FAC 2025-06

Definition

Deviation

− Deviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in

− 2.101).

+ Deviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in 2.101).

(d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).

Deviations

− Deviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in

− 2.101).

+ Deviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in 2.101).

(d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).

Significant revisions

also provides for agency and public participation in developing

the FAR and agency acquisition regulation.

− The Federal Acquisition Regulation (FAR) includes all Federal Acquisition Circulars through FAC 2025-05 August 7, 2025. Beginning in fiscal year 2019, designation of Federal Acquisition Circulars was changed to reflect the fiscal year in the first four digits and the sequence of the issued circular in the last two digits.

+ The Federal Acquisition Regulation (FAR) includes all Federal Acquisition Circulars through FAC 2025-06 October 1, 2025. Beginning in fiscal year 2019, designation of Federal Acquisition Circulars was changed to reflect the fiscal year in the first four digits and the sequence of the issued circular in the last two digits.

also provides for agency and public participation in developing

the FAR and agency acquisition regulation.

− The Federal Acquisition Regulation (FAR) includes all Federal Acquisition Circulars through 2025-05. Beginning in fiscal year 2019, designation of Federal Acquisition Circulars was changed to reflect the fiscal year in the first four digits and the sequence of the issued circular in the last two digits.

+ The Federal Acquisition Regulation (FAR) includes all Federal Acquisition Circulars through 2025-06. Beginning in fiscal year 2019, designation of Federal Acquisition Circulars was changed to reflect the fiscal year in the first four digits and the sequence of the issued circular in the last two digits.

List of Sections Affected

− FAC 2025-05 August 7, 2025

− SectionDescription of ChangeCase Number

− 32.907

− (e)

− Amend section 32.907, in paragraph (e) by removing the last sentence.

− Technical Amendments

− 43.101

− Revise section 43.101

− Technical Amendments 52.204-7 (b)(1)

− Accordingly, the interim rule amending 48 CFR part 52, which published in the Federal Register at 89 FR 89472 on November 12, 2024, is adopted as a final rule without change.

− Amend section 52.204-7 by revising the date of the provision and paragraph (b)(1)

− FAR Case 2023-01852.247-60, (a)(1)(x), (xi) and (b) Amend section 52.247-60 by—

− a. Revising the date of the clause and paragraphs (a)(1)(x) and (xi); and

− b. Removing from the end of paragraph (b) the phrase “*Number of complete units (contract line item) to be shipped in carrier’s equipment.”

− Technical Amendments

+ FAC 2025-06 October 1, 2025

+ SectionDescription of ChangeCase Number 1.109 (e) Amend section 1.109, in paragraph (e) by removing “2019-013” and adding “2024-001” in its place.

+ FAR Case 2024-001 2.101 in the definitions of "Major system", "Micro-purchase threshold", and "Simplified acquisition threshold"

+ Amend section 2.101, by—

+ a. In the definition “Major system”, removing from paragraph (2) “$2.5 million” and adding “$3 million” in its place; and

+ b. Revising the definitions of “Micro-purchase threshold” and “Simplified acquisition threshold”.

+ FAR Case 2024-001

+ 3.502-2

+ (i)

+ Amend section 3.502-2 in paragraph (i) introductory text by removing “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 3.502-3

+ Amend section 3.502-3 by removing “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 3.804

+ Amend section 3.804 by removing “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 3.808

+ (a) and (b)

+ Amend section 3.808 in paragraphs (a) and (b) by removing “$150,000” and adding “$200,000” in their places, respectively.

+ FAR Case 2024-001

+ 3.1004

+ (a), (b)(1)(i) and (b)(3)

+ Amend section 3.1004 in paragraphs (a), (b)(1)(i), and (b)(3) by removing “$6 million” and adding “$7.5 million” in their places, respectively.

+ FAR Case 2024-001

+ 4.605

+ (c)(2)(i)

+ Amend section 4.605 in paragraphs (c)(2)(i) introductory text and (c)(2)(ii) by removing “$30,000” and adding “$40,000” in their places, respectively.

+ FAR Case 2024-001

+ 4.1102

+ (a)(6)

+ Amend section 4.1102 in paragraph (a)(6) by removing “$30,000” and adding “$40,000” in its place.

+ FAR Case 2024-001

+ 4.1401

+ (a)

+ Amend section 4.1401 in paragraph (a) by removing “$30,000” and adding “$40,000” in its place.

+ FAR Case 2024-001

+ 4.1403

+ (a)

+ Amend section 4.1403 in paragraph (a) by removing “$30,000” and adding “$40,000” in its place.

+ FAR Case 2024-001

+ 5.101

+ (a)(2)

+ Amend section 5.101 in paragraph (a)(2) introductory text by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 5.205

+ (d)(2)

+ Amend section 5.205 in paragraph (d)(2) by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 5.206

+ (a)(2)

+ Amend section 5.206 in paragraph (a)(2) by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 5.303

+ (a)

+ Amend section 5.303 in paragraph (a) introductory text by removing “$4.5 million” and adding “$5.5 million” in its place.

+ FAR Case 2024-001

+ 6.204

+ (b)

+ Amend section 6.204 in paragraph (b) by removing “$25 million” and adding “$30 million” in its place.

+ FAR Case 2024-001

+ 6.302-5

+ (b)(4) and (c)(2)(iii)

+ Amend section 6.302-5 in paragraphs (b)(4) and (c)(2)(iii) by removing “$25 million” and adding “$30 million” in their places, respectively.

+ FAR Case 2024-001

+ 6.303-1

+ (b)

+ Amend section 6.303-1 in paragraph (b) introductory text by removing “$25 million” and adding “$30 million” in its place.

+ FAR Case 2024-001

+ 6.303-2

+ (b) and (d)

+ Amend section 6.303-2 by removing from the introductory text of paragraphs (b) and (d) “$25 million” and adding “$30 million” in their places, respectively.

+ Amend section 6.303-2 by removing from the introductory text of paragraphs (b) and (d) “$25 million” and adding “$30 million” in their places, respectively.

+ FAR Case 2024-001

+ 6.304

+ (a)

+ Amend section 6.304 by revising paragraph (a).

+ FAR Case 2024-001

+ 6.502

+ (b)(2)(vii)

+ Amend section 6.502 in paragraph (b)(2)(vii) by removing “$1,000,000” and adding “$1.5 million” in its place.

+ FAR Case 2024-001

+ 8.404

+ (b)(2)

+ Amend section 8.404 in paragraph (b)(2) by removing “$600,000” and adding “$750,000” in its place.

+ FAR Case 2024-001

+ 8.405-3

+ (a)(3)(ii), (a)(3)(iii) and (a)(7)(v)

+ Amend section 8.405-3 in paragraphs (a)(3)(ii) introductory text, (a)(3)(iii), and (a)(7)(v) by removing “$100 million” wherever it appears and adding “$150 million” in their places, respectively.

+ FAR Case 2024-001

+ 8.405-6

+ (d)

+ Amend section 8.405-6 by revising paragraph (d).

+ FAR Case 2024-001

+ 9.104-5

+ (a)(2) and (c)

+ Amend section 9.104-5 by—

+ a. Removing from paragraph (a)(2) “$10,000” and adding “$15,000” in its place; and

+ b. Removing from paragraph (c) “$5.5 million” and adding “$7 million” in its place.

+ FAR Case 2024-001

+ 9.104-7

+ (b), (c)(1) and (e)

+ Amend section 9.104-7 by—

+ a. Removing from paragraphs (b) and (c)(1) “$600,000” and adding “$750,000” in their places, respectively; and

+ b. Removing from paragraph (e) “$5.5 million” and adding “$7 million” in its place.

+ FAR Case 2024-001

+ 9.405-2

+ (b)

+ Amend section 9.405-2 in paragraph (b) introductory text by removing “$35,000” wherever it appears and adding “$45,000” in their places, respectively.

+ FAR Case 2024-001

+ 9.409

+ Amend section 9.409 by removing “$35,000” and adding “$45,000” in its place.

+ FAR Case 2024-001

+ 10.001

+ (d)

+ Amend section 10.001 in paragraph (d) by removing “$6 million” and adding “$7.5 million” in its place.

+ FAR Case 2024-001

+ 10.003

+ Amend section 10.003 by removing “$6 million” and adding “$7.5 million” in its place.

+ FAR Case 2024-001

+ 12.102

+ (f)(2)

+ Amend section 12.102 by revising paragraph (f)(2).

+ FAR Case 2024-001

+ 12.203

+ (a)

+ Amend section 12.203 in paragraph (a) by removing “$7.5 million” and adding “$9 million” in its place.

+ FAR Case 2024-001

+ 13.000

+ Amend section 13.000 by removing “$7.5 million” and adding “$9 million” in its place.

+ FAR Case 2024-001

+ 13.003

+ (c)(1)(ii) and (g)(2)

+ Amend section 13.003 by removing from paragraphs (c)(1)(ii) and (g)(2) “$7.5 million” and adding “$9 million” in their places, respectively.

+ FAR Case 2024-001

+ 13.201

+ (g)(1)(i) and (g)(1)(ii)

+ Amend section 13.201 by revising paragraphs (g)(1)(i) and (ii).

+ FAR Case 2024-001

+ 13.303-5

+ (b)(1) and (b)(2)

+ Amend section 13.303-5 in paragraph (b)(1) by removing “$7.5 million” and adding “$9 million” in its place, and revising paragraph (b)(2).

+ FAR Case 2024-001

+ 13.402

+ (a)

+ Amend section 13.402 in paragraph (a) by removing “$35,000” and adding “$45,000” in its place.

+ FAR Case 2024-001

+ 13.500

+ (a)

+ Amend section 13.500 by removing from paragraph (a) “$7.5 million” and adding “$9 million” in its place.

+ FAR Case 2024-001

+ 13.501

+ (a)(2)(i) and (a)(2)(iv)

+ Amend section 13.501 by revising paragraphs (a)(2)(i) through (iv)

+ FAR Case 2024-001

+ 15.403-1

+ (c)(3)(iv)

+ Amend section 15.403-1 in paragraph (c)(3)(iv) by removing “$20 million” and adding “$25 million” in its place.

+ FAR Case 2024-001

+ 15.403-4

+ (a)(1) and (a)(3)

+ Amend section 15.403-4 by—

+ a. Removing from paragraph (a)(1) introductory text “$750,000” and “$2 million” and adding “$950,000” and “$2.5 million” in their places, respectively; and

+ b. Removing from paragraph (a)(3) “$2 million” and adding “$2.5 million” in its place.

+ FAR Case 2024-001

+ 15.404-3

+ (c)(1)(i)

+ Amend section 15.404-3 in paragraph (c)(1)(i) by removing “$15 million” and adding “$20 million” in its place.

+ FAR Case 2024-001

+ 15.407-2

+ (c)(1) and (c)(2)

+ Amend section 15.407-2 by removing from paragraphs (c)(1) and (c)(2) introductory text “$15 million” and adding “$20 million” in their places, respectively.

+ FAR Case 2024-001

+ 15.408

+ (n)(2)(iii)

+ Amend section 15.408, in Table 15-2, section II, paragraph A.(2) by removing “$15 million” and adding “$20 million” in its place.

+ FAR Case 2024-001

+ 16.503

+ (b)(2) and (d)(1)

+ Amend section 16.503 by—

+ a. Removing from paragraph (b)(2) “$100 million” and adding “$150 million” in its place; and

+ b. Removing from paragraph (d) “$15 million” and adding “$20 million” in its place.

+ FAR Case 2024-001

+ 16.504

+ (c)(1)(ii)(D)(1), (c)(1)(ii)(D)(3) and (c)(2)(i)

+ Amend section 16.504 by—

+ a. Removing from paragraphs (c)(1)(ii)(D)( 1) introductory text and (D)( 3) introductory text, “$100 million” and adding “$150 million” in their places, respectively; and

+ b. Removing from paragraph (c)(2)(i) introductory text “$15 million” and adding “$20 million” in its place.

+ FAR Case 2024-001

+ 16.505

+ (a)(4)(iii)(A), (b)(1)(iv), (b)(2)(ii)(C), (b)(2)(ii)(C)(1) and (b)(6)

+ Amend section 16.505 by revising paragraphs (a)(4)(iii)(A) introductory text, (b)(1)(iv) paragraph heading and introductory text, (b)(2)(ii)(C), and (b)(6) heading and introductory text.

+ FAR Case 2024-001

+ 16.506

+ (f),(g) and (h)

+ Amend section 16.506 by—

+ a. Removing from paragraphs (f) and (g) “$15 million” and adding “$20 million” in their places, respectively; and

+ b. Removing from paragraph (h) “$6 million” and adding “$7.5 million” in its place.

+ FAR Case 2024-001

+ 17.108

+ (a) and (b)

+ Amend section 17.108 by—

+ a. Removing from paragraph (a) “$15 million” and adding “$20 million” in its place; and

+ b. Removing from paragraph (b) “$150 million” and adding “$200 million” in its place.

+ FAR Case 2024-001

+ 17.500

+ (c)(2)

+ Amend section 17.500 in paragraph (c)(2) by removing “$600,000” and adding “$750,000” in its place.

+ FAR Case 2024-001

+ 19.702

+ (a)(1)(i), (a)(1)(ii) and (a)(1)(iii)

+ Amend section 19.702 by removing from paragraphs (a)(1)(i) through (iii) “$750,000 ($1.5 million” and adding “$900,000 ($2 million” in their places, respectively.

+ FAR Case 2024-001

+ 19.704

+ (a)(9)

+ Amend section 19.704 in paragraph (a)(9) by removing “$750,000 ($1.5 million” and adding “$900,000 ($2 million” in its place.

+ FAR Case 2024-001

+ 19.708

+ (b)(1)

+ Amend section 19.708 in paragraph (b)(1) by removing “$750,000 ($1.5 million” and adding “$900,000 ($2 million” in its place.

+ FAR Case 2024-001

+ 19.804-6

+ (c)(2)

+ Amend section 19.804-6 in paragraph (c)(2) by removing “$7 million” and “$4.5 million” and adding “$8.5 million” and “$5.5 million” in their places, respectively.

+ FAR Case 2024-001

+ 19.805-1

+ (a)(2)

+ Amend section 19.805-1 in paragraph (a)(2) by removing “$7 million” and “$4.5 million” and adding “$8.5 million” and “$5.5 million” in their places, respectively.

+ FAR Case 2024-001

+ 19.808-1

+ (a)

+ Amend section 19.808-1 in paragraph (a) by removing “$25 million” and adding “$30 million” in its place.

+ FAR Case 2024-001

+ 19.1306

+ (a)(2)(i) and (a)(2)(ii)

+ Amend section 19.1306 by—

+ a. Removing from paragraph (a)(2)(i) “$7 million” and adding “$8.5 million” in its place; and

+ b. Removing from paragraph (a)(2)(ii) “$4.5 million” and adding “$5.5 million” in its place.

+ FAR Case 2024-001

+ 19.1406

+ (a)(2)(i) and (a)(2)(ii)

+ Amend section 19.1406 by—

+ a. Removing from paragraph (a)(2)(i) “$7 million” and adding “$8.5 million” in its place; and

+ b. Removing from paragraph (a)(2)(ii) “$4 million” and adding “$5 million” in its place.

+ FAR Case 2024-001

+ 19.1506

+ (c)(1)(i) and (c)(1)(ii)

+ Amend section 19.1506 by—

+ a. Removing from paragraph (c)(1)(i) “$7 million” and adding “$8.5 million” in its place; and

+ b. Removing from paragraph (c)(1)(ii) “$4.5 million” and adding “$5.5 million” in its place.

+ FAR Case 2024-001

+ 22.305

+ (a)

+ Amend section 22.305 in paragraph (a) by removing “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 22.602

+ Amend section 22.602 by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 22.603

+ (b)

+ Amend section 22.603 in paragraph (b) by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 22.605

+ (a)(1), (a)(2) and (a)(3)

+ Amend section 22.605 by removing from paragraphs (a)(1), (a)(2), (a)(3), and (a)(5) “$15,000” wherever it appears and adding “$20,000” in their places, respectively.

+ FAR Case 2024-001

+ 22.1103

+ Amend section 22.1103 by removing “$750,000” and adding “$900,000” in its place.

+ FAR Case 2024-001

+ 22.1303

+ (a) and (c)

+ Amend section 22.1303 in paragraphs (a) and (c) by removing “$150,000” and adding “$200,000” in their places, respectively.

+ FAR Case 2024-001

+ 22.1310

+ (a)(1)

+ Amend section 22.1310 in paragraph (a)(1) by removing “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 22.1402

+ (a)

+ Amend section 22.1402 in paragraph (a) by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 22.1408

+ (a)

+ Amend section 22.1408 in paragraph (a) introductory text by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 22.1701

+ (b)(2)

+ Amend section 22.1701 in paragraph (b)(2) by removing “$550,000” and adding “$700,000” in its place.

+ FAR Case 2024-001

+ 22.1703

+ (c)(1)(i)(B) and (c)(3)(i)(B)

+ Amend section 22.1703 by removing from paragraphs (c)(1)(i)(B) and (c)(3)(i)(B) “$550,000” and adding “$700,000” in their places, respectively.

+ FAR Case 2024-001

+ 22.1705

+ (b)(1)

+ Amend section 22.1705 in paragraph (b)(1) by removing “$550,000” and adding “$700,000” in its place.

+ FAR Case 2024-001

+ 23.109

+ (b)(2)

+ Amend section 23.109 in paragraph (b)(2) by removing “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 25.703-2

+ (a)(2)

+ Amend section 25.703-2 in paragraph (a)(2) by removing “$10,000” and adding “$15,000” in its place.

+ FAR Case 2024-001

+ 26.404

+ Amend section 26.404 by removing “$30,000” and adding “$35,000” in its place.

+ FAR Case 2024-001 30.201-4 (b)(1) Amend section 30.201-4 in paragraph (b)(1) by removing “$2 million” and adding “$2.5 million” in its place.

+ FAR Case 2024-001

+ 32.104

+ (d)(2)(i) and (d)(2)(ii)

+ Amend section 32.104 by removing from paragraphs (d)(2)(i) and (ii) “$3 million” and adding “$3.5 million” in their places, respectively.

+ FAR Case 2024-001

+ 32.404

+ (a)(7)(i)

+ Amend section 32.404 in paragraph (a)(7)(i) by removing “$15,000” and adding “$20,000” in its place.

+ FAR Case 2024-001

+ 36.303-1

+ (a)(4)

+ Amend section 36.303-1 in paragraph (a)(4) by removing “$4.5 million” and adding “$5.5 million” in its place.

+ FAR Case 2024-001 36.501 (b)

+ Amend section 36.501 in paragraph (b) by removing “$1.5 million” wherever it appears and adding “$2 million” in their places, respectively.

+ FAR Case 2024-001

+ 42.709-1

+ (b)

+ Amend section 42.709-1 in paragraph (b) by removing “$800,000” and adding “$1 million” in its place.

+ FAR Case 2024-001

+ 42.709-7

+ Amend section 42.709-7 by removing “$800,000” and adding “$1 million” in its place.

+ FAR Case 2024-001 42.1502 (e) and (f)

+ Amend section 42.1502 by—

+ a. Removing from paragraph (e) “$750,000” wherever it appears and adding “$900,000” in their places, respectively; and

+ b. Removing from paragraph (f) “$35,000” wherever it appears and adding “$45,000” in their places, respectively.

+ FAR Case 2024-001

+ 50.102-1

+ (b)

+ Amend section 50.102-1 in paragraph (b) by removing “$75,000” and adding “$90,000” in its place.

+ FAR Case 2024-001

+ 50.102-3

+ (e)(1)(i) and (e)(1)(ii)

+ Amend section 50.102-3 by removing from paragraphs (e)(1)(i) and (ii) “$75,000” and adding “$90,000” in their places, respectively.

+ FAR Case 2024-001

+ 52.204-8, clause date/heading and (c)(1)(ii)

+ Amend section 52.204-8 by revising the date of the provision, and removing from paragraph (c)(1)(ii) “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001

+ 52.209-12 and (b)

+ Amend section 52.209-12 by revising the date of the provision, and removing from paragraph (b) introductory text “$5.5 million” and adding “$7 million” in its place.

