically by using
a DoD contract.

(ii) Request discounts when placing orders from the FSS.

(iii) Document requests for discounts. If discounts were received, document how the discounts
were determined to be fair; if discounts were not received, explain why the vendor was chosen.

(iv) Fully document decisions not to consider all potential sources when awarding orders using
the FSS.

(5) A D&F supporting the acquisition is required when utilizing non-DoD contracts above the SAT.
This acquisition approval is independent of, and in addition to, the requirement for certification of
requirements. Refer to Appendix 2-1, Document Review and Approval Matrix, for Approval
Thresholds.

(6) In order to streamline the approval process, a District/Center may request Regional PARC

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approval for a series of purchases utilizing Non-DoD contract actions for a specific type of product or
service covering a limited period of time. An example would be purchasing furniture for a specific
program over a six month time period.

8.405-6-100 Limited Sources
Justification and Approvals (J&As) for Limited Sources shall follow the format provided at Appendix 8-1.

SUBPART 8.7 ACQUISITION FROM NONPROFIT AGENCIES EMPLOYING PEOPLE WHO ARE
BLIND OR SEVERLY DISABLED

8.705-100 Procedures Mandatory Use of AbilityOne Program Contract Closeout Services.

(a) The placement of contract closeout services on the AbilityOne Program Procurement List requires all
DoD components to contact the AbilityOne Program when a determination is made to outsource
contract closeout work. The AbilityOne Program will assess the work required, and, if the capacity to
provide the contract closeout services is not available to meet the customer's needs then the
Committee for Purchase from People Who Are Blind or Severely Disabled will issue a Purchase Exception
to the requesting organization.

(b) The AbilityOne closeout support services contract provides non-inherently governmental contract
closeout support and creates career oriented, upwardly mobile employment opportunities for people
who are blind or have other significant disabilities, to include Wounded Warriors and service disabled
veterans. The contract also fulfills a critical need by reducing the contract closeout administrative
workload, thus allowing the contracting workforce to focus resources on critical mission support to the
Warfighter. Information on the AbilityOne Contract Closeout Services may be obtained by contacting
the National Industries for the Blind (NIB) Services Department.

SUBPART 8.74 ENTERPRISE SOFTWARE AGREEMENTS

8.7403-100 Acquisition Procedures.

(a) Contracting officers shall comply with the Army requirement to use the Computer Hardware,
Enterprise Solutions (CHESS) for purchases of commercial off-the-shelf software, desktops, notebook
computers and video teleconferencing equipment, regardless of dollar value. The requirement to use
CHESS contract vehicles also applies to the purchase of other commercial information technology (IT)
equipment (e.g., routers, servers, printers, etc.) regardless of dollar value. When procuring IT
equipment go to the CHESS website to locate the appropriate contract vehicle: https://chess.army.mil.

(b) Contracting officers shall abide by this requirement or request a waiver through the CHESS website.
If a CHESS vehicle is not utilized, a waiver from CHESS must be documented in the contract file.
Justifications for waivers to allow use of non-CHESS vehicles for purchase of equipment and software
must provide the rationale explaining the extenuating circumstances or unique configurations required
by mission and not available through CHESS contracts.

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PART 9 RESERVED

PART 10 RESERVED


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PART 11 DESCRIBING AGENCY NEEDS

SUBPART 11.7 VARIATION IN QUANTITY

11.703 Contract clauses.

(c) The contracting officer shall insert the provision at 52.211-5000, Evaluation of Subdivided Items, and
the statement at 52.211-5001, Variations in Estimated Quantities Subdivided Items, in solicitations and
contracts when a fixed-price construction contract is contemplated and when subdivided items are to be
separately priced for payment purposes.


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PART 12 RESERVED

PART 13 RESERVED
PART 14 SEALED BIDDING

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SUBPART 14.2 SOLICITATION OF BIDS

14.201-100 Preparation of Invitation for Bids - Construction Contracts.

(a) For USACE construction contracts issued as invitation for bids (IFBs), the Construction Specifications
Institute (CSI) MasterFormat in Table 14.201-1 shall be used in lieu of the Uniform Contract Format
(UCF), referenced in FAR 14.201-1. The general relationship between the UCF format and the USACE CSI
MasterFormat are shown in Table 14.201-1 for illustration purposes only.

(b) The USACE Construction Specifications Steering Committee (CSSC) will periodically issue technical
specifications guidance to standardize the specific content of the various technical CSI sections used for
USACE construction contracts. This will ensure relevancy and standardization with CSI MasterFormat
updates.
Table 14.201-1
Construction Contract Format Comparison with the UCF (For Illustration Purposes Only)
USACE CSI MasterFormat UCF
Section Title Section
00 00 00 Procurement and Contracting Requirements
00 01 05 Certification Page
00 01 10 Table of Contents
00 01 15 List of Drawing Sheets J
00 10 00 Solicitation, Contract Line Item Number (CLIN) Schedule A, B
00 20 00 Instructions for Procurement L
00 21 00 Instructions L
00 21 13 Instructions to Bidders L
00 21 16 Instructions to Proposers L
00 22 00 Supplementary Instructions L
00 22 13 Supplementary Instructions to Bidders M
00 22 16 Supplementary Instructions to Proposers M
00 30 00 Available Information
00 40 00 Procurement Forms and Supplements A
00 43 00 Bid Bond Form A
00 43 73 Proposed Construction Schedule Form A
00 45 00 Representations and Certifications K
00 50 00 Contracting Forms and Supplements A
00 51 00 Notice of Award A
00 52 00 Agreement Forms A
00 60 00 Project Forms A
00 61 00 Bond Forms A
00 62 00 Certificates K
00 70 00 Conditions Of The Contract I
00 71 00 Contracting Definitions
00 72 00 General Conditions I
00 73 00 Supplementary Conditions D, E, F, G, H
01 00 00 General Requirements C
02 00 00 - 49 99 99 Technical sections C

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SUBPART 15.2 SOLICITATION AND RECEIPT OF PROPOSALS AND INFORMATION

15.203-100 Request for Proposals.
Refer to Part 3 for guidance on the distribution of contract materials that are sensitive.

15.204-100 Contract Format.

(a) For construction contracts, contracting officers shall use the current CSI MasterFormat in lieu of the
UCF.

(b) The CSI MasterFormat, and shall be used in lieu of the UCF. CSI MasterFormat is a master list of
titles and numbers used to organize specifications and other project information for most commercial
building design and construction projects in North America. It lists titles and section numbers for
organizing data about construction requirements, products, and activities. By standardizing such
information, CSI MasterFormat facilitates communication among architects, specification writers,
contractors and suppliers.

(c) The CSI MasterFormat shall also be used for USACE construction contracts acquired using IFB (see
UAI 14.201-100).

(d) The general relationship between the UCF format and the CSI MasterFormat are shown in UAI Table
14.201-1 for illustration purposes only.

SUBPART 15.3 SOURCE SELECTION

15.300-100 Scope of Subpart Army Source Selection Supplement Manual.

(a) The Army Source Selection Supplement (AS3) Manual (dated 21 December 2012) supplements the
mandatory DoD Source Selection Procedures for all competitive acquisitions utilizing FAR Part 15
procedures (includes stand-alone/base contracts and applicable task/delivery orders). The AS3 and the
DoD Source Selection Procedures can be found on the Contracting CoP Portal.

(b) Source Selection.
(1) Informal or Streamlined Source Selection. Informal or streamlined source selection is the
process used when the PCO is the Source Selection Authority (SSA) and may or may not use an
evaluation board to reach final selection and award decision.

(2) Formal or Complex Source Selection. Formal source selection means the source selection
process used where someone other than the PCO is the SSA, normally for high dollar value or
complex acquisitions. The DoD Source Selection Procedures states that in a formal source selection,
the Source Selection Team (SST) generally consists of the SSA, a Source Selection Advisory Council
(SSAC), and a Source Selection Evaluation Board (SSEB). The SST shall be established prior to
issuance of the solicitation. An action with a value exceeding $100M requires a SSAC. The SSAC

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shall provide the SSA with a written comparative analysis of proposal and award recommendation
for the SSAs consideration.

(c) Training, Ethics and Non-Disclosure Statements. It is strongly encouraged that SST participants
without DAWIA certification complete the DAU Continuous Learning Module, CLC 007, Contract Source
Selection. This training is available at http://www.dau.mil in the Continuous Learning Section. In
addition, participants are also strongly encouraged to complete the USACE Prospect Formal Source
Selection Course #183. This training is available at http://ulc.usace.army.mil/. The PCO is responsible
for providing source selection training tailored to the solicitation and ensuring that the source selection
plan (SSP) is fully understood and followed by all participants in the source selection process.
Participants assigned to the SSEB, whether formal or informal, shall receive a standard of conduct
briefing provided by the Office of Counsel. Upon completion of SSEB training and prior to the
commencement of the evaluation board, each board member/evaluator shall execute a non-disclosure
statement.

(d) Source Selection Authority Hierarchy. The appointment of the SSA can be outside the contracting
chain when it is determined to be in the best interest of the Government. The experience/grade level of
the individual selected to serve as the SSA shall be commensurate with the complexity and dollar value
of the acquisition. The following SSA appointment hierarchy applies within USACE Contracting Offices:

Threshold SSA/Appointment Authority
Less than $50 million PCO
Over $50 million to $100 million One level above PCO or an Individual Appointed by
the PARC
Over $100 million to $250 million Appointed by PARC
Over $250 million to $500 million Appointed by Director of Contracting/Deputy
Director
Construction & Supply Greater than $500
million
Appointed by Director of Contracting/Deputy
Director
Services Greater than $500 million Appointed by DASA(P)

(e) Disclosure of Proprietary and Source Selection Information.
(1) The SST members are subject to the requirements of the Procurement Integrity Act. This
precludes the SST from knowingly disclosing source selection information and contractor bid or
proposal information before award of a federal contract to which the information relates. This Act
and other similar statutes and regulations impose stringent requirements related to safeguarding of
source selection information, contractor bid, or proposal information and other integrity issues.
Violation of these requirements could result in civil and/or criminal penalties. (See FAR Part 3.104,
Procurement Integrity, to ensure a thorough and complete understanding of disclosure procedures,
protection of data and information that may or may not be released.)

(2) The SSA is strongly discouraged from releasing any source selection information to anyone
outside of the appointed source selection organization. The SSA is authorized to approve release of
source selection information in formal source selections after issuance of the solicitation to other
authorized Government officials that have signed a non-disclosure statement providing the release
would not jeopardize the integrity or successful completion of the procurement. The SSA will only

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consider release of source selection information when the disclosure will benefit the source
selection process as actions in connection with participation in a source selection are subject to
intense scrutiny and participants must conduct themselves in a manner that will not adversely affect
the confidence of the public. Participants must avoid any action, whether or not prohibited, that
could result in or create the appearance of losing independence or impartiality. The SSA will ensure
all involved in the source selection are briefed and knowledgeable of Subsection 27(a) of the Office
of Federal Procurement Policy Act (41 U.S.C. 423).

(3) Title 18 U.S.C. 1905, Disclosure of Confidential Information, applies to disclosure by a
government employee of any information provided to the government by a company or other
nongovernment organization, if the provider of the information identified it as proprietary or as
being provided to the government in confidence. The penalty is mandatory removal from office
(termination of employment), and the offender may be fined and/or imprisoned. Proprietary data
or information that is covered under the Trade Secrets Act (18 U.S.C. 1905) is protected against
permanent disclosure. It is imperative that the SSA coordinates with their Project Delivery Team
legal representative when disclosure of source selection information is being requested.

(f) Non-Government Advisors. Use of non-Government personnel as advisors may be authorized, but
should be minimized as much as possible. Use of non-Government advisors, other than Federally
Funded Research and Development Centers (FFRDCs), shall be supported by a written determination
based on FAR 37.203 and 37.204. A sample D&F is located in UAI Appendix 15-1. (Any questions
regarding use of non-Government advisors or for a particular individual should be referred to the
supporting legal office).

(1) All non-Government advisors shall sign the non-disclosure agreement required to be signed by
all Government employees who are participating in the source selection. They shall also submit
documentation to the PCO indicating their personal stock holdings prior to being allowed access to
source selection sensitive information. In addition, the PCO must ensure that before the non-
Government advisor is given access to proprietary information, that the Government has received
the consent of the submitting contractor(s) to provide access to the contractor who is to assist in the
source selection.

(2) Non-Government advisors may assist in and provide input regarding the evaluation, but they
may not determine ratings or rankings of offerors proposals. Disclosure of past performance
information to non-Government personnel is strictly prohibited (reference DoD Contractor
Performance Assessment Report System (CPARS) Policy Guide, A-E Contract Administration Support
System (ACASS) Policy Guide, and Construction Contractor Appraisal Support System (CCASS) Policy
Guide). Accordingly, non-Government advisors shall not participate in the review and evaluation of
past performance information. (See FAR 42.1503).

15.304-100 Evaluation Factors and Significant Subfactors.

(a) Past Performance. The Naval Facilities (NAVFAC)/USACE Past Performance Questionnaire (PPQ)
form is included under UAI Appendix 15-2. This form applies to all types of procurements for which the
submission of PPQs are sought/permitted within the solicitation.

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(1) The FAR requires that contractor performance information be collected (FAR Part 42) and used
in source selection evaluations (FAR Part 15). CPARS is a required system and the preferred source
of past performance information, when available. The current PIL, Contractor Performance
Assessments, establishes current USACE policy and guidance on using CPARS. In addition to CPARS,
the use of the PPQ has traditionally been another tool for collecting relevant and recent past
performance information on prospective offerors for use by contracting officers in source selections.

(b) Small Business Participation shall be evaluated in all unrestricted acquisitions expected to exceed
$650,000 ($1.5 million for construction), except those based on the lowest priced technically acceptable
(LPTA) source selection process. Small Business Participation may be evaluated as a stand-alone
evaluation factor, a subfactor under the technical factor, or within the evaluation of one of the technical
subfactors. However, the Army and USACE Office of Small Business Programs preferred method is to
evaluate small business participation as a stand-alone factor, using adjectival rating method of
evaluation. There are two rating options for consideration:

(1) Adjectival (depending on the treatment of risk); or

(2) Acceptable/Unacceptable (i.e., pass/fail).

Note: Do not confuse the Small Business Participation evaluation with the requirement for submission
and evaluation of a Subcontracting Plan required of large businesses only for specific thresholds, as per
FAR guidance.

SUBPART 15.4 CONTRACT PRICING

215.404-73-100 Alternate Structured Approaches.

(b)(2) Facilities capital cost of money shall not apply to contracts where reimbursement is provided to
contractors through construction equipment use rates or allowances (ref: FAR 31.105(d)). In other
situations where facilities capital cost of money is proposed and verified, follow the offset procedures in
DFARS 215.404-73(b)(2).

215.404-73-101 Alternate Structured Approaches Construction Contracts.

(a) The following alternate structured approach shall be used for all firm-fixed price construction and A-E
contract actions. For all other contract actions, the weighted guidelines method described at DFARS
215.404-71 shall be used.
Factor Rate Weight Value
Degree of risk 20
Relative difficulty of work 15
Size of job 15
Period of performance 15
Contractor's investment 5

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(b) Based on the circumstances of the procurement action, each of the above factors shall be weighted
from 0.03 to 0.12, as indicated below. Value shall be obtained by multiplying the rate by the weight.
The value column, when totaled, indicates the fair and reasonable profit percentage under the
circumstances of the particular procurement.

(1) Degree of risk. Where the work involves no risk or the degree of risk is very small, the weighting
should be 0.03; as the degree of risk increases, the weighting should be increased up to a maximum
of 0.12. Lump sum items shall generally have a higher weight than unit price items. Consider the
nature of subcontractors, amount and type of labor included in costs and whether the negotiation is
before or after performance of the work. Modifications, settled before the fact, have a much
greater risk than those settled after the fact. A weight of 0.03 is appropriate for after the fact
equitable adjustments and/or settlements.

(2) Relative Difficulty of Work. If the work is difficult and complex, the weight should be 0.12 and
should be proportionately reduced to 0.03 on the simplest of jobs. This factor is tied in to some
extend with the degree of risk. Other things to consider are the nature of the work, by whom it is to
be done (i.e., subcontractors, consultants), etc.

(3) Size of Job. Work of $100,000 shall be weighted at 0.12. Work estimated between $100,000
and $5,000,000 shall be proportionately weighted from 0.12 to 0.05. Work from $5,000,000 to
$10,000,000 shall be weighted at 0.04. Work in excess of $10,000,000 shall be weighted at 0.03. It
should be noted that control of fixed expenses generally improves with increased job magnitude.

(4) Period of Performance. Work not to exceed 1 month is to be proportionately weighted at 0.03.
Durations between 1 and 24 months are to be proportionately weighted between 0.03 and 0.12.
Work in excess of 24 months is to be weighted at 0.12.

(5) Contractors Investment. To be weighted from 0.03 to 0.12 on the basis of below average,
average and above average. Consider the amount of subcontracting, Government-furnished
property or data, such as surveys, method of making progress payments, and any mobilization
payment items.

(6) Assistance by Government. To be weighted from 0.12 to 0.03 on the basis of average to above
average. Consider use of Government-owned property, equipment and facilities, expediting
assistance, etc.

(7) Subcontracting. To be weighted inversely proportional to the amount of subcontracting. Where
80 percent or more of the work is to be subcontracted, use 0.03. The weighting should be increased
proportionately to 0.12 where all the work is performed by the contractors own forces.

Assistance by Government 5
Subcontracting 25
TOTAL
100%

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215.404-73-102 Alternate Structured Approaches A-E Contracts.

(a) The prenegotiation profit objective for a firm-fixed price A-E (including surveying and mapping)
contract, contract modification, or task order will be determined as described in, Engineering Pamphlet
(EP) 715-1-7, A-E Contracting in USACE, and as provided for below. The profit object for all other types of
A-E contracts will be determined IAW DFARS 215.404-71.

Profit Objective =
Cost x (Technical Complexity Factor + Length Factor + Support of Socioeconomic Program Factor)

Where:
(1) Cost is the total estimated costs, including general and administrative costs, of the prime
contractor and any subcontractors, exclusive of any profit. However, normal profit need not be
deducted from the prices for commercial supplies or services (such as airfares, reproduction, lab tests,
express mail and materials) in developing the cost base.

(2) Technical complexity factor will vary from 0.05 for low complexity (design of simple road repaving
or routine boundary survey verification) to 0.10 for high complexity (design of nuclear chemistry
laboratory or the design of the remediation of a very unusual and complex hazardous waste site).
Consider the nature of the work, degree of management involvement required, schedule constraints,
amount of Government assistance, and availability of design criteria.

(3) Length factor is 0.02 for a contract action of 1 month or less, and increased proportionately to
0.04 for a contract action of 21 months or longer. Consider the time necessary to complete the
substantive portion of work, including option periods.

(4) Support of socioeconomic programs factor will vary from 0.00 for a prime contractor (including a
small business prime contractor) who plans no subcontracting, to 0.02 for a contractor who
demonstrates exceptional program support. Consider the contractors past record as well as the
instant contract with regard to mentoring and subcontracting with small businesses, small
disadvantaged businesses, and historically black colleges and universities and minority institutions.

(b) When the facilities capital cost of money is proposed by the contractor and verified, reduce the profit
objective as described in DFARS 215.404-73(b)(2).

15.406-1-100 Prenegotiation Objectives .
For sole source actions and contract modifications above the SAT, a formal Prenegotiation Objectives
Memorandum (POM/PNO) must be prepared for all negotiations. An informal POM is required for actions
below the SAT. The scope and depth of both formal and informal POMs should be directly related to the
actions dollar value, importance and complexity. All POMs shall be approved by a PCO or ACO, within the
limits of their warrants and designation letters.


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SUBPART 15.5 PREAWARD, AWARD, AND POSTAWARD NOTIFICATIONS, PROTESTS, AND
MISTAKES

15.503-100 Notifications to Unsuccessful Offerors.
Preaward notices. For A-E contracts, refer to FAR Part 36, as supplemented by the DFARS, AFARS and EP
715-1-7.

15.504-100 Award to Successful Offeror.

(a) All award letters issued by USACE contracting officers to contractors will include the following
statement. This statement shall also be read to the contractor at the postaward conference by a USACE
official, preferably the PCO, either in person or telephonically. The names and contact information of both
the PCO and ACO, if one has been appointed, shall also be provided to the contractor.

Only a warranted Contracting Officer (either a Procuring Contracting Officer (PCO) or an
Administrative Contracting Officer (ACO)), acting within their delegated limits, has the authority to
issue modifications or otherwise change the terms and conditions of this contract. If an individual
other than the Contracting Officer attempts to make changes to the terms and conditions of this
contract you shall not proceed with the change and shall immediately notify the Contracting
Officer.

15.505-100 Preaward Debriefing of Offerors.
For A-E contracts, see FAR Part 36, as supplemented by the DFARS, AFARS and EP 715-1-7.

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SUBPART 16.1 SELECTING CONTRACT TYPES

16.103-100 Negotiating Contract Type.
The contracting officer must prepare a D&F justifying the contract type IAW ASA(AL&T) Memorandum
dated 20 December 2011. The HCA has been delegated the authority to approve the D&F for all actions
greater than $250 million. The Regional PARCs have been delegated the authority to approve the D&F
for all actions greater than $100 million but not exceeding $250 million.

SUBPART 16.4 INCENTIVE CONTRACTS

16.405-2-100 Cost-Plus-Award-Fee (CPAF) Contracts.

(a) Regional PARCs are delegated authority, without power of redelegation, to appoint the Award Fee
Determining Official (AFDO) on cost-plus award-fee contracts.
(b) D&F for CPAF: All CPAF contract type actions, including actions with both fixed price and CPAF
elements (hybrid contracts), require a D&F approved by the Regional PARC (as delegated by HCA)
prior to issuance of the solicitation.
(c) A Checklist for Appointment of Award Fee Determining Official (AFDO) for CPAF Contracts may be
found at UAI Appendix 16-1 and CPAF PIL 2011-10-R1.

SUBPART 16.5 INDEFINITE-DELIVERY CONTRACTS

16.504-100 Indefinite-Quantity Contracts.

(c) Multiple Award Preference. Applicable to the planning of acquisitions other than acquisition of A-E,
the contracting officer shall explore every opportunity to award Multiple Award Task/Delivery Order
Contract (MATOC) pools for the same or similar supplies or services to two or more sources on both an
unrestricted and restricted/set-aside basis. Market research shall be documented in the contract file (or
acquisition plan as appropriate) to support the decision making process.

16.505-100 Ordering.

(b) Orders under multiple-award contracts--

(2) Exceptions to fair opportunity process. The format for documenting the exception to fair
opportunity can be found at FAR 16.505(b)(2)(ii).

(6) Task-order and Delivery-order ombudsman. The HCA has delegated task/delivery order
ombudsman authority to each Regional PARC and Deputy PARC for their area of responsibility. All
Districts/Centers shall identify their Regional PARC and Deputy PARC as the primary and secondary
ombudsmen, respectively, for all multiple award and task/delivery order contracts. The
ombudsman shall have the responsibilities and authorities stated at AFARS 5116.505.

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(c) Special Solicitation and Contract Requirement. The following requirement shall be included in all
MATOC solicitations and resultant contracts:

In accordance with FAR 16.505(b)(6), contracting officers shall identify in MATOC
solicitations and contracts the individual(s) that have been appointed as primary
ombudsman and secondary ombudsman respectively for USACE:

Primary:
(Insert name of Regional PARC and mailing address, phone number, e-mail address)

Secondary:
(Insert name of Deputy PARC and mailing address, phone number, e-mail address)

(1) A contractor who receives an award under a multiple award contract may contact the
ombudsman with a complaint concerning the award of a particular task/delivery order placed under
the multiple award contract.

(2) The contractor is encouraged to first try to resolve the issue with the task order contracting
officer prior to contacting the ombudsman. Ombudsman complaints sent via e-mail are acceptable;
however, contractors are encouraged to identify in the subject line of the e-mail Ombudsman
Complaint to ensure appropriate and prompt attention by the ombudsman.

(3) Upon review of the facts, the ombudsman will determine whether the contractor was afforded a
fair opportunity consistent with the procedures in the contract and either:

(i) Deny the contractors complaint; or,
(ii) Require the contracting officer take corrective action regarding the complaint;

(4) The ombudsman will communicate their determination on the matter to the contractor and the
contracting officer.

SUBPART 16.6 TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

16.603-100 Letter contracts.
Limitations. For application to emergency/disaster situations see subpart 17.74.

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PART 17 SPECIAL CONTRACTING METHODS

SUBPART 17.2 OPTIONS

17.200-100 Scope of Subpart.
The FAR does not preclude the use of options in services involving the construction, alteration, or repair
(including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real
property; architect-engineer services; and research and development services. When it is determined
necessary to include an option(s) under those contract solicitations, the contracting officer will include
the justification required by FAR 17.205 in the contract file. (Note that for sealed bid solicitations, DFARS
217.208 precludes the use of options unless there is a reasonable likelihood that the options will be
exercised (10 USC 2305(a)(5)) and this limitation applies to contract or actions excluded by FAR
17.200).

SUBPART 17.5 INTERAGENCY ACQUISITIONS

17.500-100 Scope of Subpart Proper Use of Non-DoD Contracts.
Districts/Centers and the contracting officer shall follow the FAR, DFARS, and AFARS when conducting
acquisitions using Non-DoD contracts. Decisions regarding this type of contract action should involve
the entire Project Delivery Team including Resource Management, Office of Counsel, and Project
Management. Note: an non-economy act order is an order placed with specific statutory authority for
the order to be placed and unless an order meets the definition of a non-economy act order, it is an
economy act order. An economy act order does not extend the life of appropriations - for additional
information, refer to DoD FMR, Vol. 11A, Chapters 2, 3, & 18; DoDI 4000.19, and Chapter 3, Section
030204 of DoD FMR (7000.14-R).

SUBPART 17.74 UNDEFINITIZED CONTRACT ACTIONS

217.7404-1-100 Authorization.

(a) In accordance with the delegation of authority from the HCA, Regional PARCs are authorized to
approve an undefinitized contract action (UCA). The below process is to be followed:

Prior to entering into a UCA, approval shall be obtained from the Regional PARC. Documentation shall
include:

(1) A full explanation as to the need to begin performance before definitization, including the
adverse impact on agency requirements resulting from delays in beginning performance.

(2) A complete written description of the requirement and the rationale for using a UCA as opposed
to a fully negotiated contract or order.

(3) If including requirements for non-urgent spare parts and support equipment in a UCA, the
request shall demonstrate that inclusion of the non-urgent items is consistent with good business
practices and in the best interest of the United States.

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(4) If modifying the scope of a UCA when performance has already begun, the request shall
document that the modification is consistent with good business practices and in the best interests
of the United States.

(b) Unpriced change orders/modifications (UCOs) are not considered undefinitized contract actions
(UCAs). Refer to Part 43 for additional information on UCOs.

217.7405-100 Plans and Reports.

(a) All UCAs, regardless of amount, must be reported by the DCC/CCC to the Regional PARC. UCAs
include letter contracts, and undefinitized orders issued against basic ordering agreements or
task/delivery order contracts. Within five (5) working days of issuing the UCA, documentation and a
definitization schedule IAW DFARS 217.7404-3 shall be submitted to the Regional PARC, reporting the
use of a UCA:

(b) Actions submitted to the Regional PARC shall be forwarded by the DCC/CCC. In the event of any
UCA that will not be definitized as scheduled, the contracting officer shall submit written notification to
the Regional PARC via the DCC/CCC at least 45 days prior to the 180 day definitization deadline or, in the
case of percentage of funds obligated, at least 45 days prior to the anticipated date on which funding
will exceed 50% of the not-to-exceed (NTE) price. The notification shall explain the reasons the UCA has
not been definitized and provide a revised milestone schedule for definitization with corrective actions
the contracting officer will take to ensure the revised definitization schedule will be met.

PART 18 RESERVED

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PART 19 SMALL BUSINESS PROGRAM

SUBPART 19.2 POLICIES

19.201-100 General Policy.

(a) To implement AFARS 5119.201(d)(6), the USACE Associate Director, Office of Small Business
Programs (OSBP), shall be afforded an opportunity to serve as intermediate rater or comment upon and
contribute to the performance evaluation of Deputies for Small Business at USACE Centers. The
Assistant Directors OSBP at Divisions shall be afforded the same opportunity for the Deputies for Small
Business at USACE Districts.

(b) Small Business Specialists shall review and document recommendations on the DD Form 2579 under
the following circumstances:

(1) All acquisitions over $10,000, including orders placed against FSS contracts authorized under
FAR Part 8.4, unless:

(i) Under the SAT; and,

(ii) 100% set aside for small business concerns (IAW FAR 19.502-2).

(2) All acquisitions proposed for task order solicitations under unrestricted MATOCs prior to
solicitation, when:

(i) The dollar value is below the SAT (comply with FAR 19.502-2); or

(ii) There are both restricted and unrestricted MATOC pools available and the acquisition
strategy proposes use of the unrestricted MATOC pool. Exception: No DD Form 2579 is required
when following MATOC ordering instructions that specify when to use the restricted pool and
when to use the unrestricted pool.

(3) For contract modification (out-of-scope modifications).

(c) District Commanders and Center Directors are not precluded from requiring Small Business
Specialists review of actions under the SAT that are 100% set aside for small business to assist with
identifying opportunities for other sub-category small business set-aside programs (e.g., HUBZone, 8(a),
WOSB, and SDVOSB) in order to meet specific sub-category small business goals.

(d) District Commanders and Center Directors shall forward the nominee for Deputy for Small Business,
along with a summary of qualifications, to the USACE Associate Director OSBP, for review and
coordination prior to appointment. The Secretary of the Army, Director of Small Business Programs
must be afforded an opportunity, prior to an appointment, to review and provide concurrence with
individual appointments of Associate Directors, Assistant Directors, and other Small Business Specialists
at contracting activities, contract management activities, subordinate activities, and direct reporting
units (see definitions in DODD 4205.01).

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(e) The Secretary of the Army, Director of Small Business Programs is authorized to waive the DODD
4205.01 requirement to appoint a full-time Associate Director, Assistant Director, and other Small
Business Specialists and to appoint a part-time individual where circumstances justify. The HQ USACE
Small Business Office will assist District Commanders and Center Directors by preparing and
coordinating waiver requests.

SUBPART 19.5 SET-ASIDES FOR SMALL BUSINESS

19.502-2-100 Total Small Business Set-Asides.

Acquisitions under the SAT shall be automatically reserved for small business concerns, and should not
be solicited under unrestricted MATOCs or other unrestricted means (IAW FAR 19.502-2). Also refer
to DFARS 219.502-2 for further guidance on total set asides for A-E services for military construction or
family housing, other construction and dredging.

19.502-4-100 Multiple-Award Contracts and Small Business Set-Asides.
See FAR 19.502-4 for rules on set-asides when developing MATOC Acquisition Plans.

SUBPART 19.7 THE SMALL BUSINESS SUBCONTRACTING PROGRAM

19.705-6-100 Postaward Responsibilities of the Contracting Officer.

(a) The contracting officer shall monitor contractors compliance for the submission of the required
Individual and Summary Subcontracting Reports (ISR and SSR) using the Electronic Subcontracting
Reporting System (eSRS) for reporting periods ending 31 March and 30 September. Contracting officers
will accept or reject submitted eSRS reports within one week of notification that a report is awaiting
acceptance in the system.

(b) Solicitations shall include point of contact information for the contracting officer and an alternate
for acceptance or rejection of the submitted reports. At a minimum, the information shall include:
names, phone numbers, contracting office address, and email addresses.

(c) The contracting officer is responsible for oversight of contractor compliance in meeting the limitation
on subcontracting requirements.


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PART 20 RESERVED

PART 21 RESERVED

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PART 22 APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

SUBPART 22.3 CONTRACT WORK HOURS AND SAFETY STANDARDS ACT

22.302-100 Liquidated Damages and Overtime Pay.

(c) The Chief Counsel and Deputy Chief Counsel, HQ USACE, are delegated authority to waive or adjust
Contract Work Hours and Safety Standards Act (CWHSSA) liquidated damages totaling $500 or less,
when such damages are nonwillful, inadvertent, and occurred despite the exercise of due care by the
contractor or its agent.

SUBPART 22.4 LABOR STANDARDS FOR CONTRACTS INVOLVING CONSTRUCTION

22.406-6-100 Payroll and Statements.

(a) The Special Contract Requirement (SCR), Contractor Supply and Use of Electronic Software for
Processing Davis-Bacon Act Certified Labor Payrolls (April 2011), below, encourages contractors to
supply and use a commercially-available electronic system to process and submit certified Davis-Bacon
Act (DBA) payrolls electronically to the Government. Contractor compliance with DBA requirements can
be a complex requirement for both contractors and the Government in the performance of larger
construction contracts that typically include a large number and variety of workers within both the
prime contractors workforce and the subcontractors workforces. Experience and analysis indicate that
contractors use of these commercially-available electronic payroll processing systems aids them in their
compliance with the requirements to prepare, process, and maintain the relevant payrolls and basic
records during the course of work under construction contracts, and providing data on these payrolls
and related basic records for the required 3 years after contract completion.

(1) Accuracy, timeliness, efficiency, and effectiveness of the prime contractor and the sub-
contractors are normally improved by the use of these electronic systems to process weekly
payrolls. These benefits are greatest when the duration, cost, number of subcontractors and types
of labor classifications associated with the contract are substantial, and the resultant payroll
processing activities are more complex.

Contractor Supply and Use of Electronic Software for Processing Davis-Bacon Act Certified
Labor Payrolls April 2011

(a) The contractor is encouraged to use a commercially-available electronic system to process and
submit certified payrolls electronically to the Government. The requirements for preparing, processing
and providing certified labor payrolls are established by the Davis-Bacon Act as stated in FAR clause
52.222-8, Payrolls and Basic Records and FAR clause 52.222-13, Compliance with Davis-Bacon and
Related Act Regulations.

(b) If the contractor elects to use an electronic Davis-Bacon Act payroll processing system, then the
contractor shall be responsible for obtaining and providing for all access, licenses, and other services

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required to provide for receipt, processing, certifying, electronically transmitting to the Government,
and storing weekly payrolls and other data required for the contractor to comply with Davis-Bacon and
Related Act Regulations. When the contractor uses an electronic Davis-Bacon Act payroll system, the
electronic payroll service shall be used by the contractor to prepare, process, and maintain the relevant
payrolls and basic records during all work under this construction contract and the electronic payroll
service shall be capable of preserving these payrolls and related basic records for the required 3 years
after contract completion. If the contractor chooses to use an electronic Davis-Bacon Act payroll
system, then the contractor shall obtain and provide electronic system access to the Government, as
required to comply with the Davis-Bacon and Related Act Regulations over the duration of this
construction contract. The access shall include electronic review access by the Government contract
admin office to the electronic payroll processing system used by the contractor.

(c) The contractors provision and use of an electronic payroll processing system shall meet the
following basic functional criteria: commercially available; compliant with appropriate Davis Bacon Act
payroll provisions in the FAR; able to accommodate the required numbers of employees and
subcontractors planned to be employed under the contract; capable of producing an Excel spreadsheet-
compatible electronic output of weekly payroll records (format at
http://www.rmssupport.com/guides.aspx) for export in an Excel spreadsheet to be imported into the
contractors Quality Control System (QCS) version of Resident Management System (RMS), that in turn
shall export payroll data to the Governments Resident Management System (RMS); demonstrated
security of data and data entry rights; ability to produce contractor-certified electronic versions of
weekly payroll data; ability to identify erroneous entries and track the data/time of all versions of the
certified Davis-Bacon Act payrolls submitted to the government over the life of the contract; capable of
generating a durable record copy, that is, a CD or DVD and PDF file record of data from the system
database at end of the contract closeout. This durable record copy of data from the electronic D-B
payroll processing system shall be provided to the Government during contract closeout.

(d) All contractor-incurred costs related to the contractors provision and use of an electronic payroll
processing service shall be included in the contractors price for the overall work under the contract.
The costs for Davis-Bacon Act compliance using electronic payroll processing services shall not be a
separately bid or reimbursed item under this contract.
(End of special contract requirement)

22.407-100 Solicitation Provisions and Contract Clauses/Special Contract Requirements.

(a) The DCC/CCC is hereby delegated the authority to approve wage rates submitted under the
procedures of FAR 52.222-16, Approval of Wage Rates, after coordination with the local Contractor
Industrial Relations (CIR) Specialist.

(b) In accordance with 22.406-6-100, specification writers shall insert the SCR, Contractor Supply and
Use of Electronic Software for Processing Davis-Bacon Act Certified Labor Payrolls (April 2011), in
Section 00 73 00 (Supplementary Conditions) of the technical specifications for construction contracts,
subject to Davis-Bacon Act requirements, with a value greater than $5 Million, or a period of
performance greater than one year. Specification writers may insert the SCR in contracts not meeting
these thresholds.

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SUBPART 22.5 Use of Project Labor Agreements on Federal Construction Projects.

22.503-100 Policy

USACE implementing guidance is at PIL 2011-01-R1.


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PART 23 ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

SUBPART 23.1 SUSTAINABLE ACQUISITION POLICY

23.103-100 Sustainable Acquisition
USACE shall advance sustainable acquisition IAW FAR Part 23 and the Army Green Procurement Guide.
The project delivery team (PDT) shall coordinate with the contracting officer to ensure that 95 percent
of new contract actions for supplies and services (including construction) require that products within
the requirement are as listed at FAR Part 23.103(a).

The PDT shall review each work requirement to determine if the contract action involves any of the
products listed at the Sustainable Facilities Tools (SFT) Federal Green Products Compilation
(http://www.sftool.gov/greenprocurement) (e.g. floor cleaners).

(a) If the work requirement contain items listed:

(1) The PDT may utilize the Federal Green Products Compilation specification in the
performance work statement (PWS) (e.g. floor cleaners must have a minimum of 77% bio-
based content). Alternatively, the PWS can simply refer the contractor to the Federal Green
Products Compilation for the most current specifications; and

(2) The Federal Green Products Compilation will indicate the applicable FAR reference for each
product (e.g. for floor clearers see FAR Subpart 23.4 Use of Recovered Materials and Bio-
based Products). The contracting officer shall ensure that the appropriate FAR clauses are
included in all applicable contract actions.

(b) The contracting officer shall choose the appropriate clause and data element (in FPDS) that
reflect the requirements of sustainability incorporated into the contract or order. (Note: If there
is a combination of the attributes on the contract that does not exist in the list below, choose
one from the list that most closely reflects the situation on the contract).

The complete list of green FAR clauses includes:
(i) 52.204-4 - Printed and Copied Double-Sided on Postconsumer Fiber Content Paper
(ii) 52.223-1 Biobased Product Certification
(iii) 52.223-2 - Affirmative Procurement of Biobased Products Under Service and Construction
Contracts
(iv) 52.223-4 - Recovered Material Certification
(v) 52.223-9 - Estimate of Percentage of Recovered Material Content for EPA-Designated
Items (or 52.223-9 - Alternate I)
(vi) 52.223-10 - Waste Reduction Program
(vii) 52.223-11 - Ozone Depleting Substances
(viii) 52.223-15 - Energy Efficiency in Energy-Consuming Products
(ix) 52.223-16 - IEEE 1680 Standard for the Environmental Assessment of Personal Computer
Products (or 52.223-16 - Alternate I)

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(x) 52.223-17 - Affirmative Procurement of EPA-designated Items in Service and Construction
Contracts
(xi) 52.223-19 - Compliance with Environmental Management Systems (applies to GOCOs)

(c) Reporting Sustainable Acquisition. The contracting officer shall ensure that each contract action
report in the Federal Procurement Data System (FPDS-NG) includes the appropriate data
element for recovered materials/sustainability according to the DoD guidance (see DPAP
Memorandum, dated 04 October 2011 at the hyperlink).


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SUBPART 24.1 PROTECTION OF INDIVIDUAL PRIVACY

24.101-100 Definitions
Personally Identifiable Information (PII) is information which can be used to distinguish or trace and
individuals identity, such as his or her name social security number, military rank or civilian grade,
salary, date and place of birth and mothers maiden name, or biometric data, including any other
personal information which is linked or linkable to a specified individual. The Privacy Act of 1974
requires the Government to protect personal information that is contained in a system of records. A
system of records is a group of records under the control of the Government from which personal
information about an individual is retrieved by the name of the individual, or by some other identifying
number, symbol, or other identifying particular assigned, that is unique to the individual. The
affirmative responsibility to protect personal information extends to contractors who design, develop,
or operate (including access) a system of records for the Government. Some recent incidents have
threatened the security of PII under the control of contractors, thereby signifying that the Army must
take further actions to ensure the protection of PII during the performance of its contracts.

24.103-100 Procedures

(a) Contracting Officers must ensure that applicable solicitations and contracts reference the
appropriate DoD procedures, DoD Directive 5400.11 and 5400.11-R (DoD Privacy Program) and other
DoD implementation issuances. Many of these documents can be found on the DoD Privacy and Civil
Liberties Office website at: http://dpclo.defense.gov/privacy/About_The_Office/policy_guidance.html.

(b) Protected Health Information (PHI) and other community-specific protected information will be
handled as PII and will conform to any additional measures set forth by such community of interest.
Solicitations and contracts that require the participation, performance, or assistance in the performance
of a function or activity involving the use or disclosure of PHI, will reference DoD 6025.18-R (DoD Health
Information Privacy Regulation) and DoD 8580.02-R (DoD Health Information Security Regulation).
More information on PHI can be found at: http://www.tricare.mil/tma/privacy/hipaa.aspx. The PHI
breach notification can be found at:
http://www.hhs.gov/ocr/privacy/hipaa/administrative/breachnotificationrule/index.html.

(c ) Program Managers (PMs) and other requiring activity personnel will examine their work statements
for new contracts and orders to identify instances in which the contractor will be required to design,
develop or operate a system of records. The PMs will ensure that the work statement explicitly
identifies any such system, along with the design, development, or operation work to be performed, so
that contractors will be fully aware of and accountable for their responsibilities under the Privacy Act
and agency-level regulations. UAI Appendix 24-1 contains sample PII Requirements language. This
language is advisory only; requiring activities are encouraged to tailor the language as necessary to fit
each unique requirement.

(d) The PMs and other requiring activity personnel will ensure that the work statements for new
contracts and orders that call for the design, development or operation of a system of records include
procedures to follow when a PII breach or incident occurs. UAI Appendix 24-2 contains sample PII

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Breach Contractual language. This language is advisory only; requiring activities are encouraged to tailor
the language as necessary to fit each unique requirement.

(e) Government surveillance plans for contracts that call for the design, development or operation of a
system of records should include monitoring of the contractors adherence to Privacy Act/PII
regulations. Also Government monitors should document contractor-caused breaches of/or incidents
related to PII, and other instances in when the contractor did not adhere to Privacy Act/PII contractual
requirements, in past performance reports.

SUBPART 24.2 FREEDOM OF INFORMATION ACT

24.203-100 Procedures
Contracting officers must ensure that all freedom of information act requests and responses are
coordinated with the Office of Counsel and the Office of Counsel will coordinate the action for response
to the requestor and for any applicable concurrences or approvals required by the HCA.
PART 25 FOREIGN ACQUISITION

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SUBPART 25.2 BUY AMERICAN ACT CONSTRUCTION MATERIALS

25.202-100 Exceptions.

(a) In accordance with AFARS 5125.202(a)(1), the HCA has redelegated authority to make the
determination that the use of a particular domestic construction material is not available for use in
particular contracts as follows:

(i) At one level above the contracting officer for acquisitions valued at or below the SAT;

(ii) At the chief of the contracting office for acquisitions with a value greater than the SAT but less
than $1,500,000; or

(iii) At the Regional PARC for acquisitions valued at $1,500,000 or more.

PART 26 RESERVED

PART 27 RESERVED

PART 28 BONDS AND INSURANCE

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SUBPART 28.3 INSURANCE

28.305-100 Overseas Workers Compensation and War Hazard Insurance.
See current PIL 2012-12 for instruction regarding the Defense Base Act.

PART 29 RESERVED

PART 30 RESERVED
PART 31 CONTRACT COST PRINCIPLES AND PROCEDURES

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SUBPART 31.1 APPLICABILITY

31.105-100 Construction and A-E Contracts.
In accordance with FAR 31.105(d)(2)(i)(b), equipment ownership and operating costs shall be
determined using EP 1110-1-8, Construction Equipment Ownership and Operating Expense Schedule.

31.105-101 Special Contract Requirements.
The contracting officer shall insert the SCR, Equipment Ownership and Operating Expense Schedule, in
Section 00 73 00, in all solicitations and contracts for construction within the United States that are
expected to exceed the micro-purchase threshold.

Equipment Ownership and Operating Expense Schedule (MAR 1995)

(a) This special contract requirement does not apply to terminations. See 52.249-5000, Basis for
Settlement of Proposals, and FAR Part 49.

(b) Allowable cost for construction and marine plant and equipment in sound workable condition
owned or controlled and furnished by a contractor or subcontractor at any tier shall be based on actual
cost data for each piece of equipment or groups of similar serial and series for which the Government
can determine both ownership and operating costs from the contractor's accounting records. When
both ownership and operating costs cannot be determined for any piece of equipment or groups of
similar serial or series equipment from the contractor's accounting records, costs for that equipment
shall be based upon the applicable provisions of EP 1110-1-8, Construction Equipment Ownership and
Operating Expense Schedule, Region [insert Roman numeral for the appropriate region of the schedule].
Working conditions shall be considered to be average for determining equipment rates using the
schedule unless specified otherwise by the contracting officer. For equipment not included in the
schedule, rates for comparable pieces of equipment may be used or a rate may be developed using the
formula provided in the schedule. For forward pricing, the schedule in effect at the time of negotiations
shall apply. For retroactive pricing, the schedule in effect at the time the work was performed shall
apply.

(c) Equipment rental costs are allowable, subject to the provisions of FAR 31.105(d)(ii) and FAR
31.205-36, Rental Costs. Rates for equipment rented from an organization under common control,
lease-purchase arrangements, and sale-leaseback arrangements, will be determined using the schedule,
except that actual rates will be used for equipment leased from an organization under common control
that has an established practice of leasing the same or similar equipment to unaffiliated lessees.

(d) When actual equipment costs are proposed and the total amount of the pricing action exceeds the
SAT, the contracting officer shall request the contractor to submit either certified cost or pricing data, or
partial/limited data, as appropriate. The data shall be submitted on Standard Form 1411, Contract
Pricing Proposal Cover Sheet.
(End of special contract requirement)
PART 32 CONTRACT FINANCING

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SUBPART 32.1 NON-COMMERCIAL ITEM PURCHASE FINANCING

32.102-100 Description of Contract Financing Methods.
In accordance with FAR 32.102, DFARS 232.102(e)(2) Non-Commercial Item Purchase Financing, and
FAR Clause 52.232-5, when the contracting officer determines that payment for materials delivered to a
location other than the work site during a construction contract is in the Government's best interest, the
contracting officer shall insert the contract clause at 52.232-5000, Payment for Material Delivered Off-
Site, in solicitations and contracts.

SUBPART 32.7 CONTRACT FUNDING

32.703-2-100 Contracts Conditioned Upon Availability of Funds Civil Works Continuing
Contracts.

(a) The contracting officer, when appropriate, shall insert the contract clause at 52.232-5001,
Continuing Contracts, Special Continuing Contract for Civil Works Projects Managed by the USACE
[DEVIATION], in solicitations and contracts for civil works water resource projects that have been
specifically adopted by Congress in authorizing legislation and for which future fiscal year funding is
provided in the budget. This shall be used for all civil works projects when funds are appropriated for
the project from either the operation and maintenance (O&M) account in the Energy and Water
Development Appropriations Act (E&WDAA) or the O&M portion of the Mississippi River and Tributaries
account in the E&WDAA and sufficient funds are not available to complete the contract. The contracting
officer must insert the sum being reserved in the clause and reserve this amount stated in subsection (a)
of the clause at contract award and modify the contract each fiscal year to reflect the amount reserved.
This clause is currently required through 30 September 2010 IAW Section 103 of the Energy and Water
Development Appropriations Act, 2010, Public Law 111-85. If future appropriations acts continue in the
same manner, the requirement will be extended as appropriate beyond FY2010. See the annual
Engineering Circular on the Execution of the Civil Works program for additional guidance and restrictions
on the use of this clause.

(b) The language for ALTERNATE I of clause 52.232-5001, Continuing Contracts, Special Continuing
Contract for Civil Works Projects Managed by the USACE [DEVIATION], may be used in solicitations and
contracts for civil works water resource projects that have been specifically adopted by Congress in
authorizing legislation but for which future fiscal year funding is not provided in the budget or when use
of the clause at DFARS 252.232-7007, Limitation of Governments Obligation, could be used. The
contracting officer must insert the sum being reserved in the clause and reserve this amount stated in
subsection (a) of the clause at contract award and modify the contract each fiscal year to reflect the
amount reserved. Section 103 of the Energy and Water Development Appropriations Act, 2010, Public
Law 111-85. If future appropriations acts continue in the same manner, the requirement will be
extended as appropriate beyond FY2010.

32.705-2-100 Contract Clauses.
As prescribed at 32.703-2-100, the contracting officer shall insert the clause at 52.232-5001, Special
Continuing Contract for Civil Works Project Managed by the USACE [DEVIATION].

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SUBPART 33.1 PROTESTS

33.102-100 General.

(a) Contracting officers retain the inherent authority to resolve protests by taking corrective action.
Contracting officers may also communicate with the protester in an attempt to discuss withdrawal of
the protest.

(1) All communication to the Office of the Chief Counsel shall be addressed to HQUSACE, (Attn:
CECC-C).

(b) In the event an agency protest is sustained, the protester shall be advised of its right to file a claim
for costs to the contracting officer within 60 days after receipt of the agencys decision. Failure to file
the claim within that time may result in forfeiture of the protesters right to recover its costs. The
contracting officer will evaluate the claim and submit to the Office of the Chief Counsel through Counsel
channels, within 30 days, a recommendation as to payment of appropriate agency protest costs.

33.102-101 USACE Automated Legal System Matter Tracking System.
The field office attorney assigned to each agency or GAO bid protest shall ensure that the protest data is
entered into the Matter Tracking System (MTS) Procurement Bid Protest Notebook, as soon as
practicable. The attorney is further responsible for promptly updating and ultimately closing the
protests MTS file, as appropriate.

33.103-100 Protests to the Agency.

(a) Where appropriate, alternative dispute resolution procedures may be used to resolve protests.

(b) The USACE agency protest process provides an independent review at a level above the contracting
officer. Procedures for processing an agency protest are set out below. In response to each agency
protest, the appropriate contracting officer shall submit an agency protest report, with the analysis and
documentation set forth in FAR 33.104(a)(3) and 33.190-101. The deciding official shall issue the
decision within 35 days after receiving an agency protest, provided, however, that if a decision will not
be issued within 35 days, the deciding official shall notify the protester, within that period, of the date
when a decision will be issued.

(i) The Chief Counsel is authorized to decide all agency protests, with power of delegation; and the
Chief Counsel has delegated the authority to decide agency-level protests to the following Division
or Center Counsels: Lakes and Rivers Division, Mississippi Valley Division, North Atlantic Division,
Northwestern Division, Pacific Ocean Division, South Atlantic Division, Southwestern Division, South
Pacific Division, Transatlantic Division, and the Huntsville Engineering and Support Center. Such
authority is without the power of redelegation.

(ii) The Chief Counsel has delegated authority to decide agency level protests in the Humphreys
Engineer Center Support Activity and the Engineer Research Development Center to the Assistant
Chief Counsel for Procurement Law and Contract Disputes.

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(iii) Divisions and Centers with delegated authority shall furnish copies of all final agency decisions
to the Office of the Chief Counsel, within five days after the decision is signed.

(iv) The Office of the Chief Counsel shall be advised of any protest of national significance or
precedential nature. The Chief Counsel may choose to intervene in any case, to include removing
the case from the general delegation. Division and Center Counsel may consult with the Office of
the Chief Counsel in any protest as deemed necessary.

(v) In those cases in which the Chief Counsel has retained the authority to decide the agency bid
protest, the District shall submit the contracting officers report to the Division Counsel for review
and comment. The Division Counsel then furnishes the report with comments to the Office of the
Chief Counsel (Attn: CECC-C) for final decision. Center Counsels shall submit the contracting officers
report directly to CECC-C for final decision. CECC-C requires two copies of the contracting officers
report be furnished.

(f) Action upon receipt of protest.

(1) Upon receipt of a protest before award, a contract may not be awarded, pending agency
resolution of a protest, unless contract award is justified, in writing, for urgent and compelling
reasons or is determined, in writing, to be in the best interest of the government. Such justification
shall be approved by the HCA on a non-delegable basis, with all D&F documents approved by the
DASA(P) in accordance with AFARS 5133.104(b) and (c).

(2) Upon receipt of a protest within 10 days after contract award or within five days after a
debriefing date offered to the protester under a timely debriefing request IAW FAR 15.505 or
15.506, whichever is later, the contracting officer shall immediately suspend performance pending
resolution of the protest within the agency, unless continued performance is justified, in writing, for
urgent and compelling reasons or is determined, in writing, to be in the best interest of the
Government. Such justification shall be signed by the HCA on a non-delegable basis, with all D&F
documents approved by the DASA(P) in accordance with AFARS 5133.104(b) and (c).

33.103-101 Disclosure of Government Estimate.
If, after bid opening, an apparent low bidder protests the reasonableness of the Government estimate,
the contracting officer shall provide the details of the Government estimate to the protester upon
receipt of complete details of the protesters estimate. The details of the Government and protesters
estimates are not to be disclosed to third parties.

33.103-90-100 Annual Agency Bid Protest Report.
A year-end report of all agency and GAO bid protest cases decided during the FY shall be submitted to
the Office of the Chief Counsel by each Division and Center Counsel. The report should include a
summary and analysis identifying the number of protests by District, types of decisions, repetitive issues,
trends, and any emerging guidance or patterns of decisions. The yearend report shall be submitted, no
later than 15 October to:

U.S. ARMY CORPS OF ENGINEERS; ATTN: CECC-C; 441 G STREET, NW; WASHINGTON, DC 20314-1000

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33.104-100 Protests to GAO.

(a) General Procedures. The Chief Counsel has the authority to determine the final agency position for
GAO protests, with power of delegation, and the Chief Counsel has delegated authority to determine
the final agency position for GAO protests to the following Division or Center Counsels: Lakes and Rivers
Division, North Atlantic Division, Northwestern Division, Pacific Ocean Division (for Alaska District only),
South Atlantic Division, South Pacific Division, Southwestern Division, Transatlantic Division, Engineer
Research and Development Center, and Huntsville Engineering and Support Center. Such authority
includes the power for Division Counsel to redelegate to the Districts. Delegated protests shall be
processed IAW procedures established by the respective Division Counsels.

(i) Offices with delegated authority must furnish copies of all final agency positions (excluding
exhibits) to the Office of the Chief Counsel, as soon as practicable after the position is signed. At
the discretion of the Chief Counsel, draft copies may be requested for review prior to
transmission to GAO.

(ii) Final agency positions include the agency report and agency response to protester
comments, as well as any dispositive motion submitted by the agency.

(iii) Division Counsels who have redelegated their authority shall determine oversight
requirements and issue policies to effect those requirements.

(1) The Chief Counsel has retained authority to determine the final agency position for GAO bid
protests in the Mississippi Valley Division, Humphreys Engineer Center Support Activity and Pacific
Ocean Division (for all Districts except Alaska). Counsel at such offices shall forward the contracting
officers report directly to the Office of the Chief Counsel within 15 days of the telephonic
notification from GAO, for determination of the final agency position on the protest. A copy shall be
simultaneously sent to the Division Counsel for review and comment. Each contracting officers
report submitted shall include the analysis and documentation set forth in 33.190-1-100.

(2) The Office of the Chief Counsel shall be advised of any protest of national significance or
precedential nature. The Chief Counsel may choose to intervene in any case, to include removing
the case from the general delegation. The Division and Center Counsel may consult with the Office
of the Chief Counsel in any protest as deemed necessary.

(3) Immediately after receipt of a complete copy of the protest, counsel assigned to the case should
consider whether a request for summary dismissal is appropriate. If summary dismissal of the
protest or certain grounds of the protest is warranted, a request must be submitted to the GAO
within five days, with a copy provided to each interested party.

(i) The written request should clearly indicate the protest number, the grounds of the protest
that should be dismissed, and the reasons for dismissal.

(ii) Where appropriate, counsel with delegated bid protest authority should contact the
assigned GAO attorney telephonically to inform them of the agencys intent to submit a request

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for summary dismissal. Subsequently, the request and supporting documents should be sent by
facsimile and e-mail to the GAO attorney and each interested party.

(iii) Counsel without delegated bid protest authority should advise the CECC-C attorney assigned
to the protest of any known bases for summary dismissal. Documents supporting the summary
dismissal request should be transmitted, primarily via e-mail or secondarily via facsimile, to
Office of the Chief Counsel.

(4) Each office of counsel responsible for responding to protests at the GAO must transmit via e-
mail and facsimile a written notice of appearance to the GAO, protester, CECC-C, and intervenor if
any, not later than three days after being notified of the protest by the Office of the Chief Counsel.

(i) The notice shall include the name, address, phone number, facsimile number, and e-mail
address of the attorney who will represent USACE in the protest.

(b) Protests before award.

(1) All requests to the Office of the DASA(P) for approval to award a contract or issue a notice to
proceed, notwithstanding a protest, shall be forwarded through the appropriate Regional PARC to
the USACE HQ Director of Contracting for processing and transmittal to DASA(P). Generally such
request shall be submitted to the USACE HQ Director of Contracting within three days of notice of
the protest. The request shall include a complete explanation for the need to award or proceed
with performance of the contract, including costs and other impacts, and the contracting officer's
report with the analysis and documentation set forth in FAR 33.104(a)(3). In addition, the request
shall address the likelihood of the agency successfully defending the protest on the merits. The
request shall be reviewed for legal sufficiency at the originating office and at each office required to
concur with the request.

(c) Protests after award. The findings for authorization of contract performance should be processed
IAW the requirements provided at 33.104-100(b)(1), Protests Before Award.

33.190-100 Contracting Officer's Reports on GAO and Agency Protests.

(a) In addition to the documents described in FAR 33.103(d) and 33.104(a)(3), each contracting officer's
report on an agency or GAO protest shall include:

(1) Findings of fact prepared with complete supporting documentation addressing all facts,
favorable and unfavorable to the contracting officer's position.

(2) Analysis by legal counsel with citation to pertinent decisions of the Comptroller General and
other relevant authority.

(b) The contracting officer's report shall not be released to any member of the public, including the
protester and other interested parties, without the prior approval of the office having authority to
decide an agency protest or to determine the final agency position on a GAO protest.


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(c) The contracting officers report should be assembled in a secure binder fastened at the left side with
a fastener that will permit the full page to be read. The index of all documents should be placed as the
first page. Each document should be separated by a divider with a tab attached. The contracting
officers statement should be paginated. Sizable files should be divided into two or more volumes. The
cover of the report should identify it as the protest file and include the file number. Drawings should be
folded and placed into an envelope in the binder. The solicitation/contract should be enclosed as a
separate exhibit if it is voluminous in size. With GAOs prior approval, the administrative report may be
submitted on a compact disc or via e-mail. If submitting an administrative report electronically, the
documents shall be submitted in .pdf format.

33.190-1-100 Bid Protest Action Report.
The requirement for after action reporting will be satisfied by entering the required data in the MTS Bid
Protest Notebook, described in 33.102-101, USACE Automated Legal System Matter Tracking System, as
soon as practicable. GAO bid protest decisions are posted on the Internet within 24 hours after they are
issued (unless subject to protective order), at: http://www.gao.gov/decisions/bidpro/bidpro.htm

SUBPART 33.2 DISPUTES AND APPEALS

33.203-100 Applicability - Agency Board of Contract Appeals for Civil Works Contracts.
The Armed Services Board of Contract Appeals is the agency board having jurisdiction over appeals
arising from final decisions of the contracting officer on USACE contracts. The procedures for handling
contract appeals are set forth in Appendix 33-1 Contract Requests, Claims, and Appeals.

PART 34 RESERVED

PART 35 RESERVED

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36.102-100 Definitions.
Metric Ombudsman as defined by Public Law 104-289, Savings in Construction Act of 1996, is the
advocate responsible for reviewing and responding to complaints from prospective bidders,
subcontractors, suppliers, or their designated representatives regarding the use of metric standards and
materials.

36.104-100 Policy.

(a) The Deputy Assistant Secretary of the Army (DASA(I,L&E)) in a 19 May 1997 memorandum,
appointed the USACE PARC (CEPR-ZA), now the USACE HQ Director of Contracting (CECT-ZA) as the DA
Metric Ombudsman and the Chief of Contracting Policy Division, Office of the PARC (CEPR-P), now Chief
of Contracting Policy Division, USACE HQ Directorate of Contracting (CECT-P), as the alternate DA Metric
Ombudsman. This responsibility extends to the U.S. Army Reserve (USAR) and the Army National Guard
(ARNG) projects under the execution of USACE. The Metric Ombudsman is to enforce PL 104-289 and
the DoD metric design policy by offering prime contractors the option of using metric concrete masonry
units and recessed lighting fixtures or inch-pound substitutes so that selection can be based on the total
installation price.

(b) Authority for Construction and A-E Contracting. Engineering Research and Development Centers
(ERDC) and associated laboratories are not authorized to procure construction or A-E services and shall
obtain contracting support from another District or Center.

SUBPART 36.2 SPECIAL ASPECTS OF CONTRACTING FOR CONSTRUCTION

36.201-100 Evaluation of Contractor Performance.

(a) Preparation of Performance Evaluation Reports.
(1) The ACO or PCO shall notify the contractor at the pre-construction conference of the elements
that will be used to evaluate performance. This notification shall be documented in the contract
file. Documentation to support the evaluation shall be collected and evaluated throughout the span
of the contract. Follow the dollar thresholds for evaluations in the current PIL, Contractor
Performance Assessments, Engineer Regulation (ER) 415-1-17, Construction Contractor Performance
Evaluations, and EP 715-1-7, A-E Contracting in USACE.

(2) An interim performance evaluation shall be prepared on contracts where a contractor's
performance has been generally unsatisfactory for any element for a period of three months, or as
appropriate. A new evaluation need not be prepared if unsatisfactory performance continues for
additional periods, but the files should be fully documented. An interim performance evaluation
shall also be prepared whenever the contractor's performance has been unsatisfactory for any
period that could affect overall contract performance. An interim performance evaluation shall be
submitted in the same manner as for completed contracts (ref: Subpart 42, ER 415-1-17 and EP 715-
1-7.

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(3) Prior to issuance of an interim unsatisfactory evaluation, the contractor shall be advised of the
basis for the evaluation and offered an opportunity to submit comments.

(4) After the issuance of an interim unsatisfactory rating, the ACO shall continue to document and
to reevaluate the contractor's performance. Documentation used in the re-evaluation process shall
address all new instances of unsatisfactory performance, as well as efforts made by the contractor
to improve performance deficiencies. Should the contractors performance on any evaluation
element change, the original interim rating may be amended with a written addendum which
reflects the change.

(5) The final report may be supplemented or amended as necessary through the contract closeout
and warranty period to reflect changes in the evaluation of performance elements caused by
resolution of contractor claims or compliance with warranty requirements.

(6) Following issuance of a final unsatisfactory evaluation, the contracting officer shall promptly
assess the circumstances to determine whether pursuit of a suspension or debarment action under
FAR Subpart 9.4 is appropriate. The contracting officer's rationale for or against such an action shall
be documented in writing and maintained in the contract file.

(7) The PCO will assure contract assessments are objective, fair, and timely. The PCO, in addition to
ensuring a fair and impartial process is followed, shall be assigned by Focal Points as an additional
Assessing Official (AO) for the purposes of receiving electronic notifications during the assessment
process. These notifications then allow the PCO to monitor the performance assessment process
and determine the need for and level of their involvement in assessment input. For A-E (ACASS) and
Construction (CCASS) contracts, the evaluating AO (separate from the PCO) and the Reviewing
Official (RO) shall be assigned from within the technical division (e.g., Operations, Engineering,
Construction, Planning) responsible for managing the contract. The roles and responsibilities of the
Focal Point, Contracting Officer, AOs, ROs, and Senior ROs are further defined under FAR Subpart 42.
When the contractor non-concurs with a final performance assessment, the PCO and the RO shall be
apprised prior to final electronic signature of the performance by the AO. The PCO becomes the RO
signatory authority for final unsatisfactory assessments.

(8) Design- build contracts are recorded as construction contracts in CCASS and the design services
of these contracts are not given a separate A-E performance assessment in ACASS. However, it is
USACE policy that the A-Es performance be summarized in the Remarks (Block 20, DD Form 2626).
The DUNS number and name of the A-E subcontractor(s) are to be included in Description and
location of work (Block 7), so that it can be found when source selection boards search for the firm
in the Past Performance Information Retrieval System (PPIRS). This responsibility lies with the AO.

36.203-100 Government Estimate of Construction Costs.
Refer to the current PIL, Requirements for Independent Estimates, and Appendix 36-1, Development,
Review and Approval of Government Estimates Matrix.


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36.203-101 Civil Works Contracts.

(a) Government estimates shall be based on the estimated comparable cost of doing the work by
Government plant (see 33 U.S.C. 624, Limitation on [River and Harbor] Improvement Work by Private
Contract) under the following conditions:

(1) If suitable Government plant is reasonably available for use within the time limits that would be
allowed a contractor, or

(2) If, in the judgment of the commander, the work could be done at a reasonable cost with plant
purchased or leased for the project and if the commander is prepared, if bids are rejected, to
recommend doing the work with Government plant and labor.

(b) In estimating the cost of doing the work under (a)(1) above, proper charges for labor and materials,
plant depreciation, all supervision and overhead expenses, and interest on the capital invested in the
Government plant shall be taken into account (the rate of interest shall not exceed the maximum
prevailing rate being paid by the Government on current issues of bonds).

(c) Under any other conditions, Government estimates shall be based on the fair and reasonable
estimated cost of a well-equipped contractor doing the work. Proper charges for labor and materials,
plant depreciation, all expenses for supervision, overhead, worker's compensation, general liability
insurance, and interest on capital invested in plant shall be taken into account. An allowance for profit
shall not be included.

36.203-102 Revision of Government Estimate.
When the Government estimate is changed during or subsequent to conferences or negotiation, the
basis for the revision or changes in price or prices shall be fully explained and documented in the POM,
price negotiation memorandum (PNM), and/or appropriate source selection decision document (SSDD).

36.205-100 Statutory Cost Limitations Civil Works Contracts.
IAW 33 U.S.C. 622 and 624, no civil works construction contract shall be awarded if the contract price
exceeds the Government estimate by more than 25 percent. IAW 36.203-101(c), the estimate shall not
include an allowance for contractor profit.

36.205-101 Statutory Cost Limitations Military Construction Contracts.

(a) Award of a contract for military construction (MILCON) shall be approved by the District/Center
Commander when the lowest qualifying bid/proposal exceeds the Government's estimate by more than
15 percent. The estimate shall include an allowance for contractor profit.

(b) Military installation support for O&M construction. Installation Commander or designee approval
shall be obtained prior to award of a contract if the proposed contract price exceeds:

(1) The Government estimate by more than 15 percent, or

(2) The funds initially made available by the installation.

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SUBPART 36.3 TWO-PHASE DESIGN-BUILD SELECTION PROCEDURES

36.303-100 Procedures.
Single-phase design-build approach is only authorized for MILCON projects or unspecified minor
MILCON. The single-phase approach can only be used where authorized, the contracting officer makes
the determination in FAR 36.301 and the package contains the technical approvals IAW ECB 2012-23. In
the event of a disagreement between the contracting officers determination and the HQ USACE
technical approvals, the concern shall be elevated to the HQ USACE DOC and Chief of E&C. Under two-
phase procedures, where the phase-one and phase-two solicitations are issued in sequence, the
contracting officer may issue the phase-one solicitation with the minimum information required by FAR
36.303-1, Phase One, while the remainder of the phase-two solicitation is still under development.

SUBPART 36.5 CONTRACT CLAUSES

36.516-100 Quantity Surveys - Hydrographic.
The contracting officer shall insert the clause at FAR 52.236-16, Quantity Surveys, for dredging or
underwater material placement when payment is to be based on quantity surveys. Alternate I may be
used only in exceptional circumstances with the prior approval of the DCC/CCC. The preferred methods
of performing hydrographic quantity surveys (in descending order) are as follows:

(1) The Government shall perform quantity surveys by using qualified in-house survey crews, if
available.
(2) The Government shall provide quantity surveys by contracting directly with qualified
independent hydrographic survey contractors.
(3) The Government shall permit, in exceptional circumstances only, the use of the dredging
contractor's surveys if the contracting officer determines that such surveys are adequate and
reasonable for payment purposes, and a Government inspector, qualified in hydrographic surveying,
is present during the collection of the survey data.

36.570-100 Additional Solicitation Provisions and Contract Clauses.
(a) In accordance with DFARS 236.570(b)(2), the DCC/CCC is hereby authorized, without power of
redelegation, to approve the use of either of the clauses at DFARS 252.236-7003 (Payment for
Mobilization and Preparatory work), or DFARS 252.236-7004 (Payment for Mobilization and
Demobilization) in solicitations and contracts for construction.

(b) This section applies to single phase and supplements FAR 36.3, Two-Phase Design-Build Selection
Procedures, to prescribe clauses for insertion in solicitations and contracts for design-build contracts.

(1) The contracting officer shall insert the following clauses in all design-build solicitations and
contracts

(i) 52.236-5000, Design-Build Order of Precedence
(ii) 52.236-5001, Personnel, Subcontractors and Outside Associates or Consultants
(iii) 52.236-5002, Government-Furnished Drawings, Surveys, and Specifications in the Request
for Proposal
(iv) 52.236-5003, Government-Furnished Specifications and Drawings for Construction

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(v) 52.236-5004, Responsibility of the Contractor for Design
(vi) 52.236-5005, Warranty of Design
(vii) 52.236-5006, Deviating from the Accepted Design
(viii) 52.236-5007, Contractors Role during Design Process
(ix) 52.236-5008, Value Engineering after Award
(x) 52.236-5009, Partnering.
(A) Informal partnering is required for non-complex projects with small dollar values.
Formal, facilitated partnering is required for technically complex projects, for compressed
durations, and for larger dollar values.
(xi) 52.236-5010 Government Re-Use of Design

SUBPART 36.6 ARCHITECT-ENGINEER (A-E) SERVICES

36.600-100 Scope of Subpart.
(a) See Subpart 37 for guidance on development of an acquisition strategy for A-E services, including
design services in support of construction, valued at/above the SAT.

(b) The acquisition strategy requirement noted under AFARS Subpart 5137.5 is unrelated to the Overall
Acquisition Strategy (OAS) requirement in 7.102, since the annual OAS relates to the District/Center
contracting activitys total anticipated workload, whereas the AFARS acquisition strategy requirement
relates to a specific program/contract/task order requirement. Therefore, the preparation of an OAS
does not replace the AFARS requirement for development of an A-E acquisition strategy for a specific
program/contract/task order that meets the applicable criteria. USACE A-E Acquisition Strategy and
Planning policy is further detailed in EP 715-1-7 Chapter 2.

36.601-3-100 Applicable Contracting Procedures.
Professional A-E services acquisitions will be procured under the Brooks Act, the provisions outlined in
FAR Part 36.6, and the procedures provided in EP 715-1-7, Architect-Engineer Contracting. (Non-A-E
services that do not require performance by a registered or licensed architect or engineer,
(notwithstanding the fact that such architect-engineers also may perform those services) should be
acquired pursuant to the provisions in FAR Parts 13, 14, and 15, utilizing performance based acquisition
methods to the maximum extent practicable, and shall be evaluated utilizing the DoD Source Selection
Procedures, when applicable).

36.601-3-90-100 Limitations.
(a) IDIQs for A-E services shall comply with Subpart 7.1.

(b) Appropriate consideration should be taken into account to have an equitable distribution of
differing business sizes and classes of A-E firms based on the anticipated needs of the District/Center.

(c) For any task order expected to exceed $700,000, not specifically identified in an approved
acquisition strategy and/or plan, the District/Center Chief of Engineering shall provide a memo to the
contracting officer justifying why a task order will be used instead of publicly announcing the
requirement.


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36.601-4-100 Implementation.
Implementation guidance on surveying and mapping requirements is provided in EP 715-1-7.

36.602-2-100 Evaluation Boards.
(a) USACE Commanders are authorized to appoint pre-selection and selection evaluation boards for all
contracts.

(b) USACE Federal and non-Federal customers may be invited to nominate representatives, including
private practitioners of architecture, engineering and related professions, as members of the evaluation
boards for their projects. A-E support contractors who prepared the preliminary RFP drawings and/or
specifications may be used by the evaluation board, provided the contracting officer approves written
documentation which supports there are measures in place to ensure no situation exists where there is
a conflict of interest which might bias the contractors judgment and allow an unfair competitive
advantage (ref: DFARS Subpart 207.503(S-70)(1)(ii)); and ensures that no inherently governmental
functions (e.g., may not act as voting members) will be performed by those support contractors. All
other A-E support contractors, including non-Federal customers (e.g., state and local officials), must be
supported by a D&F prepared by the District/Center contracting officer and address the elements
identified under DFARS Subpart 207.503, with regard to inherently governmental functions and
avoidance of potential organizational conflicts of interest IAW FAR Subpart 9.505. The D&F (ref: UAI
Appendix 15-1, Sample D&F) requires approval by the Regional PARC prior to release of the solicitation.
The A-E announcement must contain information to advise potential offerors of the support contractor
participation as a non-government participant. Although these support contractors may be used to
evaluate or analyze any specific aspect of a proposal, they may not be voting members or participate in
rating proposals or recommending a selection. In addition, these support contractors may only have
access to those portions of the proposal and selection information that they need to perform their
specific duties. These support contractors may not have access to past performance or price/cost data.

(c) Evaluation boards shall meet the requirements of EP 715-1-7, Paragraph 3-6 a. and b. Note: The
purpose of a pre-selection board is to recommend to the selection board only the highly qualified firms
that have a reasonable chance of being considered as most highly qualified by the selection board.

36.602-4-100 Selection Authority.
(a) Division/Center Commanders/Directors shall be the selection authority. This authority may be re-
delegated in writing, including, but not limited to, their deputies, district commanders, contracting
officers, directors or chiefs of engineering, or other appropriate officials who do not have a conflict of
interest.

(b) The DCC/CCC is responsible for the procurement related content of public announcements for A-E
services, and for general oversight of the A-E selection process to ensure regulatory compliance.

36.602-5-100 Short Selection Process for Contracts Not to Exceed the SAT.
One person with the appropriate expertise may constitute the selection board for an A-E selection that
does not exceed the SAT. A brief selection report will be prepared for the file listing at least three most
highly qualified firms that were considered and the reason(s) the firm selected for negotiations was the
highest qualified.


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36.603-100 Collecting Data on and Appraising Firms Qualifications.
All Standard Forms (SF) 330 received from firms in response to a public announcement shall be retained
at least 30 days after the last debriefing is held. The SF 330 of the selected firms (see FAR 36.602-4(b))
need to be retained in the Contracting Office official contract files to satisfy the requirements of FAR
4.803(a)(10).

36.604-100 Performance Evaluation.
Performance Evaluation requirements for A-E contracts are prepared as referenced under Subpart 42
and EP 715-1-7, Chapter 6.

36.605-100 Government Cost Estimate for Architect-Engineer Work.
An IGE shall be prepared, along with a determination of fair and reasonable price to the Government.
Follow procedures as outlined under EP 715-1-7 for specific guidance regarding cost estimates for A-E
contract actions. (Refer to the current PIL, Requirements for Independent Estimates, and UAI Appendix
36-1, Development, Review and Approval of Government Estimates Matrix.)

36.606-70-100 Statutory Fee Limitation.
See FAR 15.404-4(c)(4)(i)(B) and DFARS 236.606-70 for statutory fee limitation. For A-E services for
public works or utilities, the contract price or the estimated cost and fee for production and delivery of
designs, plans, drawings, and specifications shall not exceed 6 percent of the estimated cost of
construction of the public work or utility, excluding fees. Application of the statutory limit and items
included and not included in the statutory fee limitation of design to construction costs are referenced
in EP 715-1-7, paragraphs 5 and 6.

36.609-1-100 Design Within Funding Limitations.

(a) The contracting shall insert FAR clause 52.236-22, Design Within Funding Limitations, in A-E
indefinite-delivery contracts, when applicable. In place of a specific construction funding limitation,
insert "as specified in individual task orders."

(b) District/Center Chiefs of Engineering, or the individual in the equivalent position, are delegated the
authority to make the FAR 36.609-1(c) determination not to insert FAR clause 52.236-22, Design Within
Funding Limitations.

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PART 37 SERVICE CONTRACTING

SUBPART 37.1 SERVICE CONTRACTS - GENERAL

37.104-100 Personal Services Contracts.
33 U.S.C. 569a authorizes the Chief of Engineers to procure the temporary services of consultants in
connection with the civil works functions of USACE without regard to 5 U.S.C. 5101-5115 and 5521-
5527; provided that the highest rate of pay for each day of services does not exceed the daily equivalent
of the rate for grade GS-18.

SUBPART 37.5 MANAGEMENT OVERSIGHT OF SERVICE CONTRACTS

37.590-100 Army Management and Oversight of the Acquisition of Services.
Refer to and comply with the interim policy set forth by the Assistant Secretary of the Army (Acquisition,
Logistics, & Technology) ASA(ALT) Memorandum dated 20 December 2011, and the USACE Operations
Order (OPORD) 2012-81 (with all applicable Annexes A-F), which provides the USACE internal processes
for the management oversight of service contracts as outlined under AFARS Subpart 5137.5. The
ASA(ALT) interim guidance and other recent guidance issued by the Deputy Assistant Secretary of the
Army (Procurement) (DASA(P)) Senior Services Manager (SSM) and DASA(P) Policy Division change the
thresholds at the AFARS 5137 all Army services acquisition strategies valued at $250M to less than $1B
will be processed through the DASA(P) Office of the Senior Services Manager (SSM). The DASA(P) SSM
will also be the designated Chairperson for all Army Services Strategy Panels (ASSP). This instruction
does not apply to construction activities IAW AFARS Subpart 5137.590-2(g) (ASA(ALT) Interim Policy
excludes R&D except Advisory and Assistance acquisitions in support of R&D are included).

37.590-6-100 Army Service Strategy Panel Procedures
(c) Supporting documentation. Documentation that supports the acquisition strategy may vary with the
approach anticipated, but at a minimum should contain the following, when applicable:

(1) Acquisition Plan (Approved)
(2) DD Form 2579 Small Business Coordination Record
(3) IGE (Draft)
(4) Market Research Report
(5) Performance Work Statement
(6) QASP
(7) Requirements Validation Document/Service Contract Approval Request Form (SCAR)
(8) Services Acquisition Workshop, Memorandum of Record, when applicable (or waiver)
(9) SSP (without any names of Members or the SSA)
(10) D&F(s) as appropriate for the specific acquisition
a. D&F bundled or consolidated requirements
b. Cost Benefit Analysis for bundled or consolidated requirements
c. D&F for single award IDIQ type contract
(11) J&A(s) (for actions competed on other than full and open basis)
(12) Award Fee Plan, when applicable

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(13) Section L (Instructions, Conditions and Notices to Offerors)
(14) Section M (Evaluation Factors for Award)
(15) If a hybrid contract, a percentage break-out of orders issued for each contract type
(16) ASSP Briefing slides

Note: See Appendix 37-1 Acquisition Strategy Content Guide, for further explanation and
considerations based on lessons learned from previous ASSPs.

PART 38 RESERVED

PART 39 RESERVED

PART 40 RESERVED

PART 41 RESERVED


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SUBPART 42.1 CONTRACT AUDIT SERVICES

5142.1-90-1-100 Responsibilities.

(c) Director/DCC/CCC shall ensure that contracting officers (both PCO and ACO), the Contract Audit Follow-
up (CAFU) Monitor, and the Monitors supervisor (at least one level above the Monitor) must have a factor
(related to the follow-up duties described immediately below) included in their performance objectives
and resulting performance appraisal(s).

Director/DCC/CCC shall
(1) Demonstrate personal interest in all contract audit reports, tracking and assisting contracting
officers (PCO and ACO) in the resolution and disposition of those audit recommendations which
appear unlikely to be resolved within six months of the date of an audit report.

(2) Appoint a monitor to be responsible for providing updates on all open audits to the USACE CAFU
Monitor.

(3) Establish a system where both PCOs and ACOs, on a routine basis, directly report their Contract
Audit Follow-up related actions and seek advisement from supervisor and/or the DCC/CCC.

(4) Submit plans of action for timely resolution and disposition of audit recommendations upon
request by the Regional PARC.

(5) Assure participation by contracting officers in overage audit review boards when requested by
the Regional PARC.

SUBPART 42.2 ASSIGNMENT OF CONTRACT ADMINISTRATION

42.202-100 Assignment of Contract Administration.

(a) Civil works supply contracts for items that require inspection during manufacture shall be assigned
for administration, except that the following functions shall be retained by USACE and not be assigned:

(1) Responsibility for payments under the contract.

(2) Responsibility for contract changes, shop drawing approvals, approval of shop and model tests,
and approval of delivery schedules.

SUBPART 42.3 CONTRACT ADMINISTRATION OFFICE FUNCTIONS

42.302-100 Contract Administration Functions - Administrative Contracting Officer (ACO).


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(a) The contracting officer may delegate an ACO to be responsible for the administration of
construction contracts. The ACO may issue contract modifications up to the amount delegated and
pursuant to clauses specified in their ACO delegation letter. See 1.602-1-100 for the authorities in a
typical designation letter. The ACO shall routinely confer with the contracting officer on the status of
each of their assigned contracts. The contracting officer shall have access to RMS in order to remotely
monitor contract performance.

(b) All contracting officers (PCO and ACO) are required to execute contract actions and the Contract
Action Reports (CARs) in the Standard Procurement System/Procurement Desktop-Defense (SPS/PD2)
simultaneously with signing the award/modification document.

(c) The ACO is required to provide to the PCO office, immediately upon execution, original contract
modifications and supporting documentation; correspondence; interim unsatisfactory performance
evaluations; and any other contract administration documents requested by the PCO.

(d) The contracting office official contract file shall include cross-reference notation to the location of
documentation (e.g., payrolls, submittals, labor interviews, etc.) maintained by ACO and the COR.

SUBPART 42.490 FOLLOW-UP ON CONTRACT AUDIT REPORTS

5142.490-4-100 Overage Audit Review Boards.

(c) Audits reported as 6-12 months old, unresolved or overage in the Status Report on Specified
Contract Audit Reports, shall have an Overage Audit Review Board Plan of Action including a milestone
plan to achieve proper resolution and disposition. The Plan of Action shall be prepared and forwarded
through successively higher headquarters to HQ, USACE, ATTN: CECT-E no later than 15 May and
15 November. The Plan of Action shall be in sufficient detail to include all requirements stated in AFARS
5142.490-4(c)(2).

PART 43 CONTRACT MODIFICATIONS

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43.102-100 Policy.

(b) The policy and procedures at DFARS 217.74 shall be used to the maximum extent practicable for
contract modifications within the scope of the contract that are not "undefinitized contract actions"
(UCAs) as defined by DFARS 217.7401(d) (e.g., unpriced change orders (UCOs)). A D&F, signed by the
PCO prior to issuance of any such modification, shall contain, as a minimum, the following:

(1) The reason normal contract modification procedures and lead times are not practicable;

(2) The date the requirement was first identified;

(3) The consequences of missing the required delivery date;

(4) The definitization schedule for the contract modification;

(5) An explanation for any deviation from the definitization schedule;

(6) The percentage of contract modification work completed by the contractor prior to
definitization;

(7) The not-to-exceed (NTE) price.

(c) The DCC/CCC and Chief of Construction shall establish management controls for monitoring
definitization schedules, receipt of contractor proposals, and completion of negotiations/execution of
the definitization modification, when UCOs are issued.

PART 44 RESERVED

PART 45 GOVERNMENT PROPERTY

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45.103-100 General

(a) In circumstances where government furnished property (GFP) is anticipated to be provided to the
contractor, the PDT shall become familiar with all FAR, DFARS and AFARS requirements concerning the
management of GFP under the control of the contractor (refer to PIL 2012-11 Establishment of Controls
and Requirements for Accountability and Administration of Government Property).

(b) The QASP and quality assurance plans should ensure that a member of the PDT is completely
familiar with the approved Property Management Plan and the Performance Work
Statement/Statement of Work and monitors GFP.

(c) The COR will ensure that the contractor has the proper controls in place to manage and account for
government property and materials in accordance with the Property Management Plan. To achieve this,
the COR, Contract Specialist, and/or Property Management Specialist will visit the project during
performance of the contract/task order. For contracts other than fixed-price contracts, the COR will
check the contractors invoices to ensure that the procured items were approved as necessary prior to
purchase and that all required documentation to establish and maintain accountability for this property
is maintained on file. Contracting officers shall ensure that changes to Government property made over
time are reflected by modifications to the contract. A record of all open contracts that provide for
Government property to be furnished to or acquired by the contractor shall be maintained by the
District/Center Contracting Office.
PART 46 QUALITY ASSURANCE

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SUBPART 46.7 WARRANTIES

46.710-100 Contract Clauses.
FAR Clause 52.246-21, Warranty of Construction, shall not be used in solicitations or contracts that are
solely for dredging, excavation, grubbing or clearing.

PART 47 RESERVED

PART 48 RESERVED
PART 49 TERMINATION OF CONTRACTS

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SUBPART 49.113 COST PRINCIPLES

49.113-100 Cost Principles - Construction Equipment Costs - Contract Clause
The contracting officer shall insert the clause at 52.249-5000, Basis for Settlement of Proposals, in
solicitations and contracts for construction expected to exceed the SAT.

PART 50 RESERVED

PART 51 RESERVED
PART 52 USACE SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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SUBPART 52.1 INSTRUCTIONS FOR USING PROVISIONS AND CLAUSES

52.101-100 Using Part 52.
(b)(2)(iii) The sequential numbering for provisions or clauses will be in the 5000 series.

SUBPART 52.2 TEXTS OF PROVISIONS AND CLAUSES

52.211-5001 Variations in estimated quantities subdivided items.
As prescribed at 11.703(c), insert the following clause in solicitations and contracts for fixed-price
construction contracts when subdivided items are to be separately priced for payment purposes.

VARIATIONS IN ESTIMATED QUANTITIES SUBDIVIDED ITEMS (MAR 1995)

This variation in estimated quantities clause is applicable only to Items Nos.___.

(a) Variation from the estimated quantity in the actual work performed under any second or
subsequent sub-item or elimination of all work under such a second or subsequent sub-item will not
be the basis for an adjustment in contract unit price.

(b) Where the actual quantity of work performed for items Nos.____ is less than 85% of the quantity
of the first sub-item listed under such item, the contractor will be paid at the contract unit price for
that sub-item for the actual quantity of work performed and, in addition, an equitable adjustment
shall be made in accordance with the clause FAR 52.212-11, Variation in Estimated Quantities.

(c) If the actual quantity of work performed under Items Nos. ____ exceeds 115% or is less than 85%
of the total estimated quantity of the sub-item under that item and/or if the quantity of the work
performed under the second sub-item or any subsequent sub-item under Items Nos.____ exceeds
115% or is less than 85% of the estimated quantity of any such sub-item, and if such variation causes
an increase or a decrease in the time required for performance of this contract the contract
completion time will be adjusted in accordance with the clause FAR 52.211-18, Variation in
Estimated Quantities.

(End of clause)

52.232-5000 Payment for Materials Delivered Off-Site.
In accordance with FAR 52.232-5, Payments Under Fixed Price Construction Contracts(b)(2), when the
contracting officer determines that payment for materials delivered to a location other than the work
site during a construction contract is in the Government's best interest, the contracting officer shall
insert the following contract clause:


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Payment for Materials Delivered Off-Site

(a) Pursuant to FAR 52.232-5, Payments Under Fixed Price Construction Contracts, materials delivered
to the contractor at locations other than the site of the work may be taken into consideration in making
payments if included in payment estimates and if all the conditions of the General Provisions are
fulfilled. Payment for items delivered to locations other than the work site shall be limited to:

(1) Materials required by the technical provisions; or

(2) Materials that have been fabricated to the point where they are identifiable to an item of work
required under this contract; or

(3) Items specifically listed below.

(b) Payment for materials delivered off-site shall be made only after receipt of paid invoices listing the
value of material and labor incorporated in the items along with a canceled check showing the prime
contractors title to the items delivered off site. Payment for materials delivered off-site shall be limited
to the following items: [List specific material items to be considered for payment when off-site delivery is
made]
(End of clause)

52.232-5001 Continuing Contracts Special Continuing Contract for Civil Works Project
Managed by the USACE [DEVIATION]

As prescribed in 32.705-2-100, insert the following clause:

Special Continuing Contract for Civil Works Project Managed by the United States Army Corps of
Engineers [DEVIATION]

(a) Funds are not available at the inception of this contract to cover the entire contract price. The
liability of the Government is limited by this clause notwithstanding any contrary provision of the
Payments to Contractor' clause or any other clause of this contract, except the Termination for
Convenience clause. The sum of $-------- [Each fiscal year of contract execution, Contracting Officer shall
insert the specific dollar amount that is reserved for this contract and available for payment to the
contractor during the current fiscal year. The Contracting Officer shall modify that amount to reflect any
funds added to or subtracted from the contract during a current fiscal year] has been reserved for this
contract and is available for payment to the Contractor during the current fiscal year. It is expected that
Congress will make appropriations for future fiscal years from which additional funds, together with
funds provided by one or more non-federal project sponsors, will be reserved for this contract.

(b) Failure to make payments in excess of the amount currently reserved, or that may be reserved from
time to time, shall not be considered a breach of contract and shall not entitle the Contractor to a price
adjustment under the terms of this contract.


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(c) The Government may at any time reserve additional funds for payments under the contract if there
are funds available for such purpose. The Contracting Officer will promptly notify the Contractor of any
additional funds reserved for the contract by issuing an administrative modification to the contract.

(d) If earnings will be such that funds reserved for the contract will be exhausted before the end of any
fiscal year, the Contractor shall give written notice to the Contracting Officer of the estimated date of
exhaustion and the amount of additional funds which will be needed to meet payments due or to
become due under the contract during that fiscal year. This notice shall be given not less than 120 days
prior to the estimated date of exhaustion. Unless informed in writing by the Contracting Officer that
additional funds have been reserved for payments under the contract, the Contractor shall stop work
upon the exhaustion of funds.

(e) No payments will be made after exhaustion of funds except to the extent that additional funds are
reserved for the contract.

(f) Any suspension, delay, or interruption of work arising from exhaustion or anticipated exhaustion of
funds shall not constitute a breach of this contract and shall not entitle the Contractor to any price
adjustment under the ``Suspension of Work'' clause or in any other manner under this contract.

(g) An equitable adjustment in performance time shall be made for any increase in the time required
for performance of any part of the work arising from exhaustion of funds or the reasonable anticipation
of exhaustion of funds.

(h) If, upon the expiration of 100 days after the beginning of the fiscal year following an exhaustion of
funds, the Government has failed to reserve additional funds for this contract sufficient to cover the
Government's estimate of funding required for the first quarter of that fiscal year, the Contractor, by
written notice delivered to the Contracting Officer at any time before such additional funds are
reserved, may elect to treat his right to proceed with the work as having been terminated. Such a
termination shall be considered a termination for the convenience of the Government.

(i) If at any time it becomes apparent that the funds reserved for any fiscal year are in excess of the
funds required to meet all payments due or to become due the Contractor because of work performed
and to be performed under the contract during the fiscal year, the Government reserves the right, after
notice to the Contractor, to reduce said reservation by the amount of such excess.

(j) The term ``Reservation'' means monies that have been set aside and made available for payments
under this contract. Reservations of funds shall be made in writing via an administrative modification
issued by the Contracting Officer.
(End of clause)

ALTERNATE I [DEVIATION]. As prescribed in 32.705-2-101, substitute the following paragraphs (a) and
(h) for paragraphs (a) and (h) of the basic clause if future funding for the specifically authorized civil
works project for which use of the continuing contract is contemplated is not included in the following
year's President's Budget:


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18 March 2013
(a) Funds are not available at the inception of this contract to cover the entire contract price. The
liability of the Government is limited by this clause notwithstanding any contrary provision of the
Payments to Contractor clause or any other clause of this contract. The sum of $-------- [Each fiscal
year of contract execution, Contracting Officer shall insert the specific dollar amount that is reserved for
this contract and available for payment to the contractor during the current fiscal year. The Contracting
Officer shall modify that amount to reflect any funds added to or subtracted from the contract during a
current fiscal year] has been reserved for this contract and is available for payment to the Contractor
during the current fiscal year. It is expected that Congress will make appropriations for future fiscal
years from which additional funds, together with funds provided by one or more non-federal project
sponsors, will be reserved for this contract.

(h) If, upon the expiration of 100 days after the beginning of the fiscal year following an exhaustion of
funds, the Government has failed to reserve additional funds for this contract sufficient to cover the
Government's estimate of funding required for the first quarter of that fiscal year, the Contractor, by
written notice delivered to the Contracting Officer at any time before such additional funds are
reserved, may elect to treat his right to proceed with the work as having been terminated. The
Government will not be obligated in any event to reimburse the Contractor for any costs incurred after
the exhaustion of funds regardless of anything to the contrary in the clause entitled ``Termination for
Convenience of the Government.''
(End of clause)

52.236-5000 Design-Build Contract Order of Precedence.
The contracting officer shall insert the following clause in all design-build solicitations and contracts:

Design-Build Contract Order of Precedence (AUG 1997)

(a) The contract includes the standard contract clauses and schedules current at the time of contract
award. It entails (1) the solicitation in its entirety, including all drawings, cuts, and illustrations, and any
amendments, and (2) the successful offerors accepted proposal. The contract constitutes and defines
the entire agreement between the Contractor and the Government. No documentation shall be
omitted which in any way bears upon the terms of that agreement.

(b) In the event of conflict or inconsistency between any of the provisions of this contract, precedence
shall be given in the following order:

(1) Betterments: Any portions of the accepted proposal which both conform to and exceed the
provisions of the solicitation.

(2) The provisions of the solicitation. (See also FAR 52.236-21, Specifications and Drawings for
Construction)

(3) All other provisions of the accepted proposal.

(4) Any design products including, but not limited to, plans, specifications, engineering studies and
analyses, shop drawings, equipment installation drawings, etc. These are "deliverables" under the

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contract and are not part of the contract itself. Design products must conform with all provisions of
the contract, in the order of precedence herein.
(End of clause)

52.236-5001 Personnel, Subcontractors and Outside Associates or Consultants.
Personnel, Subcontractors and Outside Associates or Consultants (MAY 2006)

In connection with this contract, any in-house personnel, subcontractors, and outside associates or
consultants will be limited to individuals or firms that were specifically identified in the Contractor's
accepted proposal. The Contractor shall obtain the Contracting Officer's written consent before making
any substitution for these designated in-house personnel, subcontractors, associates, or consultants. If
the Contractor proposes a substitution, it shall submit the same type of information that was submitted
in the accepted proposal to the Contracting Officer for evaluation and approval. The level of
qualifications and experience submitted in the accepted proposal or that required by the Solicitation,
whichever is greater, is the minimum standard for any substitution.

(End of clause)

52.236-5002 Government-Furnished Specifications, Drawings, Surveys, and Specifications in
the Request for Proposal.
The contracting officer shall insert the following clause in design-build solicitations and contracts:
Government-Furnished Specifications, Drawings, Surveys, and Specifications in the Request for
Proposal (JUL 2002)

This is to clarify DFARS 252.236-7001, Contract Drawings and Specifications, refers to any Government-
furnished design or design criteria included in the Request for Proposal (RFP).

(End of clause)

52.236-5003 Government-Furnished Specifications and Drawings for Construction.
Government-Furnished Specifications and Drawings for Construction (JUL 2003)

This is to clarify FAR 52.236-21, Specifications and Drawings for Construction, refers to any specifications
and drawings furnished in the Request for Proposal (RFP). The term "specifications" refers to the design
criteria or scope of work, in addition to any attached specifications.
(End of clause)

52.236-5004 Responsibility of the Contractor for Design.


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Responsibility of the Contractor for Design (MAY 2002)

(a) The Contractor shall be responsible for the professional quality, technical accuracy, and the
coordination of all designs, drawings, specifications, and other non-construction services furnished by
the Contractor under this contract. The Contractor shall, without additional compensation, correct or
revise any errors or deficiency in its designs, drawings, specifications, and other non-construction
services and perform any necessary rework or modifications, including any damage to real or personal
property, resulting from the design error or omission.

(b) The standard of care for all design services performed under this agreement shall be the care and
skill ordinarily used by members of the architectural or engineering professions practicing under similar
conditions at the same time and locality. Notwithstanding the above, in the event that the contract
specifies that portions of the Work be performed in accordance with a performance standard, the
design services shall be performed so as to achieve such standards.

(c) Neither the Governments review, approval or acceptance of, nor payment for, the services required
under this contact, shall be construed to operate as a waiver of any rights under this contract or of any
cause of action arising out of the performance of this contract. The Contractor shall be and remain
liable to the Government in accordance with applicable law for all damages to the Government caused
by the Contractors negligent performance of any of these services furnished under this contract.

(d) The rights and remedies of the Government provided for under this contract are in addition to any
other rights and remedies provided by law.

(e) If the Contractor is comprised of more than one legal entity, each entity shall be jointly and severally
liable hereunder. (End of clause)

52.236-5005 Warranty of Design.
Warranty of Design (MAY 2002)

(a) The Contractor warrants that the design shall be performed in accordance with the contract
requirements. Design and design related construction not conforming to the Contract requirements
shall be corrected at no additional cost to the Government. The standard of care for design is defined in
paragraph (b) of special contract requirement 52.236-5004, Responsibility of the Contractor for Design.

(b) The period of this warranty shall commence upon final completion and the Governments
acceptance of the work, or in the case of the Governments beneficial occupancy of all or part of the
work for its convenience, prior to final completion and acceptance, at the time of such occupancy.

(c) This design warranty shall be effective from the above event through the Statue of Limitations and
Statute of Repose, as applicable to the state that the project is located in.

(d) The rights and remedies of the Government provided for under this clause are in addition to any
other rights and remedies provided in this contract or by law.
(End of clause)

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52.236-5006 Deviating from the Accepted Design.

Deviating from the Accepted Design (JUN 2002)

(a) The Contractor must obtain the approval of the Designer of Record and the Governments
concurrence for any Contractor proposed revision to the professionally stamped and sealed and
Government reviewed design, before proceeding with the revision.

(b) The Government reserves the right to non-concur with any revision to the design, which may impact
furniture, furnishings, equipment selections or operations decisions that were made, based on the
reviewed design.

(c) Any revision to the design, which deviates from the contract requirements (i.e., the RFP and the
accepted proposal), will require a modification, pursuant to the Changes clause, in addition to
Government concurrence. The Government reserves the right to disapprove such a revision.

(d) Unless the Government initiates a change to the contract requirements, or the Government
determines that the Government furnished design criteria are incorrect and must be revised, any
Contractor initiated proposed change to the contract requirements, which results in additional cost,
shall strictly be at the Contractor's expense.

(e) The Contractor shall track all approved revisions to the reviewed and accepted design and shall
incorporate them into the as-built design documentation, in accordance with agreed procedures. The
Designer of Record shall document its professional concurrence on the as-builts for any revisions in the
stamped and sealed drawings and specifications.
(End of clause)

52.236-5007 Contractor's Role During Design Process.
Contractor's Role During Design Process (JUN 1998)

The contractor's construction management key personnel shall be actively involved during the design
process to effectively integrate the design and construction requirements of this contract. In addition to
the typical required construction activities, the Contractor's involvement includes, but is not limited to
actions such as: integrating the design schedule into the Master Schedule to maximize the effectiveness
of fast-tracking design and construction (within the limits allowed in the contract), ensuring
constructability and economy of the design, integrating the shop drawing and installation drawing
process into the design, executing the material and equipment acquisition programs to meet critical
schedules, effectively interfacing the construction QC program with the design QC program, and
maintaining and providing the design team with accurate, up-to-date redline and as-built
documentation. The Contractor shall require and manage the active involvement of key trade
subcontractors in the above activities. (End of clause)


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52.236-5008 Value Engineering after Award.

Value Engineering after Award (JUN 1999)

(a) In reference to FAR 52.248-3, Value Engineering-Construction, the Government may refuse to
entertain a "Value Engineering Change Proposal" (VECP) for those "performance oriented" aspects of
the Solicitation documents which were addressed in the Contractor's accepted contract proposal and
which were evaluated in competition with other offerors for award of this contract.

(b) The Government may consider a VECP for those "prescriptive" aspects of the Solicitation
documents, not addressed in the Contractor's accepted contract proposal or addressed but evaluated
only for minimum conformance with the Solicitation requirements.

(c) For purposes of this clause, the term "performance oriented" refers to those aspects of the design
criteria or other contract requirements which allow the offeror or Contractor certain latitude, choice of
and flexibility to propose in its accepted contract offer a choice of design, technical approach, design
solution, construction approach or other approach to fulfill the contract requirements. Such
requirements generally tend to be expressed in terms of functions to be performed, performance
required or essential physical characteristics, without dictating a specific process or specific design
solution for achieving the desired result.

(d) In contrast, for purposes of this clause, the term "prescriptive" refers to those aspects of the design
criteria or other Solicitation requirements wherein the Government expressed the design solution or
other requirements in terms of specific material, approaches, systems, and/or processes to be used.
Prescriptive aspects typically allow the offerors little or no freedom in the choice of design approach,
materials, fabrication techniques, methods of installation, or any other approach to fulfill the contract
requirements.
(End of clause)

52.236-5009 Partnering.

Partnering (FEB 2000)

In order to most effectively accomplish this contract, the Government proposes to form a partnership
with the Contractor to develop a cohesive building team. It is anticipated that this partnership would
involve the <NAME THE USING ORGANIZATIONS AND OTHER CRITICAL PARTIES HERE>, the Contractor,
primary subcontractors and designers and the Corps of Engineers. This partnership would strive to
develop a cooperative management team drawing on the strengths of each team member in an effort to
achieve a quality project within budget and on schedule. This partnership would be bilateral in
membership and participation will be totally voluntary. Any cost associated with effectuating this
partnership, excluding travel and lodging cost of Government personnel, will be borne by <<SELECT AN
OPTION TO SPECIFY: the Contractor/each party/the Government. The partnering meetings shall be held
in [Fill in with Date, Time, Place, etc.].
(End of clause)

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52.236-5010 Government Re-Use of Design.

Government Re-Use of Design (MAY 2006)

In conjunction with the DFARS 252.227-7022, Government Rights (Unlimited), the Government will not
ask for additional originals or copies of the design works after the Contractor provides all required
design documentation and as-built documentation under the instant contract. Further, if the
Government uses the design for other projects without additional compensation to the Contractor for
re-use, the Government releases the Contractor from liability in the design on the other projects, due to
defects in the design that are not the result of fraud, gross mistake as amounts to fraud, gross
negligence or intentional misrepresentation.

(End of clause)

52.249-5000 Basis for Settlement of Proposals.
As prescribed in 49.113-100, the contracting officer shall insert the following clause in all solicitations
and contracts for construction that are expected to exceed the SAT:

Basis for Settlement of Proposals

Actual costs will be used to determine equipment costs for a settlement proposal submitted on the total
cost basis under FAR 49.206-2(b). In evaluating a terminations settlement proposal using the total cost
basis, the following principles will be applied to determine allowable equipment costs:

(1) Actual costs for each piece of equipment, or groups of similar serial or series equipment, need
not be available in the contractor's accounting records to determine total actual equipment costs.
(2) If equipment costs have been allocated to a contract using predetermined rates, those charges
will be adjusted to actual costs.
(3) Recorded job costs adjusted for unallowable expenses will be used to determine equipment
operating expenses.
(4) Ownership costs (depreciation) will be determined using the contractor's depreciation schedule
(subject to the provisions of FAR 31.205-11).
(5) License, taxes, storage and insurance costs are normally recovered as an indirect expense and
unless the contractor charges these costs directly to contracts, they will be recovered through the
indirect expense rate.
(End of clause)

Page 92

________________________________________________________________________________________

APPENDIX 1-1
PROCESS CHART FOR USACE PEER REVIEW POLICY

HCA Peer Review Process (Facilitated by the DOC) $250M < $1B
PCO Coordinate with District/Center BOB to Request
Upcoming HCA Peer Review, and provide courtesy
notification to Regional PARC
PCO, District/Center BOB &
Regional Acquisition Support
Analyst
Varies Refer to
Acquisition Milestones
for Applicable Action
District/Center BOB Submit Peer Review Request to
Regional Acquisition Support Analyst (or designee)
District/Center BOB & Regional
Acquisition Support Analyst
*1 Week (7 Calendar
Days) Prior to Peer
Review Convening
Coordinate/Confirm Peer Review Schedule and Establish
HQ peer review team IAW AFARS 5101.170(b)(1)(c), at a
minimum: HQ Counsel; Regional Acquisition Support
Analyst; HQ Small Business; District/Center/HQ Cost
Estimating; District/Center/HQ Technical Subject Matter
Expert & PARC/HQ DOC Special Competition Advocate
(applicable to non-competitive actions)
Analyst (coordinates with DOC)
*(Event included in
coordination of 1
week referenced
above)
Access to Applicable Acquisition Documents Provided by
District/Center BOB to the HQ peer review team
(preferably by providing password access to PCF). Prepare
for Peer Review Meeting by Reading/Reviewing all
Applicable Acquisition Documents
District/Center BOB, Regional
Acquisition Support Analyst & HQ
Peer Review Team
*(Event included in
coordination of 1
week referenced
above)
Convene Peer Review (face-to-face, VTC, or
teleconference) with the PDT Leads to include PCO;
Technical Evaluation Team Lead; Price Evaluation Team
Lead/Price or Cost Evaluator (as applicable); and Source
Selection Evaluation Board Chair; and SSA if applicable.
(Regional PARC & SSA may attend but are not required).
(Regional Acquisition Support Analyst draft and
coordinate for concurrence by HQ Peer Review Team and
PCO a Peer Review Summary MFR)
DOC, Regional Acquisition Support
Analyst & HQ Peer Review Team,
PDT Members, and PCO
2-3 Business Days
Provide the Summary MFR with Concurrences of the HQ
Peer Review Team and PCO to the Peer Review Facilitator
for Endorsement
Analyst
1 Business Day
(included in
coordination of 2-3
Business Days above)
HCA Peer Review Facilitator Sign MFR and Release Staff
Action Summary (SAS) to Process through Secretary of
General Staff (SGS) to HCA for endorsement
Analyst & SGS for HCA
5 Business Days
HCA Endorses Peer Review Package; Signed Document
Returned to Regional Acquisition Support Analyst; Action
copied to Regional PARC, and sent to PCO and
District/Center BOB.
Analyst & PCO
1 Business Day
PCO can Proceed. Place Peer Review Summary MFR and
Peer Review Documents in Contract File.
PCO
Upon Endorsement by
HCA

Regional PARC Chaired > $50M < $250M
Contracting Officer Coordinate with District/Center BOB
Chief (or Peer Review POC) to Report Upcoming Need for
Regional PARC Peer Review
Contracting Officer,
District/Center BOB Chief &
Analyst
Varies Refer to
Acquisition
Milestones for
Applicable Action
Establish Solicitation/Contract Peer Review and
Coordinate/Confirm Peer Review Schedule IAW AFARS
5101.170(b)(1)(c), at a minimum: PARC Counsel; Regional
Acquisition Support Analyst (s); PARC Small Business;
District/Center Cost Estimating; District/Center Technical
Subject Matter Expert & Special Competition Advocate
(applicable to non-competitive actions)
District/Center BOB Chief &
Analyst
1 Week Prior to
Solicitation/Contract
Peer Review
Convening
Access to Applicable Acquisition Documents Provided by
Contracting Officer to the Solicitation/Contract Peer
Review Team (preferably by providing password access to
PCF) AND Solicitation/Contract Peer Review Team Prepare
for Peer Review Meeting by Reading/Reviewing all
Applicable Acquisition Documents
Contracting Officer,
District/Center BOB Chief, &
Analyst
1 Week Prior to
Peer Review
Convening
Convene Solicitation/Contract Peer Review Meeting (face-
to-face, VTC, or teleconference) with the PDT Leads IAW
USACE Peer Review Policy, paragraph 6 - include PCO;
Technical Evaluation Team Lead; Price Evaluation Team
Lead/Price or Cost Evaluator (as applicable); and Source
Selection Evaluation Board Chair (SSA if applicable)
(Regional Acquisition Support Analyst draft and coordinate
for concurrence by Solicitation/Contract Peer Review Team
a Summary MFR on the Peer Review)
Regional PARC or Regional PARC
Designee
2-3 Business Days
Provide the Summary MFR with Concurrences of the
Solicitation/Contract Peer Team to the Regional PARC for
Endorsement
Analyst & Regional PARC
1 Business Day
RCC Endorse MFR; Provide MFR to Contracting Officer for
Inclusion in the Contract File
Regional PARC & Regional
Acquisition Support Analyst
3 Hours or Less
Contracting Officer Proceed with Contract Action Contracting Officer
Upon Endorsement
by Regional PARC

RCC Chaired > $500K < $50M
Establish Solicitation/Contract Peer Review* and
Coordinate/Confirm Peer Review Schedule *All members
shall be independent of PDT members and at a minimum:
Counsel; Contracting; Small Business; Technical Subject
Matter Expert
BOB Chief / Peer Review POC
1Week Prior to
Peer Review
Convening
Provide Access to Applicable Acquisition Documents for
the Solicitation/Contract Peer Review Members
(preferably by providing password access to PCF)
Contracting Officer
1 Week Prior to
Peer Review
Convening
Conduct Solicitation/Contract Peer Review
(Solicitation/Contract Peer Review Team Complete Peer
Review Toolkit and Draft the Summary MFR Request
Contracting Officer resolution to comments and
concurrence on MFR))
RCC or RCC Designee Contracting
Officer
1 Business Day or
Less
Provide the Summary MFR with Concurrences of the
Solicitation/Contract Peer Review Team to the RCC for
Endorsement
BOB Chief & Solicitation/Contract
Peer Review Team
1 Business Day or
Less
RCC Endorse MFR; Provide MFR to Contracting Officer for
Inclusion in the Contract File
RCC & BOB Chief
1 Business Day or
Less
Contracting Officer Proceed with Contract Action Contracting Officer
Upon Endorsement
by RCC
PCO, DCC, CCC, RCC Chaired $3K < $500K
Coordinate with Contracting Peer(s) to Schedule Peer
Review of Acquisition File
Contracting Officer
2-3 Business Days
Prior to Solicitation &
Prior to Award
Conduct Peer Review and Provide
Comments/Recommendations to Peer (Provide signed
Memorandum for File (MFR))
Contracting 1102 Peer(s) 1-3 Hours
Ensure Comments/Recommendations are Addressed and
Ensure Contract File Documents Corrected, if Applicable
(Ensure Contract File Review Conducted Prior to
Solicitation and Prior to an Award)
Contracting Officer 1-3 Hours
Ensure the signed Peer Review Memorandum for File is
Placed in the Contract File
Contracting Officer
Prior to Contract
Action

________________________________________________________________________________________

APPENDIX 1-2
TIMELINE FLOWCHART FOR
USACE HCA PEER REVIEW POLICY

HCA PEER REVIEW TIMELINE VISUAL

Scheduling and Document Review Review HCA Endorsement

1 week (7 calendar days) prior to peer
review convening
2 to 3 business days 5 business days

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

STEP 1: District/Center
BOB/Peer Review POC notifies
Analyst (or designee) of
tentative peer review date.
STEP 2:
Analyst confirms peer review
date with HQ DOC & confirms
HQ Peer Review team
members established by DOC.
Provides confirmed date and
HQ Peer Review Team names
to District/Center BOB to
grant team members PCF
access for document retrieval
and review.
STEP 3: Peer review
conducted. Summary
memorandum of peer review
recommendations is provided
to PCO. PCO provides
response to recommendations.
STEP 4: Peer review package
staffed for HCA endorsement.
Note:
Required/
applicable
peer review
documents
are complete
and upload to
PCF.
Note: PCO shall resolve all
peer review comments prior
to attaining clearance for
solicitation release and
contract award. A
recommendation identified
as significant which the
PCO does not intend to
follow shall be brought to the
attention of the senior
procurement official of the
contracting activity before
action (or inaction, as
applicable) is taken contrary
to the recommendation.

STEP 5: Upon receipt of HCA
endorsement, proceed with
acquisition.
Note: HCA
endorsement of peer
review must be
received prior to the
next phase peer
review or prior to
contract award.

________________________________________________________________________________________

APPENDIX 1-3
HQ USACE CECT ACQUISITION REVIEW
AND APPROVAL PROCESS

ACTIONS ABOVE $250M & FOR ALL ACTIONS REQUIRING
DOC/HCA OR HIGHER LEVEL APPROVAL

Page 100

________________________________________________________________________________________

APPENDIX 1-4
PEER REVIEW TOOLKITS
PHASE I (SOLICITATION REVIEW)
PHASE II (PRE-AWARD)

PHASE I (SOLICITATION REVIEW)

Solicitation Number: __________________ Date(s) Reviewed: _____________________

Project: _____________________________ Estimated Dollar Value: _______________

This toolkit is provided for use by Solicitation Review Boards in performing Independent Peer Reviews, as well as a self-
check by Contract Specialists and Contracting Officers. Areas highlighted in pink are key focus items for Independent
Peer Reviews. This toolkit is not to be considered an all-inclusive listing, some items do not apply to all requirements,
and additions/deletions may be required by changes to regulations and/or in support of local or unique requirements.

Items highlighted in green are information to assist all in understanding the key areas of organizational focus for the
Peer Review Process. Items highlighted in pink are key areas of focus for Peer Reviewers.

The complete solicitation file will be provided as part of the local agency independent review which is to
be done prior to forwarding the key documents below for PARC or HCA level Peer Review.
Key Documents for Phase I (Solicitation) Review: Planning Documents (e.g., Acquisition Strategy,
Acquisition Plan), Solicitation, Performance Work Statement, IGE or 1391 (if MILCON), QASP, SSA
Appointment, and Source Selection Plan. These documents should be provided to reviewers in advance
IAW instructions established for the Peer Review Process to expedite this process.
Objective of Phase I (Solicitation) Review: Review is intended to compare approved planning
documents with the RFP and SSP to ensure consistency and fulfillment of intended/approved acquisition
approach.

SOLICITATION REVIEW TOOLKIT Yes No N/A Remarks
Files Review
a. Are there any missing documents?
b. Are documents misfiled?
Legal Findings
a. Has agency-level legal sufficiency been obtained for the
acquisition documents for Peer Review (RFP, SSP) to this point?

b. Have the legal comments been incorporated?
Additional comments concerning findings:

PRE-SOLICITATION AND PLANNING
Evidence of Requirement
a. Draft or Final (if available) Statement of Work
(SOW)/Performance Work Statement (PWS)/Specifications/1391 (If
MILCON) or IGE (If received)

b. Draft Quality Assurance Surveillance Plan (QASP) /
Performance Requirements Summary (PRS) if service

c. Request for Civilian Hire or Service Contract Approval
Evidence of Availability of Funding
a. Will appropriate funds be available to cover the contract
requirements? (FAR 32.703)

b. If funds are not available, is the subject to availability of funds

(SAF) statement and clause(s) included? (FAR 52.232-18)
c. MATOC/SATOC Is there evidence the minimum guarantee is
provided for?

Focus of Review: Does the file include evidence of the requirement and
funding to proceed with efforts toward the requirement/engage
industry as follows?

Market Research (FAR 10)
a. Is there evidence of outreach to small business (dynamic SB
search, sources sought synopsis, and/or Industry Day Conference if
held?

b. Is there evidence/backup documentation to support Market
Research Report?

Small Business Coordination
a. DD Form 2579 (DFARS 219.5 and AFARS 5119)
Focus of Review:
- Is the market research driving the strategy fully described,
documented, in compliance with AFARS 5110.002(b) and adequate to
support the acquisition approach?
- Has appropriate exploration/consideration of all known/reported
Small Business capabilities for set-asides been given?

Acquisition Strategy (Services only)
a. Includes Market Research Data in Memorandum to File/Report
format (AFARS 5110.002(b))

b. Includes Bundling Analysis (FAR 7.105(b )(1) & FAR 7.107)
c. Includes strategic sourcing and spend analysis as applicable
(Section 807 of FY08 NDAA)

Acquisition Service Strategy Panel (Services >$500M)
Briefings to Army Director of SB and DASA-P filed with approval memo
of Acquisition Strategy

Approved Acquisition Plan (FAR 7.1, DFARS 207.1, AFARS 5107.1)
a. Have acquisition milestones been established for this
requirement and included in the Acquisition Plan?

Focus of Review:
- Is the acquisition approach based on sound business principles that
achieve program objectives and support appropriate cost, schedule,
and performance incentives and penalties?
- Are the milestone dates included realistic and take into consideration
all actions/tasks/documentation required?

REQUIRED PRE-SOLICITATION DOCUMENTATION
Approved Determinations and Findings (as applicable to
requirement, list not all inclusive)

a. Determinations and Findings
Contract Type (Over $100M all types, Incentive: FAR
16.4, T&M: FAR 16.103(d))
Equipment Lease vs Purchase. If requirement is to be
leased, lease vs purchase analysis has been performed (if
18 months or more)? (DFARS 207.470(a) (FAR 7.4: if
>$1M, see Policy Alert 07-04)

Commercial Determination (FAR 12, DASA(P) Policy
Alert 12-66)
Use of Options (FAR 17.202(a))
Personal/Professional Services (DFARS 237.104)
Undefinitized Contract Action-Certification of Urgency
(DFARS 217.74)
Warranties (FAR 46.7)
Construction Warranty (FAR 36)
Liquidated Damages (FAR 36.206)
Use of Multi-Years (DFARS 17.103-1)
Use and Evaluation of Options (FAR 17.206)
Buy American Act (FAR 25)
Determination Approving Consolidation of Contract
Requirements (DFARS 207.170)
Awarding a Task/Delivery Order Contract Vehicle
exceeding $103M to a single source (SATOC) (FAR
16.504(c)(1)(ii)(D)(i)-(iii), DFARS 216.504))
Contracting Officer SATOC Justification Memo (FAR
Part 16)
Approval for Nonperformance-Based Services
Contracts (DFARS 237.170-2)
Business Case Analysis for Enterprise-Wide or Agency-
Wide Contracts and GWACS (DASA(P) Policy Alert 12-09)
b. Justification of Procurement Method (if using FAR Part 15)
c. Certification for non-DOD Contract Use (only if using non DoD
contract vehicle PIL 2009-02)

Focus of Review: Are all appropriate/required documentation for this
acquisition included and signed by the correct approving official?

Use of Competitive Procedures (FAR 15)
Synopsis (FAR 5.101 & 5.2 Or Waiver)
Use of Non-Competitive Procedures (FAR 6)
a. Notice of Intent Synopsis
b. Justification and Authorization for Other Than Full and Open
Competition Properly Approved (J&A) (FAR 6.3, AFARS Part
5153.9005)

c. Has KO thoroughly documented determination of exception to
synopsis used under FAR 5.202?

d. Evidence of Public Disclosure (PIL 2009-08)
Focus of Review:
- Are opportunities for competitive procedures maximized?
Requirements clearly defined, strategically determined, represent only
the bonafide technical requirements and provide for maximum
competition?
- If this is not possible, are appropriate actions/documentation for
noncompetitive procedures evident?

Construction Contract Requirements
Biddability, Constructability, Operability, Environmental (BCOE)
Compliance Certification (Construction Only) (ER 415-1-11)

Focus of Review: Has a finalized BCOE been posted to the file for this
acquisition?

SOLICITATION AND RELATED DOCUMENTS
Request for Proposal/Solicitation
a. CLIN Structure
Focus of Review: Is the CLIN structure logical and clearly linked to the
PWS/SOW in accordance with DFARS?

b. Wide Area Workflow (See DFARS -
http://www.acq.osd.mil/dpap/dars/dfars/html/current/232_70.htm)

Focus of Review: Are Wide Area Workflow/invoicing instructions
provided to the extent applicable to the acquisition?

c. Sections L&M (Construction Numbers 00 22 10, 00 22 20, 00 22 11)
Focus of Review:
- Are the evaluation criteria consistent with those indicated in the
Source Selection Plan?
- If a full-trade off source selection, does the evaluation identify and
prioritize specific tradeoffs or performance thresholds for which the
Government is willing to pay more? Is it clear from the evaluation
criteria what the offeror would provide that the Government would
constitute more advantageous?
- Includes oral presentations and sample tasks when necessary?
- If most probable cost (MPC) is being evaluated is it only for the
basic contract? Are the options being evaluated by applying escalation
factors?
- Intent to award without discussions is clearly defined? Intent to
determine competitive range is clearly defined?
Are minimum thresholds and maximum performance objectives clearly
defined?
- Is the RFP consistent between the PWS/SOO/SOW, the Source
Selection Plan, and Sections L and M?

Special Requirements
a. Government Furnished Property (FAR 45)
Focus of Review: If GFP/GFE is offered, is it listed, is it justified and used
appropriately (FAR 45.302) and does the RFP include the appropriate
completed clauses?

b. Security Requirements DD254 (FAR 4.403 & AFARS 5104.403)
Focus of Review: Was a DD254 completed and incorporated into the
RFP, if applicable?

c. Contractor Manpower Reporting CMR)
Focus of Review: Are the Contractor Manpower Reporting
requirements included in the PWS?

b. Consistency between RFP and Acquisition Strategy/Plans
Focus of Review:
- Does the RFP accurately reflect the acquisition strategy and or
acquisition plan?
- Do the structure and provisions facilitate a meeting of the minds
between Government and industry as to the process, nature and intent
of the acquisition i.e., draft RFP/Industry Day with consideration and

incorporation of industry comments?
Location-Related Performance
a. Is the required Defense Base Act (DBA) Insurance requirements
contract language included in the RFP (If OCONUS performance is
contemplated)

b. IAW PIL 2008-05-01, is the required Synchronized Pre-deployment
Operational Tasker (SPOT) Requirements contract language included in
the solicitation RFP (If performance in Iraq or Afghanistan (CENTCOM
AOR) contemplated IAW DoD Instruction 3020.41)

b. Is the Theater Business Clearance information incorporated into
the RFP in Section H of the RFP (If performance in Iraq or Afghanistan
(CENTCOM AOR) contemplated IAW DoD Instruction 3020.41)

Focus of Review: Has the above been included for any RFP where
OCONUS performance is contemplated?

Service Contracts Requirements
a. Performance Work Statement
Focus of Review:
- Is the requirement suitable for a performance-based Service
Acquisition (PBSA). FAR 37.6, OFPP Memo dtd 7/2/2006, DoD
Guidebook for Performance Based Service Acquisitions dtd 2000
- Is the Performance Work Statement (PWS) or Statement of Objectives
(SOO) written in terms of what rather than how the work is to be
accomplished?
- Is the PWS written in such a manner that would preclude a personal
service-type contract?

b. Wage Determination SF 98/98A (FAR 22.404-2)
Focus of Review: Have the appropriate DOL Wage Rates been
incorporated into the RFP?

c. Performance Requirements Summary (PRS)
Focus of Review:
- Are the appropriate performance incentives in the solicitation to
include the performance requirement summary (PRS) and or award/
incentive fee arrangements, if applicable developed and in the file?
- Are measurable performance standards incorporated at the contract
level?

d. Quality Assurance Surveillance Plan (QASP)
Focus of Review:
-Is there a Quality Assurance Surveillance Plan (QASP) in the file
(required for all service contracts over $2500)?
-Are surveillance plans fully described with clearly identified measures,
standards, and corrective actions and sufficient given cost, schedule,
and performance risks? .

Source Selection Plan (SSP)
a. Overall SSP/Task/Delivery Order SSP
Focus of Review:
- Is the Source Selection Plan and procedures IAW the AFARS and the
Army Source Selection Manual?
- Has the Source Selection Plan been approved by the SSA and posted to

the file? (Mandatory prior to release of solicitation? IAW FAR 15.303)
b. Evaluation Criteria
Focus of Review:
- Are evaluation criteria appropriate (i.e. limited key discriminators
based on risk analysis; linked to key program requirements; include
price or cost, quality, past performance, and extent of small business
participation) in order to select the best value contractor?
- Are requirements stated in certain terms such that the evaluators will
be able to assess whether the offeror meets or exceeds a particular
outcome?
- Are the criteria defined so that they are finite, measurable in readily
understood quantitative or qualitative terms, and prioritized?
- Described in sufficient detail to communicate how the proposals will
be evaluated and ratings determined?

Source Selection Organization
a. Source Selection Authority
Focus of Review: SSA is appropriate given level and complexity of the
acquisition and appointed by the appropriate authority IAW DOD
Source Selection Procedures and PIL 2012-07, USACE Contract Source
Selection Guidance?

b. Source Selection Team
Focus of Review: SSO (SSAC, Senior Procurement Advisors, SSEB Chair,
Factor Chairs) are appropriate given level and complexity of the
acquisition and appointed by the appropriate authority IAW DOD
Source Selection Procedures?

PHASE II (PRE-AWARD)

Solicitation & Contract Number: __________________________________ Date(s) Reviewed: ____________

Project: _____________________________ Estimated Dollar Value: _______________

This toolkit is provided for use by Pre-Award Contract Review Boards in performing Independent Peer Reviews, as well
as a self-check by Contract Specialists and Contracting Officers. Areas highlighted in pink are key focus items for
Independent Peer Review Boards. However, this toolkit is not to be considered an all-inclusive listing, some items do
not apply to all requirements, and additions/deletions may be required by changes to regulations and/or in support of
local requirements.

Items highlighted in green are information to assist all in understanding the key areas of organizational focus for the
Peer Review Process. Items highlighted in pink are key areas of focus for Peer Reviewers.
The complete solicitation file will be provided as part of the local agency independent review which is to
be done prior to forwarding the key documents below for PARC or HCA level Peer Review.
Key Documents for Phase II (Pre-Award) Review: Conformed Solicitation, SSEB Summary Report(s),
SSAC Memoranda/resolution, SSA Briefings, Competitive Range Determination, POM, PNM, draft
contract award document. These documents should be provided to reviewers in advance IAW
instructions established for the Peer Review Process to expedite this process.
Objective of Phase II (Pre-Award) Review: Review is intended to track to soundness/completeness of
documentation, process, and events leading up the competitive range determination and in support of
the contract award decision (prior to award).

PRE-AWARD TOOLKIT Yes No N/A Remarks
Files
a. Are there any missing documents?
b. Are documents misfiled?
Legal Findings
a. Has local agency legal sufficiency been obtained for proposed
contract awards ( throughout the source selection process
evaluation; e.g. competitive range/POM/PNM/sorry letters etc)?

b. Have the legal comments been incorporated?
Additional comments concerning findings:

SOLICITATION
Solicitation and Amendments
- Focus of Review:
Does the contract file contain a copy of the final solicitation and
amendments (conformed) and does the solicitation still track back to the
approved Acquisition Plan?
- Do amendments include documentation as to why and where changes
were made to the RFP (including questions from Industry)?

Proposal Receipt/Screening (includes Task/Delivery Order Proposals)
a. Was there a late proposal received and if so is the disposition of
same documented? (FAR 15.208(b)(1) & FAR 15.208(h))

b. If a late proposal was received was the offeror notified promptly
and proposal held unopened, unless opened for identification, until after
award and then retained with other unsuccessful proposals.

c. Bid Bonds submitted with proposal If required
EVALUATION
Source Selection Team
Focus of Review:
- Are appointment letters for the SSA, SSAC, SSEB and other technical
members in the file?
- Are the personnel appointed as SSO members the same as those listed
in the SSP and participating in the evaluation?
- Have all participants completed a Source Selection Participation
Agreement (including non-disclosure/financial interest statements)?

Proposal Evaluations
Focus of Review:
- Was the source selection evaluation conducted in accordance with the
DOD Source Selection Procedures, the Source Selection Plan (SSP) and the
criteria in the solicitation?
- Overall Evaluation: Is the SSEB evaluation fully documented? Were
evaluation findings handled fairly/consistently across all proposals i.e.,
what is identified as a significant weakness in one proposal is identified
in that same manner in others
- Past Performance: Has the Government demonstrated due diligence in
pursuing Past Performance Information in the absence of CPARS data on
Offerors vs assigning a rating of neutral or unknown and considered
any information that was close at hand (i.e. all available information),
while allowing Offerors to respond to any negative PPI as appropriate
during clarifications and/or discussions.
- Cost/Price Analysis: Is there clear evidence of adequate cost/price
analysis and price reasonableness determination. Assessment of risk in
determining contractor profit (weighted guidelines DD1547 utilized IAW
FAR 15.404 policies/procedures)).
- Discussion of how GFP/GFE GFP affected price?
- Certificate of Current Cost or Pricing Data (if required) obtained and
documented in file; TINA waivers under exceptional circumstances
exemption granted in accordance with criteria at DFARS 215.403-1(c)(4)
- If cost and pricing data are required and KO cannot determine price
reasonableness, has field pricing support been requested IAW FAR
15.404-2?
- For cost reimbursement, was cost realism assessment performed to
determine most probable cost (MPC)?
- Small Business Participation: Does proposal support USACE SB goal? Is
there rationale for proposed SB participation? What is the extent of
commitment to use SB/HBCU, MI. Has the past performance in
utilization of SB concerns been considered?

Source Selection Advisory Council (SSAC) and Source Selection
Authority (SSA) Briefings

Focus of Review:
- Has the SSAC been briefed on the important details of the evaluation?
(if applicable)
- Are the SSAC recommendations clearly documented and resolved by the
Contracting Officer/SSEB Chair prior to briefing the SSA? (if applicable)

- Is the SSA briefing documented and concurrence on the evaluation
gained?
Award Without Discussions
Focus of Review: Is there an opportunity to make award without
discussions and is it supported and documented?(FAR 52.215-1)

Business Clearance (Award Without Discussions)
Combined POM(PNO)/PNM or Source Selection Decision Document
(SSDD)

Focus of Review: Has a combined Prenegotiation Objective
Memorandum (POM)/Price Negotiation Memorandum (PNM) or Source
Selection Decision Document demonstrating how the Governments
objectives were met without discussions been written and placed in the
file?

Competitive Range Determination and PreAward Debriefings
Focus of Review:
- Is the competitive range determination substantiated and clearly
documented by properly applying all factors stated in the solicitation?
- Has the SSA approved the Competitive Range?
- Were offerors eliminated from the competitive range notified promptly
and preaward debriefings conducted for requesting offerors and same
documented for the record (FAR 15.505)
Or Has the Contracting Officer established rationale for delaying
debriefings IAW FAR 15.505(b)?

Business Clearance (With Discussions)
Prenegotiation Objective Memorandum (POM)

a. Has the POM been approved by the Contracting Officer? (AFARS
5115.406-1)

b. As a minimum, does the POM contain all data required by
(AFARS 5115.406-1(B)) and in the proper format?

c. Does the POM accurately reflect the evaluation results and Items
For Negotiation (IFNs) identified as part of the evaluation?

Focus of Review: The pre-negotiation objectives are clearly stated,
approved at the appropriate level, and documented within the POM
prior to entering negotiations/discussions.

Exchanges, Communications and Discussions
Focus of Review:
- Have exchanges, communications and discussions been
appropriately documented? (FAR 15.306)
- Do discussion letters accurately reflect evaluation results and at a
minimum, provide significant weaknesses, deficiencies and adverse past
performance information? (FAR 15.306(d))

Unsuccessful Offerors
Unsuccessful Offeror Letters reflects an accurate record of rationale for
non-selection (FAR 15.503; FAR 8, FAR 16)

Negotiations
Meaningful discussions held with all offerors in competitive range
Request for Revised/Final Proposals
a. Negotiations closed by Contracting Officer

b. Revised/Final Proposals requested
Revised/Final Proposal Evaluation
Focus of Review:
- Was the source selection evaluation conducted in accordance with the
DOD Source Selection Procedures, the Source Selection Plan, and the
criteria in the solicitation?
- Overall Evaluation
Does the SSEB evaluation focus on the revised areas of the proposal in
context and is it documented appropriately? Were evaluation findings
handled fairly/consistently across all proposals i.e., what is identified as
a significant weakness in one proposal is identified in that same
manner in others.
- Cost/Price Analysis: Have DCAA Audit Reports been received/
comments or findings been resolved?
- Subcontracting Plans evaluated/approved IAW AFARS Appendix AA and
include eSRS requirement.

Business Clearance (With Discussions)
Price Negotiation Memorandum (PNM)

a. Has the PNM been approved at the appropriate level?
b. Has the Contracting Officers determined that the award price is
fair and reasonable and been documented? (FAR 15.4)

Focus of Review:
- Is the PNM structured in such a manner that would allow any reviewer
to track cost/price elements from the negotiation objectives through the
final negotiated outcome? (AFARS 5115.406-3)
- Does the PNM address all the significant issues contained in the POM?
- Does the PNM clearly articulate the outcome of negotiations and how
the Governments objectives achieved and documented in revised/final
proposals, or compromise/agreements made during the process?

Source Selection Advisory Council (SSAC) and Source Selection
Authority (SSA) Briefings

Focus of Review:
- Has the SSAC been briefed on the important details of the evaluation?
(if applicable)
- Are the SSAC recommendations clearly documented and resolved by the
Contracting Officer/SSEB Chair prior to briefing the SSA? (if applicable)
- Is the SSA briefing documented and concurrence on the evaluation
gained?

Source Selection Authority Decision (SSAD)
Focus of Review:
- Was the SSD derived from conduct of the source selection, based on a
comparative assessment of proposals against all source selection criteria
in the solicitation and is fully documented? (ASSM, FAR 15.308)
- Is the resulting business arrangement in the best interest of the
Government?

CONTRACT AWARD(S) AND SUPPORTING DOCUMENTATION
Contract Award(s)
Focus of Review:

- Proposed Contract reflects fair and proper application of source
selection criteria and outcome of negotiations/sole source process
- Is legally supportable, and represents a meeting of the minds between
the Government and the successful offeror(s).
- CLIN/SLIN structure adequately describes the quantity, unity of
measure, and unit cost and sets a distinct period of performance.
- Appropriate terms and conditions incorporated
- Subcontracting Plans incorporated into contracts with large businesses
at Section J
Responsibility Determination
a. EEO Clearance(s) (FAR 22.805)
b. DCAA Financial Capability Audit reports received (if applicable)
c. Determination of Responsibility (FAR 9.105-2).
Contracting Officers Representative (COR) Requirements
Contracting Officer Representative (COR) Nomination Letter(s),
Appointment Letter & COR Training Certificate(s)
(PIL 2011-02 & 2012-06)

Focus of Review: Has a COR been appointed in writing and evidence of
requisite training posted to the file?

Other Supporting Documentation
a. Congressional Notification prepared (DFARS 205.303 & AFARS
5105.303)

b. Central Contractor Registration (CCR) and EPLS verification
c. Are all ARRA requirements properly documented?
d. Certificate of competency, if required
e. IGE (validation of cost/price ceiling)
f. For Cost Plus Award Fee (CPAF) contract vehicles, has an Award
Fee Determination Official (AFDO) been delegated and appointed?
(FAR 16.405-2, DFARS 216.405-2, PGI 216.405-2, PIL 2011-10-R1,
AFARS 5116.405-2))

g. For Cost Plus Award Fee (CPAF) contract vehicles has an Award
Fee Plan been created and placed in the file? (FAR 16.405-2, DFARS
216.405-2, PGI 216.405-2, PIL 2011-10-R1, AFARS 5116.405-2))

h. Contract Administration Plan (as applicable) (FAR 42)
i. Performance & Payment Bonds - If required (if a true seed Task
Order will be issued at time of MATOC award), will the appropriate
bonds be requested in the requisite amounts for TO awardee prior
to NTP? (DFARS 228.201)

j. Approved Subcontracting Plan posted in the file
Protests
Were there any pre-award protests, and if so were they resolved?
(FAR 15.507 and FAR 33)

Page 112

___________________________________________________________________________________________

APPENDIX 1-6
COR FILE REVIEW CHECKLIST

On ____________________ a review was conducted on the operations and records maintained by the
Contracting Officers Representative (COR) located within the following office ___________________

Reviewers name: _____________________________________________
Name of COR: ________________________________________________
CORs office symbol and position title: _____________________________
CORs telephone: (____) ____________________________

Contract/Delivery/Task/Purchase Order Number Reviewed: _______________________________

1. ADMINISTRATIVE ISSUES: (information should be gathered at the District/Center)
a. Is there a COR nomination memo from the requiring activity on electronic file?
YES NO

b. Has the COR been designated in writing IAW DFARS 201.602-2(2)(v) and is a copy of the designation in the
electronic PCF file? YES NO

c. Is the CORs training complete and current IAW PIL 2012-06-R1?
YES (date refresher training is due) ____________________ NO (attach corrective action plan)

2. INTERVIEW:
a. Is the COR aware of their responsibility to advise their supervisor and the Contracting Officer of any conflict,
if they have reason at any time to believe that they may have a direct or indirect financial interest, which would
place them as COR in a position where there is a conflict between their private interests and the public interests
of the United States? YES NO

b. If they are to be reassigned or separated from Government service, is the COR aware of their responsibility
to notify the Contracting Officer in advance of reassignment or separation to permit timely selection and
designation of a successor COR? YES NO

c. Does the COR rely on input provided by technical specialists? YES NO N/A

d. On service contracts does the COR routinely verify appropriateness of categories of labor used in comparison
to the work described in the Performance Work Statement (PWS) or Statement of Work (SOW) and the
approach specified in the offerors technical proposal? YES NO N/A

3. CONTRACT SURVEILLANCE:
a. Is the COR signing written communications with the contractor and other documents about the contract as
"Contracting Officer's Representative"? YES NO

b. Does the COR file contain surveillance/inspection and/or site visit reports? YES NO
Are they completed timely and are they well documented?____________________________________

c. Does the file contain evidence of the CORs notification to the contractor of deficiencies observed during
surveillance and of appropriate action being taken in accordance with the terms of the contract and their COR
designation letter to effect correction? YES NO N/A

d. Does the COR file contain reports to the PCO/ACO regarding incidents of faulty or nonconforming work,
delays, deficiencies or problems? YES NO N/A

e. Does the COR produce memoranda for record (MFR) or minutes of all meetings and/or discussions with the
contractor or others pertaining to the contract or contract performance and provide such data to all applicable
parties? YES NO N/A Are they recorded timely, clear, concise, and complete?
_________________________________________________________________________

4. INVOICES / RECEIVING REPORTS:
a. Are invoices annotated to reflect timely and proper processing? (Acceptable evidence is the Payment Form
ENG 93/CEFMS documentation, Wide Area Workflow Inspector/Acceptor or Acceptor/LPO combination, DD250,
or MFR (for paper process) signed and dated by the Reviewing Official.) YES NO N/A

b. Does the COR routinely determine the reasonableness of the number of hours worked (for Cost, Labor Hour
or T&M contracts) and materials used (for T&M contracts)? YES NO N/A

c. Does the COR appropriately apply the provisions of the Prompt Payment Act? YES NO

5. CONTRACTOR PERFORMANCE ASSESSMENT:
a. Does the dollar value of this action indicate a performance assessment is required?
YES NO (If no contracts require a performance assessment, skip the remaining questions in Section 4.)

b. How is the COR documenting contractor performance IAW FAR 42.1502?
CPARS (CCASS/ACASS) Interim paper copy Not Documenting Performance

c. Are assessments treated as Source Selection Sensitive Information IAW FAR 3.104? YES NO

d. Are assessments completed within 120 days of the end of the assessment period and included in the file?
YES NO N/A

e. Are contractors given the opportunity to comment before assessment report is finalized IAW with PIL 2011-
04? YES NO

6. PROCEDURES:

a. Does the COR receive and review periodic progress reports when required by the contract/order?
YES NO N/A

b. Is the COR submitting the periodic performance reports on the contractor to the Contracting Officer as
specified in their designation memo? Yes No Comments_________________________________

7. RECORDS - Do the COR files contain the following?
a. Copy of contract/task/delivery/purchase order; modifications; property records (if applicable) and
designation memo. YES NO

b. Copies of all letters to/from Contractor and all contract deliverables. YES NO

c. Copies of all Contractor invoices and/or receiving reports (CEFMS or WAWF records are acceptable).
YES NO N/A

d. For services a copy of the applicable QASP or for A-E or construction a copy of the quality assurance plan or
quality management plan. YES NO N/A

e. If a QASP, quality assurance plan, or quality management plan is applicable, evidence of oversight and
enforcement. YES NO N/A

f. For services, to include A-E, copies of contractors periodic (time frame specified in designation memo)
performance reports or for construction copies of the contractors daily quality control and quality assurance
reports provided to PCO/ACO. YES NO N/A

g. A record of inspections performed and the results. YES NO N/A

h. Memoranda for record or minutes of any meetings and discussions with the contractor or others pertaining
to the contract or contract performance YES NO N/A

i. Records relating to the contractors quality control system and plan and the results of the quality control
effort. YES NO N/A

General Comments / Recommendations__________________________________________________

____________________________________________________________________ ______________

____________________________________________________________________ ______________

____________________________________________________________________ ______________

Reviewer: _________________________ Date: _________________________________

Title: _______________________________________

Page 116

___________________________________________________________________________________________

APPENDIX 2-1
DIRECTORATE OF CONTRACTING (DOC) DOCUMENT
REVIEW AND APPROVAL MATRIX

USACE ACQUISITION DOCUMENT REVIEW & APPROVAL MATRIX

(This Matrix is a guide to assist Contracting Officers in preparing and submitting acquisition documents for review and approval
and not substitute for exercising due diligence. This Matrix includes the most common acquisition documents executed by
USACE requiring review and approval above the Contracting Officer it is not all inclusive. Contracting Officers shall ensure
compliance with all FAR, DFARS, or AFARS requirements or applicable DoD/Army policy guidance. If the approval authority has
been delegated, the column identifies who approves the action. (Where HQ DOC or PARC are listed, the Deputy DOC or Deputy
PARC have these authorities to act on behalf of the HQ DOC or PARC when the HQ DOC or PARC is absent). For acquisition
milestone planning purposes, Approximate Total Approval Days equals workdays.)
DOCUMENT & REGULATORY CITE(S)
DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
ACQUISITION PLAN/ADDENDUM TO ACQUISITION PLAN
Programmatic Acquisition Plans/
Acquisition Plans (Exclusive of ECI
Acquisition Plans) (FAR Part 7, DFARS
207.1, AFARS 5107.103)
$25M for any fiscal
year/ $50M for all
years
PARC 40
Acquisition Plans - Required Approvals
Outside the Contracting Chain at
USACE Headquarters (Applicable to ECI
- Refer to PIL 2011-06, p. 4)
>$0
Director, MSC & Director, HQ
Military Programs Integration
(CEMP-I)
40
Programmatic Acquisition
Plans/Acquisition Plans - Contracting
Chain Approvals - (Applicable to ECI
acquisitions - Refer to PIL 2011-06 in
its entirety)
>$0 PARC 40
Programmatic Acquisition
Plans/Acquisition Plans (Research and
Development Acquisitions (Refer to
DFARS 207.103(d)(i)(A))
>$10M PARC 40
Addendum to Acquisition Plan
Approval at Same Level as Acq Plan

12
ACQUISITION STRATEGY - Performance Based

(Services Acquisition Strategies over $10M (including base and any options) must be accompanied by an approval of the service
requirement by the Command Service Executive (CSE) - which is accomplished separate from (and as early as possible in the
requirements development process) the Acq Strategy compliance review. CSE Program Manager will coordinate copy to
applicable Portfolio Manager (PfM). All Acquisition Strategies $500M-$1B will be processed by the DASA(P) SSM to the DASA(P)).
Acquisition Strategy (AFARS 5137.590-
4(g) service acquisitions)
>SAT<$10M DCC/CCC 10
4 (f) service acquisitions & ASA(ALT)
Interim Policy dtd 20 Dec 2011)
>$10M<$250M

PARC
50
4(d)) service acquisitions ALL
TYPES OF SERVICES & ASA(ALT)
Interim Policy dtd 20 Dec 2011)
$250M<$500M DASA(P) SSM 90

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
4(d)) service acquisitions Non-IT &
ASA(ALT) Interim Policy dtd 20 Dec
2011)
$500M>$1B
Pre-Brief to OSBP,
DASA(P) SSM Chaired ASSP &
DASA(P) SSM Approval

114
4(b) & (c)) service acquisitions for IT)
$500M>$1B
Pre-Brief to OSBP,
DASA(P) Chaired ASSP &
ASD(NII)/DoD CIO or
DASA(P) SSM
219
4(c)) service acquisitions for ALL
TYPES OF SERVICES)
>$1B DPAP 219
APPOINTMENTS
Award Fee Determining Official
Appointment (AFARS 5116.405-
2(b)(2)(C))
<$10M DCC/CCC 2
Award Fee Determining Official
Appointment (AFARS 5116.405-
2(b)(2)(C))
>$10M PARC 12
PCO Warrants, Grants Officer
Warrants, ACO Warrants (AFARS
5101.603-1(1)(iii)(1)) & USACE
Contracting Officer Warrant Program
PIL 2012-09
Per regulation PARC 12
Use of Contractor Support (Non-
Government Advisors) in Source
Selection Evaluation (FAR37.203 and
204; AFARS 5137.204; AS3 & DoD
Manual p1.4.5.2)
>$0 PARC 19
Source Selection Authority (SSA)
Appointment for Acquisitions not
managed IAW DoDD 5000.1 when
Formal Source Selection Procedures
are Used (AFARS 5115.303(a)(ii)(B) &
PIL 2012-07)
>$100M<$250M PARC 7
SSA Appointment for Acquisitions not
managed IAW DoDD 5000.1 when
Formal Source Selection Procedures
are Used (AFARS 5115.303(a)(ii)(B) &
PIL 2012-07)
>$250M<$500M HQ DOC 7
SSA Appointment (PIL 2012-07)
>$500M
(Construction &
Supply only)
HQ DOC 7

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
SSA Appointment (AFARS
5115.303(a)(iv) & PIL 2012-07)
(Requires Ethics Briefing Certification
& Bio on Nominee)
>$500M (services
only)
DASA(P) 45
BUSINESS CASE ANALYSIS FOR CERTAIN INTER-AGENCY & AGENCY-SPECIFIC ACQUISITIONS

(NOTE: Agency-specific contract is an IDIQ contract intended for the sole use of the establishing department or agency. Agency-
specific contracts may be agency-wide (sometimes referred to as enterprise-wide) or limited to one or more specific
component organizations within the agency).
Approval of Business Cases for Certain
Inter-Agency or Agency-Specific
Acquisitions - Government-Wide
Acquisition Contracts (GWACS) (IAW
Army Policy Alert 12-09 issued 20
December 2011)
Regardless of
Dollar Value
SPE 114
Acquisitions - Covered Multi-Agency
Contract or Multi-Agency BPA (IAW
Army Policy Alert 12-09 issued 20
December 2011)
>$100M (FY13)
>$50M (FY14)
SPE 114
Acquisitions - Covered Agency-Specific
("Enterprise-Wide") Contract or BPA
(IAW Army Policy Alert 12-09 issued 20
December 2011)
>$100M (FY13)
>$50M (FY14)
SPE 114
CONGRESSIONAL NOTIFICATION - ALERTS TO DASA(P)
Congressional Notification (DFARS
205.303, AFARS5105.303, PARC Policy
Alert 10-14)
>$6.5M DASA(P) 3
Urgent Congressional Notification
(DFARS 205.303, AFARS5105.303,
PARC Policy Alert 10-14)
>$6.5M DASA(P) 1
Extension of Congressional
Notification (DFARS 205.303,
AFARS5105.303, PARC Policy Alert 10-
14)
>$6.5M DASA(P) 3
CONSOLIDATION REQUIREMENTS
Consolidation of Contract
Requirements D&F (AFARS 5107.170,
DFARS207.170-3, 10 U.S.C. 2382)
(Submission Concurrent with
Acquisition Plan or Acquisition
Strategy)
$5.5M<$100M PARC 40

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
DFARS207.170-3, 10 U.S.C. 2382)
Strategy)
>$100M<$500M HCA 54
DFARS207.170-3, 10 U.S.C. 2382)
Strategy)
>$500M DASA(P) 114
DETERMINATION & FINDINGS FOR SERVICES ACQUISITION STRATEGY - Non-Performance Based
Acquisition of Services - not
performance based (DFARS 237.170-2
(a)(2))
>SAT<$11.5M DCC/CCC 10
(a)(2))
$11.5M<$85.5M HCA 54
(a)(1))
>$85.5M
HCA Endorse
SPE Approve
114
DETERMINATION & FINDINGS FOR CONTRACT TYPE
Determination and Findings for
Justification of Contract Type (FAR
16.401(d) & PARC Policy Alert 12-12,
dtd 11 January 2012)
>$100M>$250M PARC 33
Determination and Findings for
Justification of Contract Type (FAR
16.401(d) & PARC Policy Alert 12-12,
dtd 11 January 2012)
>$250M HQ DOC 33
Use of Time and Material (T&M)
Contract prior to execution of the base
period or any option periods of less
than 3 years (FAR 16.601(d)(1)(i) &
DoD Class Deviation 2012-O0016, 11
Oct 2012, Approval Threshold for T&M
and LH Contracts and Preference for
CPFF)
<$1M
DCC/CCC
(One Level
Above KO)
2
Use of T&M Contract Type prior to
execution of the base period or any
option periods of less than 3 years
(FAR 16.601(d)(1)(i) & DoD Class
Deviation 2012-O0016, 11 Oct 2012,
Approval Threshold for T&M and LH
Contracts and Preference for CPFF)
>$1M
SPE
*Approval Authority
Being Reviewed and
Possible Change to be
Issued via USACE Policy
Alert by HQ CECT-P
54

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
Use of T&M Contract prior to
execution of the base period when the
base period plus options exceeds 3
years (FAR 16.601(d)(1)(ii)) and (d)(2)
& DoD Class Deviation 2012-O0016, 11
Oct 2012, Approval Threshold for T&M
and LH Contracts and Preference for
CPFF)
>$0M HCA 54
Use of Cost Reimbursement Award Fee
and "Hybrid" Contract Type (PIL 2011-
10-R1)
>$0
PARC
(Must have Specific Delegation
from HCA)
40
DETERMINATION & FINDINGS FOR FOREIGN MILITARY SALES (FMS)
FMS Sole Source Actions (DFARS
206.302-4(c) and 10 U.S.C.
2304(f)(2)(E))
>$0 HCA 33
DETERMINATION & FINDINGS FOR NON-DOD CONTRACTS
Non-DOD Contracts and Delivery
Orders for Supplies and Services
(DFARS 217.7802(b) required when
>SAT - PIL 2009-02)
>$150K<$25M DCC/CCC 3
>SAT PIL 2009-02)
>$25M<$100M PARC 12
>SAT PIL 2009-02)
>$100M<$500M HCA 26
>SAT PIL 2009-02)
>$500M DASA(P) 86
DETERMINATION & FINDINGS FOR SINGLE AWARD TASK ORDER CONTRACTS (SATOCS)
D&F for use of Single Award
Task/Delivery Order Contracts (FAR
16.504 (c)(1)(ii)(D)(1)(i), (ii) & (iii) &
DFARS216.504)
>$103M SPE 114
D&F for use of Single Award
Task/Delivery Order Contracts (FAR
16.504 (c)(1)(ii)(D)(iv) - public interest)
& DFARS216.504) (Congress must be
notified of determination within 30
days of D&F approval)
>$103M
Public Interest
SPE
& Notice to Congress
114

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
DETERMINATION TO OBTAIN CERTIFIED COST & PRICE DATA BELOW THRESHOLD
Authorization to Obtain Certified Cost
and Pricing Data on Actions Below
Threshold (FAR 15.403-4(a)(2)
<$700K HCA 15
JUSTIFICATION AND APPROVALS (FAR 6.304)/ EXCEPTIONS TO FAIR OPPORTUNITY (FAR 16.505(b)(2)/
LIMITED SOURCE JUSTIFICATIONS (FAR 8.405-6)
Justification and Approval (FAR
6.304(a)(1)) (Submit to PARC for
reporting and best practices)
<$650K KO 7
6.304(a)(2)) (This includes sole source
actions for FMS)
>$650K<$12.5M
PARC-Level Special Comp
Advocate (SCA)
19
6.304(a)(3)) (This does not include FMS
- For FMS sole source actions see
"Determination & Findings for FMS")
>$12.5M<$85.5M HQ DOC 33
Sole Source Award to 8(a)
(FAR 6.204 & 15 U.S.C. 637(a))
>$20M<$85.5M HQ DOC 33
6.304(a)(4))
>$85.5M SPE 151
MISCELLANEOUS ACTIONS
Award without Preaward EEO
Clearance - (use only if contract of
urgent and critical nature would be
delayed beyond time necessary to
make award (FAR 22.805(a)(8))
>$0 PARC 19
Use of Letter Contracts Limitations
(FAR 16.603-3, DFARS 216.603-3)
>$0 PARC 7
Use of Undefinitized Contract Actions
(UCAs) (DFARS 217.7400, 217.7402
Exceptions, & 216.603 - USACE HCA
has delegated approval of UCAs to the
PARC via written letter)
>$0 PARC 7
Appeal by SBA PCR of Contracting
Officer Rejection of Set-Aside
Recommendation Decision (FAR
19.505(b) & DFARS 219.505(b))
>$0 PARC 10
Use of Unusual Progress Payments
(FAR32.501-2(a)(3) & AFARS5132.501-
2(a)(3))
>$0
PARC
(Copy must be submitted to
DASA(P))
19
Release of Long Range Acquisition
Estimates (AFARS5105.404-1(a))
>$0 PARC 19

Violations or Possible Violations of
Procurement Integrity Act (FAR 3.104-
7/AFARS 5103.104-7)
>$0 PARC 40
No Share of Collateral Savings under
the Value Engineering Clause and Use
of Clause's Alternate 1 (FAR 48.104-
3(a), 48.201(e), 52.248-3)
>$0 PARC 19
Award/Extension of Contracts for >18
Months for a Vessel, Aircraft or Vehicle
Lease, Charter or Similar Agreement
(DFARS 207.470(b))
>$0 PARC 28
Use of Fixed-Ceiling-Price Contract
with Retroactive Price Determination
(applicable to R&D only, refer to FAR
16.206-3(d))
<$150K PARC 19
Use of Alternate Structured Approach
in Determining Profit or Fee Objectives
(DFARS 215.404-4(c)(2)(C)(2))
>$0 PARC 19
Deny contractor request for relief
under Public Law 85-804 (AFARS
5150.102-1-70(a)(i), FAR50.103, DFARS
250.102(b), DFARSPGI 250.103-5)
Per Regulation PARC 40
Approve substitution of a surety bond
(FAR 28.106-2)
>$0 PARC 19
Issuance of a Personal Services
Contract (D&F Required IAW DFARS
237.104(b)(iii)(A))
>$0 HCA 33
Exceptions to Policy at FAR 3.601 &
3.602 Contracts with Government
Employees or Organizations Owned by
Government Employees
>$0 HCA 33
Buy American Act--Construction
Materials Exception (AFARS
5125.202(a)(1) and (a)(2))
>$0 HCA 33
Exception to Prohibition Against
Issuance of a Solicitation for R&D
Contract Incrementally Funded Over
Successive Years - Approval must
identify FYDP Revisions to Include
Adequate Resources (AFARS
5101.602-2(a)(ii)(D))
>$0 PARC 40

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
COMBINED COMPLIANCE & PEER REVIEWS
Competitive and Non-Competitive
Acquisitions Prior to Solicitation
Issuance & Prior to Contract Award
>Micro-Purchase
to <$500K

>$500K<$50M

>$50M<$250M
BOB or Peer
Designated by DCC/CCC

DCC/CCC

PARC (thru RCC)
5

10

15
COMPLIANCE REVIEWS
Non-Competitive Acquisitions Prior
to Entering Negotiations & Prior to
Contract Award

-OR-
Competitive Acquisitions Prior to
Solicitation Issuance; Prior to
Requesting Final Proposal Revisions; &
Prior to Contract Award

(Note: PARC Approval Required PRIOR
to Scheduling HCA or Higher Peer
Review)
>$250M PARC (thru RCC) 15
PEER REVIEWS
(AT HCA LEVEL AND ABOVE - Separate from Compliance Reviews)
Non-Competitive Acquisitions Prior
to Entering Negotiations & Prior to
Contract Award
>$250M<$500M

>$500M
HCA (thru DOC)

DPAP (thru HCA & DASA(P))
15

45-60
Competitive Acquisitions Prior to
Solicitation Issuance; Prior to
Requesting Final Proposal Revisions; &
Prior to Contract Award
>$250M<$1B

>$1B
HCA (thru DOC)

DPAP (thru HCA & DASA(P))
15

45-60
Post Award Review of Service
Acquisitions (with ASSP Approval by
HQDA)
>$500M<$1B DASA(P) (thru HCA) 30-45
Post Award Review of Service
Acquisitions
>$1B DPAP (thru HCA & DASA(P)) 45-60
UNAUTHORIZED COMMITMENTS
Ratify Unauthorized Commitment
(AFARS5101.602-3) (Submit to PARC
for reporting purposes)
<$10K DCC/CCC 7
Ratify Unauthorized Commitments
(AFARS5101.602-3)
>$10K<$100K PARC 19
Ratify Unauthorized Commitment
(AFARS5101.602-3)
>$100K HCA 33

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
WAIVERS
Use of Forward Pricing Rate
Agreements Waiver (DFARS 215.407-
3(b)(i))
>$700K PARC 19
Use of Required Sealed Bid Clause
"Price Reduction for Defective
Certified Cost or Pricing Data --
Modifications -- Sealed Bidding" OR
"Subcontractor Certified Cost or
Pricing Data -- Modifications -- Sealed
Bidding" in Exceptional Cases for
Contracts with Foreign Governments
or Agency of that Govt Waiver
(FAR14.201-7(b)(2), 52.214-27 &
FAR14.201-7(c)(2), 52.214-28)
>$0 PARC 19
Use of "Insurance--Liability to Third
Persons" Clause - Applicable to Cost
Reimbursement Contracts Waiver
(DFARS 228.311-1)
>$0 PARC 40
Waiver of Certified Cost and Pricing
Data in Exceptional Cases (FAR 15.403-
1(c)(4) Applies only to Prime Contract
Action, may not apply to Subcontracts)
>$700K HCA 15
CONTINGENCY CONTRACTING DOCUMENT REVIEWS & APPROVAL (Applicable Only to Contingency Contracting)
NOTE: Refer to DFARS Joint Contingency Contracting Guide - Table 1 Contingency Approval Authorities
Contingency Contracting
Micropurchase Threshold
(awarded/performed/purchased
OCONUS (FAR 13.201(g)(1)(ii))
$30K
Contingency Contracting Simplified
Acquisition Threshold (awarded
/performed/purchased OCONUS)
(FAR 2.101(b) & FAR 13.201(g)(1)(ii))
$1M

Authority to acquire products and services produced in Iraq and Afghanistan
(Refer to DFARS 225.77, Public Law 110-181 Section 886, and PIL 2013-01):
For the acquisition of products and
services for an Individual Acquisition
(including construction) not limited to
use by the military forces, police or
other security personnel of Iraq or
Afghanistan (DFARS 225.7703-
2(b)(2)(b)(1)(i)) & PIL 2013-01
<$85.5M HCA 54

DOLLAR
THRESHOLD
APPROVAL AUTHORITY
APPROX. TOTAL
APPROVAL DAYS
services for an Individual Acquisition
2(b)(2)(b)(1)(ii)) & PIL 2013-01
>$85.5M DPAP or AAE 114
services or for a class of acquisitions
2(b)(2)(b)(1)(ii)) & PIL 2013-01
>$0 DPAP or AAE 114
For Individual Acquisition of products
and services (including construction)
to be used only by the military forces,
police or other security personnel of
Iraq or Afghanistan (PIL 2013-01)
(Submit to PARC for reporting and
best practices)
SAT<$7.777M CCC/DCC 10
Iraq or Afghanistan ( PIL 2013-01)
(Submit to PARC for reporting and
best practices)
$7.777M<$15M RCC 10
Iraq or Afghanistan ( PIL 2013-01)
>$15M PARC 40

Page 125

_____________________________________________________________________________________

APPENDIX 6-1
AFTER-THE-FACT J&A UPWARD REPORTING FORM

After-The-Fact J&A Upward Reporting Form

Page #

1. Contracting Officer: ___________________________________________

E-Mail: ______________________________________________

Telephone No.: _______________________________________

2. Center/District Chief of Contracting: ______________________________

E-Mail: _____________________________________________

Telephone No.: ______________________________________

3. Technical Point of Contact: _____________________________________

E-Mail: _____________________________________________

Telephone No: _______________________________________

4. Description of urgent requirement:

Goods/services to be procured:

Explain the unusual and compelling urgency circumstances of this procurement action
(include impact on quality of life, readiness, or loss to the Government):

Explain why a J&A cannot be prepared and submitted at this time:

Estimated Dollar Value: ________________________

Contract type (e.g.; FFP, T&M): ___________________________

Date of Award: _______________________________________

5. Date verbal notification provided to SCA or ASCA (PARC): __________________

6. Date verbal approval received :____________________________

7. Date J&A will be submitted to the SCA or ASCA (PARC): ___________________

Note: a. Actions over $650,000 up to $12,500,000, the J&A must be submitted within 10 calendar days
after verbal notification to the SCA or ASCA (PARC).
b. Actions over $12,500,000, the J&A must be submitted within 5 calendar days after verbal
notification to the SCA or ASCA (PARC), for timely processing of higher level approval.

Page 127

USACE ACQUISITION INSTRUCTION
____________________________________________________________________________________

APPENDIX 6-2
JUSTIFICATION OF PROCUREMENT METHOD
TEMPLATE

Page 131

MEMORANDUM FOR RECORD DATE

SUBJ ECT: J ustification of Procurement Method, Firm-Fixed-Price, Cost- Reimbursable,
Indefinite Delivery, Indefinite Quantity (IDIQ), Single Award Task Order Contract
(SATOC) for TITLE OF PROJECT

1. Reference Procurement Instruction Letter (PIL) 2008-07-01, dated 11 J ul 2008,
subject: J ustification of Procurement Method.

2. The subject contract will be procured as a negotiated contract pursuant to FAR
6.401(a) criteria as outlined in the table and discussed below:

FAR 6.401(a) Criteria

Applicable to this Question

Time permits the solicitation, submission,
and evaluation of sealed bids;
Yes No
The award will be made on the basis of
price and other price-related factors;
Yes No
It is not necessary to conduct discussions
with the responding offerors about their
bids; and
Yes No
There is a reasonable expectation of
receiving more than one sealed bid.
Yes No

a. Time permits the solicitation, submission, and evaluation of sealed bids. This is
applicable to this acquisition. Though on an accelerated schedule, there is ample
time for the Government to solicit, Bidders to submit, and the Government to
evaluate sealed bids.

b. The award will be made on the basis of price and other price-related factors.
This is not applicable to this acquisition. This solicitation will require the evaluation
of management and technical factors as well as cost. There is a need to insure that
offerors have the capability to perform environmental consulting services projects.
This can only be insured through the use of non-price evaluation factors using
Request for Proposal techniques under FAR Part 15 whereby experience and past
performance on same / similar work can be evaluated.

c. It is not necessary to conduct discussions with the responding offerors about
their bids. This is not applicable to this acquisition. Should the Government find
that offerors do not understand the terms and conditions of the solicitation, or there
are discrepancies in the evaluation of criteria, the Government must have the right to
discuss those weaknesses and/or deficiencies with offerors to obtain the best value
to the Government.

Page 131

d. There is a reasonable expectation of receiving more than one sealed bid. This
is applicable to this programmatic acquisition. There is a reasonable expectation
under any contract issued out of the Tulsa District Office that more than one sealed
bid will be received.

3. Risk. There is little risk associated with this procurement as a negotiated action.
Using the trade-off method, Tulsa District will have the tools and criteria necessary for
selection of a contractor that will provide the best value to the Government for this
requirement.

4. Detailed Analysis.

a. The use of sealed bidding is not appropriate in this instance as all four conditions
specified by FAR 6.401(a) are not present. Due to the wide range and technical
complexities required in this procurement, it may be necessary to conduct
discussions with the responding offerors to discuss demonstrated ability in areas
such as management, experience, administrative procedures, and technical
understanding of the work. As evidenced above, the award decisions must be made
on other than price or price-related factors to assure the Government receives the
best combination of technical quality and costs. FAR Part 15 procedures will be
utilized so the Government may consider non-price factors in the award decision.

b. Tulsa District currently receives numerous proposals for each Request for
Proposal (RFP) issued. Responding offerors typically have weaknesses or
deficiencies that must be addressed through discussions in order to clarify the
Governments requirements and receive adequate information to determine the best
value to the Government under a tradeoff method of selection. Without the ability to
negotiate with firms for large projects such as the subject requirement, the
Government would not receive the best-value.

5. In accordance with FAR Part 6.401(b), and the reference above, the use of
competitive proposals is justified.

___________________________
XXXXX X. XXXXX
Contracting Officer

____________________________
XXXXX X. XXXXX
Office of Counsel

Page 131

______________________________________________________________________________

APPENDIX 6-3
J&A CHECKLIST &
LINK TO DASA(P) J&A SOP 13-01

Page 131

J ust i f i c at i on and Appr oval (J & A) Cont ent s Chec k l i st
FAR 6.303-2; AFARS 5106.303-2 & 5153.9005.
For Pr oc essi ng of J & As Gr eat er t han $85.5M Ref er t o DASA(P) SOP

For mat . AFARS 5153.9005.

(___) Per FAR 6.303-2(a), each J &A must contain sufficient information to justify the use of the cited authority.
The J &A needs to be a well-composed document that fully justifies the agencys action. It is often the critical
document subjected to judicial scrutiny in litigation opposing the agency action.

At a minimum, the justification must include:

(___) Cont r ac t i ng Ac t i vi t y: Specify the contracting activity responsible for this action.

(___) Desc r i pt i on of Ac t i on: State whether approval is being requested for a new contract, a class of
contracts, or a modification. Include the type of contract, appropriation to be used (RDTE, OPA, OMA), the
estimated cost or price, and when applicable, the estimated share ratios and ceiling price, and fee or profit.
[The format specified in AFARS 5153.9005 is mandatory for contract actions greater than $85,500,000.]

(___) Desc r i pt i on of Suppl i es/Ser vi c es:
Describe in detail the supplies/services being sought. Include the estimated total value, including options, if
any.

(___) Aut hor i t y Ci t ed: Identify the statutory authority permitting other than full and open competition,
followed by the FAR citation down to the lowest level, and FAR citation title.

(___) Reason f or Aut hor i t y Ci t ed: Describe how this action requires the use of the authority cited. If
applicable, identify the proposed or potential contractor(s), and include a discussion of the proposed
contractors unique qualifications for fulfilling the contract requirements.

When citing FAR 6.302-1(a)(2)(ii) or (iii) for a follow-on acquisition as the basis for the J &A, clearly articulate (1)
the substantial duplication of costs to the U.S. that are not expected to be recovered through competition and
how the estimate was derived or (2) the unacceptable delays in filling agency needs.

If the authority cited is FAR 6.302-2, include the required delivery schedule and lead-time involved as well as a
discussion of the serious injury to the Government, which would result if award of a contract is delayed. J &As
citing 6.302-2 as their authority may be submitted after the fact.

J &As citing FAR 6.302-2 and 6 must request proposals from as many potential sources as practicable under
circumstances.

(___) Ef f or t s t o Obt ai n Compet i t i on: Describe efforts to ensure that offers are solicited from as many
potential sources as is practicable. Also, describe the extent of effective competition anticipated for this
acquisition.

(___) Ac t i ons t o I nc r ease Compet i t i on: When it is impracticable to compete the current acquisition,
and competition may be a viable option for subsequent acquisitions, include a statement of the actions taken,
or to be taken, to increase competition (e.g., breakout) before any subsequent acquisition of the supplies or
services. Provide the approximate date the technical data package will be available.

(___) Mar k et Resear c h: Describe the extent and the results of the market research (FAR Part 10)
conducted to identify all qualified sources. Research must have been meaningful and conducted within the
previous 12 months.

Page 131

(___) I nt er est ed Sour c es: Include a listing of the sources that have written to express interest in the
acquisition. If applicable, clearly state that To date, no other sources have written to express an interest. If
FAR 6.302-1 is the authority being cited for a J &A, explain why other sources were rejected. Also, state that
the notices required by FAR 5.201 shall be or have been published, and that any proposals received shall be
considered. If a FedBizOpps notice is not posted, state which exception in FAR 5.202 applies.

(___) Ot her Fac t s: Discuss any other facts supporting the use of other than full and open competition, such
as the following:

[ ] Procurement history. List the following items, below, or describe the efforts made to retrieve the items from
computer records, contract files competition advocate office files, or other sources as expected:

(1) Contract numbers and dates of the last several awards.

(2) Competitive status of these actions.

(3) Authority previously used for less than full and open competition.

(4) If a J &A was prepared to support the procurement made before this one, include a summary of the contents
of paragraph seven of the justification for that procurement and an explanation of the results.

(5) If any award for a similar type item was accomplished using full and open competition, include a detailed
explanation of the changed circumstances preventing use of full and open competition with this
procurement.

(6) An explanation of unusual patterns which may be revealed by the history, e.g., several consecutive urgent
buys.

(7) If a justification was prepared to support the procurement made before this one, briefly describe the
circumstances justifying the buy and whether there have been any significant changes.

b. Acquisition data availability. Explain why technical data packages, specifications, engineering descriptions,
statements of work or purchase descriptions suitable for full and open competition have not been developed or are
not available. Describe the actions taken or planned to remedy this situation.

c. Unusual and compelling urgency. When FAR 6.302-2 is cited, provide data, estimated cost or other rationale to
explain the nature and extent of the injury to the Government. If the delay is associated with the requirement for first
article testing, does the principal reason for not awarding the contract on a full and open basis clearly describe the
reasons that first article testing is required in this procurement and why other means of assuring quality are not being
used.

d. Subcontracting competition. In single source situations, address efforts that will be taken by the Government to
assure that the prime contractor obtains as much competition as possible in its subcontracting.

(___) Tec hni c al Cer t i f i c at i on: Include the following statement:

I certify that the supporting data under my cognizance which are included in the justification are accurate and
complete to the best of my knowledge and belief.
Typed Names:___________ Date: ___________
Title: _______________Signature: ___________

(___) Requi r ement s Cer t i f i c at i on: Include the following statement:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete
to the best of my knowledge and belief.
Typed Name: _____________ Date: _____________
Title:________________ Signature: _____________

Page 131

(___) Fai r and Reasonabl e Cost Det er mi nat i on: Include the following determination:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and
reasonable. Provide the basis for this determination (e.g., describe techniques to be used to determine fair and
reasonable price, such as cost analysis, price analysis, audit, should cost, independent Government estimate, etc.).
As part of this basis, indicate whether certified cost or pricing data will be required or if one of the exceptions in FAR
15.403 will apply.
Typed Name: ____________ Date: ______________
Title: _______________ Signature: ______________

(___) Cont r ac t i ng Of f i c er Cer t i f i c at i on: This certification shall be made by the contracting officer who will sign
the contract resulting from this justification and approval. Include the following statement:

I certify that this justification is accurate and complete to the best of my knowledge and belief:
Typed Name: _____________ Date: ____________
Title: ________________ Signature: ____________

(___) Appr oval

Based on the foregoing justification, I hereby approve the procurement of (state equipment/services being procured)
on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c) (insert authority),
subject to availability of funds, and provided that the services and property herein described have otherwise been
authorized for acquisition.
Date: ___________________________
Signature: _______________________

Approval Authority FAR 6.304(a); DFARS 206.304; AFARS
5106.304

<$650K: Contacting officer.
>$650K to $12.5 Million: Competition Advocate.
>$12.5 Million to $85.5 Million: HCA or Designee.
>$85.5 Million: Agency Senior Procurement Executive.

Thru AFARS Revision #26
Dated October 1, 2012

Page 135

______________________________________________________________________________

APPENDIX 8-1
LIMITED SOURCE J&A TEMPLATE

Limited Source Justification & Approval (LSJ&A)

Page #

1. Pursuant to Defense Federal Acquisition Regulation Supplement (DFARS)
208.405-70 entitled, Additional Ordering Procedures, subparagraphs (b), each
order that exceeds $150,000 shall be placed on a competitive basis in accordance
with DFARS 208.405-70(c), unless the requirement is waived on the basis of a
justification that is prepared and approved in accordance with Federal Acquisition
Regulation (FAR) 8.405-6 and includes a written determination that--
a. A statute expressly authorizes or requires that the purchase be made from a
specified source; or

b. One of the circumstances described at FAR 16.505(b)(2)(i) through (iii)
applies to the order. Follow the procedures at DFARS PGI 216.505-70 if FAR
16.505(b)(2)(ii) or (iii) is deemed applicable.

2. Pursuant to DFARS 216.505-70 entitled Orders Under Multiple Award
Contracts subparagraph (b), each order that exceeds $150,000 shall be placed on a
competitive basis in accordance with paragraph (c), unless the requirement is
waived on the basis of a justification that is prepared and approved in accordance
with FAR 8.405-6 and includes a written determination that--
a. A statute expressly authorizes or requires that the purchase be made from a
specified source; or

b. One of the circumstances described at FAR 16.505(b)(2)(i) through (iv)
applies to the order. Follow the procedures at PGI 216.505-70 if FAR
16.505(b)(2)(ii) or (iii) is deemed applicable.

3. The following guidance is provided for justification and approvals prepared in
accordance with FAR 8.405-6.
a. Pursuant to FAR 8.405-6, orders placed under Federal Supply Schedule
(FSS) are exempt from the requirements in Part 6. However, the Contracting
Officer must justify his/her action when restricting consideration under the
following circumstances:

(1) Competition is restricted to at least three schedule contractors, see FAR
8.405-1 or 8.405-2 or,

(2) A specific brand name product, peculiar to one manufacturer is required.

4. Circumstances that may justify restrictions cited in paragraph 3 (a) 1 and 2 above
include:

a. Only one source is capable of responding due to the unique or specialized
nature of the work.
Limited Source Justification & Approval (LSJ&A)

Page #

b. The new work is a logical follow-on to an original Federal Supply Schedule
order provided that the original order was placed in accordance with the
applicable Federal Supply Schedule ordering procedures.

c. An urgent and compelling need exists and following the ordering procedures
would result in unacceptable delays.

d. Ordering activities shall procure such requirements only if the need to do so is
justified in writing and approved at the levels specified at FAR 8.405-6(f) and
(h)(2) and (3).

e. See FAR 8.405-6(b)(3), for posting requirements.

5. J ustifications are required for brand name purchases when the following applies.

a. The item is peculiar to one manufacturer (e.g., a particular brand name,
product, or a feature of a product, peculiar to one manufacturer).

b. A brand name item, whether available on one or more schedule contacts, is
an item peculiar to one manufacturer.

c. Brand name specifications shall not be used unless the particular brand
name, product, or feature is essential to the Governments requirements, and
market research indicated other companies similar products, or products lacking
the particular feature, do not meet, or cannot be modified to meet, the agencys
needs.

d. For proposed orders exceeding $25,000, but not exceeding the simplified
acquisition threshold, the ordering activity contracting officer shall document the
circumstances when restricting consideration.

6. The format for Limited Sources J ustification and Approval can be the same
format as the basic J &A or in compliance with FAR 8.405-6(g)(2) except, at the top
of the document the title should read Limited Sources J ustification and Approval.

Page 142

_____________________________________________________________________________________

APPENDIX 15-1
D&F SAMPLE

Sample Determination and Findings (D&F)

Page #

DETERMINATION AND FINDINGS
Authority to Use Non-Voting Contractor Support for IDIQ MATOC
Healthcare Facilities for U.S. Air Force Medical Service
Contracts WXXXXX-04-D-0010 thru 13, Task Order RFP 0035

Upon the basis of the findings and determination which I hereby make pursuant to the
authority of 41 U.S.C. 419 (as implemented by Federal Acquisition Regulation Subparts
37.203 and 37.204 and AFARS Subpart 5137.204) contractor support may be utilized
for the proposed contract described below.

FINDINGS

1. Background: The US Air Force Medical Systems (AFMS) has been tasked to
conduct an acquisition for the provision of medical service support to active members
and their families. AFMS has implemented a Program Management Plan to authorize
the U.S. Army Corps of Engineers (USACE) to act as the proponent contracting agency
in support of the nationwide SRM initiative. The IDIQ MATOC provides facility
sustainment, restoration and modernization (SRM), to include military construction
(MILCON), repair, and maintenance of hospitals, clinics, administrative buildings, health
facilities, warehouses, veterinary clinics, ancillary facilities and wellness centers. The
execution of this program/contract may cross USACE division/district geographical
boundaries, and may include Operations & Maintenance (O&M), MILCON, (Military
Construction) and BRAC (Base Realignment and Closure) funded projects. The
Nationwide Unrestricted Multiple Award Task Order contract will be in effect from base
year 2004 to option year 2008. A fair opportunity source selection process will be
conducted in support of this task order acquisition.

2. Program Goals: Continuance of program through a fair opportunity selection
process under an existing Unrestricted MATOC for the 88
th
Medical Group, Wright
Patterson AFB, near Dayton, Ohio. The task order requirement includes considerable
renovation, 60,000sf over-all, and 500sf of new construction that will address the
following problem areas:

Emergency Department, Outpatient Records & part of an Outpatient Clinic
(base bid)

Inpatient Medical Unit, Surgical In-patient Unit, ENT/Audiology Department,
Prenatal Clinic, Optometry & Ophthalmology, Hematology/Oncology Department,
In-Patient Medical Records (Option 1)

Graduate Medical Education (GME) Training Center (Option 2)

Initial Outfitting (Option 3)

3. Discussions: The Air Force, our customer, has requested (per attached email
messages) that J erry Growler be utilized as an advisor to the AFMS MATOC Source

Page #

Selection Board (SSEB) for this acquisition. Offerors have been informed via an
amendment to the RFP that a non-Government advisor will assist in the evaluation.
The use of a non-Government advisor will be strictly controlled. He will have access to
only those portions of the proposals and source selection information that is needed to
perform SSO duties; and he will not serve as a voting member of the Source Selection
Organization (SSO), or participate in rating proposals or recommending a selection. Mr.
Growler will be required to sign a Non-Disclosure Agreement and Source Selection
Participation Agreement for the unrestricted MATOC task order solicitation. Although
there are other USACE employees outside the Seattle District that could perform this
duty, the Health Facilities Division has identified Mr. J erry Scotter as the focal point for
the Air Force Health Facilities of modernization at the Wright Patterson Medical Center.
Accordingly it is requested that the following non-Government advisor be utilized in the
evaluation of the proposals.

Contractor Organization: ABC Company
Individual: Mr. J onathan Growler, P.E.

The Air Force Health Facilities Division hired, under the ABC Company contract, Mr.
J erry Scotter for the specific purpose of project manager and quality assurance for all
Air Force Medical Center projects. His participation as a non-voting advisor on the
Wright Patterson Clinical Renovation Source Selection Evaluation Board (SSEB) will
only entail a technical advisory role related to the source selection, excluding any
consensus ruling and disclosure of past performance information. Mr. Growler has the
historical, as well as current detailed knowledge on the Gateway to Healthcare II
project, which is specified as a requirement in his statement of work under his Air Force
contract. Mr. Growler supports AFMS as the Program Manager Health Facilities Office,
Wright Patterson AFB, OH, under ABC Company Contract. Kenneth Carleton is the
Contracting Officer and is certifying by signature of this document that performing the
services identified within this D&F are within scope of the contract that Mr. Growler is
performing under. ABC Company, the prime contractor that Mr. Growler is performing
PM services under, does not participate in any partnering, sub-contracting, or other
agreements with any of the firms included under the AF MATOC pool. In addition, ABC
Company is not organizationally related to any of the firms included under the AF
MATOC pool.

Mr. Growler is involved with the project management of Wright Patterson Hospital on a
daily basis and has detailed in-depth knowledge of all aspects of the facility.
Additionally, he is the only individual who has participated in the full range of renovation
projects and new construction that includes:

Programming
Design and Technical Reviews
Project Phasing
Medical Facility 5 Year Planning and Prioritization
MATOC Contract RFP Development and Review
Response to contract RFIs

Page #

Medical Facility Maintenance and Repair
Construction Management
Cost Benefit Analysis
MEDJ OC Contract Review and Negotiation
Medical Facility Maintenance and Repair Contract Development and
Negotiation
Medical Facility Contract Management

Mr. Growler is a subject matter expert in the Design and Construction of Healthcare
facilities in the following areas:

Factor/Sub-factor & Specific area(s) to be evaluated:

Personnel Qualifications Management Capability
Risk Betterments
Teamwork Technical Requirements

Mr. Growler possesses unique insight into, and can adequately represent, the
requirements of the SSEB as synthesized with the overall RFP goals and objectives.
Such an understanding is critical to determining if Contractors meet or exceed the
minimum technical requirements as stated within the solicitation. As PM, Mr. Growler
represents the facility on critical programmatic matters, and is the most qualified, logical
individual to represent the Air Force as a non-voting member of the SSEB for this
Unrestricted MATOC task order.

Under FAR 7.503(b) (12) (ii) participating as a voting member on a source selection
board is an inherently Governmental function. The prohibition found under the FAR
does not apply to non-voting members of the source selection board. The use of Non-
Government advisors will be strictly controlled.

The source selection information to be released to Mr. Growler will be strictly controlled
by the Contracting Officer. In order to further abide by FAR Subpart 9.5,
Organizational Conflicts of Interest, Mr. Growler will sign a statement stating that he
will not enter into any AF MATOC related agreements with any AF MATOC Contractors
to include subcontractors and will refrain from disclosing proprietary information to
unauthorized personnel.

The chairperson of the Source Selection Evaluation Board (SSEB) will monitor Mr.
Growlers activities while in the evaluation area. Mr. Growlers support will be limited to
specific tasks on an as needed basis, and only in those areas where Government
expertise is not otherwise available. After Mr. Growler has completed his particular area
of evaluation, he will be released from the evaluation process. Mr. Growler will not have
access to the Price section of the proposal.


Page #

PARC CONCURRENCE

CONCUR:____________________________________ Date: __________________
XXXX X. XXXXXX
PARC Counsel

CONCUR:____________________________________ Date: __________________
XXXXX X. XXXXXX
Principal Assistant
Responsible for Contracting


Page #

DETERMINATION

Upon the basis of the findings above, I hereby determine, pursuant to the Federal
Acquisition Regulation (FAR) Subpart XXXX, that [insert the appropriate description of
what is being determined etc] is both necessary and justified.

______________________ ________________________
Date SIGNATURE BLOCK OF APPROVAL
AUTHORITY

Page 148

_____________________________________________________________________________________

APPENDIX 15-2
NAVFAC/USACE PAST PERFORMANCE QUESIONNAIRE
(PPQ)
INSTRUCTIONS FOR IMPLEMENTATION
AND FORM

NAVFAC / USACE Past Performance Questionnaire (PPQ)
Form PPQ -0 (9/30/11)

Page # of #

INSTRUCTIONS FOR IMPLEMENTATION OF
NAVFAC/USACE PAST PERFORMANCE QUESIONNAIRE (PPQ) FORM

1. Background: In many source selections and MATOC task order evaluations, the RFP encourages the
Offeror to have their clients provide a completed PPQ directly to the contract specialist. In addition,
throughout USACE, various formats of PPQs are being utilized. Industry expressed concern regarding the
process by which PPQs are submitted, that completing multiple PPQs for the same type projects over time
places a significant burden on their clients, and seeking a standard process and format to be implemented
across USACE and NAVFAC.

2. Discussion: Based on input from industry, NAVFAC and USACE will still allow Offerors to submit PPQs with
their proposal but will not require them to be sent directly from the client to the contracting office. In
addition, NAVFAC and USACE will utilize a standard PPQ format for all requirements, when required as part of
an evaluation. The standard PPQ form and process will allow Offerors to obtain clients completed PPQ at the
completion of a contract or task order, and the Offeror may retain PPQs in its files for submission on future
procurements. In cases where the validity of the completed PPQ is questioned, the contract
specialist/contracting officer may contact the reference for verification or additional information. The
standard PPQ for NAVFAC and USACE is Form PPQ-0 (9/30/11). NAVFAC/USACE does not intend to create and
maintain a database of PPQs submitted by Offerors. Therefore, it will be the Offerors responsibility to insure
the submission of the relevant PPQs in its files for each solicitation. Alternatively, the Offeror may obtain an
updated/new PPQ from its client(s) for submission. This new process does not preclude the Government from
utilizing previously submitted PPQ information in the past performance evaluation as a source of information.
Also, as the completion of Contractor Performance Assessment Reports (CPARS) is required, Contracting
Officers should search CPARS to determine if a relevant and recent evaluation is on file when one is not
provided by the offeror. Recognizing CPARS evaluations are just one tool for assessing past performance,
these evaluations are expected to be considered by the Contracting Officer. Discrepancies between CPARS
evaluations and information provided in PPQs will be resolved by the Contracting Officer during the source
selection evaluation process.

In completing the PPQ form, representatives that have direct knowledge of the Offerors past performance are
encouraged to complete the PPQ (i.e., Administrative Contracting Officers, Contracting Officer
Representatives, Project Engineers, etc., who had direct oversight/involvement with the project).

ACTIONS: Effective immediately, for all procurements that are using PPQs in the evaluation process:

1. Form PPQ-0 shall be utilized for all evaluations that require a PPQ. Offerors shall submit the PPQ with their
proposal submission to the Contracting Office designated proposal submission location. The contract specialist
or Contracting Officer shall not require the PPQ to be sent directly from the client. Solicitations that have
previously been issued do not need to be amended to include this requirement.

2. RFPs utilizing PPQs shall incorporate language from the Sample Solicitation Submittal Requirement
(below) stating, at a minimum, the following: Completed Past Performance Questionnaires should be
submitted with your proposal as required by RFP Section XXXXX. Offerors shall not incorporate by reference
into their proposal PPQs previously submitted for other RFPs. This does not preclude the Government from
utilizing previously submitted PPQ information in the past performance evaluation. While the Government
may elect to consider data from other sources, the burden of providing detailed, current, accurate and
complete past performance information rests with the Offeror.

Form PPQ -0 (9/30/11)

Page # of #

3. When Past Performance Questionnaires are being permitted/sought, the following sample language will
be tailored to the specific acquisition and included in the solicitation:

Sample Solicitation Submittal Requirement:

The Past Performance Questionnaire (PPQ) included in the solicitation is provided for the offeror
or its team members to submit to the client for each project the offeror includes in its proposal for
Factor ____ (insert the applicable factor number, usually as Factor 4 and insert the factor title,
usually Past Performance for the Prime Contractor). Ensure correct phone numbers and email
addresses are provided for the client point of contact. Completed Past Performance
Questionnaires should be submitted with your proposal. If the offeror is unable to obtain a
completed PPQ from a client for a project(s) before proposal closing date, the offeror should
complete and submit with the proposal the first page of the PPQ (Attachment ___), which will
provide contract and client information for the respective project(s). Offerors should follow-up
with clients/references to ensure timely submittal of questionnaires. If the client requests,
questionnaires may be submitted directly to the Governments point of contact, ______________
via email at ________________________ prior to proposal closing date. Offerors shall not
incorporate by reference into their proposal PPQs previously submitted for other RFPs.
However, this does not preclude the Government from utilizing previously submitted PPQ
information in the past performance evaluation.

Also include performance recognition documents received within the last ____ (insert the number
of years) such as awards, award fee determinations, customer letters of commendation, and any
other forms of performance recognition.

In addition to the above, the Government may review any other sources of information for
evaluating past performance. Other sources may include, but are not limited to, past performance
information retrieved through the Past Performance Information Retrieval System (PPIRS),
including Contractor Performance Assessment Reporting System (CPARS), using all CAGE/DUNS
numbers of team members (partnership, joint venture, teaming arrangement, or parent
company/subsidiary/affiliate) identified in the offerors proposal, inquiries of owner
representative(s), Federal Awardee Performance and Integrity Information System (FAPIIS),
Electronic Subcontract Reporting System (eSRS), and any other known sources not provided by the
offeror.

While the Government may elect to consider data from other sources, the burden of providing
detailed, current, accurate and complete past performance information rests with the Offeror.

Form PPQ -0 (9/30/11)

Page # of #

NAVFAC/USACE PAST PERFORMANCE QUESTIONNAIRE (Form PPQ-0)
CONTRACT INFORMATION (Contractor to complete Blocks 1-4)
1. Contractor Information
Firm Name: CAGE Code:
Address: DUNs Number:
Phone Number:
Email Address:
Point of Contact: Contact Phone Number:
2. Work Performed as: Prime Contractor Sub Contractor Joint Venture Other (Explain)
Percent of project work performed:
If subcontractor, who was the prime (Name/Phone #):
3. Contract Information
Contract Number:
Delivery/Task Order Number (if applicable):
Contract Type: Firm Fixed Price Cost Reimbursement Other (Please specify):
Contract Title:
Contract Location:

Award Date (mm/dd/yy):
Contract Completion Date (mm/dd/yy):
Actual Completion Date (mm/dd/yy):
Explain Differences:

Original Contract Price (Award Amount):
Final Contract Price (to include all modifications, if applicable):
Explain Differences:

4. Project Description:
Complexity of Work High Med Routine
How is this project relevant to project of submission? (Please provide details such as similar equipment, requirements,
conditions, etc.)

CLIENT INFORMATION (Client to complete Blocks 5-8)
5. Client Information
Name:
Title:
Phone Number:
Email Address:
6. Describe the clients role in the project:

7. Date Questionnaire was completed (mm/dd/yy):
8. Clients Signature:

NOTE: NAVFAC/USACE requests that the client completes this questionnaire and submits directly back to the offeror.
The offeror will submit the completed questionnaire to USACE with their proposal, and may duplicate this questionnaire
for future submission on USACE solicitations. Clients are highly encouraged to submit questionnaires directly to the
offeror. However, questionnaires may be submitted directly to USACE. Please contact the offeror for USACE POC
information. The Government reserves the right to verify any and all information on this form.

Form PPQ -0 (9/30/11)

Page # of #

ADJECTIVE RATINGS AND DEFINITIONS TO BE USED TO BEST REFLECT
YOUR EVALUATION OF THE CONTRACTORS PERFORMANCE

RATING DEFINITION NOTE

(E) Exceptional Performance meets contractual requirements and
exceeds many to the Government/Owners benefit.
The contractual performance of the element or
sub-element being assessed was accomplished
with few minor problems for which corrective
actions taken by the contractor was highly
effective.
An Exceptional rating is appropriate when
the Contractor successfully performed
multiple significant events that were of
benefit to the Government/Owner. A
singular benefit, however, could be of such
magnitude that it alone constitutes an
Exceptional rating. Also, there should have
been NO significant weaknesses identified.
(VG) Very Good Performance meets contractual requirements and
exceeds some to the Governments/Owners
benefit. The contractual performance of the
element or sub-element being assessed was
accomplished with some minor problems for which
corrective actions taken by the contractor were
effective.
A Very Good rating is appropriate when the
Contractor successfully performed a
significant event that was a benefit to the
Government/Owner. There should have
been no significant weaknesses identified.
(S) Satisfactory Performance meets minimum contractual
requirements. The contractual performance of the
element or sub-element contains some minor
problems for which corrective actions taken by the
contractor appear or were satisfactory.
A Satisfactory rating is appropriate when
there were only minor problems, or major
problems that the contractor recovered
from without impact to the contract. There
should have been NO significant
weaknesses identified. Per DOD policy, a
fundamental principle of assigning ratings is
that contractors will not be assessed a
rating lower than Satisfactory solely for not
performing beyond the requirements of the
contract.
(M) Marginal Performance does not meet some contractual
requirements. The contractual performance of the
element or sub-element being assessed reflects a
serious problem for which the contractor has not
yet identified corrective actions. The contractor's
proposed actions appear only marginally effective
or were not fully implemented.
A Marginal is appropriate when a
significant event occurred that the
contractor had trouble overcoming which
impacted the Government/Owner.
(U) Unsatisfactory Performance does not meet most contractual
requirements and recovery is not likely in a timely
manner. The contractual performance of the
element or sub-element contains serious
problem(s) for which the contractor's corrective
actions appear or were ineffective.
An Unsatisfactory rating is appropriate
when multiple significant events occurred
that the contractor had trouble overcoming
and which impacted the
Government/Owner. A singular problem,
however, could be of such serious
magnitude that it alone constitutes an
unsatisfactory rating.
(N) Not Applicable No information or did not apply to your contract Ra Rating will be neither positive nor
negative.

Form PPQ -0 (9/30/11)

Page # of #

TO BE COMPLETED BY CLIENT
PLEASE CIRCLE THE ADJECTIVE RATING WHICH BEST REFLECTS
YOUR EVALUATION OF THE CONTRACTORS PERFORMANCE.
1. QUALITY:

a) Quality of technical data/report preparation efforts E VG S M U N
b) Ability to meet quality standards specified for technical performance
E VG S M U N
c) Timeliness/effectiveness of contract problem resolution without extensive
customer guidance
E VG S M U N
d) Adequacy/effectiveness of quality control program and adherence to
contract quality assurance requirements (without adverse effect on
performance)
E VG S M U N
2. SCHEDULE/TIMELINESS OF PERFORMANCE:
a) Compliance with contract delivery/completion schedules including any
significant intermediate milestones. (If liquidated damages were assessed or
the schedule was not met, please address below)
E VG S M U N
b) Rate the contractors use of available resources to accomplish tasks
identified in the contract
E VG S M U N
3. CUSTOMER SATISFACTION:
a) To what extent were the end users satisfied with the project? E VG S M U N
b) Contractor was reasonable and cooperative in dealing with your staff
(including the ability to successfully resolve disagreements/disputes;
responsiveness to administrative reports, businesslike and communication)
E VG S M U N
c) To what extent was the contractor cooperative, businesslike, and
concerned with the interests of the customer?
E VG S M U N
d) Overall customer satisfaction E VG S M U N
4. MANAGEMENT/ PERSONNEL/LABOR
a) Effectiveness of on-site management, including management of
subcontractors, suppliers, materials, and/or labor force?
E VG S M U N
b) Ability to hire, apply, and retain a qualified workforce to this effort E VG S M U N
c) Government Property Control E VG S M U N
d) Knowledge/expertise demonstrated by contractor personnel E VG S M U N
e) Utilization of Small Business concerns E VG S M U N
f) Ability to simultaneously manage multiple projects with multiple disciplines E VG S M U N
g) Ability to assimilate and incorporate changes in requirements and/or
priority, including planning, execution and response to Government changes
E VG S M U N
h) Effectiveness of overall management (including ability to effectively lead,
manage and control the program)
E VG S M U N
5. COST/FINANCIAL MANAGEMENT
a) Ability to meet the terms and conditions within the contractually agreed
price(s)?
E VG S M U N
Form PPQ -0 (9/30/11)

Page # of #

b) Contractor proposed innovative alternative methods/processes that
reduced cost, improved maintainability or other factors that benefited the
client
E VG S M U N
c) If this is/was a Government cost type contract, please rate the Contractors
timeliness and accuracy in submitting monthly invoices with appropriate
back-up documentation, monthly status reports/budget variance reports,
compliance with established budgets and avoidance of significant and/or
unexplained variances (under runs or overruns)
E VG S M U N
d) Is the Contractors accounting system adequate for management and
tracking of costs? If no, please explain in Remarks section.
Yes No
e) If this is/was a Government contract, has/was this contract been partially
or completely terminated for default or convenience or are there any pending
terminations? Indicate if show cause or cure notices were issued, or any
default action in comment section below.
Yes No
f) Have there been any indications that the contractor has had any financial
problems? If yes, please explain below.
Yes No
6. SAFETY/SECURITY
a) To what extent was the contractor able to maintain an environment of
safety, adhere to its approved safety plan, and respond to safety issues?
(Includes: following the users rules, regulations, and requirements regarding
housekeeping, safety, correction of noted deficiencies, etc.)
E VG S M U N
b) Contractor complied with all security requirements for the project and
personnel security requirements.
E VG S M U N
7. GENERAL
a) Ability to successfully respond to emergency and/or surge situations
(including notifying COR, PM or Contracting Officer in a timely manner
regarding urgent contractual issues).
E VG S M U N
b) Compliance with contractual terms/provisions (explain if specific issues) E VG S M U N
c) Would you hire or work with this firm again? (If no, please explain below) Yes No
d) In summary, provide an overall rating for the work performed by this
contractor.
E VG S M U N

Please provide responses to the questions above (if applicable) and/or additional remarks. Furthermore,
please provide a brief narrative addressing specific strengths, weaknesses, deficiencies, or other comments
which may assist our office in evaluating performance risk (please attach additional pages if necessary):

Page 155

____________________________________________________________________________________

APPENDIX 16-1
APPOINTMENT OF AWARD FEE DETERMINING
OFFICIAL (AFDO) FOR COST-PLUS AWARD-FEE
CONTRACTS (CPAF) CHECKLIST

Checklist for Appointment of Award Fee Determining Official (AFDO) for Cost-Plus Award-Fee
Contracts (CPAF)

Page #

The PARC must appoint, in writing, the Award-Fee Determining Official (AFDO) (unless the PARC acts as
the AFDO).

Required Documents:
The following are required for PARC action on any AFDO Appointment Request:

AFDO appointment request memorandum must contain:
Contract Number and, if applicable, Task Order (TO) Number
Award date of the Contract and, if applicable, TO.
Dollar value of the Contract and, if applicable, TO.
Date of the Notice to Proceed (NTP), if applicable.
Award Fee Board Schedule Information
Background:
List any previous CPAF task order numbers
Award date of the Contract and each previous TO.
Dollar value of the Contract and each previous TO.
Status of each previous TO (open or closed).
Discuss individually all prior Award Fee Boards results, timing, and
schedules, include the names of the AFDOs and the Award Fee Evaluation Board
(AFEB) members.

Conformed Copy of the Contract and, if applicable, copy of TO
Performance Work Statement / Scope of Work of the current Contract and, if applicable, of
the TO (if this is a request for AFDO on a specific TO)
Award Fee Plan (AFP) of the current Contract Number and, if applicable, of the current TO.
o Ensure that Timely submission of Invoices is not an evaluated factor (per DoD IG).
o Examples of areas where fees could be earned include but are not limited to,
quality, timeliness, technical ingenuity, or cost saving.
o Ensure that the AFP does not include non-specific criteria, such as, how well the
contractor is managing the program or improved contractor performance (GAO-06-
66)
Construction Quality Control Plan (QCP) / Quality Assurance Surveillance Plan (QASP) of the
Contract and, if applicable the TO.
o This item cannot be checked as Not Applicable. If there is no QCP or QASP, an
explanation of the remedial action(s) to be taken must be stated.
AFDO nominees credentials and resume.

Checklist for Appointment of Award Fee Determining Official (AFDO) for Cost-Plus Award-Fee
Contracts (CPAF)

Page #

Cost Benefit Analysis Example

Before selecting a cost-plus award-fee (CPAF) type contract, and after determining that administrative
resources would be available, the Contracting Officer shall perform a cost benefit analysis of the
expected benefits versus the added administrative costs for a CPAF type contract. The value added to
the program by using a CPAF type contract must be greater than the costs to administer it. A typical
way of calculating administrative costs is to use grade levels and hours required to monitor, evaluate,
brief and implement the award fee process in its entirety from pre-award to contract closeout. Major
cost drivers are the number of award fee evaluation periods, performance monitors, and Award Fee
Evaluation Board (AFEB) members.

For example, assume four (4) three-month evaluation periods; five (5) performance monitors who spend
an average of eight (8) hours per week on their duties; six (6) AFEB members who meet once for three
(3) hours during the period and spend one (1) additional hour briefing the Award Fee Determining
Official (AFDO); a Recorder who spends an average of eight (8) hours per week on award fee duties; and
a contracting officer who spends five (5) hours per period. The administrative cost for one evaluation
period, assuming a fully burdened labor hour rate of $60, would be as follows:

5 monitors x 8 hrs x 13 wks x $60 = $ 31,200
6 AFEB members x 4 hrs x $60 = $ 1,440
1 Recorder x 8 hrs x 13 wks x $60 = $ 6,240
1 CO x 5 hrs x $60 = $ 300
Government Administrative Cost (quarterly)

$ 39,180

a. The $39,180 must then be multiplied by the number of evaluation periods to calculate the total
administrative cost for the award fee contract, i.e., $39.180 x 4 = $156,720. This amount is for a 12-
month period only; the cost for additional contract periods should also be considered. If there is a high
risk that this contract will not be performed on schedule, the calculation of administrative costs can
account for the extra monitoring periods that may be necessary. This is a conservative estimate and
does not represent all associated administrative costs that may arise (e.g., the AFDOs time).

b. To complete the cost benefit analysis, the contracting officer compares the quantitative
administrative burden to routine contract administration and monitoring costs experienced on a non-
cost type contract arrangement and the other identifiable, but intangible benefits the Government
receives through the award fee arrangement.

c. The benefits might be measured in terms of the result(s) expected from the areas of motivated
performance, e.g., dollars saved by tighter cost control or enhanced technical capability.

Page 158

____________________________________________________________________________________

APPENDIX 17-1
DETERMINATION & FINDINGS (D&F)
FOR CERTIFICATION OF REQUIREMENTS FOR
PROPER USE OF NON-DOD CONTRACTS
ASSISTED ACQUISITION
TEMPLATE

(D&F) for Proper Use of Non-DoD Contracts ASSISTED Acquisition
TEMPLATE

Page #

1. References:

a. Memorandum, Director, Defense Procurement and Acquisition Policy, January 18, 2008, Subject:
Interagency Acquisition.
b. Army Policy, dated 12 Jul 05, Subject: Proper Use of Non-Department of Defense (Non-DoD)
Contracts.

2. This certification relates to an assisted acquisition under the Army policy referenced above. An
assisted acquisition is a contract awarded, or a task or delivery order placed, on behalf of the Army by
a non-DoD agency.

Findings

3. Requirement Information.

a. Description of services/supplies: (add information here)

b. Non-DoD Contracting Agency: (add information here)

c. Contracting Officer at Non-DoD Contracting Agency (name and phone):

d. Non-DoD Contract Number: (add information here)

4. I certify that the proposed use of this non-DoD contract is in the best interest of the Army
considering the following factors:

a. Availability of a suitable DoD contract vehicle. (EXPLAIN WHY A SUITABLE DOD CONTRACT IS
NOT AVAILABLE FOR THIS ACQUISITION. INCLUDE DESCRIPTION OF MARKET RESEARCH.)

b. Ability to satisfy customer requirements. (EXPLAIN HOW THE ORDER WILL SATISFY CUSTOMER
REQUIREMENTS.)

c. Delivery schedule. (EXPLAIN HOW THE ORDER WILL SATISFY DELIVERY SCHEDULE
REQUIREMENTS.)

d. Cost effectiveness and price (including discounts and fees charged by contract holder).
(EXPLAIN WHY THE ORDER IS COST EFFECTIVE, AND THE PRICE IS REASONABLE.)

e. Contract administration (including ability to provide contract oversight). (EXPLAIN PLAN FOR
CONTRACT ADMINISTRATION, INCLUDING OVERSIGHT OF CONTRACT PERFORMANCE.)

f. Socio-economic opportunities (e.g., small business (SB), HUBZone, small disadvantaged
business, service disabled veteran owned SB). (DESCRIBE THE CONSIDERATION OF SOCIO-
ECONOMIC OPPORTUNITIES.)

g. Comparative costs of using a DoD, as opposed to a non-DoD, contractual instrument to include
administrative fees charged by the non-DoD agency. (EXPLAIN THE COST COMPARISON.)
TEMPLATE

Page #

h. Other applicable considerations. (DESCRIBE ANY OTHER CONSIDERATIONS SUPPORTING THE
USE OF A NON-DOD CONTRACT.)

i. For actions under the authority of the Economy Act I have verified the Intergovernmental
Support Agreement dated (ADD THE APPROVAL DATE) has been approved by at the Senior Executive
Service, Flag, or General Officer level. (A copy may be attached)

Determination:

5. I further determine and certify that:

a. The supplies and/or services to be provided are within the scope of the non-DoD contract
identified above.

b. The proposed funding is appropriate for the procurement and is being used in a manner
consistent with any appropriation limitations.

c. All unique terms, conditions, and requirements will be incorporated into the order or contract,
as appropriate, to comply with all applicable DoD-unique statutes, regulations, directives and other
requirements.

d. The review and approval procedures set forth in paragraph 4 of the Army Policy referenced
above, on Proper Use of Non-Department of Defense (Non-DoD) Contracts, have been completed
and are a part of this D&F.

6. A written concurrence from the non-DoD contracting officer at the servicing organization, that the
supplies and/or services to be provided are within the scope of the non-DoD contract, is attached.

Project Manager

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________
Title / Organization Date

Funds Authorizing Official

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________
TEMPLATE

Page #

Requiring Activity Legal Counsel

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

DoD Contracting Officer

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

Requirements Certifying Official: (06/GS-15 level or higher)

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________
Title / Grade / Organization Date

Contracting Approving Official

_____________________________ _______________________________
Name Signature

_____________________________ _______________________________
Organization Date

Page 162

____________________________________________________________________________________

APPENDIX 17-2
DETERMINATION & FINDINGS (D&F)
FOR CERTIFICATION OF REQUIREMENTS FOR
PROPER USE OF NON-DOD CONTRACTS
DIRECTED ACQUISITION
TEMPLATE

(D&F) for Proper Use of Non-DoD Contracts DIRECTED Acquisition
TEMPLATE

Page #

1. References:

a. Memorandum, Director, Defense Procurement and Acquisition Policy, January 18, 2008, Subject:
Interagency Acquisition.
b. Army Policy, dated 12 Jul 04, subject: Proper Use of Non-Department of Defense (Non-DoD)
Contracts.

2. This certification relates to a direct acquisition under the Army Policy referenced above. A direct
acquisition is a task or delivery order placed by a DoD official under a contract awarded by a non-DoD
agency.

Findings

3. Requirement Information:

a. Description of services/supplies: (add information here)

b. Non-DoD Contracting Agency: (add information here)

c. Point of Contact at Non-DoD Contracting Agency (name and phone): (add information here)

d. Non-DoD Contract Number: (add information here)

4. I certify that the proposed use of this non-DoD contract is in the best interest of the Army
considering the following factors:

a. Availability of a suitable DoD contract vehicle. (EXPLAIN WHY A SUITABLE DOD CONTRACT IS
NOT AVAILABLE FOR THIS ACQUISITION. INCLUDE DESCRIPTION OF MARKET RESEARCH.)

b. Ability to satisfy customer requirements. (EXPLAIN HOW THE ORDER WILL SATISFY CUSTOMER
REQUIREMENTS.)

c. Delivery schedule. (EXPLAIN HOW THE ORDER WILL SATISFY DELIVERY SCHEDULE
REQUIREMENTS.)

d. Cost effectiveness and price (including discounts and fees charged by contract holder).
(EXPLAIN WHY THE ORDER IS COST EFFECTIVE, AND THE PRICE IS REASONABLE.)

e. Contract administration (including ability to provide contract oversight). (EXPLAIN PLAN FOR
CONTRACT ADMINISTRATION, INCLUDING OVERSIGHT OF CONTRACT PERFORMANCE.)

f. Socio-economic opportunities (e.g., small business (SB), HUBZone, small disadvantaged
business, service disabled veteran owned SB). (DESCRIBE THE CONSIDERATION OF SOCIO-
ECONOMIC OPPORTUNITIES.)

g. Comparative costs of using a DoD, as opposed to a non-DoD, contractual instrument to include
administrative fees charged by the non-DoD agency. (EXPLAIN THE COST COMPARISON.)
TEMPLATE

Page #

h. Other applicable considerations. (DESCRIBE ANY OTHER CONSIDERATIONS SUPPORTING THE
USE OF A NON-DOD CONTRACT.)

i. The Intergovernmental Support Agreement dated (ADD THE APPROVAL DATE) for contracting
with this agency has been approved by at the Senior Executive Service, Flag, or General Officer level.

Determination:

5. I further determine and certify that:

a. The supplies and/or services to be provided are within the scope of the non-DoD contract
identified above.

b. The proposed funding is appropriate for the procurement and is being used in a manner
consistent with any appropriation limitations.

c. All unique terms, conditions, and requirements will be incorporated into the order or contract,
as appropriate, to comply with all applicable DoD-unique statutes, regulations, directives and other
requirements.

d. The review and approval procedures set forth in paragraph 4 of the Army Policy referenced
above, on Proper Use of Non-Department of Defense (Non-DoD) Contracts, have been completed.

6. (If services are being acquired, and the contracting officer in the contracting office issuing the task
order does not have access to the non-DoD contract, including the statement of work, then the
Contracting Officer shall include the following statement:) A written concurrence from the non-DoD
contracting officer at the servicing organization, that the services to be provided are within the scope of
the non-DoD contract, is attached.

7. Written coordination has been/shall be obtained from USACE Office of Chief Counsel prior to
placement of the order for services; and, legal review of orders for supplies shall be in accordance with
USACE contracting procedures for legal review of orders for supplies.

Project Manager

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

TEMPLATE

Page #

Funds Certifying Official

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

Legal Review

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

Contracting Officer

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

Requirements Certifying Official: (06/GS-15 level or higher)

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________

Contracting Approving Official

_____________________________ ______________________________
Name Signature

_____________________________ ______________________________
Organization Date

Page 162

____________________________________________________________________________________

APPENDIX 24-1
SAMPLE
PERSONALLY IDENTIFIABLE INFORMATION (PII)
LANGUAGE

Personally Identifiable Information (PII) Language
SAMPLE

Sections (insert applicable sections of work statement) of this Performance Work Statement require the
Contractor to design, develop, or operate a system of records on individuals, to accomplish an agency
function subject to the Privacy Act of 1974, Public Law 93-579, December 31, 1974 (5 U.S.C. 552a). The
Contractor shall comply with the Privacy Act and all applicable agency regulations on individual privacy,
to include DoD Directive 5400.11, Department of Defense Privacy Program and DoD 5400.11-R,
Department of Defense Privacy Program.

Systems Access

When requested by the Government, the contractor shall provide access to and information regarding
the systems that the contractor operates or maintains on behalf of the Government under this contract.

Systems Security

The contractor shall encrypt all contractor-owned laptops or other portable media storage devices that
process or store PII, in accordance with NIST Federal Information Processing Standard (FIPS) 140-2 (or
successor).

The contractor shall require FIPS 140-2 (or successor) encryption of any sensitive PII when transmitted
electronically across the internet or other public networks.

Data Security

The contractor, unless otherwise authorized by the Government, shall limit access to PII to those
employees and subcontractors who require the information in order to perform their official duties
under this contract.

The contractor, contractor employees, and subcontractors shall physically or electronically protect PII
when not in use and/or under the control of an authorized individual.

During the course of contract performance, when PII is no longer needed or required to be retained
under applicable Government records retention policies, the contractor shall coordinate with the
contracting officer to either turn over the PII to the Government, or destroy it through means that will
make the PII irretrievable (i.e., permanently unavailable for access by any person).

The contractor shall only use the PII obtained under this contract for the purpose of the contract, and
shall not collect or use such information for any other purpose without the prior written approval of the
contracting officer.

At expiration or termination of this contract, the contractor shall coordinate with the contracting officer
to either turn over all PII managed under the contract that is in its possession to the Government or
successor contractor, or if the Government so directs, destroy the PII.

Page 162

____________________________________________________________________________________

APPENDIX 24-2
SAMPLE
Personally Identifiable Information (PII)
Breach Contract Language

Personally Identifiable Information (PII) Breach Contractual Language
SAMPLE

Data Breach Response and Notification:

The contractor shall adhere to the reporting and response requirements for PII set forth in
Memorandum, Office of the Secretary of Defense, Subject: Safeguarding Against and Responding to the
Breach of Personally Identifiable Information (PII), June 5, 2009, ALARACT 05/2009, DoD 5400.11-R, and
any amendments.

The contractor or its subcontractor shall immediately notify (insert requiring activity and phone number
or email address) upon discovery that a suspected or actual breach of PII has occurred. The notification
shall include, to the greatest extent possible the identification of each individual whose PII has been or
possible has been breached. In addition, the contractor or its subcontractor shall provide (insert
requiring activity and phone number or email address) with any other available information that must be
included in required breach reporting and notifications. The contractor shall provide this information at
the time of the initial notification to the Government or promptly thereafter as information becomes
available.

The Government will determine whether a breach of PII has occurred, and whether breach notification
to affected individual is required. If breach notification to affected individuals is required, the
Government will determine if the contractor shall make the required notification. If the contractor is to
notify the impacted population, it shall submit the notification letters to (insert requiring activity and
phone number or email address) for review and approval.

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____________________________________________________________________________________

APPENDIX 33-1
(A, PART 3)
CONTRACT REQUESTS, CLAIMS AND APPEALS

Contract Requests, Claims and Appeals

Page 1 of 19
TABLE OF CONTENTS

SUBPART 100 - AUTHORITIES
A3-100 Scope of Subpart.
A3-101 Contracting Officers.
A3-102 Armed Services Board of Contract Appeals.
A3-103 Federal Courts.

SUBPART 200 - CLAIMS
A3-201 Background.
A3-202 Policy.
A3-203 Claim Processing Procedures.
A3-204 Affirmative Government Claims.
A3-205 Maritime Contract Claims.
A3-206 Maintenance of Records.
A3-207 Claims Management and Case Tracking.

SUBPART 300 - PROCEDURES FOR HANDLING APPEALS AT THE ARMED SERVICES BOARD OF
CONTRACT APPEALS
A3-301 Notice of Appeal.
A3-302 Nature of Appeals - General.
A3-303 Appeal File (Rule 4).
A3-304 Trial Attorneys.
A3-305 Pleadings.
A3-306 Motions.
A3-307 Briefs.
A3-308 Discovery.
A3-309 Alternative Dispute Resolution (ADR).
A3-310 Settlement.
A3-311 Decisions.
A3-312 Attorney Fee Claims.
A3-313 Appeals Management and Case Tracking.

SUBPART 400 - DIRECT ACTIONS IN THE UNITED STATES COURT OF FEDERAL CLAIMS
A3-401 Responsibilities.
A3-402 Notice of Filing.
A3-403 Litigation Report.
A3-404 Significant Events.
A3-406 Settlement.
A3-407 Decisions.
A3-408 Case Management and Tracking.


Page 2 of 19
SUBPART 500 - APPEALS TO THE UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT
A3-504 Oral Argument.
A3-505 Decision.
A3-506 Appeals Management and Tracking.


Page 3 of 19
SUBPART 100 AUTHORITIES


This subpart sets forth the authorities of contracting officers, Division Commanders, the Armed Services
Board of Contract Appeals (ASBCA or Board), and Federal courts to decide contract requests, claims
and appeals. Further, the authority for Corps of Engineers' trial attorneys to represent the Government
before the Board is stated.

A3-101 Contracting Officers.

The contracting officer's authority to decide or settle all claims relating to a contract is contained in FAR
33.210. A contracting officers decision is final and conclusive and not subject to review by any forum,
tribunal or Government agency, unless an appeal or suit is timely commenced (41 U.S.C. 7103(f)).
Further, in FAR 33.210, contracting officers are authorized to use Alternative Dispute Resolution (ADR)
procedures under FAR 33.214 to resolve contract claims.

A3-102 Armed Services Board of Contract Appeals.

(a) Contract Disputes. The Contract Disputes Act of 1978, as amended, 41 U.S.C. 7101-7109,
provides that a contractor may appeal a contracting officers final decision to the appropriate Board of
Contract Appeals or to the United States Court of Federal Claims. A contractor has 90 days from receipt
of a contracting officers final decision to file an appeal with the appropriate Board of Contract Appeals.
41 U.S.C. 7104(a). The ASBCA has been designated by the Secretary of the Army as the appropriate
Board for the Corps of Engineers. The charter and rules of the ASBCA are found in DFARS, Appendix A.

(b) Real Estate Leases. The ASBCA has jurisdiction under the Contract Disputes Act for leases where the
Government is the lessee. In cases not covered by the Contract Disputes Act, the Secretary of the Army
has delegated authority to the Board.

(c) Correspondence. All correspondence with the ASBCA will be addressed to the Recorder, Armed
Services Board of Contract Appeals, Skyline Six, 5109 Leesburg Pike, Falls Church, Virginia 22041-3208.
Copies of all significant correspondence addressed to the ASBCA Recorder will be sent to the Engineer
Chief Trial Attorney, HQUSACE.

(d) Delegations. The Engineer Chief Trial Attorney under a delegation from the Secretary of the Army is
the authorized representative of the Secretary of the Army and has the sole authority and responsibility
for the conduct and control of litigation of contract disputes for all Corps of Engineers cases docketed
with the ASBCA of a value less than $3 million. AFARS 5133.212- 90(a)(2). The Assistant Judge Advocate
General for Civil Law may determine on a case by case basis to delegate Corps of Engineers cases of a
value of $3 million or more to the Engineer Chief Trial Attorney. AFARS 5133.212-90(a)(3). The Engineer
Chief Trial Attorney also has the authority to settle such cases with the concurrence of the contracting
officer, the reviewing official or the Deputy Assistant Secretary of the Army (Procurement). AFARS
5133.212-90-7. All official correspondence with the Engineer Chief Trial Attorney will be addressed to
the current Engineer Chief Trial Attorney (by name), CECC-C, U.S. Army Corps of Engineers, 441 G Street,
NW, Washington, D.C. 20314-1000.


Page 4 of 19
A3-103 Federal Courts.

The Federal Courts Improvement Act of 1982, Public Law 97-164, 96 Stat. 25, abolished the U.S. Court of
Claims and established the United States Court of Appeals for the Federal Circuit and the Court of
Federal Claims with jurisdiction over contract disputes formerly within the jurisdiction of the U.S. Court
of Claims. This act was amended by the Court of Federal Claims Technical and Procedural Improvements
Act of 1992, Public Law 102-572, 106 Stat. 4516, which changed the name of the United States Claims
Court to the United States Court of Federal Claims.

a. U.S. Court of Federal Claims. Under the Contract Disputes Act, a contractor may, in lieu of
appealing a contracting officer's final decision to a Board, bring an action directly on a claim in the
U.S. Court of Federal Claims within one year of receipt of the contracting officers final decision. 41
U.S.C. 7104(b)(3). The Department of Justice is responsible for the litigation of such cases and will
be assisted by a Corps of Engineers attorney.

b. U.S. Court of Appeals for the Federal Circuit. A decision of a Board of Contract Appeals may be
appealed by the Contractor or the Government to the U.S. Court of Appeals for the Federal Circuit
within 120 days. 41 U.S.C. 7107(a)(1)(A). A decision of the U.S. Court of Federal Claims may be
appealed within 60 days after the date of entry of judgment. FED. R. APP. P. 4(a)(1). In an appeal
from a Board decision, the decision of the Board on any question of law is not final or conclusive,
but the U.S. Court of Appeals for the Federal Circuit will not set aside conclusions on questions of
fact unless the decision is fraudulent, or arbitrary, or capricious, or so grossly erroneous as to
necessarily imply bad faith, or if such decision is not supported by substantial evidence. 41 U.S.C.
7107(b).

c. Correspondence with the Department of Justice. The litigation report on contract claims and
appeals for the Department of Justice will be addressed to the Engineer Chief Trial Attorney,
HQUSACE, except in those instances when time does not permit and prior telephonic approval of
deviation from this procedure is obtained from the Engineer Chief Trial Attorney. Copies of all other
significant correspondence will be sent to the Engineer Chief Trial Attorney.

SUBPART 200 CLAIMS


This subpart sets forth procedures for considering and processing contract requests and claims.

A3-201 Background.

The Contract Disputes Act establishes procedures and requirements for asserting and resolving contract
claims subject to the Act. The Act provides for a final written decision of the contracting officer when
the claim cannot be resolved by agreement of the contracting parties. The contractor may appeal a
contracting officers final decision to the Armed Services Board of Contract Appeals within 90 days of
receiving the decision. Alternatively, the contractor may bring an action directly in the U.S. Court of
Federal Claims within 12 months of the contracting officers final decision. These time limitations are
jurisdictional and there is no authority for an extension of these time limitations. A contracting officer
may change, modify, recall or reconsider the decision within the appeal period. If, at the contractors

Page 5 of 19
request the decision is reconsidered, irrespective of whether it is modified or not, a new appeal period
begins to run. Policies and procedures for processing contract claims, as well as the definition of key
terms, are set forth in FAR 33.2.

A3-202 Policy.

As set forth in FAR 33.204, the Governments policy is to attempt to resolve all contractual issues in
controversy at the contracting officer level. Reasonable efforts should be made to resolve controversies
prior to submission of a claim. Agencies are encouraged to use Alternative Dispute Resolution (ADR)
procedures to the maximum extent practicable.

A3-203 Claim Processing Procedures.

Any written request by a contractor for the payment of money, granting of time adjustment or
interpretation of contract terms or other relief arising under or relating to the contract, even if the
amount of money or time requested is unstated, may become a contract claim against the Government.
If not included in the original request, the contractor immediately should be asked to furnish
documentation: e.g., facts, cost breakdown or the contract clause underlying the claim. Some requests
can be resolved in a relatively short period of time. Every effort should be made to resolve such
requests as soon as possible.

a. Certification Requirements. A contractor is required to certify all claims exceeding $100,000.
The Administrative Dispute Resolution Act of 1996, Public Law 104-320, 110 Stat. 3870, amended
the previous Alternative Dispute Resolution Act and eliminated the additional certification
requirement when a dispute resolution procedure is used. The certification should state as follows:

I certify that the claim is made in good faith; that the supporting data
are accurate and complete to the best of my knowledge and belief; that
the amount requested accurately reflects the contract adjustment for
which the contractor believes the Government is liable; and that I am
duly authorized to certify the claim on behalf of the contractor.

b. Initial Investigation of a Claim. A contract claim for which all certification requirements have
been met shall be subject to a thorough fact finding investigation conducted by appropriate staff
members, including an attorney from the Office of Counsel. During this investigation, the attorney
will determine the scope of the review, evaluate the relevancy and materiality of the facts
considered and take appropriate measures to preserve the documentation, including written
statements and affidavits. After the investigation has been completed and the staff
recommendations have been considered, the contracting officer should offer the contractor an
opportunity to attend a conference to discuss the claim. An attorney from the Office of Counsel
should participate in this conference. If the contract claim has merit in whole or part, an attempt
should be made to negotiate quantum, either at the conference or at a later time agreed to by the
parties.

c. Alternative Dispute Resolution (ADR). Contracting officers and trial attorneys are strongly
encouraged to consider the use of ADR techniques in all claims at the earliest possible time. These
ADR techniques include, but are not limited to, nonbinding arbitration, mediation and mini-trial.

Page 6 of 19
There is no regulatory authority and the policy of the Corps of Engineers is not to use binding
arbitration. The use of ADR shall be timely recorded in the Matter Tracking System. See A3-207.

d. Unresolved Claims. When a claim by or against a contractor cannot be settled, the contracting
officer shall issue a written decision on the claim. On claims by a contractor, the decision will be
issued within 60 days of the receipt of the written request for a decision from the contractor for
claims under $100,000; for claims over $100,000 the contracting officer will, within 60 days, either
issue a decision or notify the contractor of the date when a decision will be issued. For claims over
$100,000, the contracting officers final decision shall be issued within a reasonable period after the
receipt of the claim. 41 U.S.C. 7103(f)(3).

1. Contracting Officers Final Decision. The written decision of the contracting officer may be
in any appropriate form. The decision shall include a description of the claim, a reference to the
pertinent contract terms, a statement of the factual areas of agreement and disagreement and a
statement of the contracting officers final decision with supporting rationale. The decision also
must include a demand for payment in cases where the decision results in a finding that the
contractor is indebted to the Government (affirmative Government claim). The decision must
be written to inform the contractor of the facts and reasons upon which the contracting officers
conclusion is based and that the decision is final. To adequately meet the above requirements
the facts shall be separately presented in a Findings of Fact section as part of the decision.

(a) Findings of Fact. The proposed numbered Findings of Fact with supporting data
properly tabbed will be drafted by an Office of Counsel attorney with technical assistance
from other appropriate staff members. When a claim in excess of $100,000 involves a
factual dispute, the contracting officer may send the contractor a copy of the proposed
Findings of Fact and advise that the supporting data may be reviewed at the office of the
contracting officer. The contractor should be requested to indicate in writing whether it
concurs in the proposed Findings of Fact and, if not, to indicate specifically which facts with
which it takes issue and submit material in rebuttal. After reviewing the contractors
comments and making any appropriate corrections in the Findings of Fact, the contracting
officer shall then issue the decision. If an appeal is filed, the appeal file should include the
contractors response to the request for comment on proposed Findings of Fact.

(b) Decision. The contracting officers final decision will be drafted by an Office of Counsel
attorney. Prior to issuing the decision, the contracting officer will become familiar with all
facts and proposed conclusions contained in the draft and either adopt them as the Findings
of Fact and decision or make such changes as deemed appropriate.

(1) The first paragraph of the decision is appropriate for introductory matter, including
a reference to the contract number and date and a brief description of the contract
work and the location thereof.

(2) The next part of the decision should be a summary of the contractors claim(s),
including any revisions. Each claim document discussed will reference a tab number
where the document can be located in the potential appeal file. In arranging the tabs
for the potential appeal file, the first two tabs should be reserved for the notice of
appeal and the contracting officers final decision.

Page 7 of 19

(3) The third part of the decision should be the numbered Findings of Fact, presented
chronologically in narrative form. Conclusions or arguments should not be included.
The Findings of Fact will consist of (a) a statement of facts relevant to the claim, and (b)
a reference to the pertinent bidding documents and contract provisions. Quotations
from standard contract clauses normally should be avoided; however, non-standard
clauses relied upon by the contracting officer should be quoted. All documents
mentioned should be referred to by a tab number where they can be found in the
potential appeal file. If possible, agreed and disputed facts should be so identified.

(4) The fourth part of the decision should be the contracting officers analysis or
conclusions based upon the Findings of Fact. New facts and case citations normally
should not be included in this part. After an appropriate discussion and analysis, the
contracting officer should make a clear, simple statement which sets forth the
determination on the contract claim.

(5) The last paragraph of the decision should clearly state that the writing is the
contracting officers final decision and advise the contractor of its appeal rights.

2. Notification of Appeal Rights. This paragraph, which is found in FAR 33.211(a)(4)(v), should
be included at the end of a contracting officers final decision:

"This is the final decision of the Contracting Officer. This decision may be
appealed to the Armed Services Board of Contract Appeals, Skyline 6, 5109
Leesburg Pike, Falls Church, Virginia 22041-3208. If you decide to appeal, you
must mail or otherwise furnish written notice thereof to the Armed Services
Board of Contract Appeals within 90 days from the date you receive this
decision. A copy thereof shall be furnished to the contracting officer from
whose decision the appeal is taken. The notice shall indicate that an appeal is
intended, include a copy of this decision and identify the contract by number.
The notice shall also include a copy of this decision. With regard to appeals to
the Armed Services Board of Contract Appeals, you may, solely at your election,
proceed under the Boards small claims procedure for claims of $50,000 or less
or its accelerated procedures for claims of $100,000 or less. In lieu of appealing
to the Armed Services Board of Contract Appeals, you may bring an action
directly in the U.S. Court of Federal Claims (except as provided in the Contract
Disputes Act, 41 U.S.C. 7102(d), regarding Maritime Contracts) within 12
months of the date you receive this decision.

3. Transmittal of the Contracting Officers Final Decision. The contracting officers final
decision with the Findings of Fact shall be transmitted by certified or registered mail, return
receipt requested, to the contractors address shown on the initial contract page or by another
reasonable method that evidences receipt by the contractor. The contractor may request, in
writing, that a different address be utilized if the specific purpose is identified, i.e., receipt of
formal contracting officers final decision.


Page 8 of 19
A3-204 Affirmative Government Claims.

Contract claims by the Government also should be processed under these guidelines.

A3-205 Maritime Contract Claims.

The Contract Disputes Act contains a separate provision for the consideration of claims and appeals of
maritime contracts.

a. Contracts for the repair of ships are maritime contracts under the Contract Disputes Act.
Appeals arising out of maritime contracts are covered separately by the Suits in Admiralty Act.
Jurisdiction to hear these appeals is in the U.S. District Courts, not the U.S. Court of Federal Claims.
When rendering a decision on a claim arising out of a maritime contract, contracting officers must
advise the contractor of its right to appeal the decision to a U.S. District Court.

b. Contracts for the construction of ships as opposed to contracts for the repair of ships - are not
considered maritime contracts. Claims and appeals arising out of contracts for the construction of
ships will be administered in the same manner as other claims and appeals subject to the Contract
Disputes Act.

A3-206 Maintenance of Records.

(a) All Government personnel must exercise care to prevent premature destruction of contract
administration and finance records, including electronic files, that are involved in claims and appeals
before Boards and Federal courts. Contract files containing these records are sometimes retired or
destroyed before all claims and appeals have been fully resolved. In the process of retiring records,
documents that do not appear to have a permanent value are often discarded, such as handwritten
memoranda and preliminary drafts. Therefore, it is important to identify such material during the
investigation required by A3-203(b) and to provide for its retention. See DFARS 204.805

(b) To avoid closeout of an official contract file prior to completion of a pending appeal, all contract files
involving an appeal shall be retained intact for seven years after the date of the final Board or Federal
court decision in the case. In an appeal dismissed by the Board or Federal court with prejudice based on
stipulation of the parties, or request of the contractor following the settlement of the appeal, this
requirement does not apply.

A3-207 Claims Management and Case Tracking.

Each Office of Counsel is required to enter all its claims more than 90 days old, including affirmative
Government claims, into the USACE Legal Services Matter Tracking System. The following information
must be entered for every claim: the name of the contractor, the contract number, the project and
location, the date relief was requested or the certification date, the relief requested, the attorney
assigned to the claim and a brief narrative description of the facts and issues. The database should be
updated as significant events occur. When the contracting officer renders a final decision or a claim is
settled, the claim should be closed on the database and the following information entered within 5
working days: the disposition of the claim (whether it was decided, settled, or withdrawn); the date of
disposition, the nature of the disposition (whether relief was denied or granted in whole or in part); and
a summary of any relief granted.

Page 9 of 19

SUBPART 300 - PROCEDURES FOR HANDLING APPEALS AT THE ARMED SERVICES BOARD OF
CONTRACT APPEALS


This subpart sets forth the procedures for handling contract appeals before the ASBCA. Throughout this
subpart, the term local counsel shall mean District Counsel, Division Counsel, Center Counsel,
Laboratory Counsel or FOA Counsel.


Normally, the contractor will send a Notice of Appeal directly to the Board and will furnish a copy to the
contracting officer. If the original Notice of Appeal is received by the contracting officer, however, it
should be forwarded promptly to the Board and a copy sent to the Division and to the Engineer Chief
Trial Attorney. Specifically, any Notice of Appeal received directly shall be promptly forwarded to the
Chairman, Armed Services Board of Contract Appeals, 5109 Leesburg Pike, Suite 703, Falls Church, VA
22041-3208 and include the envelope showing the postmark when the notice of appeal was received by
mail. AFARS 5133.212-90-1(a).

A3-302 Nature of Appeals - General.

(a) Signature Block. For all trial documents which require the signature of the Engineer Chief Trial
Attorney, the signature block shall read Engineer Chief Trial Attorney.

(b) Appeals under $3 million. The Engineer Chief Trial Attorney is the authorized representative of the
Secretary of the Army and has sole authority and responsibility for the conduct and control of litigation
of contract disputes for all Corps of Engineers cases docketed with the ASBCA of a value of less than $3
million. AFARS 5133.212-90(a)(2).

(c) Appeals of $3 million or more. The Assistant Judge Advocate General (TAJAG) for Civil Law may
determine, on a case by case basis, to delegate Corps of Engineers cases of a value of $3 million or more
to the Engineer Chief Trial Attorney. AFARS 5133.212 90(a)(3). Within 14 days of receipt of a Notice of
Appeal in an ASBCA case of $3 million or more, the assigned trial attorney shall transmit to the Engineer
Chief Trial Attorney a memorandum describing the nature of the claim and recommending whether the
Engineer Chief Trial Attorney should seek delegation from TAJAG under AFARS 5133.212-90(a)(3). A
copy of the contracting officers final decision, if issued, shall accompany this memorandum. The
Engineer Chief Trial Attorney shall forward a recommendation to TAJAG.

A3-303 Appeal File (Rule 4).

(a) General. In Rule 4 of the ASBCA, the contracting officer is responsible for assembling and
transmitting to the Board an appeal file consisting of all documents pertinent to the appeal. Normally,
appeal files are prepared by the Office of Counsel. The appeal file shall include the compilation of
documents described in Rule 4 and shall be prepared in accordance with this section.


Page 10 of 19
(b) Filing Procedure.

1. General. The appeal file shall be forwarded directly to the Board. At the time the appeal file is
forwarded, the contracting officer will furnish the appellant a copy of each document except the
contract. The letter of transmittal to the Board shall state that this has been done. An abbreviated
copy of the appeal file consisting only of the transmittal letter, contracting officers final decision,
and claim letter shall be forwarded to the Engineer Chief Trial Attorney. A copy of the appeal file
shall be provided by the trial attorney to Division Counsels in Command and Control Divisions as
required.

2. Minimum Number of Copies. Unless otherwise directed by the Board, one copy of the complete
appeal file shall be forwarded to the Board.

3. Appeal File Supplements. Additional material may be submitted as a supplement to the appeal
file and a copy simultaneously furnished to the appellant. Any supplements to the appeal file will be
forwarded to the Board in the same manner as the original appeal file. Tab numbers in an appeal
file supplement shall begin with SR4-.

(c) Form. Appeal files will be assembled in three-ring binders with a 2-inch spine, or as otherwise
directed by the Board. Each document will be separated by a divider with a tab attached. In accordance
with Board rules, the tabs should be numbered sequentially. The tab numbers may be preprinted, hand
printed or typed on the tab. If the appeal file is voluminous, it should be divided into two or more
volumes. The cover of each volume shall identify it as the appeal file and include the appeal caption,
contract number, docket number and volume number. Additionally, an index of documents shall be
placed in the front of all volumes of the appeal file. Drawings may be placed in a separate volume.
Generally, drawings should be placed in the appeal file in the following or other comparable manner:
(1) insert a sealed manila envelope into the assembly, punching holes at the top, or left side, so that the
top, left side and bottom are even with the remaining documents; (2) cut the right envelope side open,
parallel to the right edge of the remaining documents; and (3) fold the drawings so that they can be
inserted and removed from the right side of the envelope. When a complete set of specifications or
drawings is furnished, it should be identified as an appendix to the appeal file which can be easily
reviewed, e.g., a complete set of specifications similar to the basic appeal file: a complete set, or several
drawings clearly marked, rolled and placed in a shipping tube. Specifications and drawings need only be
submitted to the Board. When large documentary exhibits are included in the appeal file, such exhibits
shall be paginated sequentially for easier reference.

A3-304 Trial Attorneys.

(a) The Trial Attorney Qualification Program.

1. Establishment. On 9 May 1997, the Chief Counsel established the Trial Attorney Qualification
Program. The effective date of the Program was 1 July 1997.

2. Policy. In order to represent the Corps of Engineers as lead counsel in Type II and Type III
contract appeals, a trial attorney must be designated as qualified under the Program. The Engineer
Chief Trial Attorney is authorized to designate a trial attorney as qualified.


Page 11 of 19
3. Criteria. The standards for qualification as a Type II and Type III lead counsel include litigation
experience, training courses, and special skills for Type III cases.

4. Procedures. A request for qualification designation will be initiated by the trial attorney.
Details of the USACE Trial Attorney Qualification Program, including the procedures for submission
of the request to the Engineer Chief Trial Attorney are available on the USACE Legal Services
Intranet (CorpsLaw).

(b) Appointment. The local counsel shall assign the Government Trial Attorney. Only Type III qualified
trial attorneys may be assigned as lead counsel on appeals of Type III cases. For every appeal, the
Engineer Chief Trial Attorney and the Chief Counsel reserve the authority to disapprove the assignment
of a particular trial attorney or to remove the trial attorney once assigned.

(c) Duties. The trial attorney is expected to personally prepare and present the Governments case.
The trial attorney is expected to follow all of the customary rules of professional conduct, including the
duty to ensure that documents and pleadings which require the signature of the Engineer Chief Trial
Attorney are forwarded to the Engineer Chief Trial Attorney so that they may be timely filed. The trial
attorney will review the appeal file to ascertain if the Governments position is adequately supported
and the appeal is timely. In the event the appeal is untimely, the trial attorney shall immediately follow
the procedure discussed in A3-306(b) for filing a Motion to Dismiss.

1. Prior to Hearings. Prior to a hearing before the ASBCA, the trial attorney shall seek to obtain a
written stipulation from a pro se appellant or a represented appellants counsel which states
whether or not quantum will be an issue at the hearing.

2. Upon Discovery of New Evidence or Facts. If, before or during the presentation of the
Governments case, the trial attorney discovers or is informed of new facts or evidence which
require re-evaluation of the Governments potential liability, a prompt and direct review shall be
made and the contracting officer advised. The trial attorney shall inform the contracting officer of
the previously unknown facts or evidence, provide an initial determination of the impact upon the
Governments case, and make a recommendation to the contracting officer as to possible
settlement or other action.

3. All Government Personnel. The contracting officer and other Government personnel shall assist
the trial attorney in case preparation and presentation as requested by the trial attorney.

A3-305 Pleadings.

(a) Answer.

1. Style. An Answer should conform to the Federal Rules of Civil Procedure, i.e., admit, deny or
allege according to each specific allegation in the complaint; followed by a second section which
outlines the Governments affirmative defenses. An Answer shall be neatly typed, double spaced,
and prepared on letter size paper. If the Complaint is in letter form, as opposed to traditional
numbered paragraph form, the trial attorney should assign paragraph numbers to each paragraph
contained in the letter, and base the answer on these numbered paragraphs.


Page 12 of 19
2. Procedures. The original and two copies of the Answer shall be filed by the trial attorney
directly with the ASBCA. The answer shall be signed by the trial attorney and local counsel. The trial
attorney shall also forward a copy of the answer and the complaint to the Engineer Chief Trial
Attorney and to Division Counsels in Command and Control Divisions as each requires.

(b) Government Complaints. In appeals of affirmative Government claims, the Board may require the
Government to file the Complaint. A Government Complaint shall conform to the Federal Rules of Civil
Procedure. The trial attorney shall follow the filing procedures described above.

A3-306 Motions.

Motions will be neatly typed, double spaced and prepared on letter size paper. Motions should be
supported by an accompanying memorandum, prepared according to the above guidelines, which states
relevant facts and identifies the statutes, regulations, and other legal authorities supporting the motion.
The memorandum shall have the same signatures as the motion and be filed according to the
procedures outlined below. The memorandum should conform to the customary style and professional
standards covering presentation, argument and citation of authorities.

a. Non-Dispositive Motions. Most non-dispositive motions shall be filed directly by the trial
attorney with the ASBCA. These include: motion for an extension of time, motion to compel, motion
to amend, motion to strike and motion to suspend proceeding. The motion shall be signed by the
trial attorney and local counsel. A copy of the motion shall be provided by the trial attorney to
Division Counsels in Command and Control Divisions as each requires and to the Engineer Chief Trial
Attorney. Pursuant to Rule 16 of the ASBCA, the trial attorney is responsible for forwarding a copy
of the motion to the appellants counsel (or to the appellant who is appearing pro se). The
correspondence transmitting the motion to the Board shall indicate that this has been done.

b. Dispositive Motions and Motions Raising Significant Issues. Jurisdictional motions, motions
invoking executive privilege, dispositive motions, motions for reconsideration and motions for
sanctions shall be signed by the trial attorney. The original and two copies shall be forwarded to the
Engineer Chief Trial Attorney for signature and filing with the ASBCA. A copy of such a motion shall
be provided by the trial attorney to Division Counsels as each requires. The correspondence
transmitting the motion to the Engineer Chief Trial Attorney shall indicate the date, if any, when the
motion must be received by the Board and include an envelope addressed to the appellants counsel
(or to the appellant who is appearing pro se). Pursuant to Rule 16 of the ASBCA, the Engineer Chief
Trial Attorney is responsible for forwarding a copy of the motion to the appellants counsel (or to
the appellant where pro se).

A3-307 Briefs.

(a) Style. Briefs shall be neatly typed, double-spaced on letter size paper and bound by a front and back
cover made of plastic, cardboard or heavy paper. All briefs should conform to the customary style and
professional standards covering presentation, argument and citation of authorities.

(b) Procedures.

1. Type I and Type II Appeals. Briefs in Type I and Type II appeals shall be signed by the trial
attorney and local counsel and filed directly with the ASBCA. The trial attorney shall provide a copy

Page 13 of 19
of the brief to the Engineer Chief Trial Attorney and to Division Counsels in Command and Control
Divisions as each requires.

2. Type III Appeals. Briefs in Type III appeals shall be signed by the trial attorney and the original
and two copies shall be forwarded to the Engineer Chief Trial Attorney for signature and filing with
the Board. A copy of the brief shall be provided by the trial attorney to Division Counsels in
Command and Control Divisions as each requires. The correspondence transmitting the brief to the
Engineer Chief Trial Attorney shall indicate the date when the brief must be received by the Board
and include an envelope addressed to the appellants counsel (or to the appellant where pro se).

A3-308 Discovery.

Discovery is covered by Rule 14 of the ASBCA and should generally follow the Federal Rules of Civil
Procedure. All Government personnel are encouraged to assist the trial attorney in voluntary discovery
procedures. However, any deposition or discovery procedure that is designed to annoy, embarrass,
harass or place an undue burden upon the Government will be vigorously opposed.


Trial attorneys are encouraged to engage in ADR of contract claims and appeals to the maximum extent
practicable.

a. Third Party Assisted. Neutral and impartial third parties may be used in mediation, mini-trial,
non-binding arbitration and dispute review boards. There is no regulatory authority and the policy
of the Corps of Engineers is not to use binding arbitration.

b. Board Assisted. ASBCA administrative judges are available for ADR and it is USACE policy to use
their services as settlement judges. At the inception of an appeal, the Board provides its notice
regarding ADR to the parties. The notice describes Board ADR policies and procedures. The ADR
procedures used by the Board include: settlement judge, mini-trial, summary trial with binding
decision and other agreed upon methods. Prior to agreeing to use any form of ADR, the trial
attorney shall consult with the Engineer Chief Trial Attorney. Prior to agreeing to participate in a
summary trial with binding decision process, the trial attorney must request and receive from the
Chief Counsel a waiver of the Governments right to appeal the decision. The memorandum
requesting waiver shall be forwarded to the Chief Counsel through the Engineer Chief Trial Attorney
and shall briefly set forth the factual background of the appeal.

A3-310 Settlement.

(a) Authority. The authority and responsibility to settle contract appeals docketed with the ASBCA
remain with the contracting officer. AFARS 5133.212-90-7(a). The contracting officer shall advise the
trial attorney of all offers of settlement from a contractor, whether such offer is made by the contractor
or through the contractors attorney. The contracting officer shall consult with the trial attorney before
accepting a contractors offer of settlement and before making a settlement offer to the contractor.
Additionally, the Engineer Chief Trial Attorney has the independent authority to settle ASBCA cases with
the concurrence of either the contracting officer, the Head of the Contracting Activity or the Deputy
Assistant Secretary of the Army for Procurement (DASA(P)).

Page 14 of 19

(b) Procedure. A stipulation of dismissal shall be prepared for all settled appeals. This should be
submitted by the trial attorney directly with the Board. A copy of this document shall be provided by
the trial attorney to Division Counsels in Command and Control Divisions as each requires and to the
Engineer Chief Trial Attorney.

A3-311 Decisions.

(a) Notice. The trial attorney is responsible for notifying the Engineer Chief Trial Attorney of all
decisions rendered by the ASBCA. The notification should be made by telephone or electronic mail
within one day of receiving the decision, and a copy should be faxed or mailed to the Engineer Chief
Trial Attorney. A copy of the decision shall be provided by the trial attorney to Division Counsels in
Command and Control Divisions as each requires.

(b) Motion for Reconsideration. Under Rule 29 of the ASBCA, either party may file a motion for
reconsideration within 30 days of receipt of the decision. Prior to preparing such a motion, the trial
attorney must receive authorization from the Engineer Chief Trial Attorney. The motion and its
supporting memorandum shall be prepared in accordance with Board Rule 29 and A3-306.

(c) Appeals to the U.S. Court of Appeals for the Federal Circuit. When the trial attorney wants to appeal
a Boards decision to the U.S. Court of Appeals for the Federal Circuit, a request to initiate such an action
should be made through command channels to the Engineer Chief Trial Attorney within ten calendar
days after receipt of the decision. The request shall state the bases for the appeal pursuant to the
review standard of the Contract Disputes Act, 41 U.S.C. 7107(b). The Engineer Chief Trial Attorney shall
coordinate with the Office of the Army General Counsel, and the Chief Counsel shall make the final
agency recommendation to the Department of Justice. The appeal must be made by the Department of
Justice within 120 days of receipt of the decision by the Government. 41 U.S.C. 7107(a)(1)(B).

(d) Payment. A payment to an appellant from a Board decision shall be made promptly from available
project appropriations. If projects funds are not readily available or extraordinary circumstances exist,
the Judgment Fund as provided for in the Contract Disputes Act, 41 U.S.C. 7108, may be used. Such
use requires the prior approval of the Engineer Chief Trial Attorney. A request to use the Judgment
Fund will be submitted with supporting documentation to the Engineer Chief Trial Attorney. Resort to
the Judgment Fund requires a certification from Resource Management that project funds are
unavailable.

A3-312 Attorney Fee Claims.

Pursuant to the Equal Access to Justice Act (EAJA), 5 U.S.C. 504, a qualifying appellant may recover
fees and other expenses incurred in connection with the appeal if it prevails either through a favorable
settlement or Board decision and when the Governments position was not substantially justified. As a
jurisdictional matter, EAJA requires that a Board receive the application for an award of fees and other
expenses within 30 days after final disposition of the matter. An EAJA claim may be settled by the
contracting officer pursuant to A3-310. Upon receipt of a request for fees and expenses under EAJA, the
trial attorney responsible for the appeal should review the appellants qualifications and follow the
Boards procedures for award of fees and expenses under EAJA.


Page 15 of 19
A3-313 Appeals Management and Case Tracking.

The Office of Counsel is required to enter and update all its appeals in the USACE Legal Services Matter
Tracking System (MTS). The trial attorney is responsible for ensuring that MTS has current and accurate
information in all assigned cases.

a. New Appeals. In most instances, the basic information concerning the claim which is the subject
of the appeal is already in the database. In such cases, the trial attorney shall update the
information by changing the category of the entry from (claim) to (appeal) and adding the ASBCA as
the forum and the docket number. A new, separate case should not be entered. If the claim was
not entered into the database during the claim stage, the following information must be entered for
each appeal: the name of the appellant/contractor, the forum and docket number, the contract
number, the project and location, the relief requested, the date of the contracting officers final
decision, the trial attorney assigned to the appeal and a brief narrative description of the facts and
issues.

b. Updating Appeal Information. The database should be updated as significant events occur,
including the filing of pleadings, dispositive motions and briefs, and the scheduling of hearings, and
ADR procedures. When the ASBCA renders a decision or a case is settled and dismissed by the
Board, the appeal should be closed on the database and the following information should be
entered within 5 working days: the disposition of the appeal (whether it was decided, settled or
withdrawn), the date of disposition, the nature of the disposition (whether relief was denied or
granted in whole or in part) and a summary of any relief granted.

SUBPART 400 - DIRECT ACTIONS IN THE UNITED STATES COURT OF FEDERAL CLAIMS


This subpart sets forth procedures for handling Contract Disputes Act litigation before the U.S. Court of
Federal Claims. See 41 U.S.C. 7104(b). Throughout this subpart, the term local counsel shall mean
District Counsel, Operating Division Counsel, Center Counsel, Laboratory Counsel or FOA Counsel.


(a) Department of Justice (DOJ). DOJ is responsible for Contract Disputes Act cases in the U.S. Court of
Federal Claims. 28 U.S.C. 2518(a).

(b) Corps of Engineers. The District, Laboratory or FOA Counsel will assign a trial attorney to prepare a
litigation report and to assist the DOJ attorney assigned to the case.

A3-402 Notice of Filing.

(a) Department of Justice. When a complaint is filed, DOJ notifies the agency by sending a transmittal
letter stating the name and telephone number of the DOJ attorney assigned to the case and requesting
that the Corps trial attorney assigned to the case contact the DOJ attorney. The letter also requests a
litigation report and draft answer.


Page 16 of 19
(b) Corps of Engineers. The Engineer Chief Trial Attorney will forward the DOJ letter and complaint to
the Corps District, Operating Division, Laboratory, Center or FOA responsible for administration of the
contract at issue, with a copy to the Division Counsel where applicable. The Engineer Chief Trial
Attorneys letter will establish a suspense for submitting the litigation report and contain instructions for
complying with DOJs requests.

A3-403 Litigation Report.

(a) Procedures. Except in those instances when time does not permit and prior telephonic approval of
deviation from this procedure is obtained from the Engineer Chief Trial Attorney, two copies of the
litigation report and exhibits, one for the DOJ attorney and one for the Engineer Chief Trial Attorney, will
be submitted directly to the Engineer Chief Trial Attorney. An additional copy should be sent to the
Division Counsel in Command and Control Divisions as each requires. Bulky or voluminous exhibits may
be omitted from the Engineer Chief Trial Attorneys copy of the report with prior permission of the
Engineer Chief Trial Attorney.

(b) Form. The litigation report shall contain (1) a narrative statement of facts and listing of exhibits; (2)
a suggested answer; (3) a list of witnesses; (4) a legal analysis; and (5) information concerning any
known counterclaim, set-off or other cause of action which may be asserted against the Plaintiff by the
Government. The statement of facts may be summarized from the contracting officers final decision. A
legal memorandum prepared for the contracting officers use in considering the claim may be used as
the required legal analysis if it addresses all of the relevant legal points. The exhibits shall consist of a
compilation of documents prepared in the same manner as an appeal file before the Board. See
generally A3-303.


The Corps trial attorney assigned to the case is responsible for keeping the Engineer Chief Trial Attorney
fully informed of all significant events that occur as the case progresses. This requirement includes
furnishing the Engineer Chief Trial Attorney a copy of all pleadings, motions and briefs filed; keeping the
Matter Tracking System completely updated (see A3-408); and advising the Engineer Chief Trial Attorney
by telephone or electronic mail when hearings are scheduled.


(a) Third Party Assisted. Executive Order 12988 concerning civil justice reform, encourages litigation
attorneys to use ADR. The Corps trial attorney will assist the DOJ attorney in using ADR.

(b) Court Assisted. General Order 13 of the U.S. Court of Federal Claims, as amended, established three
methods of ADR for use in cases before the court: settlement judges, mini-trials and third party neutrals.
The settlement judge procedure contemplates a frank, in-depth discussion of each partys case before a
neutral advisor. The mini-trial is a flexible, expedited procedure where each party presents an
abbreviated version of its case to a neutral advisor (a judge other than the presiding judge), who then
assists the parties in negotiating a settlement. The third party neutral procedure consists of a private
third party appointed by the court to assist in ADR. Corps trial attorneys are strongly encouraged to
work with the DOJ attorney in utilizing these procedures to the maximum extent practicable.


Page 17 of 19
A3-406 Settlement.

Authority to settle the case is vested solely in the Department of Justice. 28 U.S.C. 516, 519; Exec.
Order No. 6166, June 10, 1933, reprinted in 5 U.S.C. 901. Once litigation is docketed before a Federal
court, the contracting officer loses all authority to settle the case. All recommendations concerning
settlement of cases in the U.S. Court of Federal Claims will be made by the Chief Counsel to DOJ. The
Corps trial attorney assigned to the case, in collaboration with the contracting officer, is responsible for
forwarding the settlement recommendation, including an explanation of the proposed terms and the
reasons why the Government should or should not agree to them, through the command channels, to
the Engineer Chief Trial Attorney. The Engineer Chief Trial Attorney will prepare the recommendation
for the Chief Counsel to send to DOJ. An exception will be made when, pursuant to General Order 13, as
amended, the court requests that the agency representative have full settlement authority.

A3-407 Decisions.

(a) Notice. The Corps trial attorney assigned to a case is responsible for notifying the Engineer Chief
Trial Attorney of all decisions rendered by the U.S. Court of Federal Claims. The notification should be
made by telephone or electronic mail within one day of receiving the decision, and a copy should be
faxed or mailed to the Engineer Chief Trial Attorney. A copy of the decision shall be provided by the trial
attorney to Division Counsels in Command and Control Divisions as each requires.

(b) Motion for Reconsideration. A motion for reconsideration is governed by Rule 59 of the Rules of the
U.S. Court of Federal Claims. The motion must be filed within 10 days of the entry of judgment. The
Corps trial attorney assigned to the case should forward any recommendations concerning the
Governments filing a motion for reconsideration through command channels to the Engineer Chief Trial
Attorney within 5 days of the entry of judgment. The Engineer Chief Trial Attorney will prepare the
agency recommendation for the Chief Counsel to forward to DOJ.

(c) Appeal. Recommendation for appeal of an adverse decision will be made by the Chief Counsel to
DOJ. When the trial attorney assigned to the case believes an appeal is warranted, the trial attorney
and the local counsel will contact the Engineer Chief Trial Attorney informally to discuss whether an
appeal is appropriate. If an appeal is warranted, the trial attorney shall forward a written appeal
recommendation, including a thorough analysis of the facts and law, through command channels to the
Engineer Chief Trial Attorney. The Engineer Chief Trial Attorney will coordinate with the Office of the
Army General Counsel and prepare the agency recommendation for the Chief Counsel to send to DOJ.

(d) Payment. In cases where the U.S. Court of Federal Claims issues a decision sustaining the appeal,
payment will be made in accordance with Judgment Fund procedures.

A3-408 Case Management and Tracking.

The Office of Counsel is required to enter and update all cases in the USACE Legal Services Matter
Tracking System. The trial attorney is responsible for ensuring that MTS has current and accurate
information in all assigned cases.

(a) New Cases. In most instances, the basic information concerning the case is already in the database.
In such cases, the trial attorney shall update the information by changing the category of the entry from
claim to appeal and adding the U.S. Court of Federal Claims as the forum and the courts docket

Page 18 of 19
number. A new, separate case should not be entered. If the claim was not entered into the database
during the claim stage, the following information must be entered for each case: the name of the
plaintiff/contractor, the forum and docket number, the contract number, the project and location, the
relief requested, the date of the contracting officers final decision, the trial attorney assigned to the
case and a brief narrative description of the facts and issues.

(b) Updating Case Information. The database should be updated as significant events occur, including
the filing of pleadings, dispositive motions and briefs and the scheduling of hearings, trials and ADR.
When the court renders a decision or a case is settled and dismissed by the court, the case should be
closed on the database and the following information entered within 5 working days: the disposition of
the case (whether it was decided, settled or withdrawn), the date of disposition, the nature of the
disposition (whether relief was denied or granted in whole or in part) and a summary of any relief
granted.

SUBPART 500 - APPEALS TO THE UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT


This subpart sets forth procedures for handling appeals at the U.S. Court of Appeals for the Federal
Circuit pursuant to the Contract Disputes Act, 41 U.S.C. 7107(a)(1).


(a) Contractor Appeals.

1. Department of Justice (DOJ). When an appeal is filed, the DOJ notifies the agency by sending a
transmittal letter stating the name and telephone number of the DOJ attorney assigned to the case
and requesting that the Corps trial attorney contact the DOJ attorney. The letter indicates that upon
filing of appellants brief, the DOJ attorney will promptly furnish a copy with a request for comments
to the trial attorney. The letter also requests that the trial attorney provide advice as to which parts
of the record should be included in the appendix.

2. Corps of Engineers. The Engineer Chief Trial Attorney will forward the DOJ letter and notice of
appeal to the Corps District, Operating Division, Laboratory, Center or FOA responsible for
administration of the contract at issue, with a copy to the Division. The Engineer Chief Trial
Attorneys letter will direct the assigned attorney to comply with DOJs requests for advice, to keep
the Engineer Chief Trial Attorney informed of significant developments in the case and to keep the
appeal updated on the Matter Tracking System.

(b) Government Appeals. Appeals of ASBCA decisions shall be made according to the procedure set
forth in A3-311(c). Appeals of U.S. Court of Federal Claims decisions shall be made according to A3-
407(c).


(a) Department of Justice (DOJ). DOJ is responsible for Contract Disputes Act cases in the U.S. Court of
Appeals for the Federal Circuit. 28 U.S.C. 518(a). The DOJ attorney assigned to the case is responsible

Page 19 of 19
for representing the Government to include preparing and filing the Governments brief and
participating in oral arguments.

(b) Corps of Engineers. The assigned trial attorney shall provide assistance to the DOJ attorney in
preparing the Governments brief and conducting oral argument. The trial attorney shall also have the
responsibility of notifying the Engineer Chief Trial Attorney of significant events in the case as defined
below.


The assigned trial attorney is responsible for keeping the Engineer Chief Trial Attorney fully informed of
all significant events that occur as the case progresses. This requirement includes furnishing the
Engineer Chief Trial Attorney a copy of dispositive motions and briefs filed and keeping the Matter
Tracking System completely updated (see A3-506).

A3-504 Oral Argument.

When oral argument is scheduled, the assigned trial attorney shall inform the Engineer Chief Trial
Attorney of the date and indicate who will be attending.

A3-505 Decision.

The assigned trial attorney is responsible for notifying the Engineer Chief Trial Attorney of the decision
rendered by the U.S. Court of Appeals for the Federal Circuit. The notification should be made by
telephone or electronic mail within one day of receiving the decision, and a copy should be faxed or
mailed to the Engineer Chief Trial Attorney.

A3-506 Appeals Management and Tracking.

The Office of Counsel is required to enter and update all appeals at the U.S. Court of Appeals for the
Federal Circuit in the USACE Legal Services Matter Tracking System. The trial attorney is responsible for
ensuring that MTS has current and accurate information in all assigned cases.

a. New Appeals. The basic information concerning the appeal is already in the database. The trial
attorney shall update the information by changing the forum to the U.S. Court of Appeals for the
Federal Circuit and adding the appellate docket number. A new, separate case should not be
entered.

b. Updating Appeal Information. The database should be updated as significant events occur
including the filing of motions and briefs and the scheduling of oral arguments. If the appeals court
renders a decision remanding the case to a Board or the U.S. Court of Federal Claims, the decision
should be recorded in MTS, and the forum and docket number in the case file should be changed to
show where the case is now pending. When the appellate court renders a final decision or a case is
settled, the appeal should be closed and the following information should be entered within 5
working days: the disposition of the appeal (whether it was decided, settled or withdrawn), the
date of disposition, the nature of the disposition (whether relief was denied or granted in whole or
in part) and a summary of any relief granted.

____________________________________________________________________________________

APPENDIX 36-1
Development, Review and Approval of Government
Estimates Matrix
Development, Review and Approval of Government Estimates Matrix

Page 1 of 2
MATRIX-DEVELOPMENT, REVIEW AND APPROVAL OF
GOVERNMENT ESTIMATES (14 AUG 2012)
INDEPENDENT GOVERNMENT ESTIMATE (IGE)
1

CONTRACT
TYPE
CONTRACT VALUE MEASUREMENT PREPARATION REVIEW APPROVAL OR
VALIDATION
2

Construction
Contracts
Less than
Threshold
3

Price Reasonableness
Method
4

per PCO discretion per PCO per PCO discretion
Greater than SAT (Note: all
unilaterial contract actions
regardless of size)
IGE Required
Cost Engineering
Organization
5

Chief, Cost Engineering Organization
5
or their Delegated Authority
District Commander/Director
or their Delegated
Authority
5b

Construction
Contract
Modifications
and Claims
Less than
Threshold
3

Method
4

per PCO or ACO discretion per PCO or Area/Resident's Engineer's discretion
per PCO or
Area/Resident's Engineer's
discretion
SAT to $500,000 IGE Required
Area/Resident Engineer
staff or Cost Engineering
Organization
5

5

5a

District Commander
/Director
Or their Delegated
Authority
5a

Greater than $500,000 IGE Required
Cost Engineering
Organization
5
w/support
of Area/Resident Engineer
staff
5
District Commander
/Director
Or their Delegated
Authority
5b

Supply/Services
without
Construction
Activities
Less than Simplified
Acquisition Threshold
per PCO's discretion per PCO's discretion per PCO's discretion
Equal to or greater
than Simplified Acquisition
Threshold
IGE Required Project Delivery Team
6

Competent individual employed
by the Government, one management level
above or organizationally independent
of the IGE preparer;
District Commander
/Director
Or their Delegated
Authority
Supply/Services
with
Construction
Activities
7

Method
4

Equal to or greater
Threshold
IGE Required
Cost Engineering
Organization
5

5
District Commander
/Director
Or their Delegated
Authority
5b

Architect
Engineer
Method
5

per PCO's discretion per PCO's discretion
Section Chief or 1st Line
Supervisor

A-E Contract
More than Simplified
Acquisition Threshold and less
than $500,000
IGE Required
Design Manager or
equivalent technical position
Chief, Cost Engineering
Organization or Branch Chief
or
2nd Line Supervisor
More than $500,000 IGE Required
esign Manager or equivalent
technical position
Engineering Division Chief
Information
Technology
Method
4

Equal to or greater
Threshold
IGE Required Project Delivery Team
6

District Commander/Director
1
"IGE" is an formal official government document prepared in accordance with ER 1110-1-1300 Cost Engineering Policy and General Requirements.
2
IGE Approver shall not be the PCO or ACO for the acquisition
3
SAT is currently $150K
4
"Price Reasonableness Method" as defined within regulations with determination of services and construction items made by the KO and the PDT with cost engineering representation. The PCO
may request IGE if deemed necessary or appropriate. FAR 31.201
5
"Cost Engineering Organization" - is the single cost engineering group located in a district/center/division designated to perform the cost engineering function. IGEs must be accurately prepared
using the corporate automated cost estimating systems, e.g., latest approved version of Microcomputer Aided Cost Estimating System (MCACES) or a system previously approved by the chief of the
cost engineering office. 5a Delegated Authority is intended to be the appropriate member of the technical division performing construction contract administration and the management of that
function. 5b Delegated Authority is intended to be the appropriate member of the technical division managing the Chief of the Cost Engineering Organization.
6 "
Project Delivery Team" estimates prepared by the PDT shall be developed by members qualified to estimate their respective portion of the effort. Cost Engineering Organization PDT member is
a viable option.
7
"Construction Activities" refers to all types of work done by laborers and mechanics employed by the construction contractor or construction subcontractor on a particular building or work at the
site thereof, including without limitations Altering, remodeling, installation (if appropriate) on the site of the work of items fabricated off-site; Painting and decorating; Manufacturing or
furnishing of materials, articles, supplies, or equipment on the site of the building or work; Transportation of materials and supplies between the site of the work within the meaning of paragraphs
(1)(i) and (ii) of the site of the work definition of this section, and a facility which is dedicated to the construction of the building or work and is deemed part of the site of the work within the
meaning of paragraph (2) of the site of work definition of this section; and Transportation of portions of the building or work between a secondary site where a significant portion of the building
or work is constructed, which is part of the site of the work definition in paragraph (1)(ii) of this section, and the physical place or places where the building or work will remain. Includes
maintenance of facilities. Per FAR 22.4

Page 188

____________________________________________________________________________________

APPENDIX 37-1
ACQUISITION STRATEGY CONTENT GUIDE & CHECKLIST

(Includes AFARS Subpart 5137.590 guidance as well as emerging issues and lessons learned from prior ASSP Reviews)

Title of Requirement: _________________________________________ Date:___________________

1. REQUIREMENT
a. Are the requirement(s) clear and well defined with identified outcomes to be satisfied (performance, schedule
and cost)?

b. Does the strategy demonstrate implementation of performance-based methods and outcomes? (If not
performance-based - AAE approval required (for requirements greater than $85.5M IAW DFARS 237.170-2(a)(2))

c. If this is not a new acquisition, were measures of success met previously? If yes, identify how the requirement
was previously satisfied.

d. Discuss the procurement history (dollar value, contract term, contract type, business size, number of offerors, and
source selection method). If a multiple award IDIQ contract was used, include a break-out of task and delivery orders
by contractor, contract type and dollar value.

e. List challenges that drive the mission or acquisition approach (e.g., BRAC, mobilization, cost growth, changes from
a previous contract if a follow-on)

f. If significant potential organizational conflicts of interest (OCI) are involved, has appropriate approval been
obtained?

g. Is there any congressional interest? Summarize.

h. Are there opportunities for strategic sourcing?

i. Has approval to initiate a contract for services been obtained from an appropriate GO/SES? Are accompanying
worksheets completed? Will the requirement to report Contracting Manpower to the CMRA database be included in
the contract?

j. If this involves performance in Iraq or Afghanistan, have theater business clearances been obtained (IAW PARC
Policy Alerts 08-04, 08-05)?

2. RISKS
a. Current and potential costs (e.g., competitive environment, contract type, funding short falls)

b. Schedule risks (e.g., transition period, surge requirements)

c. Performance risks (e.g., technical complexity, availability of qualified personnel)

d. Level of risk and risk mitigation plan (See Risk Management Guide for DoD Acquisition found at
http:www.acq.osd.mil/se/publications.htm)

e. Link risk mitigation efforts to past performance evaluation, contract management, contract type, special
provisions, metrics and award or incentive fees.

3. COMPETITION
a. Will full and open competition be provided? If not, provide an explanation why and the respective citation that
allows less than full and open competition. Address plans for competition for any follow-on requirements. Include a

discussion of the J & A status. If a multiple award ID/IQ is proposed does it address the intent to compete Task
Orders pursuant to Fair Opportunity provisions.

b. Is the nature and extent of market research included (e.g., results from industry day, DRFP, sources sought, RFI,
internet search, lesson learned from similar efforts, standard industry practices)?

4. SOCIO ECONOMIC CONSIDERATIONS
a. How will the acquisition support small business goals?

b. Has the ABILITY ONE program been considered to satisfy any of the requirements?

c. How will this acquisition support any other socio-economic programs?

d. Has subcontracting potential and goals and use of eSRS been include?

e. Is this a consolidated requirement? (If yes, DASA(P) approval is required for action $500M or more IAW AFARS
5107.170-3(a))

f. If this is a bundled requirement, include the analysis. Is it CICA bundling?* Does it follow the DoD Benefits
Analysis Guide book (whether bundled or consolidated)?

g. Has the SBA PCR concurred on the DD Form 2579, Small Business Coordination Record?

h. Has the Contracting Officer briefed the Director, Office of Small Business Programs on the proposed strategy?
The pre-brief must be conducted prior to the formal ASSP.

5. BUSINESS ARRANGEMENTS
a. How will the acquisition be funded?

i. Estimate dollar value and the basis for estimate, including the method of calculating escalation

ii. Address whether funding is available and the type of funds that will be used.

b. What is the proposed business arrangement (e.g., single or multiple awards; ID/IQ type arrangements) and
duration?

i. If an IDIQ type arrangement, have multiple awards been considered? If not has approval been obtained? The
ASA(ALT) is approval authority for single contract awards of $103M or more (with congressional notification
required for actions with the cited exception (iv) (public interest).

ii. If multiple awards are planned, does the strategy reflect a minimum number with a reservation to award
more or none (rather than an arbitrary ceiling)?

iii. If an IDIQ, is the guaranteed minimum specified?

iv. Is the use of a non-DoD contract proposed? If yes, has approval been obtained IAW AFARS 5117.7802? If
yes, does the interagency agreement for an assisted acquisition contain all the specific elements outlined in
OFPP Memorandum, dated June 6, 2008, Improving Management and Use of Interagency Acquisitions?

c. What is the length of the contract? (DoD Better Buying Power Initiative preference is 3 years and no more than 5
years). Is it appropriate? A strong business case must be presented for services contracts exceeding 5 years. If the

strategy proposes a contract term greater than 3-5 years, are opportunities for refreshment of competition (decision
points, on and off ramps) included?

d. Address contract type (see UAI PART 16 regarding requirement for D&F to Justify Contract Type, and D&F
Required for T&M) with a rationale for selection.

i. T&M contract types are discouraged. If the strategy calls for a T &M contract:

(a) Is the appropriate rationale included to justify its use? Can only be used when it is not possible to
estimate accurately extent or duration work or to anticipate costs at time of contract award.

(b) Do circumstances warrant its use? Explain. If T&M was used on the previous effort, include a breakout
of the dollar value/task orders that were awarded using T&M provisions.

(c) Are there plans for monitoring to ensure consistent and adequate oversight? Has a goal or target to
reduce use of T&M been considered?

(d) Has the appropriate D&F been executed, including a ceiling price and HCA approval if it exceeds 3 years?
(FAR 16.601(d)(i)

(e) If a commercial services/IDIQ contract and only T&M and labor hours allowed, has the appropriate D&F
been executed? (FAR 12.207 (c)(2))

ii. If the strategy calls for an award/ incentive fee contract:

(a) Are arrangements set up to reward effective outcomes?

(b) Are objective criteria used to the maximum extent?

(c) If criteria are subjective, has the HCA or PARC (if delegated) approved the use?

(d) Are award fee ratings, definitions and rollover IAW DPAP 4/24/07 memo?

(e) Is a history of award fee attainment on the prior procurements included? Is the plan to measure award
fee for this acquisition discussed?

e. If a cost-type contract is planned, is EVMS appropriate? If so are the appropriate solicitation and contract
provisions pursuant to DFARS 234.203 included? (See USD AT&L website:
http://www.acq.osd.mil/at/initiatives/factsheets)

f. Is this a commercial service as defined in FAR 2.101(b)?

i. If over $1 M, has the contracting officer documented in writing the determination that the commercial item
definition has been met for this acquisition? Does the determination adequately document the market research
and rationale supporting the conclusion?

ii. Identify the award procedures from FAR 12.207 that will be used for the selection (full and open, other than
full and open competition, fair opportunity)

iii. Per FAR 12.207(b)(2) does the D & F for this commercial service establish that the requirement has been
structured to maximize the use of firm fixed contracts in the future, for the same or similar procurements?

g. Address any waivers/deviation that will be required

h. Source selection process:

i. Does the strategy include the basis for award and major factors/sub-factors as well as a discussion of the
price/cost evaluation process? Are the factors/subfactors stated in relative order of importance? Are the
factors/subfactors described in sufficient detail to communicate the measures of merit that will be used to
determine how the proposal will be evaluated and ratings determined?

ii. Is past performance a major evaluation factor? If so, will CPARS be used? If past performance is not
evaluated, is rationale provided? (See FAR15.304 (c (3)(iii))

iii. Are adjectival ratings consistent with the DoD Source Selection Procedures Manual?

iv. Discuss appointment of the source selection authority (SSA)

v. Formal appointment?

vi. If SSA is not within the acquisition chain has HCA/PARC approval been obtained? (AFARS 5115.303(S-90)(b)

vii. Name of the SSA should not be disclosed in the strategy.

viii. Is contractor support being utilized? If so, has the appropriate determination and approval been obtained?
See FAR 37.204, AFARS 5137.204 and PARC/Policy Alert 08-46.

ix. If the acquisition is greater than $1B, Sections L&M and the source selection plan should be submitted with
the strategy for subsequent review by OSD.

(a) Are appropriate program oversight mechanisms included? Does the strategy discuss the existing or
planned contract management approach following award; appointment of COR; quality assurance
surveillance or written oversight plans and responsibilities, involvement of DCMA in surveillance and
tracking procedures or processes used to monitor contract performance?

(b) What is the method of insuring oversight? DPAP memorandum, dated July 14, 2008, requires that all
contracts for services (including T&M and LH), must include QASP to facilitate assessment of contractor
performance.

xi. If the acquisition is over $2,500, will a COR be appointed in accordance with USACE PIL 2012-06-R1. Discuss
COR training requirements.

j. Is a milestone timeline to award included? If the estimated value of the acquisition exceeds $1B include time for
OSD Review of the Acquisition Strategy and Pre-Award Peer Reviews of the solicitation, Final Proposal Revisions
and Prior to Award Decision.

6. MULTI-YEAR CONTRACTS
a. If this is a multi-year service contract, does it address plans for budgeting for termination liability

b. OMB Circular A-11 requires multi-year service contracts to be scored as operating leases. Does the strategy
address budget scorekeeping that will result from the use of the proposed contract?

7. LEASES Is a lease-purchase strategy required by OMB Circular A-94?

8. METRICS
a. Are cost, schedule, performance, small business and customer satisfaction metrics linked to the acquisition
outcome(s)?

b. Are performance measures meaningful? i.e., tied to key performance parameters in the Performance
Requirements Summary (PRS) and award fee plan (as appropriate).

*Under the CICA bundling concept, the General Accounting office reviews bundling challenges to determine whether the
Agency has a reasonable basis for its decision to combine requirements. When requirements are consolidated, the
Government can proceed to procure the consolidated requirements without violating CICA if it has adequate
justification. GAO has found that administrative convenience by itself does not justify bundling requirements. Rather,
economic savings as a result of the consolidation should be demonstrated as well.

W912GB-13-R-0008
Notice Type:
Solicitation
Welcome, Business Development Officer Accessibility
Note: There have been modifications to this notice. To view the most recent modification/amendment, click here
Complete View
Original Synopsis
Presolicitation
Nov 19, 2012
2:15 am
Changed
J an 04, 2013
9:17 am
Solicitation
Changed
J an 07, 2013
4:59 am
Changed
J an 31, 2013
7:28 am
Changed
Feb 01, 2013
7:35 am
Changed
Feb 15, 2013
8:10 am
Return To Opportunities List
Synopsis:
Added: Nov 19, 2012 2:15 am
The U.S. Government is soliciting interest for an indefinite delivery, indefinite
quantity (IDIQ) J ob Order Contract (J OC). The purpose of this indefinite
delivery, indefinite quantity (IDIQ) this J ob Order Contract (J OC) is to acquire
real property repair, maintenance, minor construction, and/or asbestos
abatement. Use of the J OC will provide the Government with a construction
product delivery method
that can accommodate quick and straight-forward projects, as well as some
small but complex projects, and can help minimize design effort and related
overhead expenditures, as well as handle compressed schedules. This work
includes, but is not limited to, incidental new minor construction, excavation,
plumbing, demolition, electrical, structural, mechanical, concrete work, force
protection, and environmental remediation work. Each project task ordered
awarded under a J ob Order Contract is normally comprised of a number of
pre-described and pre-packed tasks as described in each Task Order and the
Unit Price Book. The geographical area covered by this contract includes work
in Turkey in direct support of the U.S. Government, U.S. Department of
Defense Facilities, U.S. Forces, and other U.S. facilities located throughout
Turkey. Some work not to exceed 15% may be performed outside these
locations. The Government reserves the right to issue additional solicitations
and award additional contracts within the region covered by this solicitation.
a. PERFORMANCE PERIOD:
ALL FILES
Solicit
J an 04
Se
Amen
J an 07
Se
Amen
J an 31
Se
Amen
Feb 0
Se
Amen
Feb 15
Se
GENERAL
Notice Ty
Solicitation
Original P
November
Posted Da
J anuary 7
Response
Z--Turkey J ob Order Contract (J OC) FY2013
Solicitation Number: W912GB-13-R-0008
Agency: Department of the Army
Office: U.S. Army Corps of Engineers
Location: USACE District, Wiesbaden
Page 1of 3 Z--Turkey J ob Order Contract (J OC) FY2013 - W912GB-13-R-0008 (Archived) - Federal...
9/14/2013 https://www.fbo.gov/?s=opportunity&mode=form&id=134b68e117ae07957ca688b646879...
One base year and four (4) option periods not to exceed 365 days each.
b. MAXIMUM CONTRACT VALUE:
$30,000,000 for the life of contract with an estimated annual amount of
$6,000,000 and not-to-exceed $25,000,000 in any one period.
c. MINIMUM GUARANTEE:
The minimum guarantee amount is $5,000 for the base period and all option
periods.
d. TASK ORDER LIMITATIONS:
The minimum task order is $2,000 and the maximum task order is $1,000,000
(reference clause 52.216-19). On a case-by-case basis the Contracting
Officer has the authority to issue task orders that may exceed the maximum
task order limit, but not exceeding the amount of sustainment, restoration, and
modernization (SRM) authority delegated to the installation by the ACOM
and/or HQDA.
Any interested parties are encouraged to submit their company name, mailing
address and telephone, fax number and e-mail address of an English
speaking contact no later than 10 December 2012 to Contract Specialist:
Raquel Blankenhorn at, e-mail: Raquel.O.Blankenhorn@usace.army.mil,
telephone number: +49(0)611 816 2372 and Abraham Curry at, e-mail:
Abraham.Curry@usace.army.mil and Wendy Fields at, e-mail:
Wendy.D.Fields@usace.army.mil. You will be informed when and where you
may obtain a copy of the solicitation documents as well as details on any
potential site visit.
Solicitation will be issued on or about the week of 04 J anuary 2013.
Solicitation cancellation with no obligation to the Government- quote mark
Note to offerors: The Government reserves the right to cancel the solicitation,
either before or after the proposal opening with no obligation to the offeror by
the Government. quote mark
Type: Solicitation
Posted Date: J anuary 4, 2013
https://acquisition.army.mil/asfi/solicitation_view....
Description: See Solicitation
Type: Mod/Amendment
February 7
Original R
February 7
Archiving
Automatic
Archive D
February 2
Original S
N/A
Set Aside
N/A
Classifica
Z -- Mainte
alteration
NAICS Co
238 -- Spe
Contracto
Specialty T
Solicitation 1
Amendment 1
User Guide For Help: Federal Service Desk Accessibility
Type: Mod/Amendment
Type: Mod/Amendment
Posted Date: February 1, 2013
Type: Mod/Amendment
Posted Date: February 15, 2013
USACE District, Europe, CMR 410 BOX 7, APO, AE 09096
Place of Performance:
USACE District, Europe CMR 410 BOX 7, APO AE
09096
DE
Point of Contact(s):
RAQUEL BLANKENHORN, 061197442372

USACE District, Europe

Amendment 2
Amendment 3
Amendment 4
Fire Alarm Bench Stock - FA4889-12-Q-0016 (Archived) - Federal Business Opportunities: Opportunities
https://www.fbo.gov/index?s=opportunity&mode=form&id=240c0b604cbc23ccc1675de37f72b167&tab=core&_cview=0[3/28/2013 8:44:44 PM]
Sol i ci t at i on Number :
FA4889-12-Q-0016
Not i ce Type:
Welcome, Business Development Ofcer Accessibility User Guide Logout
Or i gi nal Synopsi s
Aug 02, 2012
12:00 pm
Synopsi s:
Added: Aug 02, 2012 12:00 pm
This is a combined synopsis/solicitation for commercial items prepared in
accordance with the format in Subpart 12.6, as supplemented with additional
information included within this notice. This announcement constitutes the only
solicitation; information is being requested and a written solicitation will not be
issued. The reference number for this procurement is FA4889-12-Q-0016 and is
issued as a Request for Quotation (RFQ). This solicitation document and
incorporated provisions and clauses are those in effect through the Federal
Acquisition Circular (FAC) 2005-60. The associated North American Industrial
Classication System (NAICS) code for this procurement is 334290 with a small
business size of 750 employees. This acquisition is a 100% Small Business Set-
Aside. All responsible contractors shall provide a quote for the following:
Description: Bench Stock for Fire Alarm Maintenance for 386th ECES/CEF at Ali
Al Salem AB, Kuwait. The following line items are applicable to this solicitation
CLIN 0001 Black box for manual pull station (red) Part # BB700 or equal QTY: 50
EA
CLIN 0002 Conventional Photoelectric smoke detector Part # MPD-65P or equal
QTY: 250 EA
CLIN 0003 Strobe Lights Part# FS-340R or equal QTY: 30 EA
CLIN 0004 Smoke Detector Base Part # MSB-65B or equal QTY: 300 EA
CLIN 0005 6 zone conventional re alarm panel Part # FA-300-6LW or equal
QTY: 5 EA
CLIN 0006 Wall Mount Horn/Strobes Part # FHS-340R or equal QTY: 30 EA
CLIN 0007 2 Zone Fire Panel Part # FA-102T or equal QTY: 5 EA
CLIN 0008 Seaboard Micro-4B Transmitters or equal QTY: 5 EA
Shipping and Delivery: Shipping costs (FOB Destination) shall be included in line
items and date of delivery shall be by NLT 30 days ARO. Place of delivery for
GENERAL I NFORMATI ON
Not i ce Type:
Post ed Dat e:
August 2, 2012
Response Dat e:
Aug 09, 2012 12:00 pm Eastern
Archi vi ng Pol i cy:
Automatic, 15 days after response
date
Archi ve Dat e:
August 24, 2012
Ori gi nal Set Asi de:
N/A
Set Asi de:
Total Small Business
Classication Code:
63 -- Alarm, signal & security detection
equipment
NAICS Code:
334 -- Computer and Electronic
Product Manufacturing/334290 -- Other
Communications Equipment
Manufacturing
Fire Alarm Bench Stock
Sol i c i t at i on Number : FA4889-12-Q-0016
Ofce: Air Combat Command
Location: HQ ACC
Not i c e Det ai l s Packages Interested Vendors List Print Link
acceptance is 386 ECONS APO, AE 09855 via USPS
The following FAR clauses and provisions are in this acquisition: FAR 52.212-1
Instructions to Offerors Commercial Items; Evaluation/Award: IAW FAR 52.212-2,
Evaluation-Commercial items applies to this acquisition. The Government will
award a single contract resulting from this solicitation to the responsive
responsible offeror whose quote conforms to the solicitation and will be most
advantageous to the government, price and other factors considered. The
following factors shall be used to evaluate quotes: Price and delivery.
The following clauses are hereby incorporated by reference. The full text of
provision and clauses are located at http://farsite.hill.af.mil/: FAR 52.204-7 Central
Contractor Registration, FAR 52.204-10 Reporting Executive Compensation and
First-Tier Subcontract Awards, FAR 52.209-6 Protecting the Governments Interest
When Subcontracting with Contractors Debarred, Suspended, or Proposed for
Debarment, FAR 52.209-10, Prohibition on Contracting with Inverted Domestic
Corporations, FAR 52.212-1, Instruction to Offerors - Commercial Items, FAR
52.212-4, Terms Contract and Conditions - Commercial Items, FAR 52.212-5,
Contract Terms and Conditions Required to Implement Statutes or Executive
Orders - Commercial Items, FAR 52.212-5 (Deviation), Class Deviation- 2009-
O0005 - Contract Terms and Conditions Required to Implement Statutes or
Executive Orders Commercial Items (MAY 2011), FAR 52.219-6, Notice of Total
Small Business Set-Aside, FAR 52.219-28, Post Award Small Business Program
Representation, FAR 52.222-3, Convict Labor, FAR 52.222-21 Prohibition of
Segregated Facilities, FAR 52.222-19, Child Labor-Cooperation with Authorities
and Remedies, FAR 52.222-26 Equal Opportunity (E.O. 11246), FAR 52.222-36
Afrmative Action for Handicapped Workers (29 U.S.C 793), FAR 52.222-50,
Combating Trafcking in Persons, FAR 52.223-18 Encouraging Contractor
Policies to Ban Text Messaging while Driving, FAR 52.225-13 Restrictions on
Certain Foreign Purchases, FAR 52.232-33 Payment by Electronic Funds Transfer
- Central Contractor Registration, FAR 52.233-1 Disputes, FAR 52.233-3, Protest
After Award, FAR 52.233-4, Applicable Law for Breach of Contract Claim, FAR
52.247-64 Preference for Privately Owned U.S. Flag Commercial Vessels (46
U.S.C. 1241) Alternate II, FAR 52.252-2 Clauses Incorporated by Reference,
DFARS 252.203-7000 Requirements Relating to Compensation of Former DoD
Ofcials, DFARS 252.203-7002 Requirement to Inform Employees of
Whistleblower Rights, DFARS 252.203-7005, Representation Relating to
Copensation of Former DoD Ofcials, DFARS 252.204-7004 Alternate A, Central
Contractor Registration, DFARS 252.204-7008 Export-Controlled Items, DFARS
252.212-7001 Contract Terms and conditions Required to Implement Statutes or
Executive Orders Applicable to Defense Acquisitions of Commercial Items,
DFARS 252.232-7003 Electronic Submission of Payment Requests and Receiving
Reports, DFARS 252.232-7010 Levies on Contract Payments, DFARS 252.247-
7023 Transportation of Supplies by Sea Alt III, 5352.201-9101 Ombudsman
follows: Lt Col Kristian S. Ellingsen,129 Andrews Street, Langley AFB, VA 23665,
Phone Number: 757-764-5372, Fax: 757-764-4400,E-mail:
kristian.ellingsen@langley.af.mil.
Quotations must be received by Aug 9, 2012 -12:00 PM Eastern Standard Time.
Quotations shall be submitted to: AFCENT A7K/Reachback Cell, Attn: A1C
Vanessa Callender, via e-mail to Vanessa.callender@arcent.army.mil
Contracting Ofce Address:
524 Shaw Dr Suite 235
Shaw AFB, South Carolina 29152-5004
Primary Point of Contact:
A1C Vanessa Callender
Contract Specialist
Pri mar y Poi nt of Cont act .:
Vanessa Callender
vanessa.callender@arcent.army.mil
Phone: 8038858822
130 Douglas St., Suite 210
Langley AFB, Virginia 23665-2791
vanessa.callender@arcent.army.mil
Phone: 803-885-8822
Postal Operations Service - FA4889-13-R-0005 - Federal Business Opportunities: Opportunities
https://www.fbo.gov/index?s=opportunity&mode=form&id=f1b5559d6a1c0d63999500f093f83f64&tab=core&_cview=1[3/29/2013 1:18:55 PM]
Sol i ci t at i on Number :
FA4889-13-R-0005
Not i ce Type:
Solicitation

Compl et e Vi ew
Original Synopsis
Presolicitation
Feb 14, 2013
10:08 am
Changed
Feb 14, 2013
10:54 am
Changed
Mar 20, 2013
8:18 pm
Solicitation
Changed
Mar 21, 2013
1:06 pm
Changed
Mar 25, 2013
3:18 pm
Changed
Mar 25, 2013
4:12 pm
Changed
Mar 26, 2013
3:14 pm
Synopsi s:
Added: Feb 14, 2013 10:08 am Modied: Mar 21, 2013 1:06 pm Track
Changes
Added: Mar 20, 2013 8:18 pm Modied: Mar 21, 2013 1:06 pm Track Changes
USAFCENT A7KQ intends to award a rm-xed price contract for Military Postal
Operations Services located within United States Central Command's Area of
Responsibility. The period of performance is from 1 June 2013 to 31 May 2018.
Solicitation number FA4889-13-R-0005 is issued as a Request for Offers. Award
will be made from this solicitation to the responsible offeror whose offer
conforming to the solicitation will be most advantageous to the Government, price
and other factors considered. The anticipated award date is 30 April 2013. This
effort will be conducted under FAR Parts 12 and 13 procedures. The North
American Industry Classication System (NAICS) code is 491110 with a small
business size of $7M.
The contractor shall provide postal support consistent of mail acceptance,
delivery, receipt, and dispatch in accordance with the attached Performance Work
Statement. The contractor will be responsible for the following major tasks:
(1) Process and distribution inducing parcel inspection, accountable mail, postal
claims, and postal supply and nance operations.
(2) Process all prograde, retrograde, redirect and accountable mail.
(3) Process all Priority and First Class mail (to include directory)
(4) Ensure all customers at the post ofce are Military Postal Service (MPS)
authorized, by verifying the customers' common access card (CAC)
Identication(ID) or memorandum of agreement( MOA) authorizing postal
privileges.
(5)Provide customer service ten hours daily, six days a week.
(6) Monitor host nation customs examinations and document the disposition of
conscated items.
(7) Prepare postal service forms involving notication and receipt of accountable
and non-accountable mail, and obtain required signatures from unit mail clerks.
(8) Secure an properly account for ALL mail by maintaining required
documentation and chain of custody receipts.
The locations of performance will be Transit Center Manas, Kyrgyzstan, Ali Al
Salem Air Base, Kuwait, and Al Dhafra Air Base, UAE.
The current incumbent is :
Alutiiq International Solutions, LLC
3201 C St Ste 700
ALL FI LES
Solicitation 1
Mar 20, 2013
Responses to Questions
Mar 25, 2013
Amendment 1
Mar 25, 2013
Responses to Questions #2
Mar 26, 2013
GENERAL I NFORMATI ON
Not i ce Type:
Solicitation
Ori gi nal Post ed Dat e:
February 14, 2013
Post ed Dat e:
March 26, 2013
Response Dat e:
Apr 04, 2013 11:00 am Eastern
Ori gi nal Response Dat e:
Apr 04, 2013 11:00 am
Archi vi ng Pol i cy:
Manual Archive
Ori gi nal Archi ve Dat e:
-
Archi ve Dat e:
-
Ori gi nal Set Asi de:
Competitive 8(a)
Set Asi de:
Competitive 8(a)
Classication Code:
R -- Professional, administrative, and
management support services
NAICS Code:
491 -- Postal Service/491110 -- Postal
Service
FA4889-13-R-0005_SOL...
Attachment__1-PWS_14...
Attachment__2-Past_P...
Attachment__3-USAFCE...
Attachment__4-_DD_25...
Responses_to_Questio...
FA4889-13-R-0005-000...
Responses_to_Questio...
Attachment__1-PWS_26...
DD_Form_254_-_2013_P...
Postal Operations Service
Sol i c i t at i on Number : FA4889-13-R-0005
Ofce: Air Combat Command
Location: HQ ACC
Not i c e Det ai l s Packages Interested Vendors List Print Link
Remove Me From Interested Vendors
Please consult the list of document viewers if you cannot open a le.
Type: Solicitation
Post ed Dat e: March 20, 2013
FA4889-13-R-0005_SOLICITATION.pdf (854.89 Kb)
Descri pt i on: Solicitation
Attachment__1-PWS_14_Mar_13.doc (1,305.00 Kb)
Descri pt i on: Attachment #1- Performance Work Statement
Attachment__2-Past_Performance_Questionnaire-_Postal... (67.00
Kb)
Descri pt i on: Attachment #2- Past Performance Questionnaire
Attachment__3-USAFCENTI33-302.pdf (275.13 Kb)
Descri pt i on: Attachment #3 - USAFCENTI 33-302
Attachment__4-_DD_254.pdf (235.70 Kb)
Descri pt i on: Attachment #4- DD 254
Responses_to_Questions_FA4889-13-R-0005.docx (13.86 Kb)
Descri pt i on: Responses to Questions
Type: Mod/Amendment
FA4889-13-R-0005-0001.pdf (625.65 Kb)
Descri pt i on: Amendment 0001 - Add DBA Insurance CLINS
Responses_to_Questions_FA4889-13-R-0005.docx (18.34 Kb)
Descri pt i on: Updated Respones to Questions
Attachment__1-PWS_26_Mar_13.doc (1,303.50 Kb)
Descri pt i on: Updated PWS dated 26 March 2013
DD_Form_254_-_2013_Postal_(A6).pdf (413.50 Kb)
Descri pt i on: Updated DD 254
Anchorage AK 99503-3917
Offers shall be submitted via email to Zella.Johnson@afcent.af.mil as well as
Flora.Ford@afcent.af.mil The closing date and time for submission of offers is
located in block #8 of the attached Standard Form 1449.
Questions, concerns, and all request will be in writing via email only to the Points
of Contacts(POCs) listed above no later than 1 April 2013 at 12:00 p.m. Eastern
Standard Time.

Sol i ci t at i on 1
Responses t o Quest i ons
Amendment 1
Responses t o Quest i ons #2
Pri mar y Poi nt of Cont act .:
Zella L. Johnson,
Contracting Ofcer
zella.johnson@afcent.af.mil
Phone: 803-895-9359
130 Douglas St., Suite 210
Langley AFB, Virginia 23665-2791
Pl ace of Perfor mance:
The locations will be Transit Center Manas, Kyrgyzstan, Ali Al Salem Air Base,
Kuwait, and Al Dhafra Air Base, UAE.
Non-U.S.
United States

Remove Me From Interested Vendors
Page 1 of 11 26 Mar 2012
Air Force Contracting Compliance Inspection Checklist

TIER ITEM # ITEM REFERENCE
RESULT
(Yes, No, N/A)
Contract File Content
General Contracting
1.1 Purchase Request/Funding
1 1.1.1 Is the funding aligned with bona fide need and does the funding
applied to each Contract Line Item Number (CLIN) properly
match the supplies or service being acquired?
DoD 7000.14R, Vol 3,
Ch 8, para 080303
AFFARS IG5304.7103
Y N N/A
2 1.1.2 If services, is the required determination by the Agency Head or
Designated Requirements Official certifying that none of the
functions to be performed are inherently governmental included in
the contract file? (For AFMC, this is accomplished by a
Requirements Approval Document.)
FAR 7.503(e)
DFARS 207.5
Y N N/A
1 1.1.3 Does the file contain documentation of the commitment of
sufficient funds prior to contract award?
FAR 32.702
DFARS 232.703
AFFARS MP5332.7
FAR 43.105
Y N N/A
1.2 Acquisition Planning
2 1.2.1 If above the simplified acquisition threshold (SAT), and no
exceptions apply, was an Acquisition Plan (AP), Life Cycle
Management Plan (LCMP), or Streamlined Acquisition Strategy
Summary (SASS) approved at the appropriate level and included
in the contract file?
FAR 7.103
DFARS 207.103
AFFARS 5307.1

Y N N/A
3 1.2.2 If required, is an Acquisition Strategy Panel (ASP) or waiver by
the ASP chairperson documented in the contract file?
AFFARS 5307.104-90 Y N N/A
2 1.2.3 If a significant change occurred after the acquisition strategy was
approved/signed, was the change approved by the appropriate
authority?
FAR 7.104(a)
AFFARS 5307.104(S-
90)(b)
Y N N/A
3 1.2.4 If purchasing requirements relating to energy conservation,
recovered materials, or environmentally preferable and energy
efficient products or services apply to this acquisition, are these
requirements met? (Green Procurement)
FAR 7.105(b)(17)
FAR 13.201(f)
FAR 23.4
FAR 23.7
Y N N/A
2 1.2.5 If severable services with performance crossing fiscal years, is the
period of performance less than 1 year?
FAR 32.703-3
DFARS 232.703-3(b)
FAR 37.106
Y N N/A`
2 1.2.6 If services above the SAT, is the acquisition performance based
IAW AFI 63-101 Chapter 4, or approved to be otherwise by the
Services Designated Official (SDO)?
FAR 37.6
AFFARS 5337.170-2
AFI 63-101
Y N N/A
1.3 Source List/Market Research
3 1.3.1 If consolidation, bundling, or tiered evaluations: Was appropriate
market research conducted and have required coordinations,
notifications, and determinations been accomplished?

FAR 7.107
FAR 10.001
DFARS 207.170-3
DFARS 210.001
Y N N/A
3 1.3.2 If supplies or services are on the AbilityOne Procurement List or
the Federal Prison Industries Schedule, did acquisition comply
with Government source priorities/requirements?

FAR 8.002
FAR 8.602
FAR 8.704
DFARS 208.602-70
Y N N/A
SEE PAGE 2 1.4.2
SET-ASIDES
Page 2 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
2 1.3.3 Was market research conducted and appropriately documented in
the file?
FAR 10.002
FAR 12.101(a)
FAR 12.202(a)
Y N N/A
1.4 Small Business Coordination
2 1.4.1 For acquisitions >$10,000, including awards against Federal
Supply Schedules, and unless excepted, is there a signed DD
Form 2579, Small Business Coordination Record in the file?
DFARS 219.201(d)(10)
AFFARS
5319.201(d)(10)(B)
Y N N/A
3 1.4.2 For acquisitions >$3,000 but not >$150,000*, was the acquisition
set aside for small business unless the Contracting Officer (CO)
made a determination there was no reasonable expectation of
obtaining at least two small business offers? (*Thresholds are
higher for some requirements see References)
FAR 19.502-2(a)
DFARS 219.502-2
Y N N/A
1.5 Synopsis of Proposed Contract Action
2 1.5.1 Was synopsis of proposed contract action accomplished as
required, and if not, was an exception documented in the contract
file?
FAR 5.101(a)
FAR 5.2
DFARS 205.205-70
(bundling)
Y N N/A
1.6 Other Than Full and Open Competition Authority
2 1.6.1 If Other than Full and Open Competition, does the contract file
include a Justification and Approval (J&A) which was approved
at the appropriate level?
FAR 6.303
FAR 6.304
DFARS 206.304
AFFARS 5306.304
FAR 8.405-6
FAR 11.105(a)
Y N N/A
3 1.6.2 Was the J&A, limited sources justification, or justification for an
exception to fair opportunity posted as required?
FAR 5.301(d)
FAR 6.305
FAR 8.405-6(a)
Y N N/A
2 1.6.3 If after J&A approval, an increase to scope occurred, was the
increase approved by the appropriate approving official (if
required)?
AFFARS MP5306.304
AFFARS IG5306
Y N N/A
1.7 Determinations/Approvals
1.7.1 Were applicable approvals or Determinations and Findings
(D&Fs) approved at the appropriate level and included in the
contract file? Examples include the following:
Specific to each
approval/D&F
Y N N/A
3 1.7.1.1 - Bundling Justification/Determination FAR 7.107 Y N N/A
1 1.7.1.2 - Award to Contractor on EPLS FAR 9.405(d)
DFARS 209.405
Y N N/A
2 1.7.1.3 - Organizational Conflict of Interest FAR 9.5 Y N N/A
2 1.7.1.4 - Liquidated Damages FAR 11.501 Y N N/A
3 1.7.1.5 - Commercial Item Determination (>$1M) DFARS 212.102 Y N N/A
3 1.7.1.6 - Type of Contract FAR 16.103(d) Y N N/A
3 1.7.1.7 - Indefinite-Quantity Multiple or Single Award

FAR 16.504(c)(1)(ii)(C) Y N N/A
Page 3 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
3 1.7.1.8 - Single Source Task or Delivery Order or Requirements
Contract >$103M,
FAR 16.503(b)(2)
FAR 16.504(c)(1)(ii)(D)
Y N N/A
2 1.7.1.9 - Time and Materials / Labor Hour Contract FAR 16.601(d) Y N N/A
3 1.7.1.10 - Multi-Year FAR 17.105-1 Y N N/A
2 1.7.1.11 - Options Quantity FAR 17.205 Y N N/A
2 1.7.1.12 - Options Exercise FAR 17.207 Y N N/A
3 1.7.1.13 - Berry Amendment DNAD DFARS 225.7002-2(b) Y N N/A
2 1.7.1.14 - Personal or Professional Services Contracts FAR 37.103
DFARS 237.104(b)(i)
Y N N/A
2 1.7.1.15 - Availability of Personnel A&AS FAR 37.204 Y N N/A
3 1.7.1.16 - Warranties DFARS 246.704 Y N N/A
3 1.7.1.17 - Other Determinations/Approvals Y N N/A
1.8 Solicitation/Contractual Document
2 1.8.1 Does the CLIN Structure meet the criteria for establishing the
Contract Line Items and are payment instructions included as
required?
DFARS 204.7103-1
DFARS PGI 204.71

Y N N/A
1.8.2 Are required provisions, clauses, and instructions included?
Examples of situations which may require specific clauses
include but are not limited to:
Specific to requirement Y N N/A
1 1.8.2.1 - Access to classified information FAR 4.404 Y N N/A
3 1.8.2.2 - Brand name or Equal FAR 11.107 Y N N/A
3 1.8.2.3 - Unique Identification (UID) DFARS 211.274 Y N N/A

2 1.8.2.4 - Evaluation and Establish Option (s) FAR 17.206
FAR 17.208
Y N N/A
2 1.8.2.5 - Undefinitized Contract Action DFARS 217.7406 Y N N/A
3 1.8.2.6 - Services subject to Service Contract Act FAR 22.1006 Y N N/A
1 1.8.2.7 - Conditioned on availability of funds FAR 32.705-1 Y N N/A
1 1.8.2.8 - Incrementally funded FAR 32.705-2(b)
DFARS 232.705-70
Y N N/A
3 1.8.2.9 - Government Furnished Property FAR 45.107 Y N N/A
3 1.8.2.10 - Construction Warranty FAR 46.710 (e) Y N N/A
3 1.8.3 If construction (Davis-Bacon) or services subject to Service
Contract Act, were wage determinations or wage increases
incorporated and applied properly?
FAR 22.404
FAR 22.1007
FAR 22.1012-1
Y N N/A
3 1.8.4 When acquiring commercial items, were commercial acquisition
provisions and clauses used as required?
FAR 12.301
FAR 12.302
Y N N/A
Page 4 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
3 1.8.5 If a sole source acquisition and expected to exceed the TINA
threshold, did the CO specify in the solicitation that cost or
pricing data are required. If cost or pricing data was not available,
did the CO request other data and rely on this information?

FAR 15.403-5

Y N N/A
1.9 Proposal/Representations & Certifications
3 1.9.1 Were late bids/offers handled properly and were late
bidders/offerors properly notified that their bids/offers will not be
considered?
FAR 14.304
FAR 15.208
Y N N/A
3 1.9.2 Does the Contractors Bid/Proposal contain unresolved issues or
contingencies?
FAR 14.404-2
FAR 14.405
FAR 15.306
Y N N/A
2 1.9.3 Does the file contain documentation that the required
Representations and Certifications were completed/obtained?
FAR 4.1201
FAR 12.301(b)(2)
FAR 15.204-5(a)
Y N N/A
1.10 Subcontracting Plan
3 1.10.1 If >650K, and a subcontracting plan is required, has a
subcontracting plan meeting the requirements of FAR 19.704 been
properly coordinated, approved, distributed and incorporated in
the contract? If the small disadvantaged business goal is <5%,
was the subcontracting goal approved at one level above the CO?
FAR 19.702
FAR 19.704
FAR 19.705
DFARS 219.705-4(d)
AFFARS 5319.705-4
Y N N/A
3 1.10.2 If >$650K and no subcontracting possibilities exist, has the CO
made a determination coordinated with the small business
specialist and approved one level above the CO?
FAR 19.705-2(c)
AFFARS 5319.705-2
Y N N/A

3 1.10.3 Does the file include documentation that the government is
receiving subcontracting reports (ISRs and SSRs) as required by
the subcontracting plan?

FAR 19.704
FAR 19.705-6
FAR 19.706
Y N N/A

1.11 Contractor Responsibility
1 1.11.1 Does the file include documentation supporting a determination of
responsibility or nonresponsibility, including queries of all
required systems (e.g., CCR (if no exception applies), EPLS (all
awards), and FAPIIS (if >SAT)?
FAR 4.1102 - (CCR)
FAR 9.103
FAR 9.104-1
FAR 9.104-6 - (FAPIIS)
FAR 9.105-2
FAR 9.404(c)(7) -
(EPLS)
Y N N/A
1.12 Undefinitized Contract Action & Unpriced Change Order
2 1.12.1 Is the Undefinitized Contract Action (UCA) approval document
signed at the appropriate level, and does it fully explain the need
to begin performance before definitization, including the adverse
impact on agency requirements resulting from delays in beginning
performance?
DFARS 217.7404-1
AFFARS 5317.7404-1
AFFARS 5317.7405
AFFARS MP5317.74
Y N N/A
3 1.12.2 If definitization was not accomplished within 180 days, does the
contract file include justification to include a revised definitization
milestone schedule?

DFARS 217.7404-3
AFFARS MP5317.74(3)
AFFARS MP5343.204-
70-3 (S-91)(b)
Y N N/A
Page 5 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
3 1.12.3 Does the Price Negotiation Memorandum for definitization
document the basis for the profit or fee negotiated when a
substantial portion of the required performance has been
completed?
DFARS 217.7404-6
AFFARS MP5317.74(4)
Y N N/A
1.13 Government Property
3 1.13.1 Prior to furnishing Government property to the contractor, did the
CO verify availability and ensure requirements of FAR 45.102
were addressed?
FAR 45.102
DFARS PGI 245.103-70
Y N N/A
3 1.13.2 If Government Property was furnished, did the CO include a list
in the solicitation? If a competitive acquisition, did the
solicitation address contractor responsibilities and evaluation
procedures?
FAR 45.201
FAR 45.202

Y N N/A
3 1.13.3 If there will be Contractor Acquired Property under a Cost type or
Time and Materials contract, has a CLIN for delivery of the
property been established?
FAR 45.402
DFARS PGI 245.402-
70(2)
Y N N/A
1.14 Cost/Pricing
2 1.14.1 Did the CO adequately document the principal elements of the
negotiated agreement (e.g., in a Price Negotiation Memorandum)
as required by FAR 15.406-3(a), with a statement that the price is
fair and reasonable, signed by the CO? Did the CO document the
extent certified cost or pricing data was relied upon and used in
negotiations, if applicable?
FAR 15.406-3
FAR 15.406-3(a)(6)
DFARS PGI 215.406-3

Y N N/A
3 1.14.2 If using commercial or simplified acquisition procedures, does the
contract file document specific steps taken to ensure a fair and
reasonable price was determined for the acquisition?
FAR 12.209
FAR 13.106-3
FAR 15.403-1(c)(3)
Y N N/A
3 1.14.3 When certified cost or pricing data is required and none of the
exceptions of FAR 15.403-1(b) apply, did the CO obtain a
properly executed Certificate of Current Cost or Pricing Data?
FAR 15.403-4
FAR 15.403-1(b)
FAR 15.406-2
Y N N/A
3 1.14.4 Did the CO include the Air Force Proposal Adequacy Checklist
(AFPAC) in draft and final RFPs and RFPs for UCAs, when
required?
AFFARS MP5315.4(3)(c) Y N N/A
2 1.14.5 If certified cost or pricing data was not required and acquisition
exceeds the TINA threshold, did the CO obtain and utilize data
other than certified cost or pricing data as necessary (e.g., price
analysis and/or cost analysis) to establish a fair and reasonable
price?
FAR 15.402
FAR 15.403-3
FAR 15.404-1
FAR 15.406-3(a)(5)
DFARS PGI 215.403-3
DFARS PGI 215.404-1
Y N N/A
2 1.14.6 If certified cost or pricing data was not required and acquisition
exceeds the TINA threshold, did the CO document the exception
used and the basis for not requiring certified cost or pricing data?
FAR 15.403-1
FAR 15.403-2

Y N N/A
3 1.14.7 If a competitive acquisition, is the COs determination of adequate
price competition documented (e.g., in a Price Competition
Memorandum)?

FAR 15.403-1(c)(1)
DFARS 215.403-1(c)(1)
Y N N/A
1.15 Security Requirements
1 1.15.1 If access to classified information is required, does the file contain
a DD Form 254, Contract Security Classification Specification, in
proper format and reviewed by appropriate security office
FAR 4.403(c)
AFI 31-601, Chapter 4
Y N N/A
Page 6 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
personnel? Is Block 16 on the form signed by the CO or
authorized CO rep?
1.16 Source Selection
3 1.16.1 Does the source selection or contract file contain a properly
completed Source Selection Plan and Source Selection Decision
Document? Were these documents approved at the appropriate
level?
DoD Source Selection
Procedures, Chapter 4
AFFARS MP5315.3,
Chapter 4
Y N N/A
3 1.16.2 Were all factors and significant subfactors for contract award and
their relative importance stated clearly in the solicitation?
FAR 15.304
AFFARS MP5315.3,
Chapter 4
Y N N/A
3 1.16.3 During source selections, after information was presented to the
SSA, were updates, revisions, or changes to the evaluation
information captured in subsequent documentation such that the
original record remained distinct?
AFFARS MP5315.3 para
1.4.2.2.4
Y N N/A
3 1.16.4 If required, was past performance data evaluated and documented
properly?
FAR 15.304
AFFARS MP5315.3,
Chapter 4
Y N N/A
2 1.16.5 Was the Source Selection Decision consistent with the
solicitations evaluation factors and subfactors?
FAR 13.106-2(a)(2)
FAR 15.305(a)
FAR 15.308
Y N N/A
2 1.16.6 Were unsuccessful offerors given timely notification and
debriefings?
FAR 15.503
FAR 15.505
FAR 15.506
Y N N/A
2 1.16.7 Has Source Selection Training been accomplished as required? MP5315.3,
Chapter 6, Para 6.4.1
Y N N/A
1.17 Legal Review
2 1.17.1 Has legal review been obtained and documented when required,
and have legal comments been satisfactorily resolved?
AFFARS 5301.602-
2(c)(i)

Y N N/A
1.18 Technical Review
2 1.18.1 Does the contract file include a detailed technical analysis from
the requesting activity when required?
FAR 15.404-1(e) Y N N/A
1.19 Clearance Review & Approval
2 1.19.1 Was the Clearance Process followed, and Clearance Approval(s)
obtained, as required?
DFARS PGI 201.170-4(f)
AFFARS 5301.90
AFFARS
MP5301.9001(b)
Y N N/A
1 1.19.2 Was the CO who executed the contract fully authorized to do so
within warrant limitations?
FAR 1.602 Y N N/A
1.20 Distribution
3 1.20.1 Was submission of a Contract Action Report (CAR) timely and
accurate?
FAR 4.604
DFARS 204.6
Y N N/A
3 1.20.2 If >$6.5M, was announcement of contract award executed via
1279 Report as required?
DFARS 205.303
AFFARS 5305.303
Y N N/A
Page 7 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
1.21 Protests Before/After Award
2 1.21.1 Did the CO follow proper procedures to resolve protests? FAR 33.1
DFARS 233.170
AFFARS 5333.1
Y N N/A
1.22 Quality Assurance
3 1.22.1 If services exceeded the SAT, did the CO make a decision that a
COR is required?
DFARS PGI 201.602-2
AFFARS MP5301.602-
2(d)
Y N N/A
2 1.22.2 Did the COR meet the minimum training requirements for COR
designation, including contract specific training, prior to contract
award?
AFFARS MP5301.602-
2(d) (1.4) and (4.1)
Y N N/A
2 1.22.3 Did the CO ensure a quality assurance surveillance plan (QASP)
was addressed and documented in the contract file for each
contract except for those awarded using simplified acquisition
procedures?
FAR 46.103
DFARS 246.401
Y N N/A
1.23 Contract Administration
3 1.23.1 If a modification was done, is the appropriate authority cited? FAR 43.301 &
FAR 53.243
Y N N/A
3 1.23.2 Were changes in the terms and conditions of a contract for
commercial items made by written agreement of the parties?
FAR 52.212-4(c) Y N N/A
3 1.23.3 If an option was exercised, did the CO provide written notice to
the contractor within the specified time period and in accordance
with the terms of the contract?
FAR 17.207 Y N N/A
3 1.23.4 Are award fee procedures properly documented and followed in
accordance with the award fee plan?
FAR 16.401(e)
DFARS 216.401
Y N N/A
3 1.23.5 If contract performance requires work on a Government
installation, did the contractor notify the CO in writing that the
required insurance had been obtained?
FAR 28.301
FAR 52.228-5
Y N N/A
3 1.23.6 Did the CO extend the contract per the extension of Services
Clause and not more than 6 months?
FAR 17.208(f)
FAR 37.111
Y N N/A
3 1.23.7 If termination, were cure and show cause and other related notices
issued timely and properly?
FAR 49.402-3
FAR 49.607
Y N N/A
3 1.23.8 If termination, were the procedures for termination for
convenience, termination for default, and termination for cause
followed?
FAR 49
AFFARS 5333.291(b)
AFFARS 5349
FAR 12.403
Y N N/A
1.24 Other Contract Actions
3 1.24.1 Blanket Purchase Agreement (BPA): Did the CO furnish the BPA
supplier with a list of individuals authorized to place orders either
by name, title, or position, along with his/her organization and the
dollar limitation for each order?

FAR 13.303-3(a)(4) Y N N/A
3 1.24.2 BPA: Did the CO review the BPA at least annually to ensure
authorized procedures are followed?

FAR 13.303-6 Y N N/A
Page 8 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
3 1.24.3 Federal Supply Schedule (FSS) Order: Were at least three
schedule contractors considered prior to placing an order in excess
of the micro-purchase threshold?
FAR 8.405-1(c)

Y N N/A
3 1.24.4 FSS Order: Was an order exceeding the Simplified Acquisition
Threshold placed against a FSS awarded on a competitive basis?
If not, was the contract file documented appropriately?
DFARS 208.405-70
FAR 8.405-6
Y N N/A
Research & Development
1.25 Assistance Instrument
3 1.25.1 Before using a grant or cooperative agreement, did the Grants
Officer make a positive judgment that an assistance instrument,
rather than a procurement contract, was the appropriate
instrument?
DoD Grant and Agreement
Regulations, DoD 3210.6
(DoDGARs) 22.205
Y N N/A
3 1.25.2 When a Grants Officer determined that a cooperative agreement
was the appropriate instrument, did the Grants Officer document
the nature of the substantial involvement that led to selection of a
cooperative agreement?
DoDGARS 22.215(a)(2) Y N N/A
3 1.25.3 Did the Grants Officer use merit-based, competitive procedures to
award grants and cooperative agreements: (1) In every case where
required by statute (e.g., for certain grants to institutions of higher
education) and (2) To the maximum extent practicable in all cases
where not required by statute?
DoDGARs 22.305(b) Y N N/A
2 1.25.4 Was notice of funding availability or Broad Agency
Announcement publicly disseminated via posting at the
Governmentwide site designated by the OMB (currently
http://www.Grants.gov)?
DoDGARs 22.315(a)(3)

Y N N/A
3 1.25.5 Are Technology Investments Agreement awarded only by
Agreements Officers?
DoDGARS 37.125 Y N N/A
1.26 Broad Agency Announcement (BAA)
3 1.26.1 Does the BAA, together with any supporting documents, (1)
Describe the agencys research interest; (2) Describe the criteria
for selecting the proposals, their relative importance, and the
method of evaluation; (3) Specify the period of time during which
proposals submitted in response to the BAA will be accepted; and
(4) Contain instructions for the preparation and submission of
proposals?
FAR 35.016(b) Y N N/A
3 1.26.2 Was the availability of the BAA publicized through the
Governmentwide point of entry (GPE), and published no less
frequently than annually?
FAR 35.016(c)

Y N N/A
3 1.26.3 Were proposals received as a result of the BAA evaluated in
accordance with evaluation criteria through a peer or scientific
review process?
FAR 35.016(d) Y N N/A
3 1.26.4 For the BAA, was technical, importance to agency programs, and
fund availability the primary basis for selecting proposals for
acceptance? Was cost realism and reasonableness also considered
to the extent appropriate?
FAR 35.016(e) Y N N/A
Operational -- Construction / Architect-Engineer

Page 9 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
1.27 Construction
3 1.27.1 Were payment and performance bond requirements included in
the solicitation and was adequate security obtained? If not, was
documentation present IAW FAR 28.102-1?
FAR 28.102
FAR 28.201

Y N N/A
3 1.27.2 If the solicitation contains one or more items subject to statutory
cost limitations, were offerors informed as to the applicability of
cost limitations for each affected item in a separate schedule?
Y N N/A FAR 36.205 (b)
3 1.27.3 Was an independent Government estimate of construction costs
prepared and did the solicitation contain the magnitude of the
requirement?
FAR 36.203
FAR 36.204
Y N N/A
DFARS 236.204
3 1.27.4 Are liquidated damages included on projects estimated at over
$650K, except cost-plus-fixed-fee contracts? If so, did the file
contain documentation for how liquidated damages were
determined?
FAR 11.502
FAR 36.206
Y N N/A
DFARS 211.503
3 1.27.5 Did the CO make appropriate arrangements for prospective
offerors to inspect the work site and document the visit?
FAR 36.210 Y N N/A
3 1.27.6 Was final inspection and acceptance of the construction made by
the Government?
FAR 46.312 Y N N/A
FAR 52.246-12
3 1.27.7 Was a release of claims and all other final documentation obtained
from the contractor and civil engineer prior to final payment?
FAR 32.111(a)(5) Y N N/A
FAR 52.232-5(h)
1.28 Architect-Engineer (A&E) Services
2 1.28.1 Is the 6% statutory limitation for A&E design services observed? Y N N/A FAR 15.404-4(c)(4)(i)(B)
3 1.28.2 Was approval from the head of the agency received for any
construction contract awarded to a firm (or its subsidiaries or
affiliates) that designed the project?

FAR 36.209

Y N N/A
3 1.28.3 Did the evaluation board prepare a selection report and
recommend, in order of preference, at least three firms that were
considered to be the most highly qualified?
Y N N/A FAR 36.602-3
3 1.28.4 Was an independent government estimate of the cost of
A&E services submitted to the CO before commencing
negotiations for each action expected to exceed the SAT?
Y N N/A FAR 36.605
1.29 Ratifications
3 1.29.1 Are ratifications processed IAW AFFARS MP5301.602-3? Y N N/A AFFARS 5301.602-3
Contracting Office
General Management
2.1 Self-Inspection Program
3 2.1.1 Does the contracting office have a documented self-inspection
program, which includes a process for resolving findings, reviews
to close findings, and integrating findings into a unit training
program?

AFFARS MP5301.601-91
AFI 64-102 para 3.4.9 -
(Operational)
AFI 90-201 para 2.4
Y N N/A
Page 10 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
2.2 Contracting Officer Appointments/Warrants
3 2.2.1 Are the selection, appointment, termination, and record
maintenance of contracting officer warrants, including
contingency warrants, accomplished properly?
FAR 1.603
AFFARS 5301.603
AFFARS MP5301.603
Y N N/A
2.3 Customer Education
3 2.3.1 Has the contracting office established and maintained a customer
education program to explain contracting procedures, help with
developing requisitions for requirements, develop and maintain
open lines of communication, and stress the importance of
meaningful partnerships with customers and contractors?
AFI 64-102 para 3.4.3 &
3.4.8

Y N N/A
2.4 Training Programs
3 2.4.1 Is a formal training program established and implemented for
civilians, military, interns, and Copper Caps?
AFI 36-401 para 1.10.8
AFI 36-602 para 3.8 -
(Copper Caps)
AFI 64-102 para 3.4.5 -
(Operational)
Y N N/A
3 2.4.2 Has the contracting office established an On-The-Job-Training
(OJT) program which allows personnel to attain knowledge and
skill qualifications required to perform duty in their specialty?
AFI 36-2201 para 6.1
AFI 64-102, para 3.6.2,
3.9.7, 3.9.8
Y N N/A
2.5 Continuous Learning
3 2.5.1 Are all acquisition coded contracting personnel afforded
continuous learning opportunities, and are the required employees
achieving the mandatory 80 continuous learning points (CLP)
within two years?
DODI 5000.66 para
E2.2.8.1
AFI 36-401 para 5.7
Y N N/A
2.6 Contingency Support
2 2.6.1 Does the contracting office develop and maintain Contracting
Incident Response Kits (CIRKs) and deployment kits for use
during contingencies, as required?
AFFARS Appendix CC-
302
AFFARS MPCC-301(c)(1)
Y N N/A
2 2.6.2

Does the contracting unit commander ensure mandatory
contingency specific training is accomplished and documented?
(Including contracting activity training of non-contracting
personnel designated to support contingency plans on the proper
use of ordering instruments, SF 44, GPC, and other decentralized
procedures authorized for use)

AFI 64-102 para 3.7.1

Y N N/A
2 2.6.3 Are the Unit Type Codes (UTCs) status being monitored and
reported in ART? Is a mobility roster being maintained for all
tasked UTCs?

AFI 64-102 para 3.6.9 and
3.7.4
Y N N/A
2.7 Contract Closeout and Disposal of Contract Files
3 2.7.1 For contracts administered by the contracting office, are contract
closeouts accomplished?
FAR 4.804
DFARS PGI 204.8
Y N N/A
3 2.7.2 Does the contracting office follow the prescribed procedures for
the handling, storing, and disposing of contract files?
FAR 4.805
DFARS 204.805
Y N N/A
2.8 Interagency Acquisitions
3 2.8.1 Are required contracting office responsibilities completed for Y N N/A AFI65-116 para 3.5
Page 11 of 11 26 Mar 2012
RESULT
(Yes, No, N/A)
Military Interdepartmental Purchase Requests (MIPRs) that will
result in a contract action?
Other Required Evaluations
2.9 Government Purchase Card (GPC) Program
3 2.9.1 Has the Contracting Squadron Commander/Chief of Contracting
Office designated a primary and at least one alternate Agency/
Organization Program Coordinator (A/OPC) to manage the
installation level GPC Program? Also, are the primary and
alternate A/OPCs in an allowable job series and APDP Level I
certified in Contracting?
AFI 64-117 paras 2.3.2.1
and 2.3.3.1
Y N N/A
3 2.9.2 Is the GPC program managed with effective internal controls to
ensure the appropriate management, operation, and oversight of
the local GPC program?
AFI 64-117 para 2.3.1 Y N N/A
3 2.9.3 Do all card holders not in contracting organizations possess
written authority from the Contracting Squadron
Commander/Chief of Contracting Office to make purchases
and/or place orders?
AFI 64-117 para 2.3.2.2 Y N N/A
3 2.9.4 Is the A/OPC performing and documenting physical surveillance
on each managing account, as well as a random sample of 25% of
cardholders assigned to each managing account to include
corrective actions taken?
AFI 64-117 para 5.1.2.1 Y N N/A
3 2.9.5 Is the A/OPC using the Purchase Card On-Line System (PCOLS)
as an electronic tool to manage its GPC Program to perform Level
IV reviews?
AFI 64-117 para 5.1.2.6 Y N N/A
2.10 Oversight of QA Program
3 2.10.1 Has a Quality Assurance Program Coordinator (QAPC) been
appointed and trained, and is the QAPC performing the roles and
responsibilities outlined in AFFARS MP5346.103?
AFFARS MP5346.103 Y N N/A
2.11 Plans for Continuation of Contractor Services
3 2.11.1 For contracts which include Government-determined essential
contractor services, do the contracts contain a written mission
essential contractor services plan? Do COs consult with a
functional manager to assess the sufficiency of a plan prior to
incorporation in the contract?
DFARS 237.7602 Y N N/A

Notes:
1. References are not all inclusive. Other guidance may be applicable to the Item.
2. Inspector General personnel may identify compliance deficiencies in addition to Items listed in the checklist.
3. If dollar thresholds listed in the checklist become incorrect due to changes in policy, the current thresholds rule.

Tier Basis per AFI 90-201:
Tier 1: Non-compliance puts Airmen, commanders, or the USAF at high risk of mission or program failure, injury, legal jeopardy or
waste.
Tier 2: Non-compliance limits mission or program effectiveness or efficiency and adds significant risk of mission or program failure,
injury, legal jeopardy or waste.
Tier 3: Non-compliance limits mission or program effectiveness or efficiency but does not create significant risk of mission or
program failure, injury, legal jeopardy or waste.
TABLE of CONTENTS
Exhibit 10 MG Masiello Memo SB 20121213_SAT-Policy-Memo Page 2
Exhibit 10A AQCMemo_FAR19_11Jul13t ( MG Masiello ) Page 6
Exhibit 25 USD(ATL) Signed Memo to Workforce Page 7
BBP 2 0 (13 Nov 12) wATTCHS (KENDALL)
Exhibit 26 USA003951-12_OSBP_D DPAP IncreasingOpport Page 15
for Sm Bus Memo ( GINMAN GRUDGER)
Exhibit 27 Executive Office of the President June 6, 2012 MEMO Page 17
(JORDAN - MILLS)
MG Masiello Memo SB 20121213_SAT-Policy-Memo
2
LATVIAN CONNECTION LLC 1 EXHIBIT 10 MEMOS
ACQUJSmON,
TECHNOLOGY
AND LOGISTICS
OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON, DC 20301-3000
J ~ 1 :vlL
MEMORANDUM FOR COMMANDER, UNITED STATES SPECIAL OPERATIONS
COMMAND (ATTN: ACQUISITION EXECUTIVE)
COMMANDER, UNITED STATES TRANSPORTATION
COMMAND (ATTN: ACQUISITION EXECUTIVE)
DEPUTY ASSISTANT SECRETARY OF THE ARMY
(PROCUREMENT), DASA(P)
DEPUTY ASSISTANT SECRETARY OF THE NAVY
(ACQUISITION & LOGISTICS MANAGEMENT),
DASN(A&LM)
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
(CONTRACTING), SAF/AQC
DIRECTORS, DEFENSE AGENCIES
DIRECTORS, DOD FIELD ACTIVITIES
SUBJECT: Increasing Opportunities for Small Businesses through Small Business Set-
asides under the Simplified Acquisition Threshold
Small businesses play a vital role in their contribution to the defense industrial
base and the Department of Defense (DoD) is committed to increasing contracting
opportunities for these entities. The purpose of this memorandum is to remind you of
longstanding statutory requirements to set aside contracts for small businesses where the
contract value is equal to or less than the simplified acquisition threshold (SAT) unless
the "rule of two" is not met, and request that you redouble efforts to ensure these
requirements are followed consistently. Set-aside requirements help to maximize small
business contracting opportunities in the Federal marketplace. Greater management
attention to the use of set-asides below the SAT can help the department meet our small
business goals.
Section 15U) of the Small Business Act and the Federal Acquisition Regulation
(FAR) at FAR 13.003(b)(l), require contracting officers to set aside contracts above the
$3,000 micro-purchase threshold and below the $150,000 SAT for small business, unless
the contracting officer determines there is not a reasonable expectation of obtaining offers
from two or more responsible small business concerns that are competitive in terms of
market prices, quality and delivery. This is known as the "rule of two." FAR 19.502-
2(a) requires the contracting officer to document the file if a set-aside is not used in
connection with the award of a contract in this dollar range.
As a department, DoD has awarded 71% of contracts with dollar values equal to or
less than the SAT to small business from 1 October 12 through 21 June 12, which
accounted for 68% of total dollars eligible for small business. Also, only 47% of actions
and 52% of the dollars awarded to small business resulted from small business set-asides.
3
I
This indicates that the "rule of two" is not used to the maximum extent practicable under
SAT as required by statute.
To help DoD increase its contracting with small businesses, please take the
following steps in conjunction with every new contract award that has an anticipated
dollar value exceeding $3,000 but not exceeding the SAT:
Automatically reserve the work for small business concerns and set aside the
contract for small business, unless there is not a reasonable expectation of
obtaining offers from two or more responsible small business concerns that are
competitive in terms of market prices, quality, and delivery.
If the work is not set aside for small business, document in the contract file the
reason for acquiring the service or product on an unrestricted basis. Such
documentation shall be completed using the DD 2579, which must be coordinated
with the contracting activity small business specialist in accordance with Defense
Federal Acquisition Regulation Supplement Subpart 219.201(d)(10).
Please ensure appropriate internal controls are used to monitor compliance with
the steps described above. For example, contracting activities may decide to sample
contract files to review market research and other documents explaining why your
respective component or agency purchased the product or service on an unrestricted
basis.
Your commitment and efforts to ensure that DoD meets and hopefully exceeds its
small business contracting goals are greatly appreciated.
The staff points of contact are Ms. Cassandra R. Freeman, 703-693-7062 or
cassandra.freeman@osd.mil, for procurement policy; and Ms. Wendy Despres, 571-372-
6310 or wendy.despres@osd.mil, for small business policy.
cc:
Directors, DoD Office of Small Business
Programs
2
~ P
Andre J. Gudger, Director
Office of Small Business Programs
4
Small Source Right Value Big Performance
SB Awards Under SAT (contd)
Other Than SB Under the SAT
Source: FPDS-NG Small Business Achievement Report a/o 22 Oct 2012
Total potential benefit to SBs ~0.25% -- but ITS THE LAW
$225.88
42.43%
$59.49
36.92%
$36.37
25.44%
$30.71
25.35%
$29.79
38.46%
$11.17
26.94%
$16.63
30.67%
$11.24
28.90%
$9.31
30.82%
$3.16
20.83%
$2.97
37.72%
$5.79
29.48%
$3.98
63.81%
$0.19
32.11%
$200.18
37.86%
$43.19
32.41%
$30.95
23.14%
$26.66
24.18%
$21.08
33.19%
$12.87
28.28
$10.48
24.97%
$9.39
28.91%
$6.50
25.39
$5.37
34.29%
$4.41
54.62%
$3.98
20.83%
$2.02
48.72%
$0.22
46.64%
$0
$50
$100
$150
$200
$250
O
T
S
B

$

(
M
i
l
l
i
o
n
s
)

FY11 FY12
$ = Obligations under SAT going to OTSB
% = Total obligations under SAT going OTSB
5
Exhibit 10A AQCMemo_FAR19_11Jul13t ( MG Masiello )
6
Exhibit 25 USD(ATL) Signed Memo to Workforce BBP 2 0 (13 Nov 12) wATTCHS (KENDALL)
7
8

BETTER BUYING POWER 2.0 INITIATIVES DESCRIPTIONS

Achieve Affordable Programs

Mandate affordability as a requirement: The initiative to provide affordability caps for
unit production cost and sustainment costs was put in place two years ago and will continue.
Affordability caps force prioritization of requirements, enabling cost trades and ensuring that
programs which are currently too expensive in future budgets to be affordable from
continuing.

Institute a system of investment planning to derive affordability caps: This has been
implemented on a case-by-case basis as programs have entered the acquisition process. This
initiative will make long-term capital investment analysis covering product lifecycles of 30
or 40 years a standard part of the acquisition process under DoDD 5000.02. Service and
component resource managers and leadership will conduct portfolio analysis to limit future
investment limitations on a capital investment portfolio of products, e.g., ground combat
vehicles or surface combatants.

Enforce affordability caps: After two years of imposing affordability caps, we are now at
the point where this initiative will have to be enforced if it is going to be successful at
preventing spending on products that will be too expensive to be procured in meaningful
quantities. This task falls to senior leadership, including the DAE, SAEs, and CAEs, who
must work with the Service and Component leadership to halt programs that will not be
within the established cap unless tradeoffs to reduce cost are implemented. Unless this is
done, the Department will continue to spend billions on development and initial production
of programs that are ultimately canceled or curtailed.

Control Costs Throughout the Product Lifecycle

Implement should cost based management: Should cost, the concept that our managers
should set cost targets below independent cost estimates and manage with the intent to
achieve them, is well on its way to becoming part of the DoD culture. This effort is
fundamental to cost control and deserves continued emphasis. Proactively controlling cost is
everyones business. Savings will continue to be applied as close to their origin as Service
and Department priorities allow. Successful should cost management should be recognized
and rewarded by the chain of command and by personnel systems.

Eliminate redundancy within Warfighter portfolios: Duplicate or redundant efforts occur
at the program level due to constraints in the component requirements process. The
Department will identify synergies for existing and planned programs across the Services
during MDD reviews, Program Budget Reviews (PB build), and across all levels of the buy.

Institute a system to measure the cost performance of programs and institutions and to
assess the effectiveness of acquisition policies: The Department will become more data-
driven in assessing its own and industrys performance at achieving improved productivity.
The Department will develop metrics for the programs and institutions (government and non-
government) within the acquisition system and assess performance to better understand best
practices in industry and government. The first set of data derived from this initiative will be
published in early 2013.

9

Build stronger partnerships with the requirements community to control costs: This is
an area of continuing emphasis in which good progress has been made, but more needs to be
done. More than anything else, requirements drive costs. The requirements and acquisition
communities must cooperate more closely and continuously to ensure that requirements are
technically achievable and affordable so that operational and Service leadership can make
informed decisions about the costs associated with varying levels of performance. For Major
Programs, the DAE is working closely with the VCJ CS and the J ROC, and each Service has
taken steps in the right direction. However, more needs to be done to ensure well informed
requirements decisions that balance cost and performance throughout product lifecycles.

Increase the incorporation of defense exportability features in initial designs: Foreign
sales of and cooperation on US defense products provide a range of win-win benefits:
reduced costs, improved US competitiveness, stronger ties to friends and allies, and
improved interoperability. Rather than waiting until products are fully designed and in
production for US use, we should assess and incorporate exportability design features and
any needed anti-tamper features early in the acquisition process. This will reduce the cost of
exportable versions of US systems and ensure that they are available for sale sooner,
benefiting all concerned.

Incentivize Productivity & Innovation in Industry and Government

Align profitability more tightly with Department goals: The Department will reassess
how it provides incentives to industry so that they are as cost effective as possible at
achieving the Departments goals. The desire is to reward successful contractor performance
that has high value to the Department and which might not be achieved without the
motivation provided by the incentives. Both basic contract types and special incentive fee
structures will be reassessed over the next few months to see if a better alignment can be
accomplished.

Employ appropriate contract types: The original BBP emphasized the use of Fixed Price
Incentive (FPI) contracts. In BBP 2.0, we are refining our guidance to emphasize the use of
the appropriate contract vehicle for the product or services being acquired. The DFAR and
FAR provide for a range of contract types for a reason: one size does not fit all. This
initiative will focus on improving the training of management and contracting personnel in
the appropriate use of all contract types.

Increase use of Fixed Price Incentive contracts in Low Rate Initial Production: One
phase of acquisition where FPI contracts are particularly appropriate is during the early
stages of transition from development to production, low rate initial production (LRIP),
particularly the earlier lots of LRIP. We will continue to emphasize the use of FPI during
this phase.

Better define value in best value competitions: In competitive bidding processes,
industry tends to default to threshold performance levels because they are less costly and
source selections seldom give predictable credit for performance above threshold. In
addition, when the Department buys non-developmental items (NDI) or near-NDI products,
it often must select among products with varying levels of performance and with inherent
cost differentials. The Department needs to improve its ability to define the value to the
Department of performance that is above minimum levels so that it can make appropriate
source selections and so that industry can bid intelligently. This will spur innovation by
10

providing a predictable basis by which companies can bid enhanced performance with the
knowledge that any increased costs are within an acceptable range.

When LPTA is used, define Technically Acceptable to ensure needed quality: Industry
has expressed concerns about the use of Lowest Price, Technically Acceptable (LPTA)
selection criteria that essentially default to the lowest price bidder, independent of quality.
Where LPTA is used, the Department needs to define TA appropriately to ensure adequate
quality.

Institute a superior supplier incentive program: This is an item from BBP 1.0 that has
not been implemented. The Navy is currently developing a pilot program for DoD, with the
intent to recognize and reward contractors who demonstrate superior performance by
focusing on cost, schedule, performance, quality, and responsiveness. The program will be
initiated in the next few months.

Increase effective use of Performance-Based Logistics: There is sufficient data on the
effectiveness of PBL at reducing cost and improving support performance to conclude that if
it is effectively implemented and managed, PBL yields significant benefits. Key activities
include increasing the knowledge base of PBL through standard processes, tools, and training

Reduce backlog of DCAA Audits without compromising effectiveness: The Department
has a significant backlog in both closeout and pre-award audits. DCAA, with the assistance
DCMA and DPAP, is increasing audit resources and developing a risk-based process for
reducing the audit backlog. We expect to make major gains in reducing audit-associated
delays in both contract closeouts and pre-award audits in 2013.

Expand programs to leverage industrys IR&D: This is an initiative that began under
BBP 1.0 and will continue under BBP 2.0. The overall effort requires continued leadership
support to keep the momentum going and preserve the progress made over the past year.

Eliminate Unproductive Processes and Bureaucracy

Reduce frequency of OSD-level reviews: This continues the initiative to lower the
frequency of OSD-level program reviews to those necessary to support major investment
decisions by the USD(AT&L), to respond to poor program performance, or to assess early
indications of problems with execution.

Re-emphasize AE, PEO, and PM responsibility and accountability: Over time the
Department has moved away from the clean lines of responsibility and accountability created
under Goldwater Nichols. This initiative reinforces the roles of the acquisition chain of
command, in the Services and in the Department.

Eliminate requirements imposed on industry where costs outweigh benefits: This will
continue the initiative to identify non-value added processes that the Department may be
imposing on industry. The intent is to work with industry to collect data that will enable the
Department to identify requirements that can be reduced or eliminated to reduce cost without
adversely affecting performance.

Reduce cycle times while ensuring sound investment decisions: This initiative will assess
the root causes for long product cycle times, particularly long development cycles, with the
11

goal of significantly reducing the amount of time, and therefore cost, it takes to bring a
product from concept to fielding. A full range of factors oversight activities, funding
stability, contracting lead time, requirements processes, technical complexity, use of risk
reduction activities, and testing requirements will be considered as possible contributing
factors.

Promote Effective Competition

Emphasizing competition strategies and creating and maintaining competitive
environments: This initiative continues the effort to stress creating and maintaining a
competitive environment that provides the motivation to control and reduce cost. The
concept includes a full range of mechanisms that program managers should consider and
incorporate in acquisition strategies and in activities conducted outside the program itself.

Enforce open system architectures and effectively manage technical data rights: This
item is continued from BBP 1.0 and will focus on improving the Departments early planning
for open architectures and the successful execution of the plan to provide for open
architectures and modular systems. This will include the development of a business model
and associated intellectual property strategy (data rights planning) that can be implemented
over the lifecycle of the product, starting while competition still exists.

Increase small business roles and opportunities: Small businesses, as both prime
contractors to the Department and sub-contractors within the supply chain, are effective
sources of innovation and reduced cost. The Department will continue its emphasis on
improving small business opportunities.

Use the Technology Development phase for true risk reduction: The data on a number of
programs has demonstrated that Technology Demonstration (TD) phase competitive
prototyping is often not effective in reducing the risk associated with the products being
developed in the programs EMD phase. Proof of concept demonstrations that purport to
provide Technology Readiness Level 6 maturity, but which do not have direct traceability to
the proposed product design, are being used to win EMD programs instead of to reduce
actual risk. This initiative will improve the Departments ability to ensure that TD phase
activities reduce the actual risk associated with the product to be developed.

Improve Tradecraft in Acquisition of Services

The Department will continue and expand upon the initiatives already begun in this area.
Contracting for Services is one of the areas which we believe has the greatest potential for cost
reduction and improved efficiencies.

Assign senior managers for acquisition of services: This initiative was completed under
BBP 1.0; however, the Department will continue to emphasize the role of these senior
managers in the Military Departments and the Components and assess their effectiveness in
improving the acquisition of services.

Adopt uniform services market segmentation: The Department has issued a directive
detailing implementation guidance to standardize service taxonomy into six categories. We
will focus on the market segments with the greatest potential to reduce costs, and best
practices will be identified and expanded in all of the categories.
12

Improve requirements definition; prevent requirements creep: The Department will
continue this initiative. We have developed tools to assist users in writing Performance
Work Statements, Quality Assurance Surveillance Plans, and Performance Requirements
Summaries, and we will increase the training of cross-functional teams involved in
formulating requirements for service contracts.

Increase use of market research: This BBP 1.0 initiative requires additional work. We are
establishing a market research portal to enhance market research and facilitate small business
opportunities.

Increase small business participation: A number of steps in this area have been
implemented; however, we believe that the increased use of small businesses in service
contracting can be a source of additional cost saving and we will continue to emphasize the
participation of small businesses in this area.

Strengthen contract management outside the normal acquisition chain installations,
etc.: A significant amount of service contracting takes place outside of acquisition activities
such as research and development or product support. For example, installations of all types
contract for a range of services in various categories. More proactive management of these
contracted activities is expected to yield additional savings.

Expand use of requirements review boards and tripwires: This initiative will expand on
the use of specific best practices in service contract management that have been identified in
some commands.

Improve the Professionalism of the Total Acquisition Workforce

This new category emphasizes the most important single factor in the performance of the
Defense Acquisition System: the capability of the professionals in our workforce, particularly
the key leaders who implement the system and develop the people who will follow them. The
total acquisition workforce includes program management, engineering, contracting, and product
support disciplines engaged in a wide range of activities throughout the product lifecycle.

Establish higher standards for key leadership positions; establish stronger professional
qualification requirements for all acquisition specialties: Our key leaders must have the
required qualifications, not just certification, for the positions they hold this includes the
appropriate amount of relevant experience, education, and training. Current qualification
standards do not emphasize the hands-on experience necessary to become truly proficient
enough to take on the responsibilities associated with being a key acquisition leader. The
Department has many highly qualified acquisition leaders, but the bench is not deep enough
and there is significant room for improvement. Pilot programs have been initiated to develop
appropriate requirements for qualification for key leader positions.

Increase the recognition of excellence in acquisition management: Managing a major
program or a multi-billion dollar logistics or other service contract is a high level of
responsibility that demands special ability that should be recognized. While the Department
does this to a point, this initiative recognizes the need to raise the recognition and prestige of
the acquisition workforce at all levels within the Department.

13

Continue to increase the cost consciousness of the acquisition workforce change the
culture: Under BBP 1.0 we made significant strides in this direction, but there is still work
to be done and this area will require continuous attention. Perverse incentives to spend the
budget, such as obligation rate criteria and leadership emphasis on getting on contract instead
of getting the best business deal, need to be countered. There is good recognition in the
Department that cost matters a great deal now that budgets have stopped growing, but this is
an area in which we must continue to raise the consciousness of the workforce if we are to
permanently change the Departments culture.

14
Exhibit 26 USA003951-12_OSBP_D DPAP IncreasingOpport for Sm Bus Memo ( GINMAN GRUDGER)
15
Exhibit 26 USA003951-12_OSBP_D DPAP IncreasingOpport for Sm Bus Memo ( GINMAN GRUDGER)
16

EXECUTI VE OFFI CE OF THE PRESI DENT
OFFI CE OF MANAGEMENT AND BUDGET
WASHI NGTON, D. C. 20503

June 6, 2012
MEMORANDUM FOR DEPUTY SECRETARIES
CHIEF ACQUISITION OFFICERS
SENIOR PROCUREMENT EXECUTIVES
AGENCY SMALL BUSINESS DIRECTORS
FROM: Joseph G. Jordan
Administrator for Federal Procurement Policy
Office of Management and Budget
Karen G. Mills
Administrator
Small Business Administration

SUBJECT: Follow-up: April 25, 2012 Meeting of the Small Business Procurement
Group

Thank you for your participation at the White House Small Business Procurement Group
meeting on April 25. During the meeting, each agency was asked to take the following three
immediate steps, under your leadership, to ensure small businesses are utilized to the maximum
extent practicable: (1) maximize opportunities for small businesses when making small dollar
awards, (2) increase opportunities for small businesses under multiple award contracts, and (3)
strengthen accountability for small business goal achievement. Additional information on each
of these steps is provided below. As we move forward, each agency should ensure program,
contracting, and small business policy staff understand their agencys small business contracting
goals and the tools available for meeting their goals.

Maximizing Opportunities for Small Businesses Under the Simplified Acquisition
Threshold

Pursuant to longstanding statutory requirements in the Small Business Act, agencies are
required to automatically set aside work for small businesses that is equal to or less than the
value of the simplified acquisition threshold (SAT) (generally $150,000) unless the contracting
officer determines the rule of two cannot be met i.e., there is not a reasonable expectation of
obtaining offers from two or more responsible small business concerns that are competitive in
terms of market prices, quality, and delivery. However, a third-party analysis of data in the
Federal Procurement Data System suggests that a significant amount of work under the SAT is
not going to small businesses, including for products and services in industries where small
businesses are typically well represented. This suggests that opportunities for small businesses
are being lost, and that agencies must take additional steps to consistently apply set-asides in the
manner prescribed in law and regulation.

Exhibit 27 Executive Office of the President June 6, 2012 MEMO (JORDAN - MILLS)
17

2

Accordingly, we are asking that all agencies review their small business contracting
practices for purchases under the SAT and make adjustments where appropriate. At a minimum,
agencies should remind their contracting components of responsibilities to set aside contracts
whose value is equal to or less than the SAT unless the rule of two is not met, to properly
document the contract file when a set-aside is not used, and to maintain appropriate internal
controls that ensure consistent application of these requirements. A sample memorandum to
send to your agencys acquisition workforce is included as Attachment 2 for your consideration.

In the near future, the Small Business Administration (SBA) will provide each agency
with an analysis of its contracts falling under the SAT that have not been awarded to small
businesses. SBA expects agencies to monitor their SAT performance and take appropriate
actions when missed opportunities to make contract awards to small businesses are identified.

We ask that all agencies report to OMB:
(1) steps taken to ensure internal controls are in place for the consistent application of small
business contracting requirements under the SAT,
(2) steps taken (or planned) to increase utilization of small businesses where awards under
the SAT are being made to other than small businesses, and
(3) if no steps have been taken, why no action has taken place.

Increasing Small Business Utilization on Multiple Award Contracts

In working together to enact section 1331 of the Small Business Jobs Act of 2010, Public
Law 111-240, both the Administration and Congress recognized that significant untapped
opportunities exist to increase small business participation on multiple award contracts.
1
To
capitalize on these opportunities, section 1331 directed the Administrator for Federal
Procurement Policy and the Administrator of the Small Business Administration, in consultation
with the Administrator of General Services, to establish regulations under which Federal
agencies may, at their discretion, use partial contract set-asides, contract reserves, and order set-
asides under multiple award contracts.

As a first step, the Federal Acquisition Regulatory Council (FAR Council) issued an
interim rule on November 2, 2011 to provide guidance on the section 1331 authorities. A
number of agencies, including the Department of Homeland Security, have reported success
stories and best practices using the interim rule. Information on these successful applications of
section 1331 is available at https://max.omb.gov/community/x/EwFoIQ.

While use of the section 1331 tools is discretionary, the responsibility to give small
businesses maximum practicable opportunity is mandatory, and agencies will be held
accountable for taking all reasonable steps to meet their small business goals. This means that

1
Multiple award contracts are large umbrella contracts that are awarded to a number of companies who then
compete for specific orders after the umbrella contracts have been awarded. Over the life of a typical multiple
award contract, which is often 5 years or more, hundreds of millions, if not billions, are spent through these types of
vehicles.
18

3

each agency must determine how best to use the section 1331 tools with those tools previously
available to increase awards to small businesses and help the Federal government meet its
government-wide small business contracting goals each year. To help agencies measure their
progress, SBA will provide agencies with an analysis of their task and delivery order spending
(including spending under the SAT) that has not been awarded to small businesses.

To ensure the benefits of the FAR interim rule are being maximized, we ask that agencies
take the six steps listed in Attachment 1 and report to OMB:
(1) actions taken to accomplish the six steps,
(2) if action was not taken, why no action was taken, and
(3) when the agency reasonably expects to complete the six steps.

A sample memorandum to send to your agencys acquisition workforce is included as
Attachment 3 for your consideration.

Strengthening Accountability for Small Business Goal Achievement

Achievement of Federal small business contracting goals depends greatly on effectively
communicating those goals throughout agencies and with clear lines of accountability. To that
end, we are asking each of you to hold senior leadership accountable for meeting your agencys
small business goals, including any of the statutory socio-economic goals (Small Disadvantaged
Business, HUBZone Small Business, Woman-Owned Small Business, and Service-Disabled
Veteran-Owned Small Business). We encourage you to include agency small business
contracting goals in the performance evaluations of all Senior Executive Service (SES) staff
members who oversee your agencys acquisition workforce.

Agencies that have implemented performance evaluations containing small business
contracting goal elements report that senior level leadership accountability plays a critical role in
ensuring that those agencies meet or exceed their small business contracting and socio-economic
goals. To that end, we ask agencies to report to OMB on the steps they have taken to hold senior
leadership accountable for small business goals.

Agencies should submit their report covering the initiatives discussed above to Susan
Truslow of OMBs Office of Federal Procurement Policy at struslow@omb.eop.gov by July 9,
2012.

Attachments
19

Attachment 1

Short Term Steps for Increasing Small Business Opportunities
Under Multiple Award Contracts

To help ensure the benefits of section 1331 of the Small Business Jobs Act of 2010 are being
maximized, agencies should take the six steps listed below.
1

1. Issue a memorandum to the acquisition workforce reminding them of the interim FAR
rule on section 1331 and encouraging use of these tools. Consistent with expectations
announced by the FAR Council when the interim rule was published,
2
the memorandum
should briefly review the various actions that can be taken under the interim rule and cite best
practices and success stories (which could include those of Department of Homeland
Security, if the agency does not yet have successes of its own to which it can point). We
recommend that the memorandum be sent from the Deputy Secretary, or equivalent official,
by June 15, 2012. A sample template is provided for your consideration in Attachment 3.

2. Consider requiring order set-asides under multiple award contracts if the agency is not
currently meeting its small business goals. Historically, set-asides have proven to be the
most powerful small business contracting tool. Accordingly, an increased commitment to
order set-asides is likely to be a highly effective means to help an agency improve its small
business contracting results and meet its small business goals. This can be achieved by
committing to use order set asides unless there is not a reasonable expectation of obtaining
offers from two or more responsible small business concerns that are competitive in terms of
market prices, quality, and delivery (i.e., unless the rule of two is not met).

Since the ultimate discretion of whether to apply a section 1331 tool rests with the
contracting agency, the agency will need to determine the most appropriate application of a
required set-aside. That is, the agency will have to decide whether to apply the tool to all of
the agencys contracting activities, an identified set of contracting activities, or a discrete set
of acquisitions defined by industry or dollar threshold.
3
The sample template includes
alternative language to address mandatory application of set-asides to the extent the agency

1
Any planned actions in response to this list should include a date for completion, which should be no later than
August 31, 2012.

2
When the interim rule was published, the FAR Council made clear that it expected agencies to take advantage of
set-asides under multiple-award contracts by (1) identifying existing or prospective multiple-award contracts with
small business contract holders where order set-asides may be appropriate, and (2) maximizing opportunities for
small business by utilizing order set-asides under the Multiple Awards Schedule or Federal Supply Schedule
Programs.

3
Agencies are encouraged to use the MaxPrac tool of the Department of Defense, which helps agencies to analyze
their spend data and determine where small business capacity and opportunities are greatest. The Department of
Defense has updated the MaxPrac tool with FY 2011 data, which is available as a zip file for download at
http://www.acq.osd.mil/osbp/docs/CivilianAgencyMaxPracFY11-0312.zip. Questions regarding access and use of
the tool may be directed to Ms. Carol Brown carol.a.brown@osd.mil in the Office of Small Business Programs in
the Department of Defense.

20

2

deems appropriate. We recommend that any determination to require set-asides remain in
effect at least until the agency is meeting its small business goals.

3. Bilaterally modify existing multiple-award contracts to provide for order set-asides.
When the interim rule was published, the FAR Council encouraged agencies to modify, on a
bilateral basis, existing multiple-award contracts if the remaining period of performance
extends at least six months after the effective date, and the amount of work or number of
orders expected under the remaining performance period is substantial. The sample template
includes language regarding the bilateral modification of existing contracts.

4. Strengthen internal controls. Contract files should appropriately document how section
1331 tools were considered. If the agency is not currently meeting its various small business
contracting goals, contracting components should also consider sampling contract files to
review market research and other documents explaining how section 1331 tools were
considered and, if not used, why the agency purchased the product or service on an
unrestricted basis.

5. Review SBAs proposed rule on section 1331. On May 16, 2012, SBA published in the
Federal Register a proposed rule providing more specific guidance to ensure that meaningful
consideration of set-asides and reserves is given in connection with the award of multiple
award contracts and task and delivery orders placed under them, and that those tools are used
in a consistent manner. 77 FR 29130. Agencies are strongly encouraged to review the rule
and provide directly to SBAs Dean Koppel at dean.koppel@sba.gov by July 16, 2012 any
suggestions for improving the rule. SBA is especially interested in changes that will make
the rule simpler, clearer, and more conducive to encouraging maximum use of the section
1331 tools by the agencies.

6. Ensure the workforce is trained. The General Services Administration has posted a set of
frequently asked questions, (FAQs), available at
http://www.gsa.gov/portal/content/113371, to explain how set-asides can be applied when
placing orders under Multiple Award Schedules contracts. Agencies are encouraged to
review the FAQs and also to take advantage of free training that GSA offers on order set-
asides. To access GSAs webinar training, please visit interact.gsa.gov and Continuous
Learning Module (CLM), Basic Contracting for GSA Schedules (FAC023) at
icatalog.dau.mil. To sign up for additional training, agencies should contact Steve Sizemore
in GSAs Federal Acquisition Service at steve.sizemore@gsa.gov.

21

Attachment 2
Sample Memorandum to send to the Acquisition Workforce in your agency
DATE: May XX, 2012
FROM: [Name], Deputy Secretary (or equivalent)
[Name], Chief Acquisition Officer, Senior Procurement Executive
[Name], Director, Office of Small and Disadvantage Business Utilization

SUBJECT: Increasing opportunities for small businesses through small business set-asides
under the Simplified Acquisition Threshold

The purpose of this memorandum is to remind you of longstanding statutory
requirements to set aside contracts for small businesses where the contract value is equal to or
less than the simplified acquisition threshold (SAT) unless the rule of two is not met, and
request that you redouble efforts to ensure these requirements are followed consistently. Set-
aside requirements help to maximize small business contracting opportunities in the Federal
marketplace. Greater management attention to the use of set-asides below the SAT can help our
agency meet and exceed its small business contracting requirements each year.

Under section 15(j) of the Small Business Act and the Federal Acquisition Regulation,
contracting officers are required to set aside contracts above the micro-purchase threshold
1
and
below the SAT
2
for small business unless the contracting officer determines there is not a
reasonable expectation of obtaining offers from two or more responsible small business concerns

1
Under the FAR, micro-purchase means an acquisition of supplies or services using simplified acquisition
procedures, the aggregate amount of which does not exceed the micro-purchase threshold.
Micro-purchase threshold means $3,000, except it means
(1) For acquisitions of construction subject to the Davis-Bacon Act, $2,000;
(2) For acquisitions of services subject to the Service Contract Act, $2,500; and
(3) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to
support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or
radiological attack, as described in [FAR] 13.201(g)(1), except for construction subject to the Davis-Bacon Act
(41 U.S.C. 1903)
(i) $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the
United States; and
(ii) $30,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the
United States.

2
Under the FAR, simplified acquisition threshold means $150,000, except for acquisitions of supplies or
services that, as determined by the head of the agency, are to be used to support a contingency operation or to
facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack (41 U.S.C. 1903), the
term means
(1) $300,000 for any contract to be awarded and performed, or purchase to be made, inside the United States;
and
(2) $1 million for any contract to be awarded and performed, or purchase to be made, outside the United
States.

22

2

that are competitive in terms of market prices, quality and delivery. FAR 19.502-2(a) requires
the contracting officer to document the file if a set-aside is not used in connection with the award
of a contract in this dollar range.

Further, [AGENCY] has awarded [##% - SBA will soon provide agencies with a SAT
performance analysis] of contracts with dollar values equal to or less than the SAT to small
businesses, falling short of our statutory requirement of awarding 100% of contracts below the
SAT to small businesses when the rule of two is met.

To help the agency increase its contracting with small businesses, please take the
following steps in conjunction with every new contract award that has an anticipated dollar value
exceeding $3,000 but not exceeding the SAT:

Automatically reserve the work for small business concerns and set aside the contract for
small business, unless there is not a reasonable expectation of obtaining offers from two or
more responsible small business concerns that are competitive in terms of market prices,
quality, and delivery.

If the work is not set aside for small business, document in the contract file the reason for
acquiring the service or product on an unrestricted basis.

Please ensure appropriate internal controls are used to monitor compliance with the steps
described above. For example, contracting activities may decide to sample contract files to
review market research and other documents explaining why the agency purchased the product
or service on an unrestricted basis.

Thank you for your commitment to meeting and exceeding [AGENCYS] small business
contracting goals. We appreciate all of your efforts in utilizing small businesses to meet our
requirements.

cc: Agency Chief Acquisition Officer
Agency Senior Procurement Executive
Agency Small Business Director

23

Attachment 3

Sample Memorandum to send to the Acquisition Workforce in your agency
DATE: May XX, 2012
FROM: [Name], Deputy Secretary (or equivalent)
[Name], Chief Acquisition Officer, Senior Procurement Executive
[Name], Director, Office of Small and Disadvantage Business Utilization
SUBJECT: Maximizing Small Business Utilization on Multiple Award Contracts
The purpose of this Memorandum is to remind you of provisions in the Federal
Acquisition Regulation (FAR) that became effective November 2, 2011, providing for the use of
order set-asides in connection with multiple award contracts. In working together to enact
section 1331 of the Small Business Jobs Act, both the Administration and Congress recognized
that untapped opportunities exist to increase small business participation on multiple award
contracts. They further recognized that set-asides historically have proven to be the most
powerful small business contracting tool. For these reasons, you are asked to give increased
attention to set-asides when placing orders under multiple award contracts.

Section 1331 of the Jobs Act directed the Administrator for Federal Procurement Policy
and the Administrator of the Small Business Administration (SBA), in consultation with the
Administrator of General Services, to establish regulations under which Federal agencies may, at
their discretion: (1) set aside part or parts of a multiple award contract for small business, (2)
reserve one or more awards on multiple award contracts that are established through full and
open competition for small business, and (3) set aside orders under multiple award contracts for
small businesses.

On November 2, 2011, an interim FAR rule was published to provide agencies with
initial guidance for taking advantage of the section 1331 authorities. With respect to order set-
asides, in particular, the interim rule:

makes clear that set-asides may be used in connection with the placement of orders under
multiple award contracts, notwithstanding the otherwise applicable requirement to provide
each contract holder a fair opportunity to be considered;

makes clear that set-asides may be utilized under any of the various small business programs
(i.e. Small Business, Small Disadvantaged Business, HUBZone Small Business, Woman-
Owned Small Business, and Service-Disabled Veteran-Owned Small Business);

further makes clear that order set-asides may be used in connection with the placement of
orders and blanket purchase agreements under Multiple Award Schedule (MAS) contracts;
and

24

2

amends existing solicitation provisions and contract clauses to provide notice of set-asides.

To ensure the benefits of order set-asides are being maximized, contracting activities
should take the following immediate steps:

(1) Identify prospective multiple-award contracts with small business contract holders where
order set-asides may be appropriate and either preserve the option to set aside individual
orders or commit to using order set-asides unless there is not a reasonable expectation of
obtaining offers from two or more responsible small business concerns that are
competitive in terms of market prices, quality, and delivery (i.e., unless the rule of two
is not met at the order level).

(2) Identify existing multiple-award contracts with small business contract holders where
order set-asides may be appropriate and either preserve the option to set-aside orders or
commit to using order set-asides. This may require bilateral modifications, which should
be considered if the remaining period of performance extends at least six months after the
effective date, and the amount of work or number of orders expected under the remaining
performance period is substantial.

(3) Consider order set-asides under MAS contracts. The General Services Administration
has posted a set of frequently asked questions (FAQs), available at
http://www.gsa.gov/portal/content/113371, to explain how set-asides may be applied
when placing orders under MAS contracts. Agencies are encouraged to review the FAQs
and also to take advantage of free training that GSA offers on order set-asides. To sign
up for training, agencies should contact Steve Sizemore in GSAs Federal Acquisition
Service at steve.sizemore@gsa.gov.

(4) Review success stories in connection with the use of the interim FAR rule, available at
https://max.omb.gov/community/x/EwFoIQ, and document examples of successes as you
identify them.

(5) Ensure that contract files appropriately documents how section 1331 tools were
considered.

[If the agency is not currently meeting all of its small business goals, consider the following
alternative language for the steps listed above:

[AGENCY] is not currently meeting one or more of its small business goals. To ensure
the benefits of order set-asides are being maximized, contracting activities should take the
following immediate steps:

(1) Identify prospective multiple-award contracts with small business contract holders where
order set-asides may be appropriate and commit to using order set asides unless a
determination is made prior to placing the order that there is not a reasonable expectation
of obtaining offers from two or more responsible small business concerns that are
competitive in terms of market prices, quality and delivery (i.e., the rule of two is not
25

3

met at the order level). This commitment should be applied to the following new
multiple award contracts: [Agency should identify the appropriate scope of the
commitment: all prospective multiple award contracts / multiple award contracts
awarded by the following components (identify) / multiple award contracts that are
predominantly for the following products or services (identify) / all orders within the
following dollar range (identify)]. For all other new multiple award contracts, either
preserve the right to use set-asides or commit to using set asides.

(2) Identify existing multiple-award contracts (with the scope identified in item (1), above)
with small business contract holders where order set-asides may be appropriate and
commit to using order set-asides. This may require bilateral modifications, which should
be considered if the remaining period of performance extends at least six months after the
effective date, and the amount of work or number of orders expected under the remaining
performance period is substantial.

(3) Commit to order set-asides under MAS contracts for orders falling within the scope
identified in item (1). GSA has posted a set of frequently asked questions (FAQs),
available at http://www.gsa.gov/portal/content/113371, to explain how set-asides may be
applied when placing orders under MAS contracts. Agencies are encouraged to review
the FAQs and also to take advantage of free training that GSA offers on order set-asides.
To sign up for training, agencies should contact Steve Sizemore in GSAs Federal
Acquisition Service at steve.sizemore@gsa.gov.]

(4) Review success stories in connection with the use of the interim FAR rule, available at
https://max.omb.gov/community/x/EwFoIQ, and document examples of successes as you
identify them.

(5) Ensure that contract files appropriately documents how section 1331 tools were
considered.

(6) Sample contract files to review market research and other documents explaining how
order set-asides were considered and, if not used, why the agency purchased the product
or service on an unrestricted basis.]

On May 16, 2012, SBA published in the Federal Register a proposed rule providing more
specific guidance addressing all three components of section 1331, namely (1) partial contract
set-asides, (2) contract reserves, and (3) order set-asides. The purpose of SBAs rulemaking is to
ensure both that meaningful consideration of set-asides and reserves is given in connection with
the award and placement of task and delivery orders under multiple award contracts and that
those tools are used in a consistent manner. You are urged to review the rule and provide
feedback to [insert agency POC] by [insert date that will allow the agency to submit
consolidated feedback directly to SBA by July 9, 2012]. You should focus on changes that
will make the rule simpler, clearer, and more conducive to encouraging maximum use of the
tools by the agency.

26

4

Contracting activities should report on actions taken or planned in response to this
memorandum to [insert POC] by [insert date that will allow agency to report back to OMB
by July 9, 2012]. Thank you for your attention to this important matter and for your ongoing
commitment to help our agency meet and exceed its small business contracting goals.

cc: Agency Chief Acquisition Officer
Agency Senior Procurement Executive
Agency Small Business Director
27
List of Air Expeditionary units of the United States Air Force
1
List of Air Expeditionary units of the United
States Air Force
Air Expeditionary Wings/Groups (AEW/AEG) are a Wing/Group concept used by the United States Air Force.
These units are activated under temporary orders by the owning MAJCOM for a specific purpose or mission. Once
the subject mission is completed, these units are inactivated.
Air Expeditionary Units
Unit Shield Location Reports
to
Status Aircraft Notes
13 AEG Christchurch IAP, New Zealand PACAF
Joint Task Force-Support Forces
Antarctica
[1]
16 AEW USAFE Inactive
40 AEW Diego Garcia PACAF Inactive B-52, B-1
64 AEG Eskan Village, Saudi Arabia AFCENT Active
320 AEW Joint Base Anacostia-Bolling,
DC
AFDW Inactive
321 AEW New Al Muthana Air Base, Iraq AFCENT Inactive
322 AEG AFCENT Inactive
323 AEW Balotesti, Romania USAFE Inactive Activated from 14 Mar to 30 Apr
2008.
332 AEW Ahmed Al Jaber AB, Kuwait AFCENT Inactive A-10, C-130,
F-16CG/C+, HH-60G,
Predator UAV
363 AEW Prince Sultan Air Base, Saudi
Arabia
ACC Inactive Redesignated 363 FTG
370
AEAG
ACC Inactive
376 AEW Transit Center at Manas,
Kyrgyzstan
AFCENT Active KC-135
379 AEW Al-Udeid Air Base, Qatar AFCENT Active KC-135, C-130
2
380 AEW Al Dhafra Air Base, UAE AFCENT Active U-2, RQ-4, KC-135,
KC-10
384 AEW ACC Inactive
385 AEG Incirlik AB, Turkey AMC Active
386 AEW Ali Al Salem Air Base, Kuwait AFCENT Active C-130
387 AEG Kuwait City IAP, Kuwait AFCENT Active
398 AEG ACC Inactive
401 AEW USAFE Inactive
404 AEG Ramstein AB, Germany USAFE Active C-130 Supports contingencies for 3 AF
405 AEW ACC Inactive B-1
407 AEG Ali Air Base, Iraq AFCENT Inactive C-130H
409 AEG
[2]
USAFE Inactive
416 AEG ACC Inactive
432 AEW Creech Air Force Base, Nevada ACC Active MQ-1, MQ-9
438 AEW Kabul IAP, Afghanistan AFCENT Active
447 AEG Iraq USAFE Inactive
449 AEG Camp Lemonier, Djibouti USAFE Active
3
451 AEW Kandahar Air Base, Afghanistan AFCENT Active HH-60, C-130, A-10
455 AEW Bagram Air Field, Afghanistan AFCENT Active F-16C
457 AEG AFCENT Inactive
466 AEG Transit Center at Manas,
Kyrgyzstan
AFCENT Active
467 AEG Iraq AFCENT Inactive Inactivated Dec 2011
485 AEW Iraq AFCENT Inactive C-130
486 AEW ACC Inactive C-130
506 AEG Joint Base Balad, Iraq AFCENT Inactive C-130
651 AEG
[3]
Camp Bastion, Afghanistan AFCENT Active HH-60 Activated 29 June 2011
References
[1] 13AF Public Affairs: "13th Air Expeditionary Group adopts new emblem" (http:/ / www. 13af.pacaf. af. mil/ news/ story.
asp?id=123077739)
[2] http:/ / www. tioh. hqda. pentagon. mil/ Heraldry/ AirForce/ AirForceUnit. aspx?u=7583
[3] http:/ / www. tioh. hqda. pentagon. mil/ Heraldry/ AirForce/ AirForceUnit. aspx?u=8287
Article Sources and Contributors
4
Article Sources and Contributors
List of Air Expeditionary units of the United States Air Force Source: http://en.wikipedia.org/w/index.php?oldid=563565277 Contributors: Bahamut0013, BrownHairedGirl, Buckshot06,
Dcfowler1, EagleWSO, Ktr101, LanceBarber, Lineagegeek, Ndunruh, PhoenixBlue, Pmsyyz, Rich Farmbrough, SGT141, Sadads, Tdrss, YUL89YYZ, , 36 anonymous edits
Image Sources, Licenses and Contributors
File:13th Air Expeditionary Group - Emblem.png Source: http://en.wikipedia.org/w/index.php?title=File:13th_Air_Expeditionary_Group_-_Emblem.png License: Public Domain
Contributors: United States Air Force
File:USAF - 16th Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:USAF_-_16th_Air_Expeditionary_Wing.png License: Public Domain Contributors:
Chesipiero, SGT141
File:40th Air Expeditionary Wing.PNG Source: http://en.wikipedia.org/w/index.php?title=File:40th_Air_Expeditionary_Wing.PNG License: Public Domain Contributors: AFHRA
File:64th Air Expeditionary Group.png Source: http://en.wikipedia.org/w/index.php?title=File:64th_Air_Expeditionary_Group.png License: Public Domain Contributors: United States Air
Force
File:320th Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:320th_Air_Expeditionary_Wing.png License: Public Domain Contributors: AF HRA
File:321st Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:321st_Air_Expeditionary_Wing.png License: Public Domain Contributors: AF HRA
File:322dtacticalairliftwing-patch.jpg Source: http://en.wikipedia.org/w/index.php?title=File:322dtacticalairliftwing-patch.jpg License: Public Domain Contributors: United States Air Force
File:323d Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:323d_Air_Expeditionary_Wing.png License: Public Domain Contributors: AF HRA
File:USAF - 363rd Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:USAF_-_363rd_Air_Expeditionary_Wing.png License: Public Domain Contributors:
United States Air Force
File:370th Air Expeditionary Advisory Group.png Source: http://en.wikipedia.org/w/index.php?title=File:370th_Air_Expeditionary_Advisory_Group.png License: Public Domain
File:376th Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:376th_Air_Expeditionary_Wing.png License: Public Domain Contributors: United States Air
Force
File:379th Air Expeditionary Wing color.PNG Source: http://en.wikipedia.org/w/index.php?title=File:379th_Air_Expeditionary_Wing_color.PNG License: Public Domain Contributors: AF
Historical Research Agency
Force
File:USAF - 384th Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:USAF_-_384th_Air_Expeditionary_Wing.png License: Public Domain Contributors:
Chesipiero, SGT141
Force
File:387th Air Expeditionary Group - Emblem.png Source: http://en.wikipedia.org/w/index.php?title=File:387th_Air_Expeditionary_Group_-_Emblem.png License: Public Domain
File:398thoif-patch.jpg Source: http://en.wikipedia.org/w/index.php?title=File:398thoif-patch.jpg License: Public Domain Contributors: United States Air Force
File:401st Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:401st_Air_Expeditionary_Wing.png License: Public Domain Contributors: Original uploader
was Tdrss at en.wikipedia
File:404th Air Expeditionary Group.PNG Source: http://en.wikipedia.org/w/index.php?title=File:404th_Air_Expeditionary_Group.PNG License: Public Domain Contributors: AF Historical
Research Agency
File:407th Air Expeditionary Group.png Source: http://en.wikipedia.org/w/index.php?title=File:407th_Air_Expeditionary_Group.png License: Public Domain Contributors: United States Air
Force (User:Pmsyyz converted JPEG to PNG, added transparency, resized)
File:410th Air Expeditionary Wing.PNG Source: http://en.wikipedia.org/w/index.php?title=File:410th_Air_Expeditionary_Wing.PNG License: Public Domain Contributors: AF HRA
File:USAF - 416th Air Expeditionary Group.png Source: http://en.wikipedia.org/w/index.php?title=File:USAF_-_416th_Air_Expeditionary_Group.png License: Public Domain
Contributors: Chesipiero, SGT141
File:432d Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:432d_Wing.png License: Public Domain Contributors: United States Air Force (User:Pmsyyz converted JPEG to
PNG, added transparency, resized to 900px wide)
File:USAF - 447th Air Expeditionary Group 2.png Source: http://en.wikipedia.org/w/index.php?title=File:USAF_-_447th_Air_Expeditionary_Group_2.png License: Public Domain
Contributors: Chesipiero, SGT141
File:449th Bombardment Wing.PNG Source: http://en.wikipedia.org/w/index.php?title=File:449th_Bombardment_Wing.PNG License: Public Domain Contributors: United States Air Force
File:451st-airexpeditionarywing-emblem.png Source: http://en.wikipedia.org/w/index.php?title=File:451st-airexpeditionarywing-emblem.png License: Public Domain Contributors: United
States Air Force
Force
File:457thaeg-emblem.jpg Source: http://en.wikipedia.org/w/index.php?title=File:457thaeg-emblem.jpg License: Public Domain Contributors: United States Air Force
File:466th Air Expeditionary Group.png Source: http://en.wikipedia.org/w/index.php?title=File:466th_Air_Expeditionary_Group.png License: Public Domain Contributors: USAF
File:467th Air Expeditionary Group.png Source: http://en.wikipedia.org/w/index.php?title=File:467th_Air_Expeditionary_Group.png License: Public Domain Contributors: Pmsyyz
File:485th Air Expeditionary Wing.png Source: http://en.wikipedia.org/w/index.php?title=File:485th_Air_Expeditionary_Wing.png License: Public Domain Contributors: AF HRA
File:487tmissielwing-patch.jpg Source: http://en.wikipedia.org/w/index.php?title=File:487tmissielwing-patch.jpg License: Public Domain Contributors: United States Air Force
File:506th Air Expeditionary Group.PNG Source: http://en.wikipedia.org/w/index.php?title=File:506th_Air_Expeditionary_Group.PNG License: Public Domain Contributors: AF HRA
License
Creative Commons Attribution-Share Alike 3.0 Unported
//creativecommons.org/licenses/by-sa/3.0/

Defense Contract Management Agency

Operation Enduring Freedom/Operation New Dawn


Budget Activity 04: Administrative and Service-Wide Activities

OCO DCMA-13

I. Description of Operations Financed: The DCMA maintains a presence in theater to
support the Armys Logistics Civil Augmentation Program (LOGCAP) and Air Force Contract
Augmentation Program (AFCAP), and hundreds of in-theater delegated contracts. The LOGCAP
provides life and logistics support to all Soldiers and Civilians under difficult
security circumstances in Iraq, Afghanistan, Kuwait, Qatar, Bahrain, Oman and Djibouti.
The AFCAP provides air traffic management at air bases throughout central Asia,
supplementing scarce Air Force assets and providing needed rest for Air Force service
members who also perform this function. DCMA provides oversight of the $8B LOGCAP IV
contract, which includes three major contractors; administers oversight to hundreds of
CENTCOM - Joint Theater Support Contracting Command (C-JTSCC) contract delegations
associated with theater sustainment valued at $13B; and supports additional contract
delegations throughout Afghanistan and the CENTCOM Theater.

The DCMA Afghanistan faces the daily challenge of supporting every Soldier, Sailor,
Airman, Marine and Civilian in the theater of operation through its oversees contingency
operations oversight responsibilities. The OCO requirement necessitates in-theater
contract oversight, which must be accomplished by Boots on the Ground. DCMA
Afghanistan continues to administer the three year $1.2B Afghanistan National Police
(ANP) mentoring/training/life support Cost-Plus-Fixed-Fee (CPFF) term contract that
started in the early spring of 2011.

The DoD has approximately 90,000 Marines and Soldiers deployed in support of Operation
Enduring Freedom (OEF). The DoD must maintain a considerable civilian and contracted
workforce to sustain the requisite resources used to combat terrorism. This coalition
force support is provided through the military Services Civil Augmentation Programs
(CAPS) in which DCMA Afghanistan provides the requisite contract management and
oversight; including Contract Administration, Property Management and Quality Assurance





I. Description of Operations Financed (cont.)

OCO DCMA-14

services. In addition to the resource requirement in support of Afghanistan troops, DCMA
anticipates continued contract oversight requirements in Kuwait/Middle East to support
increase in retrograde operations and theater sustainment support.

The DCMA will maintain a presence in Iraq of 19 personnel to aid the Office of Security
CooperationIraq (OSC-I) as the Operation New Dawn mission transitions to the Department
of State (DoS) and OSC-I. Additional contract oversight support will be provided to the
(DoS) on a fully reimbursable basis.

DCMA also provides Contract Management Services for Army Stryker, High Mobility Multi-
purpose Vehicle (HMMV Humvee), Family of Medium Tactical Vehicles (FMTV), Heavy Lift,
and Line Haul Reset contracts in-theater. These contracts move repair/depot effort
forward from their CONUS Army Depots to decrease the turnaround time for returning
equipment to the warfighter.

DCMAs current Contingency Contract Administration Service (CCAS) mission requires a
force of 311 personnel with a CENTCOM Joint Manning Document (JMD) approved in-theater
ceiling of 450 requirements. DCMA sources this manning requirement by deploying 110
Service-provided military, 15 Service-provided Subject Matter Experts (SME), contracted
support from the US Army Corps of Engineers (USACE), and the balance using DCMA
personnel. The demographics of the DCMA unit fill sourcing vary, with the average
distribution of 35 DCMA Military and 180 civilian personnel. DCMA deploys personnel on
Temporary Duty (TDY) orders for a duration of 179 - 365 days. DCMA must also have
designated personnel that dwell in CONUS training, equipping, and preparing to deploy
when the deployed person returns home. DCMA's budget request is for civilian requirement
of 164 FTE (Emergency Essential (EE), civilian volunteers, and requisite support staff)





I. Description of Operations Financed (cont.)

OCO DCMA-15

supporting operations and transportation requirements for the in-theater contingency
contract administration mission.
II. Force Structure Summary:
N/A





III. Financial Summary ($ in thousands):

OCO DCMA-16

CBS No. CBS Title
FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
OEF

1.0
Personnel $45,828 $46,333 $-18,855 $27,478
2.0
Personnel Support $1,618 $2,163 $370 $2,533
3.0
Operating Support $11,529 $14,327 $-3,166 $11,161

OEF Total $58,975 $62,823 $-21,651 $41,172

OND

1.0
Personnel $11,457 $5,148 $-2,095 $3,053
2.0
Personnel Support $405 $240 $41 $281
3.0
Operating Support $2,882 $1,592 $-352 $1,240

OND Total $14,744 $6,980 $-2,406 $4,574

Grand Total $73,719 $69,803 $-24,057 $45,746






OCO DCMA-17

OEF FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
1. CBS Category/Subcategory
1.0 Personnel $45,828 $46,333 $-18,855 $27,478
Total $45,828 $46,333 $-18,855 $27,478

A. Narrative Justification: Personnel costs for support of OCONUS contingency operations
are for civilian base pay, overtime and premium pay (Sunday, hazardous duty, and night
and post differential). Overtime is required because of the contingency environment and
abnormal conditions as personnel teams rotate in and out of areas of responsibility. We
minimize the number of personnel by maximizing productive hours of duty, allowing the
optimum efficiencies for the required contract oversight given the limited infrastructure
support available to non-combatants.

B. Explanation of Changes between FY 2013 and FY 2014: Reduced labor costs for Civilian
Volunteers and EEs is a reflection of the anticipated withdrawal of troops in
Afghanistan, however, the Contract Oversight mission continues even though the Services
are drawing down. DCMA anticipates providing long term in-theater Contingency Contract
Administration Services support.






OCO DCMA-18

OND FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
1.0 Personnel $11,457 $5,148 $-2,095 $3,053
Total $11,457 $5,148 $-2,095 $3,053

A. Narrative Justification: Personnel costs for support of OCONUS contingency operations
are for civilian base pay, overtime and premium pay (Sunday, hazardous duty, and night
and post differential). Overtime is required because of the contingency environment and
abnormal conditions as personnel teams rotate in and out of areas of responsibility. We
minimize the number of personnel by maximizing productive hours of duty, allowing the
optimum efficiencies for the required contract oversight given the limited infrastructure
support available to non-combatants.

B. Explanation of Changes between FY 2013 and FY 2014: The continued draw down in Iraq
will require fewer Civilian Volunteers and EE deployments. DCMA will maintain a presence
in Iraq of up to 19 personnel to aid the OSC-I to support a successful transition to a
civilian mission.

OEF FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
2.0 Personnel Support $1,618 $2,163 $370 $2,533
Total $1,618 $2,163 $370 $2,533

A. Narrative Justification: Personnel support includes travel costs for OCONUS






OCO DCMA-19

contingency operations and in theater temporary duty (TDY) costs for the contract
administration teams.

B. Explanation of Changes between FY 2013 and FY 2014: The number of Civilian Volunteers
and EEs in Theater will decrease in FY 2014, however, the commercial travel costs
per person will increase due to a change in the CENTCOM Theater Gateway from Atlanta to
Baltimore. DCMA must commercially fly redeploying travelers from Baltimore to Atlanta to
turn in equipment used in Theater.

OND FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
2.0 Personnel Support $405 $240 $41 $281
Total $405 $240 $41 $281

A. Narrative Justification: Personnel support includes travel costs for OCONUS
contingency operations and in theater temporary duty (TDY) costs for the contract
administration teams.

B. Explanation of Changes between FY 2013 and FY 2014: The number of Civilian Volunteers
and EEs in Theater will decrease, however, the commercial travel costs per person will
increase due to a change in the CENTCOM Theater Gateway from Atlanta to Baltimore. DCMA
must commercially fly redeploying travelers from Baltimore to Atlanta to turn in
equipment used in Theater.






OCO DCMA-20

OEF FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
3.0 Operating Support $11,529 $14,327 $-3,166 $11,161
Total $11,529 $14,327 $-3,166 $11,161

A. Narrative Justification: These costs include pre-deployment orientation requirements,
civilian uniforms, passports, medical examinations, and services for the deployed teams;
special equipment purchases and supplies for deployed personnel; and costs for
communication equipment, office supplies, vehicle rent, and training facilities.
Computer equipment and supplies must be replaced frequently due to the harsh and abnormal
conditions in theater. These funds are also provided to contract Subject Matter Experts
(SME) to support overseeing and evaluating contingency contractor performance of
electrical services associated with life, health and safety, food service, water
purification, hazardous materials and fuels. .

B. Explanation of Changes between FY 2013 and FY 2014: Fewer SME will be required to fill
the hard to fill military specialties in the areas such as electrical service, food
service, water purification, hazardous materials and fuels due to draw down and Forward
Operating Base (FOB) closures.

OND FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
3.0 Operating Support $2,882 $1,592 $-352 $1,240






OCO DCMA-21

Total $2,882 $1,592 $-352 $1,240

A. Narrative Justification: These costs include pre-deployment orientation requirements,
civilian uniforms, passports, medical examinations, and services for the deployed teams;
special equipment purchases and supplies for deployed personnel; and costs for
communication equipment, office supplies, vehicle rent, and training facilities.
Computer equipment and supplies must be replaced frequently due to the harsh and abnormal
conditions in theater. Department of State (DoS) will provide support for SME performing
inspections associated with life, health and safety.

B. Explanation of Changes between FY 2013 and FY 2014: The draw down in Iraq will require
fewer Civilian Volunteers and EE deployments. DCMA will maintain a presence in Iraq of
up to 19 personnel to aid the Office of Security Cooperation - Iraq (OSC-I) to support a
successful transition to a civilian mission, however, some support cost previously
included by DCMA will be provided by Department of State (DoS).

FY 2012
Actual
FY 2013
Request Delta
FY 2014
Estimate
Total $73,719 $69,803 $-24,057 $45,746





IV. Performance Criteria:

OCO DCMA-22

N/A





OCO DCMA-23

V. OP 32 Line Items as Applicable (Dollars in thousands):
FY 2012
Change
FY 2012/FY 2013 FY 2013
Change
FY 2013/FY 2014 FY 2014
OP 32 Line Actual Price Program Request Price Program Estimate
101 Exec, Genl & Spec Scheds 49,885 120 1,476 51,481 450 -21,400 30,531
106 Benefit to Fmr Employees 7,400 0 -7,400 0 0 0 0
199 Total Civ Compensation 57,285 120 -5,924 51,481 450 -21,400 30,531
308 Travel of Persons 2,022 40 336 2,398 46 450 2,894
399 Total Travel 2,022 40 336 2,398 46 450 2,894
771 Commercial Transport 0 0 5 5 0 -5 0
799 Total Transportation 0 0 5 5 0 -5 0
914 Purchased Communications (Non-
Fund)
2,041 41 -362 1,720 33 181 1,934
915 Rents (Non-GSA) 0 0 266 266 5 31 302
920 Supplies & Materials (Non-
Fund)
265 5 37 307 6 98 411
921 Printing & Reproduction 3 0 7 10 0 -6 4
925 Equipment Purchases (Non-Fund) 430 9 161 600 11 243 854
989 Other Services 11,673 233 1,110 13,016 247 -4,447 8,816
999 Total Other Purchases 14,412 288 1,219 15,919 302 -3,900 12,321
Total 73,719 448 -4,364 69,803 798 -24,855 45,746

FTEs: FY 2012 271; FY 2013 241; FY 2014 164.
Property Administration (PA)
Types of Contracts Assigned in the Field
Revision #, Date (of revision)
Presented By:
Mr. Ed Hoenig
18 May 2011
2
Terminal Learning Objective (TLO):
Identify the types of programs and contracts that the PA will be
assigned to perform Property Administration
Enabling Learning Objectives (ELO):
ELO #1 Identify the process of how contracts are assigned for
property administration in theater.
ELO#2 Recognize the specific requirements for certain
contracts/programs in theater.
3
All contracts requiring administration in the
CENTCOM AOR are assigned by the Joint Contracting
Command Iraq/Afghanistan (JCC-I/A)
Contract Administration is Delegated to DCMA Iraq
and Afghanistan by JCC-I/A
Types of programs and contracts administered in
theater
Civil Augmentation Programs (CAP) i.e. LOGCAP and AFCAP
Combat Services Support Contracts
Special Mission Contract
Theater Wide Contract Administration (TWCA)
4
Civil Augmentation Programs (CAP)
Prime Administration for all CAP Contracts resides with DCMA
Soldier Systems & CAP - Phoenix
All Property Administration on CAPS in theater is in support of the
Prime Property mission assigned to DCMA Soldier Systems & CAP-
Phoenix (and preformed under the Property Division)
Contracts/Task Orders are Service and or Facility Type
Three (3) CAP Programs being administered
CONUS/OCONUS (CENTCOM):
U.S. Army Logistical Contractor Augmentation Program III (LOGCAP)
U.S. Army Logistical Contractor Augmentation Program IV(LOGCAP)
U.S. Air Force Logistical Contractor Augmentation Program (AFCAP)
5
U.S. Army LOGCAP III
Program Activity U.S. Army Material Command (Army
Sustainment Command) Rock Island, IL
Prime Contractor: KBR Houston, TX Contract is CPAF
Individual Task Orders are issued under the Basic Contract
Property under LOGCAP III located in Kuwait, Iraq, Afghanistan,
UAE, and Turkey,
Total Property Line items 750K Plus Value $ 2.9 B
Government Property Clause: 52.245-5 Modified to 52.245-1 with
exception of Afghanistan.
Property Administration (SPA) delegated to DCMA Iraq and
Afghanistan Through JCC-I/A
Prime PA for LOGCAP III Mrs. Maria McNamara (713) 718-3602 x
142
6
U.S. Army LOGCAP IV
Program Activity U.S. Army Material Command (Army
Sustainment Command) Rock Island, IL
Prime Contractors: KBR TX, DYNCORP TX, and FLUOR
Intercontinental SC
Each Contractor Issued Basic Contract (CPAF) with Task Orders
to be competitively Awarded
Property under LOGCAP III will be eventually transferred to
LOGCAP IV Property located in Kuwait, Iraq, Afghanistan, UAE,
Government Property Clause: 52.245-1 (New Clause)
7
U.S. Army LOGCAP IV
Property Administration (SPA) delegated to DCMA Iraq and
Afghanistan Through JCC-I/A
3 Prime PAs for LOGCAP IV
Mrs. Maria McNamara (713) 718-3602 x 142 (KBR)
Mr. Steven Abramowitz (407) 228-5297 (FLUOR)
Mr. Andrew Biscoe (214) 670-9315 (DYNCORP)
8
U.S. Air Force Logistical Contract Augmentation Program (AFCAP)
Program Office U.S. Air Force Civil Engineering Support Agency (HQ
AFCESA), Tyndall AFB, FL
Prime Contractors: Bechtel (CA), CH2M Hill (CO), DynCorp (TX) , Readiness
Management Support (FL), and URS/Berger Joint Venture & Washington
Group (D.C)
Property under AFCAP Contracts located in Kyrgyzstan, Afghanistan, Iraq,
Kuwait, Qatar, and UAE
Government Property Clause: 52.245-5 Block Changed to 52.245-1
Property Administration (SPA) delegated to DCMA Iraq and Afghanistan
Through JCC-I/A
Prime PA for AFCAP is Mrs. Maria McNamara (713) 718-3602 x 142
9
Two, other Major Programs being administered in
CENTCOM:
U.S. Army Combat Services Support Contract Kuwait
(CSSC-K)
U.S. Army Bulk Fuel Mission
These Programs/Contracts are administered by DCMA Soldier
Systems & CAP - Phoenix , as well.
10
U.S. Army Combat Services Support Contract Kuwait
(CSSC-K)
Program Office U.S. Army Central Command Kuwait (ARCENT-KU)
Prime Contractor Combat Support Associates (CSA) (FT Worth, TX)
CSA LTD (Kuwait)
Property under CSSC-K located throughout Kuwait
Total Property Line items 74.8K Value $ 204.5M
Support Property Administration (SPA) delegated to DCMA Iraq
Prime PA for CSSC-K is Mrs. Maria McNamara (713) 718-3602 x 142
11
U.S. Army Bulk Fuel Mission Kuwait
Program Office U.S. Army Contracting Command
Prime Contractor KBR TX
bulk fuel farm operations at specific military sites near Shuiba Port and
at Camp Buehring in Kuwait
Total Property Line items 305 Value $ 9.3M
Support Property Administration (SPA) delegated to DCMA Iraq
Prime PA for BULK FUEL MISSION is Mrs. Maria McNamara (713)
718-3602 x 142
12
Contracts for services and goods written in AOR
Delegated for administration by DCMA Iraq and Afghanistan directly
in theater by JCCI/A
Prime Property Administration is within the AOR
Not all TWCA contracts are delegated/assigned to DCMA
Contracts are fixed price and cost type
Contracts may have special provisions such as residue material
being given to the Host Nation upon completion etc.
13
CAP PROGRAM and TWCA Government
Property Locations CENTCOM
LOGCAP III Property
LOGCAP IV Property
AFCAP Property
U.S. Army Bulk Fuel Mission
CSSC-K-Kuwait
TWCA Contracts
As of August 09
Lesson Summary
Types of programs / contracts assigned to PA
Civil Augmentation Programs (CAP) i.e. LOGCAP and AFCAP
Combat Services Support Contracts
Special Mission Contract
Process for assigning contracts to PA
All contracts requiring administration in the CENTCOM AOR are
assigned by the Joint Contracting Command Iraq/Afghanistan (JCC-
I/A)
Contract Administration is Delegated to DCMA Iraq and Afghanistan
by JCC-I/A
Specialized requirements for certain contracts
Residue materiel transfer to the Host Nation
14
15
Circle your answer for each test item.
The test is student graded (trade/pass to your nearest
student).
correct answers. X incorrect answers.
All tests are collected at the end of the lesson.
16
1. All contracts requiring administration in the CENTCOM AOR are assigned by
A) DCMA
B) U.S. Army Contracting Command
C) Joint Contracting Command Iraq/Afghanistan
C) Joint Contracting Command Iraq/Afghanistan
2. LOGCAP III and IV, and AFCAP are examples of
A) Special Mission Contracts
B) Civil Augmentation Programs
C) Theater Wide Contracts
B) Civil Augmentation Programs
3. For all CAP, Major Combat Support Service and Special Mission Contracts prime contract
administration rests with DCMA Solider and CAP Phoenix.
(True/False)
True
17
4. All CCAS administrated contracts are fixed price.
(True/False)
False
5. All TWCA contracts are delegated/assigned to DCMA.
(True/False)
False
6. All contracts assigned for property administration to DCMA Iraq, Kuwait or Afghanistan all
have the current Government property Clause 52. 245-1.
(True/False)
False

Statement of

JOHN G. CAPORAL, GS-15
Deputy Director
U.S. Air Force Office of Small Business Programs

Before the

House Committee on Small Business

Contracting and Workforce Subcommittee

November 8, 2011

Embargoed until released
by the House Small Business Committee

1

Thank You for the opportunity to discuss the Air Force Small Business program. Our
office reports directly to the Under Secretary of the Air Force. We provide policy, advice,
guidance, training, and innovative strategies to ensure quality solutions for Air Force acquisition
teams to maximize opportunities for small businesses. Our vision is to ensure maximum
practicable opportunities for small businesses at the earliest stages of acquisition planning and to
make small business the solution of choice to meet the needs of the Air Force mission. We strive
to promote a culture of shared responsibility with our acquisition partners recognizing the critical
role small business plays not only in advancing the mission but in strengthening our nations
industrial base. We are more than advocates for small business. We are advocates for the Air
Force mission using small business solutions.

In fiscal year (FY) 2010, the Air Force awarded $8.8 billion dollars to small businesses
(15.4% of total procurement dollars).
1
In FY 2011 the awarded amount was $8.2 million or
14.5 %. While this represents a drop in dollars and percentages, over the previous year, 2011
saw an unprecedented level of commitment to the small business program from our Air Force
leaders at all levels. Our fourth quarter numbers began to rise in conjunction with the heightened
attention. Despite a tough budget environment, we believe this increased high level support of
the program, reflected in our future acquisition strategies, will pay dividends in the coming
years. Under our new director, Mr. Joseph M. McDade, we are re-invigorating the role that
small business plays at the prime and subcontracting levels in all of our acquisitions. We are
developing a new plan that we believe will receive the endorsement of our senior leaders, leading
to a higher level of achievement in the coming years.

1
These are preliminary totals that have not been validated by the Department of Defense.
2

to a higher level of achievement in the coming years.

Shaw AFB, one of our most active operational installations, has done a superb job of
supporting the Air Force Small Business program. They awarded over $78 million dollars to
small businesses in FY 201186.66% of their total spends, exceeding their goal of 81%.
2
Air
Combat Command (ACC), Shaw AFBs parent command, also had a great year for small
business awards. The ACC awarded a total of $836 million or 41.8% to small businesses. In
fact, 11 of the 13 major commands (MAJCOMS) awarded more than the statutory goal of 23%
ranging from 25% to 78%. The challenge is with the product mix of our major weapons system
commands that obligate more than 70% of our budget, yet award less than 10% of prime contract
dollars to small businesses. One of our goals for FY 2012 is to increase the market research and
data analysis needed to increase prime contract awards in those two MAJCOMS.

Our strategic goals in FY 2012 include: 1) finding the right balance between enterprise
buying strategies (strategic sourcing) and making sure that our small businesses are full partners
in the process and are utilized to the maximum extent. 2) focusing more intensely on market
analysis to identify additional opportunities for small business in this time of declining budgets
and 3) finding the right acquisition strategies for small business when a long term contract is
written. These include providing on ramp opportunities, which allow small businesses not
selected initially another opportunity to compete later in the ordering period and encouraging

2
These are preliminary totals that have not been validated by the Department of Defense.
3

more teaming arrangements between small businesses to allow them to compete on longer,
higher dollar contracts.

In closing, I would like to share a story about a small business contractor who performs
work here at Shaw AFB. ISPHI Information Technologies, Inc., a Mount Pleasant South
Carolina small business, has provided over 25,000 hours of logistical support for contingency
operations, exercises, war ready material pre-positioning, maintenance and day to day planning
efforts in support of the contingency/deployed personnel for the Air Force Central Command
Area of Responsibility (AOR). The invaluable work performed under this contract demonstrates
that while achieving Air Force small business goals are important, its the support provided to
the warfighter that showcases the true value of the program. We need to develop strategies that
ensure that companies like ISHPI Information Technologies continue to thrive and grow. Its
the jobs provided to the local communities and the innovation, agility and value they provide to
the taxpayer that needs to be encouraged. Finding and helping small businesses like ISHPI
succeed and contribute to the mission is what motivates all 145 of our small business specialists!
There are success stories like this at every installation. Our aim is to develop more.

Thank You for the opportunity to address you today. I will be glad to take any questions
you might have.
NET Training
Simplified Acquisition Procedures
(SAP)
AFFTC/PKC
Mar 12
Integrity ~ Service ~ Excellence
War- Winning Capabilities On Time, On Cost

Air Force Materiel Command
PAGE 9 AND 35 AIR FORCE TRAINING PROCEDURES

2

Course Overview

Length 2 hours
Method of delivery - Presentation
Course contents
Simplified Acquisition Procedures as described in FAR
Part 13 and other references

3
Overview
Definition

Criteria for Use

Advantages

SAP Methods

Summary

4
Definition
Simplified Acquisition Procedures (SAP)
(formerly referred to as Small Purchases )
use acquisition methods prescribed in FAR
Part 13 for the acquisition of supplies and
services including construction, research and
development and commercial items, the
aggregate amount of which does not exceed
the SAT (Simplified Acquisition Threshold; i.e.
$150K)
1

FAR 13.000

5
Definition
SAPs are contracting methods designed to
streamline the acquisition process and
facilitate the procurement of goods and
services quickly and easily. The results
include less paperwork and lower costs for
both the contractor and the government.

6
Definition
Important SAP Terminology:

Simplified Acquisition Threshold (SAT):
$150,000 for non-commercial purchases
1

Micro-Purchase:
Purchases which do not exceed the Micro-Purchase threshold

Micro-Purchase Threshold:
2

$3,000 for Supplies:
$2,500 for Services
$2,000 for Construction

1
Note: SAPs awarded in Micro-purchase to $150K range are reserved for Small Businesses

2
Contingency Contracting micro-purchase threshold for supplies/services is $15,000 in USA
and $25,000 outside USA

7
Criteria for Use
Use one of the acquisition methods prescribed in FAR
Part 13:
Government-Wide Purchase Card (FAR 13.301)
Purchase Orders (FAR 13.302)
Blanket Purchase Agreements (FAR 13.303)
Imprest Funds & Third Party Drafts (FAR 13.305)
SF 44, Purchase Order-Invoice-Voucher (FAR 13.306)

Aggregate amount of acquisition does not [generally
1
]
exceed SAT (Simplified Acquisition Threshold):
SAT amount is $150K
1
Exception: amount is $6.5M for Commercial Items (FAR 13.500)
1
No longer applicable as of 1JAN2012

8
Criteria for Use
Requirement not available through a required source
in FAR Part 8
(e.g., Federal Prison Industries, Committee for Purchase from
People Who are Blind or Severely Disabled, and Federal Supply
Schedule contracts)

No other procurement instrument is in place to satisfy
the requirement (e.g. Indefinite Delivery contract, Other
Established Contracts, etc.)

Requirement is well-defined

FAR 13.003(a)

9
Advantages
Faster than other acquisition methods
Shorter solicitations
Faster turnaround times

Saves money for Government and Contractor
Less paperwork
Less manpower
Reduced administrative costs

Promotes Small Business Opportunities
Acquisitions exceeding Micro-purchase but not over $150K (SAT)
are set-aside for Small Businesses (FAR 19.502-2)

10
Five SAP Methods
Buying Methods Prescribed in FAR Part 13

1. Government-Wide Purchase Card
2. Purchase Orders
3. Blanket Purchase Agreements
4. Imprest Funds & Third Party Drafts
5. SF 44, Purchase Order-Invoice-Voucher

11
Government-Wide
Purchase Card Program
#1
FAR 13.301

12
What is the Purchase Card?
Simply put, its a VISA card

Contract between GSA and U.S. Bank

Used, primarily, for micro-purchases
< $2,000 for Construction
< $2,500 for Services
< $3000 for Supplies

Pre-priced government contracts are
exceptions <$25K

13
FAR 13.301
GSA CONTRACT (with the Bank)
AFI 64-117- AF Govt-Wide Purchase Card Program
AFI 65-601 v1 - Budget Guidance and Procedures

WHAT GOVERNS THE
PURCHASE CARD PROGRAM?

14
How-to acquire Micro-purchases
without using GPC
AF Policy: A written determination from a
member of SES, Flag Officer, or General
Officer is required for purchases of Micro-
Purchases
1
NOT purchased using the
Purchase Card (Ref. 2 Oct 98 memorandum, Subject:
Streamlined Payment Practices for Award/Orders Valued at or
below the Micro-Purchase Threshold, signed by Dave Oliver,
Principal Deputy, Under Secretary of Defense)
1
Micro-purchases:
< $2,000 for Construction
< $2,500 for Services
< $3000 for Supplies

15
Items Typically Acquired
Homeland Defense
Computers, Software and Computer Equipment
Construction < $2000
Office Supplies
Furniture
Electronics
Nonpersonal Services < $2500

16
Cardholder Expectations
of Vendors
Prompt processing of charges
Prompt delivery/service
Quick resolution of problems
FOB destination pricing
Ensuring items are covered by a government
contract if purchase exceeds micro-purchase
threshold

17
Cardholder
Responsibilities
Proper Use
Maximizing competition
Fair and reasonable pricing
Training
Tracking delivery and warranty
Follow all simplified acquisition procedures as identified in
FAR Part 13
Equipment accountability
Buying Green
IRS reporting/withstand audits

18
Responsibilities of
GPC Team
Billing Official
Routine oversight of cardholders

Surveillances
IAW AFI 64-117 Purchase Card Regulation
Mandatory Sources
Documentation
Purchases > Micro-purchase threshold
Split Purchases
Abuses

19
Benefits to Vendors
VISA capable vendors are preferred suppliers
FAST Payment
Usually 24 hrs
Maximum 3 calendar days
Bypass invoicing process, thus bypassing DFAS
Dealing directly with end user/customer

20
E-GPC
AFMC units must obtain office supplies
utilizing their GPC only from vendors who
offer goods through:
GSA or AF Advantage (www.afadvantage.gov)
DoD EMALL (www.emall.dla.mil)

21
Purchase Orders
A purchase order, when issued by the Government, means an
offer by the Government to buy supplies or services, at the stated
price in the order and upon specified terms and conditions
contained in the order

Award amount is < Micro-purchase Threshold and < $150K (SAT)
Unless commercial < Micro-purchase Threshold to <=$6.5M

Purchase Order itself shall contain at minimum
Quantities of supplies or scope of services
Delivery date or period of performance
F.O.B. destination unless valid reason otherwise

Usually awarded unilaterally (only CO signs)

Becomes a binding Contract versus offer when contractor performs
or if contractor signs the order
#2
FAR 13.302

22
Purchase Orders
Types
Priced (Preferred)
Usually Firm Fixed price

Unpriced
Price is not set at time of issuance of order
Impractical to obtain pricing in advance
See FAR 13.302-2 for restrictions on use
Monetary limitations shall be placed on the order
subject to adjustment when price is determined

23
Purchase Orders
Solicitation Procedures
- Oral
Noncomplex buys
Acquisition does not exceed SAT
Only when buy excepted from synopsis requirement
- Written
SOW or special clauses are necessary
Oral quotes are not economical or practical
Construction buy > $2,000
Solicitation Forms
SF 18, Request for Quotation
SF 1449, Solicitation/Contract/Order for Commercial Items
SF 1442, Solicitation, Offer and Award (Construction, Alteration or
Repair)
DD 1155, Order for Supplies or Services

FAR 13.106-1

24
Purchase Orders
Award Forms
SF 1149 - Solicitation/Contract/Order for Commercial Items
DD 1155 Order for Supplies or Services
SF 1442 - Solicitation, Offer and Award (Construction, Alteration or
Repair)

FAR 13.307

25
Blanket Purchase Agreements
Simplified method of obtaining anticipated repetitive needs for
supplies and services by establishing charge accounts
1
with
qualified sources of supply

Initiated for a broad class of goods or services that are generally purchased but
exact items, quantities and delivery requirements are not known
Sample supplies and services that could be purchased with individual BPAs
Electrical supplies
Office supplies
Boiler Water Treatment Services
Port-a-potty Services

May award to multiple contractors
2

Orders are placed through Calls to Contractor
Verbal or written
Centralized (Contracting Office)
Decentralized (customer) if authorized
--------------------------------------------------------------------------------------------------------------------------------

#3
1
Charge Account A credit arrangement in which a customer receives purchased goods or services before paying for them (i.e.
no up-front obligation (PR))
FAR 13.303

2
Multiple Award BPAs - buying office must develop and document a game plan on how orders will be fairly distributed among
awardees (e.g. based upon rotation, lowest price, delivery times, etc.)

26
NOTE

There are two types of BPAs:
Traditional BPA
Subject to FAR Part 13

GSA Schedule BPAs
Aka Multiple Award Schedule (MAS) BPAs
Subject to FAR 8.405-3
FAR 13.303-2

27
BPA Forms
- SF 1449, Solicitation/Contract/Order for Commercial Items, or
- DD 1155, Order for Supplies or Services

BPA award itself shall contain, at minimum, the following terms and
conditions:

- Description of the Agreement
- General description of supplies or services that will be furnished

- Extent of Obligation
Govt. is only obligated to pay for actual orders placed

- Authorized Callers and their dollar limitation per order (call)

- Delivery Tickets
- Require that deliveries be accompanied with Sales slips

- Invoicing Instructions

- Price List (mandatory for decentralized ordering)

FAR 13.303-3

28
Verbal or written
If not otherwise limited, Individual calls cannot exceed:
$150K (SAT) Non-Commercial
$6.5 M * Commercial *FAR 13.5 No longer applicable
Government only obligated to pay for placed Orders
Contractor can only take Orders from authorized
callers
Callers must keep a log of calls (Call Log)
What ordered; when ordered; price, etc.
Reconcile delivered items/services against Call Log
Some offices prohibit callers from receiving items (check and
balance)

29
Ordering (Calls, contd)
Centralized
Calls placed by Contracting Office (Buyer or CO)
Items do not have to be pre-priced in award
Fair and reasonable price needs to be determined and
documented when ordering

Decentralized
Calls placed by functional organization (the customer)
Items or services are pre-priced (Price Lists)
Negotiated price list are established up-front with award
Price lists are renegotiated at various agreed upon time
intervals (e.g. 1 yr)
Customer can only order from the price list
Annual CO review of BPA calls/procedures/documentation
required
IG 5313.303-3

30
Imprest Funds & Third Party Drafts

Imprest Funds and Third Party Draft payment methods
Used in rare circumstances where Electronic Funds Transfer (EFT)
method of payment is waived for:
National Security
Military Operations
Natural Disasters
Foreign Government does not support EFT payment

Imprest Funds
Cash payments
<=$500 unless other amount is authorized by Agency Head

Third Party Draft
Check-like payments
<=$2,500 unless authorized at a higher level in accordance with
Treasury restrictions

#4
FAR 13.305

31
An imprest fund is a fixed-cash or petty-cash fund in the form of
currency or coin that has been advanced as Funds Held Outside of
Treasury. The imprest fund cash is charged to a specific appropriation
account by a Government agency official to an authorized cashier for
cash payment or other cash requirement as specifically authorized.
The fund may be of a revolving type, replenished to the fixed amount
as spent or used, or may be of a stationary nature such as a change-
making fund.
Cash please!
o
o

32

Third party drafts are check-like payment instruments used by a
Federal agency, drawn against and paid by an outside-the-government
service provider that may be a financial institution. After the drafts,
which have been furnished by the service provider, are issued by the
agency and presented at the service providers financial institution, the
service provider bills the agency for the amount of the drafts
plus the service fees.
Third party draft - means an agency bank draft, similar to a check,
that is used to acquire and to pay for supplies and services.

33
SF 44
Purchase Order-Invoice-Voucher

U.S GOVERNMENT

PURCHASE ORDERINVOICEVOUCHER
DATE OF ORDER

1 Jan 99

F04700-99-V-0301
PRINT NAME AND ADDRESS OF SELLER (Number, Street, City, and State)*

P HOME DEPOT
A 44601 Valley Central Way
Y Lancaster CA 93536
E
E
FURNISH SUPPLIES OR SERVICES TO (Name and address)*

95 CEG/CEX
45 North Lancaster Blvd.
Edwards AFB, CA 93524
SUPPLIES OR SERVICES QUANTITY UNIT PRICE AMOUNT

2 by 4 by 8 Lumber

100 Each

$2.00

$200.00
Plywood, Pine, Yellow, #1 100 Sheets $1.50 $150.00
Shovels 20 Each $10.00 $200.00
Sand Bags 50 Each $1.00 $50.00
Tents 20 Each $50.00 $1000.00

TOTAL $1,600
DISCOUNT TERMS

NET % 30 DAYS
AGENCY NAME AND BILLING ADDRESS*

P AFFTC/FM
A 62 North Wolfe Ave
Y Edwards AFB, CA 93524
O
R DATE INVOICE RECEIVED
1 Jan 99
OREDERED BY (Signature and title)
Rabbanai T. Morgan, Contracting Officer
PURPOSE AND ACCOUNTING DATA

5703400 300 8044 313012 02 409 678900 ESP:4F (SAMPLE ONLY. YOU MUST GET A VALID
FUND CITE FROM BUDGET)
PURCHASERTo sign below for over-the-counter delivery of items
RECEIVED BY
Rabbanai T. Morgan, AFFTC/PK, 30 North Wolfe Ave, EAFB CA 93524, (661) 277-0105
TITLE
Contracting Officer
DATE
1 Jan 99
SELLERPlease read instructions on Copy 2
PAYMENT
RECEIVED

PAYMENT
REQUESTED $1,600.00
NO FURTHER INVOICE NEED BE SUBMITTED
SELLER

BY Mark A. Jones
(Signature)
DATE

1 Jan 99
DIFFERENCES

ACCOUNT CERTFIED:
CORRECT FOR
I certify that this account is correct and proper
for payment in the amount of

(Authorized certifying officer)

BY
PAID BY CASH

OR...
(Check No.)
DATE PAID

VOUCHER NO.
* PLEASE INCLUDE 1. SELLERS INVOICE STANDARD FORM44a (REV. 10-83)
ZIP CODE (See Instructions on Copy 2) PRESCRIBED BY GSA,
FAR (48 CFR) 53.213(c )

LAST ITEM
#5
The SF 44, Purchase Order -- Invoice -- Voucher, is a multipurpose
pocket-size purchase order form designed primarily for on-the-
spot, over-the-counter purchases of supplies and nonpersonal
services while away from the purchasing office or at isolated
activities (especially disaster and Contingency operations). Its an
all-in-one document. Can be used as a receiving report, invoice,
and public voucher.
Double click on either item to enlarge
FAR 13.306

34
SF 44

Order NTE Micro-purchase Threshold
1

-unless disaster or contingency buy (<= SAT)

Supplies or services are immediately available

Only one delivery and one payment

No clauses

1
Micro-purchase Threshold:
$2,000 for Construction
$2,500 for Services
$3000 for Supplies

35
Summary
Simplified Acquisition Procedures
Five (5) Acquisition Procedures prescribed in FAR 13

For well-defined requirements

No other procurement instrument in place or mandated
to fill requirement

Faster and more administratively economical than other
acquisition methods

Promote small businesses (SB)
Full SB set-aside for acquisitions < Micro-purchase to $100K (SAT)

36
Government-Wide
Purchase Card Program
#1
VISA Card
-Primarily used for micro-purchase buys
-Exception: can be used as payment vehicle on pre-priced
govt. contract < $25K where authorized

FAR 13.301

37
Purchase Orders
A purchase order, when issued by the Government,
means an offer by the Government to buy supplies or
services, at the stated price in the order and upon
specified terms and conditions contained in the order

Award amount > Micro-purchase and <=$100K (SAT)
Unless commercial > Micro-purchase and <=$5.5M

Becomes a binding Contract versus offer when
contractor performs or if contractor signs the order
#2
FAR 13.302

38
Simplified method of obtaining anticipated repetitive
needs for supplies and services by establishing
charge accounts with qualified sources of supply

Initiated for a broad class of goods or services that are
generally purchased but exact items, quantities and
delivery requirements are not known

Verbal or written
Centralized (Contracting Office)
Decentralized (customer) if authorized

#3

FAR 13.303

39

Used in rare circumstances where Electronic Funds
Transfer (EFT) method of payment is waived

Imprest Funds
Cash payments
<=$500

Third Party Draft
Check-like payments
<=$2,500

#4
FAR 13.305

40
SF 44

#5
The SF 44, Purchase Order -- Invoice -- Voucher, is a multipurpose
pocket-size purchase order form designed primarily for on-the-
spot, over-the-counter purchases of supplies and nonpersonal
services while away from the purchasing office or at isolated
activities (especially disaster and Contingency operations). Its an
all-in-one document. Can be used as a receiving report, invoice,
and public voucher.
Order NTE micro-purchase
-Unless disaster or contingency buy (<=$100K)
FAR 13.306

41
Summary

1

August 29, 2013

Via E-mail

Peter Verchinski, Esq.
Office of General Counsel
U.S. Government Accountability Office
Washington, DC 20548
E-mail: verchinskip@gao.gov

Re: SBA Comments on Protest of Latvian Connection LLC
(B-408633)

Dear Mr. Verchinski:

Your office has requested that the U.S. Small Business Administration (SBA or
Agency) provide its comments on the protest of the Department of the Air Force (Air
Force) procurement under Request for Quotations Number FA5709-13-T-0039 filed by
Latvian Connection LLC (Latvian). Based upon our review of the law in this area, we
believe the Air Force failed to comply with its legal obligation to set aside the subject
procurement for competition among small business concerns. It is therefore SBAs
opinion this protest should be sustained.

BACKGROUND

On August 2, 2013, Latvian filed a pre-award protest of the decision by the Air Force
to not set aside the subject procurement for competition among small business concerns.
In response, the Air Force moved on August 12, 2013 to dismiss Latvians protest
alleging, inter alia, that the Small Business Act (15 U.S.C. 631 et seq.) does not have
extraterritorial effect and that SBAs views on this topic are entitled to no deference.
GAO invited SBA to provide its comments on this dispute no later than August 29, 2013.

DISCUSSION

In its Request for Dismissal, the Air Force aggressively asserts that SBA has no role
in this dispute, that the Agencys views are irrelevant, and that the Agency exists merely
to serve as an advisory body for the Office of Federal Procurement Policy (OFPP) and
the Federal Acquisition Regulations (FAR) Council. SBA does not concur with this
baseless and distorted view of the Agencys authority and mission. Neither does the law.

U.S. SMALL BUSINESS ADMINISTRATION
WASHINGTON, D.C. 20416
OFFICE OF GENERAL COUNSEL

2
With the passage of Pub. L. No. 85-536 on July 18, 1958, Congress added the Small
Business Act (hereinafter the Act) to the United States Code. In so doing, Congress also
explicitly designated the executive branch agency that would be responsible for
administering the programs and requirements established under that Act:

In order to carry out the policies of this Act there is hereby
created an agency under the name Small Business
Administration (herein referred to as the Administration),
which Administration shall be under the general direction
and supervision of the President and shall not be affiliated
with or be within any other agency or department of the
Federal Government.
1

Notably, Congress did not give responsibility for implementing the Act to OFPP or the
FAR Council as the Air Force has alleged. Instead, as the Court of Appeals for the Ninth
Circuit has noted, it is SBA that is charged with carrying out the policies of the Act and
issuing such rules and regulations as it deems necessary.
2

Among the many policies Congress established under the Small Business Act is that
of insuring that a fair proportion of the total purchases and contracts or subcontracts for
property and services for the Government be placed with small business enterprises.
3

To effectuate this purpose, Congress stipulated that small business concerns shall
receive any award or contract or any part thereof as to which it is determined to be
in the interest of assuring that a fair proportion of the total purchases and contracts for
property and services for the Government in each industry category are placed with
small-business concerns
4

One of the primary mechanisms Congress created for implementing this policy of
promoting participation in the federal procurement process by small business concerns is
the automatic set-aside requirement commonly known as the Rule of Two. This
requirement holds that:

Each contract for the purchase of goods and services that
has an anticipated value greater than $2,500 but not greater
than $100,000
5
shall be reserved exclusively for small
business concerns unless the contracting officer is unable to
obtain offers from two or more small business concerns
that are competitive with market prices and are competitive

1
15 U.S.C. 633(a).
2
Contract Management, Inc. v. Rumsfeld, 434 F.3d 1145, 1147 (2006).
3
15 U.S.C. 631(a).
4
Id. at 644(a).
5
Pursuant to 41 U.S.C. 431a(a)(1), the application of both the lower limit of this range (i.e., the micropurchase threshold) and
the upper limit (i.e., the simplified acquisition threshold) may be adjusted for inflation. Moreover, 41 U.S.C. 1903(b) further
expands this range with regard to procurements made in support of contingency operations.
3
with regard to the quality and delivery of the goods or
services being purchased.
6

Notably, 15 U.S.C. 644(j)(1) contains no language placing geographic limitations or
restrictions on its application, either in terms of the location of the procuring activity
itself or the place of performance of the contract.

As a broader review of the law makes clear, it is evident that where Congress intends
for the small business contracting policies established under the Act to be restricted from
applying extraterritorially, it possesses the knowledge and wherewithal to explicitly do
so. For example, Congress has expressly stipulated in 15 U.S.C. 637(d)(2) that those
policies promoting the participation of small business concerns as subcontractors which
are typically incorporated in federal prime contracts do not apply to contracts which will
be performed entirely outside of any State, territory, or possession of the United States,
the District of Columbia, or the Commonwealth of Puerto Rico.

Thus, in the case of 637(d)(2), Congress considered the issue of whether a particular
policy advanced under the Small Business Act should be applied extraterritorially and
expressly decided against permitting such an approach. The inference to be drawn, then,
is that there is a baseline presumption on the part of Congress that the policies and
requirements it established under the Act are to apply all Federal procurements without
regard to geography unless specifically indicated otherwise. This reading of the Act and
its policies is consistent with the avowed intent of Congress that small business concerns
must be afforded the maximum practicable opportunity to participate in the performance
of contracts let by any Federal agency.
7

The Air Force is correct in noting that the Act is silent with regard to whether the
automatic small business set-aside requirement of 644(j)(1) should apply
extraterritorially. However, as the Supreme Court has held, where a statute is silent or
ambiguous with respect to the specific issue, the question for the court is whether the
agencys answer is based on a permissible construction of the statue.
8
While, as noted
above, the Air Force has farcically attempted to assert that OFPP is the agency
responsible for implementing and administering the policies established under the Act, in
point of fact it is instead SBA that is charged with that duty. The automatic set-aside
requirement at issue here was established under the Small Business Act. As GAO and
various Federal courts have held, where an issue arises regarding the interpretation and
administration of a policy or program created under the Act, it is the views of SBA, rather
than those of some other agency, which are entitled to considerable deference.
9

6
15 U.S.C. 644(j)(1).
7
15 U.S.C. 637(d)(1). See, also, 15 U.S.C. 631(a), 631(j)(1), 644(e)(1), and 644(g)(1)(B).
8
National Assn of Home Builders v. Defenders of Wildlife, 551 U.S. 644, 665 (2007) (quoting Chevron U.S.A., Inc. v. Natural
Resources Defense Council, Inc., 467 U.S. 837, 842-843 (1984)).
9
Matter of General Services Administration Reconsideration, B-406040.2 (Oct. 4, 2012); Contract Management, Inc. v.
Rumsfeld, 291 F. Supp. 1166, 1177 (D. Hawaii 2003); McCall Stock Farms, Inc. v. U.S., 14 F.3d 1562, 1567 (CAFC 1993); Young-
Robinson Associates, Inc. v. U.S., 760 F. Supp. 212, 217 (D.D.C. 1991).
4
SBAs views on the issue of the automatic small business set-aside requirement are
expressed in the Agencys regulation implementing 644(j)(1), which appears at 13
C.F.R. 125.2(f)(1). In accordance with that provision contracting officers:

shall set aside any acquisition with an anticipated dollar
value exceeding the Micropurchase Threshold but not
exceeding the Simplified Acquisition Threshold for
small business concerns when there is a reasonable
expectation that offers will be obtained from at least two
small business concerns that are competitive in terms of
quality and delivery and award will be made at fair market
prices.

Consistent with Congress decision to refrain from imposing any geographic
limitations on the application of 15 U.S.C. 644(j)(1), SBA elected to not place any
location-based restrictions on the application of 13 C.F.R. 125.2(f)(1). In that regard,
the small business set-aside requirement and its implementing regulations are identical to
those found in another area of SBAs responsibility, the Certificate of Competency
(COC) program. The COC program was also established under the Small Business Act
10

and was implemented by SBA via the Agencys regulations,
11
which then served as the
basis for the FAR provisions regarding that program. As is the case with 644(j)(1),
637(d)(7)(A) does not include any language prohibiting the extraterritorial application
of the requirement it imposes, nor do SBAs implementing regulations.

In a pair of protests that came before GAO involving the Panama Canal Commission
(the Commission), GAO conclusively addressed the issue of the extraterritorial
application of 637(d)(7)(A). In the first case, a third party protester alleged that a
contracting officer for the Commission improperly relied upon SBAs COC process in
awarding a contract calling for the delivery of goods outside the United States.
12

However, the Comptroller General denied the protest, holding instead that: There is
nothing in either the Small Business Act or SBAs regulations implementing the Act that
restricts COC procedures to contracts awarded or items to be delivered in the United
States.
13
While both the Act and SBAs regulations were thus silent on the issue of the
extraterritorial application of 637(d)(7)(A), the Comptroller General noted that SBA
has informed us that it believes that the COC program is not so limited. We therefore find
no basis to object to the COC referral.
14

Six years after the Eastern Marine protest, the Commission asserted before GAO that
it did not have to comply with the requirements imposed under 637(d)(7)(A) due to its
belief that the Small Business Act was without force beyond territorial boundaries of the
United States.
15
As the Air Force does here, the Commission attempted to hinge its

10
15 U.S.C. 637(b)(7)(A).
11
13 C.F.R. 125.5.
12
Matter of Eastern Marine, Inc., 63 Comp. Gen. 551 (1984).
13
Id.
14
Id. at 2.
15
Matter of Discount Machinery & Equipment, Inc., 70 Comp. Gen. 108 (1990).
5
position against the extraterritorial application of the Act upon the statement in FAR
19.000(b) that the small business contracting rules of FAR Part 19 apply only within
the United States or its outlying areas. Again, as the Air Force argues here, the
Commission claimed that SBA had no role in that dispute and that its views on the matter
were not entitled to any deference under the Chevron standard of review. It was instead
the Commissions view that the FAR and the body that administered it which were the
controlling authorities.

GAO did not concur with that assessment. In his decision sustaining the Discount
Machinery protest, the Comptroller General observed that nothing in 637(d)(7)(A), nor
in any other provision of the Small Business Act, imposed any geographical limitation
which would exempt the Commission from having to comply with its procurement
requirements.
16
Specifically, the Comptroller General found that: As evidenced by the
language of the Small Business Act, Congress intended the SBA to have broad review
authority where an American small business concern is involved.
17
Moreover, it was the
Comptroller Generals view that:

Since the Small Business Act evidences an intent to
implement a government-wide policy fostering American
small business interests, and since the Panama Canal
Commission is an executive agency within the meaning of
the Act, we see no basis to conclude that the Commissions
procurements are exempted from the Acts coverage
merely because the agency is physically located in the
Panama Canal Zone.
18

Thus, in two prior protests that involved a procurement requirement imposed under
the Small Business Act and implemented by SBA via regulation, GAO found that mere
silence on the part of the statute and the accompanying rule with regard to the
extraterritorial effect of that requirement was not sufficient basis for concluding that the
policy sought to advanced must stop at the waters edge.

The Air Force has correctly observed that the decisions of Congress and the SBA to
not place any geographical restrictions upon the application of the automatic small
business set-aside requirement are in direct contrast to the approach taken by FAR Part
19. As previously noted, under the express terms of 48 C.F.R. 19.000(b), the small
business set-aside rules of FAR Part 19 apply only within the United States or its outlying
areas. However, in both the Eastern Marine and Discount Machinery protests, GAO
concluded that FAR 19.000(b) must yield where it conflicts with a provision of the
Small Business Act and SBAs interpretation and regulatory implementation of that
provision. The Court of Federal Claims has similarly concluded that SBAs
implementation of a provision of the Small Business Act via regulation must be viewed

16
Id. at 2.
17
Id.
18
Id. at 3.
6
as controlling where there is an inconsistent FAR rule.
19
As such, it is SBAs
interpretation of 644(j)(1) which must govern here and not FAR 19.000(b).

Additionally, while the Air Force attempts to buttress its arguments by relying upon
the Supreme Courts holding in EEOC v. Arabian American Oil Co.
20
that Title VII of
the Civil Rights Act of 1964 does not apply extraterritorially to regulate the employment
practices of American employers who employ American citizens abroad, SBA believes
that case is not controlling in this instance. While the Court did decide against applying
Title VII outside the United States on the ground that the statute did not, by its own
terms, explicitly apply to extraterritorial conduct, the concerns present in that case are
absent with regard to the instant protest.

If the Court had held that Title VII applied abroad, the United States would have been
interfering in the regulation of workplace relations in foreign countries. The automatic
small business set-aside requirement at issue here poses no such threat to the comity of
nations. The government of Oman cannot possibly care whether the U.S. Air Force buys
supplies from a large American business or a small American business. That is a decision
which solely affects the United States and does not infringe in any way upon the national
sovereignty of Oman.

Furthermore, in the Arabian American Oil Co. case, the Court noted that Congress,
in enacting Title VII, did not confer upon the EEOC authority to promulgate rules or
regulations.
21
As such, the Court did not feel that the EEOCs views regarding the
extraterritorial application of Title VII were entitled to much in the way of deference.
22

This is in stark contrast to the Small Business Act, which expressly authorizes the SBA
Administrator to make such rules and regulations as he deems necessary to carry out the
authority vested in him by or pursuant to this Act.
23
Therefore, given that the concerns
present in Arabian American Oil Co. are absent here and that SBAs views are entitled to
considerably more deference than were the EEOCs, the case relied upon by the Air
Force is of questionable relevance in this instance.

Moreover, even if Arabian American Oil Co. were deemed to be controlling with
regard to the instant protest, it would still not preclude GAO from holding that 644(j)(1)
applies extraterritorially given the exception that opinion carved out for Lanham Act
24

cases. In Arabian American Oil Co., the Supreme Court noted that it had previously held
that the Lanham Act had extraterritorial effect despite the fact the statute itself was silent
upon the subject. The Court based this exception to the presumption against
extraterritoriality upon the fact that the Lanham Act broadly regulated all commerce. In
drafting Title VII, however, Congress employed a much narrower and limited definition

19
C&G Excavating, Inc. v. U.S., 32 Fed. Cl. 231, 239 (1994).
20
499 U.S. 244 (1991).
21
Id. at 257.
22
Id.
23
15 U.S.C. 634(b)(6).
24
15 U.S.C. 1051 et seq.
7
of commerce which the Court felt did not support such an expansive construction of
congressional intent with regard to extraterritoriality.
25

Given that 644(j)(1) applies broadly to each contract let by all executive branch
agencies rather than being restricted in its effect to select categories of contracts or to
procurements let only by certain agencies, it more closely resembles the Lanham Act than
it does Title VII. As such, SBA believes the language employed by Congress in drafting
644(j)(1) is broad enough to support an expansive construction of congressional intent
with regard to that provisions extraterritorial application.

Therefore, for each of the foregoing reasons and given Congress clear and repeated
statements of its desire to assiduously promote the participation of small business
concerns in the Federal procurement process, as well as the clearly demonstrated
approach Congress has taken in situations where it wishes to limit the extraterritorial
application of small business policies, the restrictive reading of the Small Business Act
urged by the Air Force in this case would seem contradictory and self-defeating.

CONCLUSION

It is SBAs view that the automatic small business set-aside requirement imposed
under 15 U.S.C. 644(j)(1) and 13 C.F.R. 125.2(f)(1) applies to this procurement. SBA
believes that restricting the application of this requirement solely to contracts that will be
awarded and/or performed within the United States and its outlying areas is inconsistent
with the intent of Congress, the policies established under the Small Business Act, SBAs
implementation of those policies, and GAO and Federal court precedent. As a result, it is
SBAs opinion that this protest should be sustained.

Thank you for affording SBA the opportunity to address the issues raised in this
protest.

Respectfully submitted,

/s/ Kevin R. Harber
______________________
Kevin R. Harber
Attorney Advisor
U.S. Small Business Administration
409 Third Street, S.W.
PH: 202-619-1602
FX: 202-481-2965
EM: kevin.harber@sba.gov

25
499 U.S. at 252.
8

cc: Behn M. Kelly, Esq.
Senior Trial Attorney
United States Air Force, Commercial Law & Litigation Directorate

Keven Barnes
Chief Executive Officer
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Friday federal headlines - March 29, 2013
Home News and Features Agencies USAID USAID Stories
USAID News
Why small business
contracting was rated
ineffective
Reason #1: Agencies fail to
meet the 23 percent small
businesses goal for the sixth
year in a row
Reason #2: Agencies aren't
complying with the law, which
requires that purchases or
service contracts worth less
than $150,000 go to small
businesses
Reason #3: Agencies did not
meet set-aside goals such as
those for women- and service-
disabled veteran-owned
businesses
(More primary source material
available on The Obama
Impact Resource Page)
When there are a
bunch of small
funding periods
[it] tends to
prevent agencies
Thursday - 9/20/2012, 3:57am EDT
By Jolie Lee
More Reports
Jolie Lee, web editor, Federal
News Radio
Download mp3
Small business contracting goal remains elusive

0
The
Obama administration has pushed agencies to increase
contracting opportunities with small businesses, most notably
creating a governmentwide task force to share best practices.Yet
the federal government, as a whole, has continued to miss its 23
percent small business contracting goal.
In scal 2011, federal agencies spent $91.5 billion on small
business contracts but were still $5.4 billion short, reaching 21.7
percent of the 23 percent goal. It was the sixth year in a row the
government missed the mark.
In addition to the overall 23 percent small business goal, agencies
have other targets they are asked to reach. Five percent of that 23
percent is supposed to go to women-owned businesses, 3 percent to
service-disabled veteran-owned businesses, 3 percent to Historically
Underutilized Business Zones (HUBZone), and 5 percent to small
disadvantaged businesses (SDB). The government only met one of
those goals in 2011 awarding SDBs 7.67 percent, or $32.4 billion,
of government contracts.
For these reasons, Federal News Radio rates the Obama
administration's impact on small business contracting as ineffective.
The rating is part of our special week-long, multimedia series, The
Obama Impact: Evaluating the Last Four Years. Throughout the
series, Federal News Radio examines 23 different ideas and initiatives
instituted by the Obama Administration and ranks them as effective,
ineffective or more progress needed.
Budget pressures
Tight budgets and questions about agency
funding levels may be one explanation for the
shortfalls, according to administration
ofcials.
"Obviously, 2011 presented some
headwinds," said John Shoraka, SBA's
associate administrator of government
contracting and business development. "We had a continuing resolution that
extended through the rst three quarters of the year. That brings a lot of
uncertainty and ambiguity to contracting ofcers. And when that happens, that
can hurt a lot of small business contracting opportunities in federal
procurement."
Joe Jordan, administrator of the Ofce of Federal Procurement Policy, also
pointed to uncertain budgets as one reason for the missed goal.
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from doing all of
the acquisition
forecasting that
they need.
Joe Jordan,
Ofce of Federal
Procurement Policy
There is no
accountability.
Period.
Cris Young,
American Small
Business Chamber of
Commerce
Other Acquisition
Initiatives Evaluated
Security clearance
Strategic sourcing
DoD acquisition
High-risk contracts
Insourcing
"When there are a bunch of small funding periods, [it] tends to prevent
agencies from doing all of the acquisition forecasting that they need," Jordan
said. "As we look forward, we have to take that as somewhat of a reality and
make sure we're working with agencies, even in continuing resolutions and not
full-year authorization bills, that they're doing that planning, that they're thinking
about, 'Hey, these are contracts that are going out no matter what and let's
make sure these get in the hands of a small business.'"
There is a "grain of truth" that tight budgets can squeeze small rms out of
government contracts, said Steven Koprince, a government contracts attorney
and partner at Petesh, Immel, Heeb & Hird LLP.
"For instance, instead of setting aside two contracts for small businesses, it
might be more advantageous from an administrative perspective to simply
issue one larger unrestricted. That sort of thing may indirectly lead to fewer small businesses receiving
awards," Koprince said.
But Koprince added that budgets alone do not entirely explain the missed goals.
Accountability
A bigger challenge to meeting the 23 percent goal is that while it has been mandated by Congressional
legislation, there are no penalties for agencies that don't hit the target.
"There is no accountability. Period," said Cris Young, president of the American
Small Business Chamber of Commerce.
Koprince agreed, saying, the SBA may "wag its nger" at an agency, but there
are "no teeth" behind the goal.
Young said the lack of accountability shows a lack of real commitment to
contracting with small businesses.
"If the President was sincerely committed to meeting these goals, we'd be
seeing total alarm and total commitment presidential mandates and action.
Instead, what we have is the herding of small businesses into promotional
events," she said.
The Obama administration has made some efforts to increase accountability.
One of the recommendations to come out of the White House Small Business
Procurement Group was to tie the goals to senior executives' performance
reviews.
It's one of the reasons the Environmental Protection Agency has been able to
hit its goal of awarding 42 percent of its contracts to small businesses, said
Jeanette Brown, director of the agency's Ofce of Small and Disadvantaged
Business Utilization (OSDBU).
"For some of the managers, if they're not seen doing something there [for small
business contracting], it's tied to their bonuses," she said.
Even without incorporating the small business goals into performance evaluations, just the existence of
the White House Small Business Procurement Group holds agencies accountable to their small
business goals, Jordan said.
"We bring the deputies to the White House quarterly to talk to the senior White House ofcials, not just
about the policies, although that's critically important, but to ask, 'Hey, how's your agency doing against
your goals?' What I've found is, just asking that question drives improvements in results because then
that [deputy secretary] is going to the agency and saying to their senior procurement exec, 'Hey, how
are we doing with the goal?' and then the senior procurement exec is going to all the heads of the
contracting activities and saying, 'How are we doing against our goals?'" Jordan said. "Well, nobody
wants to report up the chain bad news."
More contracting tools The Small Business Jobs Act , signed into
law by President Barack Obama in September 2010, added and
claried some of the small business contracting tools available to
agencies.
The act allowed contracting ofcers to use small business set-aside
contracts on task orders of multiple-award contracts, including the
Federal Supply Schedule. Before the law, small businesses had to
compete with large rms as well for task orders.
The act also reafrmed parity among the small business contracting
programs so that contracting ofcers can choose from any of the
programs to award a set-aside.
For a long time, confusion around these
policies were "impediments" to meeting the
Industry-Government
relationships
If you're buried
within the
organization,
you're not going to
be effective, I can
assure you.
Mauricio Vera,
USAID OSDBU
It's daunting for
a new rm, but at
the same time,
many of them are
excited to learn
and nd out more
about how to do
business with the
federal
government.
Jeanette Brown,
EPA OSDBU
small business goal, Jordan said.
"Whenever there's confusion, it tends to be a
disincentive for contracting ofcers to act in
the way we would like them to. Getting rid of
confusion around these policies has been helpful," Jordan said.
In June, SBA and the Ofce of Federal Procurement Policy sent a memo to
agencies reminding them all purchases under the simplied acquisition
threshold usually $150,000 must be set aside for small businesses by
law. An analysis found "a signicant amount of work" under simplied
acquisition was not going to small businesses, the memo said.
But it's not clear to what extent agencies are using these contracting options.
Despite the administration's push for open data not all of the details of how
agencies contract with small businesses is readily available online.
SBA launched a small business contracting dashboard in 2010, a directive from
the President's memo that created the interagency task force. Data comes from
the Federal Procurement Data System (FPDS), which collects all of the
government's procurement data. The dashboard breaks down spending by
small business type and agency. But the data does not specify the type of
contracts, the number of small rms agencies contract with, the number of
small rms that bid for contracts or other "real pertinent information," said
Young, of the American Small Business Chamber of Commerce.
SBA's Shoraka said FPDS goes as far as to show which contracts in a multiple award contract go to
small businesses, but the data available now does not indicate whether those small business contracts
came from a set-aside or simply went to a small business.
"That's something we're working to make sure that eld is added, so as we move into 2013, we'll have
the ability to see if it was set aside," Shoraka said.
Role of the OSDBU
The Small Business Act required all agencies have an advocate for small businesses with the creation
of the Ofce of Small and Disadvantaged Business Utilization. The OSDBU is supposed to report
directly to the deputy director. However, not all agencies have been in compliance with this reporting
requirement. A June 2011 report found seven of 16 agencies reviewed were not in compliance.
"If the agency does not put you at that level, then they're basically stating that small business is not that
important," said Mauricio Vera, the OSDBU at USAID.
Vera attends senior-level meetings several times a week and is at the same
level as the senior procurement executive. This year, he started a one-day
small business contracting training course required for all contracting staff and
technical representatives. Part of the training is to urge staff to contact the
small business ofce early on in the acquisition process.
"If you're buried within the organization, you're not going to be effective, I can
assure you. It makes a big difference, the reporting [requirement]," Vera said.
Vera said the White House task force further elevated the role of the OSDBU
and raises the visibility of the small business program.
"I think the rst time our deputy administrator went over there, he thought,
'Hmm, maybe our numbers weren't so great.' So he went back and said, 'How
do we improve on that?' We came up with a strategy that really raised the
visibility of the program and did some things internally, like the training," Vera
said.
Outreach to small businesses
Part of the government's challenge in contracting with small businesses is
attracting qualied rms in the rst place.
SBA has an online resource called Government Contracting Classroom that
offers explanations of the various set-aside programs, as well as online training
sessions.
The EPA has taken a proactive approach to educating potential contractors,
particularly HUBZone businesses. In April, the agency partnered with a
HUBZone organization to hold an event in Chicago. EPA also regularly holds
counseling sessions every month, as well as informal "brown bag" meetings
with up to 10 rms at a time, said EPA's Brown.
"It's daunting for a new rm, but at the same time, many of them are excited to learn and nd out how to
do business with the federal government," Brown said.
Copyright 2013 by Federal News Radio. All rights reserved.
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More from the special report, The Obama Impact: Evaluating the Last Four Years
Part 1: Evaluating the Obama administration's management initiatives
Part 2: Evaluating Obama's technology reforms
Part 3: Evaluating Obama's workforce initiatives
Part 4: Evaluating Obama's acquisition efforts
Part 5A: What would a second-term for President Obama mean for feds?
Part 5B: What would a Romney presidency mean for federal workers?
Tags: SBA, John Shoraka, OFPP, Joe Jordan, acquisition, contracting, set-asides, Mauricio Vera, USAID, Jeanette
Brown, EPA, small business, Obama Impact, Jolie Lee
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Special Inspector General for
Afghanistan Reconstruction

SIGAR Audit 13-14
Contracting with the Enemy: State and USAID Need
Stronger Authority to Terminate Contracts When Enemy
Affiliations Are Identified

SIGAR Audit 13-14/Contracting with the Enemy

SIGAR
J U L Y
2013

For more information, contact SIGAR Public Affairs at (703) 545-5974 or sigar.pentagon.ccr.mbx.public-affairs@mail.mil.
SIGAR
Special Inspector General for
WHAT SIGAR REVIEWED
In April 2013, SIGAR reported on the process
the Department of Defense (DOD) established to
comply with Section 841Prohibition on
Contracting with the Enemy in the United States
Central Command Theater of Operationsof the
Fiscal Year 2012 National Defense
Authorization Act and ways to strengthen the
legislation. The report noted that Section 841
does not provide the Department of State
(State) or the U.S. Agency for International
Development (USAID) the legal authority to
restrict, terminate, or void contracts with
persons or entities opposing the United States
or coalition forcesalso known as Section 841
designees. However, State and USAID use many
of the same companies as DOD and have
numerous contracts in Afghanistan. In addition,
State and USAID will have an enduring presence
in the country after the withdrawal of a
significant number of U.S. military personnel in
December 2014.
This report (1) describes the processes State
and USAID have established to prevent
contracting with persons or entities that actively
support insurgencies or oppose U.S. or coalition
forces in Afghanistan, and (2) discusses the
potential impact of State and USAID not having
Section 841 contracting authority.
MATTER FOR CONGRESSIONAL
CONSIDERATION
Congress may wish to consider expanding
Section 841 authority to State and USAID to
allow senior procurement executives to void,
terminate for default, or restrict future awards to
persons or entities identified as enemies of the
United States. State and USAID commented that
they would welcome this authority, but both
agencies expressed concern with proposals that
would indiscriminately expand DOD-specific
contracting provisions to them.
WHAT SIGAR FOUND
To prevent U.S. funds from being provided to persons or entities
supporting insurgents and others opposing the United States or
coalition forces, both State and USAID have established processes
for vetting non-U.S. contractors in Afghanistan. Since October 2012,
State has vetted all non-U.S. contractors that are competitive for
each contract as well as their key individuals. States Office of Risk
Analysis and Management compares the information provided by
the contractor against various databases to determine whether
derogatory informationwhich may include ties to enemy groups
on the company or its key individuals exists. Based on that
information, the assistant secretary of the office funding the activity
makes the final decision on whether a contractor is eligible to
receive a State-funded contract. If a contractor is deemed eligible,
the determination is valid for 1 year, unless there are changes in
the companys key individuals.

Similarly, USAID vets prime contractors, along with subcontractors
working directly for prime contractors, that are in the competitive
range for receiving contracts valued over $25,000. The Vetting
Support Unit in USAIDs mission in Afghanistan reviews an
information package from the contractor for completeness and
accuracy. If approved, it forwards the package to the agencys
Office of Security in Washington, D.C. If the Office of Security does
not find derogatory information, it submits a recommendation of
eligibility for the contractor to USAID/Afghanistan. The Senior
Deputy Mission Director makes the final determination on whether
to declare a contractor ineligible for a contract. Like State, USAID
grants vetting approval for 1 year, unless the contractors key
individuals change.
State and USAID have received information on Section 841
designees from DOD since November 2012. Although the agencies
take this information into consideration during their vetting
processes, neither relies exclusively on this information when
making contracting decisions.
Because State and USAID were not included in Section 841, they
have no separate authority to terminate contracts with Section 841
designees for default, which would prevent the agencies from
paying up to the full cost of the contract. Although neither State nor
USAID has active prime contracts with current Section 841
designees, the agencies would have to terminate any contracts with
future Section 841 designees for convenience. In doing so, the
agencies would likely have to pay up to the full cost of the contracts
in order to complete the termination as well as costs associated
with obtaining a replacement contract.

JULY 2013
Contracting with the Enemy: State and USAID Need
Stronger Authority to Terminate Contracts When Enemy
Affiliations Are Identified

SIGAR AUDIT 13-14

July 24, 2013

The Honorable John F. Kerry
Secretary of State
The Honorable James Cunningham
U.S. Ambassador to Afghanistan
Dr. Rajiv Shah
Administrator, U.S. Agency for International Development
Mr. William Hammink
USAID Mission Director for Afghanistan

This report discusses the results of SIGARs audit of the procedures that the Department of
State and the U.S. Agency for International Development (USAID) have established to prevent
persons or entities identified as actively supporting insurgencies or opposing the United States
or coalition forces in Afghanistan from receiving U.S.-funded contracts.
The report highlights the fact that only DOD has authority under Section 841 to void, terminate,
or restrict awards of contracts to persons or entities identified as enemies of the United States.
To ensure that all contracts in a contingency operation are subject to provisions similar to
Section 841, SIGAR includes in this report a matter for congressional consideration for
providing similar authority to all government agencies.
In their written comments on a draft of this report, State and USAID stated that they would
welcome this authority, but both agencies expressed concern with proposals that would
indiscriminately expand DOD-specific contracting provisions to them. State and USAIDs
comments are reproduced in appendices II and III.
SIGAR conducted this performance audit under the authority of Public Law No. 110-181, as
amended, and the Inspector General Act of 1978, as amended, and in accordance with
generally accepted government auditing standards.

John F. Sopko
Special Inspector General
for Afghanistan Reconstruction

TABLE OF CONTENTS
SIGAR Audit 13-14/Contracting with the Enemy Page i

Background .................................................................................................................................................................. 2
State and USAID Vetting of Non-U.S. Contractors in Afghanistan Includes Checks for Ties to Enemy Groups ...... 3
Lack of Section 841 Authorities Prevents State and USAID from Terminating for Default Contracts with the
Enemy, Which Could Result in Having to Pay the Full Costs of Those Contracts ..................................................... 5
Conclusion .................................................................................................................................................................... 5
Matter for Congressional Consideration .................................................................................................................... 6
Agency Comments ....................................................................................................................................................... 6
Appendix I - Scope and Methodology ......................................................................................................................... 7
Appendix II - Comments from Department of State ................................................................................................... 8
Appendix III - Comments from U.S. Agency for International Development ........................................................... 10
Appendix IV - Acknowledgments ............................................................................................................................... 12

ABBREVIATIONS & ACRONYMS
CENTCOM U.S. Central Command
DOD Department of Defense
NDAA National Defense Authorization Act
RAM Office of Risk Analysis and Management (Department of State)
State Department of State
TSC Terrorist Screening Center
USAID U.S. Agency for International Development

SIGAR Audit 13-14/Contracting with the Enemy Page 1
Since 2002, U.S. military and civilian agencies have relied on contractors to provide a broad range of supplies,
services, and critical logistics and reconstruction functions in Afghanistan. Several prior audit and research
reports discuss the numerous and unique challenges of contracting in Afghanistan, particularly with non-U.S.
contractors.
1
These challenges include the limited availability of staff to oversee contracts, the small pool of
qualified local contractors, and an insecure and corrupt environment that increases the risk of U.S. funds being
used to finance terrorist or insurgent groups. In an effort to reduce this risk, Congress established Section
841Prohibition on Contracting with the Enemy in the United States Central Command Theater of Operations
of the National Defense Authorization Act for Fiscal Year 2012 (NDAA).
2
Section 841 permits the Department
of Defense (DOD), pursuant to a request from the U.S. Central Command (CENTCOM)
3
Commander, to
authorize the Head of a Contracting Activity
4
to restrict the award of, terminate, or void a DOD contract, grant,
or cooperative agreement that it determines would provide funding directly or indirectly to a person or entity
identified as actively supporting an insurgency or otherwise actively opposing U.S. or coalition forces in the
CENTCOM theater of operations, including Afghanistan.
5

In April 2013, we reported on the process DOD established to comply with Section 841, the limitations of this
process, and how that legislation could be strengthened.
6
In that report, we noted that Section 841 does not
provide the Department of State (State) or the U.S. Agency for International Development (USAID) the legal
authority to restrict, terminate, or void contracts with Section 841 designees. However, State and USAID
contract with many of the same companies as DOD, and both agencies have numerous contracts in
Afghanistan. In fiscal year 2012, State awarded 29 contracts valued at $961 million and USAID awarded 276
contracts valued at $2.07 billion. In addition, State and USAID will have an enduring presence in the country
after the withdrawal of a significant number of U.S. military personnel and resources is complete in December
2014. In light of these concerns and congressional interest, we initiated a review to examine efforts by State
and USAID to prevent contracting with the enemy.
This report (1) describes the processes State and USAID have established to prevent contracting with persons
or entities that actively support insurgencies or oppose U.S. or coalition forces in Afghanistan, and (2)
discusses the potential impact of State and USAID not having Section 841 contracting authorities.
To accomplish our objectives, we reviewed Section 841 and relevant sections of the Federal Acquisition
Regulation. We examined State and USAID contracting policies and procedures, including: (1) States standard
operating procedures for vetting contracts and grants, (2) USAIDs Mission Order for Afghanistan 201.04, and
(3) State and USAIDs risk foundation document for contracting and grants. We also analyzed data on the

1
U.S. Government Accountability Office, U.S. Efforts to Vet Non-U.S. Contractors Need Improvement, GAO-11-355, June 8,
2011; Congressional Research Service, Wartime Contracting in Afghanistan: Analysis and Issues for Congress, November
14, 2011; Committee on Oversight and Government Reform, Warlord, Inc.: Extortion and Corruption Along the U.S. Supply
Chain in Afghanistan, June 22, 2010; and U.S. Agency for International Development, Accountable Assistance for
Afghanistan Report, August 18, 2011.
2
Pub. L. No. 112-81.
3
CENTCOM is one of nine combatant commands in the U.S. military. The commands area of responsibility consists of
20 countries in Middle East and Southwest Asia, including Afghanistan.
4
According to Defense Federal Acquisition Regulation Supplement, Subpart 202.1, a DOD contracting activity is an entity
designated by the director of a defense agency with contracting authority through its agency charter. For example, the
U.S. Army Corps of Engineers is considered a Head of Contracting Activity. Large DOD agencies, such as the Department
of the Army, may have multiple HCAs under their command.
5
For the purposes of this report, we use the term contract to refer collectively to contracts, grants, and cooperative
agreements, unless noted otherwise.
6
See SIGAR Audit 13-6, Contracting with the Enemy: DOD Has Limited Assurance That Contractors With Links To Enemy
Groups Are Identified And Their Contracts Terminated, April 11, 2013.

number and value of active State and USAID contracts in Afghanistan as of February 28, 2013. We interviewed
relevant State officials from the Office of the Undersecretary of Management, Office of Risk Analysis and
Management, and the U.S. Embassy in Kabul. We also interviewed USAID officials with Mission Afghanistans
Office of Acquisition and Assistance and Office of Financial Management as well as headquarters officials in
the Office of Counterterrorism and Information Security. We conducted our work in Washington, D.C., and
Kabul, Afghanistan, from October 2012 to July 2013, in accordance with generally accepted government
auditing standards. A discussion of our scope and methodology is included in appendix I.

BACKGROUND
DOD counterinsurgency contracting guidance issued in September 2010, and similar guidance issued by
State and USAID in November 2010, confirm the importance of contracting to the U.S. mission in
Afghanistan. In particular, the guidance emphasizes the importance of using Afghan contractors and
purchasing Afghan goodsa policy collectively known as the Afghan First Initiativeas a key element of the
U.S. counterinsurgency strategy.
7
This contracting guidance cautions that insufficient oversight could lead to
contracting funds being unintentionally funneled to support insurgent organizations.
In an effort to prevent U.S. funds in the CENTCOM theater of operations, including Afghanistan, from being
diverted to terrorist or insurgent groups, Congress established Section 841 in the fiscal year 2012 NDAA.
8

In addition to prohibiting contracting with terrorist or insurgent groups, Section 841:
Requires the CENTCOM Commander to establish a program to review and identify persons and entities
with DOD contracts, grants, or cooperative agreements who are actively supporting an insurgency or
otherwise opposing U.S. or coalition forces in a contingency operation in the CENTCOM theater of
operations.
Permits the Secretary of Defense to authorize the Head of a Contracting Activity, pursuant to a request
from the CENTCOM Commander, to restrict, terminate, or void a contract determined to provide
funding to active insurgent elements and opponents of U.S. or coalition forces.
In our April 2013 report, we found that DOD had established a two-phase process to implement Section 841.
Using this process, DOD designated five companies and their associates as supporters of enemy groups.
9

Although no prime contracts had been terminated as a result of those designations, one prime contractor
terminated eight active subcontracts awarded to a Section 841 designee.
10
Despite these actions, we
concluded that DOD had limited assurance that contractors with links to enemy groups were identified and
their contracts terminated because of weaknesses in its Section 841 process. As a result, we made seven

7
Under the Afghan First Initiative, U.S. military and civilian agencies operating in Afghanistan have taken steps to ensure
that a greater number of contracts are awarded to Afghan companies. We previously reported on this initiative (see SIGAR
Audit-12-6, Afghan First Initiative Has Placed Work with Afghan Companies, but Is Affected by Inconsistent Contract
Solicitation and Vetting, and Employment Data Is Limited, January 31, 2012).
8
The NDAA authorizes appropriations for military activities of the Department of Defense, for military construction, to
prescribe military personnel strengths, and for other purposes.
9
On January 18, 2013, CENTCOM issued the fourth notification letter on the Kam Airlines group of companies and their
associates. On February 9, 2013, CENTCOM suspended the January 18, 2013, notification with the understanding that an
independent investigation of the activities of Kam Air and their associates will be conducted by the Afghan government.
For a complete listing of Section 841 designated companies and their affiliates, see the CENTCOM website at
www2.centcom.mil/sites/contracts.
10
The value of these subcontracts was approximately $12 million; about $5 million had been paid to the subcontractor
when the contracts were terminated.

recommendations: five to address DODs visibility over active contracts, one to prevent duplication of data
collection, and one to provide guidance once actions are taken to restrict, terminate, or void a contract under
Section 841. We also proposed two matters for congressional consideration that would strengthen the
legislation. We continue to follow up on any actions that may be taken on our recommendations.
Due to an increased emphasis on contracting with host nation companies and the associated risk of contract
funds being diverted to criminal or insurgent groups, Congress authorized State to establish a pilot program for
vetting contractors in 2010. Originally including only five countriesGuatemala, Kenya, Lebanon, Philippines,
and the UkraineStates pilot program began vetting non-U.S. companies and their officials in Afghanistan in
October 2012. Effective May 9, 2011, USAID/Afghanistan Mission Order 201.04 outlines the Afghan First
Initiative and describes procedures to ensure that the agencys programs in Afghanistan do not provide
support to prohibited parties, either intentionally or inadvertently.
STATE AND USAID VETTING OF NON-U.S. CONTRACTORS IN AFGHANISTAN
INCLUDES CHECKS FOR TIES TO ENEMY GROUPS
States vetting program uses a risk-based approach for vetting contractors and their key individuals.
11
The
Office of Risk Analysis and Management (RAM) manages the vetting program and sets the risk criteria for
vetting non-U.S. contractors. In Afghanistan, RAM vets all non-U.S. contractors that are in the competitive range
for a particular contract because the department considers them high risk.
12
Each contractor is required to
submit information on the company, which includes the Afghanistan business license number and the
citizenship and tribal affiliations of the company and its key individuals. In addition to reviewing the information
provided by the contractor for completeness and accuracy, the vetting unit also checks the information against
various databases to determine whether derogatory informationwhich may include ties to enemy groupson
the company or its key individuals, exists. If derogatory information does exist, RAM forwards the information to
the assistant secretary of the bureau funding the activity, who is responsible for the final determination of
contractor eligibility. If a contractor is deemed eligible to receive a contract, this designation is valid for 1 year.
If there are changes in the companys key individuals, the company is re-vetted. As of May 30, 2013, State had
vetted 219 non-U.S. individuals working in Afghanistan. All but two of these individuals have been cleared to
contract with State.
USAID/Afghanistan Mission Order 201.04 requires the agency to annually vet non-U.S. contractors, along with
first-tier subcontractors,
13
that the agency determines to be in the competitive range for contracts valued over
$25,000.
14
A non-U.S. contractor is required to submit an information package when it bids for a contract in
Afghanistan. This package includes information on applicable business licenses, bank accounts, citizenship,
and tribal affiliations of the company and its key individuals. USAIDs Vetting Support Unit in Afghanistan is the
first to review this package for completeness and accuracy. If the unit approves the package,
USAID/Afghanistan forwards it to the agencys Office of Security in Washington, D.C., which uses the Terrorist
Screening Center to assess the information against various databases.
15
If the Office of Security does not find

11
Key individuals include large shareholders, principal officers of the companys governing body, and relevant program
managers.
12
The competitive range comprises the most highly rated proposals.
13
A first-tier subcontract is a subcontract awarded directly by the prime contractor in order to perform the requirements of
the prime contract.
14
USAID reduced the threshold from $150,000 to $25,000 on January 1, 2013.
15
Established by Presidential Directive in 2003, the Terrorist Screening Center (TSC) is a multi-agency organization
administered by the Federal Bureau of Investigation whose aim is to identify suspected or potential terrorists. It is

derogatory information, it submits a recommendation of eligibility for the contractor to USAID/Afghanistan.
However, if the Office of Security does find sufficient derogatory information, the office recommends that the
contractor be deemed ineligible. The office sends its recommendation, with the supporting information, back to
USAID/Afghanistan. The Senior Deputy Mission Director makes the final determination on a contractors
eligibility for a contract. The Senior Deputy Mission Director may make an exception, allowing a contractor
initially deemed ineligible to receive the contract, based on an analysis to determine the negative impact of not
awarding a specific contract.
16
Like State, USAID grants vetting approval for 1 year, unless a change occurs
with the contractors key individuals. As of June 20, 2013, USAID had reviewed 1,639 vetting requests for
organizations seeking contracts with the agency in Afghanistan.
17
The agency determined that 30 of these
requests, which pertained to 20 different organizations, were ineligible.
18

State and USAID Consider, but Do Not Rely on, Section 841 Designations when
Vetting Contractors
State and USAID regularly receive information from DOD on persons and entities designated under Section
841 as supporting insurgents or otherwise opposing U.S. or coalition forces. However, neither agency relies
solely on this information during its vetting process. Further, a Section 841 designation by CENTCOM does not
automatically disqualify a person or entity from receiving a contract with State or USAID. State and USAID have
been included in CENTCOMs Section 841 distribution list since November 2012.
19
According to agency
officials, after receiving a letter, State and USAID separately determine whether they have any active contracts
with the identified designee. In addition, officials told us that both agencies take these designations into
consideration when making contracting decisions.
In addition to receiving the Section 841 designation letters, State and USAID participate in regular meetings
with DOD officials regarding ongoing investigations of potential designees because the agencies use many of
the same contractors.
20

responsible for maintaining the Terrorist Screening Database, also known as the Terrorist Watchlist, for the U.S.
government. USAID has employees detailed to the TSC that have access to their databases.
16
The Senior Deputy Mission Director had not made any exceptions as of February 2013.
17
According to a USAID official, organizations can submit multiple vetting requests. As part of its review of the 1,639
vetting requests, USAID vetted 3,124 individuals.
18
The 30 ineligible requests represent 88 individuals. However, as an agency official explained, not all of those individuals
necessarily have negative information against them. For example, if any of an organizations key individuals has any ties to
terrorism, the entire organization would be potentially declared ineligible. USAID does not inform the organization of which
individual had the negative information discovered to protect its sources and processes.
19
In addition, SIGAR Investigations issued an alert letter on October 17, 2012, notifying State and USAID of the first two
groups of individuals and entities identified as Section 841 designees.
20
These include bi-weekly meetings of the Vendor Vetting Advisory Panel and the Fusion Cell. The Vendor Vetting Advisory
Panel reviews potential contractors listed as high or extremely high on the force protection scale. The Fusion Cell meetings
are held by CENTCOM to receive and share informal input on the vetting process. These meetings also discuss any political
implications that could result from a Section 841 designation.

LACK OF SECTION 841 AUTHORITIES PREVENTS STATE AND USAID FROM
TERMINATING FOR DEFAULT CONTRACTS WITH THE ENEMY, WHICH COULD
RESULT IN HAVING TO PAY THE FULL COSTS OF THOSE CONTRACTS
Unlike DOD, State and USAID were not included in Section 841 and have no separate authority to terminate for
default contracts with Section 841 designees. Terminating for default would protect the agencies from having
to pay up to the full cost of the contract.
21

Based on our review of data provided by USAID on its contracts in Afghanistan as of December 31, 2012, we
determined that the agency does not have active prime contracts or first-tier subcontracts with the current
Section 841 designees identified by DOD.
22
State officials told us that their agency does not have active prime
contracts with these designees, but we were unable to verify this.
23
Officials from both agencies told us that if
a State or USAID contractor were designated as a supporter of enemy groups under Section 841, contracting
officials would perform their own independent assessment and re-vet the contractor to determine whether the
contract should be terminated. If they decided to terminate the contract, agency officials indicated that they
would likely attempt to terminate for convenience, which could result in the agencies paying up to the full cost
of the terminated contracts.
24
Moreover, if either State or USAID decide to terminate a contract with a Section
841 designee for convenience, officials stated that the agencies would likely incur additional costs to complete
the termination and costs associated with obtaining another contract to complete the work begun by the
terminated contractor.
CONCLUSION
Despite the U.S. governments objective of not supporting insurgent and terrorist activities, Section 841
applies only to DOD; it does not include State and USAID, the other two major contracting agencies in
Afghanistan. State and USAID have established procedures for vetting non-U.S. contractors in Afghanistan and
take DODs Section 841 designations into consideration. However, their lack of express authority to terminate
for default contracts with Section 841 designees means that they could be obligated to pay the full cost of
contracts with parties determined to be supporting the enemies of the United States. The funds paid to those
contractors could then be funneled to insurgent or terrorist groups. Moreover, because State and USAID do not
have express authority under Section 841 to restrict the award of contracts, they could award new contracts to
persons or entities that are providing support to groups that are intent on disrupting U.S. and international
reconstruction efforts and harming military and civilian personnel in Afghanistan. This risk may be exacerbated

21
Termination for default is the U.S. government's contractual right to completely or partially terminate a contract because
of the contractor's actual or anticipated failure to perform its contractual obligations. When a contracting agency makes the
decision to terminate a contract for default, it is not liable to pay any additional costs under the contract beyond the
reasonable value of the work accepted by the government.
22
The data USAID provided primarily listed contracts valued over $150,000; however, we identified contracts that were
below this amount as well as entries with missing data fields.
23
We received data from State on its contracts in Afghanistan; however, this data was incomplete at the time we
completed this audit. As a result, we were unable to independently verify that the department did not have active prime
contracts with current Section 841 designees.
24
Termination for convenience gives the U.S. government the right to terminate a contract without cause at any time after
award. The contracting agency negotiates with the contractor to reach a bilateral agreement settling the termination, which
includes determining the outstanding costs the contracting agency will pay the contractor.

as State and USAID are expected to continue spending hundreds of millions of dollars on contracts in
Afghanistan, even after the U.S. militarys combat mission ends in 2014.
MATTER FOR CONGRESSIONAL CONSIDERATION
To ensure that all contracts in a contingency operation are subject to provisions similar to Section 841,
Congress may wish to consider replacing Section 841, which applies only to DOD, with a government-wide
authority that would allow senior procurement executives and commanders to void, terminate for default, or
restrict future awards to persons or entities identified as enemies of the United States.
AGENCY COMMENTS
State and USAID provided written comments on a draft of this report, which are reproduced in appendices II
and III, respectively.
In its response to our matter for congressional consideration, State commented that it does not believe that
the department has been hindered by a lack of Section 841 authority, noting that its pre-award vetting
process, which considers DOD Section 841 determinations, provides reasonable assurance against awards to
offending contractors or grantees. State added that no terminations have been required because of enemy
affiliation. State commented that, in the event a termination was necessary, terminations for convenience
would not necessarily require payment of the full contract price unless performance were substantially
complete and the government had received value. While State added that it would welcome additional
authorities to terminate contracts or grants going to entities determined to support terrorism, it also noted
that it has some concerns with proposals that would indiscriminately expand DOD contracting provisions to
State.
USAID also commented that it does not believe that the agencys efforts to protect against the diversion of
funds to terrorists have been hindered by a lack of Section 841 authority. USAID noted that although no new
designations have been added under Section 841 in over 6 months, the agency has at the same time declared
26 awardees or sub-awardees to be ineligible as a result of its vetting process (for a total of 34 ineligible
awards declared from February to July 2013). According to USAID, these 34 ineligible award determinations
have helped ensure that almost $33 million in development funds were not disbursed to individuals or
organizations for whom questionable or unacceptable derogatory information was found. Like State, USAID
stated that it would welcome additional authorities, such as authority to void contracts to ensure that no U.S.
government funds go to terrorists. However, USAID also indicated that it would have concerns with proposals
that would indiscriminately expand DOD contracting provisions to the agency, stating that DOD and USAID
have different purposes and modalities for contracting, which is why [they] have different authorities and not
identical systems.
We support States and USAIDs efforts to vet non-U.S. contractors prior to awarding contracts. However, we
maintain that replacing Section 841 legislation with a government-wide authority would benefit both agencies
by providing them with the authority to restrict, terminate for default, or void ongoing and future contracts with
persons or entities identified as enemies of the United Statesnot solely those individuals and entities and
individuals identified as terroristswithout absorbing any additional contract costs. Furthermore, although we
agree that each agency has its own system for contracting, we do not think that, should Congress grant the
authorities under Section 841 legislation to State and USAID, it would also by necessity require those agencies
to replicate DODs contracting procedures.

APPENDIX I - SCOPE AND METHODOLOGY
This report (1) describes the processes the Department of State (State) and U.S. Agency for International
Development (USAID) have established to prevent contracting with persons or entities that actively support
insurgencies or oppose U.S. or coalitions forces in Afghanistan and (2) discusses the potential impact of State
and USAID not having Section 841 authorities on their contracting activities. We do not discuss the mechanics
of the vetting processes used by State and USAID in detail because we did not evaluate the effectiveness of
the methods used by the agencies to conduct the vetting.
To describe the processes State and USAID established to prevent contracting with persons or entities that
actively support insurgencies or oppose U.S. or coalition forces in Afghanistan, we reviewed the Department of
State standard operating procedures for vetting of contracts and grants, USAIDs Mission Order for Afghanistan
201.04, State and USAIDs risk foundation document for contracting and grants.
25
We reviewed Section 841
of the National Defense Authorization Act for Fiscal Year 2012, Department of Defenses (DOD) Section 841
notification letters, and applicable sections of the Federal Acquisition Regulations. We also reviewed
information in our April 2013 report on DODs process for implementing Section 841.
26
We interviewed
relevant State officials from the Office of the Undersecretary of Management and the Office of Risk Analysis
and Management, and relevant USAID officials from the Office of Acquisition and Assistance and the Office of
Financial Management at the Mission in Afghanistan and the Office of Counterterrorism and Information
Security at UASID headquarters.
To determine the impact of State and USAID not having Section 841 authorities on their contracting activities,
we reviewed DODs Section 841 notification letters identifying current designees. We also reviewed data on
ongoing USAID contracts in Afghanistan as of December 31, 2012, to determine whether the agency had
active prime contracts or first-tier subcontracts with Section 841 designees. We were unable to independently
verify that State did not have active prime contractors who were Section 841 designees because data from
State was incomplete at the time we completed the audit. In addition, we interviewed relevant State officials
from the Office of the Undersecretary of Management and the Office of Risk Analysis and Management. We
also met with relevant USAID officials from the Offices of Acquisition and Assistance and Financial
Management in Afghanistan and the Office of Counterterrorism and Information Security.
We did not use or rely on computer-processed data for the purposes of the audit objectives or assess internal
controls.
We conducted work in Washington, D.C., and Kabul, Afghanistan, from October 2012 to July 2013, in
accordance with generally accepted government auditing standards. These standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and
conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis
for our findings and conclusions based on our audit objectives. The audit was conducted by the Office of
Special Inspector General for Afghanistan Reconstruction under the authority of Public Law No. 110-181, as
amended, and the Inspector General Act of 1978, as amended.

25
USAIDs Mission Order 201.04 covers non-U.S. party vetting of contractors.
26
SIGAR Audit 13-6.


APPENDIX II - COMMENTS FROM DEPARTMENT OF STATE

United States Department of State
Washington, D.C. 20520
July 18, 2013
Elizabeth A. Field
Assistant Inspector General for Audits and Investigations
Special Inspector General for Afghanistan Reconstruction (SIGAR)
1550 Crystal Drive, Suite 900
Arlington, VA 22202
Dear Ms. Field:
Thank you for the opportunity to provide the Department of State's
comments on SIGAR draft Audit 13-14, "Contracting with the Enemy: State and
USAID Need Stronger Authority to Terminate Contracts When Enemy Affiliations
Are Identified."
The Department takes thorough and exhaustive measures to properly vet
recipients of USG funds against all relevant and available information to ensure
that our programs and contracts advance the foreign policy and security interests of
the United States. As the audit notes, Section 841 findings by CENTCOM under
current authorities are included in this review process. The Department has
established vetting procedures in coordination with our relevant Congressional
oversight committees to ensure that recipients of contracts, grants, and cooperative
agreements executed by our agency are reviewed against relevant USG databases
and available information. Department of State and USATD vetting procedures
have been established in accordance with our relevant procurement and grant
making authorities to ensure that they can withstand legal challenge, while
appropriately protecting classified information.
We do not believe that the Department has been hindered by a lack of
Section 841 authority. The pre-award vetting process, which considers DOD
Section 841 determinations, provides reasonable assurance against awards to
offending contractors or grantees. No terminations have been required because of
enemy affiliation. Currently, in the event a termination was necessary,
terminations for convenience would not necessarily require payment of the full


2
contract price unless performance were substantially complete and the government
had received value.
We welcome further dialogue on how to improve existing measures, but do
have some concerns with proposals that would indiscriminately expand
Department of Defense contracting provisions to the Department of State. We
would welcome additional authority to terminate contracts or grants going to
entities determined to support terrorism.
Thank you again for the opportunity to comment, and we welcome any
questions.
~ ~
Dan Feldman
Deputy Special Representative for
Afghanistan and Pakistan

APPENDIX III - COMMENTS FROM U.S. AGENCY FOR INTERNATIONAL
DEVELOPMENT

USAID
FROM THE AMERICAN PEOPLE
Elizabeth A. Field
Assistant Inspector General for Audits and Investigations
Special Inspector General for Afghanistan Reconstruction (SIGAR)
1550 Crystal Drive, Suite 900
Arlington, VA 22202
Dear Ms. Field:
Thank you for the opportunity to provide comments from the U.S. Agency
for International Development (USAID) on the draft of SIGAR Audit 13-14,
"Contracting with the Enemy: State and USAID Need Stronger Authority to
Terminate Contracts When Enemy Affiliations Are Identified."
USAID agrees that no U.S. funds should be diverted to our nation's enemies.
To that end, USAID has established an exhaustive vetting program in Afghanistan
that has a proven track record of effectiveness. As the draft audit notes, this
program draws on a variety of sources of information from across the U.S.
government (USG), including Section 841 designations by the Department of
Defense (DoD). To date, USAID's vetting program in Afghanistan has made 34
ineligible award determinations which have helped ensure that almost $33 million
in development funds were not dispersed to individuals or organizations for whom
questionable or unacceptable derogatory information was found.
US AID does not believe that our efforts to protect against diversion of funds
to terrorists have been hindered by a lack of Section 841 authority. For example,
while no new designations have been added under Section 841 in over 6 months,
USAID has at the same time declared 26 awardees/sub-awardees to be ineligible
through our vetting processes (for a total of34 ineligible awards).
USAID would certainly welcome additional authorities, such as an
independent grant of authority to the Agency to void contracts, to ensure that no
USG funds go to terrorists. However, we would wish to ensure that any new
authorities or responsibilities do not disrupt what currently works, and would have
concerns with proposals that would indiscriminately expand DoD contracting
provisions to the Agency. It is also important to note that USAID and DoD have
u.s. AQe:f for lntemalional Development
1300 Pennsylvania ~ tNY
WIIShrQton, DC 20523
..ww.UYid.gov


-2-
different purposes and modalities for contracting, which is why we have different
authorities and not identical systems.
We welcome further dialogue on this topic, and appreciate the opportunity to
comment. Thank you.

/
Acting Assistant to the Administrator
'o ffice of Afghanistan and Pakistan Affairs
US AID

APPENDIX IV - ACKNOWLEDGMENTS
Gabriele Tonsil, Senior Audit Manager
Scott Harmon, Auditor-in-Charge
Martin Wilson, Program Analyst

The following staff assisted with fieldwork:
Paola Bobadilla, Program Analyst


This performance audit was conducted
under project code SIGAR-066A.

SIGARs Mission

Obtaining Copies of SIGAR
Reports and Testimonies

To Report Fraud, Waste, and
Abuse in Afghanistan
Reconstruction Programs
Public Affairs

The mission of the Special Inspector General for Afghanistan
Reconstruction (SIGAR) is to enhance oversight of programs for the
reconstruction of Afghanistan by conducting independent and
objective audits, inspections, and investigations on the use of
taxpayer dollars and related funds. SIGAR works to provide accurate
and balanced information, evaluations, analysis, and
recommendations to help the U.S. Congress, U.S. agencies, and
other decision-makers to make informed oversight, policy, and
funding decisions to:
improve effectiveness of the overall reconstruction
strategy and its component programs;
improve management and accountability over funds
administered by U.S. and Afghan agencies and their
contractors;
improve contracting and contract management
processes;
prevent fraud, waste, and abuse; and
advance U.S. interests in reconstructing Afghanistan.

To obtain copies of SIGAR documents at no cost, go to SIGARs Web
site (www.sigar.mil). SIGAR posts all publically released reports,
testimonies, and correspondence on its Web site.

To help prevent fraud, waste, and abuse by reporting allegations of
fraud, waste, abuse, mismanagement, and reprisal, contact SIGARs
hotline:
Web: www.sigar.mil/fraud
Email: sigar.pentagon.inv.mbx.hotline@mail.mil
Phone Afghanistan: +93 (0) 700-10-7300
Phone DSN Afghanistan 318-3912 ext. 7303
Phone International: +1-866-329-8893
Phone DSN International: 312-664-0378
U.S. fax: +1-703-601-4065

Public Affairs Officer
Phone: 703-545-5974
Email: sigar.pentagon.ccr.mbx.public-affairs@mail.mil
Mail: SIGAR Public Affairs
2530 Crystal Drive
Arlington, VA 22202
Offeror To Complete Block 12, 17, 23, 24, & 30
1. Requisition Number Page Of
2. Contract No. 3. Award/Effective Date 4. Order Number 5. Solicitation Number 6. Solicitation Issue Date
7. For Solicitation
Information Call:
A. Name B. Telephone Number (No Collect Calls) 8. Offer Due Date/Local Time
9. Issued By Code 10. This Acquisition is
Unrestricted OR Set Aside: % For:

Small Business Women-Owned Small Business (WOSB)
Eligible Under the Women-Owned Small Business Program

Hubzone Small Business Economically Disadvantaged Women-Owned
Small Business (EDWOSB)

Service-Disabled Veteran-Owned Small Business
NAICS:

Email:
8(A)
Size Standard:
11. Delivery For FOB Destination
Unless Block Is Marked
12. Discount Terms

13a. This Contract Is A Rated Order Under DPAS (15 CFR 700) 13b. Rating
See Schedule

14. Method Of Solicitation RFQ IFB RFP
15. Deliver To Code 16. Administered By Code

Telephone No. SCD: PAS:
17a. Contractor/Offeror Code Facility 18a. Payment Will Be Made By Code

Telephone No.
17b. Check If Remittance Is Different And Put Such
Address In Offer
18b. Submit Invoices To Address Shown In Block 18a Unless Block Below Is Checked
See Addendum
19.
Item No.
20.
Schedule Of Supplies/Services
21.
Quantity
22.
Unit
23.
Unit Price
24.
Amount

(Use Reverse and/or Attach Additional Sheets As Necessary)
25. Accounting And Appropriation Data 26. Total Award Amount (For Govt. Use Only)

27a.Solicitation Incorporates By Reference FAR 52.212-1, 52.212-4. FAR 52.212-3 And 52.212-5 Are Attached. Addenda Are Are Not Attached.
27b.Contract/Purchase Order Incorporates By Reference FAR 52.212-4. FAR 52.212-5 Is Attached. Addenda Are Are Not Attached.
28. Contractor Is Required To Sign This Document And Return _________ 29. Award Of Contract: Ref. Offer
Copies to Issuing Office. Contractor Agrees To Furnish And Deliver All Items Set Forth
Or Otherwise Identified Above And On Any Additional Sheets Subject To The Terms
And Conditions Specified.
Dated . Your Offer On Solicitation (Block 5), Including
Any Additions Or Changes Which Are Set Forth Herein, Is Accepted As
To Items:
30a. Signature Of Offeror/Contractor 31a. United States Of America (Signature Of Contracting Officer)

30b. Name And Title Of Signer (Type Or Print) 30c. Date Signed 31b. Name Of Contracting Officer (Type Or Print) 31c. Date Signed

Authorized For Local Reproduction
Previous Edition Is Not Usable
Standard Form 1449 (Rev. 5/2011)
Prescribed By GSA-FAR (48 CFR) 53.212

W15QKN-12-R-0070 2012OCT11
ANTHONY MAURIELLO (609)562-1763
ACC-NJ-IT
ANTHONY.MAURIELLO@US.ARMY.MIL
2012NOV15 05:00pm
W15QKN
ARMY CONTRACTING COMMAND - NJ
FORT DIX, NJ 08640
X
X
100
332311
NONE
X
SEE SCHEDULE
SEE SCHEDULE
X X
X 1
1 74
19.
Item No.
20.
21.
Quantity
22.
Unit
23.
Unit Price
24.
Amount

32a. Quantity In Column 21 Has Been

Received Inspected Accepted, And Conforms To The Contract, Except As Noted: _________________________________________________

32b. Signature Of Authorized Government Representative 32c. Date 32d. Printed Name and Title of Authorized Government Representative

32e. Mailing Address of Authorized Government Representative 32f. Telephone Number of Authorized Government Representative

32g. E-Mail of Authorized Government Representative

33. Ship Number 34. Voucher Number 35. Amount Verified 36. Payment 37. Check Number
Correct For
Partial Final
Complete Partial Final

38. S/R Account No. 39. S/R Voucher Number 40. Paid By

41a. I Certify This Account Is Correct And Proper For Payment 42a. Received By (Print)
41b. Signature And Title Of Certifying Officer 41c. Date
42b. Received At (Location)

