HUD Acquisition Regulation (HUDAR)

Citation84 FR 15128
Record Number2019-07320
Published date15 April 2019
SectionRules and Regulations
CourtHousing And Urban Development Department
Federal Register, Volume 84 Issue 72 (Monday, April 15, 2019)
[Federal Register Volume 84, Number 72 (Monday, April 15, 2019)]
                [Rules and Regulations]
                [Pages 15128-15142]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-07320]
                =======================================================================
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                DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                48 CFR Parts 2402, 2416, 2437, 2442, and 2452
                [Docket No. FR-6041-F-02]
                RIN 2501-AD85
                HUD Acquisition Regulation (HUDAR)
                AGENCY: Office of the Chief Procurement Officer, HUD.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: This rule amends various provisions of the HUD Acquisition
                Regulation (HUDAR). These provisions include incorporation of several
                clauses and associated additions to the HUDAR matrix, replacement of
                references to Government Technical Representatives (GTRs) with
                references to Contracting Officer's Representatives (CORs),
                codification of deviations approved by HUD's Chief Procurement Officer
                (CPO) and minor corrections to clauses, provisions, and the HUDAR
                matrix. This final rule follows a proposed rule published on April 9,
                2018 and implements the proposed rule without change except to remove
                obsolete definitions.
                DATES: Effective date: May 15, 2019.
                FOR FURTHER INFORMATION CONTACT: Dr. Akinsola A. Ajayi, Assistant Chief
                Procurement Officer for Policy, Systems and Risk Management, Office of
                the Chief Procurement Officer, Department of Housing and Urban
                Development, 451 7th Street SW, Washington, DC 20410; telephone number
                202-708-0294 (this is not a toll-free number), fax number 202-708-8912.
                Persons with hearing or speech impairments may access Dr. Ajayi's
                telephone number via TTY by calling the toll-free Federal Relay Service
                at 800-877-8339.
                SUPPLEMENTARY INFORMATION:
                I. Background
                 The HUDAR is codified at title 48, chapter 24 of the Code of
                Federal Regulations. HUD revises the HUDAR from time to time. The
                revision prior to this one was published on March 15, 2016 (81 FR
                13747).
                 This final rule follows a proposed rule that was published at 83 FR
                15101 (April 9, 2018). The rule proposed, among other things, a change
                in terminology from ``Government Technical Representative'' to
                ``Contracting Officer's Representative,'' abbreviated COR. The rule
                also proposed to codify previously used agency-specific clauses
                entitled ``Level of Effort and Fee Payment'' and ``Labor Categories,
                Requirements, and Estimated Level of Effort.'' A clause was proposed to
                address access to controlled unclassified information, which is defined
                as any information the disclosure of which would harm the national
                interest, the conduct of Federal programs, or the privacy to which
                individuals are entitled under the Privacy Act; the clause requires
                offerors with whom the government shares this kind of information to
                execute a nondisclosure agreement. The proposed rule also included a
                clause requiring contractors to report on the status of Personal
                Identity Verification (PIV) cards on a quarterly basis. A number of
                other minor revisions were made. Please refer to the proposed rule (83
                FR 15101) for details.
                II. Public Comments
                 The public comment period opened on publication and closed on June
                8, 2018. No relevant public comments were received.
                [[Page 15129]]
                III. This Final Rule
                 At this final rule stage, HUD adopts the proposed rule without
                change.
                IV. Findings and Certifications
                Paperwork Reduction Act Statement
                 The information collection requirements contained in this rule have
                been approved by the Office of Management and Budget (OMB) under the
                Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB
                Control Number 2535-0091. In accordance with the Paperwork Reduction
                Act, an agency may not conduct or sponsor, and a person is not required
                to respond to, a collection of information unless the collection
                displays a currently valid OMB control number.
                Unfunded Mandates Reform Act
                 Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
                1531-1538) (UMRA) establishes requirements for Federal agencies to
                assess the effects of their regulatory actions on state, local, and
                tribal governments and the private sector. This rule does not impose
                any Federal mandate on any state, local, or tribal government or the
                private sector within the meaning of UMRA.
                Regulatory Flexibility Act
                 The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
                generally requires an agency to conduct a regulatory flexibility
                analysis of any rule subject to notice and comment rulemaking
                requirements, unless the agency certifies that the rule will not have a
                significant economic impact on a substantial number of small entities.
                This final rule makes technical changes to existing contracting
                procedures and does not make any major changes that would significantly
                impact businesses. Accordingly, the undersigned certifies that this
                rule will not have a significant economic impact on a substantial
                number of small entities. Notwithstanding HUD's determination that this
                rule will not have a significant economic impact on a substantial
                number of small entities, HUD specifically invites comments regarding
                less burdensome alternatives to this rule that will meet HUD's
                objectives as described in this preamble.