+ FAR Case 2024-001

+ 52.212-3 and (e)

+ Amend section 52.212-3 by revising the date of the provision, and removing from paragraph (e) “$150,000” and adding “$200,000” in its place.

+ FAR Case 2024-001 52.212-5, (b)(39)(i), (e)(1)(xvi)(A), and Alternate II paragraph (e)(1)(ii)(O)(1)

+ Amend section 52.212-5 by—

+ a. Revising the date of the clause;

+ b. Removing from paragraphs (b)(39)(i) and (e)(1)(xvi)(A) “NOV 2021” and adding “OCT 2025” in their places, respectively;

+ c. In Alternate II:

+ i. Revising the date of the alternate; and

+ ii. Removing from paragraph (e)(1)(ii)(O)(1) “NOV 2021” and adding “OCT 2025” in its place.

+ FAR Case 2024-001

+ 52.213-4, (a)(1)(vii) and (b)(1)(ix)(A)

+ Amend section 52.213-4 by—

+ a. Revising the date of the clause;

+ b. Removing from paragraph (a)(2)(vii) “JAN 2025” and adding “OCT 2025” in its place; and

+ c. Removing from paragraph (b)(1)(ix)(A) “NOV 2021” and adding “OCT 2025” in its place.

+ FAR Case 2024-001 52.214-28,Alternate I, paragraphs (b)(1) and (b)(2)

+ Amend section 52.214-28 in Alternate I by: a. Revising the date of the alternate;

+ b. Removing from paragraph (b)(1) “$750,000” and adding “$950,000” in its place; and

+ c. Removing from paragraph (b)(2) “$2 million” wherever it appears and adding “$2.5 million” in their places, respectively.

+ FAR Case 2024-001 52.215-12,Alternate I, paragraphs (a)(1) and (a)(2)

+ Amend section 52.215-12 in Alternate I by:

+ a. Revising the date of the alternate;

+ b. Removing from paragraph (a)(1) “$750,000” and adding “$950,000” in its place; and

+ c. Removing from paragraph (a)(2) “$2 million” wherever it appears and adding “$2.5 million” in their places, respectively.

+ FAR Case 2024-001 52.215-13,Alternate I, paragraphs (b)(1), (b)(2), and (d)

+ Amend section 52.215-13 in Alternate I by:

+ a. Revising the date of the alternate;

+ b. Removing from paragraph (b)(1) “$750,000” and adding “$950,000” in its place; and

+ c. Removing from paragraph (b)(2) “$2 million” wherever it appears and adding “$2.5 million” in their places, respectively.

+ FAR Case 2024-001

+ 52.222-50, (h)(1)(ii) and (i)(1)(ii)

+ Amend section 52.222-50 by revising the date of the clause, and removing from paragraphs (h)(1)(ii) and (i)(1)(ii) “$550,000” and adding “$700,000” in their places, respectively.

+ FAR Case 2024-001

+ 52.222-56 and (b)(2)

+ Amend section 52.222-56 by revising the date of the provision, and removing from paragraph (b)(2) “$550,000” and adding “$700,000” in its place.

+ FAR Case 2024-001

+ 52.225-8, (c)(1) and (j)(2)

+ Amend section 52.225-8 by revising the date of the clause, and removing from paragraphs (c)(1) introductory text and (j)(2) “$15,000” and adding “$20,000” in their places, respectively.

+ FAR Case 2024-001

+ 52.244-6 and (c)(1)(xvii)(A)

+ Amend section 52.244-6 by—

+ a. Revising the date of the clause; and

+ b. Removing from paragraph (c)(1)(xvii)(A) “NOV 2021” and adding “OCT 2025” in its place.

+ FAR Case 2024-001

+ 52.248-3 and (h)

+ Amend section 52.248-3 by revising the date of the clause, and removing from paragraph (h) “$75,000” and adding “$90,000” in its place.

+ FAR Case 2024-001

− Part 50 - Extraordinary Contractual Actions and the safety act

+ Part 50 - Extraordinary Contractual Actions and the SAFETY Act

50.000 Scope of part.

Subpart 50.1 - Extraordinary Contractual Actions

52.240 [Reserved]

52.240-1 Prohibition on Unmanned Aircraft Systems Manufactured or Assembled by American Security Drone Act-Covered Foreign Entities.

− 52.241 Utility Services Provisions and Clauses.

+ 52.241 [Reserved]

52.241-1 Electric Service Territory Compliance Representation.

52.241-2 Order of Precedence-Utilities.

FAR Definition List

− Term

− Definition

− Deviation

− Deviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in

− 2.101).

− (d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).

− Deviations

− Deviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in

− 2.101).

− (d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).

− Significant revisions

− Significant revisions, as used in this subpart, means revisions that alter the substantive meaning of any coverage in the FAR System and which have a significant cost or administrative impact on contractors or offerors, or significant effect beyond the internal operating procedures of the issuing agency. This expression, for example, does not include editorial, stylistic, or other revisions that have no impact on the basic meaning of the coverage being revised.

− Significant revisionses

− Significant revisions, as used in this subpart, means revisions that alter the substantive meaning of any coverage in the FAR System and which have a significant cost or administrative impact on contractors or offerors, or significant effect beyond the internal operating procedures of the issuing agency. This expression, for example, does not include editorial, stylistic, or other revisions that have no impact on the basic meaning of the coverage being revised.

− Ratification

− Ratification, as used in this subsection, means the act of approving an unauthorized commitment by an official who has the authority to do so.

− Ratifications

− Ratification, as used in this subsection, means the act of approving an unauthorized commitment by an official who has the authority to do so.

− Unauthorized commitment

− Unauthorized commitment, as used in this subsection, means an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.

− Unauthorized commitments

− Unauthorized commitment, as used in this subsection, means an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.

− Determination and Findings

− Determination and Findings means a special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions. The "determination" is a conclusion or decision supported by the "findings.’’ The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.

− Determination and Findingses

− Determination and Findings means a special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions. The "determination" is a conclusion or decision supported by the "findings.’’ The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.

− Acquisition

− Acquisition means

+ TermDefinitionDeviationDeviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in 2.101).

+ (d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).DeviationsDeviation means any one or combination of the following:(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 2.101), contract clause (see definition in 2.101), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.(b) The omission of any solicitation provision or contract clause when its prescription requires its use.(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definition of "modification" in 52.101(a) and definition of "alternate" in 2.101).

+ (d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 2.101 and 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR.(e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).Significant revisionsSignificant revisions, as used in this subpart, means revisions that alter the substantive meaning of any coverage in the FAR System and which have a significant cost or administrative impact on contractors or offerors, or significant effect beyond the internal operating procedures of the issuing agency. This expression, for example, does not include editorial, stylistic, or other revisions that have no impact on the basic meaning of the coverage being revised.Significant revisionsesSignificant revisions, as used in this subpart, means revisions that alter the substantive meaning of any coverage in the FAR System and which have a significant cost or administrative impact on contractors or offerors, or significant effect beyond the internal operating procedures of the issuing agency. This expression, for example, does not include editorial, stylistic, or other revisions that have no impact on the basic meaning of the coverage being revised.RatificationRatification, as used in this subsection, means the act of approving an unauthorized commitment by an official who has the authority to do so.RatificationsRatification, as used in this subsection, means the act of approving an unauthorized commitment by an official who has the authority to do so.Unauthorized commitmentUnauthorized commitment, as used in this subsection, means an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.Unauthorized commitmentsUnauthorized commitment, as used in this subsection, means an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.Determination and FindingsDetermination and Findings means a special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions. The "determination" is a conclusion or decision supported by the "findings.’’ The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.Determination and FindingsesDetermination and Findings means a special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions. The "determination" is a conclusion or decision supported by the "findings.’’ The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.AcquisitionAcquisition means

the acquiring by contract with appropriated funds of supplies or

services (including construction) by and for the use of the Federal

(d)

The statute, as amended by section 821 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91), requires the adjustment described in paragraph (a) of this section be applied to contracts and subcontracts without regard to the date of award of the contract or subcontract. Therefore, if a threshold is adjusted for inflation as set forth in paragraph (a) of this section, then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment.

− (e)

− A matrix showing calculation of the most recent escalation adjustments of statutory acquisition-related dollar thresholds is available via the Internet at http://www.regulations.gov (search FAR Case

− 2019-013,

− open the docket folder, and go to the supporting documents file).

+ (e) A matrix showing calculation of the most recent escalation adjustments of statutory acquisition-related dollar thresholds is available via the Internet at http://www.regulations.gov (search FAR Case 2024-001, open the docket folder, and go to the supporting documents file).

fiscal year, as specified in the DoD Instruction 5000.02, "Operation

of the Defense Acquisition System");

− (2)

− A civilian

− agency is responsible for the system and total expenditures for

− the system are estimated to exceed $2.5 million or the dollar threshold

− for a "major system" established by the agency pursuant to Office

− of Management and Budget Circular A-109, entitled "Major System

− Acquisitions," whichever is greater; or

+ (2) A civilian agency is responsible for the system and total expenditures for the system are estimated to exceed $3 million or the dollar threshold for a "major system" established by the agency pursuant to Office of Management and Budget Circular A-109, entitled "Major System Acquisitions," whichever is greater; or

(3)

The system is designated a "major system" by the head of the agency responsible for the system (10 U.S.C. 3041 and 41 U.S.C. 109).

of any prime contractor or subcontractor under a prime contract

awarded by such agency.

− (i)

− Requires each contracting

− agency to include in each prime contract, other than for commercial

− products or commercial services, exceeding $150,000, a requirement

− that the prime contractor shall–

+ (i) Requires each contracting agency to include in each prime contract, other than for commercial products or commercial services, exceeding $200,000, a requirement that the prime contractor shall–

(1) Have in place

and follow reasonable procedures designed to prevent and detect

3.502-3 Contract clause.

− The contracting officer shall insert the

− clause at 52.203-7, Anti-Kickback

− Procedures, in solicitations and contracts exceeding $150,000, other

− than those for commercial

− products or commercial services (see part 12).

+ The contracting officer shall insert the clause at 52.203-7, Anti-Kickback Procedures, in solicitations and contracts exceeding $200,000, other than those for commercial products or commercial services (see part 12).

As used in this subpart-

Agency means "executive agency" as defined in 2.101.

− Covered Federal action means any of the following actions:

− (1) Awarding any Federal contract.

+ Covered Federal action means any of the following actions:(1) Awarding any Federal contract.

(2) Making any Federal grant.

(3) Making any Federal loan.

3.804 Policy.

− The contracting officer shall obtain certifications and disclosures as required by the provision at 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, prior to the award of any contract exceeding $150,000.

+ The contracting officer shall obtain certifications and disclosures as required by the provision at 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, prior to the award of any contract exceeding $200,000.

3.808 Solicitation provision and contract clause.

− (a)

− Insert the provision at 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, in solicitations expected to exceed $150,000.

− (b)

− Insert the clause at 52.203-12, Limitation on Payments to Influence Certain Federal Transactions, in solicitations and contracts expected to exceed $150,000.

+ (a) Insert the provision at 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, in solicitations expected to exceed $200,000.

+ (b) Insert the clause at 52.203-12, Limitation on Payments to Influence Certain Federal Transactions, in solicitations and contracts expected to exceed $200,000.

As used in this section-

Board means the Recovery Accountability and Transparency Board established by Section 1521 of the Recovery Act.

− Covered funds means any contract payment, grant payment, or other payment received by a contractor if-

− (1) The Federal Government provides any portion of the money or property that is provided, requested, or demanded; and

+ Covered funds means any contract payment, grant payment, or other payment received by a contractor if- (1) The Federal Government provides any portion of the money or property that is provided, requested, or demanded; and

(2) At least some of the funds are appropriated or otherwise made available by the Recovery Act.

Covered information means information that the employee reasonably believes is evidence of gross mismanagement of the contract or subcontract related to covered funds, gross waste of covered funds, a substantial and specific danger to public health or safety related to the implementation or use of covered funds, an abuse of authority related to the implementation or use of covered funds, or a violation of law, rule, or regulation related to an agency contract (including the competition for or negotiation of a contract) awarded or issued relating to covered funds.

3.1004 Contract clauses.

− (a) Insert the clause at FAR 52.203-13, Contractor

− Code of Business Ethics and Conduct, in solicitations and contracts if

− the value of the contract is expected to exceed $6 million and the

− performance period is 120 days or more.

+ (a) Insert the clause at FAR 52.203-13, Contractor Code of Business Ethics and Conduct, in solicitations and contracts if the value of the contract is expected to exceed $7.5 million and the performance period is 120 days or more.

(b)

(1) Unless

3.1101 Definitions.

As used in this subpart-

− Acquisition

− function closely associated with inherently governmental functions means

− supporting or providing advice or recommendations with regard to

− the following activities of a Federal agency:

− (1) Planning

− acquisitions.

− (2) Determining

− what supplies or services are to be acquired by the Government,

− including developing statements of work.

− (3) Developing

− or approving any contractual documents, to include documents defining

− requirements, incentive plans, and evaluation criteria.

− (4) Evaluating

− contract proposals.

− (5) Awarding

− Government contracts.

− (6) Administering

− contracts (including ordering changes or giving technical direction

− in contract performance or contract quantities, evaluating contractor

− performance, and accepting or rejecting contractor products or services).

− (7) Terminating

− contracts.

− (8) Determining

− whether contract costs are reasonable, allocable, and allowable.

− (a)

− Covered

− employee means an individual who performs an acquisition function

− closely associated with inherently governmental functions and is-

− (1) An

− employee of the contractor; or

− (2) A subcontractor

− that is a self-employed individual treated as a covered employee

− of the contractor because there is no employer to whom such an individual

− could submit the required disclosures.

− Personal conflict of interest means a situation

− in which a covered employee has a financial interest, personal activity,

− or relationship that could impair the employee’s ability to act

− impartially and in the best interest of the Government when performing

− under the contract. (A de minimis interest that would not

− "impair the employee’s ability to act impartially and in the best

− interest of the Government" is not covered under this definition.)

− (1) Among the

− sources of personal conflicts of interest are-

− (i) Financial

− interests of the covered employee, of close family members, or of

− other members of the covered employee's household;

− (ii) Other

− employment or financial relationships (including seeking or negotiating

− for prospective employment or business); and

− (iii) Gifts,

− including travel.

− (2) For example,

− financial interests referred to in paragraph (1) of this definition

− may arise from-

− (i) Compensation,

− including wages, salaries, commissions, professional fees, or fees

− for business referrals;

− (ii) Consulting

− relationships (including commercial and professional consulting

− and service arrangements, scientific and technical advisory board

− memberships, or serving as an expert witness in litigation);

− (iii) Services

− provided in exchange for honorariums or travel expense reimbursements;

− (iv) Research

− funding or other forms of research support;

− (v) Investment

− in the form of stock or bond ownership or partnership interest (excluding

− diversified mutual fund investments);

− (vi) Real estate

− investments;

− (vii) Patents,

− copyrights, and other intellectual property interests; or

− (viii) Business

− ownership and investment interests.

+ Acquisition function closely associated with inherently governmental functions means supporting or providing advice or recommendations with regard to the following activities of a Federal agency:(1) Planning acquisitions.

+ (2) Determining what supplies or services are to be acquired by the Government, including developing statements of work.

+ (3) Developing or approving any contractual documents, to include documents defining requirements, incentive plans, and evaluation criteria.

+ (4) Evaluating contract proposals.

+ (5) Awarding Government contracts.

+ (6) Administering contracts (including ordering changes or giving technical direction in contract performance or contract quantities, evaluating contractor performance, and accepting or rejecting contractor products or services).

+ (7) Terminating contracts.

+ (8) Determining whether contract costs are reasonable, allocable, and allowable.

+ Covered employee means an individual who performs an acquisition function closely associated with inherently governmental functions and is-(1) An employee of the contractor; or

+ (2) A subcontractor that is a self-employed individual treated as a covered employee of the contractor because there is no employer to whom such an individual could submit the required disclosures.

+ Personal conflict of interest means a situation in which a covered employee has a financial interest, personal activity, or relationship that could impair the employee’s ability to act impartially and in the best interest of the Government when performing under the contract. (A de minimis interest that would not "impair the employee’s ability to act impartially and in the best interest of the Government" is not covered under this definition.)

+ (1) Among the sources of personal conflicts of interest are-

+ (i) Financial interests of the covered employee, of close family members, or of other members of the covered employee's household;

+ (ii) Other employment or financial relationships (including seeking or negotiating for prospective employment or business); and

+ (iii) Gifts, including travel.

+ (2) For example, financial interests referred to in paragraph (1) of this definition may arise from-

+ (i) Compensation, including wages, salaries, commissions, professional fees, or fees for business referrals;

+ (ii) Consulting relationships (including commercial and professional consulting and service arrangements, scientific and technical advisory board memberships, or serving as an expert witness in litigation);

+ (iii) Services provided in exchange for honorariums or travel expense reimbursements;

+ (iv) Research funding or other forms of research support;

+ (v) Investment in the form of stock or bond ownership or partnership interest (excluding diversified mutual fund investments);

+ (vi) Real estate investments;

+ (vii) Patents, copyrights, and other intellectual property interests; or

+ (viii) Business ownership and investment interests.

may be used to report contracts in lieu of the contractor's actual

unique entity identifier only for—

− (i) Contract actions

− valued at or below $30,000 that are awarded to a contractor that

− is-

+ (i) Contract actions valued at or below $40,000 that are awarded to a contractor that is-

(A) A student;

(B) A dependent

(5)

Contracts awarded without providing for full and open competition due to unusual or compelling urgency (see 6.302-2);

− (6)

− Contract actions at or below $30,000 awarded to foreign vendors for work performed outside the United States, if it is impractical to obtain SAM registration; and

+ (6) Contract actions at or below $40,000 awarded to foreign vendors for work performed outside the United States, if it is impractical to obtain SAM registration; and

(7)

Micro-purchases that do not use the electronic funds transfer (EFT) method for payment and are not required to be reported (see subpart 4.6).

4.1401 Applicability.

− (a)

− This subpart applies to all contracts with a value of $30,000 or more. Nothing in this subpart requires the disclosure of classified information.

+ (a) This subpart applies to all contracts with a value of $40,000 or more. Nothing in this subpart requires the disclosure of classified information.

(b)

Reporting of subcontract information will be limited to the first-tier subcontractor.

4.1403 Contract clause.

− (a)

− Except as provided in paragraph (b) of this section, the contracting officer shall insert the clause at 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, in all solicitations and contracts of $30,000 or more.

+ (a) Except as provided in paragraph (b) of this section, the contracting officer shall insert the clause at 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, in all solicitations and contracts of $40,000 or more.

(b)

The clause is not prescribed for contracts that are not required to be reported in the Federal Procurement Data System (FPDS) (see subpart 4.6).

(1)

For proposed contract actions expected to exceed $25,000, by synopsizing in the GPE (see 5.201).

− (2)

− For proposed contract actions expected to exceed $15,000, but not expected to exceed $25,000, by displaying in a public place, or by any appropriate electronic means, an unclassified notice of the solicitation or a copy of the solicitation satisfying the requirements of 5.207(c). The notice must include a statement that all responsible sources may submit a response which, if timely received, must be considered by the agency. The information 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.

+ (2) For proposed contract actions expected to exceed $20,000, but not expected to exceed $25,000, by displaying in a public place, or by any appropriate electronic means, an unclassified notice of the solicitation or a copy of the solicitation satisfying the requirements of 5.207(c). The notice must include a statement that all responsible sources may submit a response which, if timely received, must be considered by the agency. The information 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.

(i)

If solicitations are posted instead of a notice, the contracting officer may employ various methods of satisfying the requirements of 5.207(c). 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.

for which the total fee (including phases and options) is expected

to exceed $25,000.

− (2)

− When the

− total fee is expected to exceed $15,000 but not exceed $25,000,

− the contracting officer must comply with 5.101(a)(2). When the

− proposed contract action is not required to be synopsized under

− paragraph (d)(1) of this section, the contracting officer must display

− a notice of the solicitation or a copy of the solicitation in a

− public place at the contracting office. Other optional publicizing

− methods are authorized in accordance with 5.101(b).

+ (2) When the total fee is expected to exceed $20,000 but not exceed $25,000, the contracting officer must comply with 5.101(a)(2). When the proposed contract action is not required to be synopsized under paragraph (d)(1) of this section, the contracting officer must display a notice of the solicitation or a copy of the solicitation in a public place at the contracting office. Other optional publicizing methods are authorized in accordance with 5.101(b).

(e)

Public-private

(1)

A contractor awarded a contract exceeding the simplified acquisition threshold that is likely to result in the award of any subcontracts.

− (2)

− A subcontractor or supplier, at any tier, under a contract exceeding the simplified acquisition threshold, that has a subcontracting opportunity exceeding $15,000.

+ (2) A subcontractor or supplier, at any tier, under a contract exceeding the simplified acquisition threshold, that has a subcontracting opportunity exceeding $20,000.

(b)

The notices must describe-

5.303 Announcement of contract awards.

(a)

− Public announcement. Contracting officers shall make information available on awards over

− $4.5 million

− (unless another dollar amount is specified in agency acquisition regulations) in sufficient time for the agency concerned to announce it by 5 p.m. Washington, DC, time on the day of award. Agencies shall not release information on awards before the public release time of 5 p.m. Washington, DC time. Contracts excluded from this reporting requirement include-

+ Public announcement. Contracting officers shall make information available on awards over $5.5 million (unless another dollar amount is specified in agency acquisition regulations) in sufficient time for the agency concerned to announce it by 5 p.m. Washington, DC, time on the day of award. Agencies shall not release information on awards before the public release time of 5 p.m. Washington, DC time. Contracts excluded from this reporting requirement include-

(1)

Those placed with the Small Business Administration under Section 8(a) of the Small Business Act;

(a)

To fulfill statutory requirements relating to section 8(a) of the Small Business Act, as amended by Public Law 100-656, contracting officers may limit competition to eligible 8(a) participants (see subpart 19.8).

− (b)

− No separate justification or determination and findings is required under this part to limit competition to eligible 8(a) participants. (But see 6.302-5 and 6.303-1 for sole source 8(a) awards over

− $25 million.)

+ (b) No separate justification or determination and findings is required under this part to limit competition to eligible 8(a) participants. (But see 6.302-5 and 6.303-1 for sole source 8(a) awards over $30 million.)

Printing and Binding 44 U.S.C. 501-504,

1121 (see subpart 8.8).

− (4) Sole source

− awards under the 8(a) Program (15 U.S.C. 637), but see 6.303 for requirements

− for justification and approval of sole-source 8(a) awards over $25

− million. (See subpart 19.8).

+ (4) Sole source awards under the 8(a) Program (15 U.S.C. 637), but see 6.303 for requirements for justification and approval of sole-source 8(a) awards over $30 million. (See subpart 19.8).

(5) Sole source

awards under the HUBZone Act of 1997-15 U.S.C. 657a (see 19.1306).

(3)

Obtains the approval required by 6.304.

− (b)

− The contracting officer shall not award a sole-source contract under the 8(a) authority (15 U.S.C. 637(a)) for an amount exceeding

− $25 million

− unless-

+ (b) The contracting officer shall not award a sole-source contract under the 8(a) authority (15 U.S.C. 637(a)) for an amount exceeding $30 million unless-

(1)

The contracting officer justifies the use of a sole-source contract in writing in accordance with 6.303-2;

(a)

Each justification shall contain sufficient facts and rationale to justify the use of the specific authority cited.

− (b)

− As a minimum, each justification, except those for sole-source 8(a) contracts over

− $25 million

− (see paragraph (d) of this section), shall include the following information:

+ (b) As a minimum, each justification, except those for sole-source 8(a) contracts over $30 million (see paragraph (d) of this section), shall include the following information:

(1)

Identification of the agency and the contracting activity, and specific identification of the document as a "Justification for other than full and open competition."

6.304 Approval of the justification.

(a)

− Except for paragraph (b) of this section, the justification for other than full and open competition shall be approved in writing-

+ Except for paragraph (b) of this section, the justification for other than full and open competition shall be approved in writing—

(1)

− For a proposed contract not exceeding

− $750,000,

− the contracting officer’s certification required by 6.303-2(b)(12) will serve as approval unless a higher approving level is established in agency procedures.

+ For a proposed contract not exceeding $900,000, the contracting officer's certification required by 6.303-2(b)(12) will serve as approval unless a higher approving level is established in agency procedures.

(2)

− For a proposed contract over

− $750,000

− but not exceeding $15 million, by the advocate for competition for the procuring activity designated pursuant to 6.501 or an official described in paragraph (a)(3) or (4)of this section. This authority is not delegable.

+ For a proposed contract over $900,000 but not exceeding $20 million, by the advocate for competition for the procuring activity designated pursuant to 6.501 or an official described in paragraph (a)(3) or (4) of this section. This authority is not delegable.

(3)

− For a proposed contract over

− $15 million,

− but not exceeding $75 million, or, for DoD, NASA, and the Coast Guard, not exceeding $100 million, by the head of the procuring activity, or a designee who-

+ For a proposed contract over $20 million, but not exceeding $90 million, or, for DoD, NASA, and the Coast Guard, not exceeding $150 million, by the head of the procuring activity, or a designee who—

(i)

If a member of the armed forces, is a general or flag officer; or

services, and competition in areas such as acquisition training

and research; and

− (vii) Initiatives

− that ensure task and delivery orders over $1,000,000 issued under

− multiple award contracts are properly planned, issued, and comply

− with 8.405 and 16.505.

+ (vii) Initiatives that ensure task and delivery orders over $1.5 million issued under multiple award contracts are properly planned, issued, and comply with 8.405 and 16.505.

(3) Recommend

goals and plans for increasing competition on a fiscal year basis

(1)

The contracting officer, when placing an order or establishing a BPA, is responsible for applying the regulatory and statutory requirements applicable to the agency for which the order is placed or the BPA is established. The requiring agency shall provide the information on the applicable regulatory and statutory requirements to the contracting officer responsible for placing the order.

− (2)

− For orders over

− $600,000,

− see subpart 17.5 for additional requirements for interagency acquisitions.

+ (2) For orders over $750,000, see subpart 17.5 for additional requirements for interagency acquisitions.

(c)

Acquisition planning. Orders placed under a Federal Supply Schedule contract-

(i)

The ordering activity contracting officer shall, to the maximum extent practicable, give preference to establishing multiple-award BPAs, rather than establishing a single-award BPA.

− (ii)

− No single-award BPA with an estimated value exceeding

− $100 million

− (including any options), may be awarded unless the head of the agency determines in writing that-

+ (ii) No single-award BPA with an estimated value exceeding $150 million (including any options), may be awarded unless the head of the agency determines in writing that-

(A)

The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work;

that applies.

(d)

− Justification

− approvals.

− (1) For a proposed order or BPA with

− an estimated value exceeding the simplified acquisition threshold,

− but not exceeding $750,000, the ordering activity contracting officer’s

− certification that the justification is accurate and complete to

− the best of the ordering activity contracting officer’s knowledge

− and belief will serve as approval, unless a higher approval level

− is established in accordance with agency procedures.

− (2) For a proposed

− order or BPA with an estimated value exceeding $750,000, but not

− exceeding $15 million, the justification must be approved by the

− advocate for competition of the activity placing the order, or by

− an official named in paragraph (d)(3) or (4) of this section. This

− authority is not delegable.

− (3) For a proposed

− order or BPA with an estimated value exceeding $15 million, but

− not exceeding $75 million (or, for DoD, NASA, and the Coast Guard,

− not exceeding $100 million), the justification must be approved

− by-

− (i) The head of the procuring activity

− placing the order;

− (ii) A designee

− who-

− (A) If a member of the armed forces,

− is a general or flag officer; or

− (B) If a civilian,

− is serving in a position in a grade above GS-15 under the General

− Schedule (or in a comparable or higher position under another schedule);

− or

− (iii) An official

− named in paragraph (d)(4) of this section.

− (4) For a proposed

− order or BPA with an estimated value exceeding $75 million (or,

− for DoD, NASA, and the Coast Guard, over $100 million), the justification

− must be approved by the senior procurement executive of the agency

− placing the order. This authority is not delegable, except in the

− case of the Under Secretary of Defense for Acquisition and Sustainment,

− acting as the senior procurement executive for the Department of

− Defense.

+ Justification approvals.

+ (1)

+ For a proposed order or BPA with an estimated value exceeding the simplified acquisition threshold, but not exceeding $900,000, the ordering activity contracting officer's certification that the justification is accurate and complete to the best of the ordering activity contracting officer's knowledge and belief will serve as approval, unless a higher approval level is established in accordance with agency procedures.

+ (2)

+ For a proposed order or BPA with an estimated value exceeding $900,000, but not exceeding $20 million, the justification must be approved by the advocate for competition of the activity placing the order, or by an official named in paragraph (d)(3) or (4) of this section. This authority is not delegable.

+ (3)

+ For a proposed order or BPA with an estimated value exceeding $20 million, but not exceeding $90 million (or, for DoD, NASA, and the Coast Guard, not exceeding $150 million), the justification must be approved by—

+ (i)

+ The head of the procuring activity placing the order;

+ (ii)

+ A designee who—

+ (A)

+ If a member of the armed forces, is a general or flag officer; or

+ (B)

+ If a civilian, is serving in a position in a grade above GS-15 under the General Schedule (or in a comparable or higher position under another schedule); or

+ (iii)

+ An official named in paragraph (d)(4) of this section.

+ (4)

+ For a proposed order or BPA with an estimated value exceeding $90 million (or, for DoD, NASA, and the Coast Guard, over $150 million), the justification must be approved by the senior procurement executive of the agency placing the order. This authority is not delegable, except in the case of the Under Secretary of Defense for Acquisition and Sustainment, acting as the senior procurement executive for the Department of Defense.

to the contracting officer (but see 9.405);

and

− (2)

− Notify,

− prior to proceeding with award, in accordance with agency procedures

− (see 9.406-3(a) and 9.407-3(a)), the agency

− official responsible for initiating debarment or suspension action,

− where an offeror indicates the existence of an indictment, charge,

− conviction, or civil judgment, or Federal tax delinquency in an

− amount that exceeds $10,000.

+ (2) Notify, prior to proceeding with award, in accordance with agency procedures (see 9.406-3(a) and 9.407-3(a)), the agency official responsible for initiating debarment or suspension action, where an offeror indicates the existence of an indictment, charge, conviction, or civil judgment, or Federal tax delinquency in an amount that exceeds $15,000.

(b)

The provision

(a)

The contracting officer shall insert the provision at 52.209-5, Certification Regarding Responsibility Matters, in solicitations where the contract value is expected to exceed the simplified acquisition threshold.

− (b)

− The contracting officer shall insert the provision at 52.209-7, Information Regarding Responsibility Matters, in solicitations where the resultant contract value is expected to exceed

− $600,000.

+ (b) The contracting officer shall insert the provision at 52.209-7, Information Regarding Responsibility Matters, in solicitations where the resultant contract value is expected to exceed $750,000.

(c)

The contracting officer shall insert the clause at 52.209-9, Updates of Publicly Available Information Regarding Responsibility Matters-

− (1)

− In solicitations where the resultant contract value is expected to exceed

− $600,000;

− and

+ (1) In solicitations where the resultant contract value is expected to exceed $750,000; and

(2)

In contracts in which the offeror checked "has" in paragraph (b) of the provision at 52.209-7.

(d)

The contracting officer shall insert the provision 52.209-11, Representation by Corporations Regarding Delinquent Tax Liability or a Felony Conviction under any Federal Law, in all solicitations.

− (e)

− For agencies receiving funds subject to section 523 of Division B of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235) and similar provisions in subsequent appropriations acts, the contracting officer shall insert the provision 52.209-12, Certification Regarding Tax Matters, in solicitations for which the resultant contract (including options) may have a value greater than

− $5.5 million.

− Division B of the Consolidated and Continuing Further Appropriations Act, 2015 appropriates funds for the following agencies: the Department of Commerce, the Department of Justice, the National Aeronautics and Space Administration, the Office of Science and Technology Policy, the National Science Foundation, the Commission on Civil Rights, the Equal Employment Opportunity Commission, the U.S. International Trade Commission, the Legal Services Corporation, the Marine Mammal Commission, the Office of the United States Trade Representative, and the State Justice Institute.

+ (e) For agencies receiving funds subject to section 523 of Division B of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235) and similar provisions in subsequent appropriations acts, the contracting officer shall insert the provision 52.209-12, Certification Regarding Tax Matters, in solicitations for which the resultant contract (including options) may have a value greater than $7 million. Division B of the Consolidated and Continuing Further Appropriations Act, 2015 appropriates funds for the following agencies: the Department of Commerce, the Department of Justice, the National Aeronautics and Space Administration, the Office of Science and Technology Policy, the National Science Foundation, the Commission on Civil Rights, the Equal Employment Opportunity Commission, the U.S. International Trade Commission, the Legal Services Corporation, the Marine Mammal Commission, the Office of the United States Trade Representative, and the State Justice Institute.

9.405-2 Restrictions on subcontracting.

(a) When a contractor debarred, suspended, proposed for debarment, or voluntarily excluded, is proposed as a subcontractor for any subcontract subject to Government consent (see subpart 44.2), contracting officers shall not consent to subcontracts with such contractors unless the agency head states in writing the compelling reasons for this approval action. (See 9.405 concerning declarations of ineligibility affecting sub-contracting.)

− (b) The Government suspends or debars contractors to protect the Government’s interests. Contractors are prohibited from entering into any subcontract in excess of $35,000, other than a subcontract for a commercially available off-the-shelf item, with a contractor that has been debarred, suspended, proposed for debarment, or voluntarily excluded, unless there is a compelling reason to do so. If a contractor intends to enter into a subcontract in excess of $35,000, other than a subcontract for a commercially available off-the-shelf item, with a party that is debarred, suspended, proposed for debarment, or voluntarily excluded, as evidenced by the party's having an active exclusion record in SAM (see 9.404), a corporate officer or designee of the contractor is required by operation of the clause at 52.209-6, Protecting the Government’s Interest when Subcontracting with Contractors Debarred, Suspended, Proposed for Debarment, or Voluntarily Excluded, to notify the contracting officer, in writing, before entering into such subcontract. For contracts for the acquisition of commercial products, the notification requirement applies only for first-tier subcontracts. For all other contracts, the notification requirement applies to subcontracts at any tier. The notice must provide the following:

+ (b) The Government suspends or debars contractors to protect the Government’s interests. Contractors are prohibited from entering into any subcontract in excess of $45,000, other than a subcontract for a commercially available off-the-shelf item, with a contractor that has been debarred, suspended, proposed for debarment, or voluntarily excluded, unless there is a compelling reason to do so. If a contractor intends to enter into a subcontract in excess of $45,000, other than a subcontract for a commercially available off-the-shelf item, with a party that is debarred, suspended, proposed for debarment, or voluntarily excluded, as evidenced by the party's having an active exclusion record in SAM (see 9.404), a corporate officer or designee of the contractor is required by operation of the clause at 52.209-6, Protecting the Government’s Interest when Subcontracting with Contractors Debarred, Suspended, Proposed for Debarment, or Voluntarily Excluded, to notify the contracting officer, in writing, before entering into such subcontract. For contracts for the acquisition of commercial products, the notification requirement applies only for first-tier subcontracts. For all other contracts, the notification requirement applies to subcontracts at any tier. The notice must provide the following:

(1) The

name of the subcontractor;

9.409 Contract clause.

− The contracting officer shall insert the clause at 52.209-6, Protecting the Government's Interest when Subcontracting with Contractors Debarred, Suspended, Proposed for Debarment, or Voluntarily Excluded, in solicitations and contracts where the contract value exceeds $35,000.

+ The contracting officer shall insert the clause at 52.209-6, Protecting the Government's Interest when Subcontracting with Contractors Debarred, Suspended, Proposed for Debarment, or Voluntarily Excluded, in solicitations and contracts where the contract value exceeds $45,000.

(3) Obtained approval of the agreement by either-

(i) The Small Business Administration (SBA) under section 9 or 11 of the Small Business Act (15 U.S.C.638 or 640) (see 13 CFR125); or

− (ii) A designated official under PartV of Executive Order 10480, August 14,1953 (18 FR4939, August 20,1953) and section 708 of the Defense Production Act of1950 (50 U.S.C. App.2158).

+ (ii) A designated official under Part V of Executive Order 10480, August 14,1953 (18 FR4939, August 20,1953) and section 708 of the Defense Production Act of1950 (50 U.S.C. App.2158).

may contact the appropriate Small Business Administration procurement

center representative (see 7.107-5(a)).

− (d)

− See 10.003 for the requirement

− for a prime contractor to perform market research in contracts in

− excess of $6 million, other than contracts for the acquisition of

− commercial products or commercial services (section 826 of Pub.

− L. 110-181).

+ (d) See 10.003 for the requirement for a prime contractor to perform market research in contracts in excess of $7.5 million, other than contracts for the acquisition of commercial products or commercial services (section 826 of Pub. L. 110-181).

Contract

clause.

− The

− contracting officer shall insert the clause at 52.210-1, Market Research,

− in solicitations and contracts over $6 million, other than solicitations

− and contracts for the acquisition of commercial products or commercial

− services.

+ The contracting officer shall insert the clause at 52.210-1, Market Research, in solicitations and contracts over $7.5 million, other than solicitations and contracts for the acquisition of commercial products or commercial services.

or radiological attack, as an acquisition of commercial products or

commercial services.

− (2) A contract

− in an amount greater than $20 million that is awarded on a sole

− source basis for a product or

− service treated as a commercial

− product or commercial service under paragraph (f)(1) of this

− section but does not meet the definition of a commercial product or commercial

− service as defined at FAR 2.101 shall

− not be exempt from—

+ (2)

+ A contract in an amount greater than $25 million that is awarded on a sole source basis for a product or service treated as a commercial product or commercial service under paragraph (f)(1) of this section but does not meet the definition of a commercial product or commercial service at 2.101 shall not be exempt from—

(i) Cost accounting standards (see subpart 30.2); or

(ii) Certified

12.203 Procedures for solicitation,

evaluation, and award.

− (a) Contracting

− officers shall use the policies unique to the acquisition of commercial products and

− commercial services prescribed in this part in conjunction

− with the policies and procedures for solicitation, evaluation and

− award prescribed in part 13,

− Simplified Acquisition Procedures; part 14 Sealed Bidding;

− or part 15, Contracting

− by Negotiation, as appropriate for the particular acquisition. The

− contracting officer may use the streamlined procedure for soliciting

− offers for commercial product

− or commercial service prescribed in 12.603. For acquisitions

− of commercial products

− or commercial services exceeding the simplified acquisition

− threshold but not exceeding $7.5 million ($15 million for acquisitions

− as described in 13.500 (c)), including

− options, contracting activities may use any of the simplified procedures

− authorized by subpart 13.5.

+ (a) Contracting officers shall use the policies unique to the acquisition of commercial products and commercial services prescribed in this part in conjunction with the policies and procedures for solicitation, evaluation and award prescribed in part 13, Simplified Acquisition Procedures; part 14 Sealed Bidding; or part 15, Contracting by Negotiation, as appropriate for the particular acquisition. The contracting officer may use the streamlined procedure for soliciting offers for commercial product or commercial service prescribed in 12.603. For acquisitions of commercial products or commercial services exceeding the simplified acquisition threshold but not exceeding $9 million ($15 million for acquisitions as described in 13.500 (c)), including options, contracting activities may use any of the simplified procedures authorized by subpart 13.5.

(b) Contracting

officers shall ensure the criteria at 15.101-2(c)

13.000 Scope of part.

− This part prescribes policies and procedures

− for the acquisition of supplies and services, including construction,

− research and development, commercial

− products, and commercial services, the aggregate amount of

− which does not exceed the simplified acquisition threshold (see 2.101). subpart 13.5 provides

− special authority for acquisitions of commercial products

− and commercial services exceeding the simplified acquisition

− threshold but not exceeding $7.5 million ($15 million for acquisitions

− as described in 13.500 (c)), including

− options. See part 12 for policies

− applicable to the acquisition of

− commercial products and commercial services exceeding the micro-purchase

− threshold. See 36.602-5 for

− simplified procedures to be used when acquiring architect-engineer

− services.

+ This part prescribes policies and procedures for the acquisition of supplies and services, including construction, research and development, commercial products, and commercial services, the aggregate amount of which does not exceed the simplified acquisition threshold (see 2.101). subpart 13.5 provides special authority for acquisitions of commercial products and commercial services exceeding the simplified acquisition threshold but not exceeding $9 million ($15 million for acquisitions as described in 13.500 (c)), including options. See part 12 for policies applicable to the acquisition of commercial products and commercial services exceeding the micro-purchase threshold. See 36.602-5 for simplified procedures to be used when acquiring architect-engineer services.

(i) The simplified

acquisition threshold; or

− (ii) $7.5 million

− ($15 million for acquisitions as described in 13.500(c)), including

− options, for acquisitions of commercial products

− or commercial services using subpart

− 13.5.

+ (ii)

+ $9 million ($15 million for acquisitions as described in 13.500(c)), including options, for acquisitions of commercial products or commercial services using subpart 13.5.

(2) Do not

break down requirements aggregating more than the simplified acquisition

For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq; or to support response to an emergency or major disaster (42 U.S.C. 5122), the micro-purchase threshold is—

(i)

− $20,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and

+ $25,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and

(ii)

− $35,000

− in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.

+ $40,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States.

(2)

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 cyber, nuclear, biological, chemical, or radiological attack; international disaster assistance; or an emergency or major disaster.

However, agency regulations may establish a higher threshold consistent

with the following:

− (1) The simplified acquisition threshold

− and the $7.5 million limitation for individual purchases ($15 million

− for purchases entered into under the authority of 12.102(f)(1)) do not apply

− to BPAs established in accordance with 13.303-2(c)(3).

− (2) The limitation

− for individual purchases for commercial

− products and commercial services acquisitions conducted under

− subpart 13.5

− is

− $7.5 million ($15 million for acquisitions as described in 13.500(c)).

+ (1) The simplified acquisition threshold and the $9 million limitation for individual purchases ($15 million for purchases entered into under the authority of 12.102(f)(1)) do not apply to BPAs established in accordance with 13.303-2(c)(3).

+ (2)

+ The limitation for individual purchases for commercial products and commercial services acquisitions conducted under subpart 13.5 is $9 million ($15 million for acquisitions as described in 13.500(c)).

(c) The existence

of a BPA does not justify purchasing from only one source or avoiding

13.402 Conditions for use.

If the conditions in paragraphs (a) through (f) of this section are present, the fast payment procedure may be used, provided that use of the procedure is consistent with the other conditions of the purchase. The conditions for use of the fast payment procedure are as follows:

− (a)

− Individual purchasing instruments do not exceed $35,000, except that executive agencies may permit higher dollar limitations for specified activities or items on a case-by-case basis.

+ (a) Individual purchasing instruments do not exceed $45,000, except that executive agencies may permit higher dollar limitations for specified activities or items on a case-by-case basis.

(b)

Deliveries of supplies are to occur at locations where there is both a geographical separation and a lack of adequate communications facilities between Government receiving and disbursing activities that will make it impractical to make timely payment based on evidence of Government acceptance.

− (c)

− Titleto the supplies passes to the Government-

+ (c) Title to the supplies passes to the Government-

(1)

Upon delivery to a post office or common carrier for mailing or shipment to destination; or

13.500 General.

− (a) This subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million ($15 million for acquisitions as described in 13.500(c)), including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial products or commercial services. Contracting officers may use any simplified acquisition procedure in this part, subject to any specific dollar limitation applicable to the particular procedure. The purpose of these simplified procedures is to vest contracting officers with additional procedural discretion and flexibility, so that commercial acquisitions in this dollar range may be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes burden and administrative costs for both the Government and industry (10 U.S.C. 3205-3208 and chapter 241 and 41 U.S.C.3305, 3306, and chapter 37, Awarding of Contracts).

+ (a) This subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $9 million ($15 million for acquisitions as described in 13.500(c)), including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial products or commercial services. Contracting officers may use any simplified acquisition procedure in this part, subject to any specific dollar limitation applicable to the particular procedure. The purpose of these simplified procedures is to vest contracting officers with additional procedural discretion and flexibility, so that commercial acquisitions in this dollar range may be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes burden and administrative costs for both the Government and industry (10 U.S.C. 3205-3208 and chapter 241 and 41 U.S.C.3305, 3306, and chapter 37, Awarding of Contracts).

(b) When acquiring commercial products or

commercial services using the procedures in this part, the

Justifications and approvals are required under this subpart for sole-source (including brand-name) acquisitions or portions of an acquisition requiring a brand-name. If the justification is to cover only the portion of the acquisition which is brand-name, then it should so state; the approval level requirements will then only apply to that portion.

(i)

− For a proposed contract exceeding the simplified acquisition threshold, but not exceeding

− $750,000,

− the contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief will serve as approval, unless a higher approval level is established in accordance with agency procedures.

+ For a proposed contract exceeding the simplified acquisition threshold, but not exceeding $900,000, the contracting officer's certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief will serve as approval, unless a higher approval level is established in accordance with agency procedures.

(ii)

− For a proposed contract exceeding

− $750,000

− or the thresholds in paragraph (1) of the definition of simplified acquisition threshold in 2.101, but not exceeding $15 million, the advocate for competition for the procuring activity, designated pursuant to 6.501; or an official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

+ For a proposed contract exceeding $900,000 or the thresholds in paragraph (1) of the definition of simplified acquisition threshold in 2.101, but not exceeding $20 million, the advocate for competition for the procuring activity, designated pursuant to 6.501; or an official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

(iii)

− For a proposed contract exceeding

− $15 million

− but not exceeding $75 million or, for DoD, NASA, and the Coast Guard, not exceeding $100 million, the head of the procuring activity or the official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

+ For a proposed contract exceeding $20 million but not exceeding $90 million or, for DoD, NASA, and the Coast Guard, not exceeding $150 million, the head of the procuring activity or the official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

(iv)

− For a proposed contract exceeding

− $75 million

− or, for DoD, NASA, and the Coast Guard, $100 million, the official described in 6.304(a)(4) must approve the justification and approval. This authority is not delegable except as provided in 6.304(a)(4).

+ For a proposed contract exceeding $90 million or, for DoD, NASA, and the Coast Guard, $150 million, the official described in 6.304(a)(4) must approve the justification and approval. This authority is not delegable except as provided in 6.304(a)(4).

(b)

Contract file documentation. The contract file must include-

5 percent of the total price of the contract at the time of contract

award.

− (iv) Any acquisition for other than commercial

− products or services treated as commercial products or commercial services at 12.102(f)(1), except sole

− source contracts greater than $20 million, is exempt from the requirements for

− certified cost or pricing data (41 U.S.C. 1903).

+ (iv) Any acquisition for other than commercial products or services treated as commercial products or commercial services at 12.102(f)(1), except sole source contracts greater than $25 million, is exempt from the requirements for certified cost or pricing data (41 U.S.C. 1903).

(4)

Waivers.

Requiring certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).

(a)

− (1)

− The contracting officer shall obtain certified cost or pricing data only if the contracting officer concludes that none of the exceptions in 15.403-1(b) applies. However, if the contracting officer has reason to believe exceptional circumstances exist and has sufficient data available to determine a fair and reasonable price, then the contracting officer should consider requesting a waiver under the exception at 15.403-1(b)(4). The threshold for obtaining certified cost or pricing data is $750,000 for prime contracts awarded before July 1, 2018, and $2 million for prime contracts awarded on or after July 1, 2018.When a clause refers to this threshold, and if the threshold is adjusted for inflation pursuant to 1.109(a), then pursuant to 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. Unless an exception applies, certified cost or pricing data are required before accomplishing any of the following actions expected to exceed the current threshold or, in the case of existing contracts, the threshold specified in the contract:

+ (1) The contracting officer shall obtain certified cost or pricing data only if the contracting officer concludes that none of the exceptions in 15.403-1(b) applies. However, if the contracting officer has reason to believe exceptional circumstances exist and has sufficient data available to determine a fair and reasonable price, then the contracting officer should consider requesting a waiver under the exception at 15.403-1(b)(4). The threshold for obtaining certified cost or pricing data is $950,000 for prime contracts awarded before July 1, 2018, and $2.5 million for prime contracts awarded on or after July 1, 2018.When a clause refers to this threshold, and if the threshold is adjusted for inflation pursuant to 1.109(a), then pursuant to 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. Unless an exception applies, certified cost or pricing data are required before accomplishing any of the following actions expected to exceed the current threshold or, in the case of existing contracts, the threshold specified in the contract:

(i)

The award of any negotiated contract (except for undefinitized actions such as letter contracts).

The contractor shall submit, or cause to be submitted by the subcontractor(s), certified cost or pricing data to the Government for subcontracts that are the lower of either-

(i)

− $15 million

− or more; or

+ $20 million or more; or

(ii)

Both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor’s proposed price, unless the contracting officer believes such submission is unnecessary.

(c) Acquisitions

requiring make-or-buy programs.

− (1) Contracting

− officers may require prospective contractors to submit make-or-buy

− program plans for negotiated acquisitions requiring certified cost

− or pricing data whose estimated value is $15 million or more, except

− when the proposed contract is for research or development and, if

− prototypes or hardware are involved, no significant follow-on production

− is anticipated.

− (2) Contracting

− officers may require prospective contractors to submit make-or-buy

− programs for negotiated acquisitions whose estimated value is under

− $15 million only if the contracting officer-

+ (1) Contracting officers may require prospective contractors to submit make-or-buy program plans for negotiated acquisitions requiring certified cost or pricing data whose estimated value is $20 million or more, except when the proposed contract is for research or development and, if prototypes or hardware are involved, no significant follow-on production is anticipated.

+ (2) Contracting officers may require prospective contractors to submit make-or-buy programs for negotiated acquisitions whose estimated value is under $20 million only if the contracting officer-

(i) Determines

that the information is necessary; and

commercial work of the division, subsidiary, or affiliate of the

contractor, explain the pricing method (see FAR 31.205-26(e)).

− (2) All Other. Obtain certified cost

− or pricing data from prospective sources for those acquisitions

− (such as subcontracts, purchase orders, material order, etc.) exceeding

− the threshold set forth in FAR 15.403-4 and

− not otherwise exempt, in accordance with FAR 15.403-1(b) ( i.e.,

− adequate price competition, commercial

− products or commercial services, prices set by law or regulation

− or waiver). Also provide data showing the basis for establishing

− source and reasonableness of price. In addition, provide a summary

− of your cost analysis and a copy of certified cost or pricing data

− submitted by the prospective source in support of each subcontract,

− or purchase order that is the lower of either $15 million or more,

− or both more than the pertinent certified cost or pricing data threshold

− and more than 10 percent of the prime contractor's proposed price.

− Also submit any information reasonably required to explain your

− estimating process (including the judgmental factors applied and

− the mathematical or other methods used in the estimate, including

− those used in projecting from known data, and the nature and amount

− of any contingencies included in the price). The Contracting Officer

− may require you to submit cost or pricing data in support of proposals

− in lower amounts. Subcontractor certified cost or pricing data must be

− accurate, complete and current as of the date of final price agreement,

− or an earlier date agreed upon by the parties, given on the prime

− contractor’s Certificate of Current Cost or Pricing Data. The prime

− contractor is responsible for updating a prospective subcontractor’s

− data. For standard commercial

− products fabricated by the offeror that are generally stocked

− in inventory, provide a separate cost breakdown, if priced based

− on cost. For interorganizational transfers priced at cost, provide

− a separate breakdown of cost elements. Analyze the certified cost

− or pricing data and submit the results of your analysis of the prospective

− source’s proposal.When submission of a prospective source’s certified

− cost or pricing data is required as described in this paragraph,

− it must be included as part of your own certified cost or pricing

− data. You must also submit any data other than certified cost or

− pricing data obtained from a subcontractor, either actually or by

− specific identification, along with the results of any analysis

− performed on that data.

+ (2) All Other. Obtain certified cost or pricing data from prospective sources for those acquisitions (such as subcontracts, purchase orders, material order, etc.) exceeding the threshold set forth in FAR 15.403-4 and not otherwise exempt, in accordance with FAR 15.403-1(b) ( i.e., adequate price competition, commercial products or commercial services, prices set by law or regulation or waiver). Also provide data showing the basis for establishing source and reasonableness of price. In addition, provide a summary of your cost analysis and a copy of certified cost or pricing data submitted by the prospective source in support of each subcontract, or purchase order that is the lower of either $20 million or more, or both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor's proposed price. Also submit any information reasonably required to explain your estimating process (including the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price). The Contracting Officer may require you to submit cost or pricing data in support of proposals in lower amounts. Subcontractor certified cost or pricing data must be accurate, complete and current as of the date of final price agreement, or an earlier date agreed upon by the parties, given on the prime contractor’s Certificate of Current Cost or Pricing Data. The prime contractor is responsible for updating a prospective subcontractor’s data. For standard commercial products fabricated by the offeror that are generally stocked in inventory, provide a separate cost breakdown, if priced based on cost. For interorganizational transfers priced at cost, provide a separate breakdown of cost elements. Analyze the certified cost or pricing data and submit the results of your analysis of the prospective source’s proposal.When submission of a prospective source’s certified cost or pricing data is required as described in this paragraph, it must be included as part of your own certified cost or pricing data. You must also submit any data other than certified cost or pricing data obtained from a subcontractor, either actually or by specific identification, along with the results of any analysis performed on that data.

B. Direct

Labor. Provide a time-phased (e.g., monthly, quarterly,

that designated Government activities will need during a definite

period.

− (2) No requirements

− contract in an amount estimated to exceed $100 million (including

− all options) may be awarded to a single source unless a determination

− is executed in accordance with 16.504(c)(1)(ii)(D).

+ (2) No requirements contract in an amount estimated to exceed $150 million (including all options) may be awarded to a single source unless a determination is executed in accordance with 16.504(c)(1)(ii)(D).

(c)

Government

for multiple awards (see subpart 1.7).

(D)

− (1) No task or delivery order contract

− in an amount estimated to exceed $100 million (including all options)

− may be awarded to a single source unless the head of the agency

− determines in writing that-

+ (1) No task or delivery order contract in an amount estimated to exceed $150 million (including all options) may be awarded to a single source unless the head of the agency determines in writing that-

(i) The task or delivery orders expected

under the contract are so integrally related that only a single

for a brand-name is determined.

(iii)

− (A) For

− an order in excess of $30,000, the contracting officer shall—

+ (A)

+ For an order in excess of $40,000, the contracting officer shall—

(1) Post the justification

and supporting documentation on the agency website used (if any)

Indefinite Quantity, in solicitations and contracts when an indefinite-quantity

contract is contemplated.

− (f) Insert

− the provision at 52.216-27,

− Single or Multiple Awards, in solicitations for indefinite-quantity

− contracts that may result in multiple contract awards. Modify the

− provision to specify the estimated number of awards. Do not use

− this provision for advisory and assistance services contracts that

− exceed 3 years and $15 million (including all options).

− (g) Insert

− the provision at 52.216-28,

− Multiple Awards for Advisory and Assistance Services, in solicitations

− for task-order contracts for advisory and assistance services that

− exceed 3 years and $15 million (including all options), unless a determination

− has been made under 16.504(c)(2)(i)(A).

− Modify the provision to specify the estimated number of awards.

− (h)

− See

− 10.001(d) for insertion

− of the clause at 52.210-1,

− Market Research, when the contract is over $6 million for the procurement

− of items other than commercial

− products or commercial services.

+ (f) Insert the provision at 52.216-27, Single or Multiple Awards, in solicitations for indefinite-quantity contracts that may result in multiple contract awards. Modify the provision to specify the estimated number of awards. Do not use this provision for advisory and assistance services contracts that exceed 3 years and $20 million (including all options).

+ (g) Insert the provision at 52.216-28, Multiple Awards for Advisory and Assistance Services, in solicitations for task-order contracts for advisory and assistance services that exceed 3 years and $20 million (including all options), unless a determination has been made under 16.504(c)(2)(i)(A). Modify the provision to specify the estimated number of awards.

+ (h) See 10.001(d) for insertion of the clause at 52.210-1, Market Research, when the contract is over $7.5 million for the procurement of items other than commercial products or commercial services.

(i) See 7.107-6 for

use of 52.207-6, Solicitation

17.103 Definitions.

As used in this subpart-

− Cancellation means the cancellation (within a contractually specified time) of the total requirements of all remaining program years. Cancellation results when the contracting officer-

− (1) Notifies the contractor of nonavailability of funds for contract performance for any subsequent program year; or

+ Cancellation means the cancellation (within a contractually specified time) of the total requirements of all remaining program years. Cancellation results when the contracting officer- (1) Notifies the contractor of nonavailability of funds for contract performance for any subsequent program year; or

(2) Fails to notify the contractor that funds are available for performance of the succeeding program year requirement.

Cancellation ceiling means the maximum cancellation charge that the contractor can receive in the event of cancellation.

17.108 Congressional notification.

− (a)

− Except for DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of

− $15 million

− may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on appropriations of the House of Representatives and Senate and the appropriate oversight committees of the House and Senate for the agency in question. Information on such committees may not be readily available to contracting officers. Accordingly, agencies should provide such information through its internal regulations. The contract may not be awarded until the thirty-firstday after the date of notification.

− (b)

− For DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of

− $150 million

− may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on armed services and appropriations of the House of Representatives and Senate. The contract may not be awarded until the thirty-firstday after the date of notification.

+ (a) Except for DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of $20 million may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on appropriations of the House of Representatives and Senate and the appropriate oversight committees of the House and Senate for the agency in question. Information on such committees may not be readily available to contracting officers. Accordingly, agencies should provide such information through its internal regulations. The contract may not be awarded until the thirty-firstday after the date of notification.

+ (b) For DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of $200 million may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on armed services and appropriations of the House of Representatives and Senate. The contract may not be awarded until the thirty-firstday after the date of notification.

17.500 Scope of subpart.

− (a)

− This subpart prescribes policies and procedures applicable to all interagency acquisitions under any authority, except as provided for in paragraph (c) of this section. In addition to complying with the interagency acquisition policy and procedures in this subpart, nondefense agencies acquiring supplies and services on behalf of the Department of Defense shall also comply with the policy and procedures at subpart 17.7.

+ (a) This subpart prescribes policies and procedures applicable to all interagency acquisitions under any authority, except as provided for in paragraph (c) of this section. In addition to complying with the interagency acquisition policy and procedures in this subpart, nondefense agencies acquiring supplies and services on behalf of the Department of Defense shall also comply with the policy and procedures at subpart 17.7.

(b)

This subpart applies to interagency acquisitions, see 2.101 for definition, when-

the following requirements regarding subcontracting with small businesses

and small business subcontracting plans:

− (i)

− In negotiated acquisitions, each

− solicitation of offers to perform a contract that is expected to

− exceed $750,000 ($1.5 million for construction) and that has subcontracting

− possibilities, shall require the apparently successful offeror to

− submit an acceptable subcontracting plan. If the apparently successful

− offeror fails to negotiate a subcontracting plan acceptable to the

− contracting officer within the time limit prescribed by the contracting

− officer, the offeror will be ineligible for award. For a multiple-award

− contract with more than one North American Industry Classification

− System (NAICS) code, see paragraph (a)(2)(i) of this section.

− (ii)

− In sealed

− bidding acquisitions, each invitation for bids to perform a contract

− that is expected to exceed $750,000 ($1.5 million for construction)

− and that has subcontracting possibilities, shall require the bidder

− selected for award to submit a subcontracting plan. If the selected

− bidder fails to submit a plan within the time limit prescribed by

− the contracting officer, the bidder will be ineligible for award.

− For a multiple-award contract with more than one NAICS code, see

− paragraph (a)(2)(i) of this section.

− (iii)

− Each

− contract modification that causes the value of a contract without

− a subcontracting plan to exceed $750,000 ($1.5 million for construction),

− shall require the contractor to submit a subcontracting plan for

− the contract, if the contracting officer determines that subcontracting

− opportunities exist. For a multiple-award contract with more than

− one NAICS code, see paragraph (a)(2)(ii) of this section.

+ (i) In negotiated acquisitions, each solicitation of offers to perform a contract that is expected to exceed $900,000 ($2 million for construction) and that has subcontracting possibilities, shall require the apparently successful offeror to submit an acceptable subcontracting plan. If the apparently successful offeror fails to negotiate a subcontracting plan acceptable to the contracting officer within the time limit prescribed by the contracting officer, the offeror will be ineligible for award. For a multiple-award contract with more than one North American Industry Classification System (NAICS) code, see paragraph (a)(2)(i) of this section.

+ (ii) In sealed bidding acquisitions, each invitation for bids to perform a contract that is expected to exceed $900,000 ($2 million for construction) and that has subcontracting possibilities, shall require the bidder selected for award to submit a subcontracting plan. If the selected bidder fails to submit a plan within the time limit prescribed by the contracting officer, the bidder will be ineligible for award. For a multiple-award contract with more than one NAICS code, see paragraph (a)(2)(i) of this section.

+ (iii) Each contract modification that causes the value of a contract without a subcontracting plan to exceed $900,000 ($2 million for construction), shall require the contractor to submit a subcontracting plan for the contract, if the contracting officer determines that subcontracting opportunities exist. For a multiple-award contract with more than one NAICS code, see paragraph (a)(2)(ii) of this section.

(2)

(i)

and women-owned small business concerns have an equitable opportunity

to compete for subcontracts;

− (9)

− Assurances that the offeror will include the clause at 52.219-8, Utilization of Small Business Concerns (see 19.708(a)), in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all subcontractors (except small business concerns, including entities that are treated as small business concerns by statute for certain purposes ( e.g., ANCs, see 13 CFR 125.3(b)(2))) that receive subcontracts in excess of $750,000 ($1.5 million for construction) to adopt a plan that complies with the requirements of the clause at 52.219-9, Small Business Subcontracting Plan (see 19.708(b));

+ (9) Assurances that the offeror will include the clause at 52.219-8, Utilization of Small Business Concerns (see 19.708(a)), in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all subcontractors (except small business concerns, including entities that are treated as small business concerns by statute for certain purposes ( e.g., ANCs, see 13 CFR 125.3(b)(2))) that receive subcontracts in excess of $900,000 ($2 million for construction) to adopt a plan that complies with the requirements of the clause at 52.219-9, Small Business Subcontracting Plan (see 19.708(b));

(10) Assurances

that the offeror will-

The contract, together with all of its subcontracts, will be performed entirely outside of the United States and its outlying areas.

(b)

− (1)

− Insert the clause at 52.219-9, Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed

− $750,000

− ($1.5 million for construction of any public facility), and are required to include the clause at 52.219-8, Utilization of Small Business Concerns, unless the acquisition is set aside or is to be accomplished under the 8(a) program. When-

+ (1) Insert the clause at 52.219-9, Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed $900,000 ($2 million for construction of any public facility), and are required to include the clause at 52.219-8, Utilization of Small Business Concerns, unless the acquisition is set aside or is to be accomplished under the 8(a) program. When-

(i)

Contracting by sealed bidding rather than by negotiation, the contracting officer shall use the clause with its Alternate I;

(1) The multiple-award

contract was reserved for 8(a) participants;

− (2) The order

− has an estimated value less than or equal to $7 million for acquisitions

− assigned manufacturing NAICS codes and $4.5 million for all other

− acquisitions; and

+ (2) The order has an estimated value less than or equal to $8.5 million for acquisitions assigned manufacturing NAICS codes and $5.5 million for all other acquisitions; and

(3) The offering

and acceptance procedures at 19.804-2 and 19.804-3 are followed.

8(a) participants will submit offers and that award can be made

at a fair market price; and

− (2) The anticipated

− total value of the contract, including options, will exceed $7 million for acquisitions

− assigned manufacturing North American Industry Classification System

− (NAICS) codes and $4.5 million for all other acquisitions.

+ (2) The anticipated total value of the contract, including options, will exceed $8.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $5.5 million for all other acquisitions.

(b) Where an

acquisition exceeds the competitive threshold (see paragraph (a)(2)

19.808-1 Sole source.

− (a)

− The SBA may not accept for negotiation a sole-source 8(a) contract that exceeds

− $25 million

− unless the requesting agency has completed a justification in accordance with the requirements of 6.303.

+ (a) The SBA may not accept for negotiation a sole-source 8(a) contract that exceeds $30 million unless the requesting agency has completed a justification in accordance with the requirements of 6.303.

(b)

The SBA is responsible for initiating negotiations with the agency within the time established by the agency. If the SBA does not initiate negotiations within the agreed time and the agency cannot allow additional time, the agency may, after notifying the SBA, proceed with the acquisition from other sources.

price of the contract, including options, will not exceed-

(i)

− $7 million for a requirement

− within the North American Industry Classification System (NAICS)

− codes for manufacturing; or

+ $8.5 million for a requirement within the North American Industry Classification System (NAICS) codes for manufacturing; or

(ii)

− $4.5 million

− for a requirement within all other NAICS codes;

+ $5.5 million for a requirement within all other NAICS codes;

(3)

The requirement

The anticipated award price of the contract, including options, will not exceed-

(i)

− $7 million

− for a requirement within the NAICS codes for manufacturing; or

+ $8.5 million for a requirement within the NAICS codes for manufacturing; or

(ii)

− $4 million for a requirement within any other NAICS code;

+ $5 million for a requirement within any other NAICS code;

(3)

The requirement is not currently being performed by an 8(a) participant under the provisions of subpart 19.8 or has been accepted as a requirement by SBA under subpart 19.8;

The anticipated award price of the contract, including options, will not exceed-

(i)

− $7 million

− for a requirement within the NAICS codes for manufacturing; or

+ $8.5 million for a requirement within the NAICS codes for manufacturing; or

(ii)

− $4.5 million

− for a requirement within any other NAICS codes.

+ $5.5 million for a requirement within any other NAICS codes.

(2)

The EDWOSB concern or WOSB concern has been determined to be a responsible contractor with respect to performance.

or mechanics. However, do not include the clause in solicitations

and contracts-

− (a) Valued

− at or below $150,000;

+ (a) Valued at or below $200,000;

(b) For commercial products and

commercial services;

22.401 Definitions.

As used in this subpart-

− Apprentice means a person-

− (1) Employed and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer, and Labor Services (OATELS), or with a State Apprenticeship Agency recognized by OATELS; or

+ Apprentice means a person-(1) Employed and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer, and Labor Services (OATELS), or with a State Apprenticeship Agency recognized by OATELS; or

(2) Who is in the first 90 days of probationary employment as an apprentice in an apprenticeship program, and is not individually registered in the program, but who has been certified by the OATELS or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice.

− Construction, alteration, or repair means 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-

− (1) Altering, remodeling, installation (if appropriate) on the site of the work of items fabricated off-site;

+ Construction, alteration, or repair means 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-(1)Altering, remodeling, installation (if appropriate) on the site of the work of items fabricated off-site;

(2) Painting and decorating;

(3) Manufacturing or furnishing of materials, articles, supplies, or equipment on the site of the building or work;

(4) 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

(5) 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 (paragraph (1)(i) in the "site of the work" definition of this section).

− Laborers or mechanics.-

− (1) Means-

+ Laborers or mechanics.-(1) Means-

(i) Workers, utilized by a contractor or subcontractor at any tier, whose duties are manual or physical in nature (including those workers who use tools or who are performing the work of a trade), as distinguished from mental or managerial;

(ii) Apprentices, trainees, helpers, and, in the case of contracts subject to the Contract Work Hours and Safety Standards statute, watchmen and guards;

22.602 Statutory requirements.

− Except for the exemptions at 22.604, all contracts subject to 41 U.S.C. chapter 65, (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding $15,000, shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.

+ Except for the exemptions at 22.604, all contracts subject to 41 U.S.C. chapter 65, (the statute), and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation (all the stock of which is beneficially owned by the United States) for the manufacture or furnishing of materials, supplies, articles, and equipment (referred to in this subpart as supplies) in any amount exceeding $20,000, shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum hours, child labor, convict labor, and safe and sanitary working conditions.

(a)

Will be performed in the United States, Puerto Rico, or the U.S. Virgin Islands;

− (b)

− Exceed or may exceed $15,000; and

+ (b) Exceed or may exceed $20,000; and

(c)

Are not exempt under 22.604.

(a)

As authorized by the Act, the Secretary of Labor has issued rulings and interpretations concerning the administration of the statute (see 41 CFR50-206). The substance of certain rulings and interpretations is as follows:

− (1)

− If a contract for $15,000 or less is subsequently modified to exceed $15,000, the contract becomes subject to the statute for work performed after the date of the modification.

− (2)

− If a contract for more than $15,000 is subsequently modified by mutual agreement to $15,000 or less, the contract is not subject to the statute for work performed after the date of the modification.

− (3)

− If a contract awarded to a prime contractor contains a provision whereby the prime contractor is made an agent of the Government, the prime contractor is required to include the stipulations of the statute in contracts in excess of $15,000 awarded for and on behalf of the Government for supplies that are to be used in the construction and equipment of Government facilities.

+ (1) If a contract for $20,000 or less is subsequently modified to exceed $20,000, the contract becomes subject to the statute for work performed after the date of the modification.

+ (2) If a contract for more than $20,000 is subsequently modified by mutual agreement to $20,000 or less, the contract is not subject to the statute for work performed after the date of the modification.

+ (3) If a contract awarded to a prime contractor contains a provision whereby the prime contractor is made an agent of the Government, the prime contractor is required to include the stipulations of the statute in contracts in excess of $20,000 awarded for and on behalf of the Government for supplies that are to be used in the construction and equipment of Government facilities.

(4)

If a contract subject to the statute is awarded to a contractor operating Government-owned facilities, the stipulations of the statute affect the employees of that contractor the same as employees of contractors operating privately owned facilities.

22.1103 Policy, procedures, and solicitation provision.

− All professional employees shall be compensated fairly and properly. Accordingly, the contracting officer shall insert the provision at 52.222-46, Evaluation of Compensation for Professional Employees, in solicitations for negotiated contracts when the contract amount is expected to exceed

− $750,000

− and services are to be provided which will require meaningful numbers of professional employees. This provision requires that offerors submit for evaluation a total compensation plan setting forth proposed salaries and fringe benefits for professional employees working on the contract. Supporting information will include data, such as recognized national and regional compensation surveys and studies of professional, public and private organizations, used in establishing the total compensation structure. Plans indicating unrealistically low professional employee compensation may be assessed adversely as one of the factors considered in making an award.

+ All professional employees shall be compensated fairly and properly. Accordingly, the contracting officer shall insert the provision at 52.222-46, Evaluation of Compensation for Professional Employees, in solicitations for negotiated contracts when the contract amount is expected to exceed $900,000 and services are to be provided which will require meaningful numbers of professional employees. This provision requires that offerors submit for evaluation a total compensation plan setting forth proposed salaries and fringe benefits for professional employees working on the contract. Supporting information will include data, such as recognized national and regional compensation surveys and studies of professional, public and private organizations, used in establishing the total compensation structure. Plans indicating unrealistically low professional employee compensation may be assessed adversely as one of the factors considered in making an award.

22.1303 Applicability.

− (a)

− The Act applies to all contracts and subcontracts for personal property and nonpersonal services (including construction) of $150,000 or more except as waived by the Secretary of Labor.

+ (a) The Act applies to all contracts and subcontracts for personal property and nonpersonal services (including construction) of $200,000 or more except as waived by the Secretary of Labor.

(b)

The requirements of the clause at 52.222-35, Equal Opportunity for Veterans, in any contract with a State or local government (or any agency, instrumentality, or subdivision) do not apply to any agency, instrumentality, or subdivision of that government that does not participate in work on or under the contract.

− (c)

− The Act requires submission of the VETS-4212 Report in all cases where the contractor or subcontractor has received an award of $150,000 or more, except for awards to State and local governments, and foreign organizations where the workers are recruited outside of the United States.

+ (c) The Act requires submission of the VETS-4212 Report in all cases where the contractor or subcontractor has received an award of $200,000 or more, except for awards to State and local governments, and foreign organizations where the workers are recruited outside of the United States.

and contract clauses.

(a)

− (1) Insert the

− clause at 52.222-35, Equal Opportunity

− for Veterans, in solicitations and contracts if the expected value

− is $150,000 or more, except when-

+ (1) Insert the clause at 52.222-35, Equal Opportunity for Veterans, in solicitations and contracts if the expected value is $200,000 or more, except when-

(i) Work is performed

outside the United States by employees recruited outside the United

22.1402 Applicability.

− (a)

− Section 503 of the Act applies to all Government contracts in excess of $15,000 for supplies and services (including construction) except as waived by the Secretary of Labor. The clause at 52.222-36, Equal Opportunity for Workers with Disabilities, implements the Act.

+ (a) Section 503 of the Act applies to all Government contracts in excess of $20,000 for supplies and services (including construction) except as waived by the Secretary of Labor. The clause at 52.222-36, Equal Opportunity for Workers with Disabilities, implements the Act.

(b)

The requirements of the clause at 52.222-36, Equal Opportunity for Workers with Disabilities, in any contract with a State or local government (or any agency, instrumentality, or subdivision) shall not apply to any agency, instrumentality, or subdivision of that government that does not participate in work on or under the contract.

22.1408 Contract clause.

− (a)

− Insert the clause at 52.222-36, Equal Opportunity for Workers with Disabilities, in solicitations and contracts that exceed or are expected to exceed $15,000, except when-

+ (a) Insert the clause at 52.222-36, Equal Opportunity for Workers with Disabilities, in solicitations and contracts that exceed or are expected to exceed $20,000, except when-

(1)

Both the performance of the work and the recruitment of workers will occur outside the United States, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake Island; or

As used in this subpart-

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.

+ (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.

List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor means the list published by the Department of Labor in accordance with E.O. 13126 of June 12,1999, Prohibition of Acquisition of Products Produced by Forced or Indentured Child Labor. The list identifies products, by their country of origin, that the Departments of Labor, Treasury, and State have a reasonable basis to believe might have been mined, produced, or manufactured by forced or indentured child labor.

(1)

Is for supplies, other than commercially available off-the-shelf (COTS) items, to be acquired outside the United States, or services to be performed outside the United States; and

− (2)

− Has an estimated value that exceeds

− $550,000.

+ (2) Has an estimated value that exceeds $700,000.

(A)

Is for supplies, other than COTS items (see 2.101), to be acquired outside the United States, or services to be performed outside the United States; and

− (B)

− The estimated value exceeds

− $550,000.

+ (B) The estimated value exceeds $700,000.

(ii)

The certification must state that-

(b)

Insert the provision at 52.222-56, Certification Regarding Trafficking in Persons Compliance Plan, in solicitations if

− (1)

− It is possible that at least

− $550,000

− of the value of the contract may be performed outside the United States; and

+ (1) It is possible that at least $700,000 of the value of the contract may be performed outside the United States; and

(2)

The acquisition is not entirely for commercially available off-the-shelf items.

22.1801 Definitions.

As used in this subpart-

− Commercially

− available off-the-shelf (COTS) item-

− (1) Means

− any item of supply that is-

− (i) A commercial

− product (as defined in paragraph (1) of the definition of “commercial

− product” at 2.101);

− (ii) Sold in

− substantial quantities in the commercial marketplace; and

− (iii) Offered

− to the Government, without modification, in the same form in which

− it is sold in the commercial marketplace; and

− (2) Does not

− include bulk cargo, as defined in 46 U.S.C. 40102(4),

− such as agricultural products and petroleum products. Per 46 CFR 525.1 (c)(2), "bulk cargo" means

− cargo that is loaded and carried in bulk onboard ship without mark or

− count, in a loose unpackaged form, having homogenous characteristics.

− Bulk cargo loaded into intermodal equipment, except LASH or Seabee

− barges, is subject to mark and count and, therefore, ceases to be

− bulk cargo.

− Employee assigned to the

− contract means an employee who was hired after November 6, 1986

− (after November 27, 2009, in the Commonwealth of the Northern Mariana

− Islands), who is directly performing work, in the United States, under

− a contract that is required to include the clause prescribed at 22.1803. An employee is

− not considered to be directly performing work under a contract if

− the employee-

− (1) Normally performs support work,

− such as indirect or overhead functions; and

− (2) Does not

− perform any substantial duties applicable to the contract.

+ Commercially available off-the-shelf (COTS) item-(1) Means any item of supply that is-

+ (i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” at 2.101);

+ (ii) Sold in substantial quantities in the commercial marketplace; and

+ (iii) Offered to the Government, without modification, in the same form in which it is sold in the commercial marketplace; and

+ (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products. Per 46 CFR 525.1 (c)(2), "bulk cargo" means cargo that is loaded and carried in bulk onboard ship without mark or count, in a loose unpackaged form, having homogenous characteristics. Bulk cargo loaded into intermodal equipment, except LASH or Seabee barges, is subject to mark and count and, therefore, ceases to be bulk cargo.

+ Employee assigned to the contract means an employee who was hired after November 6, 1986 (after November 27, 2009, in the Commonwealth of the Northern Mariana Islands), who is directly performing work, in the United States, under a contract that is required to include the clause prescribed at 22.1803. An employee is not considered to be directly performing work under a contract if the employee-(1) Normally performs support work, such as indirect or overhead functions; and

+ (2) Does not perform any substantial duties applicable to the contract.

Subcontract means any contract, as defined

in 2.101, entered into by

Accrual year means the 12-month period during which a contractor may limit an employee's accrual of paid sick leave to no less than 56 hours (see 29 CFR 13.5(b)(1)).

Certification issued by a health care provider has the meaning given in 29 CFR 13.2.

− Employee-

− (1)

+ Employee- (1)

(i) Means any person engaged in performing work on or in connection with a contract covered by E.O. 13706; and

(A) Whose wages under such contract are governed by the Service Contract Labor Standards statute (41 U.S.C. chapter 67), the Wage Rate Requirements (Construction) statute (40 U.S.C. chapter 31, subchapter IV), or the Fair Labor Standards Act (29 U.S.C. chapter 8);

EPA-designated items. Except for the acquisition of COTS items—

(1) Insert the provision at 52.223-4, Recovered Material Certification, in solicitations that require the delivery or specify the use of EPA-designated items; and

− (2) Insert the clause at 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-designated Items, in solicitations and contracts exceeding $150,000 that are for, or specify the use of, EPA-designated items containing recovered materials. If technical personnel advise that estimates can be verified, use the clause with its Alternate I.

+ (2) Insert the clause at 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-designated Items, in solicitations and contracts exceeding $200,000 that are for, or specify the use of, EPA-designated items containing recovered materials. If technical personnel advise that estimates can be verified, use the clause with its Alternate I.

(c)

Biobased products in USDA-designated product categories.

(a)

The Act specifies, among other things, how agencies shall make their records available upon public request, imposes strict time standards for agency responses, and exempts certain records from public disclosure. Each agency’s implementation of these requirements is located in its respective title of the Code of Federal Regulations and referenced in subpart 24.2 of its implementing acquisition regulations.

− (b)

− Contracting officers may receive requests for records that may be exempted from mandatory public disclosure. The exemptions most often applicable are those relating to classified information, to trade secrets and confidential commercial or financial information, to interagency or intra-agency memoranda, or to personal and medical information pertaining to an individual. Other exemptions include agency personnel practices, and law enforcement. Since these requests often involve complex issues requiring an in-depth knowledge of a large and increasing body of court rulings and policy guidance, contracting officers are cautioned to comply with the implementing regulations of their agency and to obtain necessary guidance from the agency officials having Freedom of Information Act responsibility. If additional assistance is needed, authorized agency officials may contact the Department of Justice, Office of Information and Privacy. A Freedom of Information Act guide and other resources are available at the Department of Justice website under FOIA reference materials: http://www.usdoj.gov/oip.

+ (b) Contracting officers may receive requests for records that may be exempted from mandatory public disclosure. The exemptions most often applicable are those relating to classified information, to trade secrets and confidential commercial or financial information, to interagency or intra-agency memoranda, or to personal and medical information pertaining to an individual. Other exemptions include agency personnel practices, and law enforcement. Since these requests often involve complex issues requiring an in-depth knowledge of a large and increasing body of court rulings and policy guidance, contracting officers are cautioned to comply with the implementing regulations of their agency and to obtain necessary guidance from the agency officials having Freedom of Information Act responsibility. If additional assistance is needed, authorized agency officials may contact the Department of Justice, Office of Information and Privacy. A Freedom of Information Act guide and other resources are available at the Department of Justice website under FOIA reference materials: https://www.usdoj.gov/oip.

(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and

(2) Does not include a government or governmental entity that is not operating as a business enterprise.

− Sensitive technology-

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

+ 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

of weapons of mass destruction or other military capabilities.

(2)

− Certification

− relating to transactions with Iran's Revolutionary Guard Corps. As

− required by section 6(b)(1)(B) of the Iran Sanctions Act (50 U.S.C. 1701 note),

− unless an exception applies in accordance with paragraph (c) of

− this subsection, or a waiver is granted in accordance with 25.703-4, each offeror

− must certify that the offeror, and any person owned or controlled

− by the offeror, does not knowingly engage in any significant transaction

− (i.e., a transaction that exceeds $10,000, 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 https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx).

+ Certification relating to transactions with Iran's Revolutionary Guard Corps. As required by section 6(b)(1)(B) of the Iran Sanctions Act (50 U.S.C. 1701 note), unless an exception applies in accordance with paragraph (c) of this subsection, or a waiver is granted in accordance with 25.703-4, each offeror must certify that the offeror, and any person owned or controlled by the offeror, does not knowingly engage in any significant transaction (i.e., a transaction that exceeds $15,000, 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 https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx).

(b)

Remedies.

As used in this subpart-

Apparently wholesome food means food that meets all quality and labeling standards imposed by Federal, State, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions, in accordance with (b)(2) of the Bill Emerson Good Samaritan Food Donation Act ( 42 U.S.C. 1791(b)).

− Excess food means food that-

− (1) Is not required to meet the needs of the executive agencies; and

+ Excess food means food that- (1) Is not required to meet the needs of the executive agencies; and

(2) Would otherwise be discarded.

Food-insecure means inconsistent access to sufficient, safe, and nutritious food.

− Nonprofit organization means any organization that is-

− (1) Described in section 501(c) of the Internal Revenue Code of 1986; and

+ Nonprofit organization means any organization that is- (1) Described in section 501(c) of the Internal Revenue Code of 1986; and

(2) Exempt from tax under section 501(a) of that Code.

26.404 Contract clause.

− Insert the clause at 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations, in solicitations and contracts greater than

− $30,000

− for the provision, service, or sale of food in the United States.

+ Insert the clause at 52.226-6, Promoting Excess Food Donation to Nonprofit Organizations, in solicitations and contracts greater than $35,000 for the provision, service, or sale of food in the United States.

As used in this subpart-

Invention means any invention or discovery that is or may be patentable or otherwise protectable under title 35 of the U.S. Code, or any variety of plant that is or may be protectable under the Plant Variety Protection Act (7 U.S .C. 2321, et seq.)

− Made means-

− (1) When used in relation to any invention other than a plant variety, means the conception or first actual reduction to practice of the invention; or

+ Made means- (1) When used in relation to any invention other than a plant variety, means the conception or first actual reduction to practice of the invention; or

(2) When used in relation to a plant variety, means that the contractor has at least tentatively determined that the variety has been reproduced with recognized characteristics.

Nonprofit organization means a university or other institution of higher education or an organization of the type described in section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)), or any nonprofit scientific or educational organization qualified under a State nonprofit organization statute.

Attorney-in-fact means an agent, independent agent, underwriter, or any other company or individual holding a power of attorney granted by a surety (see also "power of attorney" at 2.101).

Bid means any response to a solicitation, including a proposal under a negotiated acquisition. See the definition of "offer" at 2.101.

− Bid guarantee means a form of security assuring that the bidder-

− (1) Will not withdraw a bid within the period specified for acceptance; and

+ Bid guarantee means a form of security assuring that the bidder- (1) Will not withdraw a bid within the period specified for acceptance; and

(2) Will execute a written contract and furnish required bonds, including any necessary coinsurance or reinsurance agreements, within the time specified in the bid, unless a longer time allowed, after receipt of the specified forms.

Bidder means any entity that is responding or has responded to a solicitation, including an offeror under a negotiated acquisition.

− Bond means a written instrument executed by a bidder or contractor (the "principal"), and a second party (the "surety" or "sureties") (except as provided in 28.204), to assure fulfillment of the principal’s obligations to a third party (the "obligee" or "Government"), identified in the bond. If the principal’s obligations are not met, the bond assures payment, to the extent stipulated, of any loss sustained by the obligee. The types of bonds and related documents are as follows:

− (1) An advance payment bond secures fulfillment of the contractor’s obligations under an advance payment provision.

+ Bond means a written instrument executed by a bidder or contractor (the "principal"), and a second party (the "surety" or "sureties") (except as provided in 28.204), to assure fulfillment of the principal’s obligations to a third party (the "obligee" or "Government"), identified in the bond. If the principal’s obligations are not met, the bond assures payment, to the extent stipulated, of any loss sustained by the obligee. The types of bonds and related documents are as follows: (1) An advance payment bond secures fulfillment of the contractor’s obligations under an advance payment provision.

(2) An annual bid bond is a single bond furnished by a bidder, in lieu of separate bonds, which secure all bids (on other than construction contracts) requiring bonds submitted during a specific Government fiscal year.

(3) An annual performance bond is a single bond furnished by a contractor, in lieu of separate performance bonds, to secure fulfillment of the contractor’s obligations under contracts (other than construction contracts) requiring bonds entered into during a specific Government fiscal year.

and all property, equipment, and materiel of NATO, NATO Member States,

and Operational Partners present in the territory of Afghanistan.

− U.S.

− Forcesmeans the entity comprising the members of the force and

− of the civilian component, and all property, equipment, and materiel

− of the United States Armed Forces present in the territory of Afghanistan.

+ U.S. Forces means the entity comprising the members of the force and of the civilian component, and all property, equipment, and materiel of the United States Armed Forces present in the territory of Afghanistan.

Disclosure

and consistency of cost accounting practices.

− (1) Insert

− the clause at FAR 52.230-3,

− Disclosure and Consistency of Cost Accounting Practices, in negotiated

− contracts when the contract amount is over $2 million, but less

− than $50 million, and the offeror certifies it is eligible for and

− elects to use modified CAS coverage (see 48

− CFR 9903.201-2), unless the clause prescribed in paragraph

− (c) of this subsection is used.

+ (1) Insert the clause at FAR 52.230-3, Disclosure and Consistency of Cost Accounting Practices, in negotiated contracts when the contract amount is over $2.5 million, but less than $50 million, and the offeror certifies it is eligible for and elects to use modified CAS coverage (see 48 CFR 9903.201-2), unless the clause prescribed in paragraph (c) of this subsection is used.

(2) The clause

at FAR 52.230-3 requires the

Bid and proposal (B&P) costs means the costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) on potential Government or non-Government contracts. The term does not include the costs of effort sponsored by a grant or cooperative agreement, or required in the performance of a contract.

Company means all divisions, subsidiaries, and affiliates of the contractor under common control.

− Development means the systematic use, under whatever name, of scientific and technical knowledge in the design, development, test, or evaluation of a potential new product or service (or of an improvement in an existing product or service) for the purpose of meeting specific performance requirements or objectives. Development includes the functions of design engineering, prototyping, and engineering testing. Development excludes-

− (1) Subcontracted technical effort which is for the sole purpose of developing an additional source for an existing product, or

+ Development means the systematic use, under whatever name, of scientific and technical knowledge in the design, development, test, or evaluation of a potential new product or service (or of an improvement in an existing product or service) for the purpose of meeting specific performance requirements or objectives. Development includes the functions of design engineering, prototyping, and engineering testing. Development excludes- (1) Subcontracted technical effort which is for the sole purpose of developing an additional source for an existing product, or

(2) Development effort for manufacturing or production materials, systems, processes, methods, equipment, tools, and techniques not intended for sale.

Independent research and development (IR&D) means a contractor’s IR&D cost that consists of projects falling within the four following areas: (1) basic research, (2) applied research, (3) development, and (4) systems and other concept formulation studies. The term does not include the costs of effort sponsored by a grant or required in the performance of a contract. IR&D effort shall not include technical effort expended in developing and preparing technical data specifically to support submitting a bid or proposal.

of monies to a contractor prior to acceptance of supplies or services

by the Government.

− (1) Contract financing payments include-

− (i) Advance

+ (1)

+ Contract financing payments include-

+ (i)

+ Advance

payments;

− (ii) Performance-based

+ (ii)

+ Performance-based

payments;

− (iii) Commercial

+ (iii)

+ Commercial

advance and interim payments;

− (iv) Progress

+ (iv)

+ Progress

payments based on cost under the clause at 52.232-16, Progress Payments;

− (v) Progress

+ (v)

+ Progress

payments based on a percentage or stage of completion (see 32.102(e)), except those

made under the clause at 52.232-5,

(2)

If the contractor is not a small business concern-

− (i)

− For an individual contract, the contract price is

− $3 million

− or more; or

− (ii)

− For an indefinite-delivery contract, a basic ordering agreement or a similar ordering instrument, the contracting officer expects the aggregate value of orders or contracts that individually exceed the simplified acquisition threshold to have a total value of

− $3 million

− or more. The contracting officer must limit financing to those orders or contracts that exceed the simplified acquisition threshold.

+ (i) For an individual contract, the contract price is $3.5 million or more; or

+ (ii) For an indefinite-delivery contract, a basic ordering agreement or a similar ordering instrument, the contracting officer expects the aggregate value of orders or contracts that individually exceed the simplified acquisition threshold to have a total value of $3.5 million or more. The contracting officer must limit financing to those orders or contracts that exceed the simplified acquisition threshold.

(3)

If the contractor is a small business concern-

(7)

Purchases of supplies or services in foreign countries, if-

− (i)

− The purchase price does not exceed $15,000 (or equivalent amount of the applicable foreign currency); and

+ (i) The purchase price does not exceed $20,000 (or equivalent amount of the applicable foreign currency); and

(ii)

The advance payment is required by the laws or government regulations of the foreign country concerned;

33.101 Definitions.

As used in this subpart-

− Day means a calendar day, unless otherwise specified. In the computation of any period-

− (1) The day of the act, event, or default from which the designated period of time begins to run is not included; and

+ Day means a calendar day, unless otherwise specified. In the computation of any period-(1) The day of the act, event, or default from which the designated period of time begins to run is not included; and

(2) The last day after the act, event, or default is included unless-

(i) The last day is a Saturday, Sunday, or Federal holiday; or

Alternative dispute resolution (ADR) means any type of procedure or combination of procedures voluntarily used to resolve issues in controversy. These procedures may include, but are not limited to, conciliation, facilitation, mediation, fact-finding, minitrials, arbitration, and use of ombudsmen.

Defective certification means a certificate which alters or otherwise deviates from the language in 33.207(c) or which is not executed by a person authorized to bind the contractor with respect to the claim. Failure to certify shall not be deemed to be a defective certification.

− Issue in controversy means a material disagreement between the Government and the contractor that-

− (1) May result in a claim; or

+ Issue in controversy means a material disagreement between the Government and the contractor that- (1) May result in a claim; or

(2) Is all or part of an existing claim.

Misrepresentation of fact means a false statement of substantive fact, or any conduct which leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead.

(3)

Phase-two evaluation factors (see 36.303-2); and

− (4)

− A statement of the maximum number of offerors that will be selected to submit phase-two proposals. The maximum number specified in the solicitation shall not exceed five unless the contracting officer determines, for that particular solicitation, that a number greater than five is in the Government's interest and is consistent with the purposes and objectives of the two-phase design-build selection procedures. The contracting officer shall document this determination in the contract file. For acquisitions greater than

− $4.5 million,

− the determination shall be approved by the head of the contracting activity, delegable to a level no lower than the senior contracting official within the contracting activity. In civilian agencies, for paragraph (a)(4) of this section, the senior contracting official is the advocate for competition for the procuring activity, unless the agency designates a different position in agency procedures. The approval shall be documented in the contract file.

+ (4) A statement of the maximum number of offerors that will be selected to submit phase-two proposals. The maximum number specified in the solicitation shall not exceed five unless the contracting officer determines, for that particular solicitation, that a number greater than five is in the Government's interest and is consistent with the purposes and objectives of the two-phase design-build selection procedures. The contracting officer shall document this determination in the contract file. For acquisitions greater than $5.5 million, the determination shall be approved by the head of the contracting activity, delegable to a level no lower than the senior contracting official within the contracting activity. In civilian agencies, for paragraph (a)(4) of this section, the senior contracting official is the advocate for competition for the procuring activity, unless the agency designates a different position in agency procedures. The approval shall be documented in the contract file.

(b)

After evaluating phase-one proposals, the contracting officer shall select the most highly qualified offerors (not to exceed the maximum number specified in the solicitation in accordance with 36.303-1(a)(4)) and request that only those offerors submit phase-two proposals.

36.501 Performance of work by the contractor.

(a) To assure adequate interest in and supervision of all work involved in larger projects, the contractor shall be required to perform a significant part of the contract work with its own forces. The contract shall express this requirement in terms of a percentage that reflects the minimum amount of work the contractor must perform with its own forces. This percentage is (1) as high as the contracting officer considers appropriate for the project, consistent with customary or necessary specialty subcontracting and the complexity and magnitude of the work, and (2) ordinarily not less than 12 percent unless a greater percentage is required by law or agency regulation. Specialties such as plumbing, heating, and electrical work are usually subcontracted, and should not normally be considered in establishing the amount of work required to be performed by the contractor.

− (b)

− The contracting officer shall insert the clause at 52.236-1, Performance of Work by the Contractor, in solicitations and contracts, except those awarded pursuant to subparts 19.5, 19.8, 19.13, 19.14, or 19.15 when a fixed-price construction contract is contemplated and the contract amount is expected to exceed $1.5 million. The contracting officer may insert the clause in solicitations and contracts when a fixed-price construction contract is contemplated and the contract amount is expected to be $1.5 million or less.

+ (b) The contracting officer shall insert the clause at 52.236-1, Performance of Work by the Contractor, in solicitations and contracts, except those awarded pursuant to subparts 19.5, 19.8, 19.13, 19.14, or 19.15 when a fixed-price construction contract is contemplated and the contract amount is expected to exceed $2 million. The contracting officer may insert the clause in solicitations and contracts when a fixed-price construction contract is contemplated and the contract amount is expected to be $2 million or less.

40.201 Definitions.

As used in this subpart-

− American Security Drone Act-covered foreign entitymeans an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov (section 1822 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.).

− FASC-prohibited unmanned aircraft systemmeans an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity.

− Unmanned aircraftmeans an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft (49 U.S.C. 44801(11)).

− Unmanned aircraft systemmeans an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system (49 U.S.C. 44801(12)).

+ American Security Drone Act-covered foreign entity means an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov (section 1822 of Pub. L. 118-31, 41 U.S.C. 3901 note prec.).

+ FASC-prohibited unmanned aircraft system means an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity.

+ Unmanned aircraft means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft (49 U.S.C. 44801(11)).

+ Unmanned aircraft system means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system (49 U.S.C. 44801(12)).

Authorization means the document executed by the ordering agency and the utility supplier to order service under an areawide contract.

Connection charge means all nonrecurring costs, whether refundable or nonrefundable, to be paid by the Government to the utility supplier for the required connecting facilities, which are installed, owned, operated, and maintained by the utility supplier (see Termination liability).

− Delegated agency means an agency that has received a written delegation of authority from GSA to contract for utility services for periods not exceeding tenyears (see 41.103(b)).

+ Delegated agency means an agency that has received a written delegation of authority from GSA to contract for utility services for periods not exceeding ten years (see 41.103(b)).

Federal Power and Water Marketing Agency means a Government entity that produces, manages, transports, controls, and sells electrical and water supply service to customers.

Franchise territory means a geographical area that a utility supplier has a right to serve based upon a franchise, a certificate of public convenience and necessity, or other legal means.

statement of costs incurred or estimated to be incurred under a

fixed-price incentive contract.

− (b) This section

− applies to all contracts in excess of $800,000, except fixed-price

− contracts without cost incentives or any firm-fixed-price contracts

− for the purchase of commercial

− products or commercial services.

+ (b) This section applies to all contracts in excess of $1 million, except fixed-price contracts without cost incentives or any firm-fixed-price contracts for the purchase of commercial products or commercial services.

42.709-7 Contract clause.

− Use the clause at 52.242-3, Penalties for

− Unallowable Costs, in all solicitations and contracts over $800,000

− except fixed-price contracts without cost incentives or any firm-fixed-price

− contract for the purchase of commercial

− products or commercial services. Generally, covered contracts

− are those which contain one of the clauses at 52.216-7, 52.216-16, or 52.216-17, or a similar

− clause from an executive agency’s supplement to the FAR.

+ Use the clause at 52.242-3, Penalties for Unallowable Costs, in all solicitations and contracts over $1 million except fixed-price contracts without cost incentives or any firm-fixed-price contract for the purchase of commercial products or commercial services. Generally, covered contracts are those which contain one of the clauses at 52.216-7, 52.216-16, or 52.216-17, or a similar clause from an executive agency’s supplement to the FAR.

requirements under paragraph (g) of this section unless the contracting

officer deems it appropriate.

− (e) Past performance

− evaluations shall be prepared for each construction contract of

− $750,000 or more, and for each construction contract terminated

− for default regardless of contract value. Past performance evaluations

− may also be prepared for construction contracts below $750,000.

− (f) Past performance

− evaluations shall be prepared for each architect-engineer services

− contract of $35,000 or more, and for each architect-engineer services

− contract that is terminated for default regardless of contract value.

− Past performance evaluations may also be prepared for architect-engineer

− services contracts below $35,000.

+ (e) Past performance evaluations shall be prepared for each construction contract of $900,000 or more, and for each construction contract terminated for default regardless of contract value. Past performance evaluations may also be prepared for construction contracts below $900,000.

+ (f) Past performance evaluations shall be prepared for each architect-engineer services contract of $45,000 or more, and for each architect-engineer services contract that is terminated for default regardless of contract value. Past performance evaluations may also be prepared for architect-engineer services contracts below $45,000.

(g) Past performance

evaluations shall include an assessment of the contractor's-

With regard to information that may be covered by a disclosure exemption under the Freedom of Information Act, the contracting officer shall follow the procedures at 9.105-2(b)(2)(iv).

Table 42-1 -Evaluation Rating Definitions

− Rating

− Definition

− Note

+ RatingDefinitionNote

(a) Exceptional

Performance meets contractual requirements and exceeds many to the Government’s benefit. The contractual performance of the element or sub-element being evaluated was accomplished with few minor problems for which corrective actions taken by the contractor were highly effective.

47.001 Definitions.

As used in this part-

− Bill of lading means a transportation document, used as a receipt of goods, as documentary evidence of title, for clearing customs, and generally used as a contract of carriage.

− (1)

− "Commercial bill of lading (CBL)", unlike the Government bill of lading, is not an accountable transportation document.

− (2)

− "Government bill of lading (GBL)" is an accountable transportation document, authorized and prepared by a Government official.

+ Bill of lading means a transportation document, used as a receipt of goods, as documentary evidence of title, for clearing customs, and generally used as a contract of carriage.(1) "Commercial bill of lading (CBL)", unlike the Government bill of lading, is not an accountable transportation document.

+ (2) "Government bill of lading (GBL)" is an accountable transportation document, authorized and prepared by a Government official.

Carrier or "commercial carrier" means a common carrier or a contract carrier.

Common carrier means a person holding itself out to the general public to provide transportation for compensation.

Contract carrier means a person providing transportation for compensation under continuing agreements with one person or a limited number of persons.

Government rate tender under 49 U.S.C. 10721 and 13712means an offer by a common carrier to the United States at a rate below the regulated rate offered to the general public.

− Household goods in accordance with 49 U.S.C. 13102 means personal effects and property used or to be used in a dwelling, when a part of the equipment or supply of such dwelling, and similar property if the transportation of such effects or property is arranged and paid for by-

− (1) The householder, except such term does not include property moving from a factory or store, other than property that the householder has purchased with the intent to use in his or her dwelling and is transported at the request of, and the transportation charges are paid to the carrier by, the householder; or

+ Household goods in accordance with 49 U.S.C. 13102 means personal effects and property used or to be used in a dwelling, when a part of the equipment or supply of such dwelling, and similar property if the transportation of such effects or property is arranged and paid for by-(1) The householder, except such term does not include property moving from a factory or store, other than property that the householder has purchased with the intent to use in his or her dwelling and is transported at the request of, and the transportation charges are paid to the carrier by, the householder; or

(2) Another party.

Noncontiguous domestic trade means transportation (except with regard to bulk cargo, forest products, recycled metal scrap, waste paper, and paper waste) subject to regulation by the Surface Transportation Board involving traffic originating in or destined to Alaska, Hawaii, or a territory or possession of the United States (see 49 U.S.C. 13102(15) and 13702).

48.001 Definitions.

As used in this part-

− Acquisition savings means savings resulting from the application of a value engineering change proposal (VECP) to contracts awarded by the same contracting office or its successor for essentially the same unit. Acquisition savings include-

− (1) Instant contract savings, that are the net cost reductions on the contract under which the VECP is submitted and accepted, and that are equal to the instant unit cost reduction multiplied by the number of instant contract units affected by the VECP, less the contractor’s allowable development and implementation costs;

+ Acquisition savings means savings resulting from the application of a value engineering change proposal (VECP) to contracts awarded by the same contracting office or its successor for essentially the same unit. Acquisition savings include- (1) Instant contract savings, that are the net cost reductions on the contract under which the VECP is submitted and accepted, and that are equal to the instant unit cost reduction multiplied by the number of instant contract units affected by the VECP, less the contractor’s allowable development and implementation costs;

(2) Concurrent contract savings, that are net reductions in the prices of other contracts that are definitized and ongoing at the time the VECP is accepted; and

(3) Future contract savings, that are the product of the future unit cost reduction multiplied by the number of future contract units in the sharing base. On an instant contract, future contract savings include savings on increases in quantities after VECP acceptance that are due to contract modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract.

delegated shall be to a level high enough to ensure uniformity of

action.

− (b)

− Authority

− to approve requests to obligate the Government in excess of $75,000 may not be

− delegated below the secretarial level.

+ (b) Authority to approve requests to obligate the Government in excess of $90,000 may not be delegated below the secretarial level.

(c)

Regardless

The action

shall not-

− (i)

− Release a contractor from performance

− of an obligation over $75,000;

− (ii)

− Result

− in an increase in cost to the Government over $75,000;

+ (i) Release a contractor from performance of an obligation over $90,000;

+ (ii) Result in an increase in cost to the Government over $90,000;

(iii)

Deal

Definitions. As used in this clause-

Agency means "executive agency" as defined in Federal Acquisition Regulation (FAR) 2.101.

− Covered Federal action means any of the following actions:

− (1) Awarding any Federal contract.

+ Covered Federal action means any of the following actions: (1) Awarding any Federal contract.

(2) Making any Federal grant.

(3) Making any Federal loan.

4.1202(a), insert the following

provision:

− Annual Representations and Certifications (Jan 2025)

+ Annual Representations and Certifications (Oct 2025)

(a)

(1)

Definitions. As used in this clause—

Electronic Funds Transfer (EFT) indicator means a four-character suffix to the unique entity identifier. The suffix is assigned at the discretion of the commercial, nonprofit, or Government entity to establish additional System for Award Management (SAM) records for identifying alternative EFT accounts (see subpart 32.11) for the same entity.

− Registered in the System for Award Management (SAM) means that–

− (1) The Contractor has entered all mandatory information, including the unique entity identifier and the EFT indicator (if applicable), the Commercial and Government Entity (CAGE) code, as well as data required by the Federal Funding Accountability and Transparency Act of 2006 (see subpart 4.14), into SAM;

+ Registered in the System for Award Management (SAM) means that– (1) The Contractor has entered all mandatory information, including the unique entity identifier and the EFT indicator (if applicable), the Commercial and Government Entity (CAGE) code, as well as data required by the Federal Funding Accountability and Transparency Act of 2006 (see subpart 4.14), into SAM;

(2) The Contractor has completed the Core, Assertions, Representations and Certifications, and Points of Contact sections of the registration in SAM;

(3) The Government has validated all mandatory data fields, to include validation of the Taxpayer Identification Number (TIN) with the Internal Revenue Service (IRS). The Contractor will be required to provide consent for TIN validation to the Government as a part of the SAM registration process; and

(4) The Government has marked the record "Active".

− System for Award Management (SAM) means the primary Government repository for prospective Federal awardee and Federal awardee information and the centralized Government system for certain contracting, grants, and other assistance-related processes. It includes–

− (1) Data collected from prospective Federal awardees required for the conduct of business with the Government;

+ System for Award Management (SAM) means the primary Government repository for prospective Federal awardee and Federal awardee information and the centralized Government system for certain contracting, grants, and other assistance-related processes. It includes– (1) Data collected from prospective Federal awardees required for the conduct of business with the Government;

(2) Prospective contractor-submitted annual representations and certifications in accordance with FAR subpart 4.12; and

(3) Identification of those parties excluded from receiving Federal contracts, certain subcontracts, and certain types of Federal financial and non-financial assistance and benefits.

(a)

Definitions. As used in this provision–

− Commercial and Government Entity (CAGE) code means–

− (1)

− An identifier assigned to entities located in the United States or its outlying areas by the Defense Logistics Agency (DLA) Commercial and Government Entity (CAGE) Branch to identify a commercial or government entity by unique location; or

− (2)

− An identifier assigned by a member of the North Atlantic Treaty Organization (NATO) or by the NATO Support and Procurement Agency (NSPA) to entities located outside the United States and its outlying areas that the DLA Commercial and Government Entity (CAGE) Branch records and maintains in the CAGE master file. This type of code is known as a NATO CAGE (NCAGE) code.

+ Commercial and Government Entity (CAGE) code means– (1) An identifier assigned to entities located in the United States or its outlying areas by the Defense Logistics Agency (DLA) Commercial and Government Entity (CAGE) Branch to identify a commercial or government entity by unique location; or

+ (2) An identifier assigned by a member of the North Atlantic Treaty Organization (NATO) or by the NATO Support and Procurement Agency (NSPA) to entities located outside the United States and its outlying areas that the DLA Commercial and Government Entity (CAGE) Branch records and maintains in the CAGE master file. This type of code is known as a NATO CAGE (NCAGE) code.

Highest-level owner means the entity that owns or controls an immediate owner of the offeror, or that owns or controls one or more entities that control an immediate owner of the offeror. No entity owns or exercises control of the highest level owner.

Immediate owner means an entity, other than the offeror, that has direct control of the offeror. Indicators of control include, but are not limited to, one or more of the following: ownership or interlocking management, identity of interests among family members, shared facilities and equipment, and the common use of employees.

As prescribed in

9.104-7(e), insert the following provision:

− Certification Regarding Tax Matters (Oct 2020)

+ Certification Regarding Tax Matters (Oct 2025)

(a)

This provision implements section 523 of Division B of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235), and similar provisions, if contained in subsequent appropriations acts.

− (b)

− If the Offeror is proposing a total contract price that will exceed

− $5.5 million

− (including options), the Offeror shall certify that, to the best of its knowledge and belief, it

+ (b) If the Offeror is proposing a total contract price that will exceed $7 million (including options), the Offeror shall certify that, to the best of its knowledge and belief, it

(1)

Has □ filed all Federal tax returns required during the three years preceding the certification;

12.301(b)(2), insert the following

provision:

− Offeror Representations and Certifications—Commercial Products and Commercial Services (May 2024)

+ Offeror Representations and Certifications—Commercial Products and Commercial Services (Oct 2025)

The Offeror shall complete only paragraph (b) of

this provision if the Offeror has completed the annual

As prescribed in

12.301(b)(4), insert the following clause:

− Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services (Jan 2025)

+ Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services (Oct 2025)

(a)

The

13.302-5(d), insert

the following clause:

− Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services) (Jan 2025)

+ Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services) (Oct 2025)

(a)

The

for submission of certified cost or pricing data in FAR 15.403-4(a)(1).

(End of clause)

− Alternate I (Aug 2020). As prescribed in

− 14.201-7(c)(1)(ii), substitute the following paragraph (b) in

− place of paragraph (b) of the basic clause:

+ Alternate I

+ (Oct 2025). As prescribed in 14.201-7(c)(1)(ii), substitute the following paragraph (b) in place of paragraph (b) of the basic clause:

(b) Unless an exception

under FAR 15.403-1(b)

The substance of the clause at FAR 52.215-13, Subcontractor Certified Cost or Pricing Data-Modifications.

(End of clause)

− Alternate I (Aug 2020). As prescribed in

+ Alternate I

+ (Oct 2025). As prescribed in

15.408

(d)(2), substitute the following paragraph (a) in place of paragraph (a) of the basic clause:

(a) Unless an exception under FAR 15.403-1 applies, the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15-2 (to include any information reasonably required to explain the subcontractor's estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price)—

− (1) Before modifying any subcontract that was awarded prior to July 1, 2018, involving a pricing adjustment expected to exceed $750,000; or

− (2) Before awarding any subcontract expected to exceed $2 million on or after July 1, 2018, or modifying any subcontract that was awarded on or after July 1, 2018, involving a pricing adjustment expected to exceed $2 million.

+ (1) Before modifying any subcontract that was awarded prior to July 1, 2018, involving a pricing adjustment expected to exceed $950,000; or

+ (2) Before awarding any subcontract expected to exceed $2.5 million on or after July 1, 2018, or modifying any subcontract that was awarded on or after July 1, 2018, involving a pricing adjustment expected to exceed $2.5 million.

The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that exceeds the threshold for submission of certified cost or pricing data in FAR 15.403-4(a)(1) on the date of agreement on price or the date of award, whichever is later.

(End of clause)

− Alternate I (Aug 2020). As prescribed in

+ Alternate I

+ (Oct 2025). As prescribed in

15.408

(e)(2), substitute the following paragraphs (a), (b), and (d) for paragraphs (a), (b), and (d) of the basic clause:

Set-Aside or Sole-Source Award (Oct

2022)

− (a)

− Definitions. HUBZone small business concern, as used in this clause, means a small business concern, certified by the Small Business Administration (SBA), that appears on the List of Qualified HUBZone Small Business Concerns maintained by the SBA (13 CFR 126.103).

+ (a) Definitions.

+ HUBZone small business concern, as used in this clause, means a small business concern, certified by the Small Business Administration (SBA), that appears on the List of Qualified HUBZone Small Business Concerns maintained by the SBA (13 CFR 126.103).

(b)

Applicability. This clause applies only to-

Notice of Total Small

Business Set-Aside (Nov 2020)

− (a)

− Definition. Small

− business concern, as used in this clause—

− (1) 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

− size standards in this solicitation.

− (2)

− Affiliates,

− as used in paragraph (a)(1) of this clause, means business concerns,

− one of whom directly or indirectly controls or has the power to

− control the others, or a third party or parties control or have

− the power to control the others. In determining whether affiliation

− exists, consideration is given to all appropriate factors including

− common ownership, common management, and contractual relationships.

− SBA determines affiliation based on the factors set forth at 13 CFR

− 121.103.

+ (a) Definition.

+ Small business concern, as used in this clause— (1) 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 size standards in this solicitation.

+ (2) Affiliates, as used in paragraph (a)(1) of this clause, means business concerns, one of whom directly or indirectly controls or has the power to control the others, or a third party or parties control or have the power to control the others. In determining whether affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships. SBA determines affiliation based on the factors set forth at 13 CFR 121.103.

(b)

Applicability.

Notice of Partial Small Business

Set-Aside (Nov 2020)

− (a)

− Definition. Small business concern, as used in

− this clause—

− (1)

− 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 size standards in this solicitation.

− (2)

− Affiliates,

− as used in paragraph (a)(1) of this clause, means business concerns,

− one of whom directly or indirectly controls or has the power to

− control the others, or a third party or parties control or have

− the power to control the others. In determining whether affiliation

− exists, consideration is given to all appropriate factors including

− common ownership, common management, and contractual relationships.

− SBA determines affiliation based on the factors set forth at 13 CFR

− 121.103.

+ (a) Definition.

+ Small business concern, as used in this clause— (1) 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 size standards in this solicitation.

+ (2) Affiliates, as used in paragraph (a)(1) of this clause, means business concerns, one of whom directly or indirectly controls or has the power to control the others, or a third party or parties control or have the power to control the others. In determining whether affiliation exists, consideration is given to all appropriate factors including common ownership, common management, and contractual relationships. SBA determines affiliation based on the factors set forth at 13 CFR 121.103.

(b)

Applicability. This

Definitions. As used in this contract—

HUBZone small business concern means a small business concern that meets the requirements described in 13 CFR 126.200, certified by the Small Business Administration (SBA) and designated by SBA as a HUBZone small business concern in the Dynamic Small Business Search (DSBS) and SAM.

− Service-disabled veteran-owned small business (SDVOSB) concern means a small business concern—

− (1)

+ Service-disabled veteran-owned small business (SDVOSB) concern means a small business concern— (1)

(i) Not less than 51 percent of which is owned and controlled 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; or

(2) A small business concern eligible under the SDVOSB Program in accordance with 13 CFR part 128 (see subpart 19.14).

(3) Service-disabled veteran, as used in this definition, 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), and who is registered in the Beneficiary Identification and Records Locator Subsystem, or successor system that is maintained by the Department of Veterans Affairs’ Veterans Benefits Administration, as a service-disabled veteran.

− Service-disabled veteran-owned small business (SDVOSB) concern eligible under the SDVOSB Program means an SDVOSB concern that—

− (1)

− Effective January 1, 2024, is designated in the System for Award Management (SAM) as certified by the Small Business Administration (SBA) in accordance with 13 CFR 128.300; or

− (2)

− Has represented that it is an SDVOSB concern in SAM and submitted a complete application for certification to SBA on or before December 31, 2023.

+ Service-disabled veteran-owned small business (SDVOSB) concern eligible under the SDVOSB Program means an SDVOSB concern that— (1) Effective January 1, 2024, is designated in the System for Award Management (SAM) as certified by the Small Business Administration (SBA) in accordance with 13 CFR 128.300; or

+ (2) Has represented that it is an SDVOSB concern in SAM and submitted a complete application for certification to SBA on or before December 31, 2023.

Service-disabled veteran-owned small business (SDVOSB) Program means a program that authorizes contracting officers to limit competition, including award on a sole-source basis, to SDVOSB concerns eligible under the SDVOSB Program.

− Small business concern means a concern, including its affiliates, that is independently owned and operated, not dominant in its field of operation and qualified as a small business under the criteria and size standards in 13 CFR part 121, including the size standard that corresponds to the NAICS code assigned to the contrac t or subcontract.

− Small disadvantaged business concern, consistent with

− 13 CFR 124.1001, means a small business concern under the size standard applicable to the acquisition, that-

− (1)

− Is at least 51 percent of which is owned and controlled (as defined at 13 CFR 124.105) by-

− (i)

− One or more socially disadvantaged (as defined at 13 CFR 124.103) and economically disadvantaged (as defined at 13 CFR 124.104) individuals who are citizens of the United States; and

− (ii)

− Each individual claiming economic disadvantage has a net worth not exceeding the threshold at 13 CFR 124.104(c)(2) after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2); and

− (2)

− The management and daily business operations of which are controlled (as defined at 13.CFR 124.106) by individuals, who meet the criteria in paragraphs (1)(i) and (ii) of this definition.

− 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.

+ Small business concern means a concern, including its affiliates, that is independently owned and operated, not dominant in its field of operation and qualified as a small business under the criteria and size standards in 13 CFR part 121, including the size standard that corresponds to the NAICS code assigned to the contract or subcontract.

+ Small disadvantaged business concern, consistent with 13 CFR 124.1001, means a small business concern under the size standard applicable to the acquisition, that- (1) Is at least 51 percent of which is owned and controlled (as defined at 13 CFR 124.105) by-

+ (i) One or more socially disadvantaged (as defined at 13 CFR 124.103) and economically disadvantaged (as defined at 13 CFR 124.104) individuals who are citizens of the United States; and

+ (ii) Each individual claiming economic disadvantage has a net worth not exceeding the threshold at 13 CFR 124.104(c)(2) after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2); and

+ (2) The management and daily business operations of which are controlled (as defined at 13.CFR 124.106) by individuals, who meet the criteria in paragraphs (1)(i) and (ii) of this definition.

+ 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 small business concern means a small business concern-

(1)

This

clause does not apply to the unrestricted portion of a partial set-aside.

− (b)

− Definition.

− Similarly

− situated entity, as used in this clause, means a first-tier

− subcontractor, including an independent contractor, that—

− (1)

− Has

− the same small business program status as that which qualified the

− prime contractor for the award (e.g., for a small business

− set-aside contract, any small business concern, without regard to

− its socioeconomic status); and

− (2)

− Is considered

− small for the size standard under the North American Industry Classification

− System (NAICS) code the prime contractor assigned to the subcontract.

+ (b) Definition.

+ Similarly situated entity, as used in this clause, means a first-tier subcontractor, including an independent contractor, that— (1) Has the same small business program status as that which qualified the prime contractor for the award (e.g., for a small business set-aside contract, any small business concern, without regard to its socioeconomic status); and

+ (2) Is considered small for the size standard under the North American Industry Classification System (NAICS) code the prime contractor assigned to the subcontract.

(c)

Applicability. This

Compensation means any payments made to, or on behalf of, an employee or offered to an applicant as remuneration for employment, including but not limited to salary, wages, overtime pay, shift differentials, bonuses, commissions, vacation and holiday pay, allowances, insurance and other benefits, stock options and awards, profit sharing, and retirement.

Compensation information means the amount and type of compensation provided to employees or offered to applicants, including, but not limited to, the desire of the Contractor to attract and retain a particular employee for the value the employee is perceived to add to the Contractor's profit or productivity; the availability of employees with like skills in the marketplace; market research about the worth of similar jobs in the relevant marketplace; job analysis, descriptions, and evaluations; salary and pay structures; salary surveys; labor union agreements; and Contractor decisions, statements and policies related to setting or altering employee compensation.

− Essential job functions means the fundamental job duties of the employment position an individual holds. A job function may be considered essential if-

− (1) The access to compensation information is necessary in order to perform that function or another routinely assigned business task; or

+ Essential job functions means the fundamental job duties of the employment position an individual holds. A job function may be considered essential if- (1) The access to compensation information is necessary in order to perform that function or another routinely assigned business task; or

(2) The function or duties of the position include protecting and maintaining the privacy of employee personnel records, including compensation information.

Gender identity has the meaning given by the Department of Labor’s Office of Federal Contract Compliance Programs, and is found at http://www.dol.gov/ofccp/LGBT/LGBT_FAQs.html.