42c. Date Recd (YY/MM/DD) 42d. Total Containers

Standard Form 1449 (Rev. 5/2011) Back

CONTINUATION SHEET
Reference No. of Document Being Continued Page of
Name of Offeror or Contractor:
PIIN/SIIN MOD/AMD
SUPPLEMENTAL INFORMATION
1) Introduction: The U.S. Army Contracting Command - New Jersey, on behalf of the U.S. Army Logistics Innovation Agency has a _____________
requirement for Single Story and Two Story energy efficient shelters to be delivered and assembled at Camp Buehring, Kuwait.
2) Contracting Strategy: The proposed strategy is to award a single Firm Fixed Price (FFP), Indefinite Delivery/Indefinite Quantity _____________________
(IDIQ) contract to the offeror that is determined to represent Best Value to the Government. The award will be a 100 percent Small
Business Set-Aside. For proposal instructions and submittal information, see Section L, entitled Specific Instructions, Conditions, and
Notices to Offerors. For the basis of award of a contract, see Section M, entitled Evaluation Factors of Award.
The award will result in a FFP, Two Year, IDIQ, Award Contract. The overall period of performance will be for two years. For purposes of
this Solicitation, 'Period of Performance' is defined as the time period by which the Government can issue Delivery Orders against the
contract. Actual deliveries may exceed two years if orders are issued toward the end of year two.
The Government reserves the right to award based on initial proposals. In accordance with FAR 52.215-1(f)(4), the Government intends to
evaluate proposals and award a contract without discussions with the offerors (except clarifications as described in FAR 15.306).
However, the Government reserves the right to conduct discussions and request proposal revisions if it is determined to be in the best
interest of the Government. If a competitive range is established, the Government may limit the number of proposals in the competitive
range to the greatest number that will permit an efficient competition among the most highly rated proposals. Award will be made to the
best overall proposal, which is determined to be the most beneficial to the Government.
3) Format of Solicitation: Clauses and provisions that are applicable to this Solicitation are located in the appropriate sections of _______________________
this Solicitation. In order to have a complete copy, interested parties need to download the entire Solicitation, inclusive of all
applicable sections, all applicable attachments, and all amendments.
Note 1: Section J Attachment 0002 labeled "Notional Sketch" is being provided as illustrative information to demonstrate notional
layouts and configuration of shelters and electrical. This configuration is not required, and is being supplied as a visual aide only.
Note 2: A site visit will be authorized during the solicitation phase of this requirement. All interested parties must respond to Grace
Battle, grace.a.battle.civ@mail.mil, in writing no later than 5:00pm EDT, 17 October 2012. The entirety of this visit will be at no cost
to the Government. All associated costs (transportation, lodging, documentation, etc.) will be solely on the Contractor. The date and
time is TBD.
Note 3: If conflict exists between this summary, and the provisions of this Solicitation, the provisions of the Solicitation govern.
Note 4: Acquisitions for Commercial Items under FAR Part 12 do not use the Uniform Contract Format (UCF). Therefore, when referencing a
UCF section, please refer to the following table for equivalence:
UCF SOLICITATION/AWARD FORMAT
Section A Supplemental Information
Section B Supplies or Services and Prices/Costs
Section C Description/Specifications/Work Statement
Section D Packaging and Marking
Section E Inspection and Acceptance
Section F Deliveries or Performance
Section G Contract Administration Data
Section H Special Contract Requirements
Section I Contract Clauses
Section J List of Attachments
Section K Representations, Certifications, and Other Statements of Offerors
Section L Instructions, Conditions, and Notices to Offerors
Section M Evaluation Factors for Award
*** END OF NARRATIVE A0001 ***
Regulatory Cite Title Date Regulatory Cite Title Date _______________ ______________________________________________________________________ ____________ _______________ ______________________________________________________________________ ____________
1 52.215-4006 GENERAL INFORMATION TO OFFERORS OR QUOTERS (AS6042) MAR/2012
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1. Responses must set forth full, accurate and complete information as required by this solicitation (including attachments). Fill-ins
are provided on Standard Form 18, Standard Form 33, and other solicitation documents. Examine the entire solicitation carefully. The
penalty for making false statements is prescribed in 18 U.S.C. 1001.
2. Responses must be plainly marked with the Solicitation Number and the date and local time set forth for bid opening or receipt of
proposals in the solicitation document.
3. Information regarding the timeliness of response is addressed in the provision of the solicitation entitled either Late Submission,
Modification and Withdrawal of Bid or Instructions to Offerors Competitive Acquisitions.
4. Procurement Information
This Procurement is a 100 percent Small Business Set-Aside
The applicable SIC/NAICS codes is: 332311
5. Issuing Office
U.S. Army Contracting Command - New Jersey
ATTN: Anthony Mauriello ACC-NJ-IT, 5418 South Scott Plaza
Fort Dix, NJ 08640
anthony.o.mauriello.civ@mail.mil
ATTN: Grace Battle ACC-NJ-IT, 5418 South Scott Plaza
Fort Dix, NJ 08640
grace.a.battle.civ@mail.mil
7. Point of Contact for Information:
Name: Anthony Mauriello
Title: Contract Specialist ___________________
Email: anthony.o.mauriello.civ@mail.mil
Phone: 609-562-1763
Fax: 609 562 6933
And;
Name: Grace Battle
Title: Contracting Officer ___________________
Email: grace.a.battle.civ@mail.mil
Phone: 609-562-6278
Fax: 609 562 6933
2 52.215-4004 IDENTIFICATION OF WORK PERFORMED AT A GOVERNMENT LOCATION (AS7027) OCT/2010
1. Offeror will specify in his proposal the place(s) of performance of the work.
2. Where the place(s) of performance includes, in whole or part, a Government location, installation, facility, office space, etc. the
offeror will:
a. Specify which work will be performed at a Government location and which will be performed at a contractor location.
b. Identify any Government locations, buildings, room numbers, areas etc. where that part of the work will be performed.
c. If a government location is provided under another contract, specify the contract number, PCO, COR or other Government point
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PIIN/SIIN MOD/AMD
of contact, etc.
d. If any offeror personnel currently have access to a Government electronic mail account or have in their possession a
Government identification badge, specify all such persons, badge numbers, e-mail accounts, etc.
e. Specify any Government furnished equipment needed to perform the work under this solicitation such as office space, other
space, utilities, physical access, e-mail accounts, and the like on which the proposal is based.
f. Separate in the proposal any differing overhead, G&A and other applicable cost or pricing information applicable to the work
to be performed at a government location vs. contractor location.
g. If applicable, furnish a copy of any prior or current agreement for the use of such Government location(s).
3 52.215-4005 ELECTRONIC AND NON-ELECTRONIC PROPOSAL SUBMISSION REQUIREMENTS OCT/2010
(AS7038)
The purpose of this clause is to advise offerors of the transmission requirements of proposal data via electronic mail and non-
electronic mail. For detailed proposal preparation, please follow instructions as given in Solicitation Section L.
Electronic mail submission requirement: _______________________________________
Size Restriction:
There is a size restriction on electronic submission of proposals submitted to addresses at Picatinny Arsenal via e-mail; the maximum
file size that can be accommodated in the e-mail system is 15 MB.
Acceptable Format:
All material must be submitted in Microsoft Office format: the proposal must be in Word format (Windows Platform); pricing/cost
information must be in Excel format with all formulas intact (Windows Platform). Please identify the format in your transmittal.
Large files need to be compressed using the utility called WinZip (<http://www.winzip.com>). Due to the large number of infected
messages with ZIP attachments, all ZIP attachments will be blocked by ARDEC mail server. You need to rename the file extension for all
your submissions so the files will get through our mail server. You also need to provide instructions on how to convert your modified
file extensions back to their original format in the same message.
In addition, ARDEC's Internet E-mail Attachment Policy restricts distribution of the following types of e-mail attachments: *.ADE,
*.ADP, *.BAT, *.B64, *.BAS, *.BHX, *.CEO, *.CE0, *.CHM, *.CMD, *.COM, *.CPL, *.CRT, *.DBX, *.DLL, *.DOT, *.EML, *.EXE, *.HQX, *.HTA,
*.INF, *.INS, *.ISP, *.JS, *.JSE, *.LNK, *.MDE, *.MIM, *.MSC, *.MSI, *.MSP, *.NCH, *.OCX, *.PCD, *.PI, *.PIF, *.REG, *.SCR, *.SCT,
*.SHB, *.SHS, *.UU, *.UUE, *.VB, *.VBE, *.VBS, *.WSC, *.WSF, *.WSH, *.XXE, *.ZIP
If you need to send us attachments with the above mentioned file types, you will need to rename the file extension for all your
submissions, so that these files will get through our mail server. You will also need to provide detailed instructions on how to convert
your modified file extensions back to their original format.
In addition, it is required that electronic submissions are scanned with the most up-to-date virus definition, with antivirus software
of your choice. ARDEC mail server will block all messages that are infected with a virus.
Non-electronic submission requirement: ______________________________________
Any proposal that is submitted via U.S. Mail or commercial courier must be digitized on a Compact Disc (CD) or, Digital Versatile Disc/
Digital Video Disc (DVD), and labeled with the file names and format(s) (Word, Excel, etc). It is not necessary to zip material
submitted via non-electronic channel.
Special Notice to Offerors: ___________________________
Offerors are responsible for obtaining a receipt confirmation, via separate Email, with the corresponding PCO, to ensure the electronic
proposal has been received by the date/time set forth in the solicitation for receipt of offers.
4 52.224-4001 DISCLOSURE OF UNIT PRICE INFORMATION (AS7029) OCT/2010
This constitutes notification pursuant to Executive Order 12600, Pre-Disclosure Notification Procedures for Confidential Commercial
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Information (June 23, 1987), of our intention to release unit prices in response to any request under the Freedom of Information Act, 5
USC 552. Unit price is defined as the contract price per unit or item purchased. We consider any objection to be waived unless the
contracting officer is notified of your objection to such posting prior to submission of initial proposals.
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SUPPLIES OR SERVICES AND PRICES/COSTS
Contract Minimum/Maximum ________________________
The minimum contract value is $15,956,148.00. The maximum contract value is $29,429,017.00.
Pricing Matrix ______________
The offeror shall only fill in Firm Fixed Price Unit Prices for all quantity ranges for CLIN 0001AA and CLIN 0002AA. NOTE: THE OFFEROR
SHALL NOT FILL IN EXTENDED AMOUNTS. The firm fixed price unit prices shall be based on F.O.B. Destination. Submission of data in __________
accordance with the Contract Data Requirements List (CDRL), DD Form 1423, is a requirement for the contract but shall not be separately
priced. See the section pertaining to pricing in Section L and M for details. In order to be eligible for award, offerors must propose
Firm Fixed Price Unit Prices for all quantity ranges, and for all CLINS.
Note: The Government may determine that a proposal is unacceptable if the prices proposed are materially unbalanced. Unbalanced pricing
exists when, despite an acceptable total evaluated price, one or more contract line items is/are significantly overstated or understated
as indicated by the application of cost or price analysis techniques. A proposal may be rejected if the Contracting Officer determines
the lack of balance poses an unacceptable risk to the Government.
*** END OF NARRATIVE B0001 ***
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PIIN/SIIN
Page of
Reference No. of Document Being Continued
MOD/AMD
0001 SINGLE STORY SHELTERS $ _____________________ __________________
See Range Pricing
Range Quantities ________________
FROM TO UNIT PRICE ____ __ __________
1 20 $
21 50 $
CLIN 0001 is for energy efficient Single Story
shelters in accordance with the attached Performanace
Work Statement dated 31 August 2012 and the terms and
conditions contained in this solicitation. Unless
otherwise directed in Delivery Orders, the period of
performance shall be within eight months after
Delivery Order issuance.
(End of narrative B001)
Packaging and Marking _____________________
Inspection and Acceptance _________________________
INSPECTION: Destination ACCEPTANCE: Destination
FOB POINT: Destination
SHIP TO:
(W91XRV) PR AREA SPT GRP KUWAIT
OPERATION ENDURING FREEDOM
HAZMAT
APO AE 09366
0002 TWO STORY SHELTERS $ __________________ __________________
See Range Pricing
1 20 $
21 50 $
51 75 $
76 100 $
101 125 $
126 160 $
161 230 $
CLIN 0002 is for energy efficient Two Story shelters
in accordance with the attached Performanace Work
Statement dated 31 August 2012 and the terms and
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Page of
MOD/AMD
SHIP TO:
HAZMAT
APO AE 09366
0003 START WORK MEETING REPORT
0003AA DATA ITEM $ ** NSP ** $ ** NSP ** __________________________ ______________ __________________
NOUN: START WORK MEETING REPORT
Start Work Meeting Report IAW requirements IAW DI-
ADMN-18250A, Exhibit A, Data Item no. A001, Sequence
no D001 and Statement of Work Paragraph 4.2.1.
See Section J, Exhibit A.
This CDRL is not separately priced (NSP).
Deliveries or Performance _________________________
DLVR SCH PERF COMPL
REL CD QUANTITY DATE ________ ______________ __________
001 0 SEE DD FORM 1423
0004 MONTHLY STATUS REPORT
0004AA DATA ITEM $ ** NSP ** $ ** NSP ** ______________________ ______________ __________________
NOUN: MONTHLY STATUS REPORT
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PIIN/SIIN
Page of
MOD/AMD
Monthly Status Report IAW requirements IAW DI-MGMT-
80368A, Exhibit B, Data Item no B001, Sequence no.
D001 and Statement of Work Paragraph 4.2.2.
See Section J, Exhibit B.
DLVR SCH PERF COMPL
0005 SHELTER GUIDE
0005AA DATA ITEM $ ** NSP ** $ ** NSP ** ______________ ______________ __________________
NOUN: SHELTER GUIDE
Shelter Guide Report IAW requirements IAW DI-TMSS-
81815, Exhibit C00l, Sequence no. D001 and Statement
of Work Paragraph 4.2.3.
See Section J, Exhibit C.
DLVR SCH PERF COMPL
0006 SHELTER SPECIFICATIONS
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PIIN/SIIN
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MOD/AMD
0006AA DATA ITEM $ ** NSP ** $ ** NSP ** _______________________ ______________ __________________
NOUN: SHELTER SPECIFICATIONS
Shelter Specification Report IAW requirements IAW DI-
SDMP-81261, Exhibit D, Data Item no D001. Sequence
no. D001 and Statement of Work Paragraph 4.2.4.
See Section J, Exhibit D.
DLVR SCH PERF COMPL
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PIIN/SIIN MOD/AMD
DESCRIPTION/SPECIFICATIONS/WORK STATEMENT
Please see Section J, Attachment 0001 entitled "Performance Work Statement (PWS).
*** END OF NARRATIVE C0001 ***
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INSPECTION AND ACCEPTANCE
1 52.246-2 INSPECTION OF SUPPLIES--FIXED-PRICE AUG/1996
2 52.246-16 RESPONSIBILITY FOR SUPPLIES APR/1984
3 52.246-4000 ACCEPTANCE (ES6901) OCT/2010
[ ] Acceptance will be at the Contractor's plant.
[x ] Acceptance will be at destination.
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DELIVERIES OR PERFORMANCE
1 52.211-17 DELIVERY OF EXCESS QUANTITIES SEP/1989
2 52.242-15 STOP-WORK ORDER AUG/1989
3 52.242-17 GOVERNMENT DELAY OF WORK APR/1984
4 52.247-34 F.O.B. DESTINATION NOV/1991
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CONTRACT ADMINISTRATION DATA
1 52.232-4004 ARMY ELECTRONIC INVOICING INSTRUCTIONS (GS6035) NOV/2011
Contractor shall submit payment request using the following method(s) as mutually agreed to by the Contractor, the Contracting Officer,
the contract administration office, and the payment office.
[ x ] Wide Area Workflow (WAWF) (see instructions below)
[ ] Web Invoicing System (WInS) (https://ecweb.dfas.mil)
[ ] American National Standards Institute (ANSI) X.12 electronic data interchange (EDI) formats
(http://www.X12.org and http://www.dfas.mil/ecedi)
[ ] Other (please specify)_______________________
DFAS POC and Phone: _________________________
WAWF is the preferred method to electronically process vendor request for payment. This application allows DOD vendors to submit and
track Invoices and Receipt/Acceptance documents electronically. Contractors electing to use WAWF shall (i) register to use WAWF at
https://wawf.eb.mil and (ii) ensure an electronic business point of contact (POC) is designated in the Central Contractor Registration
site at http://www.ccr.gov within ten (10) calendar days after award of this contract/order.
WAWF Instructions:
Questions concerning payments should be directed to the Defense Finance and Accounting Service (DFAS) ______________________ at
_________________or faxed to ___________________. Please have your purchase order/contract number ready when calling about payments.
You can easily access payment and receipt information using the DFAS web site at http://www.dfas.mil/money/vendor. Your purchase
order/contract number or invoice number will be required to inquire about the status of your payment.
The following codes and information will be required to assure successful flow of WAWF documents.
TYPE OF DOCUMENT [check as appropriate]
[ ] Commercial Item Financing
[ ] Construction Invoice (Contractor Only)
[ ] Invoice (Contractor Only)
[ ] Invoice and receiving Report (COMBO)
[ ] Invoice as 2-in-1 (Services only)
[ ] Performance Based Payment (Government Only)
[ ] Progress Payment (Government Only)
[ ] Cost Voucher (Government Only)
[ ] Receiving Report (Government Only)
[ ] Receiving Report with Unique Identification (UID) Data (Government Only) UID is a new
globally unique part identifier containing data elements used to track DOD parts through
their life cycle.
[ ] Summary Cost Voucher (Government Only)
CAGE CODE: ________________
ISSUE BY DODAAC: W15QKN
ADMIN BY DODAAC: _______________
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INSPECT BY DODAAC: ________________
ACCEPT BY DODAAC: ________________
SHIP TO DODAAC: ________________
PAYMENT OFFICE FISCAL STATION CODE: ________________
EMAIL POINTS OF CONTACT LISTING: ________________
INSPECTOR: ________________
ACCEPTOR: ________________
RECEIVING OFFICE POC: ________________
CONTRACT ADMINISTRATOR: ________________
CONTRACTING OFFICER: ________________
ADDITIONAL CONTACT: ________________
For more information contact: _____________________________
Contracting Officer ___________________
Grace Battle
Army Contracting Command - New Jersey
ACC-NJ-IT
5418 South Scott Plaza
Fort Dix, NJ 08640
609-562-6278
Contract Specialist ___________________
Anthony Mauriello
ACC-NJ-IT
Fort Dix, NJ 08640
609-562-1763
*** END OF NARRATIVE G0001 ***
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SPECIAL CONTRACT REQUIREMENTS
1 52.242-4001 POST AWARD CONFERENCE (HS6920) OCT/2010
Post Award Conference (definition) - A first meeting of key Contractor/Government players. This conference is to assure a clear and
mutual understanding of the contract between the Government and contractor. The Post Award conference includes discussions on contract
terms, conditions and requirements, line items and sequence of events needed for successful execution of the subject contract effort.
The contractor shall host a post award conference/meeting at the contractors facility to include contractor and government contracting,
management, quality assurance and technical personnel no later than 15 calendar days after contract award. The contractor shall
participate with the government to arrange a schedule and agenda for the post award conference prior to the meeting. The contractor
shall provide the government with minutes of the post award meeting (DI-ADMN-81505 tailored).
2 52.000-4002 LEVEL 1 ANTI TERRORIST AWARENESS TRAINING REQUIREMENTS FOR CONTRACTOR OCT/2010
EMPLOYEES (HS7040)
(a) All contractor employees requiring access to any Federally-controlled facility and logical access to Federally controlled
information systems except for national security systems as defined by 44 U.S.C. 3542(b)(2), should be certified in Level 1 Anti
Terrorism Training. The training is accessible from any computer with access to the World Wide Web and is available at
https:/atlevel1.dtic.mil/at. The contractor is responsible for ensuring that the training has been satisfactorily completed and that
valid certificates of completion have been submitted to the Contracting Officers Representative (COR) with a copy furnished to the
Contracting Officer. The Certificates are valid for one year, therefore, training shall be completed every year for the duration of the
contract.
(b) The term Federally-controlled facility is defined as:
(1) Federally-owned buildings or leased space, whether for single or multi-tenant occupancy, and its grounds and approaches,
all or any portion of which is under the jurisdiction, custody or control of a department or agency;
(2) Federally-controlled commercial space shared with non-government tenants. For example, if a department or agency leased the
10th floor of a commercial building, the Directive applies to the 10th floor only;
(3) Government-owned, contractor-operated facilities, including laboratories engaged in national defense research and
production activities; and
(4) Facilities under a management and operating contract, such as for the operation, maintenance, or support of a Government-
owned or Government-controlled research, development, special production, or testing establishment.
(c) The term Federally-controlled information system means an information system (44 U.S.C. 3502(8)) used or operated by a Federal
agency, or a contractor or other organization on behalf of the agency (44 U.S.C. 3544(a)).
(d) The term "contractor employee" includes employees, agents, students or student interns, or representatives and all employees,
agents or representatives of all subcontractors and suppliers.
3 52.225-4000 ARMY MATERIEL COMMAND (AMC) ADMINISTRATIVE REQUIREMENTS FOR DEPLOYED OCT/2010
CONTRACTORS (HS7031)
(1) In order to maintain accountability of all deployed personnel in the Area of Operation (AO) the Contractor shall follow instructions
issued by the Army Materiel Command's Logistics Support Element (AMC LSE) or other Contracting Officer's designated representative to
provide, and keep current, requested data on Contractor Personnel for entry into military personnel database systems.
(2) The Contractor shall coordinate with the AMC LSE or other Contracting Officer's designated representative for logistics support, as
follows:
(i) Upon initial entry into the AO;
(ii) upon initiation of contract performance;
(iii) upon relocation of contract operations within the AO; and
(iv) upon exiting the AO.
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CONTRACT CLAUSES
1 52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS OCT/2010
2 52.203-16 PREVENTING PERSONAL CONFLICTS OF INTEREST DEC/2011
3 52.204-4 PRINTED OR COPIED DOUBLE-SIDED ON POSTCONSUMER FIBER CONTENT PAPER MAY/2011
4 52.215-8 ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT OCT/1997
5 52.215-14 INTEGRITY OF UNIT PRICES OCT/2010
6 52.222-20 WALSH-HEALEY PUBLIC CONTRACTS ACT OCT/2010
7 52.222-29 NOTIFICATION OF VISA DENIAL JUN/2003
8 52.223-5 POLLUTION PREVENTION AND RIGHT-TO-KNOW INFORMATION MAY/2011
9 52.228-3 WORKERS' COMPENSATION INSURANCE (DEFENSE BASE ACT) APR/1984
10 52.229-3 FEDERAL, STATE, AND LOCAL TAXES APR/2003
11 52.229-6 TAXES--FOREIGN FIXED-PRICE CONTRACTS JUN/2003
12 52.232-8 DISCOUNTS FOR PROMPT PAYMENT FEB/2002
13 52.232-9 LIMITATION ON WITHHOLDING OF PAYMENTS APR/1984
14 52.232-11 EXTRAS APR/1984
15 52.232-17 INTEREST OCT/2010
16 52.242-13 BANKRUPTCY JUL/1995
17 52.246-24 LIMITATION OF LIABILITY--HIGH-VALUE ITEMS FEB/1997
18 52.247-68 REPORT OF SHIPMENT (REPSHIP) FEB/2006
19 52.249-2 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) APR/2012
20 52.249-8 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) APR/1984
21 52.253-1 COMPUTER GENERATED FORMS JAN/1991
22 252.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE DEC/1991
23 252.204-7006 BILLING INSTRUCTIONS OCT/2005
24 252.204-7008 EXPORT-CONTROLLED ITEMS APR/2010
25 252.209-7004 SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE DEC/2006
GOVERNMENT OF A TERRORIST COUNTRY
26 252.223-7006 PROHIBITION ON STORAGE AND DISPOSAL OF TOXIC AND HAZARDOUS MATERIALS APR/2012
27 252.223-7008 PROHIBITION OF HEXAVALENT CHROMIUM MAY/2011
28 252.225-7004 REPORT OF INTENDED PERFORMANCE OUTSIDE THE UNITED STATES AND CANADA-- OCT/2010
SUBMISSION AFTER AWARD
29 252.225-7005 IDENTIFICATION OF EXPENDITURES IN THE UNITED STATES JUN/2005
30 252.225-7039 CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS JUN/2012
31 252.225-7041 CORRESPONDENCE IN ENGLISH JUN/1997
32 252.227-7015 TECHNICAL DATA--COMMERCIAL ITEMS DEC/2011
33 252.232-7003 ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS JUN/2012
34 252.232-7010 LEVIES ON CONTRACT PAYMENTS DEC/2006
35 252.233-7001 CHOICE OF LAW (OVERSEAS) JUN/1997
36 252.242-7005 CONTRACTOR BUSINESS SYSTEMS FEB/2012
37 252.243-7001 PRICING OF CONTRACT MODIFICATIONS DEC/1991
38 252.243-7002 REQUESTS FOR EQUITABLE ADJUSTMENT MAR/1998
39 252.244-7001 CONTRACTOR PURCHASING SYSTEM ADMINISTRATION JUN/2012
40 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR AUG/2012
EXECUTIVE ORDERS--COMMERCIAL ITEMS
(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract
by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:
(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22U.S.C. 7104(g)).
--Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).
(2) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).
(3) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Pub. L. 108-77, 108-78).
(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the contracting officer has indicated as being
incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial
items:
_x__ (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Sep 2006), with Alternate I (Oct 1995)(41 U.S.C. 253g and
10 U.S.C. 2402).
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__x_ (2) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251
note)).
___ (3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (Jun 2010) (Section 1553 of
Pub. L. 111-5). (Applies to contracts funded by the American Recovery and Reinvestment Act of 2009.)
__x_ (4) 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards (Aug 2012) (Pub. L. 109-282) (31 U.S.C. 6101
note).
___ (5) 52.204-11, American Recovery and Reinvestment Act -- Reporting Requirements (JUL 2010) (Pub. L. 111-5).
__x_ (6) 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for
Debarment (DEC 2010) (31 U.S.C. 6101 note).
__x_ (7) 52.209-9, Updates of Publicly Available Information Regarding Responsibility Matters (FEB 2012) (41 U.S.C. 2313).
__x_ (8) 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations (MAY 2012)(section 740 of Division C of Public
Law 111-117, section 743 of Division D of Public Law 111-8, and section 745 of Division D of Public Law 110-161)
___ (9) 52.219-3, Notice of Total HUBZone Set-Aside or Sole-Source Award (Nov 2011)(15 U.S.C. 657a).
___ (10) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (Jan 2011) (if the offeror elects to
waive the preference, it shall so indicate in its offer)(15 U.S.C. 657a).
___ (11) [Reserved]
_x__ (12)(i) 52.219-6, Notice of Total Small Business Set-Aside (Nov 2011) (15 U.S.C. 644).
___ (ii) Alternate I (Nov 2011) of 52.219-6.
___ (iii) Alternate II (Nov 2011) of 52.219-6.
___ (13)(i) 52.219-7, Notice of Partial Small Business Set-Aside (June 2003)(15 U.S.C. 644).
___ (ii) Alternate I (Oct 1995) of 52.219-7.
___ (iii) Alternate II (Mar 2004) of 52.219-7.
___ (14) 52.219-8, Utilization of Small Business Concerns (Jan 2011) (15 U.S.C. 637(d)(2) and (3)).
___ (15)(i) 52.219-9, Small Business Subcontracting Plan (Jan 2011)(15 U.S.C. 637 (d)(4)).
___ (iii) Alternate II (Oct 2001) of 52.219-9.
___ (iv) Alternate III (Jul 2010) of 52.219-9.
___ (16) 52.219-13, Notice of Set-Aside of Orders (NOV 2011) (15 U.S.C. 644(r)).
__x_ (17) 52.219-14, Limitations on Subcontracting (Nov 2011)(15 U.S.C. 637(a)(14)).
___ (18) 52.219-16, Liquidated Damages--Subcontracting Plan (JAN 1999) (15 U.S.C. 637(d)(4)(F)(i)).
___ (19)(i) 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns (Oct 2008)(10 U.S.C. 2323)
(if the offeror elects to waive the adjustment, it shall so indicate in its offer).
___ (ii) Alternate I (June 2003) of 52.219-23.
___ (20) 52.219-25, Small Disadvantaged Business Participation ProgramDisadvantaged Status and Reporting (Dec 2010)(Pub. L. 103-355,
section 7102, and 10 U.S.C. 2323).
___ (21) 52.219-26, Small Disadvantaged Business Participation ProgramIncentive Subcontracting (Oct 2000)(Pub. L. 103-355, section
7102, and 10 U.S.C. 2323).
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___ (22) 52.219-27, Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside (Nov 2011)(15 U.S.C. 657 f)
___ (23) 52.219-28, Post Award Small Business Program Rerepresentation (APR 2012)(15 U.S.C. 632(a)(2)).
___ (24) 52.219-29 Notice of Total Set-Aside for Economically Disadvantaged Women-Owned Small Business (EDWOSB) Concerns (Apr 2012)
(15 U.S.C. 637(m)).
___ (25) 52.219-30 Notice of Total Set-Aside for Women-Owned Small Business (WOSB) Concerns Eligible Under the WOSB Program (Apr
2012) (15 U.S.C. 637(m)).
__x_ (26) 52.222-3, Convict Labor (June 2003)(E.O. 11755).
__x_ (27) 52.222-19, Child LaborCooperation with Authorities and Remedies (Mar 2012) (E.O. 13126).
__x_ (28) 52.222-21, Prohibition of Segregated Facilities (Feb 1999).
__x_ (29) 52.222-26, Equal Opportunity (Mar 2007)(E.O. 11246).
__x_ (30) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep
2010)(38 U.S.C. 4212).
__x_ (31) 52.222-36, Affirmative Action for Workers with Disabilities (Oct 2010)(29 U.S.C. 793).
__x_ (32) 52.222-37, Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep
2010)(38 U.S.C. 4212).
__x_ (33) 52.222-40, Notification of Employee Rights Under the National Labor Relations Act (DEC 2010) (E.O. 13496).
___ (34) 52.222-54, Employment Eligibility Verification (Jul 2012). (Executive Order 12989). (Not applicable to the acquisition of
commercially available off-the-shelf items or certain other types of commercial items as prescribed in 22.1803.)
___ (35)(i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items (May 2008) (42 U.S.C.
6962(c)(3)(A)(ii)). (Not applicable to the acquisition of commercially available off-the-shelf items.)
___ (ii) Alternate I (May 2008) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)). (Not applicable to the acquisition of commercially available
off-the-shelf items.)
__x_ (36) 52.223-15, Energy Efficiency in Energy-Consuming Products (Dec 2007) (42 U.S.C. 8259b).
___ (37)(i) 52.223-16, IEEE 1680 Standard for the Environmental Assessment of Personal Computer Products (DEC 2007) (E.O. 13423).
___ (ii) Alternate I (DEC 2007) of 52.223-16.
__x_ (38) 52.223-18, Encouraging Contractor Policies to Ban Text Messaging While Driving (AUG 2011) (E.O. 13513).
___ (39) 52.225-1, Buy American Act--Supplies (Feb 2009)(41 U.S.C. 10a-10d).
___ (40)(i) 52.225-3, Buy American Act Free Trade Agreements -- Israeli Trade Act (MAY 2012) (41 U.S.C. 10a-10d, 19 U.S.C. 3301
note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, Pub. L. 108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 109-283, and 110-138).
___ (ii) Alternate I (Mar 2012) of 52.225-3.
___ (iv) Alternate III (Mar 2012) of 52.225-3.
___ (41) 52.225-5, Trade Agreements (MAY 2012) (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 note).
_x__ (42) 52.225-13, Restrictions on Certain Foreign Purchases (Jun 2008) (E.o.s, proclamations, and statutes administered by the
Office of Foreign Assets Control of the Department of the Treasury).
___ (43) 52.226-4, Notice of Disaster or Emergency Area Set-Aside (Nov 2007) (42 U.S.C. 5150).
___ (44) 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area (Nov 2007)(42 U.S.C. 5150).
___ (45) 52.232-29, Terms for Financing of Purchases of Commercial Items (Feb 2002)(41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
___ (46) 52.232-30, Installment Payments for Commercial Items (Oct 1995)(41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
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__x_ (47) 52.232-33, Payment by Electronic Funds Transfer -- Central Contractor Registration (Oct. 2003)(31 U.S.C. 3332).
___ (48) 52.232-34, Payment by Electronic Funds Transfer -- Other Than Central Contractor Registration (May 1999)(31 U.S.C. 3332).
___ (49) 52.232-36, Payment by Third Party (FEB 2010)(31 U.S.C. 3332).
___ (50) 52.239-1, Privacy or Security Safeguards (Aug 1996)(5 U.S.C. 552a).
__x_ (51)(i) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006)(46 U.S.C. Appx 1241(b) and 10 U.S.C.
2631).
___ (ii) Alternate I (Apr 2003) of 52.247-64.
(c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to commercial services, that the Contracting
Officer has indicated as being incorporated in this contract by reference to implement provisions of law or executive orders applicable
to acquisitions of commercial items:
__x_ (1) 52.222-41, Service Contract Act of 1965, (Nov 2007)(41 U.S.C. 351, et seq.).
__x_ (2) 52.222-42, Statement of Equivalent Rates for Federal Hires (May 1989)(29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
___ (3) 52.222-43, Fair Labor Standards Act and Service Contract Act -- Price Adjustment (Multiple Year and Option Contracts) (Sep
2009)(29 U.S.C.206 and 41 U.S.C. 351, et seq.).
___ (4) 52.222-44, Fair Labor Standards Act and Service Contract Act -- Price Adjustment (Sep 2009)(29 U.S.C. 206 and 41 U.S.C. 351,
et seq.).
___ (5) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of
Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.).
___ (6) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--Requirements (Feb 2009)
(41 U.S.C. 351, et seq.).
___ (7) 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations. (Mar 2009) (Pub. L. 110-247).
___ (8) 52.237-11, Accepting and Dispensing of $1 Coin (Sep 2008) (31 U.S.C. 5112(p)(1)).
________________________________________________
(d) Comptroller General Examination of Record. The Contractor shall comply with the provisions of this paragraph (d) if this contract
was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-
2, Audit and Records -- Negotiation.
(1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall have access to and
right to examine any of the Contractors directly pertinent records involving transactions related to this contract.
(2) The Contractor shall make available at its offices at all reasonable times the records, materials, and other evidence for
examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR
Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If this contract is completely or partially
terminated, the records relating to the work terminated shall be made available for 3 years after any resulting final termination
settlement. Records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating
to this contract shall be made available until such appeals, litigation, or claims are finally resolved.
(3) As used in this clause, records include books, documents, accounting procedures and practices, and other data, regardless of type
and regardless of form. This does not require the Contractor to create or maintain any record that the Contractor does not maintain in
the ordinary course of business or pursuant to a provision of law.
(e)(1) Notwithstanding the requirements of the clauses in paragraphs (a), (b), (c) and (d) of this clause, the Contractor is not
required to flow down any FAR clause, other than those in this paragraph (e)(1) in a subcontract for commercial items. Unless otherwise
indicated below, the extent of the flow down shall be as required by the clause--
(i) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251
note)).
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(ii) 52.219-8, Utilization of Small Business Concerns (Dec 2010)(15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer
further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $650,000 ($1.5 million
for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting
opportunities.
(iii) [Reserved]
(iv) 52.222-26, Equal Opportunity (Oct 2010)(E.O. 11246).
(v) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep
2010)(38 U.S.C. 4212).
(vi) 52.222-36, Affirmative Action for Workers with Disabilities (June 1998)(29 U.S.C. 793).
(viii) 52.222-41, Service Contract Act of 1965, (Nov 2007), flow down required for all subcontracts subject to the Service Contract
Act of 1965 (41 U.S.C. 351, et seq.)
___ Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).
(x) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of
Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.)
(xi) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--Requirements (Feb 2009)
(41 U.S.C. 351, et seq.)
(xii) 52.222-54, Employment Eligibility Verification (Jul 2012).
(xiii) 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations. (Mar 2009) (Pub. L. 110-247). Flow down required in
accordance with paragraph (e) of FAR clause 52.226-6.
(xiv) 52.247-64, Preference for Privately-Owned U.S. Flag Commercial Vessels (Feb 2006)(46 U.S.C. Appx 1241(b) and 10 U.S.C. 2631).
Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.
(2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of additional clauses
necessary to satisfy its contractual obligations.
(End of Clause)
41 52.216-19 ORDER LIMITATIONS OCT/1995
(a) Minimum order. When the Government requires supplies or services covered by this contract in an amount of less than 1, the
Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract.
(b) Maximum order. The Contractor is not obligated to honor --
(1) Any order for a single item in excess of 280;
(2) Any order for a combination of items in excess of 280; or
(3) A series of orders from the same ordering office within 30 days that together call for quantities exceeding the limitation in
subparagraph (b)(1) or (2) of this section.
(c) If this is a requirements contract (i.e., includes the Requirements clause at subsection 52.216-21 of the Federal Acquisition
Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement
exceeds the maximum-order limitations in paragraph (b) of this section.
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(d) Notwithstanding paragraphs (b) and (c) of this section, the Contractor shall honor any order exceeding the maximum order
limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within -5- days after issuance, with
written notice stating the Contractors intent not to ship the item (or items) called for and the reasons. Upon receiving this notice,
the Government may acquire the supplies or services from another source.
(End of Clause)
42 52.216-22 INDEFINITE QUANTITY OCT/1995
(a) This is an indefinite-quantity contract for the supplies or services specified, and effective for the period stated, in the
Schedule. The quantities of supplies and services specified in the Schedule are estimates only and are not purchased by this contract.
(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. The Contractor
shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the
quantity designated in the Schedule as the maximum. The Government shall order at least the quantity of supplies or services designated
in the Schedule as the minimum.
(c) Except for any limitations on quantities in the Order Limitations clause or in the Schedule, there is no limit on the number of
orders that may be issued. The Government may issue orders requiring delivery to multiple destinations or performance at multiple
locations.
(d) Any order issued during the effective period of this contract and not completed within that period shall be completed by the
Contractor within the time specified in the order. The contract shall govern the Contractor's and Government's rights and obligations
with respect to that order to the same extent as if the order were completed during the contracts effective period; provided, that the
Contractor shall not be required to make any deliveries under this contract after Eight months.
(End of Clause)
43 52.225-19 CONTRACTOR PERSONNEL IN A DESIGNATED OPERATIONAL AREA OR SUPPORTING A MAR/2008
DIPLOMATIC OR CONSULAR MISSION OUTSIDE THE UNITED STATES
(a) Definitions. As used in this clause
Chief of mission means the principal officer in charge of a diplomatic mission of the United States or of a United States office
abroad which is designated by the Secretary of State as diplomatic in nature, including any individual assigned under section 502(c) of
the Foreign Service Act of 1980 (Pub. L. 96-465) to be temporarily in charge of such a mission or office.
Combatant commander means the commander of a unified or specified combatant command established in accordance with 10 U.S.C. 161.
Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the
conduct or support of specified military operations.
Supporting a diplomatic or consular mission means performing outside the United States under a contract administered by Federal agency
personnel who are subject to the direction of a chief of mission.
(b) General.
(1) This clause applies when Contractor personnel are required to perform outside the United States--
(i) In a designated operational area during
(A) Contingency operations;
(B) Humanitarian or peacekeeping operations; or
(C) Other military operations; or military exercises, when designated by the Combatant Commander; or
(ii) When supporting a diplomatic or consular mission--
(A) That has been designated by the Department of State as a danger pay post (see http://aoprals.state.gov/Web920/danger--pay--
all.asp); or
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(B) That the Contracting Officer has indicated is subject to this clause.
(2) Contract performance may require work in dangerous or austere conditions. Except as otherwise provided in the contract, the
Contractor accepts the risks associated with required contract
performance in such operations.
(3) Contractor personnel are civilians.
(i) Except as provided in paragraph (b)(3)(ii) of this clause, and in accordance with paragraph (i)(3) of this clause, Contractor
personnel are only authorized to use deadly force in self-defense.
(ii) Contractor personnel performing security functions are also authorized to use deadly force when use of such force reasonably
appears necessary to execute their security mission to protect assets/ persons, consistent with the terms and conditions contained in
the contract or with their job description and terms of employment.
(4) Service performed by Contractor personnel subject to this clause is not active duty or service under 38 U.S.C. 106 note.
(c) Support. Unless specified elsewhere in the contract, the Contractor is responsible for all logistical and security support required
for Contractor personnel engaged in this contract.
(d) Compliance with laws and regulations. The Contractor shall comply with, and shall ensure that its personnel in the designated
operational area or supporting the diplomatic or consular mission are familiar with and comply with, all applicable--
(1) United States, host country, and third country national laws;
(2) Treaties and international agreements;
(3) United States regulations, directives, instructions, policies, and procedures; and
(4) Force protection, security, health, or safety orders, directives, and instructions issued by the Chief of Mission or the Combatant
Commander; however, only the Contracting Officer is authorized to modify the terms and conditions of the contract.
(e) Preliminary personnel requirements. (1) Specific requirements for paragraphs (e)(2)(i) through (e)(2)(vi) of this clause will be set
forth in the statement of work, or elsewhere in the contract.
(2) Before Contractor personnel depart from the United States or a third country, and before Contractor personnel residing in the host
country begin contract performance in the designated operational area or supporting the diplomatic or consular mission, the Contractor
shall ensure the following:
(i) All required security and background checks are complete and acceptable.
(ii) All personnel are medically and physically fit and have received all required vaccinations.
(iii) All personnel have all necessary passports, visas, entry permits, and other documents required for Contractor personnel to
enter and exit the foreign country, including those required for in-transit countries.
(iv) All personnel have received--
(A) A country clearance or special area clearance, if required by the chief of mission; and
(B) Theater clearance, if required by the Combatant Commander.
(v) All personnel have received personal security training. The training must at a minimum--
(A) Cover safety and security issues facing employees overseas;
(B) Identify safety and security contingency planning activities; and
(C) Identify ways to utilize safety and security personnel and other resources appropriately.
(vi) All personnel have received isolated personnel training, if specified in the contract. Isolated personnel are military or
civilian personnel separated from their unit or organization in an environment requiring them to survive, evade, or escape while
awaiting rescue or recovery.
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(vii) All personnel who are U.S. citizens are registered with the U.S. Embassy or Consulate with jurisdiction over the area of
operations on-line at http://www.travel.state.gov.
(3) The Contractor shall notify all personnel who are not a host country national or ordinarily resident in the host country that--
(i) If this contract is with the Department of Defense, or the contract relates to supporting the mission of the Department of
Defense outside the United States, such employees, and dependents residing with such employees, who engage in conduct outside the United
States that would constitute an offense punishable by imprisonment for more than one year if the conduct had been engaged in within the
special maritime and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the
United States (see the Military Extraterritorial Jurisdiction Act of 2000 (18 U.S.C. 3261 et seq.);
(ii) Pursuant to the War Crimes Act, 18 U.S.C. 2441, Federal criminal jurisdiction also extends to conduct that is determined to
constitute a war crime when committed by a civilian national of the United States; and
(iii) Other laws may provide for prosecution of U.S. nationals who commit offenses on the premises of United States diplomatic,
consular, military or other United States Government missions outside the United States (18 U.S.C. 7(9)).
(f) Processing and departure points. The Contractor shall require its personnel who are arriving from outside the area of performance to
perform in the designated operational area or supporting the diplomatic or consular mission to--
(1) Process through the departure center designated in the contract or complete another process as directed by the Contracting
Officer;
(2) Use a specific point of departure and transportation mode as directed by the Contracting Officer; and
(3) Process through a reception center as designated by the Contracting Officer upon arrival at the place of performance.
(g) Personnel data. (1) Unless personnel data requirements are otherwise specified in the contract, the Contractor shall establish and
maintain with the designated Government official a current list of all Contractor personnel in the areas of performance. The Contracting
Officer will inform the Contractor of the Government official designated to receive this data and the appropriate system to use for this
effort.
(2) The Contractor shall ensure that all employees on this list have a current record of emergency data, for notification of next of
kin, on file with both the Contractor and the designated Government official.
(h) Contractor personnel. The Contracting Officer may direct the Contractor, at its own expense, to remove and replace any Contractor
personnel who fail to comply with or violate applicable requirements of this contract. Such action may be taken at the Government's
discretion without prejudice to its rights under any other provision of this contract, including termination for default or cause.
(i) Weapons.
(1) If the Contracting Officer, subject to the approval of the Combatant Commander or the Chief of Mission, authorizes the carrying of
weapons--
(i) The Contracting Officer may authorize an approved Contractor to issue Contractor-owned weapons and ammunition to specified
employees; or
(ii) The -1- may issue Government-furnished weapons and ammunition to the Contractor for issuance to specified Contractor employees.
(2) The Contractor shall provide to the Contracting Officer a specific list of personnel for whom authorization to carry a weapon is
requested.
(3) The Contractor shall ensure that its personnel who are authorized to carry weapons--
(i) Are adequately trained to carry and use them--
(A) Safely;
(B) With full understanding of, and adherence to, the rules of the use of force issued by the Combatant Commander or the Chief of
Mission; and
(C) In compliance with applicable agency policies, agreements, rules, regulations, and other applicable law;
(ii) Are not barred from possession of a firearm by 18 U.S.C. 922; and
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(iii) Adhere to all guidance and orders issued by the Combatant Commander or the Chief of Mission regarding possession, use, safety,
and accountability of weapons and ammunition.
(4) Upon revocation by the Contracting Officer of the Contractor's authorization to possess weapons, the Contractor shall ensure that
all Government-furnished weapons and unexpended ammunition are returned as directed by the Contracting Officer.
(5) Whether or not weapons are Government-furnished, all liability for the use of any weapon by Contractor personnel rests solely with
the Contractor and the Contractor employee using such weapon.
(j) Vehicle or equipment licenses. Contractor personnel shall possess the required licenses to operate all vehicles or equipment
necessary to perform the contract in the area of performance.
(k) Military clothing and protective equipment.
(1) Contractor personnel are prohibited from wearing military clothing unless specifically authorized by the Combatant Commander. If
authorized to wear military clothing, Contractor personnel must wear distinctive patches, armbands, nametags, or headgear, in order to
be distinguishable from military personnel, consistent with force protection measures.
(2) Contractor personnel may wear specific items required for safety and security, such as ballistic, nuclear, biological, or
chemical protective equipment.
(l) Evacuation.
(1) If the Chief of Mission or Combatant Commander orders a mandatory evacuation of some or all personnel, the Government will provide
to United States and third country national Contractor personnel the level of assistance provided to private United States citizens.
(2) In the event of a non-mandatory evacuation order, the Contractor shall maintain personnel on location sufficient to meet
contractual obligations unless instructed to evacuate by the Contracting Officer.
(m) Personnel recovery.
(1) In the case of isolated, missing, detained, captured or abducted Contractor personnel, the Government will assist in personnel
recovery actions.
(2) Personnel recovery may occur through military action, action by non-governmental organizations, other Government-approved action,
diplomatic initiatives, or through any combination of these options.
(3) The Department of Defense has primary responsibility for recovering DoD contract service employees and, when requested, will
provide personnel recovery support to other agencies in accordance
with DoD Directive 2310.2, Personnel Recovery.
(n) Notification and return of personal effects.
(1) The Contractor shall be responsible for notification of the employee-designated next of kin, and notification as soon as possible
to the U.S. Consul responsible for the area in which the event procured, if the employee--
(i) Dies;
(ii) Requires evacuation due to an injury; or
(iii) Is isolated, missing, detained, captured, or abducted.
(2) The Contractor shall also be responsible for the return of all personal effects of deceased or missing Contractor personnel, if
appropriate, to next of kin.
(o) Mortuary affairs. Mortuary affairs for Contractor personnel who die in the area of performance will be handled as follows:
(1) If this contract was awarded by DoD, the remains of Contractor personnel will be handled in accordance with DoD Directive 1300.22,
Mortuary Affairs Policy.
(2)(i) If this contract was awarded by an agency other than DoD, the Contractor is responsible for the return of the remains of
Contractor personnel from the point of identification of the remains to the location specified by the employee or next of kin, as
applicable, except as provided in paragraph (o)(2)(ii) of this clause.
(ii) In accordance with 10 U.S.C. 1486, the Department of Defense may provide, on a reimbursable basis, mortuary support for the
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disposition of remains and personal effects of all U.S. citizens upon the request of the Department of State.
(p) Changes. In addition to the changes otherwise authorized by the Changes clause of this contract, the Contracting Officer may, at any
time, by written order identified as a change order, make changes in place of performance or Government-furnished facilities, equipment,
material, services, or site. Any change order issued in accordance with this paragraph shall be subject to the provisions of the Changes
clause of this contract.
(q) Subcontracts. The Contractor shall incorporate the substance of this clause, including this paragraph (q), in all subcontracts that
require subcontractor personnel to perform outside the United States
(1) In a designated operational area during--
(i) Contingency operations;
(ii) Humanitarian or peacekeeping operations; or
(iii) Other military operations; or military exercises, when designated by the Combatant Commander; or
(2) When supporting a diplomatic or consular mission--
(i) That has been designated by the Department of State as a danger pay post (see http://aoprals.state.gov/Web920/danger--pay--
all.asp); or
(ii) That the Contracting Officer has indicated is subject to this clause.
(End of clause)
44 KSCR1-8 (C3) CONTRACT DELIVERY, TRANSPORTATION AND CUSTOMS REQUIREMENTS AUG/2010
(a) CONTRACTOR DELIVERY LOCATION: APO AE 09330
(b) POINT OF CONTACT RESPONSIBLE FOR INSPECTION AND ACCEPTANCE:
NAME: CPT Robert Kraemer
PHONE NO: DSN: 318-438-2126, Cell: 9720-6334
EMAIL: robert.j.kraemer@kuwait.swa.army.mil
(c) FINAL DELIVERY DESTINATION: Base Support Battalion - North, Camp Buehring, Kuwait, APO AE 09330
(d) POINT OF CONTACT AT FINAL DESTINATION:
PHONE NO. DSN: 318-438-2126, Cell: 9720-6334
(e) SHIPPING METHOD: Shipments arriving by express couriers DHL, FedEx, or UPS are processed using AK 302-1 Form, prepared by the
express courier and given to the customer for signature. The signed form is then brought to the HNAC office for clearance through the
KGAC. No AWB is required, only the signed AK form.
(f) KUWAIT CUSTOMS CLEARANCE: Required to ensure smooth transfer of goods between the U.S. Army in Kuwait and the General Administration
of Customs (KGAC) of the State of Kuwait under the Defense Cooperation Agreement (DCA). Customs procedures will address import and
export of all cargo to and from the U.S. Army, Navy, Air Force and Marines by Air, Land or Sea.
CUSTOMS POINT OF CONTACTS:
DHA Customs Office
Bldg 216 room 104
Camp Arifjan-Kuwait
Office: DSN 011-965-2-389-2417 or 5978
(g) Custom Exempt Contract: The Contractor shall furnish to the Contracting Officer, just prior to completion of this contract, a
consolidated inventory of all excess supplies, materials, and equipment imported duty free for use under this contract. The Contractor
shall either pay required duties on the excesses, re-export the excesses, or the excesses shall become the property of the Government.
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(h) Contractor Transportation: All materials and equipment which are not to be incorporated into the project, such as office trailers,
cranes, metal forms, etc., may be shipped free of duty, if the following actions are taken:
(1) Shipments of Materials: All shipments of materials into the country for use in performance of work under this contract and
supplies or services necessary for support of the Contractor's personnel shall be addressed to the shipping address furnished to the
Contractor by the Contracting Officer. Address will be furnished upon request by the Contractor.
(2) Contractor's Responsibilities: The Contractor shall be responsible for all customs clearance actions. All necessary arrangements,
clearance procedures, and coordination with the Host Government customs, will be the sole responsibility of the Contractor. The
Contractor shall submit to the Contracting Officer, with a cover letter, information copies of the shipping documents for the
shipment(s) involved. As a minimum, the following shall be included as enclosures, with the cover letter to the Contracting Officer in
three (3) copies:
(i) Invoice. (Include a copy in Arabic)
(ii) Bill of Lading.
(iii)Certificate of Origin.
(iv) Statement on the cover letter as to Port of Customs Clearance, estimated arrival date, general description of the shipment,
quantity and the name of the carrier.
(v) Serial number or model number of shipment items.
(3) Physical Handling of Materials: The Contractor shall be responsible for performance of all loading, unloading, transportation or
other physical handling of materials as may be required, including all movement from carrier unloading site to delivery at the job site
and all movement required at the customs area.
(End of Clause)
45 KSCR1-11 (C3) GOVERNMENT FURNISHED CONTRACTOR SUPPORT NOV/2010
The following is a summary of the type of support the Government will provide the contractor, on an as-available basis. In the event of
any discrepancy between this summary and the description of services in the Statement of Work, this clause will take precedence.
U.S. Citizens Accompanying the Force
__x_ APO/FPO/MPO/Postal Services __x_ DFACs(Access Only Contractors Must Pay For Meals)
___ Authorized Weapon ___ MILAIR
__x_ MWR ___Transportation
__x_ Resuscitative Care ___ Mil Issue Equip
__x_ Controlled Access Card (CAC)/ID Card __x_ Military Banking (Finance/Eagle Cash)
___ Commissary ___ Military Clothing
___ Dependents Authorized __x_ Military Exchange
___ Telephone Service ___ Keys to GFE
__x_ Utilities ___ Technical Training
___ None ___ All
Third-Country National (TCN) Employees
__x_ MWR ___ Transportation
___ None ___ All
Local National (LN) Employees
___ APO/FPO/MPO/Postal Services ___ DFACs(Access Only Contractors Must Pay For Meals)
___ MWR ___ Transportation
___ Resuscitative Care ___ Mil Issue Equip
___ Controlled Access Card (CAC)/ID Card ___ Military Banking (Finance/Eagle Cash)
___ Dependents Authorized ___ Military Exchange
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___ None ___ All
NOTES: Government Furnished Contractor Support, Continued.
(1) Billeting. As a general rule, billeting is not available for contractors in Kuwait. On an exception basis, contractors may be
permitted Government Billeting if a critical need by the Government exists and approval is granted by the Base Commander as recommended
by the Base Mayor's Cell.
*PLEASE NOTE: FOR THIS REQUIREMENT, BILLETING IS AUTHORIZED IAW COMMANDER MEMO DATED 12 SEPTEMBER 2012. ______________________________________________________________________________________________________
(2) Fuel. There are no government provided fuel services in Kuwait. Contractors must obtain these services from the local community.
(3) Dining facilities (DFAC's) are available and authorized for contractor use. Contractor employees choosing to consume their meals at
the DFACs shall be required to pay the established meal rates for all meals consumed.
(4) Medical Services: The USG will furnish emergency medical and rescue services in the case of life threatening injury to Contractor
personnel IAW the terms and conditions of the contract.
(5) Contractor use of Army Post Office (APO): In accordance with DoD Postal Manual 4526.6-M, contractors providing goods and services
in support of DoD activities may be authorized use of the Military Postal Service. The Contractor is authorized the use of postal
services provided by the APO within the ASG-KU AOR for contract-related activities only. This authority extends to the Contractor's U.S.
citizen employees and sponsored family members for personal mail usage. Postal support is limited to the country of Kuwait. This
authority flows down to subcontractors that are U.S.-owned and controlled companies and support the same mission as the prime
contractor.
(6) Trash Removal: The contractor shall obey all Kuwait and U.S. laws regarding secondary containment, environmental training, and
proper disposal of HAZMAT, debris, or refuse from the installation. The contractor shall dump waste in a Kuwait Government approved
site and comply with Kuwait environmental laws.
(End of Clause)
46 252.225-7040 CONTRACTOR PERSONNEL AUTHORIZED TO ACCOMPANY U.S. ARMED FORCES JUN/2011
DEPLOYED OUTSIDE THE UNITED STATES
"Combatant Commander" means the commander of a unified or specified combatant command established in accordance with 10 U.S.C. 161.
"Designated operational area" means a geographic area designated by the combatant commander or subordinate joint force commander for the
"Law of war" means that part of international law that regulates the conduct of armed hostilities. The law of war encompasses all
international law for the conduct of hostilities binding on the United States or its individual citizens, including treaties and
international agreements to which the United States is a party, and applicable customary international law.
"Subordinate joint force commander" means a sub-unified commander or joint task force commander.
(b) General.
(1) This clause applies when Contractor personnel are authorized to accompany U.S. Armed Forces deployed outside the United States in
(iii) Other military operations or military exercises, when designated by the Combatant Commander.
(2) Contract performance in support of U.S. Armed Forces deployed outside the United States may require work in dangerous or austere
conditions. Except as otherwise provided in the contract, the Contractor accepts the risks associated with required contract performance
in such operations.
(3) Contractor personnel are civilians accompanying the U.S. Armed Forces.
(i) Except as provided in paragraph (b)(3)(ii) of this clause, Contractor personnel are only authorized to use deadly force in self-
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defense.
(ii) Contractor personnel performing security functions are also authorized to use deadly force when such force reasonably appears
necessary to execute their security mission to protect assets/persons, consistent with the terms and conditions contained in their
contract or with their job description and terms of employment.
(iii) Unless immune from host nation jurisdiction by virtue of an international agreement or international law, inappropriate use of
force by contractor personnel authorized to accompany the U.S. Armed Forces can subject such personnel to United States or host nation
prosecution and civil liability (see paragraphs (d) and (j)(3) of this clause).
(c) Support.
(1)(i) The Combatant Commander will develop a security plan for protection of Contractor personnel in locations where there is not
sufficient or legitimate civil authority, when the Combatant Commander decides it is in the interests of the Government to provide
security because
(A) The Contractor cannot obtain effective security services;
(B) Effective security services are unavailable at a reasonable cost; or
(C) Threat conditions necessitate security through military means.
(ii) The Contracting Officer shall include in the contract the level of protection to be provided to Contractor personnel.
(iii) In appropriate cases, the Combatant Commander may provide security through military means, commensurate with the level of
security provided DoD civilians.
(2)(i) Generally, all Contractor personnel authorized to accompany the U.S. Armed Forces in the designated operational area are
authorized to receive resuscitative care, stabilization, hospitalization at level III military treatment facilities, and assistance with
patient movement in emergencies where loss of life, limb, or eyesight could occur. Hospitalization will be limited to stabilization and
short-term medical treatment with an emphasis on return to duty or placement in the patient movement system.
(ii) When the Government provides medical treatment or transportation of Contractor personnel to a selected civilian facility, the
Contractor shall ensure that the Government is reimbursed for any costs associated with such treatment or transportation.
(iii) Medical or dental care beyond this standard is not authorized unless specified elsewhere in this contract.
(3) Unless specified elsewhere in this contract, the Contractor is responsible for all other support required for its personnel
engaged in the designated operational area under this contract.
(4) Contractor personnel must have a Synchronized Predeployment and Operational Tracker (SPOT)-generated letter of authorization
signed by the Contracting Officer in order to process through a deployment center or to travel to, from, or within the designated
operational area. The letter of authorization also will identify any additional authorizations, privileges, or Government support that
Contractor personnel are entitled to under this contract.
(d) Compliance with laws and regulations.
(1) The Contractor shall comply with, and shall ensure that its personnel authorized to accompany U.S. Armed Forces deployed outside
the United States as specified in paragraph (b)(1) of this clause are familiar with and comply with, all applicable
(i) United States, host country, and third country national laws;
(ii) Provisions of the law of war, as well as any other applicable treaties and international agreements;
(iii) United States regulations, directives, instructions, policies, and procedures; and
(iv) Orders, directives, and instructions issued by the Combatant Commander, including those relating to force protection, security,
health, safety, or relations and interaction with local nationals.
(2) The Contractor shall institute and implement an effective program to prevent violations of the law of war by its employees and
subcontractors, including law of war training in accordance with paragraph (e)(1)(vii) of this clause.
(3) The Contractor shall ensure that contractor employees accompanying U.S. Armed Forces are aware--
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(i) Of the DoD definition of "sexual assault" in DoDD 6495.01, Sexual Assault Prevention and Response Program;
(ii) That many of the offenses addressed by the definition are covered under the Uniform Code of Military Justice (see paragraph
(e)(2)(iv) of this clause); and
(iii) That the offenses not covered by the Uniform Code of Military Justice may nevertheless have consequences to the contractor
employees (see paragraph (h)(1) of this clause).
(e) Pre-deployment requirements.
(1) The Contractor shall ensure that the following requirements are met prior to deploying personnel authorized to accompany U.S.
Armed Forces. Specific requirements for each category may be specified in the statement of work or elsewhere in the contract.
(ii) All deploying personnel meet the minimum medical screening requirements and have received all required immunizations as
specified in the contract. The Government will provide, at no cost to the Contractor, any theater-specific immunizations and/or
medications not available to the general public.
(iii) Deploying personnel have all necessary passports, visas, and other documents required to enter and exit a designated
operational area and have a Geneva Conventions identification card, or other appropriate DoD identity credential, from the deployment
center. Any Common Access Card issued to deploying personnel shall contain the access permissions allowed by the letter of authorization
issued in accordance with paragraph (c)(4) of this clause.
(iv) Special area, country, and theater clearance is obtained for personnel. Clearance requirements are in DoD Directive 4500.54,
Official Temporary Duty Abroad, and DoD 4500.54-G, DoD Foreign Clearance Guide. Contractor personnel are considered non-DoD personnel
traveling under DoD sponsorship.
(v) All personnel have received personal security training. At a minimum, the training shall
(vi) All personnel have received isolated personnel training, if specified in the contract, in accordance with DoD Instruction
1300.23, Isolated Personnel Training for DoD Civilian and Contractors.
(vii) Personnel have received law of war training as follows:
(A) Basic training is required for all Contractor personnel authorized to accompany U.S. Armed Forces deployed outside the United
States. The basic training will be provided through
(1) A military-run training center; or
(2) A web-based source, if specified in the contract or approved by the Contracting Officer.
(B) Advanced training, commensurate with their duties and responsibilities, may be required for some Contractor personnel as
specified in the contract.
(2) The Contractor shall notify all personnel who are not a host country national, or who are not ordinarily resident in the host
country, that
(i) Such employees, and dependents residing with such employees, who engage in conduct outside the United States that would
constitute an offense punishable by imprisonment for more than one year if the conduct had been engaged in within the special maritime
and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the United States in
accordance with the Military Extraterritorial Jurisdiction Act of 2000 (18 U.S.C. 3621, et seq.);
(ii) Pursuant to the War Crimes Act (18 U.S.C. 2441), Federal criminal jurisdiction also extends to conduct that is determined to
constitute a war crime when committed by a civilian national of the United States;
(iii) Other laws may provide for prosecution of U.S. nationals who commit offenses on the premises of U.S. diplomatic, consular,
military or other U.S. Government missions outside the United States (18 U.S.C. 7(9)); and
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(iv) In time of declared war or a contingency operation, Contractor personnel authorized to accompany U.S. Armed Forces in the field
are subject to the jurisdiction of the Uniform Code of Military Justice under 10 U.S.C. 802(a)(10).
(f) Processing and departure points. Deployed Contractor personnel shall
(1) Process through the deployment center designated in the contract, or as otherwise directed by the Contracting Officer, prior to
deploying. The deployment center will conduct deployment processing to ensure visibility and accountability of Contractor personnel and
to ensure that all deployment requirements are met, including the requirements specified in paragraph (e)(1) of this clause;
(2) Use the point of departure and transportation mode directed by the Contracting Officer; and
(3) Process through a Joint Reception Center (JRC) upon arrival at the deployed location. The JRC will validate personnel
accountability, ensure that specific designated operational area entrance requirements are met, and brief Contractor personnel on
theater-specific policies and procedures.
(g) Personnel data.
(1) The Contractor shall enter before deployment and maintain data for all Contractor personnel that are authorized to accompany U.S.
Armed Forces deployed outside the United States as specified in paragraph (b)(1) of this clause. The Contractor shall use the
Synchronized Predeployment and Operational Tracker (SPOT) web-based system, at http://www.dod.mil/bta/products/spot.html, to enter and
maintain the data.
(2) The Contractor shall ensure that all employees in the database have a current DD Form 93, Record of Emergency Data Card, on file
with both the Contractor and the designated Government official. The Contracting Officer will inform the Contractor of the Government
official designated to receive this data card.
(h) Contractor personnel.
(1) The Contracting Officer may direct the Contractor, at its own expense, to remove and replace any Contractor personnel who
jeopardize or interfere with mission accomplishment or who fail to comply with or violate applicable requirements of this contract. Such
action may be taken at the Governments discretion without prejudice to its rights under any other provision of this contract, including
the Termination for Default clause.
(2) The Contractor shall have a plan on file showing how the Contractor would replace employees who are unavailable for deployment or
who need to be replaced during deployment. The Contractor shall keep this plan current and shall provide a copy to the Contracting
Officer upon request. The plan shall
(i) Identify all personnel who are subject to military mobilization;
(ii) Detail how the position would be filled if the individual were mobilized; and
(iii) Identify all personnel who occupy a position that the Contracting Officer has designated as mission essential.
(3) Contractor personnel shall report to the Combatant Commander or a designee, or through other channels such as the military police,
a judge advocate, or an inspector general, any suspected or alleged conduct for which there is credible information that such conduct
(i) Constitutes violation of the law of war; or
(ii) Occurred during any other military operations and would constitute a violation of the law of war if it occurred during an armed
conflict.
(i) Military clothing and protective equipment.
(1) Contractor personnel are prohibited from wearing military clothing unless specifically authorized in writing by the Combatant
Commander. If authorized to wear military clothing, Contractor personnel must
(i) Wear distinctive patches, arm bands, nametags, or headgear, in order to be distinguishable from military personnel, consistent
with force protection measures; and
(ii) Carry the written authorization with them at all times.
(2) Contractor personnel may wear military-unique organizational clothing and individual equipment (OCIE) required for safety and
security, such as ballistic, nuclear, biological, or chemical protective equipment.
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(3) The deployment center, or the Combatant Commander, shall issue OCIE and shall provide training, if necessary, to ensure the safety
and security of Contractor personnel.
(4) The Contractor shall ensure that all issued OCIE is returned to the point of issue, unless otherwise directed by the Contracting
Officer.
(j) Weapons.
(1) If the Contractor requests that its personnel performing in the designated operational area be authorized to carry weapons, the
request shall be made through the Contracting Officer to the Combatant Commander, in accordance with DoD Instruction 3020.41, paragraph
6.3.4.1 or, if the contract is for security services, paragraph 6.3.5.3. The Combatant Commander will determine whether to authorize in-
theater Contractor personnel to carry weapons and what weapons and ammunition will be allowed.
(2) If the Contracting Officer, subject to the approval of the Combatant Commander, authorizes the carrying of weapons
(i) The Contracting Officer may authorize the Contractor to issue Contractor-owned weapons and ammunition to specified employees; or
(3) The Contractor shall ensure that its personnel who are authorized to carry weapons
(i) Are adequately trained to carry and use them
(A) Safely;
(B) With full understanding of, and adherence to, the rules of the use of force issued by the Combatant Commander; and
(iii) Adhere to all guidance and orders issued by the Combatant Commander regarding possession, use, safety, and accountability of
weapons and ammunition.
(5) Upon redeployment or revocation by the Combatant Commander of the Contractors authorization to issue firearms, the Contractor
shall ensure that all Government-issued weapons and unexpended ammunition are returned as directed by the Contracting Officer.
(k) Vehicle or equipment licenses. Contractor personnel shall possess the required licenses to operate all vehicles or equipment
necessary to perform the contract in the designated operational area.
(l) Purchase of scarce goods and services. If the Combatant Commander has established an organization for the designated operational
area whose function is to determine that certain items are scarce goods or services, the Contractor shall coordinate with that
organization local purchases of goods and services designated as scarce, in accordance with instructions provided by the Contracting
Officer.
(m) Evacuation.
(1) If the Combatant Commander orders a mandatory evacuation of some or all personnel, the Government will provide assistance, to the
extent available, to United States and third country national Contractor personnel.
(2) In the event of a non-mandatory evacuation order, unless authorized in writing by the Contracting Officer, the Contractor shall
maintain personnel on location sufficient to meet obligations under this contract.
(n) Next of kin notification and personnel recovery.
(1) The Contractor shall be responsible for notification of the employee-designated next of kin in the event an employee dies,
requires evacuation due to an injury, or is isolated, missing, detained, captured, or abducted.
(2) In the case of isolated, missing, detained, captured, or abducted Contractor personnel, the Government will assist in personnel
recovery actions in accordance with DoD Directive DoD Directive 3002.01E, Personnel Recovery in the Department of Defense.
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(o) Mortuary affairs. Mortuary affairs for Contractor personnel who die while accompanying the U.S. Armed Forces will be handled in
accordance with DoD Directive 1300.22, Mortuary Affairs Policy.
time, by written order identified as a change order, make changes in the place of performance or Government-furnished facilities,
equipment, material, services, or site. Any change order issued in accordance with this paragraph (p) shall be subject to the provisions
of the Changes clause of this contract.
(q) Subcontracts. The Contractor shall incorporate the substance of this clause, including this paragraph (q), in all subcontracts when
subcontractor personnel are authorized to accompany U.S. Armed Forces deployed outside the United States in
(1) Contingency operations;
(2) Humanitarian or peacekeeping operations; or
(3) Other military operations or military exercises, when designated by the Combatant Commander.
(End of clause)
47 252.225-7043 ANTITERRORISM/FORCE PROTECTION POLICY FOR DEFENSE CONTRACTORS OUTSIDE MAR/2006
THE UNITED STATES
(a) Definition. United States, as used in this clause, means, the 50 States, the District of Columbia, and outlying areas.
(b) Except as provided in paragraph (c) of this clause, the Contractor and its subcontractors, if performing or traveling outside the
United States under this contract, shall
(1) Affiliate with the Overseas Security Advisory Council, if the Contractor or subcontractor is a U.S. entity;
(2) Ensure that Contractor and subcontractor personnel who are U.S. nationals and are in-country on a non-transitory basis, register
with the U.S. Embassy, and that Contractor and subcontractor personnel who are third country nationals comply with any security related
requirements of the Embassy of their nationality;
(3) Provide, to Contractor and subcontractor personnel, antiterrorism/force protection awareness information commensurate with that
which the Department of Defense (DoD) provides to its military and civilian personnel and their families, to the extent such information
can be made available prior to travel outside the United States; and
(4) Obtain and comply with the most current antiterrorism/force protection guidance for Contractor and subcontractor personnel.
(c) The requirements of this clause do not apply to any subcontractor that is:
(1) A foreign government;
(2) A representative of a foreign government; or
(3) A foreign corporation wholly owned by a foreign government.
(d) Information and guidance pertaining to DoD antiterrorism/force protection can be obtained from -1-.
(End of clause)
48 252.225-7995 CONTRACTOR PERSONNEL PERFORMING IN THE UNITED STATES CENTRAL COMMAND APR/2011
AREA OF RESPONSIBILITY (DEVIATION 2011-O0004)
(a) Definition. As used in this clause--
"Chief of mission means the principal officer in charge of a Diplomatic mission of the United States or of a United States office
the Foreign Service Act of 1980 (Public Law 96-465) to be temporarily in charge of such a mission or office.
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(b) General. (1) This clause applies when contractor personnel are required to perform in the United States Central Command (USCENTCOM)
Area of Responsibility (AOR) and are not covered by the clause at DFARS 252.225-7040, Contractor Personnel Authorized to Accompany U.S.
Armed Forces Deployed Outside the United States.
Contractor accepts the risks associated with required contract performance in such operations.
(i) Except as provided in paragraph (b)(3)(ii) of this clause, and in accordance with paragraph (i)(3) of this clause, contractor
personnel are only authorized to use deadly force in self defense.
appears necessary to execute their security mission to protect assets/persons, consistent with the terms and conditions contained in the
(4) Service performed by contractor personnel subject to this clause is not active duty or service under 38 U.S.C. 106.
for contractor personnel engaged in this contract.
(d) Compliance with laws and regulations. The Contractor shall comply with, and shall ensure that its personnel in the USCENTCOM AOR are
familiar with and comply with, all applicable--
(4) Force protection, security, health, or safety orders, directives, and instructions issued by the USCENTCOM Commander; however,
only the Contracting Officer is authorized to modify the terms and conditions of the contract.
forth in the statement of work or elsewhere in the contract.
(2) Before contractor personnel depart from the United States or a third country, and before contractor personnel residing in the host
country begin contract performance in the USCENTCOM AOR, the Contractor shall ensure the following:
(iii) All personnel have all necessary passports, visas, entry permits, and other documents required for contractor personnel to
(iv) All personnel have received theater clearance, if required by the Combatant Commander.
(v) All personnel have received personal security training. The training must, at a minimum--
(vi) All personnel who are U.S. citizens are registered with the U.S. Embassy or Consulate with jurisdiction over the area of
operations on-line at http://www.travel.state.gov. ___________________________
(3) The Contractor shall notify all personnel who are not a local national or ordinarily resident in the host country that--
and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the United States (see the
Military Extraterritorial Jurisdiction Act of 2000 (18 U.S.C. 3261 et seq.);
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constitute a violation of the law of war when committed by a civilian national of the United States;
consular, military, or other Government missions outside the United States (18 U.S.C. 7(9)).
perform in the USCENTCOM AOR to--
Officer;
(g) Registration of Contractor personnel and private security contractor equipment.
(1) The Contractor is required to register in the automated webbased Synchronized Predeployment and Operational Tracker (SPOT)
following the procedures in paragraph (g)(4) of this clause.
(2) Prior to deployment of contractor employees, or, if already in the USCENTCOM AOR, upon becoming an employee under this contract,
the Contractor shall enter into SPOT, and maintain current data, including actual arrival date and departure date, for all contractor
personnel, including U.S. citizens, U.S. legal aliens, third-country nationals, and local national contractor personnel, who are
performing this contract in the USCENTCOM AOR as follows:
(i) In all circumstances, this includes any personnel performing private security functions.
(ii) For personnel other than those performing private security functions, this requirement excludes anyone--
(A) Hired under contracts valued less than $100,000;
(B) Who will be performing in the CENTCOM AOR less than 30 continuous days; or
(C) Who, while afloat, are tracked by the Diary message Reporting System
(3) Weapons, armored vehicles, helicopters, and other military vehicles used by personnel performing private security functions under
this contract must be entered into SPOT, and the currency of such information must be maintained.
(4) Follow these steps to register in and use SPOT:
(i) SPOT registration requires one of the following login methods:
(A) A Common Access Card or a SPOT-approved digital certificate; or
(B) A Government-sponsored SPOT user ID and password or an Army Knowledge Online (AKO) account.
(ii) To register in SPOT:
(A) Contractor company administrators should register for a SPOT account at https://spot.altess.army.mil; and ____________________________
(B) The customer support team must validate user need. This process may take two business days. Company supervisors will be
contacted to validate Contractor company administrator account requests and determine the appropriate level of user access.
(iii) Upon approval, all users will access SPOT at https://spot.altess.army.mil/. _____________________________
(iv) Refer SPOT application assistance questions to the Customer Support Team at 717-458-0747 or SPOT.helpdesk@us.army.mil. Refer to
the SPOT Enterprise Suite Resource Center at http://www.resource.spot-es.net/ for additional training resources and documentation ________________________________
regarding registration for and use of SPOT.
(5) The Contractor shall submit aggregate contractor personnel counts at a minimum quarterly or as directed by the Contracting Officer
by category (i.e. U.S. third country national or local national) of those contractor personnel who are on contracts valued greater than
$100,000, but performing less that 30 days in the AOR (e.g. day laborers).
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(6) The Contractor shall ensure that all contractor personnel in the database have a current DD Form 93, Record of Emergency Data
Card, on file with both the Contractor and the designated Government official. The Contracting Officer will inform the Contractor of the
Government official designated to receive the data card.
(h) Contractor personnel. The Contracting Officer may direct the Contractor, at its own expense, to remove and replace any contractor
personnel who fail to comply with or violate applicable requirements of this contract. Such action may be taken at the Governments
(i) Weapons (Not Applicable).
(1) If the Contracting Officer, subject to the approval of the USCENTCOM Commander, authorizes the carrying of weapons--
employees; or
(ii) The -1- may issue Government-furnished weapons and ammunition to the Contractor for issuance to specified contractor employees.
requested.
(A) Safely;
(B) With full understanding of, and adherence to, the rules of the use of force issued by the USCENTCOM Commander; and
(C) In compliance with applicable Department of Defense and agency policies, agreements, rules, regulations, and other applicable
law;
(iii) Adhere to all guidance and orders issued by the USCENTCOM Commander regarding possession, use, safety, and accountability of
(4) Upon revocation by the Contracting Officer of the Contractors authorization to possess weapons, the Contractor shall ensure that
(5) Whether or not weapons are Government-furnished, all liability for the use of any weapon by contractor personnel rests solely with
(1) Contractor personnel are prohibited from wearing military clothing unless specifically authorized by the USCENTCOM Commander. If
authorized to wear military clothing, contractor personnel must wear distinctive patches, arm bands, nametags, or headgear, in order to
(2) Contractor personnel may wear specific items required for safety and security, such as ballistic, nuclear, biological, or chemical
protective equipment.
(l) Evacuation. (1) If the Chief of Mission or USCENTCOM Commander orders a mandatory evacuation of some or all personnel, the
Government will provide to United States and designated third country national contractor personnel the level of assistance provided to
private United States citizens.
(m) Notification and return of personal effects. (1) The Contractor shall be responsible for notification of the contractor personnel
designated next of kin, and notification as soon as possible to the U.S. Consul responsible for the area in which the event occurred, if
the individual--
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(i) Dies;
(2) The Contractor shall also be responsible for the return of all personal effects of deceased or missing contractor personnel, if
(n) Mortuary affairs. Mortuary affairs for contractor personnel who die in the area of performance will be handled in accordance with
DoD Directive 1300.22, Mortuary Affairs Policy.
(o) Changes. In addition to the changes otherwise authorized by the Changes clause of this contract, the Contracting Officer may, at any
(p) Subcontracts. The Contractor shall incorporate the substance of this clause, including this paragraph (p), in all subcontracts that
require subcontractor personnel to perform in the USCENTCOM AOR.
(End of clause)
49 52.252-2 CLAUSES INCORPORATED BY REFERENCE FEB/1998
This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon
request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at
this/these address:
http://www.acq.osd.mil/dpap/dars/far.html or http://www.acq.osd.mil/dpap/dars/index.htm or
http://farsite.hill.af.mil/VFAFARa.HTM
(End of Clause)
50 52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES APR/1984
(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized
deviation is indicated by the addition of (DEVIATION) after the date of the clause.
(b) The use in this solicitation or contract of any DoD FAR SUPPLEMENT (48 CFR 2) clause with an authorized deviation is indicated by
the addition of (DEVIATION) after the name of the regulation.
(End of Clause)
51 KSCR1-1 (C3) ADDITIONAL INSTRUCTIONS FOR CONTRACTOR PERSONNEL WORKING IN THE NOV/2010
USCENTCOM AREA OF RESPONSIBILITY, SUPPORT
CONTRACTOR PRIVILEGES AND SUPPORT: As identified in the Statement of Work (SOW) and must be authorized by the Contracting Officer in a
Letter of Authorization (LOA). Every contract employee who will need an identification badge will need a SPOT-generated LOA. No
personnel are authorized entry into the theater for more than 30 days without a SPOT-generated LOA.
MEDICAL TREATMENT AVAILABLE TO CONTRACTOR PERSONNEL ON BASE CAMPS: limited to resuscitative and stabilization care only. Kuwait
mandatory language is in the Clause KSCR1-5, below. Emergency medical care is provided to any employee with an LOA, even when
medical/dental care is not specified. Medical/dental care appears as a check box; when creating the SPOT-generated LOA, do not check
the box to authorize routine medical/dental care.
PERSONNEL SUPPORT: The contractor is responsible for all personnel support unless provided for in the Statement of Work. The Statement
of Work must clearly identify all contractor personnel support that will be provided by the Government. PGI 225.7402-3 lists the
support that may be authorized or required when contractor personnel are supporting U.S. operations. Some examples of support are
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office space, communication services, equipment, and access to dining facilities.
BILLETING AND GOVERNMENT PROVIDED MEALS: As a general rule, not available for contractors in Kuwait. On an exception basis, contractors
may be permitted to use Government Billeting if a critical need by the Government exists and approval is granted by the Base Commander
as recommended by the Base Mayor's Cell.
LIFE SUPPORT: Contractors are responsible for providing all aspects of Life Support for Contractor employees to including, but not
limited to, housing and transportation within Kuwait and transportation to and from Kuwait, medical or dental care (if provided for
under employee benefits). Contractors are not allowed residence on any military installation within Kuwait unless a critical need by the
Government exists and approval is granted by the Base Commander as recommended by the Base Mayor's Cell. The Government will provide
only resuscitative/emergency medical care to contractor employees. (Reference paragraph 6.2.7.5 (Medical Preparation) of DODI 3020.41,
Contractor Personnel Authorized to Accompany the U.S. Armed Forces). The Contracting Officer must determine whether any contractor
personnel will be required to be armed or authorized to carry weapons for self-defense.
(End of Clause)
52 KSCR1-2 (C3) PROHIBITION AGAINST HUMAN TRAFFICKING, INHUMANE LIVING CONDITIONS, OCT/2011
AND WITHHOLDING OF EMPLOYEE PASSPORTS
Trafficking in Persons (TIP): Contractor employees and subcontractor employees performing under this contract shall comply with all DOD
and ASG-KUs Trafficking in Persons policies. Contractor employees are subject to prescriptions and remedies at FAR Clause 52.222-50 and
the terms and conditions stated herein.
ASG-KU has adopted a more stringent policy than federal requirements regarding trafficking in persons. All Contractor employees and
subcontractor employees shall be subject to FAR Clause 52.222-50, Combating Trafficking in Persons.
Contractor shall adhere to and abide by all Kuwait Labor Laws during the performance of this contract.
Registered Employee Listing: On a monthly basis, the Contractor shall provide the ACO with a listing of employee names registered with
the Ministry of Social Affairs and Labor (MOSAL). Failure to provide the ACO with a list of employees registered with the MOSAL will
result in the denial of installation badging privileges for Contractor employees. Furthermore, a copy of each individuals employment
contract shall be available to the USG by the conclusion of the Transition Period. At a minimum, the employment contract shall be in
English and the language of the employee. The Contractor shall disclose and make known to its employees the terms and conditions of
employment.
For the duration of the contract, the Contractor shall ensure all wages earned (hourly, weekly, monthly, yearly), to include benefits
and allowances, or any type of debt bondage arrangement in effect between the Contractor and employee, are included in each employees
contract. Contractor shall specify the compensation rate to be earned for hours in excess a normal workweek within the employment
contract.
Contractor shall specify the type or description of work to be performed and the job site location.
Contractor shall provide transportation costs from country of origin to place of employment, including repatriation.
Contractor shall include a detailed description of the type of job site berthing accommodations available to the employees within the
employment contract.
Contractor shall provide non-cash compensation and benefits, to include meals and accommodations.
Contractor shall ensure employees have injury and sickness compensation insurance for emergency medical and dental care.
Contractor shall clearly define valid grounds for termination within the employment contract.
Contractor shall include dispute settlement provisions within the employment contract.
Housing Standards: The Contractor shall comply with the following minimum housing accommodations standards:
(1) Housing provided to all employees shall be no less than 50 square feet per person.
(2) Cafeteria or common use kitchen will be provided to all employees. Common use kitchens will service no more than 25 workers per
kitchen.
(3) Each room shall be furnished at a minimum with the following:
(i) Room light.
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(ii) One bed per individual.
(iii) One storage device that can be secured; a footlocker with hasp for lock, minimum size of at least 3 cubic feet.
(iv) A laundry facility or laundry service.
(v) Cleaning supplies.
(4) Monthly inspections of living conditions of all Contractor and subcontractor employees. A copy of the inspection report shall be
provided to the ACO. The inspection report shall, at a minimum, contain the following inspection criteria:
(i) Compliance with minimum housing accommodation standards.
(ii) Functioning appliances and the projected time for repair for any non-functioning appliances.
(iii) The findings of Quarterly Health and Welfare inspections on personnel and accommodations.
TIP Training: Contractor shall provide TIP training for all employees and subcontractor employees. A copy of each employees TIP
training certificate shall be provided to the PCO 30 days after the contract start date.
Contractor Shall Post: Human Trafficking Hotline Posters in English and all employee languages in all living quarters. At a minimum,
the poster shall include the Contracting Commands Hotline complaint number DSN 318-430-4985 or 389-4985.
Violations: Violation of the TIP policy shall result in actions taken against the Contractor or its employees. Such actions may
include, but are not limited to, removal from the contract, reduction in benefits, or termination of employment at no cost to the USG.
Notification: Contractor shall inform the PCO immediately of any information received from any source (including host country law
enforcement) that alleges a Contractor employee, subcontractor, or subcontractor employee has engaged in conduct that violates TIP
policies, and any actions taken against Contractor or subcontractor employees pursuant to FAR Clause entitled Combating Trafficking in
Persons.
Remedies: In addition to other remedies available to the USG, the Contractors failure to comply with TIP policy may render the
Contractor subject to the following at no cost to the USG:
(1) Required removal of a Contractor employee or employees from the performance of the contract.
(2) Required subcontractor termination.
(3) Suspension of contract payments.
(4) Loss of fee, consistent with the fee plan, for the performance period in which the USG determined Contractor non-compliance.
(5) Termination of the contract for default or cause, in accordance with the termination clause of this contract.
(6) Suspension or debarment.
Subcontracts: Contractor shall flow-down to its subcontracts the terms and conditions of this paragraph IAW Host Nation laws, regulatory
guidance, DOD, and FAR clauses referenced herein.
(End of Clause)
53 KSCR1-5 (C3) FITNESS FOR DUTY AND MEDICAL CARE LIMITATIONS AUG/2011
(a) The contractor shall perform the requirements of this contract notwithstanding the fitness for duty of deployed employees, the
provisions for care offered under this section, and redeployment of individuals determined to be unfit. Contractor personnel who deploy
for multiple tours, for more than 12 months total must be re-evaluated for fitness to deploy. An examination will remain valid for 15
months from the date of the physical. The contractor bears the responsibility for ensuring all employees are aware of the conditions
and medical treatment available at the performance location. The contractor shall include this information and requirement in all
subcontracts with performance in the theater of operations.
(b) The contractor shall not deploy an individual with any of the following conditions unless approved by the appropriate CENTCOM
Service Component (ie. ARCENT, AFCENT, etc.) Surgeon: Conditions which prevent the wear of personal protective equipment, including
protective mask, ballistic helmet, body armor, and chemical/biological protective garments; conditions which prohibit required theater
immunizations or medications; conditions or current medical treatment or medications that contraindicate or preclude the use of chemical
and biological protectives and antidotes; diabetes mellitus, Type I or II, on pharmacological therapy; symptomatic coronary artery
disease, or with myocardial infarction within one year prior to deployment, or within six months of coronary artery bypass graft,
coronary artery angioplasty, or stenting; morbid obesity (BMI >/= 40%); dysrhythmias or arrhythmias, either symptomatic or requiring
medical or electrophysiological control; uncontrolled hypertension, current heart failure, or automatic implantable defibrillator;
therapeutic anticoagulation; malignancy, newly diagnosed or under current treatment, or recently diagnosed/treated and requiring
frequent subspecialist surveillance, examination, and/or laboratory testing; dental or oral conditions requiring or likely to require
urgent dental care within six months time, active orthodontic care, conditions requiring prosthodontic care, conditions with immediate
restorative dentistry needs, conditions with a current requirement for oral-maxillofacial surgery; new onset (< 1 year) seizure
disorder, or seizure within one year prior to deployment; history of heat stroke; Menieres Disease or other vertiginous/motion sickness
disorder, unless well controlled on medications available in theater; recurrent syncope, ataxias, new diagnosis (< 1 year) of mood
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disorder, thought disorder, anxiety, somatoform, or dissociative disorder, or personality disorder with mood or thought manifestations;
unrepaired hernia; tracheostomy or aphonia; renalithiasis, current; active tuberculosis; pregnancy; unclosed surgical defect, such as
external fixeter placement; requirement for medical devices using AC power; HIV antibody positivity; psychotic and bipolar disorders.
(Reference: Mod 10 to USCENTCOM Individual Protection and Individual/Unit Deployment Policy, PPG-Tab A: Amplification of the Minimal
Standards of Fitness for Deployment to the CENTCOM AOR).
(c) In accordance with military directives (DoDI 3020.41, DoDI 6000.11, CFC FRAGO 09-1038, DoD PGI 225.74), resuscitative care,
stabilization, hospitalization at Level III (emergency) military treatment facilities and assistance with patient movement in
emergencies where loss of life, limb or eyesight could occur will be provided. Hospitalization will be limited to emergency
stabilization and short-term medical treatment with an emphasis on return to duty or placement in the patient movement system. Subject
to availability at the time of need, a medical treatment facility may provide reimbursable treatment for emergency medical or dental
care such as broken bones, lacerations, broken teeth or lost fillings.
(d) Routine and primary medical care is not authorized. Pharmaceutical services are not authorized for routine or known, routine
prescription drug needs of the individual. Routine dental care, examinations and cleanings are not authorized.
(e) Notwithstanding any other provision of the contract, the contractor shall be liable for any and all medically-related services or
transportation rendered. To view reimbursement rates that will be charged for services at all DoD deployed medical facilities please go
to the following website: http://comptroller.defense.gov/rates/fy2011.html (change fiscal year as applicable).
(End of Clause)
54 KSCR1-6 (C3) COMPLIANCE WITH LAWS AND REGULATIONS AUG/2010
(a) The Contractor shall comply with, and shall ensure that its employees and its subcontractors and their employees, at all tiers, are
aware of and obey all U.S. and Host Nation laws, Federal or DoD regulations, and Central Command orders and directives applicable to
personnel in Kuwait including but not limited to USCENTCOM, Multi-National Force and Multi-National Corps operations and fragmentary
orders, instructions, policies and directives.
(b) Contractor employees shall particularly note all laws, regulations, policies, and orders restricting authority to carry firearms,
rules for the use of force, and prohibiting sexual or aggravated assault. Contractor employees are subject to General Orders Number 1,
as modified from time to time, including without limitation, their prohibition on privately owned firearms, alcohol, drugs, war
souvenirs, pornography and photographing detainees, human casualties or military security measures.
(c) Contractor employees may be ordered removed from secure military installations or the theater of operations by order of the senior
military commander of the battle space for acts that disrupt good order and discipline or violate applicable laws, regulations, orders,
instructions, policies, or directives. Contractors shall immediately comply with any such order to remove its contractor employee.
(d) Contractor employees performing in the USCENTCOM Area of Responsibility (AOR) may be subject to the jurisdiction of overlapping
criminal codes, including, but not limited to, the Military Extraterritorial Jurisdiction Act (18 U.S.C. Sec. 3261, et al) (MEJA), the
Uniform Code of Military Justice (10 U.S.C. Sec. 801, et al)(UCMJ), and the laws of the Host Nation. Non-US citizens may also be subject
to the laws of their home country while performing in the USCENTCOM AOR. Contractor employee status in these overlapping criminal
jurisdictions may be modified from time to time by the United States, the Host Nation, or by applicable status of forces agreements.
(e) Under MEJA, a person who engages in felony misconduct outside the United States while employed by or accompanying the Armed Forces
is subject to arrest, removal and prosecution in United States federal courts. Under the UCMJ, a person serving with or accompanying the
Armed Forces in the field during a declared war or contingency operation may be disciplined for a criminal offense, including by
referral of charges to a General Court Martial. Contractor employees may be ordered into confinement or placed under conditions that
restrict movement within the AOR or administratively attached to a military command pending resolution of a criminal investigation.
(f) Contractors shall immediately notify military law enforcement and the Contracting Officer if they suspect an employee has committed
an offense. Contractors shall take any and all reasonable and necessary measures to secure the presence of an employee suspected of a
serious felony offense. Contractors shall not knowingly facilitate the departure of an employee suspected of a serious felony offense or
violating the Rules for the Use of Force to depart Kuwait without approval from the senior U.S. commander in the country.
(End of Clause)
55 KSCR1-7 (C3) MONTHLY CONTRACTOR CENSUS REPORTING AUG/2011
Contractor shall provide monthly employee census information to the Contracting Officer, by province, for this contract. Information
shall be submitted either electronically or by hard-copy. Information shall be current as of the 25th day of each month and received by
the Contracting Officer no later than the first day of the following month. The following information shall be provided for each
province in which work was performed:
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(1) The total number (prime and subcontractors at all tiers) employees.
(2) The total number (prime and subcontractors at all tiers) of U.S. citizens.
(3) The total number (prime and subcontractors at all tiers) of local nationals (LN).
(4) The total number (prime and subcontractors at all tiers) of third-country nationals (TCN).
(5) Name of province in which the work was performed.
(6) The names of all company employees who enter and update employee data in the Synchronized Predeployment & Operational Tracker
(SPOT) IAW DFARS 252.225-7040 or DFARS 252.22.-7995 (Deviation 2011-O0004).
(End of Clause)
56 KSCR1-10 (C3) MEDICAL SCREENING AND VACCINATION REQUIREMENTS FOR THIRD COUNTRY OCT/2011
NATIONALS OR LOCALLY HIRED EMPLOYEES
(a) Contractors, and subcontractors at any tier shall ensure and provide satisfactory evidence that all locally hired employees,
including Local National (LN), Third Country National (TCN), and U.S. employees, working on bases have been screened for and do not
currently have active tuberculosis (TB).
(1) Contractors may initially utilize a testing method of either a chest x-ray or TB skin test (TST), depending on the originating
country a contracted employee.
(i) Chest x-rays (CXR's), symptom survey, and BMI shall be taken, and TSTs administered within 12 months prior to the start of
deployment/employment. Contractors are required to bring in a physical copy of the pre-employment CXR film as it is the only way to
verify interval changes should an active case of TB occur.
(A) Third Country Nationals (TCNs) and Local Nationals (LNs) cannot be screened with the TST. They need the pre-employment
screening with a quality CXR, Body Mass Index (BMI) and symptom survey.
(B) Small-Risk Nationals (SRNs), those with less than 25 TB cases per 100,000 persons annually (mostly expats from Europe and
US), can be screened via the TST.
(ii) Annual re-screening for TCNs, and LNs will be performed with a CXR conducted by the Contractors medical provider or local
economy provider, who will look for interval changes from prior CXRs and review any changes in the symptom survey.
(iii) SRNs do not require annual TB re-screening. However, for a TB contact investigation, a TST or Interferon Gamma Release Assay
(IGRA) is required.
(iv) For a contact investigation, all personnel with a positive TST or IGRA will be evaluated for potential active TB with a
symptom screen, exposure history, BMI, and CXR. All cases of suspected or confirmed active TB must be reported to the theater
Preventive Medicine (PM) physician and/or TB Consultant as soon as possible. TB reporting is required within 24 hours to the PM POC.
Contact tracing, and medical coding have specific requirements. All Small-Risk National (SRN) contract personnel are required to be
MEDEVACd out of theater, at the contractors expense, for treatment of active TB, after consultation with the Theater PM or TB
Consultant. For SRN personnel, the contractor is responsible for management and compliance with all prescribed public health actions.
(v) Screening may be performed either by a licensed medical provider from the local economy or by the contractors licensed medical
staffs. Contractors shall maintain medical screening documentation and make it available to the Contracting Officer upon request.
(2) TB screening and documentation is a requirement prior to receiving badges to work in Kuwait. A copy of the TB screening
documentation shall be provided to the Contracting Officer and the COR prior to issuance of base access badges.
(b) Contractor employees, including subcontractors at any tier, who work in positions where they are working in food service, water
and ice production facilities, shall have current Typhoid and Hepatitis A (full series) immunizations in accordance with the Centers for
Disease Control and Prevention guidelines (e.g. typhoid vaccination booster is required every 2 years), in addition to the required TB
tests. The contractor medical provider must complete a pre-placement examination to include a stool sample test for ova and parasites,
and annual medical screening form or equivalent for food service, ice and water production workers.
(c) Proof of individual employee vaccinations shall be provided to the Contracting Officer and COR showing that their employees and
their subcontractor employees at any tier have received the above vaccinations. The contractor shall maintain their employees
vaccination records for examination by the Contracting Officer. The contractor shall ensure that their subcontractors at any tier
maintain their respective employees vaccination records for examination by the Contracting Officer.
(d) The contractor is responsible for management and compliance with all prescribed public health actions regarding TB in the
contracted personnel. The contractor also bears the responsibility of ensuring that adequate health management for TB
(screening/diagnosis/treatment/isolation) is available at the contractors chosen health care provider for their contracted and
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subcontracted personnel.
NOTE: Contractors are reminded of the requirement to comply with their contract and all regulatory guidance (DoD
Instructions/Regulations, Federal Acquisition Regulation/Defense Federal Acquisition Regulation Supplement, and FRAGO's) as applicable
regarding Medical Screening and Vaccination Requirements
List of Immunizations and Vaccinations: Required for entry into Kuwait and those recommended by medical authorities upon contract award
can be found at the CRC website identified below. The document entitled Civilian Medical Processing is provided for guidance and
situational awareness. Contractor employees shall be immunized or vaccinated to meet the requirements established by the Theater's
Command Surgeon. Contractors shall immediately replace any employee who refuses any required immunization or vaccination at the
Contractor's expense. Additional information can be provided by visiting the CONUS Replacement Center (CRC) website at
www.benning.army.mil/CRC.
(End of Clause)
57 KSCR1-12 (C3) MILITARY EXTRATERRITORIAL JURISDICTION ACT AUG/2010
Military Extra Territorial Jurisdiction Action (MEJA) (18 USC 3261-3267). Per the MEJA Act, following notification of contract award,
the Contractor and all subcontractors at any tier shall provide the required notification to all employees. The Contractor shall report
compliance with this clause to the Contracting Officer following contract award and upon request. The Contractor shall respond to
requests for reports on compliance with this clause in the manner and with such content as is specified by the Contracting Officer at no
further cost to the Government. The contractor, and all subcontractors at any tier, is responsible for providing each employee with the
below notification by actions sufficient to ensure all employees have received and understood the notification by actions including, but
not limited to, providing the notification and obtaining a written acknowledgement of the notification by each employee, posting the
notification in a conspicuous place frequented by employees, as well as including the below notice in employee manuals or employment
information. Employees who are not literate (who cannot read) shall have this notification read to them in a language understood by such
employee. The below notification will be provided during employee training and any briefings provided to contractors employees and
subcontractor employees at any tier no later than ten days after employment for this contract or arrival in the foreign country in which
they will be assigned, employed by or accompanying the US Armed Forces, or residing as a dependent. The contractor shall maintain a copy
of each employees written acknowledgement of receipt of the notification and shall provide the same upon request by the Contracting
Officer. The contractor shall comply with all notification requirements of DoD Instruction 5525.11, Criminal Jurisdiction over Civilians
Employed By or Accompanying the Armed Forces outside the United States, Certain Service Members, and Former Service Members. In the
event of conflict between DoDI 5525.11 or any applicable U.S. military regulations, DoDI 5525.11 and/or applicable U.S. military
regulations or orders will control over this clause. The notification referenced above is as follows: Notification: Under the Military
Extraterritorial Jurisdiction Act (MEJA) (18 USC 3261-3267), persons employed by or accompanying the U.S. Armed Forces outside the
United States are potentially subject to prosecution for certain criminal acts, including such acts occurring outside the United States.
MEJA applies only to those crimes punishable by imprisonment for more than one year if committed within United States jurisdiction. The
law applies to individuals accompanying a contractor for the US Armed Forces, which may include a dependent of a DOD contractor or
subcontractor employee. This law authorizes DOD law enforcement personnel to arrest suspected offenders in accordance with applicable
international agreements and specifies procedures for the removal of accused individuals to the US. It also authorizes pretrial
detention and the appointment of counsel for accused individuals. See Army Field Manual 3-100.21, Contractors on the Battlefield, and
DoD Instruction 5525.11, Criminal Jurisdiction Over Civilians Employed By or Accompanying the Armed Forces Outside the United States,
Certain Service Members, and Former Service Members.
NOTE: Also see KSCR1-6, paragraphs (d), (e) & (f).
(End of Clause)
58 KSCR1-13 (C3) INSTALLATION SECURITY/ACCESS/BADGING REQUIREMENTS AUG/2010
(a) Badging and access requirements for Army Posts in Kuwait will require coordination with the Contracting Officer or the Contracting
Officer Representative (COR) responsible for contract oversight at applicable location.
(1) To obtain entry to Camp Arifjan, Contractors must contact the Badging Office at 965-2389-1525 for forms, procedures and
instructions.
(2) New passes are obtained at ECP 1 (TCN Gate) on Camp Arifjan. Renewals and upgrades are handled at the Provost Marshal Office Bldg
159 located on Camp Arifjan. The ECP 1 Badging Office provides support from 0700 to 1600 and 1900 to 0400 Daily.
(b) Contractors are advised that badging for citizens/residents of certain countries is restricted or unavailable. Contractors must
contact the Badging Office to obtain a list of restricted countries and any applicable waiver processes.
(c) Contractor shall adhere to all Physical Security requirements for all areas of performance under this contract IAW Army Regulation
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190 series. The Contractor shall comply with the ASG-KU Commands directed vetting/badging policies for all personnel.
(d) Special Instructions for Compound Pass access procedures per ASG-KU-PMO:
The contractor shall obtain temporary installation access passes through the Contracting Officer or the Contracting Officer's
Representative (COR). The contractor shall allow a minimum of 5 working days to process passes through the Pass and ID section. To
obtain temporary passes; the contractor must submit a copy of the Civil ID with a level 18 working code for each worker, a copy of the
workers' passport showing the Kuwait visa, and a completed Pass Request Form. The above-mentioned form can be obtained at the Pass and
ID Section. Additionally, the contractor must identify all the workers' sponsors and have an individual letter for each applicant from
their sponsor authorizing their employees to work for the contractor and accepting responsibility. It is the responsibility of the
Contractor to screen employees for countries of concern. Citizens of the countries below are prohibited access to the installation
unless granted an exception by the ASG-KU Commander. For each exception to policy, a name-check with the U.S. Embassy and a Kuwait
KMOD/KMOI Background Investigation will be conducted and kept on file at the ASG-KU PMO Installation Access Office.
(1) Cuba
(2) Iran
(3) Iraq
(4) Libya
(5) Democratic People's Republic of Korea
(6) Sudan
(7) Syria
Citizens of the countries listed below are permitted to apply for installation access; however a name-check with the U.S. Embassy must
be conducted in addition to the routine KMOD/KMOI Background Investigation.
(1) Russia
(2) People's Republic of China
(3) Socialist Republic of Vietnam
(End of Clause)
59 KSCR1-14 (C3) SPECIAL REQUIREMENTS FOR SECURITY/ACCESS ON AIR FORCE BASES IN KUWAIT AUG/2010
SECURITY & ACCESS:
(a) The contractor shall follow security procedures and instructions applicable to Ali Al Salem AB, Kuwait. Contractor personnel working
on Ali Al Salem Air Base shall hold a current Kuwait Pass necessary to gain access to the front Gate. The U.S. shall not be liable for
delays caused by inaccessibility through the Kuwaiti Gate.
(b) The contractor shall submit pass request applications to the Contracting Officer within 3 calendar days after receipt of Notice of
Contract Award. The pass request applications require coordination with the Host Nation Liaison. The U.S. Air Force shall not be liable
for delays resulting from Kuwaiti pass coordination/approval. Contractor shall be liable for completing all requirements within the
specified time frames. No extensions on work will be granted due to delays from Kuwaiti pass coordination/approval. Upon completion the
pass request letters shall be returned to the contractor for coordination with the Kuwait Air Force Security Office.
(c) The contractor is also required to complete Installation Access Applications for all employees entering Ali Al Salem Air Base. Once
the application is complete all contractor employees must then register within the Defense Biometric Identification System (DBIDS) and
receive a DBIDS badge.
(d) The work site is located in a restricted or controlled area. The contractor may therefore experience delays due to compliance with
entrance/exit requirements of restricted/controlled areas. The maximum amount of delay should not exceed four (4) hours per occurrence.
(e) The Host Nation base will not grant access for individuals of the following nationalities: Iranian, Iraqi, Cuban, Libyan, Syrian,
Sudanese, Jordanian, Palestinian, and North Korean.
There are two passes that are required for access to Air Force installations in Kuwait:
(1) The first pass that is required is the DBIDS badge. An application shall be completed for this badge. Once the completed
application is received, contractor will be able to go to the DBIDS trailer at the gate and get your biometrics taken. The results of
the biometrics scan takes three days. After these three days, contractor may come pick up DBIDS badge.
(2) The second pass that is required is a temporary pass from the Kuwaitis. Each person on the admissions pass must have copies of
their Civil ID cards attached to the document. Each person on the short term vehicle pass must have a copy of their Civil ID cards,
vehicle registration, and driver's license. The short term passes are only good for five days, but I would recommend that you submit
your information for this pass as soon as possible since these can be difficult to obtain at times. Both the admissions and vehicle
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temporary passes must have both English and Arabic versions submitted. I have also attached the most current instructions on how to
complete these temporary pass applications. NOTE: All date formats have to be YYYY/MONTH/DAY. Also, these passes must be typed.
DBIDS Processing Instructions for 386 ECONS Contractors:
STEP ONE: Obtain a copy of the Installation Access Application (IAA) from the Ali Al Salem Air Base Contracting Office (386 ECONS).
STEP TWO: Ensure sections 1, 2, 3, 4, 9, 11, and 12 are completed with the appropriate information. Once you have accurately completed
the IAA, submit the completed form to the 386 ECONS. Ensure that each application has the required backup documentation (see section 10
of the IAA, Verifying Documents Attached section). At a minimum each IAA should have:
(1) Copy of the passport (photo, data, and residency pages)
(2) Copy of the civil ID (front and back)
(3) Entry Visa with entry stamp (if applicable)
(4) Original sponsor letter (in English ONLY)
(5) Copy of the driver's license
STEP THREE: Once you have submitted the completed form to the 386 ECONS, your representative within the 386 ECONS will complete sections
5, 6, and 7.
STEP FOUR: The 386 ECONS will submit the completed IAA to the DBIDS office. You will then be notified by the 386 ECONS that the IAA is
in the DBIDS office. At this time you can report to the DBIDS office (located at the Fox 1/"Ringmaster" entrance of Ali Al Salem Air
Base) for the submission of your biometric information.
All 386 ECONS contractors who have submitted IAAs can report to the DBIDS office Monday through Saturday from 1500 to 1630.
STEP FIVE: Visitor awaits receipt of DBIDS badge.
(End of Clause)
60 KSCR1-15 (C3) PREVENTION OF SEXUAL HARASSMENT TRAINING AUG/2010
(a) Definitions. As used in this policy--
"Sexual Assault" means--
A crime defined as intentional sexual contact, characterized by use of force, physical threat or abuse of authority or when the victim
does not or cannot consent. Sexual assault includes rape, nonconsensual sodomy (oral or anal sex), indecent assault (unwanted,
inappropriate sexual contact or fondling), or attempts to commit these acts. Sexual assault can occur without regard to gender or
spousal relationship or age of victim. Consent will not be deemed or construed to mean the failure by the victim to offer physical
resistance. Consent is not given when a person uses force, threat of force, or coercion or when the victim is asleep, incapacitated, or
unconscious.
"Sexual Harassment" means--
Gender discrimination that involves unwelcomed sexual advances, requests for sexual favors and other verbal or physical conduct of a
sexual nature between the same or opposite sex genders when such conduct has the purpose or effect of unreasonably interfering with an
individuals work performance or creates an intimidating, hostile, or offensive working environment. Categories of sexual harassment are:
(1) Verbal Examples include telling sexual jokes; using sexually explicit profanity, threats, sexually oriented cadences, or sexual
comments; whistling in a sexually suggestive manner; and describing certain attributes of ones physical appearance in a sexual manner.
(2) Nonverbal Examples include staring at someone, blowing kisses, winking, or licking ones lips in a suggestive manner. The term may
also include printed material (for example, displaying sexually oriented pictures or cartoons); using sexually oriented screen savers on
ones computer; or sending sexually oriented notes, letters, faxes or email.
(3) Physical Contact Examples include touching, patting, pinching, bumping, grabbing, cornering, or blocking a passageway; kissing;
and providing unsolicited back or neck rubs.
(b) Policy. The Department of Defense has adopted a policy to prevent sexual assault and sexual harassment.
(c) Contractors and contractor employees in the Army Central Command (ARCENT) Area of Responsibility (AOR) shall not--
(1) Commit acts of sexual assault against any person on any camp, post, installation, or other United States enclave within the ARCENT
AOR; or
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(2) Sexually harass any person on any camp, post, installation, or other United States enclave within the ARCENT AOR.
(d) Contractor requirements. The Contractor shall--
(1) Notify its employees of:
(i) The Department of Defenses policy described in paragraph (b); and
(ii) The actions that will be taken against employees for violations of this policy. Such actions may include, but are not limited
to, removal from the contract, reduction in benefits, or termination of employment;
(2) Take appropriate action, up to and including termination, against employees or subcontractors that violate the policy in paragraph
(b); and
(3) Annually train all employees to prevent sexual assault and sexual harassment. This training must, at a minimum, ensure that all
contractor employees understanding the definitions outlined in paragraph (a) and the policy in paragraph (b). Each employees compliance
with this training requirement shall be reported to the Contracting Officers Representative prior to the employee being allowed access
to the worksite.
(e) Notification. The Contractor shall inform the Contracting Officer immediately of--
(1) Any information it receives from any source (including host country law enforcement) that alleges a Contractor employee,
subcontractor, or subcontractor employee has engaged in conduct that violates this policy; and
(2) Any actions taken against Contractor employees, subcontractors, or subcontractor employees pursuant to this policy.
(f) Remedies. In addition to other remedies available to the Government, the Contractor's failure to comply with the requirements of
paragraphs (c), (d), or (f) of this policy may result in--
(1) Requiring the Contractor to remove a Contractor employee or employees from the performance of the contract;
(2) Requiring the Contractor to terminate a subcontract;
(3) Suspension of contract payments;
(4) Loss of award fee, consistent with the award fee plan, for the performance period in which the Government determined Contractor
non-compliance;
(5) Termination of the contract for default or cause, in accordance with the termination clause of this contract; or
(g) Subcontracts. The Contractor shall include the substance of this policy, including this paragraph (g), in all subcontracts.
(h) Mitigating Factor. The Contracting Officer may consider whether the Contactor had a Sexual Assault Prevention and Response training
program at the time of the violation as a mitigating factor when determining remedies. Additional information about Sexual Assault
Prevention and Response training programs can be found at the Department of Defense Sexual Assault Prevention and Response Home Page,
http://www.sapr.mil.
(End of Clause)
61 KSCR1-16 (C3) CONTRACTOR PAYMENTS NOV/2010
Currency: Payments made against this contract will be paid in local currency (Kuwait Dinar) if awarded to a non U.S. vendor. If
contract award has been made to a U.S. contractor, payment will be made in U.S. currency (dollars). Payments shall be made via
Electronic Funds Transfer (EFT), unless circumstances beyond a contractors control prevent this.
(End of Clause)
62 KSCR1-17 (C3) SPONSORSHIP REQUIREMENTS AUG/2010
Sponsorship: The Contractor shall obtain local sponsorship as required for all personnel for the purpose of providing in-country legal
representation, work visas and resolution of other personal business or domestic matters, in compliance with host nation labor laws.
Passports, Visa and Customs: The Contractor is responsible for identifying and obtaining all passports, visas, or other documents
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necessary to enter and/or exit any areas necessary for performance. All Contractor employees shall be subject to the customs, processing
procedures, laws, and duties of Kuwait, and the procedures, laws, and duties of the United States upon re-entry. Contractors are
required to register all personnel with the appropriate U.S. Embassy or Consulate.
(End of Clause)
63 KSCR1-18 (C3) CONTRACTOR MANPOWER REPORTING OCT/2011
Contractor Manpower Reporting: The Office of the Assistant Secretary of the Army (Manpower & Reserve Affairs) operates and maintains a
secure Army data collection site where the contractor shall report ALL contractor manpower (including subcontractor manpower) required
for performance of this contract. The contractor is required to completely fill in all the information in the format using the following
web address https://cmra.army.mil/login.aspx
The required information includes:
(1) Contracting Office, Contracting Officer, Administrative Contracting Officer;
(2) Contract Number;
(3) Beginning and ending dates covered by reporting period;
(4) Contractor name, address, phone number, email address, identify of contractor employee entering data;
(5) Estimated direct labor hours (including sub-contractors);
(6) Estimated direct labor dollars (including sub-contractors);
(7) Total payments (including sub-contractors);
(8) Predominant Federal Service Code (FSC) reflecting services provided by contractor (and separate predominant FSC for each sub-
contractor, if different);
(9) Estimated data collections cost;
(10) Organizational title associated with the Unit Identification Code (UIC) for the Army Requiring Activity (the Army Requiring
Activity is responsible for providing the contractor with its UIC for the purposes of reporting this information);
(11) Locations where contractor and subcontractor perform the work (specified by zip code in the United States or nearest city,
country when in an overseas location, using standardized nomenclature provided on website);
(12) Presence of deployment or contingency contract language; and
(13) Number of contractor and sub-contractor employees deployed in theater during this reporting period (by country).
As part of its submission, the contractor will also provide the estimated total cost (if any) incurred to comply with this reporting
requirement. Reporting period will be the period of performance not to exceed 12 months ending September 30 of each calendar year.
Contractors may use a direct XML data transfer to the data base server or fill in the fields on the website. The XML direct transfer us
a format for transferring files from a contractor's systems to the secure web site without the need for separate data entries for each
required data element at the web site. The specific formats for the XML direct transfer may be downloaded from the web site. The
Contractor shall NOT mark any data provided to the USG under this contract as proprietary; this includes records, files, memoranda,
reports, listings, SOPs, plans, programs, studies, tests, property listings, etc., or any other data acquired or produced by the
Contractor in support of this contract. Further, IAW with DFARS 252.227-7013, the Government shall have unlimited rights to all
technical data produced or obtained by the Contractor under the terms of this contract. As such, the Contractor shall not place
proprietary markings on any documents to which the Government has unlimited rights.
(End of Clause)
64 KSCR1-19 (C3) SPECIAL REQUIREMENTS FOR CONSTRUCTION AND FACILITY ASSOCIATED WORK ON OCT/2011
MILITARY INSTALLATIONS IN KUWAIT
Contractor Liaison with Host Government: All communication by the Contractor with all officials, Representatives and/or offices of the
Host Government in all matters pertaining to the design or construction of this contract, shall be through and in full liaison with the
Contracting Officer. This does not relinquish Contractor responsibility for obtaining routine items to conduct day to-day business, such
as visas, permits, and custom clearances.
Kuwait Ministry of Defense (KMOD) Letter of Authorization: An offeror must provide a copy of the offerors KMOD construction
authorization letter stamped by the Military Engineering Projects Office along with an original certified English translation. If the
KMOD construction authorization letter being submitted is due for renewal within 30 days of proposal submission, the offeror involved
should describe the procedure by which it intends to obtain renewal of that authorization letter.
Use of Existing Roads as Haul Routes: The Contractor shall be responsible for coordinating with the Host Nation Government and the base
authorities for use of any existing roads as haul routes. Construction, and routing of new haul roads, and/or upgrading of existing
roads to carry anticipated construction traffic shall be coordinated with the Host Nation and Base authorities and is the sole
responsibility of the Contractor.
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Compliance with Kuwait Rules and Customs for Access to Restricted Areas within Kuwait: The laws of Host Country may prohibit access to
certain areas of the country which are under military control. The Contractor shall furnish the Contracting Officer the names of
personnel, type, and amounts of equipment, dates and length of time required at the site, and the purpose of entering the host country.
It is understood that areas to which rights of entry are provided by the Host Government are to be used only for work carried out under
the contract and no destruction or damages shall be caused, except through normal usage, without concurrence of the Host Government.
Contractor's Responsibilities: The following items are the sole responsibility of the Contractor to investigate, estimate as to cost,
and assume the risk, as normally encountered by Contractors. The Contractor shall be responsible for determining the effect of the
following on his own cost of performance of the contract and for including sufficient amount in the contract price:
(1) Official language and type of accounts required to satisfy the officials of the Local Government.
(2) Entry and exit visas, residence permits, and residence laws applicable to aliens. This includes any special requirements of the
Host Government, including those required by local Labor Offices, which the Contractor may have to fulfill before an application for a
regular block of visas will be accepted.
(3) Passports, health and immunization certificates, and quarantine clearance.
(4) Compliance with local labor and insurance laws, including payment of employer's share of contribution, collecting balance from
employee and paying into insurance funds.
(5) Strikes, demonstrations and work stoppage.
(6) Collection through withholding and payment to local Government, of any Host Country income tax on employees subject to tax.
(7) Arranging to perform work in the Host Country, to import personnel, to employ non-indigenous labor, to receive payments and to
remove such funds from the country.
(8) Operating under local laws, practices, customs and controls, and with local unions, in connection with hiring and firing,
mandatory wage scales, vacation pay, severance pay, overtime, holiday pay, 7th day of rest, legal notice or pay in lieu thereof for
dismissal of employees, slowdown and curtailed schedules during religious holidays and ratio of local labor employed in comparison to
others.
(9) Possibility of claims in local bureaus, litigation in local courts, or attachment of local bank accounts.
(10) Compliance with workmen's compensation laws and contributions into funds. Provisions of necessary medical service for Contractor
employees.
(11) Special license required by the local Government for setting up and operating any manufacturing plant in the Host Country, e.g.
concrete batching, precast concrete, concrete blocks, etc.
(12) Sales within the host country of Contractor-owned materials, and equipment.
(13) Special licenses for physicians, mechanics, tradesmen, drivers, etc.
(14) Identification and/or registration with local police of imported personnel.
(15) Stamp tax on documents, payments and payrolls.
(16) Base passes for permanent staff, day laborers, motor vehicles, etc.
(17) Compliance with all customs and import rules, regulations and restrictions, including, but not limited to, local purchase
requirements.
Local Standards: Design and installation of systems shall comply with applicable local Kuwait Ministry and Military Engineering
Projects (MEP) standards and regulations. Conflicts between criteria and local standards shall be brought to the attention of the
Contracting Officer for resolution. In such instances, the Contractor shall furnish all available information with justification to the
Contracting Officer.
Applicable Publications and Standards: All of the electrical installation shall be in accordance with the requirements of (Kuwait)
Ministry of Electricity and Water (MEW) R-1 and S-1. Equipment and installation items not covered by these standards shall meet the
other applicable US standards below. Conflicts with local codes or standards shall be brought to the attention of the Contracting
Officer for resolution. Where specific U.S. standards are listed, equivalent internationally recognized standards, such as BS, DIN or
IEC, may be substituted after written approval of the Contracting Officer. It is the responsibility of the Contractor to provide data
demonstrating that the proposed standard is equivalent. The use of the latest published standard is acceptable in lieu of the standard
listed.
Ministry of Electricity and Water (MEW) R-1:Regulations for Electrical Installations (latest issue)
Ministry of Electricity and Water (MEW) S-1:General Specification for Electrical Installation (latest issue)
NATIONAL FIRE PROTECTION ASSOCIATION (NFPA) 70 (2008) National
Electrical Code
Kuwait MEW (Ministry of Electricity & Water) R1 & S1 regulations
BRITISH STANDARDS INSTITUTE BS 1363-2 (Jan 1995, Amd 1) 13 A Plugs, socket-outlets & adapters-Specifications for 13 A switched and
unswitched socket-outlets
BS 7671 (1997, Amd 2) Requirements for Electrical Installations
INSTITUTE OF ELECTRICAL AND ELECTRONICS ENGINEERS (IEEE) Std C2 (2002) National Electrical Safety Code
IEEE Std 141 (1993) Electric Power Distribution for Industrial Plants
IEEE Std 493 (1997) Design of Reliable Industrial and Commercial Power Systems
INTERNATIONAL ELECTRO-TECHNICAL COMMISSION (IEC) IEC 60529 (2001-02, Ed. 2.1) Degrees of Protection Provided by Enclosures (IP
Code)
NFPA 101 (2003) Life Safety Code
U.S. ARMY TECHNICAL MANUALS,TM 5-811-1 (1995) Electrical Power Supply and Distribution
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IEC 61558-2-5(1997-12) Safety of power transformers, power supply units and similar Part 2.5: Particular requirements for shaver
transformers and shaver supply units.
Electrical and Structural Building Standards for Construction Projects at Military Bases in Kuwait:
(a) The standards set forth herein are the minimum requirements for the contract. These standards must be followed unless a more
stringent standard is specifically included. In such case the most stringent standard shall be required for contract acceptance.
(b) The contractor, in coordination with the Contracting Officer, the ASG Department of Public Works (DPW) and the requiring activity
shall evaluate, upgrade, build, and/or refurbish buildings (to include tents) to a safe and livable condition. This work may include
refurbishment, construction, alterations, and upgrades. All work shall be in accordance with accepted standards of quality. All
electrical components and wiring shall conform to Kuwait Ministry of Electricity and Water (MEW) standards as well as U.S. National
Electric Code (NEC).
(c) As dictated by the Unified Facilities Criteria (UFC) the contract shall meet:
(1) "The minimum requirements of United States National Fire Protection Association (NFPA) 70,
(2) 2011 National Electrical Code (NEC),
(3) American National Standards Institute (ANSI) C2, and
(4) United States' National Electrical Safety Code (NESC).
(d) These standards must be met when it is reasonable to do so with available materials. When conditions dictate deviation, then
provisions within the International Electrical Code (IEC) or British Standard (BS 7671) shall be followed. Any deviations from the
above necessary to reflect market conditions, shall receive prior written approval from a qualified engineer and the Contracting
Officer.
(e) The use of magnetic ballasts in lighting for new construction or replacement of existing magnetic ballasts during refurbishment,
alterations, or upgrades with new magnetic ballasts is prohibited.
(f) The following internet links provide access to some of these standards:
UFC: http://65.204.17.188/report/doc_ufc.html
NFPA 70: http://www.nfpa.org
NESC: http://www.standards.ieee.org/nesc
Contractor Health and Safety:
(a) Contractors shall comply with all National Electrical Code (NEC 2008), Specifications as outlined, and MIL Standards and
Regulations. All infrastructure to include, but not limited to, living quarters, showers, and restrooms shall be installed and
maintained in compliance with these standards and must be properly supported and staffed to ensure perpetual Code compliance, prevent
hazards and to quickly correct any hazards to maximize safety of those who use or work at the infrastructure. Specifically, the use of
magnetic ballasts in lighting for new construction or replacement of existing magnetic ballasts during refurbishment, alterations or
upgrades with new magnetic ballasts is prohibited. The government has the authority to enter and inspect contractor employee living
quarters at any time to ensure the prime contractor is complying with safety compliance standards outlined in the 2011 National Electric
Code (NEC).
(b) The contractor shall correct all deficiencies within a reasonable amount of time of contractor becoming aware of the deficiency
either by notice from the government or a third party, or discovery by the contractor. Further guidance on mandatory compliance with
NFPA 70: NEC 2011 can be found on the following link http://www.nfpa.org.
Safety of Facilities, Infrastructure and Equipment for Military Operations:
(a) Definition. Discipline Working Group, as used in this clause, means representatives from the DoD Components, as defined in MIL-STD-
3007F, who are responsible for the unification and maintenance of the Unified Facilities Criteria (UFC) documents for a particular
discipline area.
(b) The Contractor shall ensure, consistent with the requirements of the applicable inspection clause in this contract, that the
facilities, infrastructure, and equipment acquired, constructed, installed, repaired, maintained, or operated under this contract comply
with Unified Facilities Criteria (UFC) 1-200-01 for--
Fire protection;
Structural integrity;
Electrical systems;
Plumbing;
Water treatment;
Waste disposal; and
Telecommunications networks.
(c) The Contractor may apply a standard equivalent to or more stringent than UFC 1-200-01 upon a written determination of the
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acceptability of the standard by the Contracting Officer with the concurrence of the relevant Discipline Working Group.
(End of Clause)
65 252.225-7993 PROHIBITION ON CONTRACTING WITH THE ENEMY IN THE UNITED STATES JAN/2012
(DEV 2012- CENTRAL COMMAND THEATER OF OPERATIONS (DEVIATION 2012-O0005)
O0005)
(a) The Contractor is required to exercise due diligence to ensure that none of the funds received under this contract are provided,
directly or indirectly, to a person or entity who is actively supporting an insurgency or otherwise actively opposing U.S. or coalition
forces in a contingency operation.
(b) The Head of the Contracting Activity (HCA) has the authority to--
(1) Terminate this contract for default, in whole or in part, if the HCA determines in writing that the Contractor failed to exercise
due diligence as required by paragraph (a) of this clause; or
(2) Void this contract, in whole or in part, if the HCA determines in writing that any funds received under this Contract have been
provided, directly or indirectly, to a person or entity who is actively supporting an insurgency or otherwise actively opposing U.S. or
coalition forces in a contingency operation.
(End of clause)
66 252.225-7994 ADDITIONAL ACCESS TO CONTRACTOR AND SUBCONTRACTOR RECORDS IN THE JAN/2012
(DEV 2012- UNITED STATES CENTRAL COMMAND THEATER OF OPERATIONS (DEVIATION 2012-
O0005) O0005)
(a) In addition to any other existing examination-of-records authority, the Department of Defense is authorized to examine any records
of the Contractor to the extent necessary to ensure that funds available under this Contract are not--
(1) Subject to extortion or corruption; or
(2) Provided, directly or indirectly, to persons or entities that are actively supporting an insurgency or otherwise actively opposing
United States or coalition forces in a contingency operation.
(b) The substance of this clause, including this paragraph (b), is required to be included in subcontracts under this Contract that have
an estimated value over $100,000.
(End of clause)
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LIST OF ATTACHMENTS
List of Number List of Number
Addenda Title Date of Pages Transmitted By Addenda Title Date of Pages Transmitted By ________________ ____________________________________________________________ _______________ ____________ _______________ ________________ ____________________________________________________________ _______________ ____________ _______________
Exhibit A DATA ITEM A001 - START WORK MEETING REPORT 09-JUL-2012 002 EMAIL
Exhibit B DATA ITEM B001 - MONTHLY STATUS REPORT 09-JUL-2012 002 EMAIL
Exhibit C DATA ITEM C001 - SHELTER GUIDE REPORT 09-JUL-2012 002 EMAIL
Exhibit D DATA ITEM D001 - SHELTER SPECIFICATION REPORT 09-JUL-2012 002 EMAIL
Attachment 0001 PERFORMANCE WORK STATEMENT (PWS) 09-JUL-2012 017 EMAIL
Attachment 0002 NOTIONAL SKETCH 13-SEP-2012 001 EMAIL
Attachment 0003 BSB-N SUPPORT TO KEEP MEMORANDUM 12-SEP-2012 004 EMAIL
Attachment 0004 GENERAL ORDER NUMBER 1B (GO-1B) 13-MAR-2006 006 EMAIL
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REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS
1 252.203-7005 REPRESENTATION RELATING TO COMPENSATION OF FORMER DOD OFFICIALS NOV/2011
2 252.225-7031 SECONDARY ARAB BOYCOTT OF ISRAEL JUN/2005
3 252.225-7042 AUTHORIZATION TO PERFORM APR/2003
4 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS FEB/2012
(a) Definitions. As used in this provision--
Administrative proceeding means a non-judicial process that is adjudicatory in nature in order to make a determination of fault or
liability (e.g., Securities and Exchange Commission Administrative Proceedings, Civilian Board of Contract Appeals Proceedings, and
Armed Services Board of Contract Appeals Proceedings). This includes administrative proceedings at the Federal and State level but only
in connection with performance of a Federal contract or grant. It does not include agency actions such as contract audits, site visits,
corrective plans, or inspection of deliverables.
Federal contracts and grants with total value greater than $10,000,000 means--
(1) The total value of all current, active contracts and grants, including all priced options; and
(2) The total value of all current, active orders including all priced options under indefinite-delivery, indefinite-quantity,
8(a), or requirements contracts (including task and delivery and multiple-award Schedules).
Principal means an officer, director, owner, partner, or a person having primary management or supervisory responsibilities within a
business entity (e.g., general manager; plant manager; head of a division or business segment; and similar positions).
(b) The offeror [ ] has [ ] does not have current active Federal contracts and grants with total value greater than $10,000,000.
(c) If the offeror checked "has" in paragraph (b) of this provision, the offeror represents, by submission of this offer, that the
information it has entered in the Federal Awardee Performance and Integrity Information System (FAPIIS) is current, accurate, and
complete as of the date of submission of this offer with regard to the following information:
(1) Whether the offeror, and/or any of its principals, has or has not, within the last five years, in connection with the award to or
performance by the offeror of a Federal contract or grant, been the subject of a proceeding, at the Federal or State level that resulted
in any of the following dispositions:
(i) In a criminal proceeding, a conviction.
(ii) In a civil proceeding, a finding of fault and liability that results in the payment of a monetary fine, penalty, reimbursement,
restitution, or damages of $5,000 or more.
(iii) In an administrative proceeding, a finding of fault and liability that results in--
(A) The payment of a monetary fine or penalty of $5,000 or more; or
(B) The payment of a reimbursement, restitution, or damages in excess of $100,000.
(iv) In a criminal, civil, or administrative proceeding, a disposition of the matter by consent or compromise with an acknowledgment
of fault by the Contractor if the proceeding could have led to any of the outcomes specified in paragraphs (c)(1)(i), (c)(1)(ii), or
(c)(1)(iii) of this provision.
(2) If the offeror has been involved in the last five years in any of the occurrences listed in (c)(1) of this provision, whether the
offeror has provided the requested information with regard to each occurrence.
(d) The offeror shall post the information in paragraphs (c)(1)(i) through (c)(1)(iv) of this provision in FAPIIS as required through
maintaining an active registration in the Central Contractor Registration database via https://www.acquisition.gov (see 52.204-7).
(End of provision)
5 52.212-3 OFFERORS REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (APR APR/2011
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2012) - ALTERNATE I (APR 2011)
An offeror shall complete only paragraph (b) of this provision if the offeror has completed the annual representations and certificates
electronically via \*HYPERLINK "https://www.acquisition.gov"https://www.acquisition.gov. If an offeror has not completed the annual ___________________________
representations and certifications electronically at the ORCA website, the offeror shall complete only paragraphs (c) through (o) of
this provision.
"Economically disadvantaged women-owned small business (EDWOSB) concern" means a small business concern that is at least 51 percent
directly and unconditionally owned by, and the management and daily business operations of which are controlled by, one or more women
who are citizens of the United States and who are economically disadvantaged in accordance with 13 CFR part 127. It automatically
qualifies as a women-owned small business eligible under the WOSB Program.
"Forced or indentured child labor" means all work or service
(1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for which the worker does
not offer himself voluntarily; or
(2) Performed by any person under the age of 18 pursuant to a contract the enforcement of which can be accomplished by process or
penalties.
"Inverted domestic corporation" as used in this section, means a foreign incorporated entity which is treated as an inverted domestic
corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United States, or used to be a partnership in
the United States, but now is incorporated in a foreign country, or is a subsidiary whose parent corporation is incorporated in a
foreign country, that meets the criteria specified in 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C.
395(c). An inverted domestic corporation as herein defined does not meet the definition of an inverted domestic corporation as defined
by the Internal Revenue Code at 26 U.S.C. 7874.
"Manufactured end product" means any end product in Federal Supply Classes (FSC) 1000-9999, except
(8) FSC 9610, Ores;
"Place of manufacture" means the place where an end product is assembled out of components, or otherwise made or processed from raw
materials into the finished product that is to be provided to the Government. If a product is disassembled and reassembled, the place of
reassembly is not the place of manufacture.
"Restricted business operations" means business operations in Sudan that include power production activities, mineral extraction
activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and
Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include business operations that the person (as that
term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate--
(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or
are expressly exempted under Federal law from the requirement to be conducted under such authorization;
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(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;
"Sensitive technology"--
(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically--
(2) Does not include information or informational materials the export of which the President does not have the authority to regulate
or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).
"Service-disabled veteran-owned small business concern"
(1) Means a small business concern
(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case
of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
(2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined
in 38 U.S.C. 101(16).
"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not dominant in the field
of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria in 13 CFR Part 121 and
size standards in this solicitation.
"Subsidiary" means an entity in which more than 50 percent of the entity is owned--
"Veteran-owned small business concern" means a small business concern
(1) Not less than 51 percent of which is owned by one or more veterans(as defined at 38 U.S.C. 101(2)) or, in the case of any publicly
owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and
"Women-owned business concern" means a concern which is at least 51 percent owned by one or more women; or in the case of any publicly
owned business, at least 51 percent of the its stock is owned by one or more women; and whose management and daily business operations
are controlled by one or more women.
"Women-owned small business concern" means a small business concern --
(1) That is at least 51 percent owned by one or more women or, in the case of any publicly owned business, at least 51 percent of the
stock of which is owned by one or more women; and
"Women-owned small business (WOSB) concern eligible under the WOSB Program" (in accordance with 13 CFR part 127), means a small business
concern that is at least 51 percent directly and unconditionally owned by, and the management and daily business operations of which are
controlled by, one or more women who are citizens of the United States.
(b)(1) Annual Representations and Certifications. Any changes provided by the offeror in paragraph (b)(2) of this provision do not
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automatically change the representations and certifications posted on the Online Representations and Certifications Application (ORCA)
website.
(2) The offeror has completed the annual representations and certifications electronically via the ORCA website accessed through
\*HYPERLINK "https://www.acquisition.gov"https://www.acquisition.gov. After reviewing the ORCA database information, the offeror ___________________________
verifies by submission of this offer that the representations and certifications currently posted electronically at FAR 52.212-3,
Offeror Representations and Certifications--Commercial Items, have been entered or updated in the last 12 months, are current, accurate,
complete, and applicable to this solicitation (including the business size standard applicable to the NAICS code referenced for this
solicitation), as of the date of this offer and are incorporated in this offer by reference (see FAR 4.1201), except for paragraphs
_______________. [Offeror to identify the applicable paragraphs at (c) through (o) of this provision that the offeror has completed for
the purposes of this solicitation only, if any. These amended representation(s) and/or certification(s) are also incorporated in this
offer and are current, accurate, and complete as of the date of this offer. Any changes provided by the offeror are applicable to this
solicitation only, and do not result in an update to the representations and certifications posted electronically on ORCA.]
(c) Offerors must complete the following representations when the resulting contract is to be performed in the United States or its
outlying areas. Check all that apply.
(1) Small business concern. The offeror represents as part of its offer that it
___ is,
___ is not a small business concern.
(2) Veteran-owned small business concern. [Complete only if the offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents as part of its offer that it
___ is,
___ is not a veteran-owned small business concern.
(3) Service-disabled veteran-owned small business concern. [Complete only if the offeror represented itself as a veteran-owned small
business concern in paragraph (c)(2) of this provision.] The offeror represents as part of its offer that it
___ is,
___ is not a service-disabled veteran-owned small business concern.
(4) Small disadvantaged business concern. [Complete only if the offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents, for general statistical purposes, that it
___ is,
___ is not, a small disadvantaged business concern as defined in 13 CFR 124.1002.
(5) Women-owned small business concern. [Complete only if the offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents that it
___ is,
___ is not a women-owned small business concern.
(6) WOSB concern eligible under the WOSB Program. [Complete only if the offeror represented itself as a women-owned small business
concern in paragraph (c)(5) of this provision.] The offeror represents that--
(i) It ___ is, ___ is not a WOSB concern eligible under the WOSB Program, has provided all the required documents to the WOSB
(ii) It ___ is, ___ is not a joint venture that complies with the requirements of 13 CFR part 127, and the representation in
paragraph (c)(6)(i) of this provision is accurate for each WOSB concern eligible under the WOSB Program participating in the joint
venture. [The offeror shall enter the name or names of the WOSB concern eligible under the WOSB Program and other small businesses that
are participating in the joint venture:]
______________________________________________
______________________________________________
Each WOSB concern eligible under the WOSB Program participating in the joint venture shall submit a separate signed copy of the WOSB
representation.
(7) Economically disadvantaged women-owned small business (EDWOSB) concern. [Complete only if the offeror represented itself as a WOSB
concern eligible under the WOSB Program in (c)(6) of this provision.] The offeror represents that--
(i) It ___ is, ___ is not an EDWOSB concern, has provided all the required documents to the WOSB Repository, and no change in
circumstances or adverse decisions have been issued that affects its eligibility; and
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(ii) It ___ is, ___ is not a joint venture that omplies with the requirements of 13 CFR part 127, and the representation in
paragraph (c)(7)(i) of this provision is accurate for each EDWOSB concern participating in the joint venture. [The offeror shall enter
the name or names of the EDWOSB concern and
other small businesses that are participating in the joint venture:]
______________________________________________
______________________________________________
Each EDWOSB concern participating in the joint venture shall submit a separate signed copy of the EDWOSB
representation.
Note: Complete paragraphs (c)(8) and (c)(9) only if this solicitation is expected to exceed the simplified acquisition threshold.
(8) Women-owned business concern (other than small business concern). [Complete only if the offeror is a women-owned business concern
and did not represent itself as a small business concern in paragraph (c)(1) of this provision.]. The offeror represents that it
___ is, a women-owned business concern.
(9) Tie bid priority for labor surplus area concerns. If this is an invitation for bid, small business offerors may identify the labor
surplus areas in which costs to be incurred on account of manufacturing or production (by offeror or first-tier subcontractors) amount
to more than 50 percent of the contract price:
_________________________________________
(10) [Complete only if the solicitation contains the clause at FAR 52.219-23, Notice of Price Evaluation Adjustment for Small
Disadvantaged Business Concerns, or FAR 52.219-25, Small Disadvantaged Business Participation ProgramDisadvantaged Status and Reporting,
and the offeror desires a benefit based on its disadvantaged status.]
(i) General. The offeror represents that either
(A) It ___ is, ___ is not certified by the Small Business Administration as a small disadvantaged business concern and
identified, on the date of this representation, as a certified small disadvantaged business concern in the CCR Dynamic Small Business
Search database maintained by the Small Business Administration (PRO-Net), and that no material change in disadvantaged ownership and
control has occurred since its certification, and, where the concern is owned by one or more individuals claiming disadvantaged status,
the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into account the applicable
exclusions set forth at 13 CFR 124.104(c)(2); or
(B) It ___has, ___ has not submitted a completed application to the Small Business Administration or a Private Certifier to be
certified as a small disadvantaged business concern in accordance with 13 CFR 124, Subpart B, and a decision on that application is
pending, and that no material change in disadvantaged ownership and control has occurred since its application was submitted.
(ii) Joint Ventures under the Price Evaluation Adjustment for Small Disadvantaged Business Concerns. The offeror represents, as
part of its offer, that it is a joint venture that complies with the requirements in 13 CFR 124.1002(f) and that the representation in
paragraph (c)(10)(i) of this provision is accurate for the small disadvantaged business concern that is participating in the joint
venture. [The offeror shall enter the name of the small disadvantaged business concern that is participating in the joint venture:
_____________________________________________.]
(11) HUBZone small business concern. [Complete only if the offeror represented itself as a small business concern in paragraph (c)(1)
of this provision.] The offeror represents, as part of its offer, that--
(i) It ___ is, ___ is not a HUBZone small business concern listed, on the date of this representation, on the List of Qualified
HUBZone Small Business Concerns maintained by the Small Business Administration, and no material changes in ownership and control,
principal office, or HUBZone employee percentage have occurred since it was certified in accordance with 13 CFR Part 126; and
(ii) It ___ is, ___ not a HUBZone joint venture that complies with the requirements of 13 CFR Part 126, and the representation in
paragraph (c)(11)(i) of this provision is accurate for each HUBZone small business concern participating in the HUBZone joint venture.
[The offeror shall enter the names of each of the HUBZone small business concerns participating in the HUBZone joint venture:
_________________________________________.] Each HUBZone small business concern participating in the HUBZone joint venture shall submit
a separate signed copy of the HUBZone representation.
(12) (Complete if the offeror has represented itself as disadvantaged in paragraph (c)(4) or (c)(8) of this provision.) [The offeror
shall check the category in which its ownership falls]:
___ Black American.
___ Hispanic American.
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___ Native American (American Indians, Eskimos, Aleuts, or Native Hawaiians).
___ Asian-Pacific American (persons with origins from Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China, Taiwan,
Laos, Cambodia (Kampuchea), Vietnam, Korea, The Philippines, U.S. Trust Territory or the Pacific Islands (Republic of Palau), Republic
of the Marshall Islands, Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, Guam, Samoa, Macao, Hong
Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru).
___ Subcontinent Asian (Asian-Indian) American (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives
Islands, or Nepal).
___ Individual/concern, other than one of the preceding.
(d) Representations required to implement provisions of Executive Order 11246 --
(1) Previous contracts and compliance. The offeror represents that --
(i) It ___ has, ___ has not, participated in a previous contract or subcontract subject to the Equal Opportunity clause of this
solicitation; and
(ii) It ___ has, ___ has not, filed all required compliance reports.
(2) Affirmative Action Compliance. The offeror represents that --
(i) It ___ has developed and has on file,
___ has not developed and does not have on file, at each establishment, affirmative action programs required by rules and
regulations of the Secretary of Labor (41 CFR parts 60-1 and 60-2), or
(ii) It ___ has not previously had contracts subject to the written affirmative action programs requirement of the rules and
regulations of the Secretary of Labor.
(e) Certification Regarding Payments to Influence Federal Transactions (31 U.S.C. 1352). (Applies only if the contract is expected to
exceed $150,000.) By submission of its offer, the offeror certifies to the best of its knowledge and belief that no Federal appropriated
funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress or an employee of a Member of Congress on his or her behalf in connection with
the award of any resultant contract.
(f) Buy American Act Certificate. (Applies only if the clause at Federal Acquisition Regulation (FAR) 52.225-1, Buy American Act
Supplies, is included in this solicitation.)
(1) The offeror certifies that each end product, except those listed in paragraph (f)(2) of this provision, is a domestic end
product and that for other than COTS items, the offeror has considered components of unknown origin to have been mined, produced, or
manufactured outside the United States. The offeror shall list as foreign end products those end products manufactured in the United
States that do not qualify as domestic end products, i.e., an end product that is not a COTS item and does not meet the component test
in paragraph (2) of the definition of "domestic end product." The terms "commercially available off-the-shelf (COTS) item," "component,"
"domestic end product," "end product," "foreign end product," and "United States" are defined in the clause of this solicitation
entitled "Buy American Act--Supplies."
LINE ITEM NO. COUNTRY OF ORIGIN
___________________________________________________
___________________________________________________
[List as necessary]
(g)(1) Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate. (Applies only if the clause at FAR 52.225-3, Buy
American Act -- Free Trade Agreements -- Israeli Trade Act, is included in this solicitation.)
(i) The offeror certifies that each end product, except those listed in paragraph (g)(1)(ii) or (g)(1)(iii) of this provision, is a
domestic end product and that for other than COTS items, the offeror has considered components of unknown origin to have been mined,
produced, or manufactured outside the United States. The terms "Bahrainian, Moroccan, Omani, or Peruvian end product," "commercially
available off-the-shelf (COTS) item," "component," "domestic end product," "end product," "foreign end product," "Free Trade Agreement
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country," "Free Trade Agreement country end product," "Israeli end product," and "United States" are defined in the clause of this
solicitation entitled "Buy American Act-Free Trade Agreements-Israeli Trade Act."
(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other than Bahrainian,
Moroccan, Omani, or Peruvian end products) or Israeli end products as defined in the clause of this solicitation entitled Buy American
Act -- Free Trade Agreements -- Israeli Trade Act:
Free Trade Agreement Country End Products (Other than Bahrainian, Moroccan, Omani, or Peruvian End
Products) or Israeli End Products:
______________________________________________________
______________________________________________________
[List as necessary]
(iii) The offeror shall list those supplies that are foreign end products (other than those listed in paragraph (g)(1)(ii) or this
provision) as defined in the clause of this solicitation entitled Buy American Act -- Free Trade Agreements -- Israeli Trade Act. The
offeror shall list as other foreign end products those end products manufactured in the United States that do not qualify as domestic
end products, i.e., an end product that is not a COTS item and does not meet the component test in paragraph (2) of the definition of
"domestic end product."
________________________________________________________
________________________________________________________
[List as necessary]
(2) Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate, Alternate I. If Alternate I to the clause at FAR
52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph (g)(1)(ii) of the basic
provision:
solicitation entitled Buy American Act -- Free Trade Agreements -- Israeli Trade Act:
Line Item No.:
________________________________________________
[List as necessary]
(3) Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate, Alternate II. If Alternate II to the clause at FAR
provision:
(g)(1)(ii) The offeror certifies that the following supplies are Canadian end products or Israeli end products as defined in the
_____________________________________________________
_____________________________________________________
[List as necessary]
(4) Trade Agreements Certificate. (Applies only if the clause at FAR 52.225-5, Trade Agreements, is included in this solicitation.)
(i) The offeror certifies that each end product, except those listed in paragraph (g)(4)(ii) of this provision, is a U.S.-made or
designated country end product as defined in the clause of this solicitation entitled Trade Agreements.
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(ii) The offeror shall list as other end products those end products that are not U.S.-made or designated country end products.
Other End Products
_______________________________________________________
_______________________________________________________
[List as necessary]
(iii) The Government will evaluate offers in accordance with the policies and procedures of FAR Part 25. For line items covered by
the WTO GPA, the Government will evaluate offers of U.S.-made or designated country end products without regard to the restrictions of
the Buy American Act. The Government will consider for award only offers of U.S.-made or designated country end products unless the
Contracting Officer determines that there are no offers for such products or that the offers for such products are insufficient to
fulfill the requirements of the solicitation.
(h) Certification Regarding Responsibility Matters (Executive Order 12689). (Applies only if the contract value is expected to exceed
the simplified acquisition threshold.) The offeror certifies, to the best of its knowledge and belief, that the offeror and/or any of
its principals--
(1) ___ Are, ___ are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by
any Federal agency;
(2) ___ Have, ___ have not, within a three-year period preceding this offer, been convicted of or had a civil judgment rendered
against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a Federal,
state or local government contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of
offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax
evasion, violating Federal criminal tax laws, or receiving stolen property;
(3) ___ Are, ___ are not presently indicted for, or otherwise criminally or civilly charged by a Government entity with, commission of
any of these offenses enumerated in paragraph (h)(2) of this clause; and
(4) ___ Have, ___ have not, within a three-year period preceding this offer, been notified of any delinquent Federal taxes in an
amount that exceeds $3,000 for which the liability remains unsatisfied.
finally determined if there is a pending administrative or judicial challenge. In the case of a judicial challenge to the liability, the
liability is not finally determined until all judicial appeal rights have been exhausted.
(B) The taxpayer is delinquent in making payment. A taxpayer is delinquent if the taxpayer has failed to pay the tax liability
when full payment was due and required. A taxpayer is not delinquent in cases where enforced collection action is precluded.
(ii) Examples.
(A) The taxpayer has received a statutory notice of deficiency, under I.R.C. Sec. 6212, which entitles the taxpayer
to seek Tax Court review of a proposed tax deficiency. This is not a delinquent tax because it is not a final tax liability. Should the
taxpayer seek Tax Court review, this will not be a final tax liability until the taxpayer has exercised all judicial appeal rights.
(B) The IRS has filed a notice of Federal tax lien with respect to an assessed tax liability, and the taxpayer has been issued a
notice under I.R.C. Sec. 6320 entitling the taxpayer to request a hearing with the IRS Office of Appeals contesting the lien filing,
and to further appeal to the Tax Court if the IRS determines to sustain the lien filing. In the course of the hearing, the taxpayer is
entitled to contest the underlying tax liability because the taxpayer has had no prior opportunity to contest the liability. This is not
a delinquent tax because it is not a final tax liability. Should the taxpayer seek tax court review, this will not be a final tax
liability until the taxpayer has exercised all judicial appeal rights.
(C) The taxpayer has entered into an installment agreement pursuant to I.R.C. Sec. 6159. The taxpayer is making timely payments
and is in full compliance with the agreement terms. The taxpayer is not delinquent because the taxpayer is not currently required to
make full payment.
(D) The taxpayer has filed for bankruptcy protection. The taxpayer is not delinquent because enforced collection action is stayed
under 11 U.S.C. 362 (the Bankruptcy Code).
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(i) Certification Regarding Knowledge of Child Labor for Listed End Products (Executive Order 13126). [The Contracting Officer must list
in paragraph (i)(1) any end products being acquired under this solicitation that are included in the List of Products Requiring
Contractor Certification as to Forced or Indentured Child Labor, unless excluded at 22.1503(b).]
(1) Listed End Product
Listed End Product Listed Countries of Origin
________________________________________________________________
________________________________________________________________
(2) Certification. [If the Contracting Officer has identified end products and countries of origin in paragraph (i)(1) of this
provision, then the offeror must certify to either (i)(2)(i) or (i)(2)(ii) by checking the appropriate block.]
[ ] (i) The offeror will not supply any end product listed in paragraph (i)(1) of this provision that was mined, produced, or
manufactured in the corresponding country as listed for that product.
[ ] (ii) The offeror may supply an end product listed in paragraph (i)(1) of this provision that was mined, produced, or
manufactured in the corresponding country as listed for that product. The offeror certifies that is has made a good faith effort to
determine whether forced or indentured child labor was used to mine, produce, or manufacture any such end product furnished under this
contract. On the basis of those efforts, the offeror certifies that it is not aware of any such use of child labor.
(j) Place of manufacture. (Does not apply unless the solicitation is predominantly for the acquisition of manufactured end products.)
For statistical purposes only, the offeror shall indicate whether the place of manufacture of the end products it expects to provide in
response to this solicitation is predominantly
(1) [ ] In the United States (Check this box if the total anticipated price of offered end products manufactured outside the united
States); or
(2) [ ] Outside the United States.
(k) Certificates regarding exemptions from the application of the Service Contract Act. (Certification by the offeror as to its
compliance with respect to the contract also constitutes its certification as to compliance by its subcontractor if it subcontracts out
the exempt services.) [The contracting officer is to check a box to indicate if paragraph (k)(1) or (k)(2) applies.]
(1) [ ] Maintenance, calibration, or repair of certain equipment as described in FAR 22.1003-4(c)(1). The offeror [ ] does [ ] does
not certify that
(i) The items of equipment to be serviced under this contract are used regularly for other than Governmental purposes and are sold
or traded by the offeror (or subcontractor in the case of an exempt subcontract) in substantial quantities to the general public in the
course of normal business operations;
(ii) The services will be furnished at prices which are, or are based on, established catalog or market prices (see FAR 22.1003-
4(c)(2)(ii)) for the maintenance, calibration, or repair of such equipment; and
(iii) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract will be the same
as that used for these employees and equivalent employees servicing the same equipment of commercial customers.
(2) [ ] Certain services as described in FAR 22.1003-4(d)(1). The offeror [ ] does [ ] does not certify that
(i) The services under the contract are offered and sold regularly to non-Governmental customers, and are provided by the offeror
(or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in the course of normal business
operations;
(ii) The contract services will be furnished at prices that are, or are based on, established catalog or market prices (see FAR
22.1003-4(d)(2)(iii));
(iii) Each service employee who will perform the services under the contract will spend only a small portion of his or her time (a
monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20 percent of available hours during
the contract period if the contract period is less than a month) servicing the Government contract; and
(iv) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract is the same as
that used for these employees and equivalent employees servicing commercial customers.
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(i) If the offeror does not certify to the conditions in paragraph (k)(1) or (k)(2) and the Contracting Officer did not attach a
Service Contract Act wage determination to the solicitation, the offeror shall notify the Contracting Officer as soon as possible; and
(ii) The Contracting Officer may not make an award to the offeror if the offeror fails to execute the certification in paragraph
(k)(1) or (k)(2) of this clause or to contact the Contracting Officer as required in paragraph (k)(3)(i) of this clause.
(l) Taxpayer Identification Number (TIN) (26 U.S.C. 6109, 31 U.S.C. 7701). (Not applicable if the offeror is required to provide this
information to a central contractor registration database to be eligible for award.)
(1) All offerors must submit the information required in paragraphs (l)(3) through (l)(5) of this provision to comply with debt
collection requirements of 31 U.S.C. 7701(c) and 3325(d), reporting requirements of 26 U.S.C. 6041, 6041A, and 6050M, and implementing
regulations issued by the Internal Revenue Service (IRS).
(2) The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the offeror's relationship
with the Government (31 U.S.C. 7701(c)(3)). If the resulting contract is subject to the payment reporting requirements described in FAR
4.904, the TIN provided hereunder may be matched with IRS records to verify the accuracy of the offeror's TIN.
* TIN: ____________________.
* TIN has been applied for.
* TIN is not required because:
* Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively connected
with the conduct of a trade or business in the United States and does not have an office or place of business or a fiscal paying agent
* Offeror is an agency or instrumentality of a foreign government;
* Offeror is an agency or instrumentality of the Federal Government.
* Sole proprietorship;
* Partnership;
* Corporate entity (not tax-exempt);
* Corporate entity (tax-exempt);
* Government entity (Federal, State, or local);
* Foreign government;
* International organization per 26 CFR 1.6049-4;
* Other ____________________.
(5) Common parent.
* Offeror is not owned or controlled by a common parent;
* Name and TIN of common parent:
Name ____________________.
TIN ____________________.
(m) Restricted business operations in Sudan. By submission of its offer, the offeror certifies that the offeror does not conduct any
restricted business operations in Sudan.
(n) Prohibition on Contracting with Inverted Domestic Corporations--
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(1) Relation to Internal Revenue Code. An inverted domestic corporation as herein defined does not meet the definition of an inverted
domestic corporation as defined by the Internal Revenue Code 25 U.S.C. 7874.
(o) Sanctioned activities relating to Iran. (1) The offeror shall email questions concerning sensitive technology to the Department of
State at CISADA106@state.gov.
(2) Representation and Certification. Unless a waiver is granted or an exception applies as provided in paragraph (o)(3) of this
provision, by submission of its offer, the offeror--
(i) Represents, to the best of its knowledge and belief, that the offeror does not export any sensitive technology to the government
of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran; and
(ii) Certifies that the offeror, or any person owned or controlled by the offeror, does not engage in any activities for which
sanctions may be imposed under section 5 of the Iran Sanctions
Act.
(3) The representation and certification requirements of paragraph (o)(2) of this provision do not apply if--
(i) This solicitation includes a trade agreements certification (e.g., 52.212-3(g) or a comparable agency provision); and
(End of Provision)
6 52.225-18 PLACE OF MANUFACTURE SEP/2006
'Manufactured end product' means any end product in Federal Supply Classes (FSC) 1000-9999, except
(8) FSC 9610, Ores;
'Place of manufacture' means the place where an end product is assembled out of components, or otherwise made or processed from raw
(b) For statistical purposes only, the offeror shall indicate whether the place of manufacture of the end products it expects to provide
in response to this solicitation is predominantly
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[ ] (1) In the United States (Check this box if the total anticipated price of offered end products manufactured in the United States
exceeds the total anticipated price of offered end products manufactured outside the United States); or
[ ] (2) Outside the United States.
(End of provision)
7 252.209-7999 REPRESENTATION BY CORPORATIONS REGARDING AN UNPAID DELINQUENT TAX JAN/2012
(DEV 2012- LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (DEVIATION
O0004) 2012-O0004)
(a) In accordance with sections 8124 and 8125 of Division A of the Consolidated Appropriations Act, 2012, (Pub. L. 112-74) none of the
funds made available by that Act may be used to enter into a contract with any corporation that--
(1) Has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been
exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for
collecting the tax liability, where the awarding agency is aware of the unpaid tax liability, unless the agency has considered
suspension or debarment of the corporation and made a determination that this further action is not necessary to protect the interests
of the Government.
(2) Was convicted of a felony criminal violation under any Federal law within the preceding 24 months, where the awarding agency is
aware of the conviction, unless the agency has considered suspension or debarment of the corporation and made a determination that this
action is not necessary to protect the interests of the Government.
(b) The Offeror represents that--
(1) It is [ ] is not [ ] a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and
administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with
the authority responsible for collecting the tax liability,
(2) It is [ ] is not [ ] a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24
months.
(End of provision)
8 252.212-7000 OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS JUN/2005
(1) Foreign person means any person other than a United States person as defined in Section 16(2) of the Export Administration Act of
1979 (50 U.S.C. App. Sec. 2415).
(2) United States means the 50 States, the District of Columbia, outlying areas, and the outer Continental Shelf as defined in 43
U.S.C. 1331.
(3) United States person is defined in Section 16(2) of the Export Administration Act of 1979 and means any United States resident or
national (other than an individual resident outside the United States and employed by other than a United States person), any domestic
concern (including any permanent domestic establishment of any foreign concern), and any foreign subsidiary or affiliate (including any
permanent foreign establishment) of any domestic concern which is controlled in fact by such domestic concern, as determined under
regulations of the President.
(b) Certification. By submitting this offer, the Offeror, if a foreign person, company or entity, certifies that it
(1) Does not comply with the Secondary Arab Boycott of Israel; and
(2) Is not taking or knowingly agreeing to take any action, with respect to the Secondary Boycott of Israel by Arab countries, which
50 U.S.C. App. Sec. 2407(a) prohibits a United States person from taking.
(c) Representation of Extent of Transportation by Sea. (This representation does not apply to solicitations for the direct purchase of
ocean transportation services).
(1) The Offeror shall indicate by checking the appropriate blank in paragraph (c)(2) of this provision whether transportation of
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supplies by sea is anticipated under the resultant contract. The term supplies is defined in the Transportation of Supplies by Sea
clause of this solicitation.
(2) Representation. The Offeror represents that it
[ ] Does anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this
solicitation.
[ ] Does not anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from
this solicitation.
(3) Any contract resulting from this solicitation will include the Transportation of Supplies by Sea clause. If the Offeror represents
that it will not use ocean transportation, the resulting contract will also include the Defense Federal Acquisition Regulation
Supplement clause at 252.247-7024, Notification of Transportation of Supplies by Sea.
(End of provision)
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INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS
PROPOSAL SUBMISSION
1. INTRODUCTION. The Offerors proposal shall be submitted in hard copy, with accompanying digital copies in Microsoft Software ____________
versions 2003-2007, as set forth below. The RFP shall provide the Government address and receipt for proposal submittal.
The offerors proposal shall consist of four volumes. The Volumes are I Technical, II Price, III Past Performance, and IV
Solicitation, Offer and Award Documents and Certifications/Representations. Files shall not contain classified data. The use of
hyperlinks in proposals is prohibited.
Offerors are cautioned that parroting of the Technical requirements of the PWS with a statement of intent to perform does not reflect an
understanding of the requirement or capability to perform. Offerors are responsible for including sufficient details to permit a
complete and accurate evaluation of each proposal. Proprietary information shall be clearly marked.
2. PROPOSAL SUBMISSION REQUIREMENTS ________________________________
a. Each volume shall be submitted in a separate three-ring binder. Any pages that are changed (as a result of
negotiations or proposal revisions) should be of a different color and have changed information clearly marked by a
vertical line in the right margin of the page. The revised pages shall be dated. Each binder shall be clearly labeled with
its Title and a copy number (e.g., copy 1 of 4).
b. Printing should be single spaced. Each paragraph shall be separated by at least one blank line. A standard, 12-point
minimum font size applies. Arial or New Times Roman fonts are required. Tables and illustrations may use a reduced font
size no less than 8-point and may be landscape.
c. A proposal limitation of 25 pages is applicable to the Technical Volume. However, there is no proposal page
limitation for this procurement. The following volumes of material shall be submitted:
PRINTED DIGITAL MAXIMUM
VOLUME TITLE ____________ COPIES COPIES PAGES
I Technical Original + 1 2 25*
II Price Original + 1 2 N/A
III Past Performance Original + 1 2 N/A
IV Solicitation, Offer and Award Original + 1 2 N/A
Documents and Certification/
Representations Original
*NOTE: Pages that exceed the required page limitations will not be evaluated. Additional pages over the maximum allowed will be removed
or not read and will not be evaluated by the Government.
d. All submissions must be received by the closing date and time identified in the RFP, to the following address:
Grace A. Battle
Contracting Officer
Army Contracting Command- New Jersey
McDonald Hall
5418 S. Scott Plaza
Fort Dix, NJ 08640
609-562-6278
e. Electronic proposal submissions via email or fax will not be accepted. Offers shall be mailed through a
commercial/Government carrier. The Procuring Contracting Officer (PCO) and the Contract Specialists are the sole points of
contact for this acquisition. Address all questions or concerns you may have to the PCO and Contract Specialist. All
questions regarding this RFP shall be submitted in writing via electronic mail to both:
i. Grace Battle, Contracting Officer, at grace.a.battle.civ@mail.mil; and
ii. Anthony Mauriello, Contract Specialist, at Anthony.o.mauriello.civ@mail.mil; ________________________________
3. PROPOSAL FILES. ______________
a)Format. The submission shall be clearly indexed and logically assembled. Each volume shall be clearly identified and ______
shall begin at the top of a page. All pages of each volume shall be appropriately numbered and identified by the complete company name,
date and RFP number in the header and/or footer. A proposal page limitation of 25 pages is applicable to this procurement. A Table of
Contents should be created. All files will be submitted as either a Microsoft (MS) Excel (.XLS) document compatible with Microsoft
Office 2007 or Acrobat (PDF) file. Offerors should convert all MS Word Documents into Acrobat (PDF) files. All pricing worksheets
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shall be submitted in Microsoft Excel (.XLS). These files shall use the following page setup parameters:
Margins Top, Bottom, Left, Right - 1
Gutter 0
From Edge Header, Footer - 0.5
Page Size, Width 8.5
Page Size, Height 11
NOTE: 11X17 folded pages are acceptable for tables/graphic representations; however, each 11X17 page counts as two pages.
The following additional restrictions apply:
b) File Packaging. All of the proposal files shall be compressed (zipped) into one file entitled {company name_Proposal _______________
Volume_Date.zip} using WinZip version 6.2 or later or as separate uploads in their native format, i.e. doc, xls, ppt, etc., and provided
on CDs or DVDs. Files shall be in read-only format, using PDF files. All price breakdown information to aide in the cost/price
evaluation shall be submitted in Microsoft Office Excel Read/Write format and viewable in Microsoft Excel 2007. Each disc shall be
externally labeled with the volume number, date, and the Offerors name. **Please note Self extracting exe files are no longer
accepted. ** If the hard-copy proposal differs from the electronic version, the hard copy will govern.
c) Content Requirements. All information shall be confined to the appropriate file. The offeror shall confine submissions to _____________________
essential matters, sufficient to define the proposal in a precise manner, to permit a complete and accurate evaluation of each proposal.
Each file of the proposal shall consist of a Table of Contents, Summary Section, and the Narrative discussion. The Summary Section shall
contain a brief abstract of the file. Proprietary information shall be clearly marked. The following shall be included in the Narrative
discussion:
i. VOLUME I Technical. The volume shall be organized into the following sections: ____________________
1. Section 1 - Structure and Design Flexibility. ____________________________________________
- Shelters must be suitable for installation within a desert environment (Kuwait) on semi-level surfaces
such as a compacted sand gravel mix with minimal site preparation work in accordance with Performance Work
Statement.
- Proposal demonstrates techniques and use of key materials, outputs and interfaces to provide shelter
structures that are highly insulated, rigid walled shelters that are erectable and re-locatable by
soldiers.
- The contractor shall address relative times for set-up and disassembly in their proposal, labor
requirements, and the method for repackaging and shipping. Proposal should address and provide data that
shelters are capable of being assembled, disassembled, and re-assembled at least seven times without
degradation to functional use and provides a minimum useful life of 20 years.
- The proposal assures that the specific government requirements are addressed and met. Meets all critical
requirements in proposed design flexibility in PWS. No special tools are required to assemble the shelters.
- The contractor provides acceptable drawings and specifications for both the one- and two-story shelters.
- The contractor indicates that their design minimizes tripping hazards for their shelter entry ways.
2. Section 2 - Energy Efficiency. _____________________________
- Offerors must specifically address aspects of product that improves overall energy conservation benefits.
- Solid data shall be provided that provides information on critical resource savings and efficiencies.
Product should demonstrate exceptional attention to energy efficiency either through design, insulation,
materials, sustainability or conservation.
- Proposal should addresses how the ECU is easily installed and maintained. Maintenance can be performed
by knowledgeable personnel with common tools.
3. Section 3 Schedule. ___________________
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- The Government acceptable timeline for installation of shelters is eight months.
- Proposals should address ability to expedite that timeline.
- The contractor shall provide a comprehensive production schedule.
ii. VOLUME II PRICE. _________________
The Offeror shall provide a completed Section B, which includes FFP unit prices for Contract Line Item Number (CLIN) 0001 and 0002. FFP
unit prices are required for all range quantities.
The proposed unit prices for CLINS 0001 and 0002 shall be inclusive of all fabrication, testing, inspection, packaging and delivery of
the Shelters. The Offeror is not to propose separate prices for CDRLs. Any cost associated with CDRLs will be included as part of the
FFP unit price of the shelter.
iii. VOLUME III PAST PERFORMANCE RISK. This volume shall contain past performance information regarding similar ___________________________________
contracts. Offerors shall submit all Government and/or commercial contracts for the prime offeror and each major subcontractor in
performance or awarded during the past three years, from the issue date of this RFP, which are relevant to the efforts required by this
solicitation. Relevant efforts are defined as services/efforts that are the same as or similar to the effort (as compared to NAICS code
332311) required by the RFP. Data concerning the offeror shall be provided first, followed by each proposed major subcontractor, in
alphabetical order. The Offeror shall also submit the written consent of its major subcontractors to allow the disclosure of its
subcontractors past performance information to the Offeror. This volume shall be organized into the following sections:
1. Contract Descriptions. This section shall include the following information in the following format: ______________________
(a) Contractor/Subcontractor place of performance, CAGE Code and DUNS Number. If the work was performed as a
subcontractor, also provide the name of the prime contractor and Point of Contact (POC) within the prime contractor organization (name,
and current address, email address, and telephone and fax numbers).
(b) Government contracting activity, and current address, Procuring Contracting Officer's name, e-mail
address, telephone and fax numbers.
(c) Governments technical representative/COR, and current email address, telephone and fax numbers.
(d) Government contract administration activity and the Administrative Contracting Officer's name, and
current e-mail address, telephone and fax numbers.
(e) Government contract administration activitys Pre-Award Monitors name, and current e-mail address,
telephone, and fax numbers.
(f) Contract Number and, in the case of Indefinite Delivery type contracts, GSA contracts, and Blanket
Purchase Agreements, include Delivery Order Numbers.
(g) Contract Type (specific type such as Fixed-Price (FP), Cost Reimbursement (CR), Time & Material (T&M),
etc.). In the case of Indefinite Delivery contracts, indicate specific type (Requirements, Definite Quantity, and Indefinite Quantity)
and secondary contract type (FP, CR, T&M, etc.).
(h) Awarded price/cost.
(i) Final or projected final price/cost.
(j) Original delivery schedule, including dates of start and completion of work.
(k) Final, or projected final, delivery schedule, including dates of start and completion of work.
2. Section 2 - Performance. Offerors shall provide a specific narrative explanation of each contract listed in Section 1, ________________________
Contract Description, describing the objectives achieved and detailing how the effort is relevant to the requirements of this RFP.
a. For any contracts that did not/do not meet original schedule or technical performance requirements, provide a
brief explanation of the reason(s) for the shortcomings and any corrective action(s) taken to avoid recurrence. The offerors shall list
each time the delivery schedule was revised and provide an explanation of why the revision was necessary. All Requests for Deviation
and Requests for Waiver shall be addressed with respect to causes and corrective actions. The offerors shall also provide a copy of any
Cure Notices or Show Cause Letters received on each contract listed and a description of any corrective action implemented by the
offeror or proposed subcontractor. The offerors shall indicate if any of the contracts listed were terminated and the type and reasons
for the termination.
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b. For all contracts, the offeror shall provide data on all manufacturing warranty returns. Data shall delineate
total number of warranty returns, number of Could Not Duplicate (CND), number of failures attributable to GFE component failures, and
number and nature of failures attributable to the offerors delivered product.
3. Section 3 Subcontracts. Offerors shall provide an outline of how the effort required by the solicitation will be assigned ________________________
for performance within the offerors corporate entity and among the proposed subcontractors. The information provided for the prime
offeror and each proposed major subcontractor must include the entire company name, company address, CAGE Code, DUNS Number and type of
work to be performed by citing the applicable Government PWS subparagraph number. This includes all subcontractors who will be providing
critical hardware/services or whose subcontract is for more than 10% of the total proposed price.
4. Section 4 New Corporate Entities. New corporate entities may submit data on prior contracts involving its officers and __________________________________
employees. However, in addition to the other requirements in this volume, the Offeror shall discuss in detail the role performed by such
persons in the prior contracts cited. Information should be included in the files described in the sections above.
5. Performance Risk Assessment Questionnaire. For all contracts identified in Section 1, Performance Risk Assessment __________________________________________
Questionnaires (Annex F) must be completed and submitted. The offeror shall complete Part I of the Performance Risk Assessment
Questionnaire and email the questionnaire to both the Government contracting activity and technical representative responsible for the
past/current contract. The POC's shall be instructed to electronically complete Part II of the questionnaire and email the entire
questionnaire to the Contracting Officer within seven calendar days of the release of the RFP, to grace.a.battle.civ@mail.mil. The
offeror shall also email to the Contracting Officer a list of all the POCs who were sent a questionnaire. The Government must receive
this list no later than the proposal due date. The POC List shall be submitted in MS Word for Windows Table Format to include the
following fields: Solicitation Number? Company Name? Contract Number? Government Agency? POC Last Name, First Name? POC Title? POC
Telephone Number? POC Email Address? Date Emailed to POC (month/day).
6. Submissions. Offerors are discouraged from providing points of contact with another contractors? facility, i.e., in case an ____________
offeror (or one of his/her team members) is in a subcontract with another contractor who has submitted a proposal on the same
requirement. Offerors shall provide and submit the prime contract number and all Governmental agency points of contact (POC) in lieu of
subcontract numbers or prime contract POCs in situations as described above.
iv. VOLUME IV (SOLICITATIONs, OFFER AND AWARD DOCUMENTS AND CERTIFICATIONS/REPRESENTATIONS) _______________________________________________________________________________________
Certifications and Representations - Each offeror shall complete (fill-in and signatures) the solicitation sections indicated below
using the file (without modification to the file) provided with the RFP. An authorized official of the firm shall sign the SF 33 and all
certifications requiring original signature. An Acrobat PDF file shall be created to capture the signatures for submission.
Section A Standard Form 33 (SF 33), Solicitation, Offer and Award
Section K Representations, Certifications and Other Statements of Offerors
Solicitations, Offer, Consent Form, Award Documents and Certifications/Representations shall not be addressed separately from that
submitted in VOLUME IV SOLICITATIONS, OFFER AND AWARD DOCUMENTS AND CERTIFICATIONS /REPRESENTATIONS _______________________________________________________________________________________
*** END OF NARRATIVE L0001 ***
1 52.212-1 INSTRUCTIONS TO OFFERORS--COMMERCIAL ITEMS FEB/2012
2 52.215-1 INSTRUCTIONS TO OFFERORS--COMPETITIVE JAN/2004
3 52.215-16 FACILITIES CAPITAL COST OF MONEY JUN/2003
4 252.204-7011 ALTERNATIVE LINE-ITEM STRUCTURE SEP/2011
5 252.215-7008 ONLY ONE OFFER JUN/2012
6 52.216-1 TYPE OF CONTRACT APR/1984
The Government contemplates award of a Firm Fixed Price (FFP) contract resulting from this solicitation.
(End of Provision)
7 52.233-2 SERVICE OF PROTEST SEP/2006
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(a) Protests, as defined in section 33.101 of the Federal Acquisition Regulation, that are filed directly with an agency, and copies of
any protests that are filed with the Government Accountability Office (GAO), shall be served on the Contracting Officer (addressed as
follows) by obtaining written and dated acknowledgment of receipt from Army Contracting Command - Fort Dix, Attn: ACC-NJ-IT (Grace
Battle) 5455 Alabama Avenue, Fort Dix, NJ 08640.
(b) The copy of any protest shall be received in the office designated above within one day of filing a protest with the GAO.
(End of Provision)
8 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE FEB/1998
This solicitation incorporates one or more solicitation provisions by reference, with the same force and effect as if they were given in
full text. Upon request, the Contracting Officer will make their full text available. The offeror is cautioned that the listed
provisions may include blocks that must be completed by the offeror and submitted with its quotation or offer. In lieu of submitting the
full text of those provisions, the offeror may identify the provision by paragraph identifier and provide the appropriate information
with its quotation or offer. Also, the full text of a solicitation provision may be accessed electronically at this/these address(es):
http://www.arnet.gov/far/ or http://www.acq.osd.mil/dpap/dars/index.htm or http://farsite.hill.af.mil/VFAFARa.HTM
9 52.252-5 AUTHORIZED DEVIATIONS IN PROVISIONS APR/1984
(a) The use in this solicitation of any Federal Acquisition Regulation (48 CFR Chapter 1) provision with an authorized deviation is
indicated by the addition of (DEVIATION) after the date of the provision.
(b) The use in this solicitation of any DoD FAR SUPPLEMENT (48 CFR Chapter 2) provision with an authorized deviation is indicated by the
addition of (DEVIATION) after the name of the regulation.
(End of clause)
10 52.233-4000 HQ AMC-LEVEL PROTEST PROGRAM (LS7016) OCT/2011
If you have complaints about this procurement, it is preferable that you first attempt to resolve those concerns with the responsible
contracting officer. However, you can also protest to Headquarters, AMC. The HQ, AMC-Level Protest Program is intended to encourage
interested parties to seek resolution of their concerns within AMC as an Alternative Dispute Resolution forum, rather than filing a
protest with the General Accounting Office or other external forum. Contract award or performance is suspended during the protest to the
same extent, and within the same time periods, as if filed at the GAO. The AMC protest decision goal is to resolve protests within 20
working days from filing. To be timely, protests must be filed within the periods specified in FAR 33.103.
Send protests (other than protests to the contracting officer) to:
Address:
Headquarters U.S. Army Materiel Command
Office of Command Counsel
4400 Martin Road
Rm: A6SE040.001
Redstone Arsenal, AL 35898-5000
Fax: (256) 450-8840
The AMC-level protest procedures are found at:
Web Address: http://www.amc.army.mil/pa/COMMANDCOUNSEL.asp
If Internet access is not available contact the contracting officer or HQ, AMC to obtain the AMC-Level Protest Procedures.
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11 52.242-4000 PARTNERING (LS7024) OCT/2010
(a) In an effort to most effectively accomplish the objectives of this contract, it is proposed that after contract award, the
Government, the contractor, and its major subcontractors will engage in the Partnering process.
(b) Participation in the Partnering process is entirely voluntary and is based upon a mutual commitment between Government and industry
to work cooperatively as a Team to identify and resolve problems and facilitate contract performance. The primary objective of the
process is providing the American soldier with the highest quality supplies/services on time and at a reasonable price. Partnering
requires the parties to look beyond the strict bounds of the contract in order to formulate actions that promote their common goals and
objectives. It is a relationship that is based upon open and continuous communication, mutual trust and respect, and the replacement of
the "us vs. them" mentality of the past with a "win-win" philosophy for the future. Partnering also promotes synergy, creative thinking,
pride in performance, and the creation of a shared vision for success.
(c) After contract award, the Government and the successful offeror will decide whether or not to engage in the Partnering process.
Accordingly, offerors shall not include any anticipated costs associated with the implementation of the Partnering process in their
proposed cost/price (e.g. cost of hiring a facilitator and conducting the Partnering Workshop). If the parties elect to partner, any
costs associated with that process shall be identified and agreed to after contract award.
(d) The establishment of a Partnering arrangement does not affect the legal responsibilities or relationship of the parties and cannot
be used to alter, supplement or deviate from the terms of the contract. Any changes to the contract must be executed in writing by the
(e) Implementation of this Partnering relationship will be based upon the AMC Model Partnering process, as well as the principles and
procedures set forth in the AMC Partnering Guide, which can be found on the AMC website at
http://www.amc.army.mil/army_core/command_counsel/Partnering_Link.asp.
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EVALUATION FACTORS FOR AWARD
1 52.215-4003 PARTNERING - FIXED PRICE TYPE CONTRACTS (MS7026) OCT/2010
Any decision to engage in the Partnering process will be made after contract award. Any anticipated costs associated with the
implementation of the Partnering process should not be included in the offerors proposed cost or price. Accordingly, proposed
Partnering efforts will not be evaluated or considered a factor for award, and will not be evaluated or considered for price realism
purposes.
A. BASIS FOR AWARD
The award will be made based on the best overall (i.e., best value) proposal that is determined to be the most beneficial to the
Government, with appropriate consideration given to the three evaluation factors: Technical, Price, and Past Performance. The Technical
factor is significantly more important than the Price factor. The Price Factor is more important than the Past Performance Factor. All
evaluation factors, other than the Price Factor, when combined, are significantly more important than the Price Factor. To receive
consideration for award, a rating of no less than Acceptable must be achieved for the Technical factor (to include all sub-factors).
Offerors will be cautioned that the award may not necessarily be made to the lowest price offered.
B. FACTORS AND SUB-FACTORS TO BE EVALUATED
The following evaluation factors and subfactors will be used to evaluate each proposal: Award will be made to the offeror whose proposal
is most advantageous to the Government based upon an integrated assessment of the evaluation factors and subfactors described below.
1. FACTOR I - TECHNICAL: The Technical factor is further divided into the following subfactors:
a. Shelter Structure and Design Flexibility
b. Energy Efficiency
c. Schedule
The Shelter Structure and Design Flexibility Subfactor is slightly more important than the Energy Efficiency Subfactor. The Energy
Efficiency Subfactor is more important than the Schedule Subfactor.
Evaluation of the offerors proposal shall address each subfactor as it applies to the Performance Work Statement (PWS). A detailed
explanation of the criteria for the evaluation is set forth in the Evaluation Approach, paragraph C of this section. During evaluations
of each proposal, the Government will assign each subfactor an adjectival rating and write a narrative evaluation reflecting the
identified findings.
2. FACTOR II - PRICE: The award will result in a two year IDIQ contract, with FFP delivery orders. A price analysis will be
utilized in the evaluation of this effort.
3. FACTOR III - PAST PERFORMANCE: Each offerors past performance will be reviewed to determine relevancy and confidence
assessment.
C. EVALUATION APPROACH
All proposals shall be subject to evaluation by the Source Selection Team (SST).
1. The overarching evaluation approach for all factors and subfactors is as follows:
a. Adequacy of Response. The proposal will be evaluated to determine whether the offerors methods and approach have ________________________
adequately and completely considered, defined, and satisfied the requirements specified in the solicitation. The proposal will be
evaluated to determine the extent to which each requirement of the solicitation has been addressed in the proposal in accordance with
the proposal submission section of the solicitation.
b. Feasibility of Approach. The proposal will be evaluated to determine whether the offeror's methods and approach to ___________________________
meeting the solicitation requirements provide the
Government with a high level of confidence of successful completion within the required
schedule. In the event that enhancements are proposed, the enhancements will be evaluated to determine whether the approach taken is
feasible and will result in an end product that fully meets or exceeds the RFP requirements.
2. The Technical Factor is divided into the following three subfactors. Marginal level of overall technical approach could
indicate a lack of understanding concerning mission requirements and may result in the entire proposal receiving an unfavorable rating
and/or being eliminated from the competitive range.
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Subfactor 1: This subfactor evaluates the offerors proposed Structure and Design Flexibility Approach. The evaluation will focus on the
offerors extent to which it demonstrates that the specific Government requirements are addressed and met and all critical requirements
in proposed design flexibility are in accordance with the PWS. The proposed shelters must be suitable for installation within a desert
environment with minimal site preparation and the proposal shall address relative times for set-up, disassembly, labor requirements, and
the method for repackaging and shipping that is required. Proposal should address or provide data that the shelters are capable of being
assembled, disassembled, and re-assembled at least seven times without degradation to functional use and provides a minimum useful life
of 20 years. The proposal provides acceptable drawings and specifications for both one-story and two-story shelters. The proposal must
also demonstrate techniques and use of key materials, outputs and interfaces provide shelter structures that are highly insulate, rigid
walled shelters, that are erectable and re-locatable by soldiers. The proposal must also indicate that the design minimizes tripping
hazards for the shelter entry ways.
Subfactor 2: This subfactor evaluates the offerors proposed Energy Efficiency Approach. The proposal specifically addresses aspects of
the shelters that demonstrate overall energy conservation benefits. The proposal shall provide solid data on critical resource savings
efficiencies. Proposal should demonstrate exceptional attention to energy efficiency either through design, insulation, materials,
sustainability, or conservation. The proposal must also demonstrate how the ECU can be easily installed and maintained.
Subfactor 3: This subfactor evaluates the offerors proposed Schedule. The proposal must demonstrate an acceptable timeline for
installation of shelters within eight months and shall provide a comprehensive production schedule. The proposals should address ability
to expedite timeline.
The content of the written proposals and written responses to the Technical Factor Evaluation Notices (ENs), if any, will be
evaluated to determine the degree and extent to which the requirements objectives set forth in the solicitation are satisfied.
Unsupported promises to comply with contractual requirements will not be sufficient. Proposals must contain supporting
rationale for any statements relating to proposed performance. Each proposal will be rated strictly in accordance with its written
content. No assumptions will be made by evaluators regarding areas that are not addressed in the Offerors written proposal or written
responses to Government ENs.
The Technical Factor Ratings, excerpted below focus on the strengths, deficiencies, weaknesses, risks and uncertainties of the offeror's
proposal. The color rating depicts how well the offerors proposal meets the Technical subfactor requirements. Technical subfactor
ratings will be rolled up into an overall rating for the Technical factor.
---------------------------------------------------------------------------------------------
| Color | Rating ______ | Description | ___________
|--------------------------------------------------------------------------------------------|
| Blue | Outstanding | Proposal meets requirements and indicates an exceptional |
| approach and understanding of the requirements. Strengths far |
| outweigh any weaknesses. Risk of unsuccessful performance is low|
|---------------------------------------------------------------------- ---------------------|
| Purple | Good | Proposal meets requirements and indicates a thorough approach |
| and understanding of the requirements. Proposal contains strengths|
| which outweigh any weaknesses. Risk of unsuccessful performance is|
| low
|---------------------------------------------------------------------- ---------------------|
| Green | Acceptable | Proposal meets requirements and indicates an adequate approach |
| and understanding of the requirements. Strengths and weaknesses |
| are offsetting or will have little or no impact on performance |
| Risk of unsuccesful performance is no worse than moderate. |
|---------------------------------------------------------------------- ---------------------|
| Yellow | Marginal | Proposal does not clearly meet requirements and has not |
| demonstrated an adequate approach and understanding of the |
| requirements. The proposal has one or more weaknesses which are |
| not offset by strengths. Risk of unsuccesful performance is high.|
|---------------------------------------------------------------------- ---------------------|
| Red | Unacceptable | Proposal does not meet requirements and contains one or more |
| deficiencies. Proposal is unawardable. |
|---------------------------------------------------------------------- ---------------------|
3. Price Factor.
a. Prices proposed in Section B will be evaluated for reasonableness by performing a price analysis in accordance with FAR
15.404-1(b). However, if deemed necessary by the Government, a cost analysis may be performed per FAR 15.404-1(c).
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b. The Government will evaluate price for award purposes by adding the Total Weighted Amount for CLIN 0001 and CLIN 0002.
c. The total evaluated amount for each CLIN will be the sum of the weighted amounts for each range for that CLIN.
(i) The proposed unit price within each range will be multiplied by the maximum quantity in that respective range.
(i.e. evaluated quantity).
(ii) The extended amounts will be multiplied by the weight for each range resulting in the weighted amount. The
weighted amounts will be summed and will result in the evaluated price for that CLIN. See the sample table below.
__________________________________________________________________________________________
CLIN |Ranges |Evaluated |Proposed |Extended |Weight | Weighted
| |Quantity |Unit Price|Amount | | Amount
__________________________________________________________________________________________
CLIN 0001 | 01-20 | 20 | $5,000 | $100,000 | 50% | $50,000.00
Single Story | 21-50 | 50 | $65.00 | $225,000 | 50% | $112,500.00
Shelters
__________________________________________________________________________________________
SUBTOTAL $162,500.00
__________________________________________________________________________________________
CLIN 0002 | 01-20 | 20 | $8,000 | $160,000| 15% | $24,000.00
Two Story | 21-50 | 50 | $7,500 | $375,000| 15% | $56,250.00
Shelters | 51-75 | 75 | $7,000 | $525,000| 25% | $131,250.00
| 76-100 | 100 | $6,500 | $650,000| 15% | $97,500.00
| 101-125 | 125 | $6,000 | $750,000| 15% | $112,500.00
| 126-160 | 160 | $5,500 | $880,000| 10% | $88,000.00
| 161-230 | 230 | $5,000 |$1,150,000| 05% | $57,500.00
__________________________________________________________________________________________
__________________________________________________________________________________________
Total Evaluated Price $729,500.00
__________________________________________________________________________________________
NOTE TO OFFEROR: The unit prices contained in the sample above were fabricated for demonstration purposes only and in no way reflect _______________
the unit prices the Government expects to pay.
d. If this solicitation contains the clause at FAR 52.219-4, Notice of Price Evaluation Preference for HUBZone Small
Business Concerns, the HUBZone factor set forth therein will be applied as required to the Total Evaluated Price for all ordering
periods.
e. Price Inconsistencies: A proposal is presumed to represent an Offerors best effort to respond to the solicitation. ______________________
Any inconsistency, whether real or apparent, between promised performance and price, should be explained in the proposal. Any
significant inconsistencies, if unexplained, raise a fundamental issue of the Offerors understanding of the nature and scope of work
required and his/her financial ability to perform the contract, and may be grounds for rejection of the proposal.
f. Unbalanced Pricing: The Government may determine that a proposal is unacceptable if the prices proposed are materially ___________________
unbalanced. Unbalanced pricing exists when, despite an acceptable total evaluated price, one or more contract line items is
significantly overstated or understated as indicated by the application of cost or price analysis techniques. In accordance with FAR
15.404-1(g), a proposal may be rejected if the PCO determines that the lack of balance poses an unacceptable risk to the Government.
4. Past Performance Factor. To ascertain the probability of successfully performing the required efforts of the PWS, the
Government will evaluate the offerors and each major subcontractors record of past and current performance during the past three years.
Evaluation of past performance shall be in accordance with this plan utilizing the forms and questionnaires set forth in Appendix G
a) The Government will focus its inquiries on the Offerors (and major subcontractors) record of performance as it relates
to all solicitation requirements, including cost, schedule, performance and management of subcontractors. Major
subcontractors are defined as members of an offerors overall team who are expected to perform 20% or more of the proposed
effort. A significant achievement, problem, or lack of relevant data in any element of the work can become an important
consideration in the evaluation process. Therefore, offerors will be reminded to include the most recent and relevant
efforts (within the past three years) in their proposal. Absent any recent and relevant past performance history or when
the performance record is so sparse that no meaningful confidence assessment rating can be reasonably assigned, the offeror
will be assigned an unknown confidence rating and its proposal will not be evaluated either favorably or unfavorably on
past performance. The Government may use data provided by the offeror in its proposal and data obtained from other sources,
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including data in Government files or data obtained through interviews with personnel familiar with the contractor and
their current and past performance under Federal, State or Local government or commercial contracts for same or similar
services as compared to the North American Industry Classification System (NAICS) 332311. Data used in conducting
performance risk assessments shall not extend past three years prior to the issue date of the RFP, but may include
performance data generated during the past three years without regard to the contract award date.
b) Offerors shall submit Government and/or commercial contracts for the prime offeror and each major subcontractor in
performance or awarded during the past three years, from the issue date of this RFP, which are relevant to the efforts
required by this RFP. The Government may consider a wide array of information from a variety of sources, but is not
compelled to rely on all of the information available.
c) The past performance factor considers each offeror?s demonstrated recent and relevant record of performance in supplying
products and services that meet the contract requirements. There are two aspects to the past performance evaluation:
relevancy and performance confidence assessment.
(i) RELEVANCY: The first aspect of the past performance evaluation is to assess the offeror?s past performance to _________
determine how relevant a recent effort accomplished by the offeror is to the effort to be acquired through the
source selection. Relevancy is not separately rated, however, the following criteria will be used to establish
what is relevant which shall include similarity of service/support, complexity, dollar value, contract type, and
degree of subcontract/teaming.
---------------------------------------------------------------------------------------------
| Rating ______ | Description | ___________
|--------------------------------------------------------------------------------------------|
| Very Relevant | Present/past performance involved essentially the same scope and |
| magnitude of effort and complexities this solicitation requires.|
|---------------------------------------------------------------------- ---------------------|
| Relevant | Present/past performance effort involved similar scope and |
| magnitude of effort and complexities this solicitation requires. |
|---------------------------------------------------------------------- ---------------------|
| Somewhat Relevant | Present/past performance effort involved some of the scope and |
|---------------------------------------------------------------------- ---------------------|
| Not Relevant | Proposal does not clearly meet requirements and has not |
|--------------------------------------------------------------------------------------------|
(ii) QUALITY ASSESSMENT: Assess the quality of the offerors past performance on those recent efforts that were __________________
determined relevant by determining how well the contractor performed on the contracts. Documented results from
Past Performance Questionnaires, interviews, CPARS, and other sources form the support and basis for this
assessment.
(iii) PERFORMANCE CONFIDENCE ASSESSMENT: The final step is for the team to arrive at a single consensus _________________________________
performance confidence assessment for the offeror, selecting the most appropriate rating from the chart below.
This rating considers the assessed quality of the relevant/recent efforts gathered. Ensure the rationale for the
conclusions reached are included.
---------------------------------------------------------------------------------------------
|--------------------------------------------------------------------------------------------|
| Substantial Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a high expectation that the Offeror will |
| successfully perform the required effort. |
|---------------------------------------------------------------------- ---------------------|
| Satisfactory Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a reasonable expectation that the Offeror |
| will successfully perform the required effort. |
|---------------------------------------------------------------------- ---------------------|
| Limited Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a low expectation that the Offeror will |
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|---------------------------------------------------------------------- ---------------------|
| No Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a no expectation that the Offeror will |
|--------------------------------------------------------------------------------------------|
| Unknown Confidence | No recent/relevant performance record is available or the |
| Offeror's performance record is so sparse that no meaningful |
| confidence assessment rating can be reasonably assigned. |
|--------------------------------------------------------------------------------------------|
*** END OF NARRATIVE M0001 ***
74 74
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Offeror To Complete Block 12, 17, 23, 24, & 30
1. Requisition Number Page Of
2. Contract No. 3. Award/Effective Date 4. Order Number 5. Solicitation Number 6. Solicitation Issue Date
7. For Solicitation
Information Call:
A. Name B. Telephone Number (No Collect Calls) 8. Offer Due Date/Local Time
9. Issued By Code 10. This Acquisition is
Unrestricted OR Set Aside: % For:

Small Business Women-Owned Small Business (WOSB)
Eligible Under the Women-Owned Small Business Program

Hubzone Small Business Economically Disadvantaged Women-Owned
Small Business (EDWOSB)

Service-Disabled Veteran-Owned Small Business
NAICS:

Email:
8(A)
Size Standard:
11. Delivery For FOB Destination
Unless Block Is Marked
12. Discount Terms

13a. This Contract Is A Rated Order Under DPAS (15 CFR 700) 13b. Rating
See Schedule

14. Method Of Solicitation RFQ IFB RFP
15. Deliver To Code 16. Administered By Code

Telephone No. SCD: PAS:
17a. Contractor/Offeror Code Facility 18a. Payment Will Be Made By Code

Telephone No.
17b. Check If Remittance Is Different And Put Such
Address In Offer
18b. Submit Invoices To Address Shown In Block 18a Unless Block Below Is Checked
See Addendum
19.
Item No.
20.
21.
Quantity
22.
Unit
23.
Unit Price
24.
Amount

(Use Reverse and/or Attach Additional Sheets As Necessary)
25. Accounting And Appropriation Data 26. Total Award Amount (For Govt. Use Only)

27a.Solicitation Incorporates By Reference FAR 52.212-1, 52.212-4. FAR 52.212-3 And 52.212-5 Are Attached. Addenda Are Are Not Attached.
27b.Contract/Purchase Order Incorporates By Reference FAR 52.212-4. FAR 52.212-5 Is Attached. Addenda Are Are Not Attached.
28. Contractor Is Required To Sign This Document And Return _________ 29. Award Of Contract: Ref. Offer
Copies to Issuing Office. Contractor Agrees To Furnish And Deliver All Items Set Forth
Or Otherwise Identified Above And On Any Additional Sheets Subject To The Terms
And Conditions Specified.
Dated . Your Offer On Solicitation (Block 5), Including
Any Additions Or Changes Which Are Set Forth Herein, Is Accepted As
To Items:
30a. Signature Of Offeror/Contractor 31a. United States Of America (Signature Of Contracting Officer)

30b. Name And Title Of Signer (Type Or Print) 30c. Date Signed 31b. Name Of Contracting Officer (Type Or Print) 31c. Date Signed

Authorized For Local Reproduction
Previous Edition Is Not Usable
Standard Form 1449 (Rev. 5/2011)
Prescribed By GSA-FAR (48 CFR) 53.212

W15QKN-12-R-0070 2012OCT11
ANTHONY MAURIELLO (609)562-1763
ACC-NJ-IT
ANTHONY.MAURIELLO@US.ARMY.MIL
2012NOV15 05:00pm
W15QKN
ARMY CONTRACTING COMMAND - NJ
FORT DIX, NJ 08640
X
X
100
332311
NONE
X
SEE SCHEDULE
SEE SCHEDULE
X X
X 1
1 74
19.
Item No.
20.
21.
Quantity
22.
Unit
23.
Unit Price
24.
Amount

32a. Quantity In Column 21 Has Been

Received Inspected Accepted, And Conforms To The Contract, Except As Noted: _________________________________________________

32b. Signature Of Authorized Government Representative 32c. Date 32d. Printed Name and Title of Authorized Government Representative

32e. Mailing Address of Authorized Government Representative 32f. Telephone Number of Authorized Government Representative

32g. E-Mail of Authorized Government Representative

33. Ship Number 34. Voucher Number 35. Amount Verified 36. Payment 37. Check Number
Correct For
Partial Final
Complete Partial Final

38. S/R Account No. 39. S/R Voucher Number 40. Paid By

41a. I Certify This Account Is Correct And Proper For Payment 42a. Received By (Print)
41b. Signature And Title Of Certifying Officer 41c. Date
42b. Received At (Location)

42c. Date Recd (YY/MM/DD) 42d. Total Containers

Standard Form 1449 (Rev. 5/2011) Back

CONTINUATION SHEET
PIIN/SIIN MOD/AMD
SUPPLEMENTAL INFORMATION
1) Introduction: The U.S. Army Contracting Command - New Jersey, on behalf of the U.S. Army Logistics Innovation Agency has a _____________
requirement for Single Story and Two Story energy efficient shelters to be delivered and assembled at Camp Buehring, Kuwait.
2) Contracting Strategy: The proposed strategy is to award a single Firm Fixed Price (FFP), Indefinite Delivery/Indefinite Quantity _____________________
(IDIQ) contract to the offeror that is determined to represent Best Value to the Government. The award will be a 100 percent Small
Business Set-Aside. For proposal instructions and submittal information, see Section L, entitled Specific Instructions, Conditions, and
Notices to Offerors. For the basis of award of a contract, see Section M, entitled Evaluation Factors of Award.
The award will result in a FFP, Two Year, IDIQ, Award Contract. The overall period of performance will be for two years. For purposes of
this Solicitation, 'Period of Performance' is defined as the time period by which the Government can issue Delivery Orders against the
contract. Actual deliveries may exceed two years if orders are issued toward the end of year two.
The Government reserves the right to award based on initial proposals. In accordance with FAR 52.215-1(f)(4), the Government intends to
evaluate proposals and award a contract without discussions with the offerors (except clarifications as described in FAR 15.306).
However, the Government reserves the right to conduct discussions and request proposal revisions if it is determined to be in the best
interest of the Government. If a competitive range is established, the Government may limit the number of proposals in the competitive
range to the greatest number that will permit an efficient competition among the most highly rated proposals. Award will be made to the
best overall proposal, which is determined to be the most beneficial to the Government.
3) Format of Solicitation: Clauses and provisions that are applicable to this Solicitation are located in the appropriate sections of _______________________
this Solicitation. In order to have a complete copy, interested parties need to download the entire Solicitation, inclusive of all
applicable sections, all applicable attachments, and all amendments.
Note 1: Section J Attachment 0002 labeled "Notional Sketch" is being provided as illustrative information to demonstrate notional
layouts and configuration of shelters and electrical. This configuration is not required, and is being supplied as a visual aide only.
Note 2: A site visit will be authorized during the solicitation phase of this requirement. All interested parties must respond to Grace
Battle, grace.a.battle.civ@mail.mil, in writing no later than 5:00pm EDT, 17 October 2012. The entirety of this visit will be at no cost
to the Government. All associated costs (transportation, lodging, documentation, etc.) will be solely on the Contractor. The date and
time is TBD.
Note 3: If conflict exists between this summary, and the provisions of this Solicitation, the provisions of the Solicitation govern.
Note 4: Acquisitions for Commercial Items under FAR Part 12 do not use the Uniform Contract Format (UCF). Therefore, when referencing a
UCF section, please refer to the following table for equivalence:
UCF SOLICITATION/AWARD FORMAT
Section A Supplemental Information
Section B Supplies or Services and Prices/Costs
Section C Description/Specifications/Work Statement
Section D Packaging and Marking
Section E Inspection and Acceptance
Section F Deliveries or Performance
Section H Special Contract Requirements
Section I Contract Clauses
Section J List of Attachments
Section K Representations, Certifications, and Other Statements of Offerors
Section L Instructions, Conditions, and Notices to Offerors
Section M Evaluation Factors for Award
*** END OF NARRATIVE A0001 ***
1 52.215-4006 GENERAL INFORMATION TO OFFERORS OR QUOTERS (AS6042) MAR/2012
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1. Responses must set forth full, accurate and complete information as required by this solicitation (including attachments). Fill-ins
are provided on Standard Form 18, Standard Form 33, and other solicitation documents. Examine the entire solicitation carefully. The
penalty for making false statements is prescribed in 18 U.S.C. 1001.
2. Responses must be plainly marked with the Solicitation Number and the date and local time set forth for bid opening or receipt of
proposals in the solicitation document.
3. Information regarding the timeliness of response is addressed in the provision of the solicitation entitled either Late Submission,
Modification and Withdrawal of Bid or Instructions to Offerors Competitive Acquisitions.
4. Procurement Information
This Procurement is a 100 percent Small Business Set-Aside
The applicable SIC/NAICS codes is: 332311
5. Issuing Office
ATTN: Anthony Mauriello ACC-NJ-IT, 5418 South Scott Plaza
Fort Dix, NJ 08640
ATTN: Grace Battle ACC-NJ-IT, 5418 South Scott Plaza
Fort Dix, NJ 08640
7. Point of Contact for Information:
Name: Anthony Mauriello
Title: Contract Specialist ___________________
Email: anthony.o.mauriello.civ@mail.mil
Phone: 609-562-1763
Fax: 609 562 6933
And;
Name: Grace Battle
Title: Contracting Officer ___________________
Email: grace.a.battle.civ@mail.mil
Phone: 609-562-6278
Fax: 609 562 6933
2 52.215-4004 IDENTIFICATION OF WORK PERFORMED AT A GOVERNMENT LOCATION (AS7027) OCT/2010
1. Offeror will specify in his proposal the place(s) of performance of the work.
2. Where the place(s) of performance includes, in whole or part, a Government location, installation, facility, office space, etc. the
offeror will:
a. Specify which work will be performed at a Government location and which will be performed at a contractor location.
b. Identify any Government locations, buildings, room numbers, areas etc. where that part of the work will be performed.
c. If a government location is provided under another contract, specify the contract number, PCO, COR or other Government point
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of contact, etc.
d. If any offeror personnel currently have access to a Government electronic mail account or have in their possession a
Government identification badge, specify all such persons, badge numbers, e-mail accounts, etc.
e. Specify any Government furnished equipment needed to perform the work under this solicitation such as office space, other
space, utilities, physical access, e-mail accounts, and the like on which the proposal is based.
f. Separate in the proposal any differing overhead, G&A and other applicable cost or pricing information applicable to the work
to be performed at a government location vs. contractor location.
g. If applicable, furnish a copy of any prior or current agreement for the use of such Government location(s).
3 52.215-4005 ELECTRONIC AND NON-ELECTRONIC PROPOSAL SUBMISSION REQUIREMENTS OCT/2010
(AS7038)
The purpose of this clause is to advise offerors of the transmission requirements of proposal data via electronic mail and non-
electronic mail. For detailed proposal preparation, please follow instructions as given in Solicitation Section L.
Electronic mail submission requirement: _______________________________________
Size Restriction:
There is a size restriction on electronic submission of proposals submitted to addresses at Picatinny Arsenal via e-mail; the maximum
file size that can be accommodated in the e-mail system is 15 MB.
Acceptable Format:
All material must be submitted in Microsoft Office format: the proposal must be in Word format (Windows Platform); pricing/cost
information must be in Excel format with all formulas intact (Windows Platform). Please identify the format in your transmittal.
Large files need to be compressed using the utility called WinZip (<http://www.winzip.com>). Due to the large number of infected
messages with ZIP attachments, all ZIP attachments will be blocked by ARDEC mail server. You need to rename the file extension for all
your submissions so the files will get through our mail server. You also need to provide instructions on how to convert your modified
file extensions back to their original format in the same message.
In addition, ARDEC's Internet E-mail Attachment Policy restricts distribution of the following types of e-mail attachments: *.ADE,
*.ADP, *.BAT, *.B64, *.BAS, *.BHX, *.CEO, *.CE0, *.CHM, *.CMD, *.COM, *.CPL, *.CRT, *.DBX, *.DLL, *.DOT, *.EML, *.EXE, *.HQX, *.HTA,
*.INF, *.INS, *.ISP, *.JS, *.JSE, *.LNK, *.MDE, *.MIM, *.MSC, *.MSI, *.MSP, *.NCH, *.OCX, *.PCD, *.PI, *.PIF, *.REG, *.SCR, *.SCT,
*.SHB, *.SHS, *.UU, *.UUE, *.VB, *.VBE, *.VBS, *.WSC, *.WSF, *.WSH, *.XXE, *.ZIP
If you need to send us attachments with the above mentioned file types, you will need to rename the file extension for all your
submissions, so that these files will get through our mail server. You will also need to provide detailed instructions on how to convert
your modified file extensions back to their original format.
In addition, it is required that electronic submissions are scanned with the most up-to-date virus definition, with antivirus software
of your choice. ARDEC mail server will block all messages that are infected with a virus.
Non-electronic submission requirement: ______________________________________
Any proposal that is submitted via U.S. Mail or commercial courier must be digitized on a Compact Disc (CD) or, Digital Versatile Disc/
Digital Video Disc (DVD), and labeled with the file names and format(s) (Word, Excel, etc). It is not necessary to zip material
submitted via non-electronic channel.
Special Notice to Offerors: ___________________________
Offerors are responsible for obtaining a receipt confirmation, via separate Email, with the corresponding PCO, to ensure the electronic
proposal has been received by the date/time set forth in the solicitation for receipt of offers.
4 52.224-4001 DISCLOSURE OF UNIT PRICE INFORMATION (AS7029) OCT/2010
This constitutes notification pursuant to Executive Order 12600, Pre-Disclosure Notification Procedures for Confidential Commercial
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Information (June 23, 1987), of our intention to release unit prices in response to any request under the Freedom of Information Act, 5
USC 552. Unit price is defined as the contract price per unit or item purchased. We consider any objection to be waived unless the
contracting officer is notified of your objection to such posting prior to submission of initial proposals.
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SUPPLIES OR SERVICES AND PRICES/COSTS
Contract Minimum/Maximum ________________________
The minimum contract value is $15,956,148.00. The maximum contract value is $29,429,017.00.
Pricing Matrix ______________
The offeror shall only fill in Firm Fixed Price Unit Prices for all quantity ranges for CLIN 0001AA and CLIN 0002AA. NOTE: THE OFFEROR
SHALL NOT FILL IN EXTENDED AMOUNTS. The firm fixed price unit prices shall be based on F.O.B. Destination. Submission of data in __________
accordance with the Contract Data Requirements List (CDRL), DD Form 1423, is a requirement for the contract but shall not be separately
priced. See the section pertaining to pricing in Section L and M for details. In order to be eligible for award, offerors must propose
Firm Fixed Price Unit Prices for all quantity ranges, and for all CLINS.
Note: The Government may determine that a proposal is unacceptable if the prices proposed are materially unbalanced. Unbalanced pricing
exists when, despite an acceptable total evaluated price, one or more contract line items is/are significantly overstated or understated
as indicated by the application of cost or price analysis techniques. A proposal may be rejected if the Contracting Officer determines
the lack of balance poses an unacceptable risk to the Government.
*** END OF NARRATIVE B0001 ***
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CONTINUATION SHEET
PIIN/SIIN
Page of
MOD/AMD
0001 SINGLE STORY SHELTERS $ _____________________ __________________
See Range Pricing
1 20 $
21 50 $
CLIN 0001 is for energy efficient Single Story
shelters in accordance with the attached Performanace
Work Statement dated 31 August 2012 and the terms and
SHIP TO:
HAZMAT
APO AE 09366
0002 TWO STORY SHELTERS $ __________________ __________________
See Range Pricing
1 20 $
21 50 $
51 75 $
76 100 $
101 125 $
126 160 $
161 230 $
CLIN 0002 is for energy efficient Two Story shelters
in accordance with the attached Performanace Work
Statement dated 31 August 2012 and the terms and
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Page of
MOD/AMD
SHIP TO:
HAZMAT
APO AE 09366
0003 START WORK MEETING REPORT
0003AA DATA ITEM $ ** NSP ** $ ** NSP ** __________________________ ______________ __________________
NOUN: START WORK MEETING REPORT
Start Work Meeting Report IAW requirements IAW DI-
ADMN-18250A, Exhibit A, Data Item no. A001, Sequence
no D001 and Statement of Work Paragraph 4.2.1.
See Section J, Exhibit A.
DLVR SCH PERF COMPL
0004 MONTHLY STATUS REPORT
0004AA DATA ITEM $ ** NSP ** $ ** NSP ** ______________________ ______________ __________________
NOUN: MONTHLY STATUS REPORT
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Monthly Status Report IAW requirements IAW DI-MGMT-
80368A, Exhibit B, Data Item no B001, Sequence no.
D001 and Statement of Work Paragraph 4.2.2.
See Section J, Exhibit B.
DLVR SCH PERF COMPL
0005 SHELTER GUIDE
0005AA DATA ITEM $ ** NSP ** $ ** NSP ** ______________ ______________ __________________
NOUN: SHELTER GUIDE
Shelter Guide Report IAW requirements IAW DI-TMSS-
81815, Exhibit C00l, Sequence no. D001 and Statement
of Work Paragraph 4.2.3.
See Section J, Exhibit C.
DLVR SCH PERF COMPL
0006 SHELTER SPECIFICATIONS
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0006AA DATA ITEM $ ** NSP ** $ ** NSP ** _______________________ ______________ __________________
NOUN: SHELTER SPECIFICATIONS
Shelter Specification Report IAW requirements IAW DI-
SDMP-81261, Exhibit D, Data Item no D001. Sequence
no. D001 and Statement of Work Paragraph 4.2.4.
See Section J, Exhibit D.
DLVR SCH PERF COMPL
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DESCRIPTION/SPECIFICATIONS/WORK STATEMENT
Please see Section J, Attachment 0001 entitled "Performance Work Statement (PWS).
*** END OF NARRATIVE C0001 ***
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INSPECTION AND ACCEPTANCE
1 52.246-2 INSPECTION OF SUPPLIES--FIXED-PRICE AUG/1996
2 52.246-16 RESPONSIBILITY FOR SUPPLIES APR/1984
3 52.246-4000 ACCEPTANCE (ES6901) OCT/2010
[ ] Acceptance will be at the Contractor's plant.
[x ] Acceptance will be at destination.
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DELIVERIES OR PERFORMANCE
1 52.211-17 DELIVERY OF EXCESS QUANTITIES SEP/1989
2 52.242-15 STOP-WORK ORDER AUG/1989
3 52.242-17 GOVERNMENT DELAY OF WORK APR/1984
4 52.247-34 F.O.B. DESTINATION NOV/1991
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CONTRACT ADMINISTRATION DATA
1 52.232-4004 ARMY ELECTRONIC INVOICING INSTRUCTIONS (GS6035) NOV/2011
Contractor shall submit payment request using the following method(s) as mutually agreed to by the Contractor, the Contracting Officer,
the contract administration office, and the payment office.
[ x ] Wide Area Workflow (WAWF) (see instructions below)
[ ] Web Invoicing System (WInS) (https://ecweb.dfas.mil)
[ ] American National Standards Institute (ANSI) X.12 electronic data interchange (EDI) formats
(http://www.X12.org and http://www.dfas.mil/ecedi)
[ ] Other (please specify)_______________________
DFAS POC and Phone: _________________________
WAWF is the preferred method to electronically process vendor request for payment. This application allows DOD vendors to submit and
track Invoices and Receipt/Acceptance documents electronically. Contractors electing to use WAWF shall (i) register to use WAWF at
https://wawf.eb.mil and (ii) ensure an electronic business point of contact (POC) is designated in the Central Contractor Registration
site at http://www.ccr.gov within ten (10) calendar days after award of this contract/order.
WAWF Instructions:
Questions concerning payments should be directed to the Defense Finance and Accounting Service (DFAS) ______________________ at
_________________or faxed to ___________________. Please have your purchase order/contract number ready when calling about payments.
You can easily access payment and receipt information using the DFAS web site at http://www.dfas.mil/money/vendor. Your purchase
order/contract number or invoice number will be required to inquire about the status of your payment.
The following codes and information will be required to assure successful flow of WAWF documents.
TYPE OF DOCUMENT [check as appropriate]
[ ] Commercial Item Financing
[ ] Construction Invoice (Contractor Only)
[ ] Invoice (Contractor Only)
[ ] Invoice and receiving Report (COMBO)
[ ] Invoice as 2-in-1 (Services only)
[ ] Performance Based Payment (Government Only)
[ ] Progress Payment (Government Only)
[ ] Cost Voucher (Government Only)
[ ] Receiving Report (Government Only)
[ ] Receiving Report with Unique Identification (UID) Data (Government Only) UID is a new
globally unique part identifier containing data elements used to track DOD parts through
their life cycle.
[ ] Summary Cost Voucher (Government Only)
CAGE CODE: ________________
ISSUE BY DODAAC: W15QKN
ADMIN BY DODAAC: _______________
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INSPECT BY DODAAC: ________________
ACCEPT BY DODAAC: ________________
SHIP TO DODAAC: ________________
PAYMENT OFFICE FISCAL STATION CODE: ________________
EMAIL POINTS OF CONTACT LISTING: ________________
INSPECTOR: ________________
ACCEPTOR: ________________
RECEIVING OFFICE POC: ________________
CONTRACT ADMINISTRATOR: ________________
CONTRACTING OFFICER: ________________
ADDITIONAL CONTACT: ________________
For more information contact: _____________________________
Contracting Officer ___________________
Grace Battle
ACC-NJ-IT
Fort Dix, NJ 08640
609-562-6278
Contract Specialist ___________________
Anthony Mauriello
ACC-NJ-IT
Fort Dix, NJ 08640
609-562-1763
*** END OF NARRATIVE G0001 ***
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SPECIAL CONTRACT REQUIREMENTS
1 52.242-4001 POST AWARD CONFERENCE (HS6920) OCT/2010
Post Award Conference (definition) - A first meeting of key Contractor/Government players. This conference is to assure a clear and
mutual understanding of the contract between the Government and contractor. The Post Award conference includes discussions on contract
terms, conditions and requirements, line items and sequence of events needed for successful execution of the subject contract effort.
The contractor shall host a post award conference/meeting at the contractors facility to include contractor and government contracting,
management, quality assurance and technical personnel no later than 15 calendar days after contract award. The contractor shall
participate with the government to arrange a schedule and agenda for the post award conference prior to the meeting. The contractor
shall provide the government with minutes of the post award meeting (DI-ADMN-81505 tailored).
2 52.000-4002 LEVEL 1 ANTI TERRORIST AWARENESS TRAINING REQUIREMENTS FOR CONTRACTOR OCT/2010
EMPLOYEES (HS7040)
(a) All contractor employees requiring access to any Federally-controlled facility and logical access to Federally controlled
information systems except for national security systems as defined by 44 U.S.C. 3542(b)(2), should be certified in Level 1 Anti
Terrorism Training. The training is accessible from any computer with access to the World Wide Web and is available at
https:/atlevel1.dtic.mil/at. The contractor is responsible for ensuring that the training has been satisfactorily completed and that
valid certificates of completion have been submitted to the Contracting Officers Representative (COR) with a copy furnished to the
Contracting Officer. The Certificates are valid for one year, therefore, training shall be completed every year for the duration of the
contract.
(b) The term Federally-controlled facility is defined as:
(1) Federally-owned buildings or leased space, whether for single or multi-tenant occupancy, and its grounds and approaches,
all or any portion of which is under the jurisdiction, custody or control of a department or agency;
(2) Federally-controlled commercial space shared with non-government tenants. For example, if a department or agency leased the
10th floor of a commercial building, the Directive applies to the 10th floor only;
(3) Government-owned, contractor-operated facilities, including laboratories engaged in national defense research and
production activities; and
(4) Facilities under a management and operating contract, such as for the operation, maintenance, or support of a Government-
owned or Government-controlled research, development, special production, or testing establishment.
(c) The term Federally-controlled information system means an information system (44 U.S.C. 3502(8)) used or operated by a Federal
agency, or a contractor or other organization on behalf of the agency (44 U.S.C. 3544(a)).
(d) The term "contractor employee" includes employees, agents, students or student interns, or representatives and all employees,
agents or representatives of all subcontractors and suppliers.
3 52.225-4000 ARMY MATERIEL COMMAND (AMC) ADMINISTRATIVE REQUIREMENTS FOR DEPLOYED OCT/2010
CONTRACTORS (HS7031)
(1) In order to maintain accountability of all deployed personnel in the Area of Operation (AO) the Contractor shall follow instructions
issued by the Army Materiel Command's Logistics Support Element (AMC LSE) or other Contracting Officer's designated representative to
provide, and keep current, requested data on Contractor Personnel for entry into military personnel database systems.
(2) The Contractor shall coordinate with the AMC LSE or other Contracting Officer's designated representative for logistics support, as
follows:
(i) Upon initial entry into the AO;
(ii) upon initiation of contract performance;
(iii) upon relocation of contract operations within the AO; and
(iv) upon exiting the AO.
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CONTRACT CLAUSES
1 52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS OCT/2010
2 52.203-16 PREVENTING PERSONAL CONFLICTS OF INTEREST DEC/2011
3 52.204-4 PRINTED OR COPIED DOUBLE-SIDED ON POSTCONSUMER FIBER CONTENT PAPER MAY/2011
4 52.215-8 ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT OCT/1997
5 52.215-14 INTEGRITY OF UNIT PRICES OCT/2010
6 52.222-20 WALSH-HEALEY PUBLIC CONTRACTS ACT OCT/2010
7 52.222-29 NOTIFICATION OF VISA DENIAL JUN/2003
8 52.223-5 POLLUTION PREVENTION AND RIGHT-TO-KNOW INFORMATION MAY/2011
9 52.228-3 WORKERS' COMPENSATION INSURANCE (DEFENSE BASE ACT) APR/1984
10 52.229-3 FEDERAL, STATE, AND LOCAL TAXES APR/2003
11 52.229-6 TAXES--FOREIGN FIXED-PRICE CONTRACTS JUN/2003
12 52.232-8 DISCOUNTS FOR PROMPT PAYMENT FEB/2002
13 52.232-9 LIMITATION ON WITHHOLDING OF PAYMENTS APR/1984
14 52.232-11 EXTRAS APR/1984
15 52.232-17 INTEREST OCT/2010
16 52.242-13 BANKRUPTCY JUL/1995
17 52.246-24 LIMITATION OF LIABILITY--HIGH-VALUE ITEMS FEB/1997
18 52.247-68 REPORT OF SHIPMENT (REPSHIP) FEB/2006
19 52.249-2 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) APR/2012
20 52.249-8 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) APR/1984
21 52.253-1 COMPUTER GENERATED FORMS JAN/1991
22 252.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE DEC/1991
23 252.204-7006 BILLING INSTRUCTIONS OCT/2005
24 252.204-7008 EXPORT-CONTROLLED ITEMS APR/2010
25 252.209-7004 SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE DEC/2006
GOVERNMENT OF A TERRORIST COUNTRY
26 252.223-7006 PROHIBITION ON STORAGE AND DISPOSAL OF TOXIC AND HAZARDOUS MATERIALS APR/2012
27 252.223-7008 PROHIBITION OF HEXAVALENT CHROMIUM MAY/2011
28 252.225-7004 REPORT OF INTENDED PERFORMANCE OUTSIDE THE UNITED STATES AND CANADA-- OCT/2010
SUBMISSION AFTER AWARD
29 252.225-7005 IDENTIFICATION OF EXPENDITURES IN THE UNITED STATES JUN/2005
30 252.225-7039 CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS JUN/2012
31 252.225-7041 CORRESPONDENCE IN ENGLISH JUN/1997
32 252.227-7015 TECHNICAL DATA--COMMERCIAL ITEMS DEC/2011
33 252.232-7003 ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS JUN/2012
34 252.232-7010 LEVIES ON CONTRACT PAYMENTS DEC/2006
35 252.233-7001 CHOICE OF LAW (OVERSEAS) JUN/1997
36 252.242-7005 CONTRACTOR BUSINESS SYSTEMS FEB/2012
37 252.243-7001 PRICING OF CONTRACT MODIFICATIONS DEC/1991
38 252.243-7002 REQUESTS FOR EQUITABLE ADJUSTMENT MAR/1998
39 252.244-7001 CONTRACTOR PURCHASING SYSTEM ADMINISTRATION JUN/2012
40 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR AUG/2012
EXECUTIVE ORDERS--COMMERCIAL ITEMS
(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract
by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:
(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22U.S.C. 7104(g)).
--Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).
(2) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).
(3) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Pub. L. 108-77, 108-78).
(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the contracting officer has indicated as being
incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial
items:
_x__ (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Sep 2006), with Alternate I (Oct 1995)(41 U.S.C. 253g and
10 U.S.C. 2402).
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__x_ (2) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251
note)).
___ (3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (Jun 2010) (Section 1553 of
Pub. L. 111-5). (Applies to contracts funded by the American Recovery and Reinvestment Act of 2009.)
__x_ (4) 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards (Aug 2012) (Pub. L. 109-282) (31 U.S.C. 6101
note).
___ (5) 52.204-11, American Recovery and Reinvestment Act -- Reporting Requirements (JUL 2010) (Pub. L. 111-5).
__x_ (6) 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for
Debarment (DEC 2010) (31 U.S.C. 6101 note).
__x_ (7) 52.209-9, Updates of Publicly Available Information Regarding Responsibility Matters (FEB 2012) (41 U.S.C. 2313).
__x_ (8) 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations (MAY 2012)(section 740 of Division C of Public
Law 111-117, section 743 of Division D of Public Law 111-8, and section 745 of Division D of Public Law 110-161)
___ (9) 52.219-3, Notice of Total HUBZone Set-Aside or Sole-Source Award (Nov 2011)(15 U.S.C. 657a).
___ (10) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (Jan 2011) (if the offeror elects to
waive the preference, it shall so indicate in its offer)(15 U.S.C. 657a).
___ (11) [Reserved]
_x__ (12)(i) 52.219-6, Notice of Total Small Business Set-Aside (Nov 2011) (15 U.S.C. 644).
___ (ii) Alternate I (Nov 2011) of 52.219-6.
___ (iii) Alternate II (Nov 2011) of 52.219-6.
___ (13)(i) 52.219-7, Notice of Partial Small Business Set-Aside (June 2003)(15 U.S.C. 644).
___ (14) 52.219-8, Utilization of Small Business Concerns (Jan 2011) (15 U.S.C. 637(d)(2) and (3)).
___ (15)(i) 52.219-9, Small Business Subcontracting Plan (Jan 2011)(15 U.S.C. 637 (d)(4)).
___ (iii) Alternate II (Oct 2001) of 52.219-9.
___ (iv) Alternate III (Jul 2010) of 52.219-9.
___ (16) 52.219-13, Notice of Set-Aside of Orders (NOV 2011) (15 U.S.C. 644(r)).
__x_ (17) 52.219-14, Limitations on Subcontracting (Nov 2011)(15 U.S.C. 637(a)(14)).
___ (18) 52.219-16, Liquidated Damages--Subcontracting Plan (JAN 1999) (15 U.S.C. 637(d)(4)(F)(i)).
___ (19)(i) 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns (Oct 2008)(10 U.S.C. 2323)
(if the offeror elects to waive the adjustment, it shall so indicate in its offer).
___ (ii) Alternate I (June 2003) of 52.219-23.
___ (20) 52.219-25, Small Disadvantaged Business Participation ProgramDisadvantaged Status and Reporting (Dec 2010)(Pub. L. 103-355,
section 7102, and 10 U.S.C. 2323).
___ (21) 52.219-26, Small Disadvantaged Business Participation ProgramIncentive Subcontracting (Oct 2000)(Pub. L. 103-355, section
7102, and 10 U.S.C. 2323).
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___ (22) 52.219-27, Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside (Nov 2011)(15 U.S.C. 657 f)
___ (23) 52.219-28, Post Award Small Business Program Rerepresentation (APR 2012)(15 U.S.C. 632(a)(2)).
___ (24) 52.219-29 Notice of Total Set-Aside for Economically Disadvantaged Women-Owned Small Business (EDWOSB) Concerns (Apr 2012)
(15 U.S.C. 637(m)).
___ (25) 52.219-30 Notice of Total Set-Aside for Women-Owned Small Business (WOSB) Concerns Eligible Under the WOSB Program (Apr
2012) (15 U.S.C. 637(m)).
__x_ (26) 52.222-3, Convict Labor (June 2003)(E.O. 11755).
__x_ (27) 52.222-19, Child LaborCooperation with Authorities and Remedies (Mar 2012) (E.O. 13126).
__x_ (28) 52.222-21, Prohibition of Segregated Facilities (Feb 1999).
__x_ (29) 52.222-26, Equal Opportunity (Mar 2007)(E.O. 11246).
__x_ (30) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep
2010)(38 U.S.C. 4212).
__x_ (31) 52.222-36, Affirmative Action for Workers with Disabilities (Oct 2010)(29 U.S.C. 793).
__x_ (32) 52.222-37, Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep
2010)(38 U.S.C. 4212).
__x_ (33) 52.222-40, Notification of Employee Rights Under the National Labor Relations Act (DEC 2010) (E.O. 13496).
___ (34) 52.222-54, Employment Eligibility Verification (Jul 2012). (Executive Order 12989). (Not applicable to the acquisition of
commercially available off-the-shelf items or certain other types of commercial items as prescribed in 22.1803.)
___ (35)(i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items (May 2008) (42 U.S.C.
6962(c)(3)(A)(ii)). (Not applicable to the acquisition of commercially available off-the-shelf items.)
___ (ii) Alternate I (May 2008) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)). (Not applicable to the acquisition of commercially available
off-the-shelf items.)
__x_ (36) 52.223-15, Energy Efficiency in Energy-Consuming Products (Dec 2007) (42 U.S.C. 8259b).
___ (37)(i) 52.223-16, IEEE 1680 Standard for the Environmental Assessment of Personal Computer Products (DEC 2007) (E.O. 13423).
___ (ii) Alternate I (DEC 2007) of 52.223-16.
__x_ (38) 52.223-18, Encouraging Contractor Policies to Ban Text Messaging While Driving (AUG 2011) (E.O. 13513).
___ (39) 52.225-1, Buy American Act--Supplies (Feb 2009)(41 U.S.C. 10a-10d).
___ (40)(i) 52.225-3, Buy American Act Free Trade Agreements -- Israeli Trade Act (MAY 2012) (41 U.S.C. 10a-10d, 19 U.S.C. 3301
note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, Pub. L. 108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 109-283, and 110-138).
___ (ii) Alternate I (Mar 2012) of 52.225-3.
___ (iv) Alternate III (Mar 2012) of 52.225-3.
___ (41) 52.225-5, Trade Agreements (MAY 2012) (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 note).
_x__ (42) 52.225-13, Restrictions on Certain Foreign Purchases (Jun 2008) (E.o.s, proclamations, and statutes administered by the
Office of Foreign Assets Control of the Department of the Treasury).
___ (43) 52.226-4, Notice of Disaster or Emergency Area Set-Aside (Nov 2007) (42 U.S.C. 5150).
___ (44) 52.226-5, Restrictions on Subcontracting Outside Disaster or Emergency Area (Nov 2007)(42 U.S.C. 5150).
___ (45) 52.232-29, Terms for Financing of Purchases of Commercial Items (Feb 2002)(41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
___ (46) 52.232-30, Installment Payments for Commercial Items (Oct 1995)(41 U.S.C. 255(f), 10 U.S.C. 2307(f)).
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__x_ (47) 52.232-33, Payment by Electronic Funds Transfer -- Central Contractor Registration (Oct. 2003)(31 U.S.C. 3332).
___ (48) 52.232-34, Payment by Electronic Funds Transfer -- Other Than Central Contractor Registration (May 1999)(31 U.S.C. 3332).
___ (49) 52.232-36, Payment by Third Party (FEB 2010)(31 U.S.C. 3332).
___ (50) 52.239-1, Privacy or Security Safeguards (Aug 1996)(5 U.S.C. 552a).
__x_ (51)(i) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006)(46 U.S.C. Appx 1241(b) and 10 U.S.C.
2631).
___ (ii) Alternate I (Apr 2003) of 52.247-64.
(c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to commercial services, that the Contracting
Officer has indicated as being incorporated in this contract by reference to implement provisions of law or executive orders applicable
to acquisitions of commercial items:
__x_ (1) 52.222-41, Service Contract Act of 1965, (Nov 2007)(41 U.S.C. 351, et seq.).
__x_ (2) 52.222-42, Statement of Equivalent Rates for Federal Hires (May 1989)(29 U.S.C. 206 and 41 U.S.C. 351, et seq.).
___ (3) 52.222-43, Fair Labor Standards Act and Service Contract Act -- Price Adjustment (Multiple Year and Option Contracts) (Sep
2009)(29 U.S.C.206 and 41 U.S.C. 351, et seq.).
___ (4) 52.222-44, Fair Labor Standards Act and Service Contract Act -- Price Adjustment (Sep 2009)(29 U.S.C. 206 and 41 U.S.C. 351,
et seq.).
___ (5) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of
Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.).
___ (6) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--Requirements (Feb 2009)
(41 U.S.C. 351, et seq.).
___ (7) 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations. (Mar 2009) (Pub. L. 110-247).
___ (8) 52.237-11, Accepting and Dispensing of $1 Coin (Sep 2008) (31 U.S.C. 5112(p)(1)).
________________________________________________
(d) Comptroller General Examination of Record. The Contractor shall comply with the provisions of this paragraph (d) if this contract
was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-
2, Audit and Records -- Negotiation.
(1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall have access to and
right to examine any of the Contractors directly pertinent records involving transactions related to this contract.
(2) The Contractor shall make available at its offices at all reasonable times the records, materials, and other evidence for
examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR
Subpart 4.7, Contractor Records Retention, of the other clauses of this contract. If this contract is completely or partially
terminated, the records relating to the work terminated shall be made available for 3 years after any resulting final termination
settlement. Records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating
to this contract shall be made available until such appeals, litigation, or claims are finally resolved.
(3) As used in this clause, records include books, documents, accounting procedures and practices, and other data, regardless of type
and regardless of form. This does not require the Contractor to create or maintain any record that the Contractor does not maintain in
the ordinary course of business or pursuant to a provision of law.
(e)(1) Notwithstanding the requirements of the clauses in paragraphs (a), (b), (c) and (d) of this clause, the Contractor is not
required to flow down any FAR clause, other than those in this paragraph (e)(1) in a subcontract for commercial items. Unless otherwise
indicated below, the extent of the flow down shall be as required by the clause--
(i) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251
note)).
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(ii) 52.219-8, Utilization of Small Business Concerns (Dec 2010)(15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer
further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $650,000 ($1.5 million
for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting
opportunities.
(iii) [Reserved]
(iv) 52.222-26, Equal Opportunity (Oct 2010)(E.O. 11246).
(v) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep
2010)(38 U.S.C. 4212).
(vi) 52.222-36, Affirmative Action for Workers with Disabilities (June 1998)(29 U.S.C. 793).
(viii) 52.222-41, Service Contract Act of 1965, (Nov 2007), flow down required for all subcontracts subject to the Service Contract
Act of 1965 (41 U.S.C. 351, et seq.)
___ Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).
(x) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of
Certain Equipment--Requirements (Nov 2007) (41 U.S.C. 351, et seq.)
(xi) 52.222-53, Exemption from Application of the Service Contract Act to Contracts for Certain Services--Requirements (Feb 2009)
(41 U.S.C. 351, et seq.)
(xii) 52.222-54, Employment Eligibility Verification (Jul 2012).
(xiii) 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations. (Mar 2009) (Pub. L. 110-247). Flow down required in
accordance with paragraph (e) of FAR clause 52.226-6.
(xiv) 52.247-64, Preference for Privately-Owned U.S. Flag Commercial Vessels (Feb 2006)(46 U.S.C. Appx 1241(b) and 10 U.S.C. 2631).
Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.
(2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of additional clauses
necessary to satisfy its contractual obligations.
(End of Clause)
41 52.216-19 ORDER LIMITATIONS OCT/1995
(a) Minimum order. When the Government requires supplies or services covered by this contract in an amount of less than 1, the
Government is not obligated to purchase, nor is the Contractor obligated to furnish, those supplies or services under the contract.
(b) Maximum order. The Contractor is not obligated to honor --
(1) Any order for a single item in excess of 280;
(2) Any order for a combination of items in excess of 280; or
(3) A series of orders from the same ordering office within 30 days that together call for quantities exceeding the limitation in
subparagraph (b)(1) or (2) of this section.
(c) If this is a requirements contract (i.e., includes the Requirements clause at subsection 52.216-21 of the Federal Acquisition
Regulation (FAR)), the Government is not required to order a part of any one requirement from the Contractor if that requirement
exceeds the maximum-order limitations in paragraph (b) of this section.
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(d) Notwithstanding paragraphs (b) and (c) of this section, the Contractor shall honor any order exceeding the maximum order
limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within -5- days after issuance, with
written notice stating the Contractors intent not to ship the item (or items) called for and the reasons. Upon receiving this notice,
the Government may acquire the supplies or services from another source.
(End of Clause)
42 52.216-22 INDEFINITE QUANTITY OCT/1995
(a) This is an indefinite-quantity contract for the supplies or services specified, and effective for the period stated, in the
Schedule. The quantities of supplies and services specified in the Schedule are estimates only and are not purchased by this contract.
(b) Delivery or performance shall be made only as authorized by orders issued in accordance with the Ordering clause. The Contractor
shall furnish to the Government, when and if ordered, the supplies or services specified in the Schedule up to and including the
quantity designated in the Schedule as the maximum. The Government shall order at least the quantity of supplies or services designated
in the Schedule as the minimum.
(c) Except for any limitations on quantities in the Order Limitations clause or in the Schedule, there is no limit on the number of
orders that may be issued. The Government may issue orders requiring delivery to multiple destinations or performance at multiple
locations.
(d) Any order issued during the effective period of this contract and not completed within that period shall be completed by the
Contractor within the time specified in the order. The contract shall govern the Contractor's and Government's rights and obligations
with respect to that order to the same extent as if the order were completed during the contracts effective period; provided, that the
Contractor shall not be required to make any deliveries under this contract after Eight months.
(End of Clause)
43 52.225-19 CONTRACTOR PERSONNEL IN A DESIGNATED OPERATIONAL AREA OR SUPPORTING A MAR/2008
DIPLOMATIC OR CONSULAR MISSION OUTSIDE THE UNITED STATES
Chief of mission means the principal officer in charge of a diplomatic mission of the United States or of a United States office
the Foreign Service Act of 1980 (Pub. L. 96-465) to be temporarily in charge of such a mission or office.
Combatant commander means the commander of a unified or specified combatant command established in accordance with 10 U.S.C. 161.
Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the
Supporting a diplomatic or consular mission means performing outside the United States under a contract administered by Federal agency
personnel who are subject to the direction of a chief of mission.
(b) General.
(1) This clause applies when Contractor personnel are required to perform outside the United States--
(i) In a designated operational area during
(A) Contingency operations;
(B) Humanitarian or peacekeeping operations; or
(C) Other military operations; or military exercises, when designated by the Combatant Commander; or
(ii) When supporting a diplomatic or consular mission--
(A) That has been designated by the Department of State as a danger pay post (see http://aoprals.state.gov/Web920/danger--pay--
all.asp); or
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(B) That the Contracting Officer has indicated is subject to this clause.
Contractor accepts the risks associated with required contract
performance in such operations.
(i) Except as provided in paragraph (b)(3)(ii) of this clause, and in accordance with paragraph (i)(3) of this clause, Contractor
personnel are only authorized to use deadly force in self-defense.
appears necessary to execute their security mission to protect assets/ persons, consistent with the terms and conditions contained in
the contract or with their job description and terms of employment.
for Contractor personnel engaged in this contract.
(d) Compliance with laws and regulations. The Contractor shall comply with, and shall ensure that its personnel in the designated
operational area or supporting the diplomatic or consular mission are familiar with and comply with, all applicable--
(4) Force protection, security, health, or safety orders, directives, and instructions issued by the Chief of Mission or the Combatant
Commander; however, only the Contracting Officer is authorized to modify the terms and conditions of the contract.
forth in the statement of work, or elsewhere in the contract.
(2) Before Contractor personnel depart from the United States or a third country, and before Contractor personnel residing in the host
country begin contract performance in the designated operational area or supporting the diplomatic or consular mission, the Contractor
shall ensure the following:
(iii) All personnel have all necessary passports, visas, entry permits, and other documents required for Contractor personnel to
(iv) All personnel have received--
(A) A country clearance or special area clearance, if required by the chief of mission; and
(B) Theater clearance, if required by the Combatant Commander.
(v) All personnel have received personal security training. The training must at a minimum--
(vi) All personnel have received isolated personnel training, if specified in the contract. Isolated personnel are military or
civilian personnel separated from their unit or organization in an environment requiring them to survive, evade, or escape while
awaiting rescue or recovery.
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(vii) All personnel who are U.S. citizens are registered with the U.S. Embassy or Consulate with jurisdiction over the area of
operations on-line at http://www.travel.state.gov.
(3) The Contractor shall notify all personnel who are not a host country national or ordinarily resident in the host country that--
(i) If this contract is with the Department of Defense, or the contract relates to supporting the mission of the Department of
Defense outside the United States, such employees, and dependents residing with such employees, who engage in conduct outside the United
States that would constitute an offense punishable by imprisonment for more than one year if the conduct had been engaged in within the
special maritime and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the
United States (see the Military Extraterritorial Jurisdiction Act of 2000 (18 U.S.C. 3261 et seq.);
constitute a war crime when committed by a civilian national of the United States; and
consular, military or other United States Government missions outside the United States (18 U.S.C. 7(9)).
perform in the designated operational area or supporting the diplomatic or consular mission to--
Officer;
(g) Personnel data. (1) Unless personnel data requirements are otherwise specified in the contract, the Contractor shall establish and
maintain with the designated Government official a current list of all Contractor personnel in the areas of performance. The Contracting
Officer will inform the Contractor of the Government official designated to receive this data and the appropriate system to use for this
effort.
(2) The Contractor shall ensure that all employees on this list have a current record of emergency data, for notification of next of
kin, on file with both the Contractor and the designated Government official.
(h) Contractor personnel. The Contracting Officer may direct the Contractor, at its own expense, to remove and replace any Contractor
personnel who fail to comply with or violate applicable requirements of this contract. Such action may be taken at the Government's
(i) Weapons.
(1) If the Contracting Officer, subject to the approval of the Combatant Commander or the Chief of Mission, authorizes the carrying of
weapons--
employees; or
requested.
(A) Safely;
(B) With full understanding of, and adherence to, the rules of the use of force issued by the Combatant Commander or the Chief of
Mission; and
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(iii) Adhere to all guidance and orders issued by the Combatant Commander or the Chief of Mission regarding possession, use, safety,
and accountability of weapons and ammunition.
(4) Upon revocation by the Contracting Officer of the Contractor's authorization to possess weapons, the Contractor shall ensure that
(1) Contractor personnel are prohibited from wearing military clothing unless specifically authorized by the Combatant Commander. If
authorized to wear military clothing, Contractor personnel must wear distinctive patches, armbands, nametags, or headgear, in order to
(2) Contractor personnel may wear specific items required for safety and security, such as ballistic, nuclear, biological, or
chemical protective equipment.
(l) Evacuation.
(1) If the Chief of Mission or Combatant Commander orders a mandatory evacuation of some or all personnel, the Government will provide
to United States and third country national Contractor personnel the level of assistance provided to private United States citizens.
(m) Personnel recovery.
(1) In the case of isolated, missing, detained, captured or abducted Contractor personnel, the Government will assist in personnel
recovery actions.
(2) Personnel recovery may occur through military action, action by non-governmental organizations, other Government-approved action,
diplomatic initiatives, or through any combination of these options.
(3) The Department of Defense has primary responsibility for recovering DoD contract service employees and, when requested, will
provide personnel recovery support to other agencies in accordance
with DoD Directive 2310.2, Personnel Recovery.
(n) Notification and return of personal effects.
(1) The Contractor shall be responsible for notification of the employee-designated next of kin, and notification as soon as possible
to the U.S. Consul responsible for the area in which the event procured, if the employee--
(i) Dies;
(2) The Contractor shall also be responsible for the return of all personal effects of deceased or missing Contractor personnel, if
(o) Mortuary affairs. Mortuary affairs for Contractor personnel who die in the area of performance will be handled as follows:
(1) If this contract was awarded by DoD, the remains of Contractor personnel will be handled in accordance with DoD Directive 1300.22,
Mortuary Affairs Policy.
(2)(i) If this contract was awarded by an agency other than DoD, the Contractor is responsible for the return of the remains of
Contractor personnel from the point of identification of the remains to the location specified by the employee or next of kin, as
applicable, except as provided in paragraph (o)(2)(ii) of this clause.
(ii) In accordance with 10 U.S.C. 1486, the Department of Defense may provide, on a reimbursable basis, mortuary support for the
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disposition of remains and personal effects of all U.S. citizens upon the request of the Department of State.
(q) Subcontracts. The Contractor shall incorporate the substance of this clause, including this paragraph (q), in all subcontracts that
require subcontractor personnel to perform outside the United States
(1) In a designated operational area during--
(iii) Other military operations; or military exercises, when designated by the Combatant Commander; or
(2) When supporting a diplomatic or consular mission--
(i) That has been designated by the Department of State as a danger pay post (see http://aoprals.state.gov/Web920/danger--pay--
all.asp); or
(ii) That the Contracting Officer has indicated is subject to this clause.
(End of clause)
44 KSCR1-8 (C3) CONTRACT DELIVERY, TRANSPORTATION AND CUSTOMS REQUIREMENTS AUG/2010
(a) CONTRACTOR DELIVERY LOCATION: APO AE 09330
(b) POINT OF CONTACT RESPONSIBLE FOR INSPECTION AND ACCEPTANCE:
PHONE NO: DSN: 318-438-2126, Cell: 9720-6334
(c) FINAL DELIVERY DESTINATION: Base Support Battalion - North, Camp Buehring, Kuwait, APO AE 09330
(d) POINT OF CONTACT AT FINAL DESTINATION:
PHONE NO. DSN: 318-438-2126, Cell: 9720-6334
(e) SHIPPING METHOD: Shipments arriving by express couriers DHL, FedEx, or UPS are processed using AK 302-1 Form, prepared by the
express courier and given to the customer for signature. The signed form is then brought to the HNAC office for clearance through the
KGAC. No AWB is required, only the signed AK form.
(f) KUWAIT CUSTOMS CLEARANCE: Required to ensure smooth transfer of goods between the U.S. Army in Kuwait and the General Administration
of Customs (KGAC) of the State of Kuwait under the Defense Cooperation Agreement (DCA). Customs procedures will address import and
export of all cargo to and from the U.S. Army, Navy, Air Force and Marines by Air, Land or Sea.
CUSTOMS POINT OF CONTACTS:
DHA Customs Office
Bldg 216 room 104
Camp Arifjan-Kuwait
Office: DSN 011-965-2-389-2417 or 5978
(g) Custom Exempt Contract: The Contractor shall furnish to the Contracting Officer, just prior to completion of this contract, a
consolidated inventory of all excess supplies, materials, and equipment imported duty free for use under this contract. The Contractor
shall either pay required duties on the excesses, re-export the excesses, or the excesses shall become the property of the Government.
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(h) Contractor Transportation: All materials and equipment which are not to be incorporated into the project, such as office trailers,
cranes, metal forms, etc., may be shipped free of duty, if the following actions are taken:
(1) Shipments of Materials: All shipments of materials into the country for use in performance of work under this contract and
supplies or services necessary for support of the Contractor's personnel shall be addressed to the shipping address furnished to the
Contractor by the Contracting Officer. Address will be furnished upon request by the Contractor.
(2) Contractor's Responsibilities: The Contractor shall be responsible for all customs clearance actions. All necessary arrangements,
clearance procedures, and coordination with the Host Government customs, will be the sole responsibility of the Contractor. The
Contractor shall submit to the Contracting Officer, with a cover letter, information copies of the shipping documents for the
shipment(s) involved. As a minimum, the following shall be included as enclosures, with the cover letter to the Contracting Officer in
three (3) copies:
(i) Invoice. (Include a copy in Arabic)
(ii) Bill of Lading.
(iii)Certificate of Origin.
(iv) Statement on the cover letter as to Port of Customs Clearance, estimated arrival date, general description of the shipment,
quantity and the name of the carrier.
(v) Serial number or model number of shipment items.
(3) Physical Handling of Materials: The Contractor shall be responsible for performance of all loading, unloading, transportation or
other physical handling of materials as may be required, including all movement from carrier unloading site to delivery at the job site
and all movement required at the customs area.
(End of Clause)
45 KSCR1-11 (C3) GOVERNMENT FURNISHED CONTRACTOR SUPPORT NOV/2010
The following is a summary of the type of support the Government will provide the contractor, on an as-available basis. In the event of
any discrepancy between this summary and the description of services in the Statement of Work, this clause will take precedence.
U.S. Citizens Accompanying the Force
__x_ MWR ___Transportation
___ Telephone Service ___ Keys to GFE
__x_ Utilities ___ Technical Training
___ None ___ All
Third-Country National (TCN) Employees
__x_ MWR ___ Transportation
___ None ___ All
Local National (LN) Employees
___ APO/FPO/MPO/Postal Services ___ DFACs(Access Only Contractors Must Pay For Meals)
___ MWR ___ Transportation
___ Resuscitative Care ___ Mil Issue Equip
___ Controlled Access Card (CAC)/ID Card ___ Military Banking (Finance/Eagle Cash)
___ Dependents Authorized ___ Military Exchange
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___ None ___ All
NOTES: Government Furnished Contractor Support, Continued.
(1) Billeting. As a general rule, billeting is not available for contractors in Kuwait. On an exception basis, contractors may be
permitted Government Billeting if a critical need by the Government exists and approval is granted by the Base Commander as recommended
by the Base Mayor's Cell.
*PLEASE NOTE: FOR THIS REQUIREMENT, BILLETING IS AUTHORIZED IAW COMMANDER MEMO DATED 12 SEPTEMBER 2012. ______________________________________________________________________________________________________
(2) Fuel. There are no government provided fuel services in Kuwait. Contractors must obtain these services from the local community.
(3) Dining facilities (DFAC's) are available and authorized for contractor use. Contractor employees choosing to consume their meals at
the DFACs shall be required to pay the established meal rates for all meals consumed.
(4) Medical Services: The USG will furnish emergency medical and rescue services in the case of life threatening injury to Contractor
personnel IAW the terms and conditions of the contract.
(5) Contractor use of Army Post Office (APO): In accordance with DoD Postal Manual 4526.6-M, contractors providing goods and services
in support of DoD activities may be authorized use of the Military Postal Service. The Contractor is authorized the use of postal
services provided by the APO within the ASG-KU AOR for contract-related activities only. This authority extends to the Contractor's U.S.
citizen employees and sponsored family members for personal mail usage. Postal support is limited to the country of Kuwait. This
authority flows down to subcontractors that are U.S.-owned and controlled companies and support the same mission as the prime
contractor.
(6) Trash Removal: The contractor shall obey all Kuwait and U.S. laws regarding secondary containment, environmental training, and
proper disposal of HAZMAT, debris, or refuse from the installation. The contractor shall dump waste in a Kuwait Government approved
site and comply with Kuwait environmental laws.
(End of Clause)
46 252.225-7040 CONTRACTOR PERSONNEL AUTHORIZED TO ACCOMPANY U.S. ARMED FORCES JUN/2011
DEPLOYED OUTSIDE THE UNITED STATES
"Combatant Commander" means the commander of a unified or specified combatant command established in accordance with 10 U.S.C. 161.
"Designated operational area" means a geographic area designated by the combatant commander or subordinate joint force commander for the
"Law of war" means that part of international law that regulates the conduct of armed hostilities. The law of war encompasses all
international law for the conduct of hostilities binding on the United States or its individual citizens, including treaties and
international agreements to which the United States is a party, and applicable customary international law.
"Subordinate joint force commander" means a sub-unified commander or joint task force commander.
(b) General.
(1) This clause applies when Contractor personnel are authorized to accompany U.S. Armed Forces deployed outside the United States in
(iii) Other military operations or military exercises, when designated by the Combatant Commander.
(2) Contract performance in support of U.S. Armed Forces deployed outside the United States may require work in dangerous or austere
conditions. Except as otherwise provided in the contract, the Contractor accepts the risks associated with required contract performance
in such operations.
(3) Contractor personnel are civilians accompanying the U.S. Armed Forces.
(i) Except as provided in paragraph (b)(3)(ii) of this clause, Contractor personnel are only authorized to use deadly force in self-
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defense.
(ii) Contractor personnel performing security functions are also authorized to use deadly force when such force reasonably appears
necessary to execute their security mission to protect assets/persons, consistent with the terms and conditions contained in their
(iii) Unless immune from host nation jurisdiction by virtue of an international agreement or international law, inappropriate use of
force by contractor personnel authorized to accompany the U.S. Armed Forces can subject such personnel to United States or host nation
prosecution and civil liability (see paragraphs (d) and (j)(3) of this clause).
(c) Support.
(1)(i) The Combatant Commander will develop a security plan for protection of Contractor personnel in locations where there is not
sufficient or legitimate civil authority, when the Combatant Commander decides it is in the interests of the Government to provide
security because
(A) The Contractor cannot obtain effective security services;
(B) Effective security services are unavailable at a reasonable cost; or
(C) Threat conditions necessitate security through military means.
(ii) The Contracting Officer shall include in the contract the level of protection to be provided to Contractor personnel.
(iii) In appropriate cases, the Combatant Commander may provide security through military means, commensurate with the level of
security provided DoD civilians.
(2)(i) Generally, all Contractor personnel authorized to accompany the U.S. Armed Forces in the designated operational area are
authorized to receive resuscitative care, stabilization, hospitalization at level III military treatment facilities, and assistance with
patient movement in emergencies where loss of life, limb, or eyesight could occur. Hospitalization will be limited to stabilization and
short-term medical treatment with an emphasis on return to duty or placement in the patient movement system.
(ii) When the Government provides medical treatment or transportation of Contractor personnel to a selected civilian facility, the
Contractor shall ensure that the Government is reimbursed for any costs associated with such treatment or transportation.
(iii) Medical or dental care beyond this standard is not authorized unless specified elsewhere in this contract.
(3) Unless specified elsewhere in this contract, the Contractor is responsible for all other support required for its personnel
engaged in the designated operational area under this contract.
(4) Contractor personnel must have a Synchronized Predeployment and Operational Tracker (SPOT)-generated letter of authorization
signed by the Contracting Officer in order to process through a deployment center or to travel to, from, or within the designated
operational area. The letter of authorization also will identify any additional authorizations, privileges, or Government support that
Contractor personnel are entitled to under this contract.
(d) Compliance with laws and regulations.
(1) The Contractor shall comply with, and shall ensure that its personnel authorized to accompany U.S. Armed Forces deployed outside
the United States as specified in paragraph (b)(1) of this clause are familiar with and comply with, all applicable
(i) United States, host country, and third country national laws;
(ii) Provisions of the law of war, as well as any other applicable treaties and international agreements;
(iii) United States regulations, directives, instructions, policies, and procedures; and
(iv) Orders, directives, and instructions issued by the Combatant Commander, including those relating to force protection, security,
health, safety, or relations and interaction with local nationals.
(2) The Contractor shall institute and implement an effective program to prevent violations of the law of war by its employees and
subcontractors, including law of war training in accordance with paragraph (e)(1)(vii) of this clause.
(3) The Contractor shall ensure that contractor employees accompanying U.S. Armed Forces are aware--
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(i) Of the DoD definition of "sexual assault" in DoDD 6495.01, Sexual Assault Prevention and Response Program;
(ii) That many of the offenses addressed by the definition are covered under the Uniform Code of Military Justice (see paragraph
(e)(2)(iv) of this clause); and
(iii) That the offenses not covered by the Uniform Code of Military Justice may nevertheless have consequences to the contractor
employees (see paragraph (h)(1) of this clause).
(e) Pre-deployment requirements.
(1) The Contractor shall ensure that the following requirements are met prior to deploying personnel authorized to accompany U.S.
Armed Forces. Specific requirements for each category may be specified in the statement of work or elsewhere in the contract.
(ii) All deploying personnel meet the minimum medical screening requirements and have received all required immunizations as
specified in the contract. The Government will provide, at no cost to the Contractor, any theater-specific immunizations and/or
medications not available to the general public.
(iii) Deploying personnel have all necessary passports, visas, and other documents required to enter and exit a designated
operational area and have a Geneva Conventions identification card, or other appropriate DoD identity credential, from the deployment
center. Any Common Access Card issued to deploying personnel shall contain the access permissions allowed by the letter of authorization
issued in accordance with paragraph (c)(4) of this clause.
(iv) Special area, country, and theater clearance is obtained for personnel. Clearance requirements are in DoD Directive 4500.54,
Official Temporary Duty Abroad, and DoD 4500.54-G, DoD Foreign Clearance Guide. Contractor personnel are considered non-DoD personnel
traveling under DoD sponsorship.
(v) All personnel have received personal security training. At a minimum, the training shall
(vi) All personnel have received isolated personnel training, if specified in the contract, in accordance with DoD Instruction
1300.23, Isolated Personnel Training for DoD Civilian and Contractors.
(vii) Personnel have received law of war training as follows:
(A) Basic training is required for all Contractor personnel authorized to accompany U.S. Armed Forces deployed outside the United
States. The basic training will be provided through
(1) A military-run training center; or
(2) A web-based source, if specified in the contract or approved by the Contracting Officer.
(B) Advanced training, commensurate with their duties and responsibilities, may be required for some Contractor personnel as
specified in the contract.
(2) The Contractor shall notify all personnel who are not a host country national, or who are not ordinarily resident in the host
country, that
and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the United States in
accordance with the Military Extraterritorial Jurisdiction Act of 2000 (18 U.S.C. 3621, et seq.);
(ii) Pursuant to the War Crimes Act (18 U.S.C. 2441), Federal criminal jurisdiction also extends to conduct that is determined to
constitute a war crime when committed by a civilian national of the United States;
(iii) Other laws may provide for prosecution of U.S. nationals who commit offenses on the premises of U.S. diplomatic, consular,
military or other U.S. Government missions outside the United States (18 U.S.C. 7(9)); and
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(iv) In time of declared war or a contingency operation, Contractor personnel authorized to accompany U.S. Armed Forces in the field
are subject to the jurisdiction of the Uniform Code of Military Justice under 10 U.S.C. 802(a)(10).
(f) Processing and departure points. Deployed Contractor personnel shall
(1) Process through the deployment center designated in the contract, or as otherwise directed by the Contracting Officer, prior to
deploying. The deployment center will conduct deployment processing to ensure visibility and accountability of Contractor personnel and
to ensure that all deployment requirements are met, including the requirements specified in paragraph (e)(1) of this clause;
(2) Use the point of departure and transportation mode directed by the Contracting Officer; and
(3) Process through a Joint Reception Center (JRC) upon arrival at the deployed location. The JRC will validate personnel
accountability, ensure that specific designated operational area entrance requirements are met, and brief Contractor personnel on
theater-specific policies and procedures.
(g) Personnel data.
(1) The Contractor shall enter before deployment and maintain data for all Contractor personnel that are authorized to accompany U.S.
Armed Forces deployed outside the United States as specified in paragraph (b)(1) of this clause. The Contractor shall use the
Synchronized Predeployment and Operational Tracker (SPOT) web-based system, at http://www.dod.mil/bta/products/spot.html, to enter and
maintain the data.
(2) The Contractor shall ensure that all employees in the database have a current DD Form 93, Record of Emergency Data Card, on file
with both the Contractor and the designated Government official. The Contracting Officer will inform the Contractor of the Government
official designated to receive this data card.
(h) Contractor personnel.
(1) The Contracting Officer may direct the Contractor, at its own expense, to remove and replace any Contractor personnel who
jeopardize or interfere with mission accomplishment or who fail to comply with or violate applicable requirements of this contract. Such
action may be taken at the Governments discretion without prejudice to its rights under any other provision of this contract, including
the Termination for Default clause.
(2) The Contractor shall have a plan on file showing how the Contractor would replace employees who are unavailable for deployment or
who need to be replaced during deployment. The Contractor shall keep this plan current and shall provide a copy to the Contracting
Officer upon request. The plan shall
(i) Identify all personnel who are subject to military mobilization;
(ii) Detail how the position would be filled if the individual were mobilized; and
(iii) Identify all personnel who occupy a position that the Contracting Officer has designated as mission essential.
(3) Contractor personnel shall report to the Combatant Commander or a designee, or through other channels such as the military police,
a judge advocate, or an inspector general, any suspected or alleged conduct for which there is credible information that such conduct
(i) Constitutes violation of the law of war; or
(ii) Occurred during any other military operations and would constitute a violation of the law of war if it occurred during an armed
conflict.
(i) Military clothing and protective equipment.
(1) Contractor personnel are prohibited from wearing military clothing unless specifically authorized in writing by the Combatant
Commander. If authorized to wear military clothing, Contractor personnel must
(i) Wear distinctive patches, arm bands, nametags, or headgear, in order to be distinguishable from military personnel, consistent
with force protection measures; and
(ii) Carry the written authorization with them at all times.
(2) Contractor personnel may wear military-unique organizational clothing and individual equipment (OCIE) required for safety and
security, such as ballistic, nuclear, biological, or chemical protective equipment.
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(3) The deployment center, or the Combatant Commander, shall issue OCIE and shall provide training, if necessary, to ensure the safety
and security of Contractor personnel.
(4) The Contractor shall ensure that all issued OCIE is returned to the point of issue, unless otherwise directed by the Contracting
Officer.
(j) Weapons.
(1) If the Contractor requests that its personnel performing in the designated operational area be authorized to carry weapons, the
request shall be made through the Contracting Officer to the Combatant Commander, in accordance with DoD Instruction 3020.41, paragraph
6.3.4.1 or, if the contract is for security services, paragraph 6.3.5.3. The Combatant Commander will determine whether to authorize in-
theater Contractor personnel to carry weapons and what weapons and ammunition will be allowed.
(2) If the Contracting Officer, subject to the approval of the Combatant Commander, authorizes the carrying of weapons
(i) The Contracting Officer may authorize the Contractor to issue Contractor-owned weapons and ammunition to specified employees; or
(3) The Contractor shall ensure that its personnel who are authorized to carry weapons
(i) Are adequately trained to carry and use them
(A) Safely;
(B) With full understanding of, and adherence to, the rules of the use of force issued by the Combatant Commander; and
(iii) Adhere to all guidance and orders issued by the Combatant Commander regarding possession, use, safety, and accountability of
(5) Upon redeployment or revocation by the Combatant Commander of the Contractors authorization to issue firearms, the Contractor
shall ensure that all Government-issued weapons and unexpended ammunition are returned as directed by the Contracting Officer.
(k) Vehicle or equipment licenses. Contractor personnel shall possess the required licenses to operate all vehicles or equipment
necessary to perform the contract in the designated operational area.
(l) Purchase of scarce goods and services. If the Combatant Commander has established an organization for the designated operational
area whose function is to determine that certain items are scarce goods or services, the Contractor shall coordinate with that
organization local purchases of goods and services designated as scarce, in accordance with instructions provided by the Contracting
Officer.
(m) Evacuation.
(1) If the Combatant Commander orders a mandatory evacuation of some or all personnel, the Government will provide assistance, to the
extent available, to United States and third country national Contractor personnel.
(2) In the event of a non-mandatory evacuation order, unless authorized in writing by the Contracting Officer, the Contractor shall
maintain personnel on location sufficient to meet obligations under this contract.
(n) Next of kin notification and personnel recovery.
(1) The Contractor shall be responsible for notification of the employee-designated next of kin in the event an employee dies,
requires evacuation due to an injury, or is isolated, missing, detained, captured, or abducted.
(2) In the case of isolated, missing, detained, captured, or abducted Contractor personnel, the Government will assist in personnel
recovery actions in accordance with DoD Directive DoD Directive 3002.01E, Personnel Recovery in the Department of Defense.
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(o) Mortuary affairs. Mortuary affairs for Contractor personnel who die while accompanying the U.S. Armed Forces will be handled in
accordance with DoD Directive 1300.22, Mortuary Affairs Policy.
time, by written order identified as a change order, make changes in the place of performance or Government-furnished facilities,
equipment, material, services, or site. Any change order issued in accordance with this paragraph (p) shall be subject to the provisions
of the Changes clause of this contract.
(q) Subcontracts. The Contractor shall incorporate the substance of this clause, including this paragraph (q), in all subcontracts when
subcontractor personnel are authorized to accompany U.S. Armed Forces deployed outside the United States in
(1) Contingency operations;
(2) Humanitarian or peacekeeping operations; or
(3) Other military operations or military exercises, when designated by the Combatant Commander.
(End of clause)
47 252.225-7043 ANTITERRORISM/FORCE PROTECTION POLICY FOR DEFENSE CONTRACTORS OUTSIDE MAR/2006
THE UNITED STATES
(a) Definition. United States, as used in this clause, means, the 50 States, the District of Columbia, and outlying areas.
(b) Except as provided in paragraph (c) of this clause, the Contractor and its subcontractors, if performing or traveling outside the
United States under this contract, shall
(1) Affiliate with the Overseas Security Advisory Council, if the Contractor or subcontractor is a U.S. entity;
(2) Ensure that Contractor and subcontractor personnel who are U.S. nationals and are in-country on a non-transitory basis, register
with the U.S. Embassy, and that Contractor and subcontractor personnel who are third country nationals comply with any security related
requirements of the Embassy of their nationality;
(3) Provide, to Contractor and subcontractor personnel, antiterrorism/force protection awareness information commensurate with that
which the Department of Defense (DoD) provides to its military and civilian personnel and their families, to the extent such information
can be made available prior to travel outside the United States; and
(4) Obtain and comply with the most current antiterrorism/force protection guidance for Contractor and subcontractor personnel.
(c) The requirements of this clause do not apply to any subcontractor that is:
(1) A foreign government;
(2) A representative of a foreign government; or
(3) A foreign corporation wholly owned by a foreign government.
(d) Information and guidance pertaining to DoD antiterrorism/force protection can be obtained from -1-.
(End of clause)
48 252.225-7995 CONTRACTOR PERSONNEL PERFORMING IN THE UNITED STATES CENTRAL COMMAND APR/2011
AREA OF RESPONSIBILITY (DEVIATION 2011-O0004)
(a) Definition. As used in this clause--
"Chief of mission means the principal officer in charge of a Diplomatic mission of the United States or of a United States office
the Foreign Service Act of 1980 (Public Law 96-465) to be temporarily in charge of such a mission or office.
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(b) General. (1) This clause applies when contractor personnel are required to perform in the United States Central Command (USCENTCOM)
Area of Responsibility (AOR) and are not covered by the clause at DFARS 252.225-7040, Contractor Personnel Authorized to Accompany U.S.
Armed Forces Deployed Outside the United States.
Contractor accepts the risks associated with required contract performance in such operations.
(i) Except as provided in paragraph (b)(3)(ii) of this clause, and in accordance with paragraph (i)(3) of this clause, contractor
personnel are only authorized to use deadly force in self defense.
appears necessary to execute their security mission to protect assets/persons, consistent with the terms and conditions contained in the
(4) Service performed by contractor personnel subject to this clause is not active duty or service under 38 U.S.C. 106.
for contractor personnel engaged in this contract.
(d) Compliance with laws and regulations. The Contractor shall comply with, and shall ensure that its personnel in the USCENTCOM AOR are
familiar with and comply with, all applicable--
(4) Force protection, security, health, or safety orders, directives, and instructions issued by the USCENTCOM Commander; however,
only the Contracting Officer is authorized to modify the terms and conditions of the contract.
forth in the statement of work or elsewhere in the contract.
(2) Before contractor personnel depart from the United States or a third country, and before contractor personnel residing in the host
country begin contract performance in the USCENTCOM AOR, the Contractor shall ensure the following:
(iii) All personnel have all necessary passports, visas, entry permits, and other documents required for contractor personnel to
(iv) All personnel have received theater clearance, if required by the Combatant Commander.
(v) All personnel have received personal security training. The training must, at a minimum--
(vi) All personnel who are U.S. citizens are registered with the U.S. Embassy or Consulate with jurisdiction over the area of
operations on-line at http://www.travel.state.gov. ___________________________
(3) The Contractor shall notify all personnel who are not a local national or ordinarily resident in the host country that--
and territorial jurisdiction of the United States, may potentially be subject to the criminal jurisdiction of the United States (see the
Military Extraterritorial Jurisdiction Act of 2000 (18 U.S.C. 3261 et seq.);
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constitute a violation of the law of war when committed by a civilian national of the United States;
consular, military, or other Government missions outside the United States (18 U.S.C. 7(9)).
perform in the USCENTCOM AOR to--
Officer;
(g) Registration of Contractor personnel and private security contractor equipment.
(1) The Contractor is required to register in the automated webbased Synchronized Predeployment and Operational Tracker (SPOT)
following the procedures in paragraph (g)(4) of this clause.
(2) Prior to deployment of contractor employees, or, if already in the USCENTCOM AOR, upon becoming an employee under this contract,
the Contractor shall enter into SPOT, and maintain current data, including actual arrival date and departure date, for all contractor
personnel, including U.S. citizens, U.S. legal aliens, third-country nationals, and local national contractor personnel, who are
performing this contract in the USCENTCOM AOR as follows:
(i) In all circumstances, this includes any personnel performing private security functions.
(ii) For personnel other than those performing private security functions, this requirement excludes anyone--
(A) Hired under contracts valued less than $100,000;
(B) Who will be performing in the CENTCOM AOR less than 30 continuous days; or
(C) Who, while afloat, are tracked by the Diary message Reporting System
(3) Weapons, armored vehicles, helicopters, and other military vehicles used by personnel performing private security functions under
this contract must be entered into SPOT, and the currency of such information must be maintained.
(4) Follow these steps to register in and use SPOT:
(i) SPOT registration requires one of the following login methods:
(A) A Common Access Card or a SPOT-approved digital certificate; or
(B) A Government-sponsored SPOT user ID and password or an Army Knowledge Online (AKO) account.
(ii) To register in SPOT:
(A) Contractor company administrators should register for a SPOT account at https://spot.altess.army.mil; and ____________________________
(B) The customer support team must validate user need. This process may take two business days. Company supervisors will be
contacted to validate Contractor company administrator account requests and determine the appropriate level of user access.
(iii) Upon approval, all users will access SPOT at https://spot.altess.army.mil/. _____________________________
(iv) Refer SPOT application assistance questions to the Customer Support Team at 717-458-0747 or SPOT.helpdesk@us.army.mil. Refer to
the SPOT Enterprise Suite Resource Center at http://www.resource.spot-es.net/ for additional training resources and documentation ________________________________
regarding registration for and use of SPOT.
(5) The Contractor shall submit aggregate contractor personnel counts at a minimum quarterly or as directed by the Contracting Officer
by category (i.e. U.S. third country national or local national) of those contractor personnel who are on contracts valued greater than
$100,000, but performing less that 30 days in the AOR (e.g. day laborers).
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(6) The Contractor shall ensure that all contractor personnel in the database have a current DD Form 93, Record of Emergency Data
Card, on file with both the Contractor and the designated Government official. The Contracting Officer will inform the Contractor of the
Government official designated to receive the data card.
(h) Contractor personnel. The Contracting Officer may direct the Contractor, at its own expense, to remove and replace any contractor
personnel who fail to comply with or violate applicable requirements of this contract. Such action may be taken at the Governments
(i) Weapons (Not Applicable).
(1) If the Contracting Officer, subject to the approval of the USCENTCOM Commander, authorizes the carrying of weapons--
employees; or
(ii) The -1- may issue Government-furnished weapons and ammunition to the Contractor for issuance to specified contractor employees.
requested.
(A) Safely;
(B) With full understanding of, and adherence to, the rules of the use of force issued by the USCENTCOM Commander; and
(C) In compliance with applicable Department of Defense and agency policies, agreements, rules, regulations, and other applicable
law;
(iii) Adhere to all guidance and orders issued by the USCENTCOM Commander regarding possession, use, safety, and accountability of
(4) Upon revocation by the Contracting Officer of the Contractors authorization to possess weapons, the Contractor shall ensure that
(5) Whether or not weapons are Government-furnished, all liability for the use of any weapon by contractor personnel rests solely with
(1) Contractor personnel are prohibited from wearing military clothing unless specifically authorized by the USCENTCOM Commander. If
authorized to wear military clothing, contractor personnel must wear distinctive patches, arm bands, nametags, or headgear, in order to
(2) Contractor personnel may wear specific items required for safety and security, such as ballistic, nuclear, biological, or chemical
protective equipment.
(l) Evacuation. (1) If the Chief of Mission or USCENTCOM Commander orders a mandatory evacuation of some or all personnel, the
Government will provide to United States and designated third country national contractor personnel the level of assistance provided to
private United States citizens.
(m) Notification and return of personal effects. (1) The Contractor shall be responsible for notification of the contractor personnel
designated next of kin, and notification as soon as possible to the U.S. Consul responsible for the area in which the event occurred, if
the individual--
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(i) Dies;
(2) The Contractor shall also be responsible for the return of all personal effects of deceased or missing contractor personnel, if
(n) Mortuary affairs. Mortuary affairs for contractor personnel who die in the area of performance will be handled in accordance with
DoD Directive 1300.22, Mortuary Affairs Policy.
(o) Changes. In addition to the changes otherwise authorized by the Changes clause of this contract, the Contracting Officer may, at any
(p) Subcontracts. The Contractor shall incorporate the substance of this clause, including this paragraph (p), in all subcontracts that
require subcontractor personnel to perform in the USCENTCOM AOR.
(End of clause)
49 52.252-2 CLAUSES INCORPORATED BY REFERENCE FEB/1998
This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon
request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at
this/these address:
http://www.acq.osd.mil/dpap/dars/far.html or http://www.acq.osd.mil/dpap/dars/index.htm or
http://farsite.hill.af.mil/VFAFARa.HTM
(End of Clause)
50 52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES APR/1984
(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized
deviation is indicated by the addition of (DEVIATION) after the date of the clause.
(b) The use in this solicitation or contract of any DoD FAR SUPPLEMENT (48 CFR 2) clause with an authorized deviation is indicated by
the addition of (DEVIATION) after the name of the regulation.
(End of Clause)
51 KSCR1-1 (C3) ADDITIONAL INSTRUCTIONS FOR CONTRACTOR PERSONNEL WORKING IN THE NOV/2010
USCENTCOM AREA OF RESPONSIBILITY, SUPPORT
CONTRACTOR PRIVILEGES AND SUPPORT: As identified in the Statement of Work (SOW) and must be authorized by the Contracting Officer in a
Letter of Authorization (LOA). Every contract employee who will need an identification badge will need a SPOT-generated LOA. No
personnel are authorized entry into the theater for more than 30 days without a SPOT-generated LOA.
MEDICAL TREATMENT AVAILABLE TO CONTRACTOR PERSONNEL ON BASE CAMPS: limited to resuscitative and stabilization care only. Kuwait
mandatory language is in the Clause KSCR1-5, below. Emergency medical care is provided to any employee with an LOA, even when
medical/dental care is not specified. Medical/dental care appears as a check box; when creating the SPOT-generated LOA, do not check
the box to authorize routine medical/dental care.
PERSONNEL SUPPORT: The contractor is responsible for all personnel support unless provided for in the Statement of Work. The Statement
of Work must clearly identify all contractor personnel support that will be provided by the Government. PGI 225.7402-3 lists the
support that may be authorized or required when contractor personnel are supporting U.S. operations. Some examples of support are
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office space, communication services, equipment, and access to dining facilities.
BILLETING AND GOVERNMENT PROVIDED MEALS: As a general rule, not available for contractors in Kuwait. On an exception basis, contractors
may be permitted to use Government Billeting if a critical need by the Government exists and approval is granted by the Base Commander
as recommended by the Base Mayor's Cell.
LIFE SUPPORT: Contractors are responsible for providing all aspects of Life Support for Contractor employees to including, but not
limited to, housing and transportation within Kuwait and transportation to and from Kuwait, medical or dental care (if provided for
under employee benefits). Contractors are not allowed residence on any military installation within Kuwait unless a critical need by the
Government exists and approval is granted by the Base Commander as recommended by the Base Mayor's Cell. The Government will provide
only resuscitative/emergency medical care to contractor employees. (Reference paragraph 6.2.7.5 (Medical Preparation) of DODI 3020.41,
Contractor Personnel Authorized to Accompany the U.S. Armed Forces). The Contracting Officer must determine whether any contractor
personnel will be required to be armed or authorized to carry weapons for self-defense.
(End of Clause)
52 KSCR1-2 (C3) PROHIBITION AGAINST HUMAN TRAFFICKING, INHUMANE LIVING CONDITIONS, OCT/2011
AND WITHHOLDING OF EMPLOYEE PASSPORTS
Trafficking in Persons (TIP): Contractor employees and subcontractor employees performing under this contract shall comply with all DOD
and ASG-KUs Trafficking in Persons policies. Contractor employees are subject to prescriptions and remedies at FAR Clause 52.222-50 and
the terms and conditions stated herein.
ASG-KU has adopted a more stringent policy than federal requirements regarding trafficking in persons. All Contractor employees and
subcontractor employees shall be subject to FAR Clause 52.222-50, Combating Trafficking in Persons.
Contractor shall adhere to and abide by all Kuwait Labor Laws during the performance of this contract.
Registered Employee Listing: On a monthly basis, the Contractor shall provide the ACO with a listing of employee names registered with
the Ministry of Social Affairs and Labor (MOSAL). Failure to provide the ACO with a list of employees registered with the MOSAL will
result in the denial of installation badging privileges for Contractor employees. Furthermore, a copy of each individuals employment
contract shall be available to the USG by the conclusion of the Transition Period. At a minimum, the employment contract shall be in
English and the language of the employee. The Contractor shall disclose and make known to its employees the terms and conditions of
employment.
For the duration of the contract, the Contractor shall ensure all wages earned (hourly, weekly, monthly, yearly), to include benefits
and allowances, or any type of debt bondage arrangement in effect between the Contractor and employee, are included in each employees
contract. Contractor shall specify the compensation rate to be earned for hours in excess a normal workweek within the employment
contract.
Contractor shall specify the type or description of work to be performed and the job site location.
Contractor shall provide transportation costs from country of origin to place of employment, including repatriation.
Contractor shall include a detailed description of the type of job site berthing accommodations available to the employees within the
employment contract.
Contractor shall provide non-cash compensation and benefits, to include meals and accommodations.
Contractor shall ensure employees have injury and sickness compensation insurance for emergency medical and dental care.
Contractor shall clearly define valid grounds for termination within the employment contract.
Contractor shall include dispute settlement provisions within the employment contract.
Housing Standards: The Contractor shall comply with the following minimum housing accommodations standards:
(1) Housing provided to all employees shall be no less than 50 square feet per person.
(2) Cafeteria or common use kitchen will be provided to all employees. Common use kitchens will service no more than 25 workers per
kitchen.
(3) Each room shall be furnished at a minimum with the following:
(i) Room light.
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(ii) One bed per individual.
(iii) One storage device that can be secured; a footlocker with hasp for lock, minimum size of at least 3 cubic feet.
(iv) A laundry facility or laundry service.
(v) Cleaning supplies.
(4) Monthly inspections of living conditions of all Contractor and subcontractor employees. A copy of the inspection report shall be
provided to the ACO. The inspection report shall, at a minimum, contain the following inspection criteria:
(i) Compliance with minimum housing accommodation standards.
(ii) Functioning appliances and the projected time for repair for any non-functioning appliances.
(iii) The findings of Quarterly Health and Welfare inspections on personnel and accommodations.
TIP Training: Contractor shall provide TIP training for all employees and subcontractor employees. A copy of each employees TIP
training certificate shall be provided to the PCO 30 days after the contract start date.
Contractor Shall Post: Human Trafficking Hotline Posters in English and all employee languages in all living quarters. At a minimum,
the poster shall include the Contracting Commands Hotline complaint number DSN 318-430-4985 or 389-4985.
Violations: Violation of the TIP policy shall result in actions taken against the Contractor or its employees. Such actions may
include, but are not limited to, removal from the contract, reduction in benefits, or termination of employment at no cost to the USG.
Notification: Contractor shall inform the PCO immediately of any information received from any source (including host country law
enforcement) that alleges a Contractor employee, subcontractor, or subcontractor employee has engaged in conduct that violates TIP
policies, and any actions taken against Contractor or subcontractor employees pursuant to FAR Clause entitled Combating Trafficking in
Persons.
Remedies: In addition to other remedies available to the USG, the Contractors failure to comply with TIP policy may render the
Contractor subject to the following at no cost to the USG:
(1) Required removal of a Contractor employee or employees from the performance of the contract.
(2) Required subcontractor termination.
(3) Suspension of contract payments.
(4) Loss of fee, consistent with the fee plan, for the performance period in which the USG determined Contractor non-compliance.
(5) Termination of the contract for default or cause, in accordance with the termination clause of this contract.
Subcontracts: Contractor shall flow-down to its subcontracts the terms and conditions of this paragraph IAW Host Nation laws, regulatory
guidance, DOD, and FAR clauses referenced herein.
(End of Clause)
53 KSCR1-5 (C3) FITNESS FOR DUTY AND MEDICAL CARE LIMITATIONS AUG/2011
(a) The contractor shall perform the requirements of this contract notwithstanding the fitness for duty of deployed employees, the
provisions for care offered under this section, and redeployment of individuals determined to be unfit. Contractor personnel who deploy
for multiple tours, for more than 12 months total must be re-evaluated for fitness to deploy. An examination will remain valid for 15
months from the date of the physical. The contractor bears the responsibility for ensuring all employees are aware of the conditions
and medical treatment available at the performance location. The contractor shall include this information and requirement in all
subcontracts with performance in the theater of operations.
(b) The contractor shall not deploy an individual with any of the following conditions unless approved by the appropriate CENTCOM
Service Component (ie. ARCENT, AFCENT, etc.) Surgeon: Conditions which prevent the wear of personal protective equipment, including
protective mask, ballistic helmet, body armor, and chemical/biological protective garments; conditions which prohibit required theater
immunizations or medications; conditions or current medical treatment or medications that contraindicate or preclude the use of chemical
and biological protectives and antidotes; diabetes mellitus, Type I or II, on pharmacological therapy; symptomatic coronary artery
disease, or with myocardial infarction within one year prior to deployment, or within six months of coronary artery bypass graft,
coronary artery angioplasty, or stenting; morbid obesity (BMI >/= 40%); dysrhythmias or arrhythmias, either symptomatic or requiring
medical or electrophysiological control; uncontrolled hypertension, current heart failure, or automatic implantable defibrillator;
therapeutic anticoagulation; malignancy, newly diagnosed or under current treatment, or recently diagnosed/treated and requiring
frequent subspecialist surveillance, examination, and/or laboratory testing; dental or oral conditions requiring or likely to require
urgent dental care within six months time, active orthodontic care, conditions requiring prosthodontic care, conditions with immediate
restorative dentistry needs, conditions with a current requirement for oral-maxillofacial surgery; new onset (< 1 year) seizure
disorder, or seizure within one year prior to deployment; history of heat stroke; Menieres Disease or other vertiginous/motion sickness
disorder, unless well controlled on medications available in theater; recurrent syncope, ataxias, new diagnosis (< 1 year) of mood
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disorder, thought disorder, anxiety, somatoform, or dissociative disorder, or personality disorder with mood or thought manifestations;
unrepaired hernia; tracheostomy or aphonia; renalithiasis, current; active tuberculosis; pregnancy; unclosed surgical defect, such as
external fixeter placement; requirement for medical devices using AC power; HIV antibody positivity; psychotic and bipolar disorders.
(Reference: Mod 10 to USCENTCOM Individual Protection and Individual/Unit Deployment Policy, PPG-Tab A: Amplification of the Minimal
Standards of Fitness for Deployment to the CENTCOM AOR).
(c) In accordance with military directives (DoDI 3020.41, DoDI 6000.11, CFC FRAGO 09-1038, DoD PGI 225.74), resuscitative care,
stabilization, hospitalization at Level III (emergency) military treatment facilities and assistance with patient movement in
emergencies where loss of life, limb or eyesight could occur will be provided. Hospitalization will be limited to emergency
stabilization and short-term medical treatment with an emphasis on return to duty or placement in the patient movement system. Subject
to availability at the time of need, a medical treatment facility may provide reimbursable treatment for emergency medical or dental
care such as broken bones, lacerations, broken teeth or lost fillings.
(d) Routine and primary medical care is not authorized. Pharmaceutical services are not authorized for routine or known, routine
prescription drug needs of the individual. Routine dental care, examinations and cleanings are not authorized.
(e) Notwithstanding any other provision of the contract, the contractor shall be liable for any and all medically-related services or
transportation rendered. To view reimbursement rates that will be charged for services at all DoD deployed medical facilities please go
to the following website: http://comptroller.defense.gov/rates/fy2011.html (change fiscal year as applicable).
(End of Clause)
54 KSCR1-6 (C3) COMPLIANCE WITH LAWS AND REGULATIONS AUG/2010
(a) The Contractor shall comply with, and shall ensure that its employees and its subcontractors and their employees, at all tiers, are
aware of and obey all U.S. and Host Nation laws, Federal or DoD regulations, and Central Command orders and directives applicable to
personnel in Kuwait including but not limited to USCENTCOM, Multi-National Force and Multi-National Corps operations and fragmentary
orders, instructions, policies and directives.
(b) Contractor employees shall particularly note all laws, regulations, policies, and orders restricting authority to carry firearms,
rules for the use of force, and prohibiting sexual or aggravated assault. Contractor employees are subject to General Orders Number 1,
as modified from time to time, including without limitation, their prohibition on privately owned firearms, alcohol, drugs, war
souvenirs, pornography and photographing detainees, human casualties or military security measures.
(c) Contractor employees may be ordered removed from secure military installations or the theater of operations by order of the senior
military commander of the battle space for acts that disrupt good order and discipline or violate applicable laws, regulations, orders,
instructions, policies, or directives. Contractors shall immediately comply with any such order to remove its contractor employee.
(d) Contractor employees performing in the USCENTCOM Area of Responsibility (AOR) may be subject to the jurisdiction of overlapping
criminal codes, including, but not limited to, the Military Extraterritorial Jurisdiction Act (18 U.S.C. Sec. 3261, et al) (MEJA), the
Uniform Code of Military Justice (10 U.S.C. Sec. 801, et al)(UCMJ), and the laws of the Host Nation. Non-US citizens may also be subject
to the laws of their home country while performing in the USCENTCOM AOR. Contractor employee status in these overlapping criminal
jurisdictions may be modified from time to time by the United States, the Host Nation, or by applicable status of forces agreements.
(e) Under MEJA, a person who engages in felony misconduct outside the United States while employed by or accompanying the Armed Forces
is subject to arrest, removal and prosecution in United States federal courts. Under the UCMJ, a person serving with or accompanying the
Armed Forces in the field during a declared war or contingency operation may be disciplined for a criminal offense, including by
referral of charges to a General Court Martial. Contractor employees may be ordered into confinement or placed under conditions that
restrict movement within the AOR or administratively attached to a military command pending resolution of a criminal investigation.
(f) Contractors shall immediately notify military law enforcement and the Contracting Officer if they suspect an employee has committed
an offense. Contractors shall take any and all reasonable and necessary measures to secure the presence of an employee suspected of a
serious felony offense. Contractors shall not knowingly facilitate the departure of an employee suspected of a serious felony offense or
violating the Rules for the Use of Force to depart Kuwait without approval from the senior U.S. commander in the country.
(End of Clause)
55 KSCR1-7 (C3) MONTHLY CONTRACTOR CENSUS REPORTING AUG/2011
Contractor shall provide monthly employee census information to the Contracting Officer, by province, for this contract. Information
shall be submitted either electronically or by hard-copy. Information shall be current as of the 25th day of each month and received by
the Contracting Officer no later than the first day of the following month. The following information shall be provided for each
province in which work was performed:
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(1) The total number (prime and subcontractors at all tiers) employees.
(2) The total number (prime and subcontractors at all tiers) of U.S. citizens.
(3) The total number (prime and subcontractors at all tiers) of local nationals (LN).
(4) The total number (prime and subcontractors at all tiers) of third-country nationals (TCN).
(5) Name of province in which the work was performed.
(6) The names of all company employees who enter and update employee data in the Synchronized Predeployment & Operational Tracker
(SPOT) IAW DFARS 252.225-7040 or DFARS 252.22.-7995 (Deviation 2011-O0004).
(End of Clause)
56 KSCR1-10 (C3) MEDICAL SCREENING AND VACCINATION REQUIREMENTS FOR THIRD COUNTRY OCT/2011
NATIONALS OR LOCALLY HIRED EMPLOYEES
(a) Contractors, and subcontractors at any tier shall ensure and provide satisfactory evidence that all locally hired employees,
including Local National (LN), Third Country National (TCN), and U.S. employees, working on bases have been screened for and do not
currently have active tuberculosis (TB).
(1) Contractors may initially utilize a testing method of either a chest x-ray or TB skin test (TST), depending on the originating
country a contracted employee.
(i) Chest x-rays (CXR's), symptom survey, and BMI shall be taken, and TSTs administered within 12 months prior to the start of
deployment/employment. Contractors are required to bring in a physical copy of the pre-employment CXR film as it is the only way to
verify interval changes should an active case of TB occur.
(A) Third Country Nationals (TCNs) and Local Nationals (LNs) cannot be screened with the TST. They need the pre-employment
screening with a quality CXR, Body Mass Index (BMI) and symptom survey.
(B) Small-Risk Nationals (SRNs), those with less than 25 TB cases per 100,000 persons annually (mostly expats from Europe and
US), can be screened via the TST.
(ii) Annual re-screening for TCNs, and LNs will be performed with a CXR conducted by the Contractors medical provider or local
economy provider, who will look for interval changes from prior CXRs and review any changes in the symptom survey.
(iii) SRNs do not require annual TB re-screening. However, for a TB contact investigation, a TST or Interferon Gamma Release Assay
(IGRA) is required.
(iv) For a contact investigation, all personnel with a positive TST or IGRA will be evaluated for potential active TB with a
symptom screen, exposure history, BMI, and CXR. All cases of suspected or confirmed active TB must be reported to the theater
Preventive Medicine (PM) physician and/or TB Consultant as soon as possible. TB reporting is required within 24 hours to the PM POC.
Contact tracing, and medical coding have specific requirements. All Small-Risk National (SRN) contract personnel are required to be
MEDEVACd out of theater, at the contractors expense, for treatment of active TB, after consultation with the Theater PM or TB
Consultant. For SRN personnel, the contractor is responsible for management and compliance with all prescribed public health actions.
(v) Screening may be performed either by a licensed medical provider from the local economy or by the contractors licensed medical
staffs. Contractors shall maintain medical screening documentation and make it available to the Contracting Officer upon request.
(2) TB screening and documentation is a requirement prior to receiving badges to work in Kuwait. A copy of the TB screening
documentation shall be provided to the Contracting Officer and the COR prior to issuance of base access badges.
(b) Contractor employees, including subcontractors at any tier, who work in positions where they are working in food service, water
and ice production facilities, shall have current Typhoid and Hepatitis A (full series) immunizations in accordance with the Centers for
Disease Control and Prevention guidelines (e.g. typhoid vaccination booster is required every 2 years), in addition to the required TB
tests. The contractor medical provider must complete a pre-placement examination to include a stool sample test for ova and parasites,
and annual medical screening form or equivalent for food service, ice and water production workers.
(c) Proof of individual employee vaccinations shall be provided to the Contracting Officer and COR showing that their employees and
their subcontractor employees at any tier have received the above vaccinations. The contractor shall maintain their employees
vaccination records for examination by the Contracting Officer. The contractor shall ensure that their subcontractors at any tier
maintain their respective employees vaccination records for examination by the Contracting Officer.
(d) The contractor is responsible for management and compliance with all prescribed public health actions regarding TB in the
contracted personnel. The contractor also bears the responsibility of ensuring that adequate health management for TB
(screening/diagnosis/treatment/isolation) is available at the contractors chosen health care provider for their contracted and
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subcontracted personnel.
NOTE: Contractors are reminded of the requirement to comply with their contract and all regulatory guidance (DoD
Instructions/Regulations, Federal Acquisition Regulation/Defense Federal Acquisition Regulation Supplement, and FRAGO's) as applicable
regarding Medical Screening and Vaccination Requirements
List of Immunizations and Vaccinations: Required for entry into Kuwait and those recommended by medical authorities upon contract award
can be found at the CRC website identified below. The document entitled Civilian Medical Processing is provided for guidance and
situational awareness. Contractor employees shall be immunized or vaccinated to meet the requirements established by the Theater's
Command Surgeon. Contractors shall immediately replace any employee who refuses any required immunization or vaccination at the
Contractor's expense. Additional information can be provided by visiting the CONUS Replacement Center (CRC) website at
www.benning.army.mil/CRC.
(End of Clause)
57 KSCR1-12 (C3) MILITARY EXTRATERRITORIAL JURISDICTION ACT AUG/2010
Military Extra Territorial Jurisdiction Action (MEJA) (18 USC 3261-3267). Per the MEJA Act, following notification of contract award,
the Contractor and all subcontractors at any tier shall provide the required notification to all employees. The Contractor shall report
compliance with this clause to the Contracting Officer following contract award and upon request. The Contractor shall respond to
requests for reports on compliance with this clause in the manner and with such content as is specified by the Contracting Officer at no
further cost to the Government. The contractor, and all subcontractors at any tier, is responsible for providing each employee with the
below notification by actions sufficient to ensure all employees have received and understood the notification by actions including, but
not limited to, providing the notification and obtaining a written acknowledgement of the notification by each employee, posting the
notification in a conspicuous place frequented by employees, as well as including the below notice in employee manuals or employment
information. Employees who are not literate (who cannot read) shall have this notification read to them in a language understood by such
employee. The below notification will be provided during employee training and any briefings provided to contractors employees and
subcontractor employees at any tier no later than ten days after employment for this contract or arrival in the foreign country in which
they will be assigned, employed by or accompanying the US Armed Forces, or residing as a dependent. The contractor shall maintain a copy
of each employees written acknowledgement of receipt of the notification and shall provide the same upon request by the Contracting
Officer. The contractor shall comply with all notification requirements of DoD Instruction 5525.11, Criminal Jurisdiction over Civilians
Employed By or Accompanying the Armed Forces outside the United States, Certain Service Members, and Former Service Members. In the
event of conflict between DoDI 5525.11 or any applicable U.S. military regulations, DoDI 5525.11 and/or applicable U.S. military
regulations or orders will control over this clause. The notification referenced above is as follows: Notification: Under the Military
Extraterritorial Jurisdiction Act (MEJA) (18 USC 3261-3267), persons employed by or accompanying the U.S. Armed Forces outside the
United States are potentially subject to prosecution for certain criminal acts, including such acts occurring outside the United States.
MEJA applies only to those crimes punishable by imprisonment for more than one year if committed within United States jurisdiction. The
law applies to individuals accompanying a contractor for the US Armed Forces, which may include a dependent of a DOD contractor or
subcontractor employee. This law authorizes DOD law enforcement personnel to arrest suspected offenders in accordance with applicable
international agreements and specifies procedures for the removal of accused individuals to the US. It also authorizes pretrial
detention and the appointment of counsel for accused individuals. See Army Field Manual 3-100.21, Contractors on the Battlefield, and
DoD Instruction 5525.11, Criminal Jurisdiction Over Civilians Employed By or Accompanying the Armed Forces Outside the United States,
Certain Service Members, and Former Service Members.
NOTE: Also see KSCR1-6, paragraphs (d), (e) & (f).
(End of Clause)
58 KSCR1-13 (C3) INSTALLATION SECURITY/ACCESS/BADGING REQUIREMENTS AUG/2010
(a) Badging and access requirements for Army Posts in Kuwait will require coordination with the Contracting Officer or the Contracting
Officer Representative (COR) responsible for contract oversight at applicable location.
(1) To obtain entry to Camp Arifjan, Contractors must contact the Badging Office at 965-2389-1525 for forms, procedures and
instructions.
(2) New passes are obtained at ECP 1 (TCN Gate) on Camp Arifjan. Renewals and upgrades are handled at the Provost Marshal Office Bldg
159 located on Camp Arifjan. The ECP 1 Badging Office provides support from 0700 to 1600 and 1900 to 0400 Daily.
(b) Contractors are advised that badging for citizens/residents of certain countries is restricted or unavailable. Contractors must
contact the Badging Office to obtain a list of restricted countries and any applicable waiver processes.
(c) Contractor shall adhere to all Physical Security requirements for all areas of performance under this contract IAW Army Regulation
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190 series. The Contractor shall comply with the ASG-KU Commands directed vetting/badging policies for all personnel.
(d) Special Instructions for Compound Pass access procedures per ASG-KU-PMO:
The contractor shall obtain temporary installation access passes through the Contracting Officer or the Contracting Officer's
Representative (COR). The contractor shall allow a minimum of 5 working days to process passes through the Pass and ID section. To
obtain temporary passes; the contractor must submit a copy of the Civil ID with a level 18 working code for each worker, a copy of the
workers' passport showing the Kuwait visa, and a completed Pass Request Form. The above-mentioned form can be obtained at the Pass and
ID Section. Additionally, the contractor must identify all the workers' sponsors and have an individual letter for each applicant from
their sponsor authorizing their employees to work for the contractor and accepting responsibility. It is the responsibility of the
Contractor to screen employees for countries of concern. Citizens of the countries below are prohibited access to the installation
unless granted an exception by the ASG-KU Commander. For each exception to policy, a name-check with the U.S. Embassy and a Kuwait
KMOD/KMOI Background Investigation will be conducted and kept on file at the ASG-KU PMO Installation Access Office.
(1) Cuba
(2) Iran
(3) Iraq
(4) Libya
(5) Democratic People's Republic of Korea
(6) Sudan
(7) Syria
Citizens of the countries listed below are permitted to apply for installation access; however a name-check with the U.S. Embassy must
be conducted in addition to the routine KMOD/KMOI Background Investigation.
(1) Russia
(2) People's Republic of China
(3) Socialist Republic of Vietnam
(End of Clause)
59 KSCR1-14 (C3) SPECIAL REQUIREMENTS FOR SECURITY/ACCESS ON AIR FORCE BASES IN KUWAIT AUG/2010
SECURITY & ACCESS:
(a) The contractor shall follow security procedures and instructions applicable to Ali Al Salem AB, Kuwait. Contractor personnel working
on Ali Al Salem Air Base shall hold a current Kuwait Pass necessary to gain access to the front Gate. The U.S. shall not be liable for
delays caused by inaccessibility through the Kuwaiti Gate.
(b) The contractor shall submit pass request applications to the Contracting Officer within 3 calendar days after receipt of Notice of
Contract Award. The pass request applications require coordination with the Host Nation Liaison. The U.S. Air Force shall not be liable
for delays resulting from Kuwaiti pass coordination/approval. Contractor shall be liable for completing all requirements within the
specified time frames. No extensions on work will be granted due to delays from Kuwaiti pass coordination/approval. Upon completion the
pass request letters shall be returned to the contractor for coordination with the Kuwait Air Force Security Office.
(c) The contractor is also required to complete Installation Access Applications for all employees entering Ali Al Salem Air Base. Once
the application is complete all contractor employees must then register within the Defense Biometric Identification System (DBIDS) and
receive a DBIDS badge.
(d) The work site is located in a restricted or controlled area. The contractor may therefore experience delays due to compliance with
entrance/exit requirements of restricted/controlled areas. The maximum amount of delay should not exceed four (4) hours per occurrence.
(e) The Host Nation base will not grant access for individuals of the following nationalities: Iranian, Iraqi, Cuban, Libyan, Syrian,
Sudanese, Jordanian, Palestinian, and North Korean.
There are two passes that are required for access to Air Force installations in Kuwait:
(1) The first pass that is required is the DBIDS badge. An application shall be completed for this badge. Once the completed
application is received, contractor will be able to go to the DBIDS trailer at the gate and get your biometrics taken. The results of
the biometrics scan takes three days. After these three days, contractor may come pick up DBIDS badge.
(2) The second pass that is required is a temporary pass from the Kuwaitis. Each person on the admissions pass must have copies of
their Civil ID cards attached to the document. Each person on the short term vehicle pass must have a copy of their Civil ID cards,
vehicle registration, and driver's license. The short term passes are only good for five days, but I would recommend that you submit
your information for this pass as soon as possible since these can be difficult to obtain at times. Both the admissions and vehicle
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temporary passes must have both English and Arabic versions submitted. I have also attached the most current instructions on how to
complete these temporary pass applications. NOTE: All date formats have to be YYYY/MONTH/DAY. Also, these passes must be typed.
DBIDS Processing Instructions for 386 ECONS Contractors:
STEP ONE: Obtain a copy of the Installation Access Application (IAA) from the Ali Al Salem Air Base Contracting Office (386 ECONS).
STEP TWO: Ensure sections 1, 2, 3, 4, 9, 11, and 12 are completed with the appropriate information. Once you have accurately completed
the IAA, submit the completed form to the 386 ECONS. Ensure that each application has the required backup documentation (see section 10
of the IAA, Verifying Documents Attached section). At a minimum each IAA should have:
(1) Copy of the passport (photo, data, and residency pages)
(2) Copy of the civil ID (front and back)
(3) Entry Visa with entry stamp (if applicable)
(4) Original sponsor letter (in English ONLY)
(5) Copy of the driver's license
STEP THREE: Once you have submitted the completed form to the 386 ECONS, your representative within the 386 ECONS will complete sections
5, 6, and 7.
STEP FOUR: The 386 ECONS will submit the completed IAA to the DBIDS office. You will then be notified by the 386 ECONS that the IAA is
in the DBIDS office. At this time you can report to the DBIDS office (located at the Fox 1/"Ringmaster" entrance of Ali Al Salem Air
Base) for the submission of your biometric information.
All 386 ECONS contractors who have submitted IAAs can report to the DBIDS office Monday through Saturday from 1500 to 1630.
STEP FIVE: Visitor awaits receipt of DBIDS badge.
(End of Clause)
60 KSCR1-15 (C3) PREVENTION OF SEXUAL HARASSMENT TRAINING AUG/2010
(a) Definitions. As used in this policy--
"Sexual Assault" means--
A crime defined as intentional sexual contact, characterized by use of force, physical threat or abuse of authority or when the victim
does not or cannot consent. Sexual assault includes rape, nonconsensual sodomy (oral or anal sex), indecent assault (unwanted,
inappropriate sexual contact or fondling), or attempts to commit these acts. Sexual assault can occur without regard to gender or
spousal relationship or age of victim. Consent will not be deemed or construed to mean the failure by the victim to offer physical
resistance. Consent is not given when a person uses force, threat of force, or coercion or when the victim is asleep, incapacitated, or
unconscious.
"Sexual Harassment" means--
Gender discrimination that involves unwelcomed sexual advances, requests for sexual favors and other verbal or physical conduct of a
sexual nature between the same or opposite sex genders when such conduct has the purpose or effect of unreasonably interfering with an
individuals work performance or creates an intimidating, hostile, or offensive working environment. Categories of sexual harassment are:
(1) Verbal Examples include telling sexual jokes; using sexually explicit profanity, threats, sexually oriented cadences, or sexual
comments; whistling in a sexually suggestive manner; and describing certain attributes of ones physical appearance in a sexual manner.
(2) Nonverbal Examples include staring at someone, blowing kisses, winking, or licking ones lips in a suggestive manner. The term may
also include printed material (for example, displaying sexually oriented pictures or cartoons); using sexually oriented screen savers on
ones computer; or sending sexually oriented notes, letters, faxes or email.
(3) Physical Contact Examples include touching, patting, pinching, bumping, grabbing, cornering, or blocking a passageway; kissing;
and providing unsolicited back or neck rubs.
(b) Policy. The Department of Defense has adopted a policy to prevent sexual assault and sexual harassment.
(c) Contractors and contractor employees in the Army Central Command (ARCENT) Area of Responsibility (AOR) shall not--
(1) Commit acts of sexual assault against any person on any camp, post, installation, or other United States enclave within the ARCENT
AOR; or
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(2) Sexually harass any person on any camp, post, installation, or other United States enclave within the ARCENT AOR.
(d) Contractor requirements. The Contractor shall--
(1) Notify its employees of:
(i) The Department of Defenses policy described in paragraph (b); and
(ii) The actions that will be taken against employees for violations of this policy. Such actions may include, but are not limited
to, removal from the contract, reduction in benefits, or termination of employment;
(2) Take appropriate action, up to and including termination, against employees or subcontractors that violate the policy in paragraph
(b); and
(3) Annually train all employees to prevent sexual assault and sexual harassment. This training must, at a minimum, ensure that all
contractor employees understanding the definitions outlined in paragraph (a) and the policy in paragraph (b). Each employees compliance
with this training requirement shall be reported to the Contracting Officers Representative prior to the employee being allowed access
to the worksite.
(e) Notification. The Contractor shall inform the Contracting Officer immediately of--
(1) Any information it receives from any source (including host country law enforcement) that alleges a Contractor employee,
subcontractor, or subcontractor employee has engaged in conduct that violates this policy; and
(2) Any actions taken against Contractor employees, subcontractors, or subcontractor employees pursuant to this policy.
(f) Remedies. In addition to other remedies available to the Government, the Contractor's failure to comply with the requirements of
paragraphs (c), (d), or (f) of this policy may result in--
(1) Requiring the Contractor to remove a Contractor employee or employees from the performance of the contract;
(2) Requiring the Contractor to terminate a subcontract;
(3) Suspension of contract payments;
(4) Loss of award fee, consistent with the award fee plan, for the performance period in which the Government determined Contractor
non-compliance;
(5) Termination of the contract for default or cause, in accordance with the termination clause of this contract; or
(g) Subcontracts. The Contractor shall include the substance of this policy, including this paragraph (g), in all subcontracts.
(h) Mitigating Factor. The Contracting Officer may consider whether the Contactor had a Sexual Assault Prevention and Response training
program at the time of the violation as a mitigating factor when determining remedies. Additional information about Sexual Assault
Prevention and Response training programs can be found at the Department of Defense Sexual Assault Prevention and Response Home Page,
http://www.sapr.mil.
(End of Clause)
61 KSCR1-16 (C3) CONTRACTOR PAYMENTS NOV/2010
Currency: Payments made against this contract will be paid in local currency (Kuwait Dinar) if awarded to a non U.S. vendor. If
contract award has been made to a U.S. contractor, payment will be made in U.S. currency (dollars). Payments shall be made via
Electronic Funds Transfer (EFT), unless circumstances beyond a contractors control prevent this.
(End of Clause)
62 KSCR1-17 (C3) SPONSORSHIP REQUIREMENTS AUG/2010
Sponsorship: The Contractor shall obtain local sponsorship as required for all personnel for the purpose of providing in-country legal
representation, work visas and resolution of other personal business or domestic matters, in compliance with host nation labor laws.
Passports, Visa and Customs: The Contractor is responsible for identifying and obtaining all passports, visas, or other documents
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necessary to enter and/or exit any areas necessary for performance. All Contractor employees shall be subject to the customs, processing
procedures, laws, and duties of Kuwait, and the procedures, laws, and duties of the United States upon re-entry. Contractors are
required to register all personnel with the appropriate U.S. Embassy or Consulate.
(End of Clause)
63 KSCR1-18 (C3) CONTRACTOR MANPOWER REPORTING OCT/2011
Contractor Manpower Reporting: The Office of the Assistant Secretary of the Army (Manpower & Reserve Affairs) operates and maintains a
secure Army data collection site where the contractor shall report ALL contractor manpower (including subcontractor manpower) required
for performance of this contract. The contractor is required to completely fill in all the information in the format using the following
web address https://cmra.army.mil/login.aspx
The required information includes:
(1) Contracting Office, Contracting Officer, Administrative Contracting Officer;
(2) Contract Number;
(3) Beginning and ending dates covered by reporting period;
(4) Contractor name, address, phone number, email address, identify of contractor employee entering data;
(5) Estimated direct labor hours (including sub-contractors);
(6) Estimated direct labor dollars (including sub-contractors);
(7) Total payments (including sub-contractors);
(8) Predominant Federal Service Code (FSC) reflecting services provided by contractor (and separate predominant FSC for each sub-
contractor, if different);
(9) Estimated data collections cost;
(10) Organizational title associated with the Unit Identification Code (UIC) for the Army Requiring Activity (the Army Requiring
Activity is responsible for providing the contractor with its UIC for the purposes of reporting this information);
(11) Locations where contractor and subcontractor perform the work (specified by zip code in the United States or nearest city,
country when in an overseas location, using standardized nomenclature provided on website);
(12) Presence of deployment or contingency contract language; and
(13) Number of contractor and sub-contractor employees deployed in theater during this reporting period (by country).
As part of its submission, the contractor will also provide the estimated total cost (if any) incurred to comply with this reporting
requirement. Reporting period will be the period of performance not to exceed 12 months ending September 30 of each calendar year.
Contractors may use a direct XML data transfer to the data base server or fill in the fields on the website. The XML direct transfer us
a format for transferring files from a contractor's systems to the secure web site without the need for separate data entries for each
required data element at the web site. The specific formats for the XML direct transfer may be downloaded from the web site. The
Contractor shall NOT mark any data provided to the USG under this contract as proprietary; this includes records, files, memoranda,
reports, listings, SOPs, plans, programs, studies, tests, property listings, etc., or any other data acquired or produced by the
Contractor in support of this contract. Further, IAW with DFARS 252.227-7013, the Government shall have unlimited rights to all
technical data produced or obtained by the Contractor under the terms of this contract. As such, the Contractor shall not place
proprietary markings on any documents to which the Government has unlimited rights.
(End of Clause)
64 KSCR1-19 (C3) SPECIAL REQUIREMENTS FOR CONSTRUCTION AND FACILITY ASSOCIATED WORK ON OCT/2011
MILITARY INSTALLATIONS IN KUWAIT
Contractor Liaison with Host Government: All communication by the Contractor with all officials, Representatives and/or offices of the
Host Government in all matters pertaining to the design or construction of this contract, shall be through and in full liaison with the
Contracting Officer. This does not relinquish Contractor responsibility for obtaining routine items to conduct day to-day business, such
as visas, permits, and custom clearances.
Kuwait Ministry of Defense (KMOD) Letter of Authorization: An offeror must provide a copy of the offerors KMOD construction
authorization letter stamped by the Military Engineering Projects Office along with an original certified English translation. If the
KMOD construction authorization letter being submitted is due for renewal within 30 days of proposal submission, the offeror involved
should describe the procedure by which it intends to obtain renewal of that authorization letter.
Use of Existing Roads as Haul Routes: The Contractor shall be responsible for coordinating with the Host Nation Government and the base
authorities for use of any existing roads as haul routes. Construction, and routing of new haul roads, and/or upgrading of existing
roads to carry anticipated construction traffic shall be coordinated with the Host Nation and Base authorities and is the sole
responsibility of the Contractor.
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Compliance with Kuwait Rules and Customs for Access to Restricted Areas within Kuwait: The laws of Host Country may prohibit access to
certain areas of the country which are under military control. The Contractor shall furnish the Contracting Officer the names of
personnel, type, and amounts of equipment, dates and length of time required at the site, and the purpose of entering the host country.
It is understood that areas to which rights of entry are provided by the Host Government are to be used only for work carried out under
the contract and no destruction or damages shall be caused, except through normal usage, without concurrence of the Host Government.
Contractor's Responsibilities: The following items are the sole responsibility of the Contractor to investigate, estimate as to cost,
and assume the risk, as normally encountered by Contractors. The Contractor shall be responsible for determining the effect of the
following on his own cost of performance of the contract and for including sufficient amount in the contract price:
(1) Official language and type of accounts required to satisfy the officials of the Local Government.
(2) Entry and exit visas, residence permits, and residence laws applicable to aliens. This includes any special requirements of the
Host Government, including those required by local Labor Offices, which the Contractor may have to fulfill before an application for a
regular block of visas will be accepted.
(3) Passports, health and immunization certificates, and quarantine clearance.
(4) Compliance with local labor and insurance laws, including payment of employer's share of contribution, collecting balance from
employee and paying into insurance funds.
(5) Strikes, demonstrations and work stoppage.
(6) Collection through withholding and payment to local Government, of any Host Country income tax on employees subject to tax.
(7) Arranging to perform work in the Host Country, to import personnel, to employ non-indigenous labor, to receive payments and to
remove such funds from the country.
(8) Operating under local laws, practices, customs and controls, and with local unions, in connection with hiring and firing,
mandatory wage scales, vacation pay, severance pay, overtime, holiday pay, 7th day of rest, legal notice or pay in lieu thereof for
dismissal of employees, slowdown and curtailed schedules during religious holidays and ratio of local labor employed in comparison to
others.
(9) Possibility of claims in local bureaus, litigation in local courts, or attachment of local bank accounts.
(10) Compliance with workmen's compensation laws and contributions into funds. Provisions of necessary medical service for Contractor
employees.
(11) Special license required by the local Government for setting up and operating any manufacturing plant in the Host Country, e.g.
concrete batching, precast concrete, concrete blocks, etc.
(12) Sales within the host country of Contractor-owned materials, and equipment.
(13) Special licenses for physicians, mechanics, tradesmen, drivers, etc.
(14) Identification and/or registration with local police of imported personnel.
(15) Stamp tax on documents, payments and payrolls.
(16) Base passes for permanent staff, day laborers, motor vehicles, etc.
(17) Compliance with all customs and import rules, regulations and restrictions, including, but not limited to, local purchase
requirements.
Local Standards: Design and installation of systems shall comply with applicable local Kuwait Ministry and Military Engineering
Projects (MEP) standards and regulations. Conflicts between criteria and local standards shall be brought to the attention of the
Contracting Officer for resolution. In such instances, the Contractor shall furnish all available information with justification to the
Applicable Publications and Standards: All of the electrical installation shall be in accordance with the requirements of (Kuwait)
Ministry of Electricity and Water (MEW) R-1 and S-1. Equipment and installation items not covered by these standards shall meet the
other applicable US standards below. Conflicts with local codes or standards shall be brought to the attention of the Contracting
Officer for resolution. Where specific U.S. standards are listed, equivalent internationally recognized standards, such as BS, DIN or
IEC, may be substituted after written approval of the Contracting Officer. It is the responsibility of the Contractor to provide data
demonstrating that the proposed standard is equivalent. The use of the latest published standard is acceptable in lieu of the standard
listed.
Ministry of Electricity and Water (MEW) R-1:Regulations for Electrical Installations (latest issue)
Ministry of Electricity and Water (MEW) S-1:General Specification for Electrical Installation (latest issue)
NATIONAL FIRE PROTECTION ASSOCIATION (NFPA) 70 (2008) National
Electrical Code
Kuwait MEW (Ministry of Electricity & Water) R1 & S1 regulations
BRITISH STANDARDS INSTITUTE BS 1363-2 (Jan 1995, Amd 1) 13 A Plugs, socket-outlets & adapters-Specifications for 13 A switched and
unswitched socket-outlets
BS 7671 (1997, Amd 2) Requirements for Electrical Installations
INSTITUTE OF ELECTRICAL AND ELECTRONICS ENGINEERS (IEEE) Std C2 (2002) National Electrical Safety Code
IEEE Std 141 (1993) Electric Power Distribution for Industrial Plants
IEEE Std 493 (1997) Design of Reliable Industrial and Commercial Power Systems
INTERNATIONAL ELECTRO-TECHNICAL COMMISSION (IEC) IEC 60529 (2001-02, Ed. 2.1) Degrees of Protection Provided by Enclosures (IP
Code)
NFPA 101 (2003) Life Safety Code
U.S. ARMY TECHNICAL MANUALS,TM 5-811-1 (1995) Electrical Power Supply and Distribution
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IEC 61558-2-5(1997-12) Safety of power transformers, power supply units and similar Part 2.5: Particular requirements for shaver
transformers and shaver supply units.
Electrical and Structural Building Standards for Construction Projects at Military Bases in Kuwait:
(a) The standards set forth herein are the minimum requirements for the contract. These standards must be followed unless a more
stringent standard is specifically included. In such case the most stringent standard shall be required for contract acceptance.
(b) The contractor, in coordination with the Contracting Officer, the ASG Department of Public Works (DPW) and the requiring activity
shall evaluate, upgrade, build, and/or refurbish buildings (to include tents) to a safe and livable condition. This work may include
refurbishment, construction, alterations, and upgrades. All work shall be in accordance with accepted standards of quality. All
electrical components and wiring shall conform to Kuwait Ministry of Electricity and Water (MEW) standards as well as U.S. National
Electric Code (NEC).
(c) As dictated by the Unified Facilities Criteria (UFC) the contract shall meet:
(1) "The minimum requirements of United States National Fire Protection Association (NFPA) 70,
(2) 2011 National Electrical Code (NEC),
(3) American National Standards Institute (ANSI) C2, and
(4) United States' National Electrical Safety Code (NESC).
(d) These standards must be met when it is reasonable to do so with available materials. When conditions dictate deviation, then
provisions within the International Electrical Code (IEC) or British Standard (BS 7671) shall be followed. Any deviations from the
above necessary to reflect market conditions, shall receive prior written approval from a qualified engineer and the Contracting
Officer.
(e) The use of magnetic ballasts in lighting for new construction or replacement of existing magnetic ballasts during refurbishment,
alterations, or upgrades with new magnetic ballasts is prohibited.
(f) The following internet links provide access to some of these standards:
UFC: http://65.204.17.188/report/doc_ufc.html
NFPA 70: http://www.nfpa.org
NESC: http://www.standards.ieee.org/nesc
Contractor Health and Safety:
(a) Contractors shall comply with all National Electrical Code (NEC 2008), Specifications as outlined, and MIL Standards and
Regulations. All infrastructure to include, but not limited to, living quarters, showers, and restrooms shall be installed and
maintained in compliance with these standards and must be properly supported and staffed to ensure perpetual Code compliance, prevent
hazards and to quickly correct any hazards to maximize safety of those who use or work at the infrastructure. Specifically, the use of
magnetic ballasts in lighting for new construction or replacement of existing magnetic ballasts during refurbishment, alterations or
upgrades with new magnetic ballasts is prohibited. The government has the authority to enter and inspect contractor employee living
quarters at any time to ensure the prime contractor is complying with safety compliance standards outlined in the 2011 National Electric
Code (NEC).
(b) The contractor shall correct all deficiencies within a reasonable amount of time of contractor becoming aware of the deficiency
either by notice from the government or a third party, or discovery by the contractor. Further guidance on mandatory compliance with
NFPA 70: NEC 2011 can be found on the following link http://www.nfpa.org.
Safety of Facilities, Infrastructure and Equipment for Military Operations:
(a) Definition. Discipline Working Group, as used in this clause, means representatives from the DoD Components, as defined in MIL-STD-
3007F, who are responsible for the unification and maintenance of the Unified Facilities Criteria (UFC) documents for a particular
discipline area.
(b) The Contractor shall ensure, consistent with the requirements of the applicable inspection clause in this contract, that the
facilities, infrastructure, and equipment acquired, constructed, installed, repaired, maintained, or operated under this contract comply
with Unified Facilities Criteria (UFC) 1-200-01 for--
Fire protection;
Structural integrity;
Electrical systems;
Plumbing;
Water treatment;
Waste disposal; and
Telecommunications networks.
(c) The Contractor may apply a standard equivalent to or more stringent than UFC 1-200-01 upon a written determination of the
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acceptability of the standard by the Contracting Officer with the concurrence of the relevant Discipline Working Group.
(End of Clause)
65 252.225-7993 PROHIBITION ON CONTRACTING WITH THE ENEMY IN THE UNITED STATES JAN/2012
(DEV 2012- CENTRAL COMMAND THEATER OF OPERATIONS (DEVIATION 2012-O0005)
O0005)
(a) The Contractor is required to exercise due diligence to ensure that none of the funds received under this contract are provided,
directly or indirectly, to a person or entity who is actively supporting an insurgency or otherwise actively opposing U.S. or coalition
forces in a contingency operation.
(b) The Head of the Contracting Activity (HCA) has the authority to--
(1) Terminate this contract for default, in whole or in part, if the HCA determines in writing that the Contractor failed to exercise
due diligence as required by paragraph (a) of this clause; or
(2) Void this contract, in whole or in part, if the HCA determines in writing that any funds received under this Contract have been
provided, directly or indirectly, to a person or entity who is actively supporting an insurgency or otherwise actively opposing U.S. or
coalition forces in a contingency operation.
(End of clause)
66 252.225-7994 ADDITIONAL ACCESS TO CONTRACTOR AND SUBCONTRACTOR RECORDS IN THE JAN/2012
(DEV 2012- UNITED STATES CENTRAL COMMAND THEATER OF OPERATIONS (DEVIATION 2012-
O0005) O0005)
(a) In addition to any other existing examination-of-records authority, the Department of Defense is authorized to examine any records
of the Contractor to the extent necessary to ensure that funds available under this Contract are not--
(1) Subject to extortion or corruption; or
(2) Provided, directly or indirectly, to persons or entities that are actively supporting an insurgency or otherwise actively opposing
United States or coalition forces in a contingency operation.
(b) The substance of this clause, including this paragraph (b), is required to be included in subcontracts under this Contract that have
an estimated value over $100,000.
(End of clause)
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LIST OF ATTACHMENTS
List of Number List of Number
Addenda Title Date of Pages Transmitted By Addenda Title Date of Pages Transmitted By ________________ ____________________________________________________________ _______________ ____________ _______________ ________________ ____________________________________________________________ _______________ ____________ _______________
Exhibit A DATA ITEM A001 - START WORK MEETING REPORT 09-JUL-2012 002 EMAIL
Exhibit B DATA ITEM B001 - MONTHLY STATUS REPORT 09-JUL-2012 002 EMAIL
Exhibit C DATA ITEM C001 - SHELTER GUIDE REPORT 09-JUL-2012 002 EMAIL
Exhibit D DATA ITEM D001 - SHELTER SPECIFICATION REPORT 09-JUL-2012 002 EMAIL
Attachment 0001 PERFORMANCE WORK STATEMENT (PWS) 09-JUL-2012 017 EMAIL
Attachment 0002 NOTIONAL SKETCH 13-SEP-2012 001 EMAIL
Attachment 0003 BSB-N SUPPORT TO KEEP MEMORANDUM 12-SEP-2012 004 EMAIL
Attachment 0004 GENERAL ORDER NUMBER 1B (GO-1B) 13-MAR-2006 006 EMAIL
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REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS
1 252.203-7005 REPRESENTATION RELATING TO COMPENSATION OF FORMER DOD OFFICIALS NOV/2011
2 252.225-7031 SECONDARY ARAB BOYCOTT OF ISRAEL JUN/2005
3 252.225-7042 AUTHORIZATION TO PERFORM APR/2003
4 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS FEB/2012
Administrative proceeding means a non-judicial process that is adjudicatory in nature in order to make a determination of fault or
liability (e.g., Securities and Exchange Commission Administrative Proceedings, Civilian Board of Contract Appeals Proceedings, and
Armed Services Board of Contract Appeals Proceedings). This includes administrative proceedings at the Federal and State level but only
in connection with performance of a Federal contract or grant. It does not include agency actions such as contract audits, site visits,
corrective plans, or inspection of deliverables.
Federal contracts and grants with total value greater than $10,000,000 means--
(1) The total value of all current, active contracts and grants, including all priced options; and
(2) The total value of all current, active orders including all priced options under indefinite-delivery, indefinite-quantity,
8(a), or requirements contracts (including task and delivery and multiple-award Schedules).
(b) The offeror [ ] has [ ] does not have current active Federal contracts and grants with total value greater than $10,000,000.
(c) If the offeror checked "has" in paragraph (b) of this provision, the offeror represents, by submission of this offer, that the
information it has entered in the Federal Awardee Performance and Integrity Information System (FAPIIS) is current, accurate, and
complete as of the date of submission of this offer with regard to the following information:
(1) Whether the offeror, and/or any of its principals, has or has not, within the last five years, in connection with the award to or
performance by the offeror of a Federal contract or grant, been the subject of a proceeding, at the Federal or State level that resulted
in any of the following dispositions:
(i) In a criminal proceeding, a conviction.
(ii) In a civil proceeding, a finding of fault and liability that results in the payment of a monetary fine, penalty, reimbursement,
restitution, or damages of $5,000 or more.
(iii) In an administrative proceeding, a finding of fault and liability that results in--
(A) The payment of a monetary fine or penalty of $5,000 or more; or
(B) The payment of a reimbursement, restitution, or damages in excess of $100,000.
(iv) In a criminal, civil, or administrative proceeding, a disposition of the matter by consent or compromise with an acknowledgment
of fault by the Contractor if the proceeding could have led to any of the outcomes specified in paragraphs (c)(1)(i), (c)(1)(ii), or
(c)(1)(iii) of this provision.
(2) If the offeror has been involved in the last five years in any of the occurrences listed in (c)(1) of this provision, whether the
offeror has provided the requested information with regard to each occurrence.
(d) The offeror shall post the information in paragraphs (c)(1)(i) through (c)(1)(iv) of this provision in FAPIIS as required through
maintaining an active registration in the Central Contractor Registration database via https://www.acquisition.gov (see 52.204-7).
(End of provision)
5 52.212-3 OFFERORS REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (APR APR/2011
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2012) - ALTERNATE I (APR 2011)
An offeror shall complete only paragraph (b) of this provision if the offeror has completed the annual representations and certificates
electronically via \*HYPERLINK "https://www.acquisition.gov"https://www.acquisition.gov. If an offeror has not completed the annual ___________________________
representations and certifications electronically at the ORCA website, the offeror shall complete only paragraphs (c) through (o) of
this provision.
"Economically disadvantaged women-owned small business (EDWOSB) concern" means a small business concern that is at least 51 percent
directly and unconditionally owned by, and the management and daily business operations of which are controlled by, one or more women
who are citizens of the United States and who are economically disadvantaged in accordance with 13 CFR part 127. It automatically
qualifies as a women-owned small business eligible under the WOSB Program.
"Forced or indentured child labor" means all work or service
(1) Exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for which the worker does
not offer himself voluntarily; or
(2) Performed by any person under the age of 18 pursuant to a contract the enforcement of which can be accomplished by process or
penalties.
"Inverted domestic corporation" as used in this section, means a foreign incorporated entity which is treated as an inverted domestic
corporation under 6 U.S.C. 395(b), i.e., a corporation that used to be incorporated in the United States, or used to be a partnership in
the United States, but now is incorporated in a foreign country, or is a subsidiary whose parent corporation is incorporated in a
foreign country, that meets the criteria specified in 6 U.S.C. 395(b), applied in accordance with the rules and definitions of 6 U.S.C.
395(c). An inverted domestic corporation as herein defined does not meet the definition of an inverted domestic corporation as defined
by the Internal Revenue Code at 26 U.S.C. 7874.
"Manufactured end product" means any end product in Federal Supply Classes (FSC) 1000-9999, except
(8) FSC 9610, Ores;
"Place of manufacture" means the place where an end product is assembled out of components, or otherwise made or processed from raw
"Restricted business operations" means business operations in Sudan that include power production activities, mineral extraction
activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and
Divestment Act of 2007 (Pub. L. 110-174). Restricted business operations do not include business operations that the person (as that
term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate--
(2) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or
are expressly exempted under Federal law from the requirement to be conducted under such authorization;
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(4) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;
"Sensitive technology"--
(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically--
(2) Does not include information or informational materials the export of which the President does not have the authority to regulate
or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).
"Service-disabled veteran-owned small business concern"
(1) Means a small business concern
(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case
of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
(2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined
in 38 U.S.C. 101(16).
"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not dominant in the field
of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria in 13 CFR Part 121 and
size standards in this solicitation.
"Subsidiary" means an entity in which more than 50 percent of the entity is owned--
"Veteran-owned small business concern" means a small business concern
(1) Not less than 51 percent of which is owned by one or more veterans(as defined at 38 U.S.C. 101(2)) or, in the case of any publicly
owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and
"Women-owned business concern" means a concern which is at least 51 percent owned by one or more women; or in the case of any publicly
owned business, at least 51 percent of the its stock is owned by one or more women; and whose management and daily business operations
are controlled by one or more women.
"Women-owned small business concern" means a small business concern --
(1) That is at least 51 percent owned by one or more women or, in the case of any publicly owned business, at least 51 percent of the
stock of which is owned by one or more women; and
"Women-owned small business (WOSB) concern eligible under the WOSB Program" (in accordance with 13 CFR part 127), means a small business
concern that is at least 51 percent directly and unconditionally owned by, and the management and daily business operations of which are
controlled by, one or more women who are citizens of the United States.
(b)(1) Annual Representations and Certifications. Any changes provided by the offeror in paragraph (b)(2) of this provision do not
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automatically change the representations and certifications posted on the Online Representations and Certifications Application (ORCA)
website.
(2) The offeror has completed the annual representations and certifications electronically via the ORCA website accessed through
\*HYPERLINK "https://www.acquisition.gov"https://www.acquisition.gov. After reviewing the ORCA database information, the offeror ___________________________
verifies by submission of this offer that the representations and certifications currently posted electronically at FAR 52.212-3,
Offeror Representations and Certifications--Commercial Items, have been entered or updated in the last 12 months, are current, accurate,
complete, and applicable to this solicitation (including the business size standard applicable to the NAICS code referenced for this
solicitation), as of the date of this offer and are incorporated in this offer by reference (see FAR 4.1201), except for paragraphs
_______________. [Offeror to identify the applicable paragraphs at (c) through (o) of this provision that the offeror has completed for
the purposes of this solicitation only, if any. These amended representation(s) and/or certification(s) are also incorporated in this
offer and are current, accurate, and complete as of the date of this offer. Any changes provided by the offeror are applicable to this
solicitation only, and do not result in an update to the representations and certifications posted electronically on ORCA.]
(c) Offerors must complete the following representations when the resulting contract is to be performed in the United States or its
outlying areas. Check all that apply.
(1) Small business concern. The offeror represents as part of its offer that it
___ is,
___ is not a small business concern.
(2) Veteran-owned small business concern. [Complete only if the offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents as part of its offer that it
___ is,
___ is not a veteran-owned small business concern.
(3) Service-disabled veteran-owned small business concern. [Complete only if the offeror represented itself as a veteran-owned small
business concern in paragraph (c)(2) of this provision.] The offeror represents as part of its offer that it
___ is,
___ is not a service-disabled veteran-owned small business concern.
(4) Small disadvantaged business concern. [Complete only if the offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents, for general statistical purposes, that it
___ is,
___ is not, a small disadvantaged business concern as defined in 13 CFR 124.1002.
(5) Women-owned small business concern. [Complete only if the offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents that it
___ is,
___ is not a women-owned small business concern.
(6) WOSB concern eligible under the WOSB Program. [Complete only if the offeror represented itself as a women-owned small business
concern in paragraph (c)(5) of this provision.] The offeror represents that--
(i) It ___ is, ___ is not a WOSB concern eligible under the WOSB Program, has provided all the required documents to the WOSB
(ii) It ___ is, ___ is not a joint venture that complies with the requirements of 13 CFR part 127, and the representation in
paragraph (c)(6)(i) of this provision is accurate for each WOSB concern eligible under the WOSB Program participating in the joint
venture. [The offeror shall enter the name or names of the WOSB concern eligible under the WOSB Program and other small businesses that
are participating in the joint venture:]
______________________________________________
______________________________________________
Each WOSB concern eligible under the WOSB Program participating in the joint venture shall submit a separate signed copy of the WOSB
representation.
(7) Economically disadvantaged women-owned small business (EDWOSB) concern. [Complete only if the offeror represented itself as a WOSB
concern eligible under the WOSB Program in (c)(6) of this provision.] The offeror represents that--
(i) It ___ is, ___ is not an EDWOSB concern, has provided all the required documents to the WOSB Repository, and no change in
circumstances or adverse decisions have been issued that affects its eligibility; and
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(ii) It ___ is, ___ is not a joint venture that omplies with the requirements of 13 CFR part 127, and the representation in
paragraph (c)(7)(i) of this provision is accurate for each EDWOSB concern participating in the joint venture. [The offeror shall enter
the name or names of the EDWOSB concern and
other small businesses that are participating in the joint venture:]
______________________________________________
______________________________________________
Each EDWOSB concern participating in the joint venture shall submit a separate signed copy of the EDWOSB
representation.
Note: Complete paragraphs (c)(8) and (c)(9) only if this solicitation is expected to exceed the simplified acquisition threshold.
(8) Women-owned business concern (other than small business concern). [Complete only if the offeror is a women-owned business concern
and did not represent itself as a small business concern in paragraph (c)(1) of this provision.]. The offeror represents that it
___ is, a women-owned business concern.
(9) Tie bid priority for labor surplus area concerns. If this is an invitation for bid, small business offerors may identify the labor
surplus areas in which costs to be incurred on account of manufacturing or production (by offeror or first-tier subcontractors) amount
to more than 50 percent of the contract price:
_________________________________________
(10) [Complete only if the solicitation contains the clause at FAR 52.219-23, Notice of Price Evaluation Adjustment for Small
Disadvantaged Business Concerns, or FAR 52.219-25, Small Disadvantaged Business Participation ProgramDisadvantaged Status and Reporting,
and the offeror desires a benefit based on its disadvantaged status.]
(i) General. The offeror represents that either
(A) It ___ is, ___ is not certified by the Small Business Administration as a small disadvantaged business concern and
identified, on the date of this representation, as a certified small disadvantaged business concern in the CCR Dynamic Small Business
Search database maintained by the Small Business Administration (PRO-Net), and that no material change in disadvantaged ownership and
control has occurred since its certification, and, where the concern is owned by one or more individuals claiming disadvantaged status,
the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into account the applicable
exclusions set forth at 13 CFR 124.104(c)(2); or
(B) It ___has, ___ has not submitted a completed application to the Small Business Administration or a Private Certifier to be
certified as a small disadvantaged business concern in accordance with 13 CFR 124, Subpart B, and a decision on that application is
pending, and that no material change in disadvantaged ownership and control has occurred since its application was submitted.
(ii) Joint Ventures under the Price Evaluation Adjustment for Small Disadvantaged Business Concerns. The offeror represents, as
part of its offer, that it is a joint venture that complies with the requirements in 13 CFR 124.1002(f) and that the representation in
paragraph (c)(10)(i) of this provision is accurate for the small disadvantaged business concern that is participating in the joint
venture. [The offeror shall enter the name of the small disadvantaged business concern that is participating in the joint venture:
_____________________________________________.]
(11) HUBZone small business concern. [Complete only if the offeror represented itself as a small business concern in paragraph (c)(1)
of this provision.] The offeror represents, as part of its offer, that--
(i) It ___ is, ___ is not a HUBZone small business concern listed, on the date of this representation, on the List of Qualified
HUBZone Small Business Concerns maintained by the Small Business Administration, and no material changes in ownership and control,
principal office, or HUBZone employee percentage have occurred since it was certified in accordance with 13 CFR Part 126; and
(ii) It ___ is, ___ not a HUBZone joint venture that complies with the requirements of 13 CFR Part 126, and the representation in
paragraph (c)(11)(i) of this provision is accurate for each HUBZone small business concern participating in the HUBZone joint venture.
[The offeror shall enter the names of each of the HUBZone small business concerns participating in the HUBZone joint venture:
_________________________________________.] Each HUBZone small business concern participating in the HUBZone joint venture shall submit
a separate signed copy of the HUBZone representation.
(12) (Complete if the offeror has represented itself as disadvantaged in paragraph (c)(4) or (c)(8) of this provision.) [The offeror
shall check the category in which its ownership falls]:
___ Black American.
___ Hispanic American.
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___ Native American (American Indians, Eskimos, Aleuts, or Native Hawaiians).
___ Asian-Pacific American (persons with origins from Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China, Taiwan,
Laos, Cambodia (Kampuchea), Vietnam, Korea, The Philippines, U.S. Trust Territory or the Pacific Islands (Republic of Palau), Republic
of the Marshall Islands, Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, Guam, Samoa, Macao, Hong
Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru).
___ Subcontinent Asian (Asian-Indian) American (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives
Islands, or Nepal).
___ Individual/concern, other than one of the preceding.
(d) Representations required to implement provisions of Executive Order 11246 --
(1) Previous contracts and compliance. The offeror represents that --
(i) It ___ has, ___ has not, participated in a previous contract or subcontract subject to the Equal Opportunity clause of this
solicitation; and
(ii) It ___ has, ___ has not, filed all required compliance reports.
(2) Affirmative Action Compliance. The offeror represents that --
(i) It ___ has developed and has on file,
___ has not developed and does not have on file, at each establishment, affirmative action programs required by rules and
regulations of the Secretary of Labor (41 CFR parts 60-1 and 60-2), or
(ii) It ___ has not previously had contracts subject to the written affirmative action programs requirement of the rules and
regulations of the Secretary of Labor.
(e) Certification Regarding Payments to Influence Federal Transactions (31 U.S.C. 1352). (Applies only if the contract is expected to
exceed $150,000.) By submission of its offer, the offeror certifies to the best of its knowledge and belief that no Federal appropriated
funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress or an employee of a Member of Congress on his or her behalf in connection with
the award of any resultant contract.
(f) Buy American Act Certificate. (Applies only if the clause at Federal Acquisition Regulation (FAR) 52.225-1, Buy American Act
Supplies, is included in this solicitation.)
(1) The offeror certifies that each end product, except those listed in paragraph (f)(2) of this provision, is a domestic end
product and that for other than COTS items, the offeror has considered components of unknown origin to have been mined, produced, or
manufactured outside the United States. The offeror shall list as foreign end products those end products manufactured in the United
States that do not qualify as domestic end products, i.e., an end product that is not a COTS item and does not meet the component test
in paragraph (2) of the definition of "domestic end product." The terms "commercially available off-the-shelf (COTS) item," "component,"
"domestic end product," "end product," "foreign end product," and "United States" are defined in the clause of this solicitation
entitled "Buy American Act--Supplies."
___________________________________________________
___________________________________________________
[List as necessary]
(g)(1) Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate. (Applies only if the clause at FAR 52.225-3, Buy
American Act -- Free Trade Agreements -- Israeli Trade Act, is included in this solicitation.)
(i) The offeror certifies that each end product, except those listed in paragraph (g)(1)(ii) or (g)(1)(iii) of this provision, is a
domestic end product and that for other than COTS items, the offeror has considered components of unknown origin to have been mined,
produced, or manufactured outside the United States. The terms "Bahrainian, Moroccan, Omani, or Peruvian end product," "commercially
available off-the-shelf (COTS) item," "component," "domestic end product," "end product," "foreign end product," "Free Trade Agreement
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country," "Free Trade Agreement country end product," "Israeli end product," and "United States" are defined in the clause of this
solicitation entitled "Buy American Act-Free Trade Agreements-Israeli Trade Act."
(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other than Bahrainian,
Moroccan, Omani, or Peruvian end products) or Israeli end products as defined in the clause of this solicitation entitled Buy American
Act -- Free Trade Agreements -- Israeli Trade Act:
Free Trade Agreement Country End Products (Other than Bahrainian, Moroccan, Omani, or Peruvian End
Products) or Israeli End Products:
______________________________________________________
______________________________________________________
[List as necessary]
(iii) The offeror shall list those supplies that are foreign end products (other than those listed in paragraph (g)(1)(ii) or this
provision) as defined in the clause of this solicitation entitled Buy American Act -- Free Trade Agreements -- Israeli Trade Act. The
offeror shall list as other foreign end products those end products manufactured in the United States that do not qualify as domestic
end products, i.e., an end product that is not a COTS item and does not meet the component test in paragraph (2) of the definition of
"domestic end product."
________________________________________________________
________________________________________________________
[List as necessary]
(2) Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate, Alternate I. If Alternate I to the clause at FAR
provision:
solicitation entitled Buy American Act -- Free Trade Agreements -- Israeli Trade Act:
Line Item No.:
________________________________________________
[List as necessary]
(3) Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate, Alternate II. If Alternate II to the clause at FAR
provision:
(g)(1)(ii) The offeror certifies that the following supplies are Canadian end products or Israeli end products as defined in the
_____________________________________________________
_____________________________________________________
[List as necessary]
(4) Trade Agreements Certificate. (Applies only if the clause at FAR 52.225-5, Trade Agreements, is included in this solicitation.)
(i) The offeror certifies that each end product, except those listed in paragraph (g)(4)(ii) of this provision, is a U.S.-made or
designated country end product as defined in the clause of this solicitation entitled Trade Agreements.
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(ii) The offeror shall list as other end products those end products that are not U.S.-made or designated country end products.
Other End Products
_______________________________________________________
_______________________________________________________
[List as necessary]
(iii) The Government will evaluate offers in accordance with the policies and procedures of FAR Part 25. For line items covered by
the WTO GPA, the Government will evaluate offers of U.S.-made or designated country end products without regard to the restrictions of
the Buy American Act. The Government will consider for award only offers of U.S.-made or designated country end products unless the
Contracting Officer determines that there are no offers for such products or that the offers for such products are insufficient to
fulfill the requirements of the solicitation.
(h) Certification Regarding Responsibility Matters (Executive Order 12689). (Applies only if the contract value is expected to exceed
the simplified acquisition threshold.) The offeror certifies, to the best of its knowledge and belief, that the offeror and/or any of
its principals--
(1) ___ Are, ___ are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by
any Federal agency;
(2) ___ Have, ___ have not, within a three-year period preceding this offer, been convicted of or had a civil judgment rendered
against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a Federal,
state or local government contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of
offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax
evasion, violating Federal criminal tax laws, or receiving stolen property;
(3) ___ Are, ___ are not presently indicted for, or otherwise criminally or civilly charged by a Government entity with, commission of
any of these offenses enumerated in paragraph (h)(2) of this clause; and
(4) ___ Have, ___ have not, within a three-year period preceding this offer, been notified of any delinquent Federal taxes in an
amount that exceeds $3,000 for which the liability remains unsatisfied.
finally determined if there is a pending administrative or judicial challenge. In the case of a judicial challenge to the liability, the
liability is not finally determined until all judicial appeal rights have been exhausted.
(B) The taxpayer is delinquent in making payment. A taxpayer is delinquent if the taxpayer has failed to pay the tax liability
when full payment was due and required. A taxpayer is not delinquent in cases where enforced collection action is precluded.
(ii) Examples.
(A) The taxpayer has received a statutory notice of deficiency, under I.R.C. Sec. 6212, which entitles the taxpayer
to seek Tax Court review of a proposed tax deficiency. This is not a delinquent tax because it is not a final tax liability. Should the
taxpayer seek Tax Court review, this will not be a final tax liability until the taxpayer has exercised all judicial appeal rights.
(B) The IRS has filed a notice of Federal tax lien with respect to an assessed tax liability, and the taxpayer has been issued a
notice under I.R.C. Sec. 6320 entitling the taxpayer to request a hearing with the IRS Office of Appeals contesting the lien filing,
and to further appeal to the Tax Court if the IRS determines to sustain the lien filing. In the course of the hearing, the taxpayer is
entitled to contest the underlying tax liability because the taxpayer has had no prior opportunity to contest the liability. This is not
a delinquent tax because it is not a final tax liability. Should the taxpayer seek tax court review, this will not be a final tax
liability until the taxpayer has exercised all judicial appeal rights.
(C) The taxpayer has entered into an installment agreement pursuant to I.R.C. Sec. 6159. The taxpayer is making timely payments
and is in full compliance with the agreement terms. The taxpayer is not delinquent because the taxpayer is not currently required to
make full payment.
(D) The taxpayer has filed for bankruptcy protection. The taxpayer is not delinquent because enforced collection action is stayed
under 11 U.S.C. 362 (the Bankruptcy Code).
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(i) Certification Regarding Knowledge of Child Labor for Listed End Products (Executive Order 13126). [The Contracting Officer must list
in paragraph (i)(1) any end products being acquired under this solicitation that are included in the List of Products Requiring
Contractor Certification as to Forced or Indentured Child Labor, unless excluded at 22.1503(b).]
(1) Listed End Product
Listed End Product Listed Countries of Origin
________________________________________________________________
________________________________________________________________
(2) Certification. [If the Contracting Officer has identified end products and countries of origin in paragraph (i)(1) of this
provision, then the offeror must certify to either (i)(2)(i) or (i)(2)(ii) by checking the appropriate block.]
[ ] (i) The offeror will not supply any end product listed in paragraph (i)(1) of this provision that was mined, produced, or
manufactured in the corresponding country as listed for that product.
[ ] (ii) The offeror may supply an end product listed in paragraph (i)(1) of this provision that was mined, produced, or
manufactured in the corresponding country as listed for that product. The offeror certifies that is has made a good faith effort to
determine whether forced or indentured child labor was used to mine, produce, or manufacture any such end product furnished under this
contract. On the basis of those efforts, the offeror certifies that it is not aware of any such use of child labor.
(j) Place of manufacture. (Does not apply unless the solicitation is predominantly for the acquisition of manufactured end products.)
For statistical purposes only, the offeror shall indicate whether the place of manufacture of the end products it expects to provide in
response to this solicitation is predominantly
(1) [ ] In the United States (Check this box if the total anticipated price of offered end products manufactured outside the united
States); or
(2) [ ] Outside the United States.
(k) Certificates regarding exemptions from the application of the Service Contract Act. (Certification by the offeror as to its
compliance with respect to the contract also constitutes its certification as to compliance by its subcontractor if it subcontracts out
the exempt services.) [The contracting officer is to check a box to indicate if paragraph (k)(1) or (k)(2) applies.]
(1) [ ] Maintenance, calibration, or repair of certain equipment as described in FAR 22.1003-4(c)(1). The offeror [ ] does [ ] does
not certify that
(i) The items of equipment to be serviced under this contract are used regularly for other than Governmental purposes and are sold
or traded by the offeror (or subcontractor in the case of an exempt subcontract) in substantial quantities to the general public in the
course of normal business operations;
(ii) The services will be furnished at prices which are, or are based on, established catalog or market prices (see FAR 22.1003-
4(c)(2)(ii)) for the maintenance, calibration, or repair of such equipment; and
(iii) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract will be the same
as that used for these employees and equivalent employees servicing the same equipment of commercial customers.
(2) [ ] Certain services as described in FAR 22.1003-4(d)(1). The offeror [ ] does [ ] does not certify that
(i) The services under the contract are offered and sold regularly to non-Governmental customers, and are provided by the offeror
(or subcontractor in the case of an exempt subcontract) to the general public in substantial quantities in the course of normal business
operations;
(ii) The contract services will be furnished at prices that are, or are based on, established catalog or market prices (see FAR
22.1003-4(d)(2)(iii));
(iii) Each service employee who will perform the services under the contract will spend only a small portion of his or her time (a
monthly average of less than 20 percent of the available hours on an annualized basis, or less than 20 percent of available hours during
the contract period if the contract period is less than a month) servicing the Government contract; and
(iv) The compensation (wage and fringe benefits) plan for all service employees performing work under the contract is the same as
that used for these employees and equivalent employees servicing commercial customers.
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(i) If the offeror does not certify to the conditions in paragraph (k)(1) or (k)(2) and the Contracting Officer did not attach a
Service Contract Act wage determination to the solicitation, the offeror shall notify the Contracting Officer as soon as possible; and
(ii) The Contracting Officer may not make an award to the offeror if the offeror fails to execute the certification in paragraph
(k)(1) or (k)(2) of this clause or to contact the Contracting Officer as required in paragraph (k)(3)(i) of this clause.
(l) Taxpayer Identification Number (TIN) (26 U.S.C. 6109, 31 U.S.C. 7701). (Not applicable if the offeror is required to provide this
information to a central contractor registration database to be eligible for award.)
(1) All offerors must submit the information required in paragraphs (l)(3) through (l)(5) of this provision to comply with debt
collection requirements of 31 U.S.C. 7701(c) and 3325(d), reporting requirements of 26 U.S.C. 6041, 6041A, and 6050M, and implementing
regulations issued by the Internal Revenue Service (IRS).
(2) The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the offeror's relationship
with the Government (31 U.S.C. 7701(c)(3)). If the resulting contract is subject to the payment reporting requirements described in FAR
4.904, the TIN provided hereunder may be matched with IRS records to verify the accuracy of the offeror's TIN.
* TIN: ____________________.
* TIN has been applied for.
* TIN is not required because:
* Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively connected
with the conduct of a trade or business in the United States and does not have an office or place of business or a fiscal paying agent
* Offeror is an agency or instrumentality of a foreign government;
* Offeror is an agency or instrumentality of the Federal Government.
* Sole proprietorship;
* Partnership;
* Corporate entity (not tax-exempt);
* Corporate entity (tax-exempt);
* Government entity (Federal, State, or local);
* Foreign government;
* International organization per 26 CFR 1.6049-4;
* Other ____________________.
(5) Common parent.
* Offeror is not owned or controlled by a common parent;
* Name and TIN of common parent:
Name ____________________.
TIN ____________________.
(m) Restricted business operations in Sudan. By submission of its offer, the offeror certifies that the offeror does not conduct any
restricted business operations in Sudan.
(n) Prohibition on Contracting with Inverted Domestic Corporations--
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(1) Relation to Internal Revenue Code. An inverted domestic corporation as herein defined does not meet the definition of an inverted
domestic corporation as defined by the Internal Revenue Code 25 U.S.C. 7874.
(o) Sanctioned activities relating to Iran. (1) The offeror shall email questions concerning sensitive technology to the Department of
State at CISADA106@state.gov.
(2) Representation and Certification. Unless a waiver is granted or an exception applies as provided in paragraph (o)(3) of this
provision, by submission of its offer, the offeror--
(i) Represents, to the best of its knowledge and belief, that the offeror does not export any sensitive technology to the government
of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran; and
(ii) Certifies that the offeror, or any person owned or controlled by the offeror, does not engage in any activities for which
sanctions may be imposed under section 5 of the Iran Sanctions
Act.
(3) The representation and certification requirements of paragraph (o)(2) of this provision do not apply if--
(i) This solicitation includes a trade agreements certification (e.g., 52.212-3(g) or a comparable agency provision); and
(End of Provision)
6 52.225-18 PLACE OF MANUFACTURE SEP/2006
'Manufactured end product' means any end product in Federal Supply Classes (FSC) 1000-9999, except
(8) FSC 9610, Ores;
'Place of manufacture' means the place where an end product is assembled out of components, or otherwise made or processed from raw
(b) For statistical purposes only, the offeror shall indicate whether the place of manufacture of the end products it expects to provide
in response to this solicitation is predominantly
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[ ] (1) In the United States (Check this box if the total anticipated price of offered end products manufactured in the United States
exceeds the total anticipated price of offered end products manufactured outside the United States); or
[ ] (2) Outside the United States.
(End of provision)
7 252.209-7999 REPRESENTATION BY CORPORATIONS REGARDING AN UNPAID DELINQUENT TAX JAN/2012
(DEV 2012- LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW (DEVIATION
O0004) 2012-O0004)
(a) In accordance with sections 8124 and 8125 of Division A of the Consolidated Appropriations Act, 2012, (Pub. L. 112-74) none of the
funds made available by that Act may be used to enter into a contract with any corporation that--
(1) Has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been
exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for
collecting the tax liability, where the awarding agency is aware of the unpaid tax liability, unless the agency has considered
suspension or debarment of the corporation and made a determination that this further action is not necessary to protect the interests
of the Government.
(2) Was convicted of a felony criminal violation under any Federal law within the preceding 24 months, where the awarding agency is
aware of the conviction, unless the agency has considered suspension or debarment of the corporation and made a determination that this
action is not necessary to protect the interests of the Government.
(b) The Offeror represents that--
(1) It is [ ] is not [ ] a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and
administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with
the authority responsible for collecting the tax liability,
(2) It is [ ] is not [ ] a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24
months.
(End of provision)
8 252.212-7000 OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS JUN/2005
(1) Foreign person means any person other than a United States person as defined in Section 16(2) of the Export Administration Act of
1979 (50 U.S.C. App. Sec. 2415).
(2) United States means the 50 States, the District of Columbia, outlying areas, and the outer Continental Shelf as defined in 43
U.S.C. 1331.
(3) United States person is defined in Section 16(2) of the Export Administration Act of 1979 and means any United States resident or
national (other than an individual resident outside the United States and employed by other than a United States person), any domestic
concern (including any permanent domestic establishment of any foreign concern), and any foreign subsidiary or affiliate (including any
permanent foreign establishment) of any domestic concern which is controlled in fact by such domestic concern, as determined under
regulations of the President.
(b) Certification. By submitting this offer, the Offeror, if a foreign person, company or entity, certifies that it
(1) Does not comply with the Secondary Arab Boycott of Israel; and
(2) Is not taking or knowingly agreeing to take any action, with respect to the Secondary Boycott of Israel by Arab countries, which
50 U.S.C. App. Sec. 2407(a) prohibits a United States person from taking.
(c) Representation of Extent of Transportation by Sea. (This representation does not apply to solicitations for the direct purchase of
ocean transportation services).
(1) The Offeror shall indicate by checking the appropriate blank in paragraph (c)(2) of this provision whether transportation of
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supplies by sea is anticipated under the resultant contract. The term supplies is defined in the Transportation of Supplies by Sea
clause of this solicitation.
(2) Representation. The Offeror represents that it
[ ] Does anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this
solicitation.
[ ] Does not anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from
this solicitation.
(3) Any contract resulting from this solicitation will include the Transportation of Supplies by Sea clause. If the Offeror represents
that it will not use ocean transportation, the resulting contract will also include the Defense Federal Acquisition Regulation
Supplement clause at 252.247-7024, Notification of Transportation of Supplies by Sea.
(End of provision)
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INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS
PROPOSAL SUBMISSION
1. INTRODUCTION. The Offerors proposal shall be submitted in hard copy, with accompanying digital copies in Microsoft Software ____________
versions 2003-2007, as set forth below. The RFP shall provide the Government address and receipt for proposal submittal.
The offerors proposal shall consist of four volumes. The Volumes are I Technical, II Price, III Past Performance, and IV
Solicitation, Offer and Award Documents and Certifications/Representations. Files shall not contain classified data. The use of
hyperlinks in proposals is prohibited.
Offerors are cautioned that parroting of the Technical requirements of the PWS with a statement of intent to perform does not reflect an
understanding of the requirement or capability to perform. Offerors are responsible for including sufficient details to permit a
complete and accurate evaluation of each proposal. Proprietary information shall be clearly marked.
2. PROPOSAL SUBMISSION REQUIREMENTS ________________________________
a. Each volume shall be submitted in a separate three-ring binder. Any pages that are changed (as a result of
negotiations or proposal revisions) should be of a different color and have changed information clearly marked by a
vertical line in the right margin of the page. The revised pages shall be dated. Each binder shall be clearly labeled with
its Title and a copy number (e.g., copy 1 of 4).
b. Printing should be single spaced. Each paragraph shall be separated by at least one blank line. A standard, 12-point
minimum font size applies. Arial or New Times Roman fonts are required. Tables and illustrations may use a reduced font
size no less than 8-point and may be landscape.
c. A proposal limitation of 25 pages is applicable to the Technical Volume. However, there is no proposal page
limitation for this procurement. The following volumes of material shall be submitted:
PRINTED DIGITAL MAXIMUM
VOLUME TITLE ____________ COPIES COPIES PAGES
I Technical Original + 1 2 25*
II Price Original + 1 2 N/A
III Past Performance Original + 1 2 N/A
IV Solicitation, Offer and Award Original + 1 2 N/A
Documents and Certification/
Representations Original
*NOTE: Pages that exceed the required page limitations will not be evaluated. Additional pages over the maximum allowed will be removed
or not read and will not be evaluated by the Government.
d. All submissions must be received by the closing date and time identified in the RFP, to the following address:
Grace A. Battle
Contracting Officer
Army Contracting Command- New Jersey
McDonald Hall
5418 S. Scott Plaza
Fort Dix, NJ 08640
609-562-6278
e. Electronic proposal submissions via email or fax will not be accepted. Offers shall be mailed through a
commercial/Government carrier. The Procuring Contracting Officer (PCO) and the Contract Specialists are the sole points of
contact for this acquisition. Address all questions or concerns you may have to the PCO and Contract Specialist. All
questions regarding this RFP shall be submitted in writing via electronic mail to both:
i. Grace Battle, Contracting Officer, at grace.a.battle.civ@mail.mil; and
ii. Anthony Mauriello, Contract Specialist, at Anthony.o.mauriello.civ@mail.mil; ________________________________
3. PROPOSAL FILES. ______________
a)Format. The submission shall be clearly indexed and logically assembled. Each volume shall be clearly identified and ______
shall begin at the top of a page. All pages of each volume shall be appropriately numbered and identified by the complete company name,
date and RFP number in the header and/or footer. A proposal page limitation of 25 pages is applicable to this procurement. A Table of
Contents should be created. All files will be submitted as either a Microsoft (MS) Excel (.XLS) document compatible with Microsoft
Office 2007 or Acrobat (PDF) file. Offerors should convert all MS Word Documents into Acrobat (PDF) files. All pricing worksheets
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shall be submitted in Microsoft Excel (.XLS). These files shall use the following page setup parameters:
Margins Top, Bottom, Left, Right - 1
Gutter 0
From Edge Header, Footer - 0.5
Page Size, Width 8.5
Page Size, Height 11
NOTE: 11X17 folded pages are acceptable for tables/graphic representations; however, each 11X17 page counts as two pages.
The following additional restrictions apply:
b) File Packaging. All of the proposal files shall be compressed (zipped) into one file entitled {company name_Proposal _______________
Volume_Date.zip} using WinZip version 6.2 or later or as separate uploads in their native format, i.e. doc, xls, ppt, etc., and provided
on CDs or DVDs. Files shall be in read-only format, using PDF files. All price breakdown information to aide in the cost/price
evaluation shall be submitted in Microsoft Office Excel Read/Write format and viewable in Microsoft Excel 2007. Each disc shall be
externally labeled with the volume number, date, and the Offerors name. **Please note Self extracting exe files are no longer
accepted. ** If the hard-copy proposal differs from the electronic version, the hard copy will govern.
c) Content Requirements. All information shall be confined to the appropriate file. The offeror shall confine submissions to _____________________
essential matters, sufficient to define the proposal in a precise manner, to permit a complete and accurate evaluation of each proposal.
Each file of the proposal shall consist of a Table of Contents, Summary Section, and the Narrative discussion. The Summary Section shall
contain a brief abstract of the file. Proprietary information shall be clearly marked. The following shall be included in the Narrative
discussion:
i. VOLUME I Technical. The volume shall be organized into the following sections: ____________________
1. Section 1 - Structure and Design Flexibility. ____________________________________________
- Shelters must be suitable for installation within a desert environment (Kuwait) on semi-level surfaces
such as a compacted sand gravel mix with minimal site preparation work in accordance with Performance Work
Statement.
- Proposal demonstrates techniques and use of key materials, outputs and interfaces to provide shelter
structures that are highly insulated, rigid walled shelters that are erectable and re-locatable by
soldiers.
- The contractor shall address relative times for set-up and disassembly in their proposal, labor
requirements, and the method for repackaging and shipping. Proposal should address and provide data that
shelters are capable of being assembled, disassembled, and re-assembled at least seven times without
degradation to functional use and provides a minimum useful life of 20 years.
- The proposal assures that the specific government requirements are addressed and met. Meets all critical
requirements in proposed design flexibility in PWS. No special tools are required to assemble the shelters.
- The contractor provides acceptable drawings and specifications for both the one- and two-story shelters.
- The contractor indicates that their design minimizes tripping hazards for their shelter entry ways.
2. Section 2 - Energy Efficiency. _____________________________
- Offerors must specifically address aspects of product that improves overall energy conservation benefits.
- Solid data shall be provided that provides information on critical resource savings and efficiencies.
Product should demonstrate exceptional attention to energy efficiency either through design, insulation,
materials, sustainability or conservation.
- Proposal should addresses how the ECU is easily installed and maintained. Maintenance can be performed
by knowledgeable personnel with common tools.
3. Section 3 Schedule. ___________________
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- The Government acceptable timeline for installation of shelters is eight months.
- Proposals should address ability to expedite that timeline.
- The contractor shall provide a comprehensive production schedule.
ii. VOLUME II PRICE. _________________
The Offeror shall provide a completed Section B, which includes FFP unit prices for Contract Line Item Number (CLIN) 0001 and 0002. FFP
unit prices are required for all range quantities.
The proposed unit prices for CLINS 0001 and 0002 shall be inclusive of all fabrication, testing, inspection, packaging and delivery of
the Shelters. The Offeror is not to propose separate prices for CDRLs. Any cost associated with CDRLs will be included as part of the
FFP unit price of the shelter.
iii. VOLUME III PAST PERFORMANCE RISK. This volume shall contain past performance information regarding similar ___________________________________
contracts. Offerors shall submit all Government and/or commercial contracts for the prime offeror and each major subcontractor in
performance or awarded during the past three years, from the issue date of this RFP, which are relevant to the efforts required by this
solicitation. Relevant efforts are defined as services/efforts that are the same as or similar to the effort (as compared to NAICS code
332311) required by the RFP. Data concerning the offeror shall be provided first, followed by each proposed major subcontractor, in
alphabetical order. The Offeror shall also submit the written consent of its major subcontractors to allow the disclosure of its
subcontractors past performance information to the Offeror. This volume shall be organized into the following sections:
1. Contract Descriptions. This section shall include the following information in the following format: ______________________
(a) Contractor/Subcontractor place of performance, CAGE Code and DUNS Number. If the work was performed as a
subcontractor, also provide the name of the prime contractor and Point of Contact (POC) within the prime contractor organization (name,
and current address, email address, and telephone and fax numbers).
(b) Government contracting activity, and current address, Procuring Contracting Officer's name, e-mail
address, telephone and fax numbers.
(c) Governments technical representative/COR, and current email address, telephone and fax numbers.
(d) Government contract administration activity and the Administrative Contracting Officer's name, and
current e-mail address, telephone and fax numbers.
(e) Government contract administration activitys Pre-Award Monitors name, and current e-mail address,
telephone, and fax numbers.
(f) Contract Number and, in the case of Indefinite Delivery type contracts, GSA contracts, and Blanket
Purchase Agreements, include Delivery Order Numbers.
(g) Contract Type (specific type such as Fixed-Price (FP), Cost Reimbursement (CR), Time & Material (T&M),
etc.). In the case of Indefinite Delivery contracts, indicate specific type (Requirements, Definite Quantity, and Indefinite Quantity)
and secondary contract type (FP, CR, T&M, etc.).
(h) Awarded price/cost.
(i) Final or projected final price/cost.
(j) Original delivery schedule, including dates of start and completion of work.
(k) Final, or projected final, delivery schedule, including dates of start and completion of work.
2. Section 2 - Performance. Offerors shall provide a specific narrative explanation of each contract listed in Section 1, ________________________
Contract Description, describing the objectives achieved and detailing how the effort is relevant to the requirements of this RFP.
a. For any contracts that did not/do not meet original schedule or technical performance requirements, provide a
brief explanation of the reason(s) for the shortcomings and any corrective action(s) taken to avoid recurrence. The offerors shall list
each time the delivery schedule was revised and provide an explanation of why the revision was necessary. All Requests for Deviation
and Requests for Waiver shall be addressed with respect to causes and corrective actions. The offerors shall also provide a copy of any
Cure Notices or Show Cause Letters received on each contract listed and a description of any corrective action implemented by the
offeror or proposed subcontractor. The offerors shall indicate if any of the contracts listed were terminated and the type and reasons
for the termination.
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b. For all contracts, the offeror shall provide data on all manufacturing warranty returns. Data shall delineate
total number of warranty returns, number of Could Not Duplicate (CND), number of failures attributable to GFE component failures, and
number and nature of failures attributable to the offerors delivered product.
3. Section 3 Subcontracts. Offerors shall provide an outline of how the effort required by the solicitation will be assigned ________________________
for performance within the offerors corporate entity and among the proposed subcontractors. The information provided for the prime
offeror and each proposed major subcontractor must include the entire company name, company address, CAGE Code, DUNS Number and type of
work to be performed by citing the applicable Government PWS subparagraph number. This includes all subcontractors who will be providing
critical hardware/services or whose subcontract is for more than 10% of the total proposed price.
4. Section 4 New Corporate Entities. New corporate entities may submit data on prior contracts involving its officers and __________________________________
employees. However, in addition to the other requirements in this volume, the Offeror shall discuss in detail the role performed by such
persons in the prior contracts cited. Information should be included in the files described in the sections above.
5. Performance Risk Assessment Questionnaire. For all contracts identified in Section 1, Performance Risk Assessment __________________________________________
Questionnaires (Annex F) must be completed and submitted. The offeror shall complete Part I of the Performance Risk Assessment
Questionnaire and email the questionnaire to both the Government contracting activity and technical representative responsible for the
past/current contract. The POC's shall be instructed to electronically complete Part II of the questionnaire and email the entire
questionnaire to the Contracting Officer within seven calendar days of the release of the RFP, to grace.a.battle.civ@mail.mil. The
offeror shall also email to the Contracting Officer a list of all the POCs who were sent a questionnaire. The Government must receive
this list no later than the proposal due date. The POC List shall be submitted in MS Word for Windows Table Format to include the
following fields: Solicitation Number? Company Name? Contract Number? Government Agency? POC Last Name, First Name? POC Title? POC
Telephone Number? POC Email Address? Date Emailed to POC (month/day).
6. Submissions. Offerors are discouraged from providing points of contact with another contractors? facility, i.e., in case an ____________
offeror (or one of his/her team members) is in a subcontract with another contractor who has submitted a proposal on the same
requirement. Offerors shall provide and submit the prime contract number and all Governmental agency points of contact (POC) in lieu of
subcontract numbers or prime contract POCs in situations as described above.
iv. VOLUME IV (SOLICITATIONs, OFFER AND AWARD DOCUMENTS AND CERTIFICATIONS/REPRESENTATIONS) _______________________________________________________________________________________
Certifications and Representations - Each offeror shall complete (fill-in and signatures) the solicitation sections indicated below
using the file (without modification to the file) provided with the RFP. An authorized official of the firm shall sign the SF 33 and all
certifications requiring original signature. An Acrobat PDF file shall be created to capture the signatures for submission.
Section A Standard Form 33 (SF 33), Solicitation, Offer and Award
Section K Representations, Certifications and Other Statements of Offerors
Solicitations, Offer, Consent Form, Award Documents and Certifications/Representations shall not be addressed separately from that
submitted in VOLUME IV SOLICITATIONS, OFFER AND AWARD DOCUMENTS AND CERTIFICATIONS /REPRESENTATIONS _______________________________________________________________________________________
*** END OF NARRATIVE L0001 ***
1 52.212-1 INSTRUCTIONS TO OFFERORS--COMMERCIAL ITEMS FEB/2012
2 52.215-1 INSTRUCTIONS TO OFFERORS--COMPETITIVE JAN/2004
3 52.215-16 FACILITIES CAPITAL COST OF MONEY JUN/2003
4 252.204-7011 ALTERNATIVE LINE-ITEM STRUCTURE SEP/2011
5 252.215-7008 ONLY ONE OFFER JUN/2012
6 52.216-1 TYPE OF CONTRACT APR/1984
The Government contemplates award of a Firm Fixed Price (FFP) contract resulting from this solicitation.
(End of Provision)
7 52.233-2 SERVICE OF PROTEST SEP/2006
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(a) Protests, as defined in section 33.101 of the Federal Acquisition Regulation, that are filed directly with an agency, and copies of
any protests that are filed with the Government Accountability Office (GAO), shall be served on the Contracting Officer (addressed as
follows) by obtaining written and dated acknowledgment of receipt from Army Contracting Command - Fort Dix, Attn: ACC-NJ-IT (Grace
Battle) 5455 Alabama Avenue, Fort Dix, NJ 08640.
(b) The copy of any protest shall be received in the office designated above within one day of filing a protest with the GAO.
(End of Provision)
8 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE FEB/1998
This solicitation incorporates one or more solicitation provisions by reference, with the same force and effect as if they were given in
full text. Upon request, the Contracting Officer will make their full text available. The offeror is cautioned that the listed
provisions may include blocks that must be completed by the offeror and submitted with its quotation or offer. In lieu of submitting the
full text of those provisions, the offeror may identify the provision by paragraph identifier and provide the appropriate information
with its quotation or offer. Also, the full text of a solicitation provision may be accessed electronically at this/these address(es):
http://www.arnet.gov/far/ or http://www.acq.osd.mil/dpap/dars/index.htm or http://farsite.hill.af.mil/VFAFARa.HTM
9 52.252-5 AUTHORIZED DEVIATIONS IN PROVISIONS APR/1984
(a) The use in this solicitation of any Federal Acquisition Regulation (48 CFR Chapter 1) provision with an authorized deviation is
indicated by the addition of (DEVIATION) after the date of the provision.
(b) The use in this solicitation of any DoD FAR SUPPLEMENT (48 CFR Chapter 2) provision with an authorized deviation is indicated by the
addition of (DEVIATION) after the name of the regulation.
(End of clause)
10 52.233-4000 HQ AMC-LEVEL PROTEST PROGRAM (LS7016) OCT/2011
If you have complaints about this procurement, it is preferable that you first attempt to resolve those concerns with the responsible
contracting officer. However, you can also protest to Headquarters, AMC. The HQ, AMC-Level Protest Program is intended to encourage
interested parties to seek resolution of their concerns within AMC as an Alternative Dispute Resolution forum, rather than filing a
protest with the General Accounting Office or other external forum. Contract award or performance is suspended during the protest to the
same extent, and within the same time periods, as if filed at the GAO. The AMC protest decision goal is to resolve protests within 20
working days from filing. To be timely, protests must be filed within the periods specified in FAR 33.103.
Send protests (other than protests to the contracting officer) to:
Address:
Headquarters U.S. Army Materiel Command
Office of Command Counsel
4400 Martin Road
Rm: A6SE040.001
Redstone Arsenal, AL 35898-5000
Fax: (256) 450-8840
The AMC-level protest procedures are found at:
Web Address: http://www.amc.army.mil/pa/COMMANDCOUNSEL.asp
If Internet access is not available contact the contracting officer or HQ, AMC to obtain the AMC-Level Protest Procedures.
68 74
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CONTINUATION SHEET
PIIN/SIIN MOD/AMD
11 52.242-4000 PARTNERING (LS7024) OCT/2010
(a) In an effort to most effectively accomplish the objectives of this contract, it is proposed that after contract award, the
Government, the contractor, and its major subcontractors will engage in the Partnering process.
(b) Participation in the Partnering process is entirely voluntary and is based upon a mutual commitment between Government and industry
to work cooperatively as a Team to identify and resolve problems and facilitate contract performance. The primary objective of the
process is providing the American soldier with the highest quality supplies/services on time and at a reasonable price. Partnering
requires the parties to look beyond the strict bounds of the contract in order to formulate actions that promote their common goals and
objectives. It is a relationship that is based upon open and continuous communication, mutual trust and respect, and the replacement of
the "us vs. them" mentality of the past with a "win-win" philosophy for the future. Partnering also promotes synergy, creative thinking,
pride in performance, and the creation of a shared vision for success.
(c) After contract award, the Government and the successful offeror will decide whether or not to engage in the Partnering process.
Accordingly, offerors shall not include any anticipated costs associated with the implementation of the Partnering process in their
proposed cost/price (e.g. cost of hiring a facilitator and conducting the Partnering Workshop). If the parties elect to partner, any
costs associated with that process shall be identified and agreed to after contract award.
(d) The establishment of a Partnering arrangement does not affect the legal responsibilities or relationship of the parties and cannot
be used to alter, supplement or deviate from the terms of the contract. Any changes to the contract must be executed in writing by the
(e) Implementation of this Partnering relationship will be based upon the AMC Model Partnering process, as well as the principles and
procedures set forth in the AMC Partnering Guide, which can be found on the AMC website at
http://www.amc.army.mil/army_core/command_counsel/Partnering_Link.asp.
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PIIN/SIIN MOD/AMD
EVALUATION FACTORS FOR AWARD
1 52.215-4003 PARTNERING - FIXED PRICE TYPE CONTRACTS (MS7026) OCT/2010
Any decision to engage in the Partnering process will be made after contract award. Any anticipated costs associated with the
implementation of the Partnering process should not be included in the offerors proposed cost or price. Accordingly, proposed
Partnering efforts will not be evaluated or considered a factor for award, and will not be evaluated or considered for price realism
purposes.
A. BASIS FOR AWARD
The award will be made based on the best overall (i.e., best value) proposal that is determined to be the most beneficial to the
Government, with appropriate consideration given to the three evaluation factors: Technical, Price, and Past Performance. The Technical
factor is significantly more important than the Price factor. The Price Factor is more important than the Past Performance Factor. All
evaluation factors, other than the Price Factor, when combined, are significantly more important than the Price Factor. To receive
consideration for award, a rating of no less than Acceptable must be achieved for the Technical factor (to include all sub-factors).
Offerors will be cautioned that the award may not necessarily be made to the lowest price offered.
B. FACTORS AND SUB-FACTORS TO BE EVALUATED
The following evaluation factors and subfactors will be used to evaluate each proposal: Award will be made to the offeror whose proposal
is most advantageous to the Government based upon an integrated assessment of the evaluation factors and subfactors described below.
1. FACTOR I - TECHNICAL: The Technical factor is further divided into the following subfactors:
a. Shelter Structure and Design Flexibility
b. Energy Efficiency
c. Schedule
The Shelter Structure and Design Flexibility Subfactor is slightly more important than the Energy Efficiency Subfactor. The Energy
Efficiency Subfactor is more important than the Schedule Subfactor.
Evaluation of the offerors proposal shall address each subfactor as it applies to the Performance Work Statement (PWS). A detailed
explanation of the criteria for the evaluation is set forth in the Evaluation Approach, paragraph C of this section. During evaluations
of each proposal, the Government will assign each subfactor an adjectival rating and write a narrative evaluation reflecting the
identified findings.
2. FACTOR II - PRICE: The award will result in a two year IDIQ contract, with FFP delivery orders. A price analysis will be
utilized in the evaluation of this effort.
3. FACTOR III - PAST PERFORMANCE: Each offerors past performance will be reviewed to determine relevancy and confidence
assessment.
C. EVALUATION APPROACH
All proposals shall be subject to evaluation by the Source Selection Team (SST).
1. The overarching evaluation approach for all factors and subfactors is as follows:
a. Adequacy of Response. The proposal will be evaluated to determine whether the offerors methods and approach have ________________________
adequately and completely considered, defined, and satisfied the requirements specified in the solicitation. The proposal will be
evaluated to determine the extent to which each requirement of the solicitation has been addressed in the proposal in accordance with
the proposal submission section of the solicitation.
b. Feasibility of Approach. The proposal will be evaluated to determine whether the offeror's methods and approach to ___________________________
meeting the solicitation requirements provide the
Government with a high level of confidence of successful completion within the required
schedule. In the event that enhancements are proposed, the enhancements will be evaluated to determine whether the approach taken is
feasible and will result in an end product that fully meets or exceeds the RFP requirements.
2. The Technical Factor is divided into the following three subfactors. Marginal level of overall technical approach could
indicate a lack of understanding concerning mission requirements and may result in the entire proposal receiving an unfavorable rating
and/or being eliminated from the competitive range.
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Subfactor 1: This subfactor evaluates the offerors proposed Structure and Design Flexibility Approach. The evaluation will focus on the
offerors extent to which it demonstrates that the specific Government requirements are addressed and met and all critical requirements
in proposed design flexibility are in accordance with the PWS. The proposed shelters must be suitable for installation within a desert
environment with minimal site preparation and the proposal shall address relative times for set-up, disassembly, labor requirements, and
the method for repackaging and shipping that is required. Proposal should address or provide data that the shelters are capable of being
assembled, disassembled, and re-assembled at least seven times without degradation to functional use and provides a minimum useful life
of 20 years. The proposal provides acceptable drawings and specifications for both one-story and two-story shelters. The proposal must
also demonstrate techniques and use of key materials, outputs and interfaces provide shelter structures that are highly insulate, rigid
walled shelters, that are erectable and re-locatable by soldiers. The proposal must also indicate that the design minimizes tripping
hazards for the shelter entry ways.
Subfactor 2: This subfactor evaluates the offerors proposed Energy Efficiency Approach. The proposal specifically addresses aspects of
the shelters that demonstrate overall energy conservation benefits. The proposal shall provide solid data on critical resource savings
efficiencies. Proposal should demonstrate exceptional attention to energy efficiency either through design, insulation, materials,
sustainability, or conservation. The proposal must also demonstrate how the ECU can be easily installed and maintained.
Subfactor 3: This subfactor evaluates the offerors proposed Schedule. The proposal must demonstrate an acceptable timeline for
installation of shelters within eight months and shall provide a comprehensive production schedule. The proposals should address ability
to expedite timeline.
The content of the written proposals and written responses to the Technical Factor Evaluation Notices (ENs), if any, will be
evaluated to determine the degree and extent to which the requirements objectives set forth in the solicitation are satisfied.
Unsupported promises to comply with contractual requirements will not be sufficient. Proposals must contain supporting
rationale for any statements relating to proposed performance. Each proposal will be rated strictly in accordance with its written
content. No assumptions will be made by evaluators regarding areas that are not addressed in the Offerors written proposal or written
responses to Government ENs.
The Technical Factor Ratings, excerpted below focus on the strengths, deficiencies, weaknesses, risks and uncertainties of the offeror's
proposal. The color rating depicts how well the offerors proposal meets the Technical subfactor requirements. Technical subfactor
ratings will be rolled up into an overall rating for the Technical factor.
---------------------------------------------------------------------------------------------
| Color | Rating ______ | Description | ___________
|--------------------------------------------------------------------------------------------|
| Blue | Outstanding | Proposal meets requirements and indicates an exceptional |
| approach and understanding of the requirements. Strengths far |
| outweigh any weaknesses. Risk of unsuccessful performance is low|
|---------------------------------------------------------------------- ---------------------|
| Purple | Good | Proposal meets requirements and indicates a thorough approach |
| and understanding of the requirements. Proposal contains strengths|
| which outweigh any weaknesses. Risk of unsuccessful performance is|
| low
|---------------------------------------------------------------------- ---------------------|
| Green | Acceptable | Proposal meets requirements and indicates an adequate approach |
| and understanding of the requirements. Strengths and weaknesses |
| are offsetting or will have little or no impact on performance |
| Risk of unsuccesful performance is no worse than moderate. |
|---------------------------------------------------------------------- ---------------------|
| Yellow | Marginal | Proposal does not clearly meet requirements and has not |
|---------------------------------------------------------------------- ---------------------|
| Red | Unacceptable | Proposal does not meet requirements and contains one or more |
| deficiencies. Proposal is unawardable. |
|---------------------------------------------------------------------- ---------------------|
3. Price Factor.
a. Prices proposed in Section B will be evaluated for reasonableness by performing a price analysis in accordance with FAR
15.404-1(b). However, if deemed necessary by the Government, a cost analysis may be performed per FAR 15.404-1(c).
71 74
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CONTINUATION SHEET
PIIN/SIIN MOD/AMD
b. The Government will evaluate price for award purposes by adding the Total Weighted Amount for CLIN 0001 and CLIN 0002.
c. The total evaluated amount for each CLIN will be the sum of the weighted amounts for each range for that CLIN.
(i) The proposed unit price within each range will be multiplied by the maximum quantity in that respective range.
(i.e. evaluated quantity).
(ii) The extended amounts will be multiplied by the weight for each range resulting in the weighted amount. The
weighted amounts will be summed and will result in the evaluated price for that CLIN. See the sample table below.
__________________________________________________________________________________________
CLIN |Ranges |Evaluated |Proposed |Extended |Weight | Weighted
| |Quantity |Unit Price|Amount | | Amount
__________________________________________________________________________________________
CLIN 0001 | 01-20 | 20 | $5,000 | $100,000 | 50% | $50,000.00
Single Story | 21-50 | 50 | $65.00 | $225,000 | 50% | $112,500.00
Shelters
__________________________________________________________________________________________
__________________________________________________________________________________________
CLIN 0002 | 01-20 | 20 | $8,000 | $160,000| 15% | $24,000.00
Two Story | 21-50 | 50 | $7,500 | $375,000| 15% | $56,250.00
Shelters | 51-75 | 75 | $7,000 | $525,000| 25% | $131,250.00
| 76-100 | 100 | $6,500 | $650,000| 15% | $97,500.00
| 101-125 | 125 | $6,000 | $750,000| 15% | $112,500.00
| 126-160 | 160 | $5,500 | $880,000| 10% | $88,000.00
| 161-230 | 230 | $5,000 |$1,150,000| 05% | $57,500.00
__________________________________________________________________________________________
__________________________________________________________________________________________
Total Evaluated Price $729,500.00
__________________________________________________________________________________________
NOTE TO OFFEROR: The unit prices contained in the sample above were fabricated for demonstration purposes only and in no way reflect _______________
the unit prices the Government expects to pay.
d. If this solicitation contains the clause at FAR 52.219-4, Notice of Price Evaluation Preference for HUBZone Small
Business Concerns, the HUBZone factor set forth therein will be applied as required to the Total Evaluated Price for all ordering
periods.
e. Price Inconsistencies: A proposal is presumed to represent an Offerors best effort to respond to the solicitation. ______________________
Any inconsistency, whether real or apparent, between promised performance and price, should be explained in the proposal. Any
significant inconsistencies, if unexplained, raise a fundamental issue of the Offerors understanding of the nature and scope of work
required and his/her financial ability to perform the contract, and may be grounds for rejection of the proposal.
f. Unbalanced Pricing: The Government may determine that a proposal is unacceptable if the prices proposed are materially ___________________
unbalanced. Unbalanced pricing exists when, despite an acceptable total evaluated price, one or more contract line items is
significantly overstated or understated as indicated by the application of cost or price analysis techniques. In accordance with FAR
15.404-1(g), a proposal may be rejected if the PCO determines that the lack of balance poses an unacceptable risk to the Government.
4. Past Performance Factor. To ascertain the probability of successfully performing the required efforts of the PWS, the
Government will evaluate the offerors and each major subcontractors record of past and current performance during the past three years.
Evaluation of past performance shall be in accordance with this plan utilizing the forms and questionnaires set forth in Appendix G
a) The Government will focus its inquiries on the Offerors (and major subcontractors) record of performance as it relates
to all solicitation requirements, including cost, schedule, performance and management of subcontractors. Major
subcontractors are defined as members of an offerors overall team who are expected to perform 20% or more of the proposed
effort. A significant achievement, problem, or lack of relevant data in any element of the work can become an important
consideration in the evaluation process. Therefore, offerors will be reminded to include the most recent and relevant
efforts (within the past three years) in their proposal. Absent any recent and relevant past performance history or when
the performance record is so sparse that no meaningful confidence assessment rating can be reasonably assigned, the offeror
will be assigned an unknown confidence rating and its proposal will not be evaluated either favorably or unfavorably on
past performance. The Government may use data provided by the offeror in its proposal and data obtained from other sources,
72 74
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PIIN/SIIN MOD/AMD
including data in Government files or data obtained through interviews with personnel familiar with the contractor and
their current and past performance under Federal, State or Local government or commercial contracts for same or similar
services as compared to the North American Industry Classification System (NAICS) 332311. Data used in conducting
performance risk assessments shall not extend past three years prior to the issue date of the RFP, but may include
performance data generated during the past three years without regard to the contract award date.
b) Offerors shall submit Government and/or commercial contracts for the prime offeror and each major subcontractor in
performance or awarded during the past three years, from the issue date of this RFP, which are relevant to the efforts
required by this RFP. The Government may consider a wide array of information from a variety of sources, but is not
compelled to rely on all of the information available.
c) The past performance factor considers each offeror?s demonstrated recent and relevant record of performance in supplying
products and services that meet the contract requirements. There are two aspects to the past performance evaluation:
relevancy and performance confidence assessment.
(i) RELEVANCY: The first aspect of the past performance evaluation is to assess the offeror?s past performance to _________
determine how relevant a recent effort accomplished by the offeror is to the effort to be acquired through the
source selection. Relevancy is not separately rated, however, the following criteria will be used to establish
what is relevant which shall include similarity of service/support, complexity, dollar value, contract type, and
degree of subcontract/teaming.
---------------------------------------------------------------------------------------------
|--------------------------------------------------------------------------------------------|
| Very Relevant | Present/past performance involved essentially the same scope and |
| magnitude of effort and complexities this solicitation requires.|
|---------------------------------------------------------------------- ---------------------|
| Relevant | Present/past performance effort involved similar scope and |
|---------------------------------------------------------------------- ---------------------|
| Somewhat Relevant | Present/past performance effort involved some of the scope and |
|---------------------------------------------------------------------- ---------------------|
| Not Relevant | Proposal does not clearly meet requirements and has not |
|--------------------------------------------------------------------------------------------|
(ii) QUALITY ASSESSMENT: Assess the quality of the offerors past performance on those recent efforts that were __________________
determined relevant by determining how well the contractor performed on the contracts. Documented results from
Past Performance Questionnaires, interviews, CPARS, and other sources form the support and basis for this
assessment.
(iii) PERFORMANCE CONFIDENCE ASSESSMENT: The final step is for the team to arrive at a single consensus _________________________________
performance confidence assessment for the offeror, selecting the most appropriate rating from the chart below.
This rating considers the assessed quality of the relevant/recent efforts gathered. Ensure the rationale for the
conclusions reached are included.
---------------------------------------------------------------------------------------------
|--------------------------------------------------------------------------------------------|
| Substantial Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a high expectation that the Offeror will |
|---------------------------------------------------------------------- ---------------------|
| Satisfactory Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a reasonable expectation that the Offeror |
| will successfully perform the required effort. |
|---------------------------------------------------------------------- ---------------------|
| Limited Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a low expectation that the Offeror will |
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PIIN/SIIN MOD/AMD
|---------------------------------------------------------------------- ---------------------|
| No Confidence | Based on the Offeror's recent/relevant performance record, |
| the Government has a no expectation that the Offeror will |
|--------------------------------------------------------------------------------------------|
| Unknown Confidence | No recent/relevant performance record is available or the |
| Offeror's performance record is so sparse that no meaningful |
| confidence assessment rating can be reasonably assigned. |
|--------------------------------------------------------------------------------------------|
*** END OF NARRATIVE M0001 ***
74 74
W15QKN-12-R-0070
E--Tactical Energy Efcient Shelters - Federal Business Opportunities: Opportunities
https://www.fbo.gov/index?s=opportunity&mode=form&id=db907dfe34467a812c0af18828fcdc52&tab=ivl&tabmode=list[8/26/2013 10:17:34 PM]
Last Name First Name Contractor Business Types NAICS Codes
Harry
SESOLI NC GROUP I NC.
1002 SE MONTEREY
COMMONS BLVD STE 207
STUART, FL 349963357 USA
Email: haco@sesolinc.com
Phone: 5712592817
For-Prot
Organization,
Veteran Owned
Business,
Manufacturer of
Goods,
Contracts and
Grants
115310, 236210, 236220, 321991, 332311, 332439, 334111,
334210, 334220, 334310, 336992, 423690, 517919, 922120,
922160, 922190, 928110
!!!.......Joe Lopez
PARKI NG BOOTH
COMPANY I NC
13690 VAUGHN ST PACOIMA,
CA 913312315 USA
Email:
jlopez@ameristarbooths.com
Phone: 855-5BOOTHS (526-
6847)
For-Prot
Organization,
Manufacturer of
Goods,
Contracts and
Grants
236210, 238990, 332311, 332322, 332323, 332999, 561621
AAA Advice
Mar vi n Heymann &
Assoc i at es
Consultants Helping to Design
and Build Your Business to Win
and Successfully Perform US
Federal Government Contracts /
Proposal Writing + Much More! /
www.feddesignbuild.com / Pay
After You Win Available / US
Email:
marvin@feddesignbuild.com
Phone: 513-706-8098
Business Development
FedBi zOpps Pr oduc t i vi t y
Tool s
FBO <==>
Outlook/SalesForce/ACT!/Google
Apps
Service
Provider
E--Tactical Energy Efcient Shelters
Sol i c i t at i on Number : W15QKN12R0070
Ofce: Army Contracting Command
Location: ACC - New Jersey
Notice Details Packages I nt er est ed Vendor s Li st
Keywords:
Items 1-20 of 50
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20
50
1
2
www.fboplus.net
Local / State / US
Email: enlightened@c.rr.com
Phone: (888) 783-3676
0 0
FRANK REI LLY
BID PROTEST ATTORNEY ,
GOVERNMENT
PROCUREMENT LAWYER 101
NE Third Avenue, Suite 1500
Fort Lauderdale, FL 33301 US
Email: frank@frankvreilly.com
Phone: 561-400-0072
Service
Provider
541110
Amos George
COMPUTER CABLI NG OF
GA., I NC.
5000 HIGHLANDS PKWY SE
STE 180 SMYRNA, GA
300825123 USA
Email: george@ccofga.com
Phone: 7704370153
Minority-Owned
business, Self-
Certied Small
Disadvantaged
Business, For-
Prot
Organization,
DoT Certied
Disadvantaged
Business
Enterprise,
Manufacturer of
Goods, Black
American
Owned,
Contracts and
Grants
238210, 238990, 331492, 334111, 423410, 423420, 423430,
423440, 423490, 423610, 423690, 423860, 423930, 423620,
425110, 517110, 517911, 517919, 519190, 541490, 541511,
541512, 541519, 541990, 811219
Auclair KD
AUCLAI R & ASSOCI ATES
7402 SOUTH 56TH BENTON
CITY, WA 99320 USA
Email: kda@kda-llc.com
Phone: 3606090627
For-Prot
Organization,
Veteran Owned
Business,
Limited Liability
Company,
Contracts and
Grants
541330, 541611, 541618, 541620, 541690, 541712
Basilice Joseph
OCEANSAFE
3255 BAYSHORE RD
GREENPORT, NY 119442731
USA
Email:
jpb@oceansafesteelsip.com
Phone: 5045234900
For-Prot
Organization,
Contracts and
Grants
236116, 236117, 236118, 236210, 236220, 236115, 238990,
339999
Ben-Zeev Ron
WORLD HOUSI NG
SOLUTI ON I NC
145 CANAL ST NEW SMYRNA
BEACH, FL 321687067 USA
Email:
ronb@worldhousingsolution.com
Phone: 4072217000
For-Prot
Organization,
Contracts and
Grants, S
Corporation
236116, 236210, 236220, 236115, 423390, 444190, 541330,
541340
Bhatti Asif
PAT USA, I NC.
2927 WATERVIEW DR
ROCHESTER HILLS, MI
483094600 USA
Email: asifbhatti@pat-
engineering.com
Phone: 12482992410
For-Prot
Organization,
Contracts and
Grants
221310, 221320, 236210, 236220, 237110, 237120, 237990,
238140, 238290, 238390
ECO BUI LDI NG
PRODUCTS, I NC.
909 W VISTA WAY VISTA, CA
For-Prot
Organization,
Manufacturer of
236116, 236118, 236210, 236220, 236115, 238130, 238170,
238190, 321114, 321211, 321212, 321213, 321214, 321918,
Bruce Nathaniel
920836278 USA
Email: nbruce@ecob.net
Phone: 7607325826
Goods,
Contracts and
Grants
321991, 321992, 321999, 423310, 453930, 541310, 541330,
541340, 624221, 624229
Cawood Jamie
I NTERNATI ONAL
DI SASTER SERVI CES, LLC
703 JOE TAMPLIN IND BLVD
MACON, GA 312177614 USA
Email:
jcawood@idscontainer.com
Phone: 9073605345
For-Prot
Organization,
Limited Liability
Company,
Manufacturer of
Goods,
Contracts and
Grants
221320, 236117, 236210, 236220, 237120, 238910, 321991,
321992, 332311, 336211, 336212, 336999, 423110, 561210,
562991, 624230
Clasing Kiel
OCEANEERI NG
I NTERNATI ONAL, I NC.
7001 DORSEY RD HANOVER,
MD 210761553 USA
Email:
kclasing@oceaneering.com
Phone: 443-749-1384
For-Prot
Organization,
Manufacturer of
Goods,
Contracts and
Grants
332510, 332710, 335314, 336611, 488330, 541330, 541512,
541712
Cole Dawn
KERBEROS
I NTERNATI ONAL, I NC.
19 NORTH MAIN STREET,
SUITE 2711 TEMPLE, TX
765017629 USA
Email:
dawn.cole@kerberosinc.com
Phone: 7136774674
Self-Certied
Small
Disadvantaged
Business, For-
Prot
Organization,
Women-Owned
Small Business,
Woman-Owned
Business, SBA
Certied 8(a)
Program
Participant,
Contracts and
Grants, S
Corporation
334220, 334290, 515111, 517410, 541330, 541512, 541611,
541613, 561612, 611420, 611430, 611519, 611699, 624221,
624230
Colelli Chris
HDT Gl obal
10300 Spotsylvania Ave., Suite
100 Fredericksburg, VA 22408
US
Email:
chris.colelli@hdtglobal.com
Phone: 5404798113
For-Prot
Organization,
Service
Provider,
Manufacturer of
Goods
D'Souza Jeffrey
Or yx I nvest ment s
1220 L Street NW Suite 100-209
Washington, DC 20005-4018 US
Email: jdsouza@oryxinvest.com
Phone: 2026846779
ERDILEK CEM
D VE D ACI L MUDAHALE
EVLERI I NSAAT SANAYI
VE TI CARET AS
Sgtlesme Is Merkezi.
Poyraz Sk. No:1 Da:40
Hasanpasa-KADIKOY
ISTANBUL 34723 TR
Email: cemerdilek@gmail.com
Phone: 905337236909
Foreign Owned
and Located,
For-Prot
Organization,
Manufacturer of
Goods,
Contracts and
Grants
321991, 453930, 624221
CONSTRUCTI ON J OURNAL
LTD
For-Prot
212111, 212112, 221111, 221112, 221113, 221119, 221121,
221122, 221310, 221320, 221330, 236116, 236118, 236210,
236220, 236115, 237110, 237120, 237130, 237310, 237990,
238110, 238120, 238130, 238140, 238150, 238160, 238170,
238190, 238210, 238220, 238290, 238310, 238320, 238330,
Exton Pamela
400 SW 7TH ST STUART, FL
349942923 USA
Email:
p.exton@constructionjournal.com
Phone: 8007855165
Organization,
Contracts and
Grants
238340, 238350, 238390, 238910, 238990, 541110, 541310,
541320, 541330, 541340, 541350, 541360, 541370, 541380,
541620, 541690, 561621, 561710, 561720, 561730, 561740,
561790, 561990, 562111, 562112, 562119, 562211, 562212,
562213, 562219, 562910, 562920, 562991, 562998, 611110,
611210, 611310, 611710, 712110, 712190, 722310, 811211,
811310, 811412, 812930, 921110, 922110, 922140, 922160,
927110
GHALIOUM PHILIP
Gul f Agenc i es Gener al
Tr adi ng and Cont r ac t i ng
Al Mirqab KUWAIT, 1 965 KW
Email:
PHILLIPG@gulfagencies.me
Phone: 96594433963
Gilliland Leonard
NORFLEET L.L.C.
3539 S WINDY RIDGE DR
NAMPA, ID 836864951 USA
Email: butch@noreet.us
Phone: +66-8-1692-9061
For-Prot
Organization,
Limited Liability
Company,
Contracts and
Grants
221310, 221320, 236116, 236117, 236210, 236220, 236115,
237110, 237130, 237310, 237990, 238110, 238120, 238130,
238140, 238150, 238160, 238170, 238190, 238210, 238220,
238290, 238310, 238320, 238330, 238390, 238910, 238990,
562991, 562998, 811111, 811112, 811113, 811118, 811121,
811122, 811191, 811198, 811310
Items 1-20 of 50
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50
1
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https://www.fbo.gov/...&subtabmode=list&_so_list_from9a15dfc9a75119393533747dabcfae37=40&_so_list_from9a15dfc9a75119393533747dabcfae37_page=3[8/26/2013 10:19:07 PM]
Ruprecht Thomas
LEGACY BUI LDI NG
SOLUTI ONS, I NC.
19500 COUNTY RD 142 SOUTH
HAVEN, MN 553829240 USA
Email:
truprecht@legacybuildingsolutions.com
Phone: 941-358-8306
For-Prot Organization,
Contracts and Grants, S
Corporation
236210, 236220, 238120, 332311,
444190, 541330
Russell Marie
SKYBUI LT POWER, I NC.
2425 WILSON BLVD SUITE 230
ARLINGTON, VA 222013848 USA
Email: mrussell@skybuilt.com
Phone: 5714035495
Contracts and Grants
221310, 334290, 335122, 335311,
335312, 335999, 541330, 541690,
541712, 624230
Seale Michael
TECHSHOT, I NC.
7200 HIGHWAY 150 GREENVILLE, IN
471249515 USA
Email: mike.seale@insightbb.com
Phone: 5022987308
Contracts and Grants, S
Corporation
336419, 541330, 541712
Singleton Lance
MI L-SPEC GROUP, LLC
5210 NW 187 ST MIAMI GARDENS,
FL 330552383 USA
Email: l.singleton@mil-specgroup.com
Phone: 8556457732
Minority-Owned business,
Self-Certied Small
Disadvantaged Business,
Veteran Owned Business,
Limited Liability Company,
Black American Owned,
Service Disabled Veteran
Owned, Contracts and
Grants
238320, 321991, 321992, 326150,
332311, 423310, 423330, 423390,
423510, 423730, 423740, 444190,
561720, 624230
Tassielli Mario
PRO ELECTRI C OF SUFFOLK
24 CATHERINE AVE SMITHTOWN,
NY 117875601 USA
Email: pro1electric@gmail.com
Limited Liability Company,
221122, 237130, 238160, 238210,
332323, 332410, 333112, 333414,
333923, 333924, 335122, 335129,
335311, 335312, 335911, 335931,
335210, 336120, 336212, 336350,
Keywords:
Items 41-50 of 50
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20
50
3
Phone: 6318850047
336999, 441210, 485999, 541690,
541990, 561730, 562111, 624230,
811219, 811310
Teynor George
TEYNOR DEVELOPMENT CORP.
7003 POST RD STE 202 DUBLIN, OH
430168361 USA
Email: george@td-ems.com
Phone: 6144397872
Self-Certied Small
Disadvantaged Business,
Grants, S Corporation
236220, 237130, 238140, 238210,
238220, 238390, 238990, 316991,
325910, 333314, 333315, 334220,
334511, 334513, 334515, 334516,
335129, 339112, 423120, 423410,
423430, 423490, 423610, 423690,
423810, 423840, 423860, 423620,
443112, 443120, 443130, 532111,
532120, 541310, 541330, 541420,
541690, 541990, 561730, 711510, 712110
Travis Donald
UH STRUCTURES, I NC.
2241 INDUSTRIAL DR STE A
CONNELLSVILLE, PA 154256181
USA
Email: dtravis@ebtechindustrial.com
Phone: 724-628-6100
Manufacturer of Goods,
236220, 321991, 321992, 321999,
332311, 332312, 332439, 333922, 423390
Weatherford James
WEATHERFORD GROUP, I NC.
1166 LUMSDEN TRCE CIR VALRICO,
FL 335944839 USA
Email:
jim.weatherford@wxfordgroup.com
Phone: 931-624-0961
332311, 334220, 541330, 541519,
541611, 541690, 541720, 541910,
541930, 541990, 561110, 561210,
561421, 561611, 561612, 561621,
562920, 611430, 611512, 611519,
611699, 624310, 813110, 922120, 928110
Wilhelm Andrew
LED NORTH AMERI CA, LLC
1020 COMMERCE PARK DR STE A
OAK RIDGE, TN 378308099 USA
Email: info@led-na.com
Phone: 8654813600
Service Provider, Limited
Liability Company,
335122, 335129
Wood Roger
S.W.O.R.D. I NC
540 BLUE SHUTTER RD MOSCOW,
PA 184447621 USA
Email: rwood@sword1inc.com
Phone: 5704060666
Manufacturer of Goods,
313312, 313320, 314999, 321920,
326160, 327213, 332710, 334111,
334112, 334220, 334290, 334413,
334515, 335999, 339999, 423450,
624221, 813910, 921190, 922120,
922140, 922190, 927110, 928110
Items 41-50 of 50
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50
3
Grinnell Walter
I NTERNATI ONAL LOGI STI CS
SYSTEMS, I NC.
2866 SEVEN VALLEYS RD GLEN ROCK,
PA 173277606 USA
Email: waltg@intlogsys.com
Phone: 7173471283
For-Prot
Organization,
Veteran Owned
Business,
Service
Disabled
Veteran
Owned,
Contracts and
Grants, S
Corporation
332710, 333415, 334220, 334290, 334417,
334511, 339999, 423440, 423610, 493190,
512110, 518210, 541330, 541430, 541490,
541511, 541519, 541611, 541614, 541690,
541711, 541712, 541720, 541990, 561210,
611420, 611430, 811121, 811310
Jackson Krystal
BUI LDI NG PERFORMANCE
CENTER, LLC. THE
2651 POYDRAS ST STE 3401 NEW
ORLEANS, LA 701197579 USA
Email: klynnjackson504@aol.com
Phone: 15042610278
Minority-Owned
business, Self-
Certied Small
Disadvantaged
Business, For-
Prot
Organization,
Economically
Disadvantaged
Women-Owned
Small
Business,
Women-Owned
Small
Business,
Woman-Owned
Business,
Veteran Owned
Business, DoT
Certied
Disadvantaged
Business
Enterprise,
Limited Liability
236116, 236118, 236115, 237210, 238110,
238130, 238140, 238160, 238170, 238190,
238210, 238220, 238290, 238310, 238320,
238330, 238340, 238350, 238390, 238910,
238990, 532411, 532490, 561210, 561499,
561720, 561730, 561740, 561790, 561990,
562111, 562112, 562119, 562211, 562213,
562219, 611513
Keywords:
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20
50
2
3
Company,
Black American
Owned,
Contracts and
Grants, SBA
Certied Hub
Zone Firm
Jewell Sara
MODULAR SPACE CORPORATI ON
1200 SWEDESFORD RD BERWYN, PA
193121078 USA
Email: sara.jewell@modspace.com
Phone: 910-599-0799
For-Prot
Organization,
Contracts and
Grants
236220, 321992, 327390, 332311, 531120,
532490
Johnson Brian
SERENUS J OHNSON PORTABLES,
LLC
3520 DAVENPORT AVE SAGINAW, MI
486020000 USA
Email: bjohnson@sjohnsonportables.com
Phone: 9896861900
Self-Certied
Small
Disadvantaged
Business, For-
Prot
Organization,
Limited Liability
Company,
Manufacturer of
Goods,
Contracts and
Grants
332311, 621493, 624221, 624230
Johnson O.
VETERANS CONTRACT SERVI CES
LLC
819 GRANDBERRY ST JACKSON, MS
392137722 USA
Email:
o.e.johnson@veteranscontractservices.us
Minority-Owned
business, Self-
Certied Small
Disadvantaged
Business, For-
Prot
Organization,
Labor Surplus
Area Firm,
Veteran Owned
Business,
Limited Liability
Company,
Manufacturer of
Goods, Black
American
Owned, Service
Disabled
Veteran
Owned,
Contracts and
Grants
236210, 237110, 238110, 238120, 238910,
484121, 485310, 485991, 485999, 492110,
561210, 561330, 561720, 561730, 562111,
562112, 562119, 562211
karama Ali
A& K I NTERNATI ONAL GENERAL
TRADI NG & CONTRACTI NG CO.
KUWAIT FREE TRADE ZONE - BLDG. A,
AL-ARGAN KUWAIT KWT
Email: projects@ak-int.com
Phone: 96599744558
Foreign Owned
and Located,
Other Not-for-
Prot
Organization,
Service
Provider,
Woman-Owned
Business,
Contracts
236220, 237310, 238120, 238210, 238220,
238390, 423110, 423210, 423320, 423420,
423730, 423740, 423830, 423840, 423860,
423910, 423990, 424120, 424420, 424450,
488510, 493110, 493120, 523120, 532112
Langner T.J.
VANTEM MODULAR, LLC
710 FM 306 NEW BRAUNFELS, TX
781302548 USA
Email: tj.langner@vantempanels.com
Phone: 8306321500
For-Prot
Organization,
Limited Liability
Company,
Manufacturer of
Goods,
Contracts and
236210, 236220, 321991, 332311, 339999,
423390, 444190, 624221, 624230
Grants
Mirabel Edmundo
THE BRI DGE GEN. TRAD. & CONT.
CO. WLL.
FIRST RESIDENCE BUILDING NO.5
DASMA 35152 KWT
Email:
edmundo.mirabel@bridgekuwait.com
Phone: +965 60964530
Foreign Owned
and Located,
For-Prot
Organization,
Contracts and
Grants
221310, 221320, 221330, 236116, 236210,
236220, 236115, 237110, 237130, 237990,
238120, 238140, 238150, 238210, 238220,
238290, 238910, 321212, 332311, 332913,
333415, 333611, 335929, 335999, 336112,
336999, 423390, 423730, 423860, 423620,
441310, 481111, 481112, 481212, 481219,
484110, 484121, 484122, 484210, 484220,
484230, 485113, 485210, 485410, 485510,
485991, 485999, 486990, 487210, 487990,
488119, 488190, 488410, 488490, 488999,
493110, 493190, 517410, 532111, 532112,
532120, 532420, 532490, 541330, 541340,
541513, 541614, 561210, 561320, 561720,
562211, 562998, 811111, 811310, 812320
Mosquito Jose
I MMEDI ATE SUPPLY & SUPPORT
SERVI CES LLC
3350 RIVERWOOD PKWY STE 1900
ATLANTA, GA 303393372 USA
Email: info@immediatesupplyservices.com
Phone: 7707083334
Minority-Owned
business, Self-
Certied Small
Disadvantaged
Business, For-
Prot
Organization,
Veteran Owned
Business,
Limited Liability
Company,
Black American
Owned, Service
Disabled
Veteran
Owned,
Contracts and
Grants
423860, 484121, 488190, 488320, 488490,
488510, 541611, 541612, 541613, 541614,
541620, 541820, 561210, 561311, 561320,
561330, 561990, 611430, 721199, 811111
Ofcer Business
LATVI AN CONNECTI ON GENERAL
T RADI NG AND CONSTRUCTI ON
LLC
AL SHAREEFA BLDG KUWAIT CITY KWT
Email:
keven.barnes@latvianconnectionllc.com
Phone: 96550122072
Self-Certied
Small
Disadvantaged
Business, For-
Prot
Organization,
Veteran Owned
Business,
Limited Liability
Company,
Contracts and
Grants
221330, 236220, 237130, 237990, 238210,
238220, 238910, 332991, 333611, 333612,
333613, 334418, 335312, 335999, 561730,
561990
Self-Certied
Small
Disadvantaged
112111, 112410, 112511, 112920, 113210,
114210, 212221, 212222, 212321, 213114,
221121, 221122, 221310, 221320, 221330,
221114, 221115, 221118, 236210, 236220,
236115, 237110, 237120, 237130, 237210,
237310, 237990, 238110, 238120, 238140,
238150, 238190, 238210, 238220, 238290,
238310, 238320, 238330, 238340, 238350,
238390, 238910, 313110, 314994, 315210,
316210, 321113, 321211, 321213, 321214,
321911, 321912, 321918, 321920, 321991,
321992, 321999, 323120, 327310, 327331,
327332, 327390, 327420, 327120, 331210,
331221, 331222, 331110, 331420, 332111,
332112, 332114, 332311, 332312, 332321,
332322, 332410, 332420, 332431, 332439,
332710, 332721, 332811, 332812, 332813,
332992, 332993, 332999, 332119, 332215,
Ofcer Business
TRADI NG AND CONSTRUCTI ON
LLC
1083 VINE ST #503 HEALDSBURG, CA
954484830 USA
Email:
keven.barnes@LatvianConnectionLLC.com
Phone: 965 5012 2072
Business, For-
Prot
Organization,
Veteran Owned
Business,
Limited Liability
Company,
Manufacturer of
Goods,
Contracts and
Grants
332216, 332994, 336111, 336112, 336611,
336992, 336999, 337211, 337215, 339950,
423110, 423120, 423130, 423140, 423210,
423310, 423320, 423330, 423390, 423410,
423420, 423430, 423440, 423450, 423610,
423710, 423720, 423730, 423740, 423810,
423820, 423830, 423860, 423910, 423620,
424120, 425110, 441110, 441120, 441310,
441320, 441228, 443141, 443142, 444130,
444190, 444210, 444220, 453210, 453220,
481111, 481112, 481211, 481212, 481219,
484110, 484121, 484220, 485113, 485410,
485991, 485999, 488119, 488310, 488320,
488410, 491110, 492110, 493110, 493130,
493190, 517110, 517919, 518210, 524291,
531120, 531130, 531190, 531311, 531312,
532111, 532112, 532120, 532411, 532420,
532490, 561110, 561210, 561410, 561499,
561510, 561621, 561710, 561720, 561730,
561790, 561990, 562111, 562112, 562119,
562212, 562991, 611512, 621910, 624221,
713910, 721110, 721214, 722310, 722320,
722330, 722514, 811111, 811112, 811113,
811118, 811121, 811122, 811191, 811192,
811198, 811412, 812310, 812320, 812332,
813311, 922160
Ofcer Business
TRADI NG AND CONSTRUCTI ON
LLC
1083 VINE ST #503 HEALDSBURG, CA
954484830 USA
Email:
Phone: 965 5012 2072
Self-Certied
Small
Disadvantaged
Business, For-
Prot
Organization,
Veteran Owned
Business,
Limited Liability
Company,
Manufacturer of
Goods,
Contracts and
Grants
112111, 112410, 112511, 112920, 113210,
114210, 212221, 212222, 212321, 213114,
221121, 221122, 221310, 221320, 221330,
221114, 221115, 221118, 236210, 236220,
236115, 237110, 237120, 237130, 237210,
237310, 237990, 238110, 238120, 238140,
238150, 238190, 238210, 238220, 238290,
238310, 238320, 238330, 238340, 238350,
238390, 238910, 313110, 314994, 315210,
316210, 321113, 321211, 321213, 321214,
321911, 321912, 321918, 321920, 321991,
321992, 321999, 323120, 327310, 327331,
327332, 327390, 327420, 327120, 331210,
331221, 331222, 331110, 331420, 332111,
332112, 332114, 332311, 332312, 332321,
332322, 332410, 332420, 332431, 332439,
332710, 332721, 332811, 332812, 332813,
332992, 332993, 332999, 332119, 332215,
332216, 332994, 336111, 336112, 336611,
336992, 336999, 337211, 337215, 339950,
423110, 423120, 423130, 423140, 423210,
423310, 423320, 423330, 423390, 423410,
423420, 423430, 423440, 423450, 423610,
423710, 423720, 423730, 423740, 423810,
423820, 423830, 423860, 423910, 423620,
424120, 425110, 441110, 441120, 441310,
441320, 441228, 443141, 443142, 444130,
444190, 444210, 444220, 453210, 453220,
481111, 481112, 481211, 481212, 481219,
484110, 484121, 484220, 485113, 485410,
485991, 485999, 488119, 488310, 488320,
488410, 491110, 492110, 493110, 493130,
493190, 517110, 517919, 518210, 524291,
531120, 531130, 531190, 531311, 531312,
532111, 532112, 532120, 532411, 532420,
532490, 561110, 561210, 561410, 561499,
561510, 561621, 561710, 561720, 561730,
561790, 561990, 562111, 562112, 562119,
562212, 562991, 611512, 621910, 624221,
713910, 721110, 721214, 722310, 722320,
722330, 722514, 811111, 811112, 811113,
811118, 811121, 811122, 811191, 811192,
811198, 811412, 812310, 812320, 812332,
813311, 922160
Puri Sumit
PRI ME ONE GENERAL TRADI NG &
CONTRACTI NG CO. WLL
OFFICE NO. 3, MEZZAINE 2, CENTRAL
PLAZA BUILDING SALEM AL MUBARAK
STREET SALMIYA 22094 KWT
Email: sales@primeonegroup.com
Phone: 96525730555
Foreign Owned
and Located,
For-Prot
Organization,
Contracts and
Grants
236210, 236220, 237310, 237990, 332311,
332312
Randle Lawrence
XCLUSI VE CONTRACTORS
1808 MEMPHIS ST PHILADELPHIA, PA
191252706 USA
Email: randle456@comcast.net
Phone: 2159061882
Minority-Owned
business, For-
Prot
Organization,
Woman-Owned
Business,
Veteran Owned
Business, Black
American
Owned, Service
Disabled
Veteran
Owned,
Contracts and
Grants, S
Corporation
236116, 236118, 236210, 236220, 236115,
238110, 238120, 238130, 238140, 238150,
238160, 238170, 238190, 238210, 238220,
238310, 238320, 238330, 238340, 238350,
238390, 238910, 238990, 314999, 518210,
541511, 541512, 541513, 541611, 541612,
541613, 541614, 541618, 541921, 541922,
561320, 561730, 611420, 611430, 611519,
624310
Ravelo Mario
BRI STLECONE VENTURES LLC
7717 GILBERT LANE MANOR, TX
786534545 USA
Email: mravelo@falconcontainers.com
Phone: 512-203-5911
Minority-Owned
business, For-
Prot
Organization,
Asian-Pacic
American
Owned, Limited
Liability
Company,
Contracts and
Grants
236220, 332311, 332439, 332999, 423490,
493110, 493130, 493190, 531130, 541519,
541611, 541990, 611699, 611710
Reilly Frank
FRANK REI LLY
GAO Bid Protest Attorney, Government
Procurement Law
Teaming Agreements & GSA Schedule
Help
www.frankvreilly.com
Fort Lauderdale, FL 33334 US
Email: frank@frankvreilly.com
Phone: 561-400-0072
Rentzel Jeffrey
I NTERNATI ONAL LOGI STI CS
SYSTEMS, I NC.
2866 SEVEN VALLEYS RD GLEN ROCK,
PA 173277606 USA
Email: jrentzel@intlogsys.com
Phone: 7173471200
For-Prot
Organization,
Veteran Owned
Business,
Service
Disabled
Veteran
Owned,
Contracts and
Grants, S
Corporation
332710, 333415, 334220, 334290, 334417,
334511, 339999, 423440, 423610, 493190,
512110, 518210, 541330, 541430, 541490,
541511, 541519, 541611, 541614, 541690,
541711, 541712, 541720, 541990, 561210,
611420, 611430, 811121, 811310
Foreign Owned
and Located,
Minority-Owned
business, For-
Prot
Riaz Mohammad
NOON GROUP I NTERNATI ONAL CO
AL SOOR COMPLEX KUWAIT KWT
Email: irfan@noongroupintl.com
Phone: +965 66 534 534/+965 24 344 4541
Organization,
Domestic
Shelter, Service
Provider,
Construction
Firm,
Foundation,
Architecture
and
Engineering
(A&E), Asian-
Pacic
American
Owned,
Community
Development
Corporation,
Community
Development
Corporation
Owned Firm,
Manufacturer of
Goods,
Contracts and
Grants
236210, 236220, 238120, 321991, 332311,
423310, 423390, 423420, 423860, 425120,
484121, 484122, 493110, 531110, 541611,
541612, 561110, 561210
Rice Charlie
LAKESHORE TOLTEST
CORPORATI ON
7310 WOODWARD AVE DETROIT, MI
482023165 USA
Email: charlie.rice@ltccorp.com
Phone: 3135059344
For-Prot
Organization,
Contracts and
Grants
236210, 236220, 237120, 237990, 238210,
541330, 541350, 541380, 541611, 541618,
541690, 561210, 561990, 562910, 611430,
928110, 928120
Rock Matt
ROCK MATERI AL HANDLI NG, I NC
905 W 7TH ST #311 FREDERICK, MD
217018527 USA
Email: sales@rockmaterialhandling.com
Phone: 888-891-2312
For-Prot
Organization,
Veteran Owned
Business,
Contracts and
Grants
238290, 332311, 423390, 423440, 423490,
423830, 423840, 811310
Items 21-40 of 50
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50
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3
E--Tactical Energy Efcient Shelters - W15QKN12R0070 - Federal Business Opportunities: Opportunities
https://www.fbo.gov/index?s=opportunity&mode=form&id=db907dfe34467a812c0af18828fcdc52&tab=core&tabmode=list&print_preview=1[6/6/2013 4:12:23 PM]
Notice Type:
Solicitation
Original Posted Date:
August 31, 2012
Posted Date:
June 5, 2013
Response Date:
June 12, 2013
Original Response Date:
November 15, 2012
Archiving Policy:
Automatic, on specied date
Original Archive Date:
May 30, 2013
Archive Date:
June 17, 2013
Original Set Aside:
Set Aside:
Classication Code:
E -- Purchase of structures & facilities
NAICS Code:
332 -- Fabricated Metal Product Manufacturing/332311 -- Prefabricated Metal Building and Component Manufacturing
Synopsis:
Added: Aug 31, 2012 2:09 pm Modied: Aug 31, 2012 2:47 pm Track Changes
The Army Contracting Command - New Jersey on behalf of US Army Logistics Innovation Agency (US ALIA) intends to
issue a Request for Proposal (RFP) for the procurement of one-story and two-story energy efcient shelters for the Kuwait
Energy Efciency Project (KEEP) at Camp Buehring, Kuwait. The requirement includes approximately 5 one-story shelters
and 260 two-story shelters. The Government intends to fulll this requirement as a 100% small business set-aside via a
two year Firm Fixed Price, Indenite Delivery, Indenite Quantity single award contract under Solicitation W15QKN-12-R-
0070. This acquisition will be conducted by competitive negotiation pursuant to FAR Part 15 utilizing best value
procedures.
This effort is to combine existing commercial-off-the-shelf (COTS) technologies into an integrated solution for shelter
efciency and supplemental power generation. The project is for the replacement of soft walled shelters with highly
insulated rigid walled shelters that are soldier erectable, re-deployable, equipped with energy efcient ECUs, and LED
lighting combined with other improvements.
This requirement is expected to produce many benets, including but not limited to:
Improved efciency
Substantial reductions in fuel/energy consumption
Reduction in fuel transportation frequency
Reduction of operation and maintenance costs
Reduction of Capital Investment for Lease/Purchase of replacement generators
Integration of renewable power sources
Solicitation Number: W15QKN12R0070
See Question 9ss
E--Tactical Energy Efcient Shelters - W15QKN12R0070 - Federal Business Opportunities: Opportunities
https://www.fbo.gov/index?s=opportunity&mode=form&id=db907dfe34467a812c0af18828fcdc52&tab=core&tabmode=list&print_preview=1[6/6/2013 4:12:23 PM]
Increased operational exibility
Improved quality of life using quieter, less permeable structures
Improved environmental sustainability
An opportunity for the Army to collect before and after load prole data to help inform future planning and decision making.
No reimbursement will be made for any costs associated with providing information in response to this announcement.
All contractors who provide goods/services to the Department of Defense must be registered in the System for Award
Management (SAM). If you are not registered in SAM, you cannot be awarded a DOD Contract. The internet site for
registering in SAM is https://www.sam.gov/portal/public/SAM/. This pre-solicitation notice will be issued electronically in
accordance with FAR 4.5, 5.102 and 15.201; therefore, hardcopies will not be provided. Vendors wishing an electronic
copy may download it on or after the issue date by accessing the following address via the internet:
https://acquisition.army.mil/as and http://www.FedBizOpps.gov.
NOTE: This pre-solicitation notice will be issued electronically as will any amendments thereto. Because of this, the
Government is under no obligation to maintain a bidder's mailing list. Therefore, interested parties should periodically
access https://acquisition.army.mil/as in order to obtain any amendments which may be issued. Failure to respond to an
amendment prior to the date and time set for receipt of proposals may render your proposal unacceptable.
All questions pertaining to this pre-solicitation notice shall be addressed to the Contracting Ofcer, Grace Battle,
grace.a.battle.civ@mail.mil and the Contract Specialist, Anthony Mauriello, anthony.o.mauriello.civ@mail.mil as will be
specied in the solicitation. All questions regarding this synopsis must be submitted in writing via email with reference to
the solicitation number. Telephone inquiries will not be accepted. Government responses to questions will be posted at
www.fbo.gov for review by all Offerors. Therefore, questions/comments shall not be marked with a restrictive legend and
shall not include proprietary information.
Type: Mod/Amendment
Posted Date: November 16, 2012
https://acquisition.army.mil/as/solicitation_view.cfm?psolicitationnbr=W15QKN12R0070
Type: Solicitation
Type: Mod/Amendment
Amendment 1
Solicitation 1
Amendment 2
Amendment 3
First Questions and Answers for KEEP 15 Oct 2012