                Environmental Impact
                 This final rule does not direct, provide for assistance or loan and
                mortgage insurance for, or otherwise govern or regulate real property
                acquisition, disposition, leasing, rehabilitation, alteration,
                demolition, or new construction, or establish, revise, or provide for
                standards for construction or construction materials, manufactured
                housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
                final rule is categorically excluded from environmental review under
                the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
                Executive Order 13132, Federalism
                 Executive Order 13132 (entitled ``Federalism'') prohibits an agency
                from publishing any rule that has federalism implications if the rule
                imposes substantial direct compliance costs on state and local
                governments and is not required by statute, or the rule preempts state
                law, unless the agency meets the consultation and funding requirements
                of section 6 of the Executive Order. This final rule would not have
                federalism implications and would not impose substantial direct
                compliance costs on state and local governments or preempt state law
                within the meaning of the Executive Order.
                List of Subjects in 48 CFR Parts 2402, 2416, 2437, 2442, and 2452
                 Government procurement.
                 Accordingly, for the reasons discussed in the preamble, HUD amends
                48 CFR parts 2402, 2416, 2437, 2442, and 2452 as follows:
                PART 2402--DEFINITIONS OF WORDS AND TERMS
                0
                1. The authority citation for part 2402 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
                2402.101 [Amended]
                0
                2. Amend 2402.101 by removing the definitions of ``Government Technical
                Monitor (GTM)'' and ``Government Technical Representative (GTR)''.
                PART 2416--TYPES OF CONTRACTS
                0
                3. The authority citation for part 2416 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
                0
                4. Amend 2416.506-70 by revising paragraph (c) and adding paragraphs
                (e) and (f) to read as follows:
                2416.506-70 Solicitation provisions and contract clauses.
                * * * * *
                 (c) Estimated quantities--requirements contract. The Contracting
                Officer shall insert the clause at 2452.216-77, Estimated Quantities--
                Requirements Contract, in all solicitations for requirements contracts.
                * * * * *
                 (e) Level of effort and fee payment. The Contracting Officer shall
                insert clause 2452.216-81, Level of Effort and Fee Payment, in all
                level-of-effort term contracts.
                 (f) Labor categories, requirements, and estimated level of effort.
                The Contracting Officer shall insert provision 2452.216-82, Labor
                Categories, Requirements, and Estimated Level of Effort, in all level-
                of-effort solicitations. Contracting Officer's Representatives will
                provide the labor descriptions and estimated number of hours.
                Contracting Officers will obtain wage rate determinations for any
                classifications covered by the Service Contract Act.
                PART 2437--SERVICE CONTRACTING
                0
                5. The authority citation for part 2437 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
                0
                6. Amend 2437.110 by adding paragraphs (e)(7) and (8) to read as
                follows:
                2437.110 Solicitation provisions and contract clauses.
                 (e) * * *
                 (7) The Contracting Officer shall insert provision 2452.237-82,
                Access to Controlled Unclassified Information (CUI), in Section L of
                solicitations when controlled unclassified information (``CUI''), as
                defined in the provision, will be provided to potential offerors for
                the purpose of preparing offers.
                 (8) The Contracting Officer shall insert clause 2452.237-83 in
                Section H, Access to Controlled Unclassified Information (CUI), of
                solicitations and contracts under which contractor and/or subcontractor
                employees will be granted access to controlled unclassified information
                (CUI) as defined in the clause.
                PART 2442--CONTRACT ADMINISTRATION AND AUDIT SERVICES
                0
                7. The authority citation for part 2442 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
                0
                8. Revise 2442.1107 to read as follows:
                2442.1107 Contract clause.
                 (a) For purposes of clause 2452.242-71, the term ``contract'' shall
                also include task orders and purchase orders.
                 (b) The Contracting Officer shall insert a clause substantially the
                same as
                [[Page 15130]]
                the clause at 2452.242-71, Contract Management System, in solicitations
                and contracts when all of the following conditions apply:
                 (1) A contract exceeds $1,000,000, including all options; and
                 (2) The contract is a completion type that requires the delivery of
                an overall end deliverable or solution (e.g., evaluation, study,
                model).
                 (c) To the extent the clause will not normally be included in
                commercial contracts meeting the requirements stated in paragraphs (a)
                and (b) of this section, and in instances where the clause is to be
                incorporated, pursuant to FAR 12.301(f), a waiver to the standard
                commercial requirements, