Acquisition regulations: Bonds and insurance,

[Federal Register: July 27, 1999 (Volume 64, Number 143)]

[Rules and Regulations]

[Page 40518-40519]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr27jy99-8]

DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 828 and 852

RIN 2900-AJ47

VA Acquisition Regulation: Bonds and Insurance

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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

DATES: Effective Date: July 27, 1999.

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

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

[[Page 40519]]

allow the use of express delivery services, may simplify the return and tracking process, and is consistent with similar coverage in the Federal Acquisition Regulation (FAR) at 11.403(d) and 33.211(b).

This final rule provides that the Deputy Assistant Secretary for Acquisition and Materiel Management (DAS for A&MM) is delegated authority to act as the Secretary's designee under section 28.203-7 of the FAR. Accordingly, the DAS for A&MM may make determinations to exclude individuals from acting as sureties on bonds and to accept bonds from individuals whose names appear on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs. We think the DAS for A&MM is the appropriate official to make these determinations.

This final rule concerns contracts and would not have a significant effect on individuals or entities. Accordingly, we are dispensing with prior notice and comment and a delayed effective date.

The Secretary hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612. This rule would not cause a significant effect on any entities. Therefore, pursuant to 5 U.S.C. 605(b), this rule is exempt from the initial and final regulatory flexibility analysis requirements of Secs. 603 and 604.

OMB Review

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

List of Subjects

48 CFR Part 828

Government procurement, Insurance, Surety bonds.

48 CFR Part 852

Government procurement, Reporting and recordkeeping requirements.

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

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

PART 828--BONDS AND INSURANCE

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

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

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

   Subpart 828.1--Bonds and Other Financial Protections

   828.101-3 [Redesignated as 828.101-2]

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

   828.101-70 [Amended]

4. Section 828.101-70, paragraph (a) is amended by removing ``certified mail or in person upon presentation of proper receipt after contract and bonds'' and adding, in its place, ``any method that will provide evidence of receipt, or in person upon presentation of proper receipt, after the contract and contract bonds''; paragraph (b) is amended by removing ``certified mail, or'' and adding, in its place, ``by any method that will provide evidence of receipt or''; and paragraph (c) is amended by removing ``until contract and bonds'' and adding, in its place, ``until the contract and contract bonds''.

5. Section 828.106 heading is added immediately preceding 828.106-6 to read as follows:

   828.106 Administration.

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

   828.106-6 Furnishing information.

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

7. Subpart 828.2 is added to read as follows:

   Subpart 828.2--Sureties and Other Security for Bonds

   828.203-7 Exclusion of individual sureties.

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

   828.306 [Amended]

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

9. The heading of Subpart 828.70 is removed.

   828.7000 [Redesignated as 828.106-70]

10. Section 828.7000 is redesignated as 828.106-70.

    828.7100 [Amended]

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

    828.7103 [Amended]

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

    PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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

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

    852.228-70 [Amended]

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

    [FR Doc. 99-19107Filed7-26-99; 8:45 am]

    BILLING CODE 8320-01-P