1. Would like to clarify and confirm if the place of performance of the above project is in
KUWAIT itself.
Answer: Yes.

2. 1) List of Items, Schedule of Requirements, Scope of Work, Terms of Reference, Bill of
Materials required.
Answer: The requested information can be found at the following website:
https://www.fbo.gov/index?s=opportunity&mode=form&id=b9d9ede5681bfc0d2d83
92e0e1c70def&tab=core&_cview=1

3. Soft Copy of the Tender Document through email.
Answer: No. However, information pertaining to this requirements can be found at
the following website:

4. Names of countries that will be eligible to participate in this tender.
Answer: In accordance with FAR 25.701 any person, organization, or country listed
at the Office of Foreign Assets Control (OFAC) List of Specially Designated
Nationals and Blocked persons at
http://www.treas.gov/offices/enforcement/ofac/sdn, are strictly prohibited.

5. Information about the Tendering Procedure and Guidelines
Answer: The requested information can be found at the following website:

6. Estimated Budget for this Purchase
Answer: This information can be found on Page 6 of the solicitation. The solicitation
posting can be found at the following address:

7. Any Extension of Bidding Deadline?
Answer: No. It is the interested partys responsibility to monitor the solicited for all
updates and changes up to and including the closing date.

8. Any Addendum or Pre Bid meeting Minutes?
Answer: Any and all addendums for this solicitation will be posted to this site.
Interested parties are reminded to acknowledge all addendums and include a
minimum of the cover page of each addendum with their formal proposal.

9. Can a Non US company bid on this requirement?
Answer: No, this requirement is a 100% Small Business Set-Aside, therefore only a
US owned small business may be the prime contractor for this effort. However,
there are no prohibitions on a foreign company partnering with a US owned small
business as a subcontractor.

10. Can a Non US Company bid using US products?
Answer: No.

11. What percentage of the products are required to be US products, or is it
possible to propose products that are not US?
Answer: All products, material and electrical installation shall be in accordance
with manufacturers recommendations and latest revision of the codes, standards,
manuals and specifications as listed in Section 2.0 Applicable Documents of the
Performance Work Statement.

U.S.Turkish Business Development
Turkey, a long standing political and military partner of the United States and a key NATO ally, is becoming an
American companies. In 2011 and into 2012, there is increasing positive momentum in the U.S. Turkish b
conducted both seismic and drilling operations in the Black Sea; GE Transportation began production and mar
in Eskisehir; Boeing has increased market share with Turkish Airlines and smaller carriers; Cummins and Pratt
and Sikorsky was selected by the Turkish government in a closely watched $3.5 billion tender for utility helico
American Turkish Council, and the Turkish American Businessmens Association maintain active programming
President Obamas April 2009 visit to Turkey on his first overseas trip emphasized the importance of close
and Turkish governments created the Framework for Strategic Economic and Commercial Cooperation (FSECC
roadmap for enhanced bilateral trade and investment while resolving key issues impacting businesses. The U.
American and Turkish businesses, will make policy recommendations to the FSECC to ensure a strong private
Investment Framework Agreement talks, the Energy Working Group, and the Economic Partnership Commissio
dialogue on bilateral economic issues. The first meeting of the FSECC in Washington in October 2010 yielded a
planned in 2012.
For more information on government to government efforts to increase U.S.-Turkish trade and investment, ple
of Market Access and Compliance, U.S. Department of Commerce at Kristin.Najdi@trade.gov
U.S. Energy Efficiency Projects in Turkey
Fact Sheet: DOE Near-Zero Zone Project in Turkey
WASHINGTON-The U.S. Department of Energy (DOE), in coordination with other U.S. agencies, is launching
for industrial energy efficiency in Turkey. This interagency project, which has the support of the Turkish gover
companies operating within the Izmir Ataturk Organized Industrial Zone (IAOSB) to reduce their energy intens
upgrades. The project aims to demonstrate the impact that reducing energy consumption can have on compan
investment, and serve as a replicable model for companies and industrial zones throughout Turkey.
Background on the NEAR-ZERO ZONE Project
Turkeys economy is nearly twice as energy intensive as the OECD average and its industrial sector accounts f
The Near-Zero Zone project is meant to support Turkeys goals to reduce its industrial energy intensity while s
including reducing its reliance on energy imports, bolstering its energy security, and decreasing greenhouse g
The IAOSB zone was selected to host the project for three primary reasons. First, with over 500 companies op
work with companies of varying sizes and diverse industries, enhancing the projects reach. Second, all of the
wastewater treatment are provided by the zone management company, further enhancing the energy efficie
located near one of Turkeys largest ports and in a region with significant renewable energy potential, amplifyi
investment.
DOE will work with U.S. agencies including State, Commerce, Overseas Private Investment Corporation (OPIC
Export-Import Bank on this project. In addition to support from the U.S. and Turkish governments, additional
Reconstruction and Development (EBRD) and TURSEFF, an entity composed of four Turkish banks (Vakifbank,
number of private companies.
Key components of the Near-Zero Zone project will include:
Page 1of 2 Export.gov - U.S-Turkish Business Development
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Baseline Energy Audit: ORNL, a DOE national lab, is expected to conduct a preliminary energy a
measure current energy usage and identify areas in which energy consumption can be reduced. Th
gathered at the projects conclusion to determine the impact of the energy efficiency measures.
Technical Assessments: For the IAOSB zone management company and approximately 20 partic
studies of their energy consumption and issue recommendations on cost-effective energy efficiency
include the cost of implementation and the potential impact on profitability so that companies can
are expected to finance up to twenty technical assessments. Other financial sources may become a
Energy Efficiency Upgrades: Based on the recommendations developed in the experts technical
will be provided with information on appropriate equipment and service suppliers. The U.S. Comme
number of equipment and service suppliers through a trade delegation scheduled for autumn 2011
including EBRD, TURSEFF, OPIC, Ex-Im and others and offered financing options from which th
Energy Efficiency Results: After the IAOSB management company and other participating compa
feel will enhance their productivity and profitability, an assessment of the projects impact on energ
that Turkish business organizations disseminate the findings to their member companies through w
impact. This is intended to make companies across Turkey aware of the positive effect that energy
Replicability: The project is intended to promote the adoption of similar energy efficiency measur
Turkey. Given the strong presence of Turkish firms in Central Asia, the Middle East and Europe, thi
industrial energy efficiency in those regions.
Project Timeline:
Winter 2011: Conduct initial energy audit
Spring/Summer 2011: Prepare technical studies and issue recommendations
Fall 2011: Present companies in the zone with equipment/service and financing options
Winter/Spring/Summer 2012: Implement efficiency upgrades
Fall 2012: Complete final assessment and disseminate project results
Who Wins: This pilot project represents a win-win for Turkish and American companies, as well as the U.S.
companies would benefit directly from U.S. technologies, financing, and associated reductions in energy costs
of best practices and reduction in industrial sector energy consumption. On the U.S. side, companies would be
companies in the industrial zone, as well as to establish a strong foothold in Turkeys growing energy efficienc
would make significant progress in advancing President Obama and Prime Minister Erdogans shared commitm
Contact Info: For more information, please contact Merryl Burpoe (merryl.burpoe@hq.doe.gov; 202.586.515
(202.586.9925) at the U.S. Department of Energy.

Page 2of 2 Export.gov - U.S-Turkish Business Development
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U.S. Companies in Turkey: Success Stories 2010-2011
This is the first in an occasional series of profiles on U.S.-Turkish busine
success stories
U.S. and Turkish firms have generally proven very successful in a range of business and sectors, including age
and other representation arrangements. Small, medium and large size American firms have made strong and
selected overview is provided below:
The world's leading aerospace company, Boeing is a principal manufacturer of commercial jetliners and milita
worldwide with some 160,000 employees both domestic and offshore. Dating back to the delivery of the first D
Turkish-Boeing relationship continues to lead technological innovation, industrial partnerships, education, arts
investment in Turkey.
Today Boeing collaborates with Turkish aerospace industries in commercial and military aviation programs, su
capabilities and provide secure, high-value jobs. Today we are not only a provider of commercial airplanes to
armed forces but we have become a trusted partner of the Turkish aerospace industry and a good Corporate c
programs in 30 cities that have helped educate over 125,000 students in the past 10 years alone," said Greg P
http://www.boeing.com/
Chevron is one of the world's largest integrated energy companies and recently acquired a 50 percent interes
8,700 square mile (22,505 square km) offshore block located 220 miles (350 km) northwest of the capital city
holds the remaining 50 percent interest in the license. TPAO was the operator of the initial exploratory well wh
are currently being reviewed by the partnership. TPAO would also be the operator of a second exploratory wel
future development phase of the project. Chevrons other interests in Turkey include marine transportation an
http://www.chevron.com/
Cummins, a US-based designer and manufacturer of diesel and natural gas engines, has announced an inves
Turkey. The roughly 70 million Greenfield investments involve the production of filters for motor vehicles as w
production plant in Turkey will create roughly 800 jobs over five years, while roughly 85 percent of the manuf
utilize Turkeys favorable geographical location for easy access to markets in surrounding countries. More at:
ExxonMobil affiliates and predecessor companies had continuous business involvement in Turkey for more th
sector in the deepwater Kastamonu, Samsun, and Sinop sub-blocks offshore Black Sea, Turkey. ExxonMobil ha
Samsun sub-blocks and the Turkish national oil company TPAO has the remaining 50 percent. ExxonMobil also
with Petrobras having 25 percent and TPAO having the remaining 50 percent.
ExxonMobil has contracted a world-class drillship called the Deepwater Champion (DWC) for use in ultra-deep
Black Sea and is expected drill the first ExxonMobil operated well in the Turkish Black Sea in the 2Q2011. Exx
finished lubricants in Turkey. More at: http://www.exxonmobil.com/Corporate/
Ford Otosan is currently investing an additional USD 630 million in its existing factory in the northwestern pr
will start producing new generation Transit vans in Turkey. According to Turkeys Automotive Industry Exporte
total volume of car exports rose by 19.3 (for passenger car) percent compared to the previous year, to USD 1
Page 1of 2 Export.gov - Success Stories
9/14/2013 http://export.gov/turkey/sucessstoriesinbusiness/eg_tr_037762.asp
561,000 vehicles were exported from Turkey in the first nine months of the year, which represents an annual
http://www.fordotosan.com.tr/
GE Transportation, a unit of General Electric Company (NYSE: GE), and Tlomsa have reached a significant
the first GE PowerHaul in Eskiehir, Turkey. Under the terms of agreement established with the signing of th
has provided Tlomsa with the necessary technology and material to assemble GEs PowerHaul series locomo
North African markets. Lorenzo Simonelli, President and CEO of GE Transportation said: We're investing in Tu
customers we wish to serve and its advanced technology and manufacturing skills. Finally, we hope to leverag
a true partner in the economic development of the country. Although the locomotive will function exclusively
Tlomsa also will continue to work collectively to expand market opportunities throughout the region. More a
Goodrich Corporation (NYSE: GR) and Turk Technic, Inc. have signed all appropriate agreements related to
maintenance, repair and overhaul (MRO) services in Istanbul, Turkey. The facility will initially employ about 20
employees within 10 years. The facility is expected to be operational early in the third quarter 2011. The Good
needs of Turkish Airlines by providing a local maintenance solution for the airline's growing fleet. More at: http
Hilton Worldwide has had a presence in Turkey since 1955, with the iconic Hilton Istanbul. Hilton Worldwide
market for the growth of its multiple brand portfolios and sees opportunities in major city locations, such as Is
the country, recent openings have included the DoubleTree by Hilton Istanbul Old Town; as well as Hilton Ga
Cappadocia. According to a senior Hilton Worldwide representative, Turkey is one of the leading countries in H
http://www.hiltonworldwide.com/
International Electronic Machines (IEM) is the leader in hardy instrumentation design with its unique mult
specializes in integrated systems development ranging from custom design of specific cameras, optics, and se
security monitoring. With the help of the US Commercial Service in Turkey, IEM identified a Turkish partner, w
State Railways (TCDD). With continual advocacy assistance, IEM signed an agreement with the Turkish State
IZBAN Railway to supply and install a state of-the-art transit railway monitoring system. Partnering with comp
has worked to expand IEM business in the global market with products in use in over 15 countries, distributing
at: http://www.iem.net/
Minnesota-based Mattracks Incorporated produces one of Americas top-ranked track conversion systems,
greater floatation mobility, rotation and access to areas with difficult terrain. Mattracks produces 66 different t
and recreational industries mainly in areas subject to high snowfall. These rubber-track conversion systems an
supplies, as well as plowing and maintaining winter roads.
Founded by Glen Brazier in 1992 and incorporated three years thereafter, Mattracks international sales outsid
50% between 2000 and 2011 now employing over 40 people from its initial 9 in 1992. The company exports t
Africa, China and Russia with buyers on seven continents. With the assistance of the U.S. Commercial Service
clients with commercial and military buyers. During a U.S. Senate sub-committee hearing, the Mattracks Direc
International sales growth is integral to the Mattracks plan for successthese services and resources offered
world have been extremely valuable to the growth of Mattracks international business. The company was aw
Chamber of Commerce recognizing Mattracks success and expansion of exports in the international market. M
Aircraft engine manufacturer Pratt & Whitney and Turkeys Kale Group have established a joint venture to co
production facilities. Pratt & Whitney, a United Technologies Corp. company, established the joint venture with
Group. In a separate action by Pratt & Whitney, the company has opened the Turkish Engine Center, located a
the Anatolian peninsula, as a location for maintenance, repair and overhauls of CFM56 and V2500 engines wit
Prepared by Gregory T
Source: US Mis
Comments and other U.

Page 2of 2 Export.gov - Success Stories
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Financing the Export of U.S. Goods and Services
Trade and project financing in Turkey can be a deal maker or breaker for American firms. For a number of
lend into projects or offer exacting terms and conditions to local importers, thus creating a sweet spot for Ame
exporters should come prepared to speak about payment terms when meeting with new Turkish partners and
days credit terms to export credit insurance an affordable but often overlooked way to secure payment of re
are not recommended until Turkish partners have demonstrated an ability to pay in full, on time, and over an
The U.S. Commercial Service in Turkey maintains strong relationships with local and U.S. banks as well as the
Investment Corporation and the U.S. Trade and Development Agency to provide finance to qualified American
Our corporate partners, including PNC Bank, Daruma Finance (an agent of M&T Bank), and UPS Capital have a
provides trade and project finance. For more information on these programs, contact Gorkem.Yavilioglu@trad
The Export-Import Bank of the United States
The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United St
the export of U.S. goods and services to international markets.
Ex-Im Bank enables U.S. companies large and small to turn export opportunities into real sales that help
stronger national economy.
EXIM Master Guarantors in Turkey
Overseas Private Investment Corporation
OPIC is the U.S. Governments development finance institution. It mobilizes private capital to help solve critic
foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in eme
opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guara
equity investment funds.
Faruk Kahraman
ofk@accordatlantic.com
113 Barksdale Professional Center
Newark, DE 19711
USA
www.accordatlantic.com
Tel: 302-309-9176
Fax: 302-309-9177
Cell: +90-532-283-8330
U.S. Trade and Development Agency
Page 1of 2 Export.gov - Financing:The Key to Success in Turkey
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USTDA Mission Statement is to help companies create U.S. jobs through the export of U.S. goods and services
economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot pr
sustainable infrastructure and economic growth in partner countries.
USTDA provides grant funding to overseas project sponsors for the planning of projects that support the deve
system. The hallmark of USTDA development assistance has always involved building partnerships between U
proven private sector solutions to developmental challenges. Contact Verinda Fike at vfike@ustda.gov for mor
The U.S. Small Business Administration
The U.S. Small Business Administration (SBA) dedicates its energy and resources to providing support to sma
nation.
Since its inception nearly sixty years ago, SBA has helped millions of small business owners by providing the f
forms of assistance they need to succeed. SBA's programs now include financial and federal contract procurem
specialized outreach to women, minorities and armed forces veterans. SBA also provides loans to victims of na
in international trade. Go to www.sba.gov for more information.

Page 2of 2 Export.gov - Financing:The Key to Success in Turkey
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WTO Government procurement - Parties and observers to the GPA
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GOVERNMENT PROCUREMENT: THE PLURILATERAL AGREEMENT ON GOVERNMENT PROCUREMENT (GPA)
Parties and observers to the GPA
The Committee on Government Procurement comprises the Parties to the Agreement as well as
observers.
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Additional Information
Parties to the Agreement backtotop
Most Parties have been bound by the Agreement since its entry into force on
1January1996. For some, it entered into force at a later date. Some
Parties have joined the Agreement by way of accession.
Parties
Date of entry into
force/accession
Armenia 15 September 2011
Canada 1January1996
European Union
with regard to its 27 member States:
Austria, Belgium, Denmark, Finland,

France, Germany, Greece, Ireland, Italy,
Luxemburg, the Netherlands, Portugal,
Spain, Sweden and the United Kingdom
1January1996
Cyprus, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovak
Republic and Slovenia
1May2004
Bulgaria and Romania 1January2007
Hong Kong , China 19June1997
Iceland 28April2001
Israel 1 January1996
Japan 1 January 1996
Korea 1 January 1997
Liechtenstein 18September1997
the Netherlands with respect to Aruba 25October 1996
Norway 1 January 1996
Singapore 20October1997
Switzerland 1 January 1996
Chinese Taipei 15 July 2009
United States 1 January 1996

Observers WTO Members backtotop
Observer government Date of acceptance by committee as
observers
Albania * 2 October 2001
Argentina 24 February 1997
Australia 4 June 1996
Bahrain 9 December 2008
WTO Government procurement - Parties and observers to the GPA

http://www.wto.org/english/tratop_e/gproc_e/memobs_e.htm[3/21/2013 6:32:48 PM]
Cameroon 3 May 2001
Chile 29 September 1997
China * 21 February 2002
Colombia 27 February 1996
Croatia 5 October 1999
Georgia * 5 October 1999
India 10 February 2010
Indonesia 31 October 2012
Jordan * 8 March 2000
Kyrgyz Republic * 5 October 1999
Malaysia 18 July 2012
Moldova * 29 September 2000
Mongolia 23 February 1999
Montenegro 31 October 2012
New Zealand * 9 December 2008
Oman * 3 May 2001
Panama * 29 September 1997
Saudi Arabia 13 December 2007
Sri Lanka 23 April 2003
Turkey 4 June 1996
Ukraine * 25 February 2009
Viet Nam 5December 2012
* negotiating accession.
Observers International intergovernmental

organizations backtotop
International Monetary Fund
Organization for Economic Cooperation and Development
United Nations Conference on Trade and Development
International Trade Centre
How to become an observer? backtotop

Article XVII of the Agreement on Government Procurement establishes basic
transparency requirements for becoming an observer to the Agreement. The
process of becoming an observer is set out by a Decision of the Committee
on Government Procurement GPA/1, Annex1.
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APPENDIX I UNITED STATES ANNEX 1 Page 1/5

1 October 2004 (WT/Let/482/Rev.1)
UNITED STATES

(Authentic in the English language only)

ANNEX 1

Central Government Entities which Procure in Accordance
With the Provisions of this Agreement

Threshold: 130,000 SDRs for supplies and services
5 million SDRs for construction

List of Entities:

1. Department of Agriculture (not including procurement of agricultural products made in
furtherance of agricultural support programmes or human feeding programmes)
2. Department of Commerce (not including shipbuilding activities of NOAA, as excluded in
Annex 4)
3. Department of Education
4. Department of Health and Human Services
5. Department of Housing and Urban Development
6. Department of the Interior (including the Bureau of Reclamation)
7. Department of Justice
8. Department of Labor
9. Department of State
10. United States Agency for International Development (not including procurement for the direct
purpose of providing foreign assistance)
11. Department of the Treasury
12. Department of Transportation (not including procurement by the Federal Aviation
Administration and pursuant to Article XXIII)
13. Department of Energy (pursuant to Article XXIII, national security exceptions include
procurements made in support of safeguarding nuclear materials or technology and entered into
under the authority of the Atomic Energy Act, and oil purchases related to the Strategic
Petroleum Reserve)
14. General Services Administration (except Federal Supply Groups 51 and 52 and Federal Supply
Class 7340)
15. National Aeronautics and Space Administration
16. The Department of Veterans Affairs
17. Environmental Protection Agency
18. National Science Foundation
19. Executive Office of the President
20. Farm Credit Administration
21. National Credit Union Administration


16 December 2011 (WT/Let/844)

22. Merit Systems Protection Board
23. The Corporation for National and Community Service
24. Office of Thrift Supervision
25. Federal Housing Finance Agency
26. National Labor Relations Board
27. National Mediation Board
28. Railroad Retirement Board
29. American Battle Monuments Commission
30. Federal Communications Commission
31. Federal Trade Commission
32. Securities and Exchange Commission
33. Office of Personnel Management
34. United States International Trade Commission
35. Export-Import Bank of the United States
36. Federal Mediation and Conciliation Service
37. Selective Service System
38. Smithsonian Institution
39. Federal Deposit Insurance Corporation
40. Consumer Product Safety Commission
41. Equal Employment Opportunity Commission
42. Federal Maritime Commission
43. National Transportation Safety Board
44. Nuclear Regulatory Commission
45. Overseas Private Investment Corporation
46. Broadcasting Board of Governors
47. Commission on Civil Rights
48. Commodity Futures Trading Commission
49. Peace Corps
50. National Archives and Records Administration
51. Advisory Commission on Intergovernmental Relations
52. African Development Foundation
53. Alaska Natural Gas Transportation System
54. Appalachian Regional Commission
55. Commission of Fine Arts
56. Delaware River Basin Commission
57. Federal Election Commission
58. Department of Homeland Security (except procurement by the Transportation Security
Administration, and the national security considerations applicable to the Department of
Defense are equally applicable to the U.S. Coast Guard)
59. Federal Home Loan Mortgage Corporation
60. Federal Mine Safety and Health Review Commission
61. Federal Reserve System
62. Federal Retirement Thrift Investment Board
63. Holocaust Memorial Council
64. Inter-American Foundation
65. National Capital Planning Commission
66. National Commission on Libraries and Information Science
67. National Council on Disability


22 March 2006 (WT/Let/537)
68. National Foundation on the Arts and the Humanities
69. Occupational Safety and Health Review Commission
70. Office of Government Ethics
71. Office of the Nuclear Waste Negotiator
72. Office of Special Counsel
73. Small Business Administration
74. Susquehanna River Basin Commission
75. Federal Crop Insurance Corporation
76. Federal Prison Industries, Inc.
77. Government National Mortgage Association
78. Uranium Enrichment Corporation
79. Department of Defense, including the Corps of Army Engineers

This Agreement will not apply to the following purchases of the Department of Defense:

(a) Federal Supply Classification (FSC) 83 - all elements of this classification other than pins,
needles, sewing kits, flagstaffs, flagpoles, and flagstaff trucks;
(b) FSC 84 - all elements other than sub-class 8460 (luggage);
(c) FSC 89 - all elements other than sub-class 8975 (tobacco products);
(d) FSC 2310 - (buses only);
(e) Speciality metals, defined as steels melted in steel manufacturing facilities located in the United
States or its possessions, where the maximum alloy content exceeds one or more of the
following limits, must be used in products purchased by DOD: (1) manganese, 1.65 per cent;
silicon, 0.60 per cent; or copper, 0.06 per cent; or which contains more than 0.25 per cent of
any of the following elements: aluminium, chromium, cobalt, columbium, olybdenum, nickel,
titanium, tungsten, or vanadium; (2) metal alloys consisting of nickel, iron-nickel and cobalt
base alloys containing a total of other alloying metals (except iron) in excess of 10 per cent;
(3) titanium and titanium alloys; or (4) zirconium base alloys;
(f) FSC 19 and 20 - that part of these classifications defined as naval vessels or major components
of the hull or superstructure thereof;
(g) FSC 5l and 52;
(h) Following FSC categories are not generally covered due to application of Article XXIII,
paragraph 1: 10, 12, 13, 14, 15, 16, 17, 19, 20, 28, 31, 58, 59, 95.


This Agreement will generally apply to purchases of the following FSC categories subject to United
States Government determinations under the provisions of Article XXIII, paragraph 1.

FSC 22 Railway Equipment
23 Motor Vehicles, Trailers, and Cycles (except buses in 2310)
24 Tractors
25 Vehicular Equipment Components
26 Tyres and Tubes
29 Engine Accessories
30 Mechanical Power Transmission Equipment
32 Woodworking Machinery and Equipment
34 Metalworking Machinery
35 Service and Trade Equipment
36 Special Industry Machinery
37 Agricultural Machinery and Equipment
38 Construction, Mining, Excavating, and Highway Maintenance Equipment
39 Materials Handling Equipment
40 Rope, Cable, Chain and Fittings
41 Refrigeration and Air Conditioning Equipment
42 Fire Fighting, Rescue and Safety Equipment
43 Pumps and Compressors
44 Furnace, Steam Plant, Drying Equipment and Nuclear Reactors
45 Plumbing, Heating and Sanitation Equipment
46 Water Purification and Sewage Treatment Equipment
47 Pipe, Tubing, Hose and Fittings
48 Valves
49 Maintenance and Repair Shop Equipment
53 Hardware and Abrasives
54 Prefabricated Structures and Scaffolding
55 Lumber, Millwork, Plywood and Veneer
56 Construction and Building Materials
61 Electric Wire, and Power and Distribution Equipment
62 Lighting Fixtures and Lamps
63 Alarm and Signal Systems
65 Medical, Dental, and Veterinary Equipment and Supplies
66 Instruments and Laboratory Equipment
67 Photographic Equipment
68 Chemicals and Chemical Products
69 Training Aids and Devices
70 General Purpose ADPE, Software, Supplies and Support Equipment
71 Furniture
72 Household and Commercial Furnishings and Appliances
73 Food Preparation and Serving Equipment
74 Office Machines, Visible Record Equipment and ADP Equipment
75 Office Supplies and Devices
76 Books, Maps and Other Publications
77 Musical Instruments, Phonographs, and Home Type Radios


78 Recreational and Athletic Equipment
79 Cleaning Equipment and Supplies
80 Brushes, Paints, Sealers and Adhesives
81 Containers, Packaging and Packing Supplies
85 Toiletries
87 Agricultural Supplies
88 Live Animals
91 Fuels, Lubricants, Oils and Waxes
93 Non-metallic Fabricated Materials
94 Non-metallic Crude Materials
96 Ores, Minerals and their Primary Products
99 Miscellaneous

Note to Annex 1

The conditions specified in the General Notes apply to this Annex.

APPENDIX 1 UNITED STATES GENERAL
NOTES
Page 1/1

19 March 2010 (WT/Let/672)
GENERAL NOTES

1. Notwithstanding the above, this Agreement will not apply to set asides on behalf of small and
minority businesses.

2. Except as specified otherwise in this Appendix, procurement in terms of U.S. coverage does not
include non-contractual agreements or any form of government assistance, including
cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and
governmental provision of goods and services to persons or governmental authorities not
specifically covered under U.S. annexes to this agreement.

3. Procurement does not include the acquisition of fiscal agency or depository services, liquidation
and management services for regulated financial institutions, and sale and distribution services
for government debt.

4. Where a contract to be awarded by an entity is not covered by this Agreement, this Agreement
shall not be construed to cover any good or service component of that contract.

5. For goods and services (including construction) of the following countries and suppliers of such
goods and services, this Agreement does not apply to procurement by the entities listed in
Lists A and B in Annex 3 or the waiver described in List B in Annex 3:

Canada

The United States is prepared to amend this note at such time as coverage with respect to
Annex 3 can be resolved with a Party listed above.

6. For construction services of the Republic of Korea and suppliers of such services, this
Agreement applies only to procurement of the entities listed in Annexes 2 and 3 above a
threshold of 15 million SDRs.

7. For goods and services (including construction) of Japan and suppliers of such goods and
services, this Agreement does not apply to procurement by the National Aeronautics and Space
Administration.

8. A service listed in Annex 4 is covered with respect to a particular Party only to the extent that
such Party has included that service in its Annex 4.

9. The United States will not extend the benefits of this Agreement to Japan as regards the award
of contracts by entities listed in Annex 3 that are responsible for the generation or distribution of
electricity.
From: Keven L. Barnes
To: "afosi.det522.office@ogn.af.mil"; "afosi.det522.office@ogn.af.mil.rpost.org"
Cc: "afosi.det523.office@ogn.af.mil"; "afosi.det523.office@ogn.af.mil.rpost.org"; "afosi.det521.office@ogn.af.mil";
"afosi.det521.office@ogn.af.mil.rpost.org"
Subject: FW: Please ask your AF OSI office ( Turkey ) to investigate why contracting officer are not setting aside for U.S.
Small Business
Date: Monday, September 09, 2013 2:54:00 PM
Attachments: Exhibit 17.5 Latvian Connection Report SBA 29 AUG 2013 ( K R HARBER ).pdf
IG REPORT USCENTCOM 11-034.pdf
Exhibit 16 PART 1 -SBA SENIOR ATTORNEY LEGAL OPINION IN SET-ASIDES OVERSEAS .pdf
Exhibit 17 PART 2 -SBA SENIOR ATTORNEY LEGAL OPINION IN SET-ASIDES OVERSEAS.pdf
Hello,
I want to ask them to investigate 39 CONS for not posting solicitations and for not setting
aside for Small Businesses in contingency area where $ 1 Mil and under are set asides.
I will be filing GAO Level Protests against what is currently being solicited. The WTO and
Government Procurement Agreement let the WTO know that we have a Set-Aside program
and also there has been trade agreements signed between the U.S. and Turkey recently that
certainly make the document that contracting cites from 1982 obsolete. In fact they are the
only base to try this stunt and it is going to get addressed now.
I would like them to investigate who were the commanders that directed that the Small
Business Act and set-asides be ignored.
Investigate why these units are splitting requirements in order to avoid competing the
requirements among U.S. Small Businesses under the Simplified Acquisition Threshold.
I would like the OSI to investigate why Micro-Purchases ( which overseas is less $ 30,000 )
are not distributed equally and to investigate who is directing the violation of 41 USC
1902, AND [FAR 13.2; DFAR 232.1108] My company is interested and has let contracting
officers at 39 Cons know that Latvian Connection LLC is available to bid.

(a) Definition. For purposes of this section, the micro-purchase threshold is $3,000.
(b) Compliance With Certain Requirements and Nonapplicability of Certain Authority.
(1) Compliance with certain requirements. The head of each executive agency shall ensure that
procuring activities of that agency, when awarding a contract with a price exceeding the micro-purchase
threshold, comply with the requirements of section 8(a) of the Small Business Act (15 U.S.C. 637
(a)),section 2323 of title 10, and section 7102 of the Federal Acquisition Streamlining Act of 1994 (Public
Law 103355, 15 U.S.C. 644 note).
(2) Nonapplicability of certain authority. The authority under part 13.106(a)(1) of the Federal
Acquisition Regulation (48 C.F.R. 13.106(a)(1)), as in effect on November 18, 1993, to make purchases
without securing competitive quotations does not apply to a purchase with a price exceeding the micro-
purchase threshold.
(c) Nonapplicability of Certain Provisions. An executive agency purchase with an anticipated value of
the micro-purchase threshold or less is not subject to section 15(j) of the Small Business Act (15 U.S.C.
644 (j)) andchapter 83 of this title.
(d) Purchases Without Competitive Quotations. A purchase not greater than $3,000 may be made
without obtaining competitive quotations if an employee of an executive agency or a member of the
armed forces, authorized to do so, determines that the price for the purchase is reasonable.
(e) Equitable Distribution. Purchases not greater than $3,000 shall be distributed equitably among
qualified suppliers.
(f) Implementation Through Federal Acquisition Regulation. This section shall be implemented
through the Federal Acquisition Regulation.

Can you please give me the email address for OSI in Kuwait, everything on here is incorrect
for civilian use.

This email will be an exhibit on the upcoming GAO protests against 5 + solicitations that 39
CONS has running now.

Lack of Planning is against the Competition in Contracting Act and these contracting officer
have brought out solicitation at the last minute before the end of the fiscal year and do not
have the required length of time for responses. I will deal with the KOs and the issues in
the protest. The Question is why would this organization violation the Competition in
Contracting Act and the Small Business Act under false pretenses.

In enacting CICA, Congress explained: Effective competition is predicated on advance procurement
planning and an understanding of the marketplace. S. Rep. No. 50, 98th Cong., 2d Sess. 18 (1984), reprinted
in 1984 U.S.C.C.A.N. 2191. The Senate Report also quoted with approval the following testimony regarding
the need for advance planning:
Opportunities for obtaining or improving competition have often been lost because of untimely, faulty, or the
total lack of advance procurement planning. Noncompetitive procurement or inadequate competition also
has resulted many times from the failure to develop specifications . . . . By requiring effective competition,
Congress will serve notice on the agencies that they will need to do more than the minimum to comply with
the statute. S. Rep. No. 50, 98th Cong., 2d Sess. 19 (1984), reprinted in 1984 U.S.C.C.A.N. 2192. Finally, in
interpreting this statutory requirement, our Office has noted that contracting officials have a duty to
promote and provide for competition and to obtain the most advantageous contract for the government.
Precision Logistics, Inc., B-271429, July 18, 1996, 96-2 CPD 24 at 5; National Aerospace Group, Inc.,
B-282843, Aug. 30, 1999, 99-2 CPD 43. In other words, contracting officials must act affirmatively to
obtain and safeguard competition; they cannot take a passive approach and remain in a sole-source situation
when they could reasonably take steps to enhance competition. Here, the Army's actions over the past
several years fail to comply with CICA's statutory mandate for reasonable advance planning. (HEROS,
Inc., B-292043, June 9, 2003)
Latvian Connection LLC would like to submit this revised response to the Air
Force's Request to dismiss this protest in light of the SBA comments on B-
408633 which are summarized as follows.

On August 29, 2013, the SBA wrote in on B-408633 and gave an opinion that
supports SBA Attorneys Laura Mann-Eyester and John Klein Exhibits 16 and 17.
That Report is attached and the bullet points of it are:
The SBA does note that the Air Force views that the SBA are irrelevant
and that the SBA exists only as an advisory body to OFPP and FAR
Council
The SBA doesnt agree with the Air Forces view of the SBAs authority
and mission and neither does the law.
Passage of Public Law No. 85-536 on July 18, 1958 added the Small
Business Act to the United States Code.
Congress implicitly designated the SBA as Executive Branch Agency
responsible for administering the programs and requirements established
under the Act.
Congress DID NOT give responsibility for administering the Act to the
OFPP or the FAR Council.
The Court of Appeals for the 9th Circuit has noted for the SBA is
charged with carrying out the policies of the Act and issuing such
rules and regulations as it deems necessary
One of the Primary mechanisms Congress created for implementing this
policy of promoting participation in the federal procurement process by
small business concerns is the automatic set-aside requirement commonly
Notable 15 U.S.C. 644 ( j ) (1) contains no language placing
geographic limitations or restrictions on its applications, either in
terms of the location of the procuring activity itself or the place of
performance of the contract.
The baseline presumption on the part of Congress that the policies and
requirements it established under the Act are to apply to ALL Federal
procurements without regard to geography unless specifically indicated
otherwise
This reading of the Act and its policies is consistent with the intent
of Congress
Maximum practicable opportunity to participate in the performance of
contracts let by any Federal Agency.
The Air Force has farcically attempted to assert that OFPP is the Agency
responsible for implementing and administering the policies established
under the Act.
The SBA is charged with the duty of implementing and administering the
policies established under the Act.
The SBAs view on automatic small business set-aside requirements are
expressed in the Agencys regulation implementing 644 ( j ) ( 1 )
which appears at C.F.R. 125.2 ( f ) ( 1 ).
SHALL set aside any acquisition with an anticipated dollar value
exceeding the Micropurchase Threshold but not exceeding the Simplified
Acquisition Threshold.. for small business concerns when there is a
reasonable expectation that offers will be obtained from at least 2
Small Business concerns
Congress refrained from imposing any geographic limitations on the
application of 15 U.S.C. 644 ( j ) ( 1 ), SBA elected not place any
location-based restrictions on the application of 13 C.F.R. 125.2 ( f
) ( 1 ).
644 ( j ) ( 1 ), 637 ( d ) ( 7 ) ( A ) does not include any
language prohibiting the extraterritorial application of the
requirement it imposes and neither does the SBA regulations.
The automatic set-aside requirement poses no threat to the comity of
nations
The decision of the United States to buy from Small Business or Large
American businesses does not infringe upon sovereignty of a country.
FOOTNOTE 5 Pursuant to 41 U.S.C. 431a(a)( 1 ), the application of
both the upper and lower limit of this range ( i.e. the micro purchase
threshold) and the upper limit ( i.e. the Simplified Acquisition
Threshold) may be adjusted for inflation. Moreover, 41 U.S.C. 1903 (
b ) further expands this range with regard to procurements made in
support of contingency operations.
GAO concluded that FAR 19.000 ( b ) must yield where it conflicts with
a provision of the Small Business Act and the SBAs interpretation and
regulatory implementation of that provision.
The Court of Federal Claims concluded that SBAs implementation of a
provision of the Small Business Act via regulation must be viewed as
controlling and 644 ( j ) ( 1 ) which must govern and not FAR
19.000 ( b )
644 ( j ) ( 1 ) applies broadly to each contract let by all executive
branch agencies
Congress gave clear and repeated statements of its desire to promote
small business concerns in the Federal Procurement process
It is the SBAs view that the automatic small business set-aside
requirement imposed under 15 U.S.C. 644 ( j ) ( 1 ) and 13 C.F.R.
125.2 ( f ) ( 1 ) applies t
The SBA believes that restricting the application of this requirement
solely to contracts that will be awarded or performed within the United
States is INCONSISTENT with the intent of Congress

Can you please give me the email addresses for Ali Al Salem Air Base in
Kuwait for OSI.

Thanks,

Best Regards,

Keven L. Barnes
CEO
(USAF) Ret.
+ 965 5012 2072
www.LatvianConnectionLLC.com
CAGE: SGM59
DUNS: 534749622

CALIFORNIA
DUNS 830587791
CAGE 5GLB3

5
SIGIR
OVERSIGHT
section
SIGIR Lessons Learned 90
SIGIR Audits 92
SIGIR Investigations 97
SIGIR Hotline 112
SIGIR Website 113
Legislative Update 114
90 I SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION
SIGIR OVERSIGHT
Iraq Reconstruction: Lessons from
Auditing U.S.-funded Stabilization
and Reconstruction Activities
In October 2012, SIGIR published Iraq Reconstruc-
tion: Lessons from Auditing U.S.-funded Stabiliza-
tion and Reconstruction Activities. A key aspect of
SIGIRs work has been to capture lessons learned
from the Iraq experience that could be applied to
other contingencies, including Afghanistan, and
those that may arise in the future. In July 2008,
SIGIR issued an initial audit capping report that
identifed key recurring systemic management
issues. Tis report builds on that prior work and
documents lessons learned from the SIGIR Audit
Directorates experience from 2004 through 2012.
Te numerous problems uncovered in SIGIRs au-
dits contributed signifcantly to reduced program
efectiveness and increased potential for fraud,
waste, and abuse. If the causes and efects of these
problems are not fully understoodand if actions
are not taken to forestall their recurrencethen
similar negative outcomes could resurface in future
stability and reconstruction operations (SROs).
During the course of conducting 217 audits of
reconstruction and stabilization programs, con-
tracts, grants, and other activities, SIGIR identifed
a number of critical defciencies in reconstruction
planning, implementation, and oversight. Te
problems ranged from the absence of assessments
on the security situation and the risks to life and
construction projects such dangerous conditions
posed, to inadequate internal controls that would
ensure that the U.S. received the goods and services
it was buying and at a reasonable price. Tese prob-
lems adversely afected the ef ciency and efective-
ness of U.S. assistance and contributed to creating a
climate where fraud, waste, and abuse could occur.
Te principal lessons learned from such failings are
provided below.
1. A Successful Reconstruction Program Re-
quires a Balancing of Security, Political, and
Economic Interests
a. Risks of violence must be assessed at the
outset of reconstruction activities.
b. Risks to human life must be weighed against
potential outcomes.
c. Costs and benefts of initiating projects re-
quiring high security costs must be carefully
weighed.
2. An Integrated Management Structure Tat
Provides Clear Lines of Authority on Program
Coordination and Delivery of Projects Is
Critical for SRO Success
a. Defning roles and missions of all involved
U.S. agencies is a necessary prerequisite for
efective reconstruction planning.
b. Programs require management accountabil-
ity and efective coordination to avoid waste.
3. An Integrated U.S. Reconstruction Man-
agement Information System Is Critical To
Promote Accountability
4. Managing Staf ng Needs and Reducing
Staf Turnover Is Vital for Efective Program
Implementation and Oversight
a. Obtaining the required number of skilled
personnel is essential in managing recon-
struction during an SRO.
b. Reducing turnover of contract and program
management personnel is necessary for ef-
fective management.
SIGIR LESSONS LEARNED
OCTOBER 30, 2012 I REPORT TO CONGRESS I 91
SIGIR LESSONS LEARNED
5. Enhanced Oversight of Contracts, Grants,
and Other Procurements in SROs Is Nec-
essary To Avoid Fraud and Waste and To
Promote Ef ciency
a. Advance planning reduces opportunities for
fraud, waste, and abuse to occur.
b. Reviews of contractor invoices and audits of
fnal incurred costs are necessary to ensure
payments are correct.
c. Close oversight of deliverables and inventory
is required to oversee compliance to contract
and to deter loss and thef.
d. Close oversight of cash transactions is neces-
sary to deter fraud and abuse.
e. Grants awarded in SROs require stronger
oversight than those awarded in peaceful
areas.
f. Maintaining comprehensive contract
and project records is crucial to efective
oversight.
6. Reconstruction Programs Need Clear and
Measurable Goals and Objectives
7. Working Closely with Host Governments Is
Essential to the Long-term Success of U.S.
Investments in Reconstruction Projects
a. Host governments must be involved in iden-
tifying sustainable reconstruction priorities
and needs.
b. Obtaining host-government cost sharing is the
best way to ensure long-term sustainment.
8. Accountability and Oversight of Private Secu-
rity Contractors Is Vital in Politically Sensi-
tive Contingency Operations
a. Establishing core standards and immediately
investigating possible breaches are essential
steps in ensuring that use of private security
contractors does not adversely afect the
mission.
b. Obtaining an accurate accounting of private
security contractor costs is essential for plan-
ning and budgeting operations.
9. Linking an Inspector Generals Authority to
the Mission, Rather Tan Funding, Is Critical
To Ensure Complete Coverage
SIGIR OVERSIGHT
Since March 2004, SIGIR has issued 217 audit
reports. From August 1 to October 30, 2012, SIGIR
issued three audits addressing the following recon-
struction issues:
the efectiveness and sustainability of U.S. gov-
ernment corrections and judicial reform eforts
in Iraq
Department of State (DoS) management of the
Quick Response Fund (QRF) in 2007 and 2008
U.S. Army Corps of Engineers (USACE) ac-
counting for, and management of, $2.4 billion in
Iraqi Development Fund for Iraq (DFI) monies
For a list of these audit products, see Table 5.1.
SIGIRs three ongoing, and fnal, audits are
scheduled to be issued in January 2013. Te frst
audit is addressing the lessons derived from man-
aging Iraqi reconstruction funds, and the second
audit addresses the lessons learned from imple-
menting the Commanders Emergency Response
Program. Finally, SIGIR is conducting an audit to
determine how the more than $60 billion appropri-
ated or otherwise made available for Iraq relief and
reconstruction has been spent. SIGIR is performing
these audits under generally accepted government
auditing standards.
SIGIR Audits Completed
This Quarter
Sustaining the Progress Achieved
by U.S. Rule of Law Programs in Iraq
Remains Questionable
(SIGIR 13-001, 10/2012)
Introduction
Between 2003 and June 2012, the United States
government spent about $560.3 million to de-
velop and reconstitute the corrections and judicial
components of the Rule of Law (RoL) system in
Iraq. RoL in a modern state comprises, among
other things, a constitution, a legislature, a court
system, police, prisons, due process and equal
protection under the law, a commercial code of
laws, and meaningful anticorruption systems. U.S.
government entitiesincluding DoS, the Depart-
ment of Justice (DoJ), the Department of Defense
(DoD), and the U.S. Agency for International
Development (USAID)as well as international
agencies and others, have provided assistance to
the Government of Iraq (GOI) in developing a new
RoL system. DoSs Bureau of International Narcot-
ics and Law Enforcement Afairs (INL) managed
SIGIR AUDITS
Table 5.1
SIGIR Audit Products since 8/1/2012
Report Number Report Title Date Issued
13-001
Sustaining the Progress Achieved by U.S. Rule of Law Programs in Iraq
Remains Questionable
10/2012
13-002
Final Review of State Departments Management of Quick Response Funds In
2007 and 2008
10/2012
13-003
Development Fund for Iraq: U.S. Army Corps of Engineers Has Missing
Receiving Reports and Open Task Orders
10/2012
SIGIR AUDITS
received just two reports on relatively small ini-
tiatives because INL of cials do not consider any
other RoL programs complete. However, many of
the interagency agreements that funded the pro-
grams have ended, and reports on the program at
the end of the agreement could provide insights
into the program at that point in time. Absent
end-of-program and end-of-mission reports on
these programs, there is no documented means
to know the success of the U.S. initiatives, such
as the extent to which U.S. agencies completed
the tasks they were given, how the funding was
used, and what successes and challenges were
documented as the program progressed. As a
result, SIGIR was unable to conduct any mean-
ingful analysis to determine the efectiveness of
the programs.
SIGIR did fnd some evidence that INLs
programs contributed to a reasonably well-
functioning judicial system in Iraq. But lasting
institutional reform of the judicial systemand
the entire RoL systemis a generational under-
taking, requiring a sustained commitment by the
GOI to ensure efective progress.
Recommendations
SIGIR makes three recommendations to the Assis-
tant Secretary of State for International Narcotics
and Law Enforcement Afairs:
1. Require an end-of-program report for all
INL-funded assistance programs at the end of
each interagency agreement or other funding
mechanism.
2. Require an end-of-mission report, comparable
to the end-of-mission report for the corrections
program, at the end of each mission.
3. Retain those reports centrally for future use.
Management Comments
Te Department of State provided written com-
ments, stating that it concurred with the reports
fndings and recommendations. Management
comments are included in the fnal report, which
can be found on the SIGIR website: www.sigir.mil.
the overall efort. INL assistance eforts chiefy
focused on three functional RoL areas: corrections
programs, judicial programs, and police training.
Tis report examines the major corrections and
judicial programs implemented by DoJ, INL, and
USAID. SIGIR performed this audit to determine
the programmatic and fnancial status of the cor-
rections and judicial programs in Iraq.
Results
Te corrections and judicial systems in prewar Iraq
were corrupt, supporting Saddam Husseins brutal
regime. Initial postwar assessments in 2003 found
the systems in chaos, with facilities destroyed, per-
sonnel ill-equipped to carry out the mission, and
corruption rampant across the government.
Since 2003, INL has spent about $209.3 million
to develop and establish an efective corrections
system, reform pretrial detention programs, and
modernize the prisons. For the most part, this
efort was led by DoJ. According to DoJ of cials
SIGIR interviewed, the Iraqi Corrections Service
(ICS) has progressed from near non-existence
into a functional institution requiring minimal
technical assistance and mentoring. Correc-
tional system facilities appear to be operated in
a safe and humane manner, in accordance with
standardized operating procedures, and overseen
by trained and experienced correctional manag-
ers. Te Iraqi Deputy Minister of Justice, who
oversees the ICS, complimented DoJs eforts to
improve the service and to provide assistance
to the ministry. A DoJ end-of-mission report
provided an extensive summary of the eight-year
efort, documenting what was accomplished.
During the same period, INL spent about
$197.9 million to develop the Iraqi judiciary,
establish judicial security, and reform court
administration. USAID started a program in
2010 to educate the Iraqi people on their access
to the justice system, particularly for the disad-
vantaged. SIGIR requested reports on the INL-
funded judicial programs, similar to the one that
DoJ prepared for the corrections program, but
SIGIR OVERSIGHT
Results
SIGIR examined documentation on 185 judg-
mentally selected micropurchases initiated during
20072008 that were collectively valued at about
$3.5 million. From the available records, SIGIR
could generally determine how funds were in-
tended to be used but could not assess whether all
of the goods and services were actually purchased,
received, or transferred to benefciaries.
Of the 185 fles documenting the micropurchas-
es, 157 contained project proposals that described
items to be purchased, cost estimates, invoices,
and various forms used to document the receipt
and use of cash. A few of the fles contained ad-
ditional information, such as handwritten receipts
in Arabic, and photos of completed projects (such
as attendees at a training seminar). Most of the
fles also contained forms signed by multiple PRT
of cials describing and attesting to the receipt and
use of QRF cash.
Despite the existence of forms documenting the
receipt and planned use of funds and other project
details, the absence of information on the results of
the sampled projects makes it dif cult to determine
if the QRF funds were actually used as intended. In
its review, SIGIR found that 90 of the 185 micro-
purchases (or about 49%) lacked such information.
As a consequence, for those 90 cases, which totaled
$1.63 million, SIGIR cannot be certain that individ-
uals used the cash they received to purchase goods
and services and that the intended benefciaries of
these goods and services actually received them.
For the other 95 micropurchases (or 51%), SIGIR
found project results in the form of emails, memo-
randa, photographs, and other written informa-
tion. Among these, SIGIR also found that written
project results for seven micropurchases questioned
whether some purchases were made and ultimately
received by Iraqi benefciaries. In response to
SIGIRs request that NEA-I of cials examine these
seven micropurchases for possible fraudulent ac-
tions, the of cials stated that without further docu-
mentation, they were unable to determine whether
fraud actually took place. Furthermore, because the
Final Review of State Departments
Management of Quick Response Funds
in 2007 and 2008
(SIGIR 13-002, 10/2012)
Introduction
In April 2011, SIGIR issued an audit on DoS man-
agement of the QRF program, which was imple-
mented between 2007 and 2011 at a total cost of
about $258.2 million. DoS initiated the program to
provide Provincial Reconstruction Teams (PRT) in
Iraq with a fexible means to pay for local projects
that supported community-based leaders and local
Iraqi organizations and institutions to improve ac-
cess to public services, employment, and education.
Te PRT program was a U.S.-led, civil-military
efort to assist Iraqs provincial and local govern-
ments to govern efectively and deliver essential
services. DoS spent QRF funds through grants,
microgrants, direct procurements, and micropur-
chases. DoS expended much of its QRF funds in
the early years of the program. DoSs Bureau of
Near Eastern Afairs-Iraq (NEA-I) was responsible
for the QRF program.
In the April 2011 audit, SIGIR reported that
recordkeeping on fund use and project results
and outcomes for micropurchases made in 2007
and 2008 was poor, and that documentation in
seven project fles suggested possible fraud. SIGIR
recommended that NEA-I improve its recordkeep-
ing and review all micropurchases initiated during
20072008 to determine if other examples of pos-
sible fraud, waste, and abuse exist.
For SIGIRs follow-up audit, issued in April 2012,
NEA-I of cials stated that they had located almost
all documentation that SIGIR found missing from
the of cial fles, and that their review of payment
vouchers did not indicate that any fraudulent
transactions had occurred. However, the of cials
did not directly address the seven instances of pos-
sible fraudulent activities that SIGIR had found.
Because there was no evidence that NEA-I had
reviewed and assessed the identifed cases of pos-
sible fraud, SIGIR initiated this review.
SIGIR AUDITS
Development Fund for Iraq: U.S. Army Corps
of Engineers Has Missing Receiving Reports
and Open Task Orders
(SIGIR 13-003, 10/2012)
Introduction
Te Coalition Provisional Authority (CPA) was
established in May 2003 to provide for the tempo-
rary governance of Iraq. United Nations Security
Council Resolution 1483 created the DFI and as-
signed the CPA full responsibility for managing it.
Te DFI comprised revenues from Iraqi oil and gas
sales, certain remaining Oil for Food deposits, and
repatriated national assets. It was used, in part, for
Iraq relief and reconstruction eforts.
In 2003, the CPA committed to restoring Iraqs
oil and electricity infrastructures, both of which
sufered from neglect under Saddam Husseins
regime and the Iraq war. USACE was assigned re-
sponsibility for managing the restoration activities
known as Restore Iraqi Oil (RIO) and Restore Iraqi
Electricity (RIE). USACE received about $2.4 bil-
lion in DFI funds for reconstruction activities and
administered four major DFI-funded contracts
one oil and three electricity.
SIGIR initiated this audit to determine
whether: (1) USACE properly accounted for the
$2.4 billion in DFI funds it received for recon-
struction activities in Iraq, (2)USACE properly
managed the contract closeout process for the
DFI-related task orders that it administered, and
(3) contractors completed work as planned under
the DFI-funded contracts.
Results
USACE did not establish efective internal controls
to document that goods and services paid for using
DFI funds were received in Iraq. SIGIR sampled
12DFI payments, totaling about $1.1 billion, made
to USACE and found that two key fnancial docu-
mentspublic vouchers and vendor invoices
were in the payment fles. However, a third key
documentthe receiving reportwas missing
from more than 95% of the fles. Receiving reports
QRF program has ended and the PRTs are closed,
they cannot fnd the personnel involved with those
questioned micropurchases to make inquiries. Fi-
nally, they stressed that the lack of documentation
does not mean that fraud occurred.
Tis review again demonstrates the vulnerability
of cash transactions to thef and misuse and the
need to be vigilant in ensuring that the intended
purpose of the cash payments is actually achieved.
While DoS took some measures to enhance its
oversight and documentation of activities toward
the end of the program, earlier activities appear
to have sufered from a lack of suf cient internal
controls. Specifcally, DoS may never know what it
got out of those micropurchases made in the early
years because of the lack of documentation show-
ing that the goods or services were delivered. Con-
sequently, it is highly possible that some portions of
QRF funds were not used as intended.
Recommendations
Tis report contains no recommendations.
Lesson Learned
Requisite internal controls must be included in the
design of any cash-transaction assistance program.
Attempts to institute them afer activities have be-
gun may be too late to ensure that the transactions
are not vulnerable to fraud, waste, and abuse.
Management Comments
ments that included the steps taken to address
SIGIRs concerns. Management comments are
included in the fnal report, which can be found on
the SIGIR website: www.sigir.mil.
SIGIR OVERSIGHT
whether the U.S. government owes the contractor
money, and ultimately, whether the U.S. govern-
ment needs to return unused DFI funds to the
GOI. Te six RIO task orders that SIGIR reviewed
have been closed, and the three RIE task orders
remain open, although the work was completed al-
most eight years ago. To date, USACE has returned
$17.7 million in unused DFI funds to the GOI and,
pending closeout of the RIE task orders, there may
be more money to return.
Te RIO and RIE work was completed in 2004
and, for the most part, work performed under the
non-fuel-related task orders that SIGIR reviewed
was successfully completed. Construction work on
one RIO task order was terminated before comple-
tion. However, USACE awarded two new contracts
to complete the projects and paid for them with
U.S.-appropriated funds rather than DFI funds.
R ecommendations
SIGIR recommends the Secretary of Defense
direct the Chief of Engineers, USACE, and the
Director, Defense Contract Audit Agency, to work
together to:
1. Take those actions necessary to expedite the
incurred cost audits and contract close-out
procedures for the three RIE DFI-funded task
orders.
2. Return any unused DFI funds to the GOI.
Management Comments
ments, stating it concurred with SIGIRs recom-
mendations. Management comments are included
in the fnal report, which can be found on the
SIGIR website: www.sigir.mil.
document the governments inspection and accep-
tance of products delivered or services performed.
Missing receiving reports involved commodities
vulnerable to fraud and thef, such as fuel, televi-
sions, and vehicles. SIGIR has not concluded that
fraud or thef occurred, but the absence of receiv-
ing reports raises questions.
Fuel deliveries alone accounted for $1.3 billion
(54.2%) of the $2.4 billion in DFI funds that USACE
received for reconstruction activities in Iraq.
Instead of using the required receiving reports to
document fuel deliveries in Iraq, USACE of cials
told SIGIR that they maintained a fuel delivery
log book. However, the log book is missing. In the
absence of receiving reports and the fuel delivery
log book, USACE has no evidence that shows
whether fuel products paid for with DFI funds
were received. Tis problem was compounded by
the lack of metered trucks to document how much
fuel was being delivered and the proliferation of
fuel delivery points from 12 of cial sites to more
than 100 sites. A Defense Contract Audit Agency
report noted that, due to these two conditions
alone, the contractor had no way to confrm fuel
deliveries and to establish a basis for paying the
subcontractor. However, USACE of cials noted
that fuel was delivered by military-escorted
convoys, which they believe decreased the
probability of fraud or thef, and that there is no
evidence that thef occurred.
USACE has not been able to determine the
status of the DFI monies because key fnancial
audits of contractors have not been completed.
Without these audits, USACE cannot close out
these contracts and task orders and assess whether
the contractor owes the U.S. government money,
SIGIR INVESTIGATIONS
As of October 30, 2012, the work of SIGIR
investigators had resulted in 97 indictments, 75
convictions, and more than $180 million in fnes,
forfeitures, recoveries, restitution, and other mon-
etary results. For SIGIR convictions, by af liation
of wrongdoer at the time of criminal activity, see
Figure 5.1. For the monetary results of SIGIR inves-
tigations, by af liation of wrongdoer, see Figure 5.2.
Investigative accomplishments this quarter also
included 4 suspensions, 7 proposals for debarment,
and 7 debarments. As of September 30, 2012, the
work of SIGIR investigators had resulted in 96
suspensions, 149 proposals for debarment, and 110
debarments.
Tis quarter, SIGIR continued to conduct a
number of signifcant criminal investigations relat-
ed to Iraq reconstruction and to work closely with
prosecutors, U.S. partner investigative agencies,
coalition partner investigators, and law-enforce-
ment personnel from other countries. As a result of
these investigations, 19 defendants were awaiting
trial, and an additional 16 defendants were await-
ing sentencing at the end of the quarter. Figure 5.3
shows the cumulative number of judicial actions
and monetary results resulting from SIGIRs inves-
tigations. With prosecutors currently handling a
substantial number of additional cases, this trend
is expected to continue. For a comprehensive list of
convictions compiled by the Department of Justice
(DoJ), see Table 5.2 at the end of this subsection.
SIGIR notes these investigative activities this
quarter:
A former chief of party for the United States
Institute of Peace was charged and pled guilty to
wire fraud conspiracy, and a co-conspirator was
charged and arrested in Great Britain.
A former co-owner of a government contracting
company was charged and pled guilty to fraud
charges.
Te SIGIR Investigations Directorate continues
to actively pursue allegations of fraud, waste, and
abuse in Iraq, with 77 active investigations. During
this reporting period, SIGIR had 1 investigator
assigned in Baghdad; 12 investigators in of ces in
Pennsylvania, Florida, Texas, Oklahoma, Missouri,
and California; and 5 investigative personnel at
SIGIR headquarters in Arlington, Virginia. Inves-
tigative accomplishments this quarter included
5indictments, 3 convictions, and 1 sentencing.
Figure 5.2
Note: Numbers affected by rounding.
22%
47%
22%
5%
SIGIR Investigations Monetary Results, by
Affiliation of Wrongdoer, as of 9/30/2012
$ Millions
U.S.
Military/Military
Dependent
$38.5
Contractor (DoD)
$39.7
USG Civilian (DoD)
$2.5 (1%)
Foreign Military
$1.1 (1%)
Contractor
(non-DoD)
$83.5
USG Civilian (non-DoD)
$3.8 (2%)
Civilian
$8.4
Total: $177.8
Figure 5.1
56%
7%
20%
4%
4%
4%
4%
SIGIR Convictions, by Affiliation of
Wrongdoer, as of 9/30/2012
Other
1 (1%)
Contractor (DoD)
15
USG Civilian (DoD)
3
Foreign Military
3
Contractor
(non-DoD)
5
USG Civilian (non-DoD)
3
Civilian
3
Total: 75
U.S. Military/
Military Dependent
42
SIGIR OVERSIGHT
charge on October 7, 2011. According to plea docu-
ments, Boorda admitted that, from about April
2009 through about June 2009, he and the owner
of a security-services contracting frm conspired to
enrich themselves through Boordas recommenda-
tion that USIP award a $1.165 million contract for
the lease of a villa in Baghdad and security services
to that company at a fraudulently infated price. For
his role, Boorda received a purported consulting
and marketing agreement with the company for
a monthly fee of $20,000 for the term of the USIP
contract. Boorda admitted that he concealed this
agreement from USIP. According to plea docu-
ments, some of that fee was made possible by repre-
senting to USIP headquarters that the villa owner
would not agree to a monthly rental payment of
less than $22,000, when the owner had actually
agreed to $13,000.
An arrest warrant was issued for Boordas co-
conspirator, the owner of the security-services frm,
as the result of an eight-count sealed indictment
by a grand jury for the U.S. District Court for the
District of Columbia. Te charges included wire
fraud and gratuities conspiracy, wire-fraud scheme,
agreement to pay a gratuity to a public of cial,
and payment of a gratuity to a public of cial. Te
contractor was arrested on July 6, 2012, by British
law-enforcement authorities and is currently await-
ing extradition to the United States to face charges.
Tis case is being prosecuted by a trial attor-
ney on detail from SIGIR to the Fraud Section of
DoJs Criminal Division. Te case was investigated
by SIGIR and Department of State Of ce of the
Inspector General (DoS OIG).
Former Co-owner of Contracting
Company Pleads Guilty to Defrauding
the Government
On August 9, 2012, Jill Charpia, former co-owner
of a U.S. civilian contracting company, pled guilty
before the U.S. Magistrate for the Western District
of Texas in San Antonio, Texas, to a criminal in-
formation charging her with one count of provid-
ing false statements to a government agency in
A U .S. Army master sergeant was charged and
pled guilty to defrauding the U.S. government.
A former U.S. Army of cer was indicted and
arrested for thef of government property.
Two U.S. contractors were sentenced for conspir-
ing to defraud the U.S. government.
A former employee of a U.S.-based construction
frm was sentenced in a kickback conspiracy.
A U.S. Army captain was charged with conspir-
ing to accept illegal gratuities.
A former U.S. Army sergeant was re-indicted,
arrested, and pled guilty to receiving stolen cash
from Iraq.
Former USIP Chief of Party Pleads
Guilty to Wire Fraud Conspiracy;
Co-conspirator Arrested in Great Britain
On August 6, 2012, the criminal information and
subsequent guilty plea of Robert N. Boorda, the
former chief of party in Baghdad for the United
States Institute of Peace (USIP), were unsealed by
the U.S. District Court for the District of Co-
lumbia. Boorda was charged by information on
September 19, 2011, with one count of conspiring
to commit wire fraud, and he pled guilty to the
Figure 5.3
0
50
100
150
200
250
Convictions Sentencings Indictments
FY
2006
FY
2007
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
13
19
30
47
68
95
11
37
58
75
F
u
n
d
s

R
e
c
o
v
e
r
e
d

(
$

M
i
l
l
i
o
n
s
)
C
r
i
m
i
n
a
l

R
e
s
u
l
t
s
$0
$40
$80
$120
$160
$200
24
26
38
57
13
5
5
5
5
5
Funds Recovered
SIGIR Investigations Criminal Results and
Funds Recovered, Cumulative to Date,
by Fiscal Year
U.S. Army Master Sergeant Charged
and Pleads Guilty to Defrauding
U.S. Government
On August 29, 2012, retired U.S. Army Master Ser-
geant Julio Soto, Jr., pled guilty in the U.S. District
Court of South Carolina to a criminal information
charging him with one count of conspiracy to ac-
cept illegal gratuities.
According to court documents, Soto was de-
ployed to Forward Operating Base (FOB) Ham-
mer in Iraq as a feld ordering of cer (FOO). FOO
funds are used to purchase miscellaneous items
and supplies, such as paint, lumber, and plywood,
from local vendors. It is a violation of federal law
for FOOs to accept gratuities from contractors
dependent on them for contracts.
In or about March 2007 through October 2008,
Soto, along with an alleged U.S. Army co-conspir-
ator, was involved with the construction of a gov-
ernment building at FOB Hammer by local Iraqi
contractors. Soto and his alleged co-conspirator
unlawfully sought, received, and accepted illegal
gratuities for helping Iraqi contractors gain U.S.
government contracts, and then purchased U.S.
postal money orders with the illegal proceeds and
mailed them back to the United States.
At sentencing, Soto faces a maximum penalty of
fve years in prison, a fne of the greater of $250,000
or twice the pecuniary gain or loss, and up to three
years of supervised release. As part of his plea
agreement, Soto agreed to pay $62,542 plus interest
in restitution to the United States.
Tis case is being prosecuted by a trial attorney
on detail from SIGIR to the Fraud Section of DoJs
Criminal Division and the U.S. Attorneys Of ce
for the District of South Carolina. Te case is being
investigated by SIGIR, the Defense Criminal Inves-
tigative Service (DCIS), and Army CID-MPFU.
Former Army Ofcer Indicted
for Theft of Government Property
On August 15, 2012, a former U.S. Army captain
was arrested in Los Angeles, California follow-
ing the return of an indictment in Texas alleging
connection with Iraq reconstruction government
contracts.
From 2008 through 2009, according to court
documents, Charpia was the co-owner of Sourcing
Specialists, LLC, a privately owned company that
contracted with the U.S. government to provide
services in Iraq. In September 2008, her company
contracted to provide a turnkey housing facility lo-
cated outside Iraqs International Zone to facilitate
the introduction of multinational frms desiring
to develop business opportunities in Iraq. Tat
same month, Charpia signed and submitted to
the Department of Defense (DoD) Joint Contract-
ing Command-Iraq/Afghanistan a false invoice,
purportedly for mobilization costs, in the amount
of $1,270,075.40 for payment through the contract.
She followed up with two invoices: one represent-
ing that she had paid $700,000 for the rental of
two villas in Baghdad, and the other representing
that she had paid $570,075.50 for the purchase of
three armored vehicles from an Iraqi company. In
October 2008, as a result of her false and fraudulent
statements, DoD caused $1,270,075.50 to be wired
to Charpias bank account. Charpia admitted that
she fabricated both invoices and forged the signa-
tures on the documents. She also admitted that she
did not purchase any armored vehicles and paid
only half the submitted cost for the villas.
At sentencing, scheduled for December 20, 2012,
Charpia faces a maximum penalty of fve years in
prison, a maximum fne of the greater of $250,000
or twice the pecuniary gain or loss, and up to three
years of supervised release. As part of her plea
agreement, Charpia agreed to pay $920,000 plus
interest in restitution to the United States.
Tis case is being prosecuted by a trial attorney
for the Western District of Texas. Te case is be-
ing investigated by SIGIR, the Internal Revenue
Service-Criminal Investigation (IRS-CI), and U.S.
Army Criminal Investigation Command-Major
Procurement Fraud Unit (CID-MPFU).
SIGIR OVERSIGHT
Two U.S. Contractors Sentenced for
Conspiring To Defraud U.S. Government
On October 9, 2012, Gaines Newell, Jr., was
sentenced in U.S. District Court for the Northern
District of Alabama to 27 months in prison fol-
lowed by 3 years supervised release, ordered to pay
restitution of $861,027 to the U.S. Army Corps of
Engineers (USACE) and $241,088 to the IRS, and
ordered to pay a special assessment of $200. In
addition, the judge issued a forfeiture notice against
Newell in the amount of $861,027 to be applied
against his restitution. On October 10, 2012, Billy
Joe Hunt was sentenced in the same district to
15months in prison followed by 3 years supervised
release and ordered to pay restitution of $66,212
to the IRS and forfeit $236,472. Te sentencings
are the result of guilty pleas by Newell and Hunt
to conspiring to commit the federal ofenses of
kickbacks, wire fraud, and mail fraud, and to fling
false tax returns.
According to court documents, USACEs Hunts-
ville Engineering and Support Center awarded a
prime contract in connection with the Coalition
Munitions Clearance Program (CMCP) to Newell
and Hunts company, an international engineer-
ing and construction frm headquartered in
Pasadena, California. Te CMCP worked to clear,
store, and dispose of weapons that were seized or
abandoned in Iraq from 2003 through November
2008. Ahmed Kazzaz, a British citizen, paid more
than $947,500 in unlawful kickbacks to Newell (the
prime contractors program manager) and Hunt
(the deputy program manager) to obtain lucra-
tive subcontracts for himself and his company,
Leadstay.
Beginning in or about March 2006, Kazzaz
entered into a kickback agreement with Newell
and Hunt, who arranged for the award of subcon-
tracts to Kazzaz and Leadstay to provide materials,
heavy equipment, and equipment operators for
the CMCP. Kazzaz also obtained multiple fund-
ing increases to those subcontracts. From April
2006 through August 2008, Kazzaz and Leadstay
wire fraud, thef of government property, money
laundering, and false statements in connection
with his military service in Iraq. He was charged in
a nine-count federal indictment, returned July 30,
2012, and unsealed afer his arrest by SIGIR and
DCIS special agents in Los Angeles, California.
According to the indictment, the former captain
was deployed to Iraq as an artillery of cer in late
2006. While there, he was designated as a pay agent
with responsibilities to receive receipts and invoices
from Iraqi contractors who worked at Forward
Operating Base Justice in performing jobs for the
U.S. Army. He was responsible for processing the
invoices to be sure they were properly paid.
Te former captain allegedly changed or caused
to be changed certain invoices by increasing the
total amount due for the invoice. Te indictment
alleges he then paid the contractor the original
invoice amount and kept the diference in cash.
Afer leaving Iraq in late 2007, and following his
arrival in Germany, he allegedly deposited some
of the money into bank accounts in Germany and
instructed certain amounts to be sent via wire
transfer to his account in the United States. As a
result of the scheme he created, the indictment al-
leges he stole approximately $110,000.
If convicted on all charges, he faces maximum
fnes of up to $250,000 per count and prison sen-
tencing as follows:
up to 20 years for each of the two counts of wire
fraud
10 years for each of three counts of thef of gov-
ernment property
10 years for each of two counts of money
laundering
5 years for each of two counts of making false
statements
Te investigation is being conducted by SIGIR
and DCIS.
but accept less money so he could take some of the
diferencemuch of which he smuggled back into
the United States
Tis case continues and is being conducted
jointly by SIGIR, DCIS, and the FBI.
U.S. Army Captain Charged with
Conspiring To Accept Illegal Gratuities
While Serving in Iraq
On October 4, 2012, a U.S. Army captain was
charged in a two-count criminal information fled
in U.S. District Court, Oklahoma City, Oklahoma
with conspiracy.
According to court documents, the captain
served in Baghdad from November 2007 to Janu-
ary 2009 working with U.S. government pay agents
and Iraqi contractors on U.S.-funded projects. Dur-
ing this time, two Iraqi contractors ofered gratu-
ities to the captain in exchange for of cial acts per-
formed in connection with the contracting process.
One of the contractors ofered gratuities and favors,
including approximately $25,000 in cash payments,
in exchange for the captain assisting on an Iraqi
construction contract. Te captain was also ofered
jewelry, a vacation to a private island, and approxi-
mately $10,000 in cash payments in exchange for
infuence and ability to steer generator contracts to
one of the contractors. Te direct cash payments
and the value of the jewelry received by the captain
from the two contractors totaled approximately
$45,000. Te captain sent the money in envelopes
through the mail to his ex-wife in Louisiana.
Additionally, the captain allegedly provided one
of the contractors with the login and password in-
formation for an email account assigned to the unit
for Pay Agents to receive and review bids. Access to
the email account allowed the contractor to review
bids submitted by other contractors.
Te case is being prosecuted by a trial attorney
for the Western District of Oklahoma.
Te case is being investigated by SIGIR, DCIS,
and Army CID-MPFU.
received more than $23 million in U.S. funds for
services under the CMCP.
Kazzaz pled guilty on May 21, 2012, to the fed-
eral ofenses of conspiracy, kickbacks, wire fraud,
and mail fraud, and he is scheduled to be sentenced
on October 29, 2012.
Te case is being prosecuted by a trial attorney
for the Northern District of Alabama.
Te case was investigated by SIGIR, DCIS, IRS-
CI, the Federal Bureau of Investigation (FBI), and
Army CID-MPFU.
Former Employee of U.S. Construction
Firm Sentenced in Iraq Reconstruction
Kickback Conspiracy
On September 12, 2012, Ismael Salinas was sen-
tenced in U.S. District Court, Houston, Texas, for
receiving hundreds of thousands of dollars in ille-
gal kickbacks from subcontractors in Iraq. Salinas
was sentenced to time served (9 months), 2 years
of supervised release, a fne of $7,500, forfeiture of
$807,904, and a special assessment of $300.
On October 1, 2010, Salinas, a former employee
of a U.S. construction company, pled guilty to a
criminal information fled in U.S. District Court
for the District of New Mexico that charged him
with conspiracy to defraud the United States by
accepting kickbacks from subcontractors whom
he helped to get contracts on government building
projects in Iraq between April 2005 and March
2008. According to court documents, between
2004 and 2008, Salinas arranged for subcon-
tractsawarded by the construction company
and paid by the U.S. governmentto be infated
by the kickback amounts that he was to receive.
Salinas overbilled DoD by $847,904, taking at least
$424,000 in kickbacks from six companies. Salinas
admitted to using his position with the construc-
tion company to give subcontracts to certain
businesses and to rate their performance highly in
return for money. Salinas said that he would also
have the subcontractors submit infated invoices,
SIGIR OVERSIGHT
USACE employees and two foreign contractors also
were charged in the July 2011 indictment.
According to court documents, from July 2007
to June 2008, Markus accepted at least $3.7 million
in bribe and kickback payments in connection with
USACE contracts awarded to multiple companies
associated with two foreign contractors named
in the indictment. From September 2005 to July
2008, Markus was assigned to Tikrit as a project
engineer, where he and a coworker were involved in
the review and award process for USACE contracts
in the Gulf Region North District and also in the
administration, oversight, and modifcation of such
contracts.
Markus admitted that he and the coworker par-
ticipated in a scheme to provide favorable of cial
action and assistance to co-conspirators for the
beneft of their associated companies, including by
obtaining and disseminating confdential bid and
internal USACE pricing information to individuals
seeking the award of contracts to their companies
and by approving lucrative payments for these
companies. All of these actions were taken in
exchange for bribes and kickbacks that Markus and
the coworker accepted from foreign contractors.
Markus opened or established control over mul-
tiple foreign bank accounts in Jordan and Egypt to
receive illegal bribe and kickback payments that he
took from foreign contractors in connection with
the USACE contracts. He created, maintained,
and sent via email to foreign contractors spread-
sheets and other records detailing the value of
USACE contracts awarded, the percentage of those
contracts that Markus solicited and demanded,
the payments (whether by installment or lump
sum) made to Markus by foreign contractors,
and in some cases, the date on which these illegal
payments were accepted in cash or deposited into
Markuss foreign bank accounts. A spreadsheet cre-
ated by Markus in July 2008 refected his demand
and acceptance of bribe payments from a co-
conspirator totaling $1,958,500, or 10% of the value
of a contract awarded to the company al-Fahal
and its partner companies for the construction
Former U.S. Army Sergeant Re-indicted,
Arrested, and Pleads Guilty to Receiving
Stolen Cash from Iraq
On August 3, 2012, Daniel Hutchinson, a former
U.S. Army sergeant, was arrested as the result of an
April 13, 2012, one-count indictment for receiv-
ing more than $12,000 in stolen cash from Iraq.
Hutchinson was placed in a Pretrial Diversion
(PTD) program by the U.S. District Court, Los
Angeles, California, on October 21, 2011; however,
he did not comply with the PTD provisions and
was subsequently re-indicted.
According to court documents, the money had
been stolen by another U.S. Army soldier who
was deployed to Tallil, Iraq, in 2008, and mailed
to Hutchinson. Te funds were a cash payment
for pickup by a local contractor who failed to ap-
pear for the payment. Te cash was then stolen,
concealed in a stufed animal, and sent through
the U.S. postal system to Hutchinson in California.
Hutchinson pled guilty on September 14, 2012,
and is scheduled to be sentenced on November 26,
2012. Te investigation into this case continues.
Te case is being investigated by SIGIR, DCIS,
Army CID-MPFU, and the FBI.
Other Agency Investigations
Former USACE Employee Pleads Guilty
to Bribery and Kickback Scheme
On September 7, 2012, John Alfy Salama Markus,
a former USACE employee deployed to Tikrit
during Operation Iraqi Freedom admitted taking
at least $3.7 million in bribes and kickbacks in
connection with more than $50 million in USACE
contracts awarded to foreign companies in Gulf
Region North, Iraq. Markus pled guilty in U.S.
District Court, Newark, New Jersey, to three counts
of a 54-count indictment returned in July 2011
charging him with wire fraud, conspiracy to com-
mit bribery and to defraud the U.S. government,
money laundering, and tax ofenses. Two other
Tis case is being conducted by DCIS, IRS, Im-
migration and Customs Enforcement, and Army
CID-MPFU.
SIGPRO Update
Under the SIGIR Prosecutorial Initiative (SIGPRO),
which began in late 2009, SIGIR has hired highly
experienced prosecutors and detailed them as a
unit to the Fraud Section of DoJs Criminal Divi-
sion to prosecute SIGIR investigation cases. Tese
prosecutors are frmly ensconced at DoJ with full
dockets of criminal fraud matters emanating from
the Iraq reconstruction efort. Tey handle their
own DoJ caseloads and work closely with SIGIRs
General Counsel and other DoJ prosecutors as-
signed to SIGIR cases. Tey are currently leading
or signifcantly involved in a host of prosecuto-
rial matters and continue to play integral roles in
the development and prosecution of cases being
worked by the SIGIR Investigations Directorate.
In line with SIGIR reductions in staf, the SIGPRO
unit now comprises two prosecutors and one legal
analyst.
Suspensions and Debarment
Since December 2005, SIGIR has worked closely
with DoJ, Army CID-MPFU, DCIS, and the
Army Legal Services Agencys Procurement Fraud
Branch (PFB) to suspend and debar contractors
and government personnel for fraud or corruption
within the Army, including those involved in Iraq
reconstruction or Army support contracts in Iraq.
Tese cases arise as the result of criminal indict-
ments fled in federal district courts and allegations
of contractor irresponsibility that require fact-
based examination by the Armys Suspension and
Debarment Of cial. Tis quarter, the Army sus-
pended 9 contractors based on allegations of fraud
in Iraq and Kuwait. In addition, the Army pro-
posed 10 contractors for debarment and fnalized
of segments of the Baghdad-to-Baiji Pipeline. As
part of the scheme, Markus used the foreign bank
accounts under his control to receive and transfer
bribe and kickback payments from foreign contrac-
tors to at least 11 bank accounts opened, estab-
lished, and controlled by Markus in New Jersey
and Pennsylvania. Markus also transferred bribe
and kickback money to a co-conspirator.
Markus also admitted that, with the proceeds
of his wire-fraud scheme and bribery ofenses, he
paid for the construction of a custom-built home
in Nazareth, which was worth approximately
$1,110,000. Markus admitted that on October 16,
2008, the date of settlement, he obtained a cashiers
check, drawn on a Bank of America account, of
approximately $850,807.54 made out to a title
company in connection with the construction of
the Nazareth home.
Markus also admitted that, for calendar year
2009, he failed to fle with the U.S. Department
of the Treasury a Report of Foreign Bank and
Financial Accounts (FBAR), disclosing that he
had a fnancial interest in, and signature and other
authority over, certain fnancial accounts in foreign
countries, including Jordan.
Markus agreed to the entry of a forfeiture money
judgment in the amount of at least $3.7 million, a
portion of which will be satisfed by forfeiture of his
Nazareth residence, as well as fve vehicles and two
motorcycles.
Te wire-fraud count to which Markus pled
guilty is punishable by a maximum penalty of
20years in prison and a fne of the greater of
$250,000 or twice the gross pecuniary loss or
gain. Te money laundering is punishable by up
to 10years in prison and a fne of the greater of
$250,000 or twice the gross pecuniary loss or gain,
but not more than twice the amount of the crimi-
nally derived property involved in the transaction.
Te FBAR count to which Markus pled guilty is
punishable by up to fve years in prison and a fne
of not more than $250,000. Sentencing is scheduled
for January 8, 2013.
SIGIR OVERSIGHT
Table 5.2
Convictions (as compiled by the Department of Justice)
Name Charges
Date of
Conviction Sentence
Daniel Hutchinson Receiving stolen funds from Iraq 9/14/2012 Pending
John Markus Wire fraud, money laundering, and failure to report
foreign bank and nancial accounts
9/7/2012 Pending
Julio Soto Conspiracy to accept illegal gratuities 8/29/2012 Pending
Jill A. Charpia Providing false statements to a government agency 8/9/2012 Pending
Robert N. Boorda Conspiracy to commit wire fraud 8/6/2012 Pending
Crystal Martin Conspiracy and money laundering 6/25/2012 Pending
Richard Evick Conspiracy, bribery, money laundering, and obstructing an
agency proceeding
6/25/2012 Pending
Ahmed Kazzaz Conspiracy, kickbacks, wire fraud, and mail fraud 5/21/2012 Pending
Nicole Luvera Theft of government property 5/17/2012 Pending
Billy Joe Hunt Conspiracy and ling false tax returns 5/8/2012 15 months in prison; 3 years supervised
release; $66,212 in restitution to the IRS;
$200 special assessment; and forfeiture of
$236,472
Gaines Newell, former DoD
contractor employee
Conspiracy and ling false tax returns 4/10/2012 27 months in prison; 3 years supervised
release; $1,102,115 restitution ($861,027 to
USACE and $241,088 to the IRS); $200 special
assessment; and forfeiture of $861,027
Maj. Christopher G. Bradley,
USA
Gratuities 4/9/2012 6 months in prison; 1 year supervised
release; $20,000 restitution; and $200 special
assessment
David J. Welch, former DoD
contractor employee
Conspiracy to steal government property 4/2/2012 2 years in prison; 3 years supervised release;
and $160,000 restitution
Capt. Michael G. Rutecki, USA Gratuities 3/7/2012 3 years probation; $10,500 restitution;
$2,000 ne; and $100 special assessment
Sgt. Amasha M. King, USAR Conspiracy to defraud 2/14/2012 3 months in prison; 5 years probation;
$20,500 restitution; and $100 special
assessment
Continued on the next page
individuals associated with fraud related to Army
contracts in Iraq, Kuwait, and other locations in
Southwest Asia, with additional suspension and de-
barment actions projected during 2012. Suspension
and debarment actions related to reconstruction
and Army support-contract fraud in Afghanistan
are reported by the Special Inspector General for
Afghanistan Reconstruction (SIGAR). For a list
of debarments, see Table 5.3. For a complete list of
suspensions and debarments, see Appendix F.
1 debarment of individuals and companies during
that same period based on fraudulent activity in
Iraq and Kuwait.
Te Army has suspended 176 individuals and
companies involved in sustainment and recon-
struction contracts supporting the Army in Iraq
and Kuwait since 2003, and 212 individuals and
companies have been proposed for debarment,
resulting in 165 fnalized debarments that range
in duration from 9 months to 10 years. PFB is
aggressively pursuing additional companies and
Name Charges
Date of
Conviction Sentence
John F. Hayes Conspiracy 11/10/2011 5 months in prison; 2 years supervised
release; and $12,000 restitution
Brian D. Cornell False statements 10/27/2011 3 months connement; 2 years supervised
release; $1,000 ne; and $100 special
assessment
Robert A. Nelson,
former USA sergeant
Conspiracy to steal public property 10/5/2011 4 years probation with the rst 6 months in
home connement; $44,830 restitution; and
$100 special assessment
Thomas A. Manok,
former USACE employee
Conspiracy 9/19/2011 20 months in prison; 3 years supervised
release; forfeiture of $73,500; and $100
special assessment
Tamimi Global Company LTD Kickbacks 9/16/2011
(Deferred
Prosecution
Agreement
(DPA))
$13 million to resolve criminal and civil
allegations
Eric Scott Hamilton,
USMC gunnery sergeant
Conspiracy 8/10/2011 18 months in prison; 3 years supervised
Francisco Mungia III Conspiracy 7/22/2011 4 months in prison; 3 years supervised
Barry S. Szafran Illegally receiving a gratuity 7/15/2011 1 year probation with the rst 4 months in
home connement; $7,169 restitution; and
Justin W. Lee, former DoD
contractor
Conspiracy, bribery 7/15/2011 Pending
Derrick Shoemake,
retired USA lieutenant colonel
Bribery 6/13/2011 41 months in prison; 2 years supervised
release; forfeiture of $68,100; and $181,900
restitution
David Puger,
former USA Lt. Col.
Conspiracy, accepting gratuities, and converting the
property of another to his own use
3/25/2011 18 months in prison; 3 years supervised
Charles Bowie,
retired USA major
Engaging in monetary transactions in property derived
from specied unlawful activity
5/11/2011 2 years in prison; 3 years supervised release;
$400,000 restitution; and $100 special
assessment
Eddie Pressley,
former USA major
Bribery, conspiracy to commit bribery, honest services
fraud, money laundering conspiracy, engaging in monetary
transactions with criminal proceeds
3/1//2011 12 years in prison; 3 years supervised release;
and forfeiture of $21 million, real estate, and
several automobiles
Eurica Pressley, former
contractor and military spouse
Bribery, conspiracy to commit bribery, honest services
fraud, money laundering conspiracy, engaging in monetary
transactions with criminal proceeds
and forfeiture of $21 million, real estate, and
several automobiles
Richard Razo, former DoS
contractor and DoS employee
Wire fraud, wire fraud conspiracy 2/28/2011 33 months in prison; 2 years supervised
release; $106,820 restitution; and $200
special assessment
Maj. Kevin Schrock, USA Money laundering 2/8/2011 3 years probation; and $47,241 restitution
Osama Ayesh, former U.S.
Embassy-Baghdad employee
Theft of public money, engaging in acts affecting a
personal nancial interest
2/2/2011 42 months in prison; 36 months supervised
release; $243,416 restitution; and $5,000 ne
Capt. Bryant Williams, USA Honest services fraud, accepting bribes 12/17/2010 3 years in prison; 3 years supervised release;
forfeiture of $57,030; and $200 special
assessment
Mark Carnes, USAF master
sergeant
Bribery 12/16/2010 20 months in prison; 3 years supervised
release; and $4,000 ne
Michelle Adams, former DoD
contractor
Bribery 12/7/2010 15 months in prison followed by supervised
release
Frankie Hand, Jr., retired USN
lieutenant commander
Fraud, bribery, and receiving illegal gratuities 12/7/2010 3 years in prison and forfeiture of $757,525
SIGIR OVERSIGHT
Name Charges
Date of
Conviction Sentence
Peter Dunn, former DoD
contractor
Bribery 11/19/2010 14 months in prison and 2 years supervised
release
Louis Berger Group Major fraud statute 11/5/2010
(DPA)
$18.7 million in criminal penalties; civil
settlement of $50.6 million; full restitution to
USAID; adopt effective standards of conduct,
internal control systems, and ethics training
for employees; and employ an independent
monitor to evaluate and oversee the
companies compliance with the DPA for 2
years
Salvatore Pepe Conspiracy to defraud 11/5/2010 Pending
Precy Pellettieri Conspiracy to defraud 11/5/2010 Pending
Maj. Roderick Sanchez, USA Bribery 10/27/2010 5 years in prison; 3 years supervised release;
and $15,000 ne
Maj. Richard Harrington, USMC Receiving illegal gratuities 10/18/2010 1 year and 1 day in prison; and restitution
Lt. Col. Bruce Gillette, USAR Acts affecting a personal nancial interest 10/6/2010 1 year probation; $2,000 ne; 160 hours
community service; and inability to possess
a rearm
Mariam Steinbuch, former
USMC staff sergeant
Bribery 10/5/2010 5 years probation and $25,000 restitution
Ismael Salinas Kickbacks 10/1/2010 9 months in prison (time served); 2 years
supervised release; $7,500 ne; forfeiture of
$807,904; and $300 special assessment
Dorothy Ellis Conspiracy 9/2/2010 37 months in prison; 3 years probation; and
$360,000 restitution
Wajdi Birjas, former DoD
contract employee
Bribery, money laundering 8/11/2010 Pending
Maj. Mark Fuller, USMC Structuring nancial transactions 8/4/2010 1 year and 1 day in prison; $198,510 ne; and
Maj. Charles Sublett, USA False statements 7/7/2010 21 months in prison; 2 years supervised
release; and forfeiture of $107,900 and
17,120,000 in Iraqi dinar
Capt. Faustino Gonzales, USA Receipt of a gratuity by a public ofcial 6/24/2010 15 months in prison; 1 year supervised
release; $10,000 ne; $25,500 restitution;
and $100 special assessment
MSGT Terrance Walton, USMC Bribery, graft, failure to obey a direct order 5/17/2010 Reprimand; reduction in rank from E-8 to
E-3; $65,000 ne; and 62 days connement
Capt. Eric Schmidt, USMC Wire fraud, ling a false federal tax form 5/17/2010 72 months in prison; 3 years probation; and
$2,150,613 restitution
William Collins, USA civilian Bribery 4/21/2010 42 months in prison; 3 years supervised
release; $1,725 ne; and forfeiture of $5,775
SFC Ryan Chase, USA Illegal gratuities, money laundering, false statements 4/21/2010 1 year and 1 day in prison; 2 years probation;
and $1.4 million restitution
Marcus McClain Acceptance of illegal gratuities 4/15/2010 Pending
Kevin A. Davis Acceptance of illegal gratuities 4/13/2010 Pending
Janet Schmidt, contractor
and military spouse
Filing a false tax return and fraud 3/18/2010 1 year home connement; 3 years probation;
and $2,150,613 restitution
Terry Hall, contractor Conspiracy, bribery 2/17/2010 39 months in prison; 1 year supervised
release; and forfeiture of $15,757,000
Theresa Russell, former
USA staff sergeant
Money laundering 1/28/2010 5 years probation and $31,000 restitution
Name Charges
Date of
Conviction Sentence
Capt. Michael D. Nguyen, USA Theft and structuring nancial transactions 12/7/2009 30 months in prison; 3 years supervised
release; $200,000 restitution; and forfeit his
interest in all personal property bought with
the stolen money as well as the remaining
funds seized by the government at the time
of his arrest
Ronald Radcliffe Bribery and money laundering 10/16/2009 40 months in prison and $30,000 ne
Joselito Domingo Bribery 11/19/2009 39 months in prison; 2 years supervised
release; and $70,000 ne
Gloria Martinez Bribery and conspiracy 8/12/2009 5 years in prison
Robert Jeffery Conspiracy and theft 8/11/2009 4 years in prison
William Driver Money laundering 8/5/2009 3 years probation, to include 6 months home
connement, and $36,000 restitution
Nyree Pettaway Conspiracy to obstruct justice 7/28/2009 1 year and 1 day in prison; 2 years supervised
release; and $5 million restitution
Michel Jamil Conspiracy 7/27/2009 40 months in prison
Robert Young Conspiracy and theft of government property 7/24/2009 97 months in prison; 3 years supervised
release; forfeiture of $1 million; and
$26,276,472 restitution
Samir Itani Conspiracy 7/21/2009 2 years in prison; 3 years supervised release;
Tijani Saani Filing false tax returns 6/25/2009 110 months in prison; 1 year supervised
release; $1.6 million ne; and $816,485
restitution to the IRS
Diane Demilta Wire fraud 5/27/2009 6 months in prison; 12-month house arrest;
2 years supervised release; $20,000 ne; and
$70,000 restitution
Benjamin R. Kafka Misprision of a felony 5/18/2009 Pending
Elbert W. George III Theft of government property; conspiracy 5/18/2009 60 days intermittent connement; 2 years
supervised release; forfeit $103,000; and pay
jointly and severally with co-conspirator Roy
Greene $52,286.60 restitution
Roy Greene, Jr. Theft of government property; conspiracy 5/18/2009 3 years supervised release; forfeit $103,000;
and pay jointly and severally with co-
conspirator Elbert George $52,286.60
restitution
Frederick Kenvin Conspiracy 4/30/2009 3 years probation and $2,072,967 restitution
Stephen Day Conspiracy to defraud the United States by
misrepresentation
4/13/2009 3 years probation; $41,522 restitution; and
$2,000 ne
Jeff Alex Mazon, contractor,
KBR
Major fraud against the United States and wire fraud 3/24/2009 1 year probation; 6 months home
connement; and $5,000 ne
Carolyn Blake,
Sister of Maj. John Cockerham
Conspiracy and money laundering 3/19/2009 70 months in prison; 3 years of supervised
release; and $3.1 million restitution
Michael Carter, Project
Engineer, Force Protection
Industries
Violating the Anti-Kickback Act 1/25/2009 61 months in prison and 3 years supervised
release
Harith al-Jabawi, contractor Conspiracy, bribery, and false statements 1/22/2009 Pending
Maj. Christopher Murray,
USA contracting ofcer
Bribery and false statements 1/8/2009 57 months in prison; 3 years supervised
Maj. Theresa Baker,
USAR contracting ofcer
Conspiracy and bribery 12/22/2008 70 months in prison and $825,000 restitution
SIGIR OVERSIGHT
Name Charges
Date of
Conviction Sentence
Col. Curtis Whiteford,
USAR Senior Ofcial, CPA-
South Central Region
Conspiracy, bribery, and wire fraud 11/7/2008 5 years in prison; 2 years supervised release;
Lt. Col. Michael Wheeler, USAR
CPA reconstruction advisor
Conspiracy, bribery, wire fraud, interstate transportation of
stolen property, and bulk cash smuggling
release; $1,200 restitution; and $100 special
assessment
David Ramirez, contractor,
Readiness Support
Management, Inc.
Bulk currency smuggling and structuring transactions 10/9/2008 50 months in prison; 3 years supervised
release; and $200 special assessment
Lee Dubois, contractor,
Future Services General
Trading and Contracting
Company
Theft of government property 10/7/2008 3 years in prison and repayment of $450,000
that represented the illegal proceeds of the
scheme
Robert Bennett, contractor,
KBR
Violating the Anti-Kickback Act 8/28/2008 1 year probation and $6,000 restitution
Maj. James Momon, Jr.,
Conspiracy and bribery 8/13/2008 Pending
Lt. Col. Debra M. Harrison,
USA Acting Comptroller for
CPA-South Central Region
Conspiracy, bribery, money laundering, wire fraud,
interstate transportation of stolen property, smuggling
cash, and preparing false tax returns
Capt. Cedar Lanmon, USA Accepting illegal gratuities 7/23/2008 1 year in prison and 1 year supervised release
Jacqueline Fankhauser Receipt of stolen property 6/30/2008 1 year probation; 180 days home
connement; 104 hours community service;
Maj. John Lee Cockerham, Jr.,
Bribery, conspiracy, and money laundering 6/24/2008 210 months in prison; 3 years of supervised
Melissa Cockerham,
Wife of Maj. John Cockerham
Conspiracy and money laundering 6/24/2008 41 months in prison; 3 years of supervised
Lt. Col. Levonda Selph,
Conspiracy and bribery 6/10/2008 12 months in prison; 3 years supervised
release; $5,000 ne; and $9,000 restitution
Raman International Corp. Conspiracy and bribery 6/3/2008 $500,000 ne and $327,192 restitution
Capt. Austin Key,
Bribery 12/19/2007 2 years connement; 2 years supervised
release; $600 assessment; and forfeit
$108,000
Maj. John Rivard,
Bribery, conspiracy, and money laundering 7/23/2007 10 years in prison; 3 years supervised release;
$5,000 ne; and $1 million forfeiture order
Kevin Smoot,
Managing Director,
Eagle Global Logistics, Inc.
Violating the Anti-Kickback Act and making false
statements
release; $6,000 ne; and $17,964 restitution
Anthony Martin,
subcontractor administrator,
KBR
Violating the Anti-Kickback Act 7/13/2007 1 year and 1 day in prison; 2 years supervised
Jesse D. Lane, Jr.,
USAR 223rd Finance
Detachment
Conspiracy and honest services wire fraud 6/5/2007 30 months in prison and $323,228 restitution
Steven Merkes, DoD civilian,
operational support planner
Accepting illegal gratuities 2/16/2007 12 months and 1 day in prison and $24,000
restitution
Chief Warrant Ofcer Peleti
Pete Peleti, Jr., USA, Armys
food service advisor for
Kuwait, Iraq, and Afghanistan
Bribery and smuggling cash 2/9/2007 28 months in prison and $57,500 ne and
forfeiture
Jennifer Anjakos,
USAR 223rd Finance
Detachment
Conspiracy to commit wire fraud 11/13/2006 3 years probation; $86,557 restitution; and
$100 assessment
Name Charges
Date of
Conviction Sentence
Sgt. Carlos Lomeli Chavez,
USAR 223rd Finance
Detachment
$100 assessment
Sgt. Derryl Hollier,
USAR 223rd Finance
Detachment
Conspiracy to commit wire fraud 11/13/2006 3 years probation; $83,657.47 restitution;
and $100 assessment
Sgt. Luis Lopez,
USAR 223rd Finance
Detachment
$100 assessment
Bonnie Murphy,
contracting ofcer
Accepting unlawful gratuities 11/7/2006 1 year supervised release and
$1,500 ne
Samir Mahmoud, employee of
U.S. construction rm
Making false statements 11/3/2006 1 day credit for time served and 2 years
supervised release
Gheevarghese Pappen,
USACE civilian
Soliciting and accepting illegal gratuities 10/12/2006 2 years in prison; 1 year supervised release;
Lt. Col. Bruce Hopfengardner,
USAR special advisor to CPA-
South Central Region
Conspiracy, conspiring to commit wire fraud and money
laundering, and smuggling currency
release; $200 ne; and $144,500 forfeiture
Faheem Mousa Salam,
interpreter, Titan Corp.
Violating the Foreign Corrupt Practices Acts Anti-Bribery
Provisions
250 hours community service; and $100
special assessment
Mohammad Shabbir Khan,
director of operations for
Kuwait and Iraq, Tamimi
Global Co., Ltd.
Violating the Anti-Kickback Act 6/23/2006 51 months in prison; 2 years supervised
release; $10,000 ne; $133,860 restitution;
and $1,400 assessment
Witness tampering 8/10/2009 15 months in prison; 2 years supervised
release; $6,000 ne; and $200 special
assessment
Philip Bloom, Owner: Global
Business Group, GBG Holdings,
and GBG-Logistics Division
Conspiracy, bribery, and money laundering 3/10/2006 46 months in prison; 2 years supervised
release; $3.6 million forfeiture;
$3.6 million restitution; and $300 special
assessment
Stephen Seamans,
subcontracts manager, KBR
Wire fraud, money laundering, and conspiracy 3/1/2006 12 months and 1 day in prison;
3 years supervised release; $380,130
restitution; and $200 assessment
Christopher Cahill, regional
vice president, Middle East
and India, Eagle Global
Logistics, Inc.
Major fraud against the United States 2/16/2006 30 months in prison; 2 years
supervised release; $10,000 ne; and $100
assessment (a civil settlement with EGL
arising from the same facts resulted in a
settlement of $4 million)
Robert Stein,
CPA-South Central comptroller
and funding ofcer
Felon in possession of a rearm, possession of machine
guns, bribery, money laundering, and conspiracy
2/2/2006 9 years in prison; 3 years supervised
release; $3.6 million forfeiture; $3.5 million
restitution; and $500 special assessment
Glenn Powell,
subcontracts manager, KBR
Major fraud and violating the Anti-Kickback Act 8/1/2005 15 months in prison; 3 years supervised
release; $90,973.99 restitution; and $200
assessment
Note: Does not include non-U.S. court results from joint SIGIR/foreign law enforcement investigations or results from courts martial.
SIGIR OVERSIGHT
Table 5.3
Debarment List
Name Debarred
Ashleigh Woods 9/17/2012
MACR Construction, LLC 9/17/2012
Al Batat Construction Co. 8/24/2012
Hayder Al Batat 8/24/2012
Yahya Al Batat 8/24/2012
Ahmed Alssabari 8/24/2012
Hawks of Iraq 8/24/2012
Richard Lopez Razo 8/24/2012
Charles J. Bowie, MAJ, USA 7/12/2012
Peter D. Dunn 6/14/2012
Global Procurement, Inc. 6/14/2012
World Wide Procurement and
Construction, LLC
6/14/2012
Michelle Lynn Adams 6/14/2012
Matrix International 5/17/2012
Jose Flores 5/17/2012
Barry Steven Szafran 5/17/2012
Jossey V. Varghese 5/17/2012
Specialised Security Systems 5/17/2012
Thomas Aram Manok 5/17/2012
SIMA International 5/17/2012
Ali Amer Huissein 5/17/2012
Majeed Sahdi Majeed 5/17/2012
Al Sald Company for General
Contracts
5/17/2012
C Buildling 5/17/2012
Al Andalus/A- Cap Company 5/17/2012
Al Baqier Company 5/17/2012
Mohammed Baqier 5/17/2012
Frederick Manfred Simon 5/17/2012
Manfred Otto Simon 5/17/2012
Railway Logistics International,
Inc.
5/17/2012
Engineering International
Corporation
5/17/2012
Eric Hamilton 4/30/2012
Mike Atallah 2/25/2012
Marta Atallah 2/25/2012
Theresa J. Baker, MAJ, USA 2/25/2012
Theodore Q. Williams 2/17/2012
Ozgen Kacar 2/17/2012
Mezin Kacar 2/17/2012
Ayfer Atilan 2/17/2012
Continued on next column
Name Debarred
Al Amal Al Mushrig Company 2/15/2012
Charles E. Sublett, MAJ, USA 1/19/2012
Ali Hatham Soleiman 12/15/2011
Al Anbar Trucking Association 12/15/2011
Abed Errazak Soleiman 12/15/2011
Saad Soleiman 12/15/2011
Taleb Alirfan 12/15/2011
Shalan Alirfan 12/15/2011
David Puger, LTC, USA (Ret.) 12/6/2011
Ehsan Hassan Al-Ameli 11/29/2011
Al AALI General Contracting
Co.
11/28/2011
Mahmoud Shakier Mahmoud 10/14/2011
Ahmad Muhammed Hassan 10/13/2011
Al Ula Iraq 10/12/2011
Al Ula FZCO 10/12/2011
Al Ula Global Trading, LLC 10/12/2011
Chet M. Fazand 9/13/2011
Chad M. Fazand 9/13/2011
Fazand International Trading,
LLC
9/13/2011
Al Dalla Co. 9/13/2011
Faustino L. Gonzales, CAPT,
USA
9/7/2011
Chasib Khazal Mehadi Al
Mosawi
9/7/2011
Quasay Shamran Mehdi Al-
Mosawi
9/7/2011
The Economical Group 9/7/2011
Jenna International, Inc. 8/4/2011
Al-Methwad Company 7/21/2011
Tariq Zadan Dawood 7/21/2011
Tareq Zaidan Dawod 7/21/2011
Tariq Zaidan Dawod 7/21/2011
Tariq Zaidon Dawod 7/21/2011
Tarik Zaidon Dawood 7/21/2011
Abd Al Alim Abbod 7/21/2011
Frankie Joseph Hand 7/21/2011
Richard Joseph Harrington 7/21/2011
Janet L. Schmidt 6/22/2011
Mariam M. Steinbuch 6/6/2011
Mark Carnes 6/3/2011
Terence O. Walton 6/3/2011
Al Aali Future Mario Company 5/11/2011
Name Debarred
Eric K. Schmidt 4/20/2011
Mark R. Fuller 4/1/2011
Ahmad Mustafa 1/25/2011
Mubarek Hamed 1/25/2011
Ali Mohammed Bagegni 1/25/2011
Abdel Azzim El-Saddig 1/25/2011
Mark Deli Siljander 1/25/2011
Precy Pellettieri 1/12/2011
Salvatore Pepe 1/12/2011
Ammar Tariq Al Jazrawi 1/10/2011
Ammar Tareq Al Jazrawi
General Contracting Company
1/10/2011
Liberty Al-Ahlia General
Trading and Contracting
Company
12/13/2010
Bronze Al-Taqoos Al-Afjan 12/13/2010
International Quality Kitchens
Ardiya
12/13/2010
John Napolian 12/13/2010
Joseph Sebastian 12/13/2010
N.K. Ismail 12/13/2010
Biju Thomas 12/13/2010
Combat General Trading
Company
12/13/2010
Jank Singh 11/24/2010
Blue Marine Services 11/24/2010
Blue Marines General Trading,
LLC
11/24/2010
Blue Marines 11/24/2010
Blue Marines Group 11/24/2010
BMS Logistics 11/24/2010
BMS Group 11/24/2010
BMS General Trading, LLC 11/24/2010
Christopher Murray 11/10/2010
Curtis Whiteford 10/22/2010
William Driver 10/22/2010
Allied Arms Company, Ltd. 9/28/2010
Allied Arms Company, W.L.L. 9/28/2010
Shahir Nabih Fawzi Audah 9/28/2010
Defense Consulting and
Contracting Group, LLC
9/28/2010
Amwaj Al-Neel Company 9/22/2010
Baladi Company 9/22/2010
Desert Moon Company 9/22/2010
Ameer S. Fadheel 9/22/2010
Name Debarred
Oday Abdul Kareem 9/22/2010
Maytham Jassim Mohammad 9/22/2010
Michael Dung Nguyen 8/19/2010
Michael Wheeler 7/28/2010
Austin Key 7/14/2010
Marko Rudi 5/26/2010
Ashraf Mohammad Gamal 4/16/2010
Triple A United General
Trading
and Contracting
4/16/2010
Jeff Thompson 3/29/2010
John Cockerham 3/17/2010
Melissa Cockerham 3/17/2010
Carolyn Blake 3/17/2010
Nyree Pettaway 3/17/2010
Robert Young 3/9/2010
Elbert Westley George III 1/21/2010
Roy Greene 1/21/2010
Ofelia Webb 1/21/2010
Patrick Faust 1/21/2010
Ali N. Jabak 9/30/2009
Liberty A. Jabak 9/30/2009
Liberty's Construction
Company
9/30/2009
Tharwat Taresh 9/30/2009
Babwat Dourat Al-Arab 9/30/2009
Dourat Al-Arab 9/30/2009
Hussein Ali Yehia 9/30/2009
Amina Ali Issa 9/30/2009
Adel Ali Yehia 9/30/2009
Javid Yousef Dalvi 9/25/2009
Mohamed Abdel Latif Zahed 9/10/2009
Gerald Thomas Krage 9/4/2009
Andrew John Castro 9/4/2009
Airadane, LLC 9/4/2009
Kevin Arthis Davis 8/20/2009
Jacqueline Fankhauser 8/7/2009
Name Debarred
Debra M. Harrison, LTC, USAR 8/7/2009
Nazar Abd Alama 7/1/2009
San Juan Company 7/1/2009
Mississippi Company for the
General Contract
7/1/2009
Lee Dynamics International 6/17/2009
Lee Defense Services
Corporation
6/17/2009
George H. Lee 6/17/2009
Justin W. Lee 6/17/2009
Oai Lee 6/17/2009
Mark J. Anthony 6/17/2009
Levonda J. Selph 6/17/2009
Starcon Ltd., LLC 6/17/2009
Cedar J. Lanmon, CPT, USA 6/3/2009
D+J Trading Company 5/14/2009
Jesse D. Lane, Jr. 1/30/2009
Jennifer Anjakos 1/30/2009
Carlos Lomeli Chavez 1/30/2009
Derryl Hollier 1/30/2009
Luis A. Lopez 1/30/2009
Mohammed Shabbir Kahn 10/10/2008
Kevin Andre Smoot 9/30/2008
Green Valley Company
9/17/2008,
5/18/2007
Triad United Technologies, LLC 9/17/2008
Dewa Europe 9/17/2008
Dewa Trading Establishment 9/17/2008
Al Ghannom and Nair General
Trading Company
9/17/2008
Dewa Projects (Private), Ltd. 9/17/2008
Future AIM United 9/17/2008
First AIM Trading and
Contracting
9/17/2008
Vasantha Nair 9/17/2008
K. V. Gopal 9/17/2008
Falah Al-Ajmi 9/17/2008
Trans Orient General Trading 9/17/2008
Name Debarred
Zenith Enterprises, Ltd. 9/17/2008
Peleti Pete Peleti, CWO, USA 6/15/2008
Al Sawari General Trading and
Contracting Company
3/13/2008
John Allen Rivard, MAJ, USAR 1/14/2008
Samir Mahmoud 11/29/2007
Robert Grove 10/30/2007
Steven Merkes 9/27/2007
Bruce D. Hopfengardner, LTC,
USAR
9/20/2007
Robert J. Stein, Jr. 8/16/2007
Philip H. Bloom 8/8/2007
Global Business Group S.R.L. 8/8/2007
Stephen Lowell Seamans 7/27/2007
Gheevarghese Pappen 6/28/2007
Faheem Mousa Salam 6/28/2007
QAH Mechanical and Electrical
Works
6/27/2007
Abdullah Hady Qussay 6/27/2007
Al Riyadh Laboratories and
Electricity Co.
1/26/2007
Thomas Nelson Barnes 1/24/2007
Danube Engineering and
General Contracting
12/28/2006
Alwan Faiq 12/28/2006
Christopher Joseph Cahill 11/9/2006
Ahmed Hassan Dayekh 9/26/2006
Diaa Ahmen Abdul Latif Salem
5/14/2009,
6/2/2006
Jasmine International Trading
and Service Company
5/14/2009,
6/2/2006
Custer Battles 3/17/2006
Robert Wiesemann, CW2, USA 3/6/2006
Glenn Allen Powell 2/16/2006
Amro Al Khadra 1/12/2006
Dan Trading and Contracting 1/12/2006
Steven Ludwig 9/29/2005
DXB International 9/29/2005
SIGIR OVERSIGHT
Te SIGIR Hotline facilitates the reporting of
fraud, waste, abuse, mismanagement, and reprisal
in all programs associated with Iraq reconstruc-
tion eforts funded by the U.S. taxpayer. Cases
received by the SIGIR Hotline that are not related
to programs and operations funded with amounts
appropriated or otherwise made available for the
reconstruction of Iraq are transferred to the appro-
priate entity. Te SIGIR Hotline receives walk-in,
telephone, mail, fax, and online contacts from
people in Iraq, the United States, and throughout
the world.
Third Quarter Reporting
As of September 30, 2012, the SIGIR Hotline had
initiated 881 cases. Of these cases, 863 have been
closed, and 18 cases remain open. For a summary
of these cases, see Table 5.4.
New Cases
During this reporting period, the SIGIR Hotline
received 3 new complaints, bringing the cumula-
tive total to 881 Hotline cases. Te new complaints
were classifed in these categories:
1 involved contractual issues.
1 involved personnel issues.
1 involved SIGIR website issues.
Te SIGIR Hotline receives most reports of
perceived instances of fraud, waste, abuse, mis-
management, and reprisal through the website and
email. Of SIGIRs 3 new Hotline complaints, 2 were
received through the SIGIR Hotline website and 1
was received over the Hotline telephone.
Closed Cases
During this quarter, SIGIR closed 4 Hotline cases:
1 was referred to another inspector general
agency.
1 was closed by assisting the complainant with
the SIGIR website.
1 was dismissed because it did not fall under
SIGIRs purview.
1 was reviewed and closed by SIGIR
Investigations.
Referred Complaints
Afer a thorough review, SIGIR referred 1 com-
plaint to the Special Inspector General for Afghani-
stan Reconstruction for resolution.
SIGIR HOTLINE
Table 5.4
Summary of SIGIR Hotline Cases,
as of 9/30/2012
Open Cases
Investigations 17
Audits 1
Total Open 18
Closed Cases
1st Qtr
2012
2nd Qtr
2012
3rd Qtr
2012 Cumulative*
FOIA 4
OSC Review 2
Assists 1 48
Dismissed 1 1 1 147
Referred 2 2 1 397
Inspections 80
Investigations 1 156
Audits 29
Total Closed 3 3 4 863
Cumulative* Open & Closed 881
*Cumulative total covers the period since the SIGIR Hotline
began operationsfrom 3/24/2004 to 9/30/2012.
SIGIR WEBSITE SIGIR WEBSITE
During this reporting period, the SIGIR website
(www.sigir.mil) recorded these activities:
More than 75,000 users visited the SIGIR website
this quarter818 users per day.
Te Arabic-language section of the site received
just under 3,000 visits.
Te most frequently downloaded documents
were SIGIRs most recent Quarterly Reports.
Te SIGIR website fed more than 25,000 content
subscriptions. Information is updated to the web
feeds, which are automatically downloaded to
subscribers computers and can be viewed by
feed-reader programs.
Since its inception, SIGIRs custom Google site
search has returned more than 17,200 results.
For an overview of daily visits to the SIGIR web-
site, see Figure 5.4.
SIGIR WEBSITE
Figure 5.4
1,257
Average Number of Visitors per Day to SIGIR
Website, by Quarter, 7/1/20119/30/2012
Source: DoD, IMCEN, response to SIGIR data call, 10/5/2012.
1,152
1,227
1,336
1,137
2010 2011
0
500
1,000
1,500
1,159
Q1 Q4 Q2 Q3 Q3
1,195
1,229
1,336
818
2011 2012
SIGIR OVERSIGHT
During this quarter, the Congress did not take
further action on authorization and appropriations
legislation related to SIGIR or Iraq reconstruction.
Te Congress passed and, on September 28, the
President signed into law House Joint Resolution
117the Continuing Appropriations Resolution,
2013 (Public Law 112-175). As a general rule, the
continuing resolution provided interim FY 2013
appropriations for most programs of the federal
government, including programs to reconstruct
Iraq, at the levels that had been provided in
FY2012 increased by 0.612%. Tat funding is avail-
able through March 27, 2013, unless altered by a
law passed before that date.
In the case of programs designated for Overseas
Contingency Operations/Global War on Terrorism
that had been funded in the FY 2012 Department
of Defense Appropriations Act or the Military
Construction Appropriations Act, funding is
provided at the level in the Presidents FY 2013
budget request.
Te Congress enacted several additional special
provisions, known colloquially as anomalies, that
excepted certain programs from the rule that they
should be funded at prior-year levels or that amend-
ed, waived, or otherwise afected other provisions
of law. However, these anomalies do not appear to
relate materially to the reconstruction of Iraq.
LEGISLATIVE UPDATE

OTHER AGENCY
OVERSIGHT
6
section
Introduction 116
Other Agency Oversight Reports 117
Other Agency Investigations 119
OTHER AGENCY OVERSIGHT
INTRODUCTION
In March 2004, SIGIR formed the Iraq Inspectors
General Council (IIGC) to provide a forum for
discussion of oversight in Iraq and to enhance
collaboration and cooperation among the inspec-
tors general (IGs) of the agencies that oversee Iraq
reconstruction funds. Representatives of member
organizations have met quarterly to exchange
details about current and planned audits, to
identify opportunities for collaboration, and to
minimize redundancies.
In light of the continuing scale-down of eforts
in Iraq, the IIGC transitioned its work under the
umbrella of the Department of Defense Of ce of
Inspector General (DoD OIG) Southwest Asia
Joint Planning Group. As such, the quarterly IIGC
meetings no longer take place. SIGIR continues to
actively participate in the Joint Planning Group. In
September 2012, the Joint Planning Group held its
21st meeting.
In September 2012, the Joint Planning Group
issued the FY2013 update to the Comprehensive
Oversight Plan for Southwest Asia. Te FY2013
update includes descriptions of oversight projects
that directly afect eforts in Southwest Asia and
surrounding areas as of September 1, 2012. Te
projects may be conducted exclusively in theater,
require travel into theater, or be conducted outside
the theater. In addition to the audits of contracts,
subcontracts, and task and delivery orders for logis-
tical support being conducted, this comprehensive
plan addresses other oversight areas, including
asset accountability, transition of security respon-
sibilities in Afghanistan, fnancial and logistics
management, security and the rule of law, and
economic and social development. Te plan update
also includes ongoing oversight eforts related to
Southwest Asia by the Government Accountability
Of ce (GAO).
Each quarter, SIGIR requests updates from
member organizations on their completed, ongo-
ing, and planned oversight activities. Tis sec-
tion summarizes the audits and investigations
reported to SIGIR this quarter by the following
organizations:
DoD OIG
Department of State Of ce of Inspector General
(DoS OIG)
GAO
U.S. Agency for International Development Of-
fce of Inspector General (USAID OIG)
For Defense Contract Audit Agency (DCAA)
updates, see Appendix G.
As of September 30, 2012, the U.S. Army Audit
Agency (USAAA) had ended its operations in Iraq
and will no longer be reported on in this section.
In previous quarters, SIGIR had provided updates
on the U.S. Department of the Treasury and the
U.S. Department of Commerce, but these agencies
have no current Iraq reconstruction oversight ac-
tivities ongoing or planned for FY2013. SIGIR no
longer reports on these agencies in this section.
OTHER AGENCY OVERSIGHT OTHER AGENCY OVERSIGHT REPORTS
OTHER AGENCY OVERSIGHT REPORTS
Tis quarter, other oversight agencies issued 9
reports related to Iraq reconstruction, bringing the
cumulative total to 693 reports issued since 2003.
Tis section updates the audits that former IIGC
member agencies reported to SIGIR:
For recently completed oversight report activity
of other U.S. agencies, see Table 6.1.
For ongoing oversight report activity of other
U.S. agencies, see Table 6.2.
For more information on other agency oversight
reports, including report summaries, see Ap-
pendix G.
For a complete historical list of oversight
reports and reviews on Iraq reconstruc-
tion by all entities, see Appendix H.
Table 6.1
Recently Completed Oversight Reports of Other U.S. Agencies, as of 9/30/2012
Agency Report Number Report Date Report Title
DoD OIG DODIG-2012-138 9/26/2012
Wholesale Accountability Procedures Need Improvement for Redistribution Property Assistance Team
Operations
DoD OIG DODIG-2012-120 8/22/2012
Assessment of DoD Wounded Warrior MattersWounded Warrior BattalionWest Headquarters and
Southern California Units
DoS OIG AUD-MERO-12-43 8/1/2012 Evaluation of Invoices and Payments for the Embassy Baghdad Operations and Maintenance Contract
GAO GAO-12-1026T 9/12/2012
Operational Contract Support: Sustained DoD Leadership Needed to Better Prepare for Future
Contingencies
GAO GAO-12-977R 9/12/2012
Iraq and Afghanistan: Agencies Are Taking Steps to Improve Data on Contracting but Need to
Standardize Reporting
GAO GAO-12-750 8/2/2012
Iraq and Afghanistan: State and DoD Should Ensure Interagency Acquisitions Are Effectively
Managed and Comply with Fiscal Law
GAO GAO-12-854R 8/1/2012
Contingency Contracting: Agency Actions to Address Recommendations by the Commission on
Wartime Contracting in Iraq and Afghanistan
GAO GAO-12-759RSU 7/26/2012 Mission Iraq: State and DoD Have Not Finalized Security and Support Capabilities
USAID OIG E-267-12-004-P 7/30/2012 Audit of USAID/Iraq's Performance Evaluation and Reporting for Results Management Program
Table 6.2
Ongoing Oversight Activities of Other U.S. Agencies, as of 9/30/2012
Agency Project Number Date Initiated Project Title
DoD OIG D2012-D00SPO-0205.000 8/16/2012 Assessment of the Ofce of Security Cooperation-Iraq Mission Capability
DoD OIG D2011-D000CH-0032.000 10/19/2010
Contractor Logistics Support Contract for Stryker Vehicles with General
Dynamics Land Systems
DoD OIG D2010-D00SPO-0209.000 4/16/2010 Assessment of DoD Wounded Warrior Matters
DoS OIG 12AUDXXX 6/29/2012 Audit of the Process for Realigning the U.S. Diplomatic Presence in Iraq
DoS OIG 12AUD050 3/22/2012 Audit of the Worldwide Protective Services ContractTask Order 005
USAID OIG EE100412 7/2/2012 Audit of USAID/Iraq's Access to Justice Program
USAID OIG EE100212 4/22/2012
Survey of Security Contractor Services Employed by USAID/Iraqs
Contractors and Grantees
USAID OIG EE100112 11/22/2011 Audit of USAID/Iraqs Legislative Strengthening Program
OTHER AGENCY INVESTIGATIONS
SIGIR regularly coordinates with other govern-
ment agencies conducting investigations in Iraq.
For statistics of investigative activities from other
agencies, see Table 6.3.
Table 6.3
Status of Investigative Activities of Other U.S. Agencies, as of 9/30/2012
Agency
Investigators
in Iraq
Investigators
in Kuwait
Open/Ongoing
Cases*
U.S. Army Criminal Investigation Command,
Major Procurement Fraud Unit
2 85
Defense Criminal Investigative Service 1 131
DoS OIG 3 20
FBI 1 1 28
Naval Criminal Investigative Service 1 2
U.S. Air Force, Ofce of Special Investigations
USAID 1 11
Total 5 5 277
* Numbers include pending cases worked with other agencies within the Joint Operations Center.

ENDNOTES AND
ACRONYMS AND
DEFINITIONS
Endnotes 122
Acronyms and Denitions 132
ENDNOTES
1. U.S. Embassy-Baghdad, press release,
Ambassador Beecrof Arrives as New U.S.
Ambassador to Iraq, 10/11/2012, iraq.
usembassy.gov/pr-101112.html, accessed
10/13/2012; White House, Of ce of the Press
Secretary, press release, President Obama
Announces More Key Administration
Posts, 9/10/2012; U.S. Senate, Nominations
Confrmed (Civilian), 9/22/2012, www.
senate.gov/pagelayout/legislative/one_item_
and_teasers/nom_confc.htm, accessed
9/26/2012.
2. Ambassador Robert Stephen Beecrof,
testimony before the Senate Foreign Relations
Committee, Senate Foreign Relations
Committee Holds Confrmation Hearing
on Robert Stephen Beecrof To Be U.S.
Ambassador to Iraq, CQ Congressional
Transcripts, 9/19/2012.
3. HJC, Clarifcation Regarding Mr. Sinan
al-Shabibis Case, 10/18/2012, www.iraqja.iq/
view.1654/, accessed 10/18/2012; International
bank, Iraq Country Director, information
provided to SIGIR, 10/17/2012; GOI, CBI,
Statistical charts, www.cbi.iq/documents/
exchange_rates_chart..jpg, accessed 10/18/2012;
GOI Prime Minister, news conference,
Prime Minister Nouri al-Maliki Respones to
Jornalists Questions, 10/24/2012, pmo.iq./
ArticleShow.aspx?ID=699, accessed 10/24/2012.
4. International bank, Iraq Country Director,
information provided to SIGIR, 10/17/2012;
IMF, senior economist, information provided to
SIGIR, 10/18/2012.
5. GOI, BSA, President, meeting with SIGIR,
9/18/2012; International bank, Iraq Country
Director, information provided to SIGIR,
10/17/2012; IMF, senior economist, information
provided to SIGIR, 10/18/2012; SIGIR analysis
of open-source material, 10/17/2012; U.S.
Embassy-Baghdad, meetings with SIGIR,
6/2010 and 2/2012.
6. GOI, BSA President, meeting with SIGIR,
9/18/2012.
7. GOI, CoR, Federal Budget Law for the
Fiscal Year/2012, articles 1, 2, 36, 2/23/2012,
www.parliament.iq, accessed 2/24/2012, and
Federal Public Budget Law for the Fiscal
Year 2011, 2/23/2011, Article 2; GOI, MOF,
GOI Budget (as approved by TNA and
written into law December 2005); GOI,
Presidency of the Iraqi Interim National
Assembly, Te State General Budget for
2005, 2005; GOI, MoPDC, Indicators of
the Investment Budget for Year 2010, Table
17, 2011, www.mop.gov.iq/mop/resources/
pdf/About%20MOP/Economical%20Rebort/
Report%203.doc, accessed on 7/11/2012;
GOI, Budget Revenues and Expenses 2003,
JulyDecember, 2003; SIGIR, Quarterly
and Semiannual Reports to the United States
Congress, 3/20044/2011; U.S. Treasury,
responses to SIGIR data calls, 1/4/2008 and
4/9/2009.
8. P.L. 108-7; P.L. 108-11; P.L. 108-106; P.L. 108-
287; P.L. 109-13; P.L. 109-102; P.L. 109-148;
P.L. 109-34; P.L. 109-289; P.L. 110-28; P.L. 110-
92; P.L. 110-116; P.L. 110-137; P.L. 110-149; P.L.
110-161; P.L. 110-252; P.L. 111-32; P.L. 111-117;
P.L. 111-118; P.L. 111-212; P.L. 112-10, P.L. 112-
74; ABO, response to SIGIR data call, 1/18/2012;
BBG, response to SIGIR data call, 3/7/2011;
DCAA, response to SIGIR data call, 10/4/2011;
DoJ, Justice Management Division, response
to SIGIR data call, 10/9/2012; PM, response to
SIGIR data call, 7/6/2011; DoS, Congressional
Budget Justifcation: Foreign Assistance,
Summary Tables, FY 2009FY 2011; DoS,
Executive Budget Summary Function 150
& Other International Programs, Fiscal Year
2013, p. 173; DRL, response to SIGIR data
call, 7/9/2012; ECA, response to SIGIR data
call, 4/14/2010; OMB, response to SIGIR data
call, 6/21/2010; INL, response to SIGIR data
call, 10/16/2012; USAID, U.S. Overseas Loans
and Grants [Greenbook], 2008, gbk.eads.
usaidallnet.gov/query/do?_program=/eads/gbk/
countryReport&unit=N, accessed 4/15/2010;
U.S. Treasury, OTA, Of ce of Technical
Assistance Overview, 12/30/2005, ustreas.
gov/of ces/international-afairs/assistance/,
accessed 10/16/2009; TFBSO, response to SIGIR
data call, 1/4/2011; SIGIR Audit 11-007, Iraq
Relief and Reconstruction Fund 1: Report on
Apportionments, Expenditures, and Cancelled
Funds, 12/28/2010; USAID, responses to SIGIR
data calls, 1/12/2009, 4/8/2009, 10/2/2012, and
10/15/2012; U.S. Embassy-Baghdad, responses
to SIGIR data calls, 10/3/2009, 10/5/2011,
1/4/2012, 4/3/2012, 7/3/2012, and 10/1/2012;
NEA-I, responses to SIGIR data calls, 10/4/2012,
10/6/2010, 4/15/2011, 9/28/2011, 9/20/2012,
9/27/2012, 9/25/2012, 10/1/2012, 10/2/2012,
and 10/10/2012; OUSD(C), United States
Department of Defense Fiscal Year 2012 Budget
Request, Overview, 2/2012, p. 6-6; OUSD(C),
10/2/2012; USACE, responses to SIGIR data
calls, 10/6/2008 and 10/1/2012.
9. NEA-I, responses to SIGIR data calls,
4/5/2011, 4/7/2011, and 7/12/2011; World
Bank, World Bank Operations in Iraq,
12/31/2011, siteresources.worldbank.org/
IRFFI/Resources/DatasheetDecember2011.
pdf, accessed 3/16/2012; Embassy of Japan in
Iraq, press release, Provision of Yen Loan to
Iraq, 5/29/2012, www.iraq.emb-japan.go.jp/
Press_Releases/Press_release_2012_No13.
html, accessed 6/26/2012.
10. P.L. 108-7; P.L. 108-11; P.L. 108-106; P.L. 108-
287; P.L. 109-13; P.L. 109-102; P.L. 109-148; P.L.
109-34; P.L. 109-289; P.L. 110-28; P.L. 110-92;
P.L. 110-116; P.L. 110-137; P.L. 110-149; P.L. 110-
161; P.L. 110-252; P.L. 111-32; P.L. 111-117; P.L.
111-118; P.L. 111-212; P.L. 112-10, P.L. 112-74;
ABO, response to SIGIR data call, 1/18/2012;
BBG, response to SIGIR data call, 3/7/2011;
call, 10/16/2012; USAID, U.S. Overseas
Loans and Grants [Greenbook], 2008, gbk.
eads.usaidallnet.gov/query/do?_program=/
eads/gbk/countryReport&unit=N, accessed
4/15/2010; U.S. Treasury, OTA, Of ce of
Technical Assistance Overview, 12/30/2005,
ustreas.gov/of ces/international-afairs/
assistance/, accessed 10/16/2009; TFBSO,
response to SIGIR data call, 1/4/2011; SIGIR
Audit 11-007, Iraq Relief and Reconstruction
Fund 1: Report on Apportionments,
Expenditures, and Cancelled Funds,
12/28/2010; USAID, responses to SIGIR data
calls, 1/12/2009, 4/8/2009, 10/2/2012, and
1/4/2012, 4/3/2012, 7/3/2012, and 10/1/2012;
10/6/2010, 4/15/2011, 9/28/2011, 9/20/2012,
9/27/2012, 9/25/2012, 10/1/2012, 10/2/2012,
calls, 10/6/2008 and 10/1/2012. OUSD(C),
United States, Department of Defense, Fiscal
Year 2013 Budget Request Overview, 2/2012,
p. 6-5; DoS, Executive Budget Summary
Function 150 & Other International Programs,
Fiscal Year 2013, pp. 147, 148, 158, 173; DoS,
Congressional Budget Justifcation, Foreign
Assistance, Summary Tables, Fiscal Year 2013,
pp. 10, 17, 24, 101; DoS, Congressional Budget
Justifcation, Volume 1: Department of State
Operations, Fiscal Year 2013, p. 812; OUSD(C),
Fiscal Year 2012 Budget Request Overview,
2/2012, p. 6-6; U.S. House of Representatives,
Department of Defense Appropriations
Bill, 2012, Report 112-110, p. 298; DoS,
Congressional Budget Justifcation, Volume
2: Foreign Operations, Fiscal Year 2012, pp.
99, 101, 188, 190; DoS, Congressional Budget
Justifcation, Foreign Assistance, Summary
Tables, Fiscal Year 2012, pp. 25, 101; DoS,
Congressional Budget Justifcation, Volume
1: Department of State Operations, Fiscal Year
2012, p. 779; SIGIR, FY 2012 Budget, p. 1;
NEA-I, responses to SIGIR data calls, 7/7/2011
and 3/27/2012; ABO, response to SIGIR data
call, 1/18/2012.
11. P.L. 108-7; P.L. 108-11; P.L. 108-106; P.L. 108-
287; P.L. 109-13; P.L. 109-102; P.L. 109-148;
P.L. 109-34; P.L. 109-289; P.L. 110-28; P.L. 110-
92; P.L. 110-116; P.L. 110-137; P.L. 110-149; P.L.
110-161; P.L. 110-252; P.L. 111-32; P.L. 111-117;
P.L. 111-118; P.L. 111-212; P.L. 112-10; P.L. 112-
74. Budget terminology is inconsistent among
reporting agencies. For a cross-reference of
funding terms associated with the major
reconstruction funds, see Appendix B of this
Quarterly Report, located at www.sigir.mil.
12. OSC-I, response to SIGIR data call, 10/2/2012.
13. OUSD(C), response to SIGIR data call,
10/2/2012.
16. U.S. Embassy-Baghdad, responses to SIGIR
data calls, 7/6/2012, 10/1/2012, and 10/5/2012;
DoD, OUSD(AT&L), SPOT Program Support,
ENDNOTES
response to SIGIR data call, 10/15/2012.
17. OSC-I, responses to SIGIR data call, 10/2/2012
and 10/15/2012.
18. SIGIR Audit 12-020, Iraq Police
Development Program: Lack of Iraq Support
and Security Problems Raise Questions about
the Continued Viability of the Program,
7/30/2012.
19. INL, response to SIGIR data call, 10/1/2012;
SIGIR Audits 12-006, Iraqi Police
Development Program: Opportunities for
Improved Program Accountability and
Budget Transparency, 10/24/2011, and
12-020, Iraq Police Development Program:
Lack of Iraqi Support and Security Raise
Questions about the Continued Viability of
the Program, 7/30/2012.
GOI, Principal Deputy Minister of Interior,
meeting with SIGIR, 9/16/2012.
21. INL, response to SIGIR data call, 10/1/2012.
25. NEA-I, response to SIGIR data call, 10/2/2012;
USAID, response to SIGIR data call,
10/2/2012.
26. USAID, response to SIGIR data call,
10/2/2012.
28. Baqir Jabr al-Zubeidi, CoR representative and
former GOI Minister of Finance, Interior, and
Housing and Reconstruction, meeting with
SIGIR, 9/20/2012; OSC-I Chief, meeting with
SIGIR, 9/21/2012.
29. Garth Jennings, Iraq Signs Up for USD4.2
Billion of Russian Arms, IHS: Janes,
10/10/2012, www.janes.com/products/janes/
defence-security-report.aspx?ID=1065972241
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announcement was inclusive of previously
unannounced agreements signed by Iraqs
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August.
30. GOI, CoM, Cabinet Resolutions, 7/31/2012
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31. CRS, Conventional Arms Transfers to
Developing Nations, 20042011, 8/24/2012, p.
45. Arms transfer agreements are generally
defned as government-to-government
transactions resulting in the transfer of
conventional armaments.
32. CRS, Conventional Arms Transfers to
Developing Nations, 20042011, 8/24/2012, p.
45.
34. OSD, responses to SIGIR data calls, 4/10/2009
and 10/2/2012; DoS, response to SIGIR data
call, 4/5/2007; NEA-I, responses to SIGIR data
call, 9/20/2012 and 9/25/2012; INL, response
to SIGIR data call, 10/15/2012; IRMS, USF-I
CERP Category Report, 9/20/2010.
35. GOI, Principal Deputy Minister of Interior,
meeting with SIGIR, 9/16/2012; Baqir Jabr al-
Zubeidi, CoR representative and former GOI
Minister of Finance, Interior, and Housing
and Reconstruction, meeting with SIGIR,
9/20/2012.
36. OSC-I Chief, meeting with SIGIR, 9/21/2012.
37. Reidar Visser, Iraqs New Independent
Electoral Commission: Some Initial
Toughts, 9/17/2012 and, Parliamentary
Setback for Maliki in the Electoral
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38. Gallup, In Iraqi Kurdistan, Satisfaction with
Infrastructure Crumbles, 9/7/2012, www.
gallup.com/poll157298/Iraqi-kurdistan.
satisfaction-infrastructure-crumbles.aspx,
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39. Iraq Oil Report, Iraq Cabinet Approves
Kurdish Export Agreement, 9/19/2012;
OSC-I Chief, meeting with SIGIR, 9/21/2012.
40. EIU, Country Report: Iraq, 9/2012, p. 4.
41. UNHCR, Syria Situation Weekly Update,
No. 19, 10/3/2012; UNHCR, press briefng,
Winter Preparations Underway for Tens of
Tousands of Uprooted Syrians, 10/12/2012,
reliefweb.int/report/syrian-arab-republic/
winter-preparations-underway-tens-
thousands-uprooted-syrians, accessed
10/12/2012; UNHCR, Syria Regional Refugee
Response: Jordan, Lebanon, Iraq, Turkey,
update, 10/5/2012.
No. 19, 10/3/2012; UNHCR, press briefng,
Winter Preparations Underway for Tens of
Tousands of Uprooted Syrians, 10/12/2012,
reliefweb.int/report/syrian-arab-republic/
winter-preparations-underway-tens-
thousands-uprooted-syrians, accessed
10/12/2012; PRM, response to SIGIR data
call, 9/25/2012; UNHCR, Syria Regional
Response Plan, second revision, 9/2012.
43. DoS, press release, Delisting of the
Mujahedin-e Khalq, 9/28/2012, www.state.
gov/r/pa/prs/ps/2012/09/198443.htm, accessed
10/23/2012.
44. ITAO/ESD, Electric Daily Performance
Reports, 6/1/20066/30/2011; DoS, Iraq Status
Reports, 10/25/2006, slide 11, and 5/9/2007,
slide 11; U.S. Embassy-Baghdad, responses
7/3/2012, and 10/1/2012; GOI, NMC, Status
of the Ministry of Electricity, selected
reports, 9/1/20129/30/2012, nmc.gov.iq/
default.aspx, accessed various dates. As of
press time, MOE supply data was available for
only 21 of the 30 days in September 2012. Te
supply numbers presented in SIGIRs July 2012
Quarterly Report for the AprilJune 2012
period were estimates based on incomplete
data; those numbers have been updated for
this Report.
45. GOI, Of ce of the Deputy Prime Minister
for Energy Afairs, information provided to
SIGIR, 9/26/2012.
46. GOI, MOE, press release, Ministry of
Electricity: Stoppage of Our Generating Units
because of the Scarcity of Fuel Problem Is
Not the Result of Today, 8/16/2012, www.
moelc.gov.iq/ar/index.php?name=News&fle
=article&sid=500, accessed 8/28/2012; GOI,
MOE, press release, Loss of 1250 MW of the
National Electricity System because of the
Scarcity of Fuel, 8/27/2012, www.moelc.gov.
iq/ar/index.php?name=News&fle=article&s
id=503, accessed 8/28/2012.
47. OSC-I Chief, meeting with SIGIR, 9/21/2012;
MOI, information provided to SIGIR,
10/2/2012.
48. SIGIR analysis of open-source documents in
Arabic and English, 7/20129/2012.
50. GOI of cials, meetings with SIGIR, 9/1/2012
9/21/2012.
51. U.S. Treasury of cials, meetings with SIGIR,
1/20119/2011.
52. INL, ACCO of cial, meetings with SIGIR,
6/2011; GOI, BSA President, meeting with
SIGIR, 9/18/2012.
9/18/2012.
54. Judge Raheem al-Ugaili, former GOI
Commissioner of Integrity, meeting with
SIGIR, 9/20/2012; GOI, COI, Anti Bribery
COI Teams Performed a Field Visits to the
State Of ces, 8/28/2012, www.nazaha.iq/
en_body.asp?feld=news_en&id=428&page_
namper=e3, accessed 9/8/2012; GOI, MIM,
Ministry Inspector General, meeting with
SIGIR, 6/3/2012.
55. Platts Commodity News, Iraq Produced
Record 3.051 Million b/d of Crude in July:
Ministry, 8/29/2012; GOI, Ministry of Oil,
Production, Export & Consumption of
Crude Oil and Associated Gas, 8/2012, www.
oil.gov.iq/moo/domestic.php?lang=en&page_
name=domestic, accessed 9/28/2012.
56. U.S. Treasury, responses to SIGIR data calls,
1/10/2012 and 10/16/2012.
57. IMF, World Economic Outlook, 2012,
10/13/2012, p. 81, www.imf.org/external/
pubs/f/weo/2012/02/pdf/text.pdf, accessed
10/17/2012.
58. IEA, Iraq Energy Outlook, 10/9/2012, p. 11.
59. IMF, senior economist, information provided
to SIGIR, 10/18/2012; International Bank,
Iraq Country Representative, information
provided to SIGIR, 10/17/2012; Rabee
Securities, Letter to Clients, Te Iraqi
Government Announced the Dismissal of the
CBIs Chief, 10/17/2012.
60. World Bank, senior private-sector
development specialist, information
provided to SIGIR, 9/17/2012; UN, IAU,
Sustainable Development, Green Economy
and Oil and Gas in Iraq, 6/2012, iq.one.
un.org/documents/469/sustainable%20
Development%20-%20English.pdf, accessed
10/9/2012.
61. P.L. 108-7; P.L. 108-11; P.L. 108-106; P.L.
108-287; P.L. 109-13; P.L. 109-102; P.L. 109-
148; P.L. 109-34; P.L. 109-289; P.L. 110-28;
P.L. 110-92; P.L. 110-116; P.L. 110-137; P.L.
110-149; P.L. 110-161; P.L. 110-252; P.L. 111-
32; P.L. 111-117; P.L. 111-118; P.L. 111-212;
P.L. 112-10, P.L. 112-74; ABO, response to
SIGIR data call, 1/18/2012; BBG, response to
SIGIR data call, 3/7/2011; DCAA, response
to SIGIR data call, 10/4/2011; DoJ, Justice
Management Division, response to SIGIR
data call, 10/9/2012; PM, response to SIGIR
data call, 7/6/2011; DoS, Congressional
ENDNOTES
data calls, 1/12/2009, 4/8/2009, 10/2/2012, and
1/4/2012, 4/3/2012, 7/3/2012, and 10/1/2012;
10/6/2010, 4/15/2011, 9/28/2011, 9/20/2012,
9/27/2012, 9/25/2012, 10/1/2012, 10/2/2012,
calls, 10/6/2008 and 10/1/2012.
62. OUSD(C), United States, Department of
Defense, Fiscal Year 2013 Budget Request
Overview, 2/2012, p. 6-5; DoS, Executive
Budget Summary Function 150 & Other
International Programs, Fiscal Year 2013, pp.
147, 148, 158, 173; DoS, Congressional Budget
Justifcation, Foreign Assistance, Summary
Tables, Fiscal Year 2013, pp. 10, 17, 24, 101;
DoS, Congressional Budget Justifcation,
Volume 1: Department of State Operations,
Fiscal Year 2013, p. 812; OUSD(C), Fiscal Year
2012 Budget Request Overview, 2/2012, p. 6-6;
U.S. House of Representatives, Department
of Defense Appropriations Bill, 2012, Report
112-110, p. 298; DoS, Congressional Budget
Justifcation, Volume 2: Foreign Operations,
Fiscal Year 2012, pp. 99, 101, 188, 190; DoS,
Congressional Budget Justifcation, Foreign
Assistance, Summary Tables, Fiscal Year
2012, pp. 25, 101; DoS, Congressional Budget
Justifcation, Volume 1: Department of State
Operations, Fiscal Year 2012, p. 779; SIGIR,
FY 2012 Budget, p. 1; NEA-I, responses to
SIGIR data calls, 7/7/2011 and 3/27/2012; ABO,
response to SIGIR data call, 1/18/2012; P.L. 111-
383; P.L. 112-10; P.L. 112-74.
63. P.L. 112-175.
64. P.L. 112-175; P.L. 112-74; DoS, Congressional
Budget Justifcation, Foreign Assistance,
Summary Tables, Fiscal Year 2013, p. 17.
65. P.L. 112-175.
9/28/2011, 3/27/2012, 6/28/2012, 6/29/2012,
7/2/2012, 9/25/2012, 10/1/2012, and 10/2/2012;
USACE, responses to SIGIR data calls,
4/3/2012, 7/5/2012, and 10/1/2012; U.S.
Embassy-Baghdad, responses to SIGIR
data calls, 10/5/2011, 1/4/2012, 4/3/2012,
7/3/2012, and 10/1/2012; USAID, response to
SIGIR data call, 4/2/2012; INL, responses to
SIGIR data calls, 7/10/2012 and 10/16/2012;
OUSD(C), responses to SIGIR data calls,
7/11/2012 and 10/2/2012.
67. P.L. 108-7; P.L. 108-11; P.L. 108-106; P.L. 108-
287; P.L. 109-13; P.L. 109-102; P.L. 109-148;
P.L. 109-34; P.L. 109-289; P.L. 110-28; P.L. 110-
92; P.L. 110-116; P.L. 110-137; P.L. 110-149; P.L.
110-161; P.L. 110-252; P.L. 111-32; P.L. 111-117;
P.L. 111-118; P.L. 111-212; P.L. 112-10; P.L. 112-
74. Budget terminology is inconsistent among
reporting agencies. For a cross-reference of
funding terms associated with the major
reconstruction funds, see Appendix B of this
Quarterly Report, located at www.sigir.mil.
68. P.L. 109-13; P.L. 109-234;P.L. 109-289;P.L. 110-
28; P.L. 110-161; P.L. 110-252; P.L. 111-32; P.L.
111-212; P.L. 112-10.
10/2/2012.
70. OUSD(C), responses to SIGIR data calls,
7/11/2012 and 10/2/2012.
71. P.L. 109-102; P.L. 109-234; P.L. 110-28; P.L.
110-92; P.L. 110-137; P.L. 110-149;P.L. 110-161;
P.L. 110-252; P.L. 111-32; P.L. 111-117; P.L.
112-10; USAID, responses to SIGIR data
call, 10/11/2011 and 10/12/2011; USACE,
response to SIGIR data call, 10/4/2011; NEA-I,
responses to SIGIR data call, 9/28/2011 and
9/30/2011.
9/28/2011, 9/25/2012, 10/1/2012, and
10/2/2012; USACE, response to SIGIR data
call, 10/1/2012; U.S. Embassy-Baghdad,
responses to SIGIR data calls, 10/5/2011,
1/4/2012, 4/3/2012, 7/3/2012, and 10/1/2012.
Total available for obligation to new activities
does not include $260 million that has
expired.
9/28/2011, 3/27/2012, 6/28/2012, 6/29/2012,
7/2/2012, 9/25/2012, 10/1/2012, and 10/2/2012;
USACE, responses to SIGIR data calls,
4/3/2012, 7/5/2012, and 10/1/2012; U.S.
Embassy-Baghdad, responses to SIGIR data
calls, 10/5/2011, 1/4/2012, 4/3/2012, 7/3/2012,
and 10/1/2012; USAID, response to SIGIR
data call, 4/2/2012.
74. P.L. 109-234;P.L. 110-5;P.L. 110-28; P.L. 110-
161; P.L. 110-252; P.L. 111-32; P.L. 111-117; P.L.
111-212; P.L. 112-10.
76. INL, responses to SIGIR data calls, 7/10/2012
and 10/16/2012.
77. P.L. 108-7; P.L. 108-11; P.L. 108-106; P.L. 108-
287; P.L. 109-13; P.L. 109-102; P.L. 109-148;
P.L. 109-34; P.L. 109-289; P.L. 110-28; P.L.
110-92; P.L. 110-116; P.L. 110-137; P.L. 110-149;
P.L. 110-161; P.L. 110-252; P.L. 111-32; P.L.
111-117; P.L. 111-118; P.L. 111-212; P.L. 112-10;
P.L. 112-74; BBG, response to SIGIR data call,
3/7/2011; DCAA, response to SIGIR data call,
10/4/2011; DoJ, Justice Management Division,
response to SIGIR data call, 10/9/2012;
PM, response to SIGIR data call, 7/6/2011;
DoS, Congressional Budget Justifcation:
Foreign Assistance, Summary Tables, FY
2009FY 2011; USAID, U.S. Overseas
Loans and Grants [Greenbook], 2008, gbk.
eads.usaidallnet.gov/query/do?_program=/
eads/gbk/countryReport&unit=N, accessed
4/15/2010; OMB, response to SIGIR data call,
6/21/2010; USAID, responses to SIGIR data
calls, 1/12/2009, 4/8/2009, 10/2/2012, and
10/15/2012; USACE, response to SIGIR data
call, 10/6/2008; TFBSO, response to SIGIR
data call, 1/4/2011; OUSD(C), response to
SIGIR data call, 10/14/2010 and United States
Department of Defense Fiscal Year 2012
Budget Request, Overview, 2/2012, p. 6-6;
ECA, response to SIGIR data call, 4/14/2010;
DRL, response to SIGIR data call, 7/9/2012;
DoS, Executive Budget Summary Function
150 & Other International Programs, Fiscal
Year 2013, p. 173; U.S. Treasury, OTA,
Of ce of Technical Assistance Overview,
12/30/2005, ustreas.gov/of ces/international-
afairs/assistance/, accessed 10/16/2009; U.S.
Embassy-Baghdad, response to SIGIR data
call, 10/3/2009; NEA-I, responses to SIGIR
data calls, 10/4/2010, 10/6/2012, 4/15/2012,
9/27/2012, and 10/10/2012.
78. NEA-I, response to SIGIR data call,
10/10/2012. Totals also include Emergency
Refugee & Migration Assistance (ERMA)
funds which were made available in FY 2003
($40 million) and FY 2007 ($12 million).
79. DoS, Executive Budget Summary Function
150 & Other International Programs, Fiscal
Year 2013, p. 173; OSC-I Chief, meeting with
SIGIR, 9/21/2012.
80. BBG, response to SIGIR data call, 3/7/2011;
data calls, 1/12/2009, 4/8/2009, 10/2/2012, and
1/4/2012, 4/3/2012, 7/3/2012, and 10/1/2012;
10/6/2010, 4/15/2011, 9/28/2011, 9/20/2012,
9/27/2012, 9/25/2012, 10/1/2012, 10/2/2012,
calls, 10/6/2008 and 10/1/2012.
81. GOI, CoR, Federal Budget Law for the
Fiscal Year/2012, articles 1, 2, 36, 2/23/2012,
www.parliament.iq, accessed 2/24/2012, and
Federal Public Budget Law for the Fiscal
Year 2011, 2/23/2011, Article 2; GOI, MOF,
GOI Budget (as approved by TNA and
written into law December 2005); GOI,
Presidency of the Iraqi Interim National
Assembly, Te State General Budget for
2005, 2005; GOI, MoPDC, Indicators of
the Investment Budget for Year 2010, Table
17, 2011, www.mop.gov.iq/mop/resources/
pdf/About%20MOP/Economical%20Rebort/
ENDNOTES
Report%203.doc, accessed on 7/11/2012;
GOI, Budget Revenues and Expenses 2003,
JulyDecember, 2003; SIGIR, Quarterly
and Semiannual Reports to the United States
Congress, 3/20044/2011; U.S. Treasury,
4/9/2009.
82. GOI, CoR, General Budget Law for the
Federal Republic of Iraq for the Financial
Year 2012, 2/23/2012, www.parliament.iq/,
accessed 2/23/2012.
83. GOI, of cial spokesperson, Dabbagh:
Council of Ministers Approved
Supplementary Budget for 2012, a Total of
10.8 Trillion Dinar, 7/3/2012, www.goi-s.
com/view.1298, accessed 7/9/2012.
84. CoR, press release, Dissections and
Recommendations of Session (12) Wednesday
1 Aug 2012, parliament.iq, accessed
9/17/2012.
Year 2012, 2/23/2012, www.parliament.iq/,
accessed 2/24/2012.
1/10/2012, 4/8/2012, 7/5/2012, and 10/16/2012.
1/10/2012, 4/8/2012, 7/5/2012, and 10/16/2012.
Year 2012, 2/23/2012, www.parliament.
iq/, accessed 2/24/2012; GOI, press release,
Dabagh: 138 Trillion Dinars the 2013
Federal Budget, 10/23/2012, www.goi-s.com/
view.1355/, accessed 10/23/2012.
4/5/2011, 4/7/2011, and 7/12/2011; World
4/5/2011, 4/7/2011, and 7/12/2011; Embassy
of Japan in Iraq, press release, Provision
of Yen Loan to Iraq, 5/29/2012, www.iraq.
emb-japan.go.jp/Press_Releases/Press_
release_2012_No13.html, accessed 6/26/2012.
4/5/2011, 4/7/2011, and 7/12/2011; World
pdf, accessed 3/16/2012.
4/5/2011, 4/7/2011, and 7/12/2011; World
html, accessed 6/26/2012. Tis total includes
$10 million in U.S. funds.
93. IMF, press release, IMF Approves Seven-
Month Extension of Stand-By Arrangement
for Iraq, 8/3/2012, www.imf.org/external/np/
sec/pr/2012/pr12286.htm, accessed 8/22/2012,
and senior economist, information provided
to SIGIR, 10/9/2012.
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95. Federal Business Opportunities, Baghdad
Life Support Services (BLISS), Solicitation
Number SAQMMA-12-R-0130, www.fo.
gov/index?s=opportunity&mode=form&id=
13e1f12af0cfe0f e0e1891c76cb0d&tab=co
re&_cview=1, accessed 9/17/2012.
96. U.S. Consulate-Kirkuk, Principal Of cer,
97. GAO Testimony GAO-12-856T, statement
of Michael J. Courts, Acting Director
International Afairs and Trade, Mission
Iraq: State and DoD Face Challenges in
Finalizing Support and Security Capabilities,
6/28/2012, p. 3.
98. OSC-I Chief, meeting with SIGIR, 9/21/2012,
and response to SIGIR data call, 10/2/2012.
Ambassador Beecrof Arrives as New U.S.
Ambassador to Iraq, 10/11/2012, iraq.
usembassy.gov/pr-101112.html, accessed
10/13/2012; White House, Of ce of the Press
Secretary, press release, President Obama
Announces More Key Administration
Posts, 9/10/2012; U.S. Senate, Nominations
Confrmed (Civilian), 9/22/2012, www.
senate.gov/pagelayout/legislative/one_item_
and_teasers/nom_confc.htm, accessed
9/26/2012.
data call, 10/1/2012 and 10/5/2012.
data call, 7/6/2012, 10/1/2012, and 10/5/2012.
104. DoD, OUSD(AT&L), SPOT Program Support,
105. GAO Report GAO-11-886, Iraq and
Afghanistan: DOD, State, and USAID Cannot
Fully Account for Contracts, Assistance
Instruments, and Associated Personnel,
9/2011, pp. 67, 1718.
Contractor personnel includes direct OSC-I
hires, contractor personnel working on
cases administered by OSC-I, and security
contractors.
107. OSC-I, response to SIGIR data call,
10/15/2012.
108. DoD, OUSD(AT&L), SPOT Program Support,
109. Federal Business Opportunities, Baghdad
Life Support Services (BLISS), Solicitation
Number SAQMMA-12-R-0130, www.fo.
110. Federal Business Opportunities, Solicitation
No. SAQMMA-12-R-0130, Baghdad Life
Support Services (BLISS), 9/4/2012, www.fo.
111. U.S. Embassy-Baghdad, response to SIGIR
data call, 10/1/2012.
data call, 10/1/2012.
113. USACE, response to SIGIR data call,
10/1/2012.
10/1/2012.
115. U.S. Embassy-Baghdad, Te Strategic
Framework Agreement (SFA) and U.S.-Iraqi
Bilateral Relations, iraq.usembassy.gov/
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116. U.S. Embassy-Baghdad, press release, Te
United States of America and the Republic
of Iraq Strategic Framework Agreement:
Joint Statement of the U.S.-Iraq Political and
Diplomatic Joint Coordination Committee,
9/2/2012, iraq.usembassy.gov/pr_090212.
data call, 10/1/2012; ENR, response to SIGIR
data call, 10/15/2012.
118. P.L. 109-234; P.L. 110-5; P.L. 110-28; P.L. 110-
161; P.L. 110-252; P.L. 111-32; P.L. 111-117; P.L.
111-212; P.L. 112-10; P.L. 112-74; INL, response
to SIGIR data call, 10/15/2012.
119. INL, responses to SIGIR data call, 9/27/2012
and 10/1/2012.
120. DoS, Fact Sheet, Bureau of International
Narcotics and law Enforcement Afairs,
12/1/2011, www.state.gov/j/inl/rls/fs/182279.
htm, accessed 9/7/2012.
121. SIGIR Audit 12-020, Iraq Police
Development Program: Lack of Iraq Support
and Security Problems Raise Questions About
the Continued Viability of the Program,
7/30/2012.
and 10/15/2012.
and 10/15/2012.
and 10/15/2012.
and 10/15/2012.
129. INL, Deputy Director, Mission Iraq, meeting
with SIGIR, 9/17/2012.
Although INL reported $48.63 million
expended for facilities in Basrah, SIGIR Audit
12-020, Iraq Police Development Program:
Lack of Iraqi Support and Security Problems
Raise Questions about the Continued
Viability of the Program, found that $98
million had been spent to prepare facilities for
PDP training.
132. INL, responses to SIGIR data calls, 7/16/2012,
10/1/2012, and 10/15/2012.
and 10/15/2012.
137. ICITAP, Iraq Commission of Integrity
Anticorruption Investigation Program:
Quarterly Report on Technical Assistance and
ENDNOTES
Training, 4/1/20126/30/2012.
UNDP, Technical Assistance to the Iraqi
Of ces of the Inspectors General: Second
Quarter2012 Progress Report, 4/2012
6/2012.
139. INL, responses to SIGIR data calls, 1/4/2012,
4/2/1012, 4/16/2012, and 10/1/2012.
and 10/15/2012.
and 10/15/2012.
and 10/15/2012; UNDP, English as a Second
Language (ESL) Project: Second Quarter 2012
Progress Report, 4/20126/2012.
146. NEA-I, response to SIGIR data call, 9/25/2012.
data call, 10/1/2012.
data call, 10/1/2012.
data call, 10/1/2012.
150. PRM, response to SIGIR data call, 10/1/2012.
151. PRM, responses to SIGIR data call, 10/1/2012
and 10/11/2012.
152. PRM, response to SIGIR data call, 10/15/2012,
and Migration and Refugee Assistance,
Emergency Refugee and Migration Assistance:
Fiscal Year 2013 Congressional Presentation
Document, pp. 4, 23, www.state.gov/
documents/organization/186106.pdf, accessed
10/3/2012.
and 10/15/2012.
156. PRM, responses to SIGIR data calls, 6/29/2012,
9/25/2012, and 10/15/2012.
157. An amendment to Section 1059 expanded
the total number of visas to 500 per year for
FY 2007 and FY 2008 only. PRM, responses
9/25/2012, and 10/15/2012; DoS, Special
Immigrant Visas for IraqisWho Worked for/
on Behalf of the U.S. Government, travel.state.
gov/visa/immigrants/info/info_4172.html,
accessed 10/5/2012; DoS, Special Immigrant
Visas (SIVs) for Iraqi and Afghan Translators/
Interpreters, travel.state.gov/visa/immigrants/
info/info_3738.html, accessed 10/5/2012.
and 10/15/2012.
160. GAO Report GAO-12-729, Refugee
Resettlement: Greater Consultation with
Community Stakeholders Could Strengthen
Program, 7/2012, pp. 1719, 24, 3233, 37, 57.
161. DRL, response to SIGIR data call, 9/27/2012.
162. DRL, response to SIGIR data call, 10/9/2012.
163. DRL, response to SIGIR data call, 10/9/2012;
S/GWI, Investing in Women and Girls,
www.state.gov/s/gwi/programs/policy/index.
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164. USAID, Testimony of Mara Rudman,
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10/2/2012.
10/2/2012, Capacity Building Programs,
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ENDNOTES
211. World Bank, senior private-sector
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10/2/2012, and Fact SheetU.S. Agency for
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10/2/2012, and Agriculture, USAID-Inma
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216. USAID, Democracy & Governance
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218. USAID, Democracy & GovernanceIraq
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226. USACE, responses to SIGIR data calls,
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7/2/2012 and 10/1/2012.
228. OSC-I, response to SIGIR data call,
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10/2/2012; OSC-I, response to SIGIR data call,
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231. GAO Report GAO-12-856T, Mission Iraq:
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232. CENTCOM, responses to SIGIR data call,
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244. CENTCOM, Interim Policy Directive #12-04,
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Tat is, ISFF can be used to pay for items that
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253. OUSD(C), responses to SIGIR data calls,
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254. OSC-I response to SIGIR data call, 7/3/2012.
255. OSD, response to SIGIR data call, 10/2/2012.
257. OSC-I, response to SIGIR data call, 7/3/2012;
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268. VSE corporation, press release, VSE
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UNESCO Study Finds, 10/2009, www.
unesco.org/new/en/media-services/
single-view/news/water_shortage_fueling_
displacement_of_people_in_northern_iraq_
unesco_study_fnds/, accessed 10/10/2012.
365. IOM, IOM-Iraq Special Report, Water
Scarcity, 6/4/2012, p. 1, www.iomiraq.
net/Documents/Water%20Scarcity%20
Report%20-%20Updated%20June%202012.pdf,
accessed 9/23/2012.
United States and Iraq Sign Agreement for
Cooperation on Education in Iraq, 9/20/2012,
iraq.usembassy.gov/pr-092012.html, accessed
9/21/2012.
369. GOI, MOI, information provided to SIGIR,
10/2/2012.
370. GOI of cials, meetings with SIGIR, 9/2012;
SIGIR analysis of open-source documents in
371. DoS, Bureau of Consular Afairs, Travel
Warning: Iraq, 8/9/2012, travel.state.gov/
travel/cis_pa_tw/tw/tw_5758.html, accessed
10/8/2012.
372. MOI, information provided to SIGIR,
10/2/2012.
374. Pamela Falk, Al-Qaeda a Cancer in Syria,
Says Iraqs UN Ambassador, CBS News,
8/1/2012, www.cbsnews.com/8301-503543_162-
57485002-503543/al-qaeda-a-cancer-in-syria-
says-iraqs-u.n-ambassador/, accessed 9/9/2012.
375. U.S. Secretary of State Hillary Rodham Clinton,
Remarks with Foreign Minister Davutoglu
afer Teir Meeting, 8/11/2012, www.state.gov/
secretary/rm/2012/08/196358.htm, accessed
10/9/2012.
376. Ali A. Nabhan and Sam Dagher, Syrias
War Animates Zealots in Iraq, Wall Street
Journal, 9/11/2012, online.wsj.com/article/SB
1000087239639044371370457760082231427
3342.html?mod=googlenews_wsj, accessed
9/14/2012.
377. AFP, Syria Rebels Control All Iraq Border
Points, 7/19/2012.
378. BBC News, Syria Rockets from Albu Kamal
Kill Girl in Iraq, 9/8/2012, www.bbc.co.uk/
news/world-middle-east-19532034, accessed
9/9/2012.
10/1/2012; CFC, Complex Coverage:
Iraq, 9/25/2012, www.cimicweb.org/
cmo/ComplexCoverage/Documents/
Weekly%20Newsletter/nCC003%20CFC%20
Complex%20Coverage%20Review%20(25-
Sep-12).pdf, accessed 10/21/2012.
381. UNHCR, Syria Regional Refugee Response
Information Sharing Portal, Iraq:
Demographic Breakdown, 10/5/2012,
data.unhcr.org/syrianrefugees/country.
php?id=103, accessed 10/9/2012.
382. UNAMI of cials, meeting with SIGIR,
9/21/2012.
383. Lessential des Relations Internationals,
Interview with President Masoud Barzani,
9/27/2012, www.krg.org/articles/detail.as
p?lngnr=12&smap=02010200&rnr=73&a
nr=45389, accessed 10/1/2012. KRG President
Masoud Barzani recently noted, Many of
them (refugees) are young men. It is true
that some of them have received training.
Tey have not been trained for attack, but for
defense. Te regions where they live have no
ENDNOTES
system of defense, and they need to be able to
preserve them from chaos.
384. GOI, Iraqi Constitution , Article 121 (5),
1/30/2006.
385. GOI, Iraqi Constitution , Article 110 (2),
1/30/2006.
386. Fryad Mohammed, Kurdistans Peshmarga,
Iraqi Defense Ministries Sign Agreement,
Aknews, 8/6/2012, www.ekurd.net/mismas/
articles/misc2012/8/state6404.htm, accessed
10/9/2012.
9/23/2012.
388. C-SPAN video (archived), U.S. Ambassador
to Iraq Confrmation, 9/19/2012, www.c-
spanarchives.org/program/USAmbassa,
accessed 10/6/2012.
389. Louis Charbonneau, Exclusive: Western
ReportIran Ships Arms, Personnel to Syria
via Iraq, Reuters, 9/20/2012, www.reuters.
com/article/2012/09/20/us-syria-crisis-iran-
iraq-idUSBRE88I17B20120920, accessed
10/11/2012.
394. OSC-I Chief, meeting with SIGIR, 9/21/2012;
GOI, Principal Deputy Minister of Interior,
396. AP, Al-Qaeda Suspects Escape Iraq Prison
in Deadly Break, 9/28/2012, www.cbsnews.
com/8301-202_162-57522128/al-qaeda-
suspects-among-dozens-of-escapees-in-deadly-
iraq-prison-break/?tag=contentMain;contentB
ody, accessed 10/17/2012.
397. CBS Interactive, Al-Qaeda in Iraq Claims
It Smuggled Weapons into Tikrit Prison for
Brazen Jailbreak, 10/12/2012, www.cbsnews.
com/8301-202_162-57531132/al-qaeda-in-iraq-
claims-it-smuggled-weapons-into-tikrit-prison-
for-brazen-jailbreak/, accessed 10/17/2012.
398. AP, Al-Qaeda Suspects Escape Iraq Prison
in Deadly Break, 9/28/2012, www.cbsnews.
com/8301-202_162-57522128/al-qaeda-
suspects-among-dozens-of-escapees-in-deadly-
iraq-prison-break/?tag=contentMain;contentB
ody, accessed 10/17/2012.
399. Jawad al-Bolani, former Minister of Interior,
meeting with SIGIR, 9/20/2012; GOI, BSA
President, meeting with SIGIR, 9/18/2012;
GOI, Minister of Finance, meeting with
SIGIR, 9/17/2012; Baqir Jabr al-Zubeidi, CoR
Representative and former GOI Minister
of Finance, Interior, and Housing and
Reconstruction, meeting with SIGIR, 9/20/2012;
CoR Representative Ahmed al-Chalabi,
9/18/2012.
401. GOI, Minister of Finance, meeting with
SIGIR, 9/17/2012, Baqir Jabr al-Zubeidi, CoR
Representative and former GOI Minister
of Finance, Interior, and Housing and
Reconstruction, meeting with SIGIR, 9/20/2012;
CoR Representative Ahmed Chalabi, meeting
with SIGIR, 9/ 22/2012; Jawad al-Bolani,
former Minister of Interior, meeting with
SIGIR, 9/20/2012.
402. GOI, MIM IG, meeting with SIGIR, 8/2/2012.
403. GOI, MIM IG, meeting with SIGIR, 9/16/2012;
GOI, Minster of Finance, meeting with SIGIR,
9/17/2012.
9/22/2012.
9/22/2012.
408. OSC -I Chief, meeting with SIGIR, 9/21/2012.
410. Chief Justice Medhat al-Mahmoud, meeting
SIGIR, 9/20/2012.
412. SIGIR analysis of 10/15/2012 MOJ
announcement of executions.
413. Amnesty International, Death Sentences and
Executions 2011, www.amnestyusa.org/sites/
default/fles/ai_global_dp_2011_stats_report-_
act500012012en.pdf, accessed 3/30/2012.
414. GOI, MOJ, press release, 10/8/2012, www.moj.
gov/iq/view.99, accessed 10/10/2012.
415. UN, UN Human Rights Expert Appalled at
Level of Executions in Iraq, 8/30/2012, www.
un.org/apps/news/story.asp?NewsID=42777&C
r=execution&Cr1, accessed 10/18/2012.
416. HJC, Clarifcation Regarding Mr. Snan
al-Shabibis Case, 10/18/2012, www.iraqja.iq/
view.1654/, accessed 10/18/2012.
417. SIGIR analysis of 10/15/2012 MOJ
announcement of executions.
SIGIR, 9/20/2012.
SIGIR, 9/20/2012.
420. GOI, COI, Anti Bribery COI Teams
Performed a Field Visits to the State Of ces,
www.nazaha.iq/en_body.asp?feld=news_
en&id=428&page_namper=e3, 8/28/2012,
accessed 9/8/2012.
421. GOI, COI, Code of Conduct COI: Two
Tirds of the Government employees Did
Not Sign the Code of Conduct, 8/27/2012,
www.nazaha.iq/en_body.asp?feld=news_
en&id=427&page_namper=e3, accessed
9/8/2012.
422. GOI, COI, Taking Hold of Half a Billion ID
COI: Sentence of Administrative Director
General in NSC, 7/23/2012, www.nazaha.iq/
en_body.asp?feld=news_en&id=415&page_
namper=e3, accessed 9/12/2012.
423. GOI, COI, COI Captures Embezzlement,
9/19/2012, www.nazaha.iq/en_body.
asp?feld=news_en&id=432&page_namper=e3,
accessed 10/6/2012.
424. IEA, Oil Market Report, 8/10/2012, p. 15,
omrpublic.iea.org/omrarchive/10aug12full.
pdf, accessed 10/1/2012; Platts Commodity
News, Iraq Produced Record 3.051 Million
b/d of Crudein July: Ministry, 8/29/2012;
GOI, Ministry of Oil, Production, Export &
Consumption of CrudeOil and Associated
Gas, 8/2012, www.oil.gov.iq/moo/domestic.
php?lang=en&page_name=domestic, accessed
9/28/2012; IMF, Regional Economic Outlook:
Update, MiddleEast and North Africa:
Historic Transitions under Strain, 4/20/2012
, p. 11, and Iraq and theIMF, www.imf.org/
external/country/IRQ/index.htm, accessed
10/16/2012.
425. International bank, Iraq representative,
PFC Energy, Head of Markets and Country
Strategies, information provided to SIGIR,
8/23/2012; MEES, Weekly Report, Vol. 55 No.
39, 9/21/2012, p. 20.
1/10/2012 and 10/16/2012.
427. GOI, CBI, home page, Economic Data, www.
cbi.iq, accessed 10/2/2012; EIU, Country Report:
Iraq, 8/2012, p. 6; IMF, Regional Economic
Outlook: Update, Middle East and North
Africa: Historic Transitions under Strain,
4/20/2012, p. 11.
428. GOI, CBI, home page, Economic Data,
www.cbi.iq, accessed 10/2/2012, and Deputy
Governor, meeting with SIGIR, 6/3/2012.
cbi.iq, accessed 10/2/2012.
430. Standard & Poors Indices Client Services,
information provided to SIGIR, 1/3/2012,
4/3/2012, 7/2/2012, and 10/1/2012; Iraq Stock
Exchange, Indices, www.isx-iq.net/isxportal/
portal/sectorProfleContainer.html?sectorId=1,
accessed 10/2/2012; Rabee Securities, Weekly
Bulletin, 9/28/2012, p. 1.
431. UN Compensation Commission, Status
of Processing and Payment Claims,
7/26/2012, www.uncc.ch/status.htm, accessed
8/28/2012, and press release, United Nations
Compensation Commission Pays Out US$1.3
Billion, 7/26/2012, www.uncc.ch/pressrel/
Press%20release%20-%20Payment%20of%20
26%20July%202012.pdf, accessed 8/28/2012.
cbi.iq, accessed 9/11/2012.
Month Extension of Stand-By Arrangement for
Iraq, 8/3/2012, www.imf.org/external/np/sec/
pr/2012/pr12286.htm, accessed 8/22/2012, and
IMF senior economist, information provided
to SIGIR, 10/9/2012.
434. IMF, IraqProgram Note, 10/5/2011, www.
imf.org/external/np/country/notes/pdf/iraq.
sec/pr/2012/pr12286.htm, accessed 8/22/2012.
436. Platts Commodity News, Iraqi Exports Up
49,000 b/d at 2.565 Million b/d in August:
SOMO, 9/2/2012, and Iraq Produced
Record 3.051 Million b/d of Crude in
July: Ministry, 8/30/2012; Iraq Oil Report,
Special Committee To Jump-start Oil Law,
8/31/2012.
438. GOI, Ministry of Oil, Production, Export &
Consumption of Crude Oil and Associated
Gas, 8/2012, www.oil.gov.iq/moo/domestic.
php?lang=en&page_name=domestic,
accessed 9/28/2012; Platts Commodity
News, Iraq Will Not Reduce Output Even if
OPEC Decides To Cut Quotas: Shahristani,
6/30/2012.
439. Platts Commodity News, Iraq Produced
Record 3.051 Million b/d of Crude in July:
ENDNOTES
Ministry, 8/29/2012, and Iraq Halfaya Field
Producing 86,000 b/d, Rising to 100,000 b/d by
Year End, 7/18/2012; MEES, Weekly Report,
Vol. 56 No. 37, 9/7/2012, p. 17; SIGIR analysis of
open sources, 9/19/2012.
6/25/2012, p. 1; IEA, Iraq Energy Outlook,
10/9/2012, p. 11; PFC Energy, Head of Markets
and Country Strategies, meeting with SIGIR,
8/23/2012; Middle East Institute forum,
Oil and Politics in Iraq, Washington, DC,
8/17/2012.
441. PFC Energy, Head of Markets and Country
Strategies, meeting with SIGIR, 8/23/2012;
Middle East Institute forum, Oil and Politics
in Iraq, Washington, DC, 8/17/2012; MEES,
Weekly Report, Vol. 55 No. 26, 6/26/2012, p. 1;
MEED, Firms Short-listed for Seawater Plant
Deal: Treatment Facility and Pipeline Critical
to Countrys Future Oil Development (IRAQ),
7/20/2012, business.highbeam.com/409213/
article-1G1-299345426/frms-shortlisted-
seawater-plant-deal-treatment-facility, accessed
10/8/2012; SIGIR analysis of open sources,
10/11/2012; International oil company, Iraq
representative, information provided to SIGIR,
2/7/2012.
8/20/2012, p. 18; PFC Energy, Head of Markets
and Country Strategies, meeting with SIGIR,
8/23/2012.
443. Platts Commodity News, Kurdish KAR Group
To Boost Khurmala Dome Capacity by 40,000
b/d, 8/16/2012.
Tracker, Kurdish Oil Stoppage Looms
Where To Next? 9/3/2012; Iraq Oil Report,
Lukoil, Pakistan Winners in Underwhelming
Four Bid Round, 6/1/2012.
445. GOI, Ministry of Oil, Iraq Oil Exports for
September Elevates to 2.6 Million Barrels per
Day, 10/13/2012, www.oil.gov.iq/moo/feeds.
php?lang=en&page_name=news&id=491,
accessed 10/13/2012, and Crude Oil Exports,
www.oil.gov.iq/moo/page.php?lang=en&page_
name=export, accessed 10/2/2012, and
Domestic Consumption, www.oil.gov.
iq/moo/domestic.php?lang=en&page_
name=domestic&id=38, accessed 7/5/2012;
Platts Commodity News, Iraqi Oil Exports at
2.598 Million b/d Set New Post-1990 Record:
SOMO, 10/2/2012; GOI, CoR, Federal Public
Budget Law for the Fiscal Year/2012, 2/23/2012,
Article 1.
446. Platts Commodity News, Iraqi Oil Exports at
2.598 Million b/d Set New Post-1990 Record:
SOMO, 10/2/2012, and Iraq Produced Record
3.051 Million b/d of Crude in July: Ministry,
8/29/2012; Dunia Frontier Consultants, Iraq
Market Tracker, Iraq To Pay Kurdish Oil
Companies, Hawrami Says, 10/1/2012, p. 3.
447. PFC Energy, Head of Markets and Country
Strategies, meeting with SIGIR, 8/23/2012.
448. GOI, KRG, press release, Resumption of Oil
Exports by KRG, 8/1/2012; Iraq Oil Report,
Iraqi Cabinet Approves Kurdish Export
Agreement, 9/19/2012; Dunia Frontier
Consultants, Iraq Market Tracker, Kurdish
Pipeline Plan, 9/18/2012.
10/5/2012, p. 4; Platts Commodity News, Iraqi
Kurdistan Supplying 170,000 b/d Crude for
Export: Luaibi, 10/4/2012.
450. GOI, KRG, Ministry of Natural Resources,
senior advisor, information provided to SIGIR
10/2/2012.
451. MEES, Weekly Report, Vol. 55 No. 32, 8/6/2012,
pp. 12, and Weekly Report, Vol. 55 No. 38, p. 6;
Iraq Oil Report, Pipeline Attack Again Ahead
of Kurdish Crude Restart, 8/7/2012.
452. Platts Commodity News, Iraq Says Oil
Exports through Saudi Arabia among Strategic
Options, 8/13/2012.
453. MEES, Weekly Report, Vol. 55 No. 32, 8/6/2012;
Platts Commodity News, Iraqi Kurdistan
Planning 1 Million b/d Pipeline to Turkey,
10/4/2012.
9/21/2012, p. 10.
455. GOI, Ministry of Oil, News, Announcement
from the Petroleum Contracts &
Licensing Directorate, undated, www.
oil.gov.iq/moo/feeds.php?page_
name=news&lang=en&id=466, accessed,
10/8/2012.
9/21/2012, p. 10; Platts Commodity News, Iraq
Invites Bids for 4 Billion Barrel Nassiriya Oil
Field, Refnery, 10/22/2012.
458. GOI, Ministry of Oil, Production, Exports
and Consumption of Crude Oil and Associated
Gas, www.oil.gov.iq/moo/domestic.
php?lang=en&page_name=domestic, accessed
9/28/2012.
459. Platts Commodity News, Iraq Has 3 TCM of
Non-Associated Gas Reserves: Shahristani,
6/29/2012.
461. GOI, Ministry of Housing and Municipalities,
remarks by deputy minister at DoS, U.S.-Iraq
Housing and Construction Videoconference,
9/13/2012.
462. GOI, NIC, remarks by chairman at DoS,
U.S.-Iraq Housing and Construction
Videoconference, 9/13/2012.
Tracker, Iraq Mobile Phone Operators Appeal
Fines, 9/10/2012, p. 4, Asiacell to Trade
on ISX, 9/17/2012, p. 7; U.S. Chamber of
Commerce/Dunia Frontier Consultants, Iraqi
Commercial Activity & Business Development
Opportunities, 9/2012, p. 19, and 7/2012, p. 16;
U.S. Chamber of Commerce/Dunia Frontier
Consultants, Iraq Investment and Security
Report, 9/10/2012, p. 2, and 10/8/2012, p. 2;
Tracker, Zain Close to Roaming Deal with
Vodaphone, 8/27/2012, p. 7, and Dunias
Take: Market Opportunity, 6/22/2012, p. 2.
Consultants, Iraq Investment and Security
Report, 9/2/2012, p. 1.
466. U.S. Embassy-Baghdad, press release, New
Communications Network Ensures Ef cient
and Safe Railway System for Iraqis, 7/18/2012,
iraq.usembassy.gov/saferailway.html, accessed
10/1/2012.
467. GOI, CoM, press release, Approval on
Settlement Agreement Signed between the
Iraq Transport Minister and the Minister of
Communications of Kuwait, 7/24/2012, www.
goi-s.com/view.1310/, accessed 8/16/2012.
468. GOI, NMC, press release, Gulf Air Resumes
Flights to Iraq, 8/28/2012, www.nmc.gov.
iq/ArticleShow.aspx?ID=4898, accessed
8/28/2012; Emirates Airline, press release,
Book Your Flight to Erbil with Emirates,
www.emirates.com/english/destinations_
ofers/destinations/middleeast/iraq/erbil/index.
aspx, accessed 9/14/2012; U.S. Chamber of
Commerce/Dunia Frontier Consultants, Iraqi
Commercial Activity & Business Development
Opportunities, 7/2012, p. 19.
469. GOI, KRG, press release, PrimeMinister
Hosts Groundbreaking for Duhok International
Airport, 9/24/2012, www.krg.org/articles/
detail.asp?rnr=223&lngnr=12&smap=0201010
0&anr=45353, accessed 9/25/2012.
470. GOI, NIC Chairmans remarks at DoS
videoconference, U.S.-Iraq Housing and
Construction Videoconference, 9/13/2012;
USBCI, President, information provided to
SIGIR, 10/2/2012; SIGIR analysis of open
sources, 10/7/2012.
471. International bank, Iraq representative,
Construction Videoconference, 9/13/2012.
9/21/2012, p. 20; U.S. banking sector specialist
on Iraq, information provided to SIGIR,
9/27/2012; SIGIR analysis of open-source
information, 9/21/2012.
474. U.S. Treasury, press release, Treasury
Sanctions Kunlun Bank in China and Elaf
Bank in Iraq for Business with Designated
Iranian Banks, 7/31/2012, www.treasury.gov/
press-center/press-releases/Pages/tg1661.aspx,
accessed 8/3/2012.
Construction Videoconference, 9/13/2012.
476. U.S. Embassy-Baghdad, press release, United
States and Iraq Sign Cooperative Agreement on
Regulatory Reform, 7/18/2012.
477. U.S. Chamber of Commerce, U.S.-Iraq
Business Initiative, letter of notifcation,
U.S.-Iraq Business Initiative Mission
to the Kurdistan Region October 1518,
2012,8/6/2012; U.S. Kurdistan Business
Council, press release, 10/15/2012, U.S.-
Kurdistan Business Council Meets with
Kurdistan Regional Government Ministers
in Erbil, 10/15/2012; USBCI, information
provided to SIGIR, 7/18/2012.
478. DoS, Bureau of Consular Afairs, Travel
Warning, travel.state.gov/travel/cis_pa_tw/tw/
tw_5758.html, accessed 8/27/2012.
479. GOI, NMC, press release, National
Investment Commission Announces Five
Investment Opportunities, 7/24/2012, www.
nmc.gov.iq/ArticleShow.aspx?ID=4795,
accessed 7/31/2012.
Consultants, Iraq Commercial Activity &
Business Development Opportunities, 7/2012,
p. 17; Dunia Frontier Consultants, Iraq Market
Tracker, Iraq Awards Two Housing Deals
Worth $365 Million, 9/17/2012, p. 8.
481. World Bank, senior private-sector development
specialist, information provided to SIGIR,
9/17/2012.
ACRONYMS AND DEFINITIONS
ACRONYMS AND
DEFINITIONS
Tis section contains all of the abbrevia-
tions and acronyms found in this Report.
Acronym Denition
ABO U.S. Army Budget Ofce
ABOT al-Basrah Oil Terminal
Ajyal "Generations" in Arabic
Education Strengthening Project
(USAID)
BBG Broadcasting Board of
Governors
BCH Basrah Children's Hospital
BCM billion cubic meters
BIAP Baghdad International Airport
BLISS Baghdad Life Support Services
BPAX Baghdad Police Academy Annex
BPD barrels per day
BSA Board of Supreme Audit
CAP Community Action Program
(ESF)
CBI Central Bank of Iraq
CBP U.S. Customs and Border
Protection
CERP Commander's Emergency
Response Program
CFC Civil-Military Fusion Centre
(NATO)
CID-MPFU U.S. Army Criminal Investigation
Command-Major Procurement
Fraud Unit
CIO Contributions to International
Organizations (United States)
CMCP Coalition Munitions Clearance
Program
CMEC China Machinery Engineering
Corporation
COI Commission of Integrity
(previously known as
Commission on Public Integrity)
CoM Council of Ministers
COM Chief of Mission
Commerce U.S. Department of Commerce
CoR Council of Representatives (GOI)
CPA Coalition Provisional Authority
CSH Child Survival and Health
Programs Fund
CSSP Common Seawater Supply
Project
CWD Conventional Weapons
Destruction
DCAA U.S. Defense Contract Audit
Agency
Continued next column
Acronym Denition
DCIS Defense Criminal Investigative
Service
DF Democracy Fund
DFI Development Fund for Iraq
DHS Department of Homeland
Security
DoD Department of Defense
DoD OIG Department of Defense Ofce
of Inspector General
DoJ Department of Justice
DoS Department of State
DoS OIG Department of State Ofce of
Inspector General
DoT Department of Transportation
DPA Deferred Prosecution
Agreement
DPM Deputy Prime Minister
DRL Bureau of Democracy, Human
Rights and Labor (DoS)
DSC Diplomatic Support Center
DSCA Defense Security Cooperation
Agency
ECA Bureau of Educational and
Cultural Affairs (DoS)
ERMA Emergency Refugee and
Migration Assistance
ESF Economic Support Fund
EU European Union
EUJUST LEX European Union Integrated Rule
of Law Mission for Iraq
EXBS Export Controls and Related
Border Security
Ex-Im Export-Import Bank
FAS Foreign Agriculture Service
(USDA)
FBAR Report of Foreign Bank and
Financial Accounts (U.S.
Department of the Treasury)
FBI Federal Bureau of Investigation
FMF Foreign Military Financing
FMS Foreign Military Sales
FOB forward operating base
FOO eld ordering ofcer
FY scal year
GAO Government Accountability
Ofce
GAPTIS Governorate Accounting and
Project Information Tracking
System
GDP gross domestic product
GE General Electric
GEC Governorate Emergency Cells
GOI Government of Iraq
HJC Higher Judicial Council
HRDF Human Rights and Democracy
Fund
Acronym Denition
HSAD "Harvest" in Arabic
Harmonized Support for
Agriculture Development
(USAID)
IA Iraqi Army
IAA interagency agreement
IAU Inter-Agency Information and
Analysis Unit (UN)
ICARDA International Center for
Agricultural Research in the Dry
Areas
ICITAP International Criminal
Investigative Training Assistance
Program (DoJ)
ICS Iraqi Corrections Service
IDA International Disaster Assistance
IDFA International Disaster and
Famine Assistance
IDP internally displaced person
IEA International Energy Agency
IFES International Foundation for
Electoral Systems
IFF Iraq Freedom Fund
IG inspector general
IHEC Independent High Electoral
Commission
IIGC Iraq Inspectors General Council
IMCEN Information Management
Center (U.S. Army)
IMET International Military Education
and Training
IMF International Monetary Fund
INCLE International Narcotics Control
and Law Enforcement account
(INL)
INL Bureau of International
Narcotics and Law Enforcement
Affairs (DoS)
INL/ACCO INL's Anti-Corruption
Coordination Ofce
Inma "Growth" in Arabic
Agribusiness Program (USAID)
IOM International Organization for
Migration
IP Iraqi Police
IPO initial public offering
IRFFI International Reconstruction
Fund Facility for Iraq
IRRF Iraq Relief and Reconstruction
Fund
IRS Internal Revenue Service
IRS-CI Internal Revenue Service-
Criminal Investigation
ISF Iraqi Security Forces
ISFF Iraq Security Forces Fund
ACRONYMS AND DEFINITIONS
Acronym Denition
ISN/ECC Bureau of International Security
and Nonproliferation Ofce of
Export Controls Cooperation
(DoS)
ISPO Iraq Strategic Partnership Ofce
(replaces ITAO)
ISRAR "Determination" in Arabic
Iraqi Solutions for Regulatory
and Administrative Reform
(USAID)
ISX Iraq Stock Exchange
IT information technology
IZ International Zone
JCC Joint Coordinating Committee
(GOI)
KDP Kurdistan Democratic Party
KNOC Korea National Oil Corporation
KRG Kurdistan Regional Government
LOA letter of offer and acceptance
LOGCAP Logistics Civil Augmentation
Program (DoD)
LOR Letter of Request
M&E Monitoring and Evaluation
Maharat "Skills" in ArabicEducation
Surveys (USAID)
MBPD million barrels per day
MCFD million cubic feet per day
MED Middle East District (USACE)
MEES Middle East Economic Survey
MEK Mujaheddin-e Khalq
MoA Ministry of Agriculture
MOD Ministry of Defense
MoDM Ministry of Displacement and
Migration
MOE Ministry of Electricity
MOI Ministry of Interior
MOU memorandum of understanding
MRA Migration and Refugee
Assistance
MW megawatt
NADR Nonproliferation, Anti-
terrorism, Demining, and
Related Programs
NATO North Atlantic Treaty
Organization
NEA-I Bureau of Near Eastern Affairs-
Iraq (DoS)
NGO nongovernmental organization
NIC National Investment
Commission (GOI)
NMC National Media Center (GOI)
NRRRF Natural Resources Risk
Remediation Fund
O&M operations and maintenance
OFDA Ofce of Foreign Disaster
Assistance (USAID)
Acronym Denition
OHDACA Overseas Humanitarian, Disaster
and Civic Aid
OIG Ofce of Inspector General
OMA Operations and Maintenance,
Army (funds)
OMB Ofce of Management and
Budget
OPDAT Ofce of Overseas Prosecutorial
Development and Assistance
Training (DoS)
OPEC Organization of the Petroleum
Exporting Countries
OPIC Overseas Private Investment
Corporation
OSC-I Ofce of Security Cooperation-
Iraq
OTA Ofce of Technical Assistance
(U.S. Treasury)
OUSD(AT&L) Ofce of the Under Secretary
of Defense (Acquisition,
Technology and Logistics)
OUSD(C) Ofce of the Under Secretary of
Defense (Comptroller)
P.L. Public Law
PCO Project and Contracting Ofce
PDP Police Development Program
(DoS INL)
PERFORM Performance Evaluation
and Reporting for Results
Management (USAID)
PFB Procurement Fraud Branch
(Army Legal Services Agency)
PHC primary healthcare center
PKK Kurdistan Workers' Party
PRDC Provincial Reconstruction
Development Council
PRM Bureau of Population, Refugees
and Migration
PRT provincial reconstruction team
PTD Pretrial Diversion
PUK Patriotic Union of Kurdistan
QRF Quick Response Fund
RIE Restore Iraqi Electricity
RIO Restore Iraqi Oil
RoL Rule of Law
RSO Regional Security Ofce
S&P Standard & Poor's
S/GWI Secretary's Ofce of Global
Women's Issues (DoS)
SBA Stand-By Arrangement
SFA Strategic Framework Agreement
SIGAR Special Inspector General for
SIGIR Special Inspector General for
Iraq Reconstruction
SIGPRO SIGIR Prosecutorial Initiative
SIM Subscriber Identity Module
Acronym Denition
SIV Special Immigrant Visa
SOE state-owned enterprise
SOI Sons of Iraq
SOW statement of work
SPM single-point mooring
SPOT Synchronized Predeployment
and Operational Tracker
SRO stabilization and reconstruction
operation
Tarabot "Linkages" in Arabic
Administrative Reform Project
(USAID)
TFBSO Task Force for Business and
Stability Operations (DoD)
Tijara "Trade" in ArabicProvincial
Economic Growth Program
(USAID)
Treasury U.S. Department of the Treasury
Tumooh "Ambition" in ArabicEnglish
as a Second Language Project
(UNDP)
UN United Nations
UNCAC United Nations Convention
Against Corruption
UNDP United Nations Development
Programme
UNESCO United Nations Educational,
Scientic and Cultural
Organization
UNHCR United Nations High
Commissioner for Refugees
UNICEF United Nations Children's Fund
UNIDO United Nations Industrial
Organization
UNODC United Nations Ofce on Drugs
and Crime
USAAA U.S. Army Audit Agency
USACE U.S. Army Corps of Engineers
USAID U.S. Agency for International
Development
USAID OE U.S. Agency for International
Development Operating
Expenses
USAID OIG U.S. Agency for International
Development Ofce of
Inspector General
USBCI U.S. Business Council in Iraq
USDA U.S. Department of Agriculture
USG U.S. government
USIP United States Institute of Peace
USMC U.S. Marine Corps
USRAP U.S. Refugee Admissions
Program
WFF War Fighter Focus
For inquiries, please contact SIGIR Public Affairs:
Email: PublicAffairs@sigir.mil
Phone: 703.428.1100
Mail: Ofce of the Special Inspector General
for Iraq Reconstruction
2530 Crystal Drive
Arlington, VA 22202-3940
Help prevent fraud, waste, and abuse
by reporting suspicious or illegal
activities. Contact the SIGIR Hotline:
WEB: www.sigir.mil/submit_fraud.html
PHONE: 703.602.4063
TOLL FREE: 866.301.2003
Graft in Military Contracts Spread From Base - New York Times
http://www.nytimes.com/2007/09/24/world/middleeast/24contractor.html?pagewanted=all&_r=0[10/29/2012 4:50:59 PM]
World All NYT Mi ddl e East
WORLD U.S. N.Y. / REGION BUSINESS TECHNOLOGY SCIENCE HEALTH SPORTS OPINION ARTS STYLE TRAVEL J OBS REAL ESTATE AUTOS
AFRICA AMERICAS ASIA PACIFIC EUROPE MI DDLE EAST
John Davenport/The San Antonio Express-
News, via Associated Press
Maj. John Lee Cockerham went from
rustic Louisiana to Kuwait to a prison in
Texas.
Reach of War
Go to Complete Coverage
Mul t i medi a
A Tally of Accusations
Enlarge This Image
Graft in Military Contracts Spread From Base
By GINGER THOMPSON and ERIC SCHMITT
Published: September 24, 2007
CASTOR, La. On the fourth Sunday in July, John Lee Cockerham
was here in his hometown for the baptism of his twin sons.
People in this northwest corner of
Louisiana think of him as an unlikely
success story, a man who started with
nothing to become a major in the
Army. He and his 17 siblings grew up
without electricity and running water.
His parents earned barely enough to
keep everyone fed.
Yet even after he made it out of Castor, his ties to these
backwoods remained strong. The congregation at New
Friendship Baptist Church celebrated his last promotion
with a parade. At his sons baptism, he told fellow
worshipers that he hoped to instill in his children the
values he had wrested from hardship.
Less than 24 hours later Major Cockerham was behind
bars, accused of orchestrating the largest single bribery
scheme against the military since the start of the Iraq war.
According to the authorities, the 41-year-old ofcer, with
his wife and a sister, used an elaborate network of offshore
bank accounts and safe deposit boxes to hide nearly $10
million in bribes from companies seeking military
contracts.
The accusations against Major Cockerham are tied to a
crisis of corruption inside the behemoth bureaucracy that
sustains Americas troops. Pentagon ofcials are
investigating some $6 billion in military contracts, most
covering supplies as varied as bottled water, tents and
latrines for troops in Kuwait, Iraq and Afghanistan.
The inquiries have resulted in charges against at least 29
civilians and soldiers, more than 75 other criminal
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Shawn Baldwin for The New York Times
Camp Arifjan in Kuwait in September
2004.
Enlarge This Image
Mario Villafuerte for The New York Times
Verba Egans of Castor, La., and her
husband, Roy, friends of Maj. John
Lee Cockerham, who has been
accused in a bribery scheme in Iraq.
John Davenport/The San Antonio Express-
News, via Associated Press
Major Cockerhams wife, Melissa.
Court records allege that unidentied
businesspeople carried bags of cash to
Mrs. Cockerham, while she served as
a courier in the Middle East with her
three children in tow and her husband
kept coded records.
investigations and the suicides of at least two ofcers. They
have prompted the Pentagon, the largest purchasing agency
in the world, to overhaul its war-zone procurement system.
Much of the scrutiny has focused on the contracting ofce
where Major Cockerham worked at Camp Arifjan in
Kuwait, a world away from Castor in more than miles. Until
the buildup to the war in Iraq, it was a tiny outpost with a
staff of 7 to 12 people who awarded about $150 million a
year in contracts, according to Bryon J. Young, a retired
Army colonel and the current director of the Army
Contracting Agency.
But when tens of thousands of soldiers began pouring
through Kuwait, Mr. Young said in an interview, his agency
was forced to entrust nearly $4 billion over the next four
years to what he described as a B team of civilians and
military ofcers with limited contracting experience. It was
a setting ush with money, he said, but lacking the
safeguards to prevent contracting ofcials from taking it.
Pages of the afdavits in United States District Court in San
Antonio involving Major Cockerham read like scenes from
a spy novel. They allege that unidentied businesspeople
carried hundreds of thousands of dollars in shopping bags,
delivering the money to Mrs. Cockerham as she played
courier in the Middle East with her three small children,
while her husband kept coded records of a mounting
fortune.
A criminal complaint led with the court says that during a
December 2006 search of their home at Fort Sam Houston,
Tex., Major Cockerham and his wife admitted taking $1
million in bribes. The investigation continued, and when
the couple were arrested some seven months later on
charges of accepting $9.6 million in bribes, they pleaded
not guilty.
Major Cockerhams lawyer, Jimmy Parks, in denying the
charges, said his client did not have the authority to pull off
such a conspiracy.
An Ofcers Suicide
Although a Justice Department ofcial said it was too early to know if the suspects in the
corruption investigation operated independently or in a network, public records indicate
that several served overlapping tours. At least two ofcers who worked at Camp Arifjan
when Major Cockerham was there committed suicide after learning they would face
bribery charges. One, Maj. Gloria D. Davis of Missouri, shot herself in December 2006, a
day after admitting she took at least $225,000 in bribes, government ofcials said.
It is particularly disturbing that while so many of our military personnel are ghting and
dying in Iraq, a few have apparently taken the opportunity to unlawfully enrich
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themselves, Charles W. Beardall, chief criminal investigator for the Pentagon inspector
general, said in a statement. Their greed is unconscionable, especially in the midst of our
soldiers heroic actions.
The charges against Major Cockerham have hit hard in this town of 200 people, where
residents have vivid recollections of him as little John Lee, a quiet, polite boy who was so
worn out from milking cows before school that he had a hard time staying awake in class.
Hes a country boy, just like the rest of us, said Mark Plunkett, who played high school
basketball with John Lee. You throw a suitcase with a million dollars in front of us, who
knows what we would do?
Chris Guin, who considers himself one of Major Cockerhams best friends, shook his head.
That dont sound like John Lee, he said. I think hes being railroaded.
While others from Castor have achieved more than Major Cockerham, few started with his
disadvantages. From outside the familys run-down four-room house, it is hard to see
where he got the nerve to dream. Growing up, the boys slept in one room, the girls in
another, said his brother Charles. They lived on grits in the morning and corn bread at
night. For water, he said, the children hauled buckets from a nearby stream.
Charles Cockerham said his father, John Lee Sr., who worked at the local sawmill, did not
nish high school, but encouraged his children to do so. His mother, Clara, who worked as
a teacher until her brood got too big, was even more emphatic about education.
He used to come to my house after school and stick his head in my encyclopedias, said
Verba Egans, who is so close to Major Cockerham that he calls her Mom. She added, It
was never easy for him, but he worked hard because he was determined to make
something of himself.
The Army as a Way Out
Like many poor young people from rural towns across America, John Cockerham saw the
Army as the best way to advancement. He joined right out of high school in 1984 and
married a fellow soldier, Melissa Jordan, while stationed at Fort Knox, Ky. Later, he went
to Northeastern Louisiana University on an R.O.T.C. scholarship, graduating in 1993 with
an Army commission.
Over the next decade, according to family and military records, he served in Haiti and
Germany, and earned a masters in business from Webster University in 2004. In June of
that year, he was assigned to Camp Arifjan, one of the Pentagons busiest supply centers.
The camp, a $200 million logistics hub, stands like an island in the middle of the desert
south of Kuwait City. Major Cockerham worked in a prefabricated two-story building with
about 20 other military people and civilians, committing millions of dollars on the phone
or with a few strokes on his computer in his cubicle.
Military ofcials said a major assigned to award such large contracts for the Army
Contracting Agency should have at least 10 years of experience in broad acquisition, a
minimum of four years of direct contracting experience and annual ethics training. But the
procurement workload from the Iraq war grew so big so fast that the Pentagon was forced
to rush people with virtually no training or experience into some of its most complicated
contracting jobs, Army ofcials said.
From what I understand, John didnt get the courses he should have had for his
assignment until his assignment was over, said Mr. Parks, Major Cockerhams lawyer.
Oversight was virtually nonexistent by design. There were no auditors at Camp Arifjan,
and contracts worth more than $500,000 were the only ones requiring review in
Washington. Most contracts were written for about $100,000. It was also common for
contracting ofcers to use blanket purchase agreements, allowing them to open a line of
credit with a company with little more than a promissory note, much like a customer at a
small-town grocery store.
Ideally, Army ofcials said, the purchasing cycle would be divided among at least three
contracting ofcers. One would take an order for supplies from a unit commander and
seek bids from companies to ll the order. Another would award the contract, and a third
would oversee delivery of the goods. That system, ofcials said, would allow each
contracting ofcer to serve as a check on the others.
At Camp Arifjan, a single contracting ofcer handled all three parts of the process, giving
the ofcers broad discretion and creating opportunities for unit commanders to join
conspiracies by inating their troops needs. What resulted, said Mr. Young, the Army
Contracting Agency director, was a web of deceit.
A Family Stands Accused
Court records do not make clear how far authorities believe the web spun beyond Major
Cockerham. The Gulf Group, a Kuwait-based business, has sued the Army, claiming that
its contracts were canceled for no reason. Major Cockerham and Major Davis were listed
on the contract and cancellation documents. My hunch is that my clients contracts were
canceled because we would not play ball, said Iliaura Hands, a lawyer for the Gulf Groups,
and another company, with a lot more money, did.
The accusations against Major Cockerham depict a corrupt family enterprise. The criminal
complaint led in Texas says he arranged for representatives of companies awarded
contracts to deliver payments to his wife or his sister Carolyn Blake.
Ms. Blake moved to Kuwait because Major Cockerham told her she could make more
money there than she was making as a teacher in Dallas, according to the court papers.
Mrs. Cockerham, who lived at the couples home at Fort Sam Houston, made at least two
trips to Kuwait and Dubai, once taking her 7-year-old sons and 3-year-old daughter.
The company representatives would show up at her hotel room with bags of cash, then
accompany her to put the money in safe deposit boxes, the records assert.
There is little evidence the couple went on buying binges. Investigators have seized
$175,000 from an account believed linked to them. During the December 2006 search of
their home, court documents said, the couple confessed to accepting $1 million in bribes.
However, investigators reported nding handwritten ledgers with coded entries for
amounts from $13,600 to $2 million stashed in offshore bank accounts. The court records
allege that the major accepted bribes from eight companies, which are not named in the
documents.
A Letter From Prison
At church services in Castor on Sept. 9, Mrs. Egans told congregants of New Friendship
Baptist Church that she had gotten a letter from Major Cockerham, who is in custody in a
federal prison in San Antonio, Tex., with his wife. (Their children are staying with Melissa
Cockerhams relatives in Kentucky.) He wrote that his wife was busy with a new singing
ministry for the other women in the prison and that he had preached two sermons to the
men.
He thanked Mrs. Egans for reading the names of his sons when they were baptized, just as
she had done at his own baptism more than 30 years earlier. He offered no explanation of
the charges against him, nor did he express any sadness.

United States Government Accountability Office

September 19, 2013

Keven L. Barnes
Latvian Connection General Trading and Construction LLC

File: B-408913
Protester: Latvian Connection General Trading and Construction LLC
Solicitation No.: FA5685-13-T-0045
Report Due: 10/18/2013 Decision Due: 12/27/2013
GAO Attorney: Christina Sklarew Phone: 202-512-5704
Official Fax: 202-512-9749 Case Status: 202-512-5436

ACKNOWLEDGMENT OF PROTEST

We have received your protest concerning the referenced procurement. The
contracting agency is required to file a report in response to the protest by the
Report Due date indicated above. Under our Bid Protest Regulations, 4 C.F.R.
21.3(i), you are required to submit written comments in response to the report.
Written comments must be received in our Office within 10 calendar days of your
receipt of the report--otherwise, we will dismiss your protest. For purposes of
determining when your response to the agency report must be submitted, we will
assume that you received the report by the Report Due date unless you notify us
otherwise at that time.

Also, the agency has been advised that if you have filed a request for specific
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to the Report Due date, a list of those documents, or portions of documents, that the
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Bid protests, and subsequent associated filings, may be filed using the following
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Please refrain from sending voluminous transmissions or lengthy exhibits.
These exhibits should be hand delivered, or sent by mail or commercial
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Please refer to our file number in all future correspondence regarding the protest.

--For the Managing Associate General Counsel

United States Government Accountability Office

September 19, 2013

Sarah Dadson
Department of the Air Force

File: B-408913
Protester: Latvian Connection General Trading and Construction LLC
Solicitation No.: FA5685-13-T-0045
Report Due: 10/18/2013 Decision Due: 12/27/2013
GAO Attorney: Christina Sklarew Phone: 202-512-5704
Official Fax: 202-512-9749 Case Status: 202-512-5436

CONFIRMATION OF REPORT REQUIREMENT

This confirms our telephonic notice of the protest and report due date indicated
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--For the Managing Associate General Counsel

Usaf Fail To Honor U.S. Small Business Act in Incirlik Air Base Turkey - Corruption at Pentagon Level

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