22.1705(a)(1), insert

the following clause:

− Combating Trafficking

− in Persons (Nov 2021)

+ Combating Trafficking in Persons (Oct 2025)

(a)

Definitions.

As prescribed in

22.1705(b), insert the following provision:

− Certification Regarding Trafficking in Persons Compliance Plan (Oct 2020)

+ Certification Regarding Trafficking in Persons Compliance Plan (Oct 2025)

(a)

The term "commercially available off-the-shelf (COTS) item," is defined in the clause of this solicitation entitled "Combating Trafficking in Persons" (FAR clause 52.222-50).

(a)

Definitions. As used in this clause-

− Postconsumer materialmeans a material or finished product that has served its intended use and has been discarded for disposal or recovery, having completed its life as a consumer item. Postconsumer material is a part of the broader category of "recovered material."

+ Postconsumer material means a material or finished product that has served its intended use and has been discarded for disposal or recovery, having completed its life as a consumer item. Postconsumer material is a part of the broader category of "recovered material."

"Recovered material" means waste materials and by-products recovered or diverted from solid waste, but the term does not include those materials and by-products generated from, and commonly reused within, an original manufacturing process.

(b)

As prescribed in

25.1101(e), insert the following clause:

− Duty-Free Entry (Oct 2010)

+ Duty-Free Entry (Oct 2025)

(a)

Definition. "Customs territory of the United States" means the States, the District of Columbia, and Puerto Rico.

Definitions.

As used in this provision—

− Manufactured end product means

− any end product in product and service codes (PSCs) 1000-9999, except-

− (1) FPSC

− 5510, Lumber and Related Basic Wood Materials;

− (2) Product

− or Service Group (PSG) 87, Agricultural Supplies;

− (3) PSG 88,

− Live Animals;

− (4) PSG 89,

− Subsistence;

− (5) PSC 9410,

− Crude Grades of Plant Materials;

− (6) PSC 9430,

− Miscellaneous Crude Animal Products, Inedible;

− (7) PSC 9440,

− Miscellaneous Crude Agricultural and Forestry Products;

− (8) PSC 9610,

− Ores;

− (9) PSC 9620,

− Minerals, Natural and Synthetic; and

− (10) PSC 9630,

− Additive Metal Materials.

− 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.

+ Manufactured end product means any end product in product and service codes (PSCs) 1000-9999, except- (1) FPSC 5510, Lumber and Related Basic Wood Materials;

+ (2) Product or Service Group (PSG) 87, Agricultural Supplies;

+ (3) PSG 88, Live Animals;

+ (4) PSG 89, Subsistence;

+ (5) PSC 9410, Crude Grades of Plant Materials;

+ (6) PSC 9430, Miscellaneous Crude Animal Products, Inedible;

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

+ (8) PSC 9610, Ores;

+ (9) PSC 9620, Minerals, Natural and Synthetic; and

+ (10) PSC 9630, Additive Metal Materials.

+ 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.

(b) For statistical

purposes only, the offeror shall indicate whether the place of manufacture

(a)

Definitions. As used in this clause-

− Chief of missionmeans 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 (Public Law 96-465) to be temporarily in charge of such a mission or office.

− Combatant commandermeans the commander of a unified or specified combatant command established in accordance with 10 U.S.C. 161.

+ 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 (Public Law 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.

+ 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.

Definitions. As used in this provision-

Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.

− Marginalized populations of Sudan means-

− (1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) ( 50 U.S.C. 1701 note); and

+ Marginalized populations of Sudan means- (1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) ( 50 U.S.C. 1701 note); and

(2) Marginalized areas in Northern Sudan described in section 4(9) of such Act.

− 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;

+ 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;

material, or supply incorporated directly into a construction

material.

− Construction material means an

− article, material, or supply brought to the construction site

− by the Contractor or subcontractor for incorporation into the

− building or work. The term also includes an item brought to

− the site preassembled from articles, materials, or supplies.

− However, emergency lifes afety systems, such as emergency

− lighting, fire alarm, and audio evacuation systems, that are

− discrete systems incorporated into a public building or work

− and that are produced as complete systems, are evaluated as a

− single and distinct construction material regardless of when

− or how the individual parts or components of those systems are

− delivered to the construction site.

− Designated country means any of

− the following countries:

− (1) A World Trade Organization

− Government Procurement Agreement (WTO GPA) country

− (Armenia, Aruba, Australia, Austria, Belgium, Bulgaria,

− Canada, Croatia, Cyprus, Czech Republic, Denmark,

− Estonia, Finland, France, Germany, Greece, Hong Kong,

− Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea

− (Republic of), Latvia, Liechtenstein, Lithuania,

− Luxembourg, Malta, Moldova, Montenegro, Netherlands, New

− Zealand, North Macedonia, Norway, Poland, Portugal,

− Romania, Singapore, Slovak Republic, Slovenia, Spain,

− Sweden, Switzerland, Taiwan, Ukraine, or United

− Kingdom);

− (2) A Free Trade Agreement

− (FTA) country (Australia, Bahrain, Chile, Colombia,

− Costa Rica, Dominican Republic, El Salvador, Guatemala,

− Honduras, Korea (Republic of), Mexico, Morocco,

− Nicaragua, Oman, Panama, Peru, or Singapore);

− (3) A least developed country

− (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina

− Faso, Burundi, Cambodia, Central African Republic, Chad,

− Comoros, Democratic Republic of Congo, Djibouti,

− Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea,

− Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia,

− Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal,

− Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal,

− Sierra Leone, Solomon Islands, Somalia, South Sudan,

− Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu,

− Yemen, or Zambia); or

− (4) A Caribbean Basin country

− (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize,

− Bonaire, British Virgin Islands, Curacao, Dominica,

− Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.

− Kitts and Nevis, St. Lucia, St. Vincent and the

− Grenadines, Sint Eustatius, Sint Maarten, or Trinidad

− and Tobago).

+ Construction material means an article, material, or supply brought to the construction site by the Contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site.

+ Designated country means any of the following countries: (1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom);

+ (2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);

+ (3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or

+ (4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).

Designated country construction

material means a construction material that is a WTO GPA

As used in this clause-

Invention means any invention or discovery that is or may be patentable or otherwise protectable under title 35 of the U.S. Code, or any variety of plant that is or may be protectable under the Plant Variety Protection Act (7 U.S.C. 2321, et seq.)

− Made means-

− (1) When used in relation to any invention other than a plant variety, the conception or first actual reduction to practice of the invention; or

+ Made means-(1) When used in relation to any invention other than a plant variety, the conception or first actual reduction to practice of the invention; or

(2) When used in relation to a plant variety, that the Contractor has at least tentatively determined that the variety has been reproduced with recognized characteristics.

Nonprofit organization means a university or other institution of higher education or an organization of the type described in section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation under section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)), or any nonprofit scientific or educational organization qualified under a State nonprofit organization statute.

− "Practical application" means to manufacture, in the case of a composition of product; to practice, in the case of a process or method; or to operate, in the case of a machine or system; and, in each case, under such conditions as to establish that the invention is being utilized and that its benefits are, to the extent permitted by law or Government regulations, available to the public on reasonable terms.

+ Practical application means to manufacture, in the case of a composition of product; to practice, in the case of a process or method; or to operate, in the case of a machine or system; and, in each case, under such conditions as to establish that the invention is being utilized and that its benefits are, to the extent permitted by law or Government regulations, available to the public on reasonable terms.

Subject invention means any invention of the Contractor made in the performance of work under this contract.

(b)

Definitions. As used in this clause-

Computer database or "database means" a collection of recorded information in a form capable of, and for the purpose of, being stored in, processed, and operated on by a computer. The term does not include computer software.

− Computer software-

− (1)

− Means

− (i)

− Computer programs that comprise a series of instructions, rules, routines, or statements, regardless of the media in which recorded, that allow or cause a computer to perform a specific operation or series of operations; and

− (ii)

− Recorded information comprising source code listings, design details, algorithms, processes, flow charts, formulas, and related material that would enable the computer program to be produced, created, or compiled.

− (2)

− Does not include computer databases or computer software documentation.

+ Computer software- (1) Means

+ (i) Computer programs that comprise a series of instructions, rules, routines, or statements, regardless of the media in which recorded, that allow or cause a computer to perform a specific operation or series of operations; and

+ (ii) Recorded information comprising source code listings, design details, algorithms, processes, flow charts, formulas, and related material that would enable the computer program to be produced, created, or compiled.

+ (2) Does not include computer databases or computer software documentation.

Computer software documentation means owner’s manuals, user’s manuals, installation instructions, operating instructions, and other similar items, regardless of storage medium, that explain the capabilities of the computer software or provide instructions for using the software.

Data means recorded information, regardless of form or the media on which it may be recorded. The term includes technical data and computer software. The term does not include information incidental to contract administration, such as financial, administrative, cost or pricing, or management information.

Definitions. As used in this clause-

Computer database or "database" means a collection of recorded information in a form capable of, and for the purpose of, being stored in, processed, and operated on by a computer. The term does not include computer software.

− Computer software-

− (1) Means.

+ Computer software- (1) Means.

(i) Computer programs that comprise a series of instructions, rules, routines, or statements, regardless of the media in which recorded, that allow or cause a computer to perform a specific operation or series of operations; and

(ii) Recorded information comprising source code listings, design details, algorithms, processes, flow charts, formulas, and related material that would enable the computer program to be produced, created, or compiled.

52.232-22 Limitation of Funds.

− As prescribed in

− 32.706-2(b), insert the following clause. The 60-day period may be varied from 30 to 90 days and the 75 percent from 75 to 85 percent. "Task Order" or other appropriate designation may be substituted for "Schedule" wherever that word appears in the clause:

+ As prescribed in 32.706-2(b), insert the following clause. The 60-day period may be varied from 30 to 90 days and the 75 percent from 75 to 85 percent. "Task Order" or other appropriate designation may be substituted for "Schedule" wherever that word appears in the clause:

Limitation of Funds (Apr 1984)

(a) The parties estimate that performance of this contract will not cost the Government more than (1) the estimated cost specified in the Schedule or, (2)if this is a cost-sharing contract, the Government’s share of the estimated cost specified in the Schedule. The Contractor agrees to use its best efforts to perform the work specified in the Schedule and all obligations under this contract within the estimated cost, which, if this is a cost-sharing contract, includes both the Government’s and the Contractor’s share of the cost.

(b) The Schedule specifies the amount presently available for payment by the Government and allotted to this contract, the items covered, the Government’s share of the cost if this is a cost-sharing contract, and the period of performance it is estimated the allotted amount will cover. The parties contemplate that the Government will allot additional funds incrementally to the contract up to the full estimated cost to the Government specified in the Schedule, exclusive of any fee. The Contractor agrees to perform, or have performed, work on the contract up to the point at which the total amount paid and payable by the Government under the contract approximates but does not exceed the total amount actually allotted by the Government to the contract.

(c) The Contractor shall notify the Contracting Officer in writing whenever it has reason to believe that the costs it expects to incur under this contract in the next 60 days, when added to all costs previously incurred, will exceed 75 percent of (1) the total amount so far allotted to the contract by the Government or, (2)if this is a cost-sharing contract, the amount then allotted to the contract by the Government plus the Contractor’s corresponding share. The notice shall state the estimated amount of additional funds required to continue performance for the period specified in the Schedule.

− (d) Sixtydays before the end of the period specified in the Schedule, the Contractor shall notify the Contracting Officer in writing of the estimated amount of additional funds, if any, required to continue timely performance under the contract or for any further period specified in the Schedule or otherwise agreed upon, and when the funds will be required.

+ (d) Sixty days before the end of the period specified in the Schedule, the Contractor shall notify the Contracting Officer in writing of the estimated amount of additional funds, if any, required to continue timely performance under the contract or for any further period specified in the Schedule or otherwise agreed upon, and when the funds will be required.

(e) If, after notification, additional funds are not allotted by the end of the period specified in the Schedule or another agreed-upon date, upon the Contractor’s written request the Contracting Officer will terminate this contract on that date in accordance with the provisions of the Termination clause of this contract. If the Contractor estimates that the funds available will allow it to continue to discharge its obligations beyond that date, it may specify a later date in its request, and the Contracting Officer may terminate this contract on that later date.

(f) Except as required by other provisions of this contract, specifically citing and stated to be an exception to this clause-

(a)

Definitions. As used in this clause—

− American Security Drone Act-covered foreign entitymeans an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov (section 1822 of the National Defense Authorization Act for Fiscal Year 2024, Pub. L. 118-31, 41 U.S.C. 3901 note prec.).

− FASC-prohibited unmanned aircraft systemmeans an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity.

− Unmanned aircraftmeans an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft (49 U.S.C. 44801(11)).

− Unmanned aircraft systemmeans an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system (49 U.S.C. 44801(12)).

+ American Security Drone Act-covered foreign entity means an entity included on a list developed and maintained by the Federal Acquisition Security Council (FASC) and published in the System for Award Management (SAM) at https://www.sam.gov (section 1822 of the National Defense Authorization Act for Fiscal Year 2024, Pub. L. 118-31, 41 U.S.C. 3901 note prec.).

+ FASC-prohibited unmanned aircraft system means an unmanned aircraft system manufactured or assembled by an American Security Drone Act-covered foreign entity.

+ Unmanned aircraft means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft (49 U.S.C. 44801(11)).

+ Unmanned aircraft system means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the operator to operate safely and efficiently in the national airspace system (49 U.S.C. 44801(12)).

(b)

Prohibition. The Contractor is prohibited from—

− 52.241 Utility Services Provisions and Clauses.

+ 52.241 [Reserved]

the following clause:

Penalties for Unallowable Costs (Dec 2022)

− (a)

− Definition.

− Proposal,

− as used in this clause, means either—

− (1) A final indirect

− cost rate proposal submitted by the Contractor after the expiration

− of its fiscal year which-

− (i) Relates to any payment made on

− the basis of billing rates; or

− (ii) Will be

− used in negotiating the final contract price; or

− (2) The final

− statement of costs incurred and estimated to be incurred under the

− Incentive Price Revision clause (if applicable), which is used to

− establish the final contract price.

+ (a) Definition.

+ Proposal, as used in this clause, means either— (1) A final indirect cost rate proposal submitted by the Contractor after the expiration of its fiscal year which-

+ (i) Relates to any payment made on the basis of billing rates; or

+ (ii) Will be used in negotiating the final contract price; or

+ (2) The final statement of costs incurred and estimated to be incurred under the Incentive Price Revision clause (if applicable), which is used to establish the final contract price.

(b) Contractors which include unallowable indirect costs in a proposal may be subject to penalties. The penalties are prescribed in

10 U.S.C. 3748

, insert the

following clause:

− Subcontracts for Commercial Products and Commercial Services (Jan 2025)

+ Subcontracts for Commercial Products and Commercial Services (Oct 2025)

(a)

Definitions. As

(a)

Definitions. As used in this clause-

− Cannibalizemeans to remove parts from Government property for use or for installation on other Government property.

+ Cannibalize means to remove parts from Government property for use or for installation on other Government property.

Contractor-acquired property means property acquired, fabricated, or otherwise provided by the Contractor for performing a contract, and to which the Government has title.

− Contractor inventory means-

− (1) Any property acquired by and in the possession of a Contractor or subcontractor under a contract for which title is vested in the Government and which exceeds the amounts needed to complete full performance under the entire contract;

+ Contractor inventory means- (1) Any property acquired by and in the possession of a Contractor or subcontractor under a contract for which title is vested in the Government and which exceeds the amounts needed to complete full performance under the entire contract;

(2) Any property that the Government is obligated or has the option to take over under any type of contract, e.g., as a result either of any changes in the specifications or plans thereunder or of the termination of the contract (or subcontract thereunder), before completion of the work, for the convenience or at the option of the Government; and

(3) Government-furnished property that exceeds the amounts needed to complete full performance under the entire contract.

− Contractor’s managerial personnel means the Contractor’s directors, officers, managers, superintendents, or equivalent representativeswho have supervision or direction of-

− (1) All or substantially all of the Contractor’s business;

+ Contractor’s managerial personnel means the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of- (1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operation at any one plant or separate location; or

(3) A separate and complete major industrial operation.

(a)

Definitions. As used in this clause-

− Contractor’s managerial personnel means any of the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of-

− (1) All or substantially all of the Contractor’s business;

+ Contractor’s managerial personnel means any of the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of- (1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operation at a plant or separate location where the contract is being performed; or

(3) A separate and complete major industrial operation connected with performing this contract.

(a)

Definitions. As used in this clause-

− Contractor’s managerial personnel means any of the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of-

− (1) All or substantially all of the Contractor’s business;

+ Contractor’s managerial personnel means any of the Contractor’s directors, officers, managers, superintendents, or equivalent representatives who have supervision or direction of- (1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operation at any one plant or separate location where the contract is being performed; or

(3) A separate and complete major industrial operation connected with the performance of this contract.

Definitions. As used in this clause-

Acceptance means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, ownership of existing supplies, or approves specific services as partial or complete performance of the contract.

− Suppliesmeans the end items furnished by the Contractor and related services required under this contract. The word does not include "data."

+ Supplies means the end items furnished by the Contractor and related services required under this contract. The word does not include "data."

(b)

Contractor’s obligations.

(viii) Weight of empty pallet bottom/skid and sides _____ Lbs;

(ix) Size of pallet/skid and contents _____ Lbs Cube _____;

− (x)

− Number of containers or pallets/skids per railcar _____ *

− (A)

− Size of railcar _____

− (B)

− Type of railcar _____

− (xi)

− Number of containers or pallets/skids per trailer _____*

− (A)

− Size of trailer _____ Ft

− (B)

− Type of trailer _____

+ (x) Number of containers or pallets/skids per railcar _____ *

+ (A) Size of railcar _____

+ (B) Type of railcar _____

+ (xi) Number of containers or pallets/skids per trailer _____*

+ (A) Size of trailer _____ Ft

+ (B) Type of trailer _____

* Number of complete units (line item) to be shipped in carrier’s equipment.

(2) To be completed by the Government after evaluation but before contract award:

48.202

, insert the following clause:

− Value Engineering-Construction (Oct 2020)

+ Value Engineering-Construction (Oct 2025)

(a)

General. The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP’s) voluntarily. The Contractor shall share in any instant contract savings realized from accepted VECP’s, in accordance with paragraph (f) of this clause.

(a)

Definitions. As used in this provision-

− Act of terrorism means any act determined to have met the following requirements or such other requirements as defined and specified by the Secretary of Homeland Security:

− (1) Is unlawful.

+ Act of terrorism means any act determined to have met the following requirements or such other requirements as defined and specified by the Secretary of Homeland Security: (1) Is unlawful.

(2) Causes harm, including financial harm, to a person, property, or entity, in the United States, or in the case of a domestic United States air carrier or a United States-flag vessel (or a vessel based principally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), in or outside the United States.

(3) Uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause mass destruction, injury or other loss to citizens or institutions of the United States.

(a)

Definitions. As used in this provision-

− Act of terrorism means any act determined to have met the following requirements or such other requirements as defined and specified by the Secretary of Homeland Security:

− (1) Is unlawful.

+ Act of terrorism means any act determined to have met the following requirements or such other requirements as defined and specified by the Secretary of Homeland Security: (1) Is unlawful.

(2) Causes harm, including financial harm, to a person, property, or entity, in the United States, or in the case of a domestic United States air carrier or a United States-flag vessel (or a vessel based principally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), in or outside the United States.

(3) Uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause mass destruction, injury or other loss to citizens or institutions of the United States.

(a)

Definitions. As used in this clause-

− Act of terrorism means any act determined to have met the following requirements or such other requirements as defined and specified by the Secretary of Homeland Security:

− (1) Is unlawful.

+ Act of terrorism means any act determined to have met the following requirements or such other requirements as defined and specified by the Secretary of Homeland Security: (1) Is unlawful.

(2) Causes harm, including financial harm, to a person, property, or entity, in the United States, or in the case of a domestic United States air carrier or a United States-flag vessel (or a vessel based principally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), in or outside the United States.

(3) Uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause mass destruction, injury or other loss to citizens or institutions of the United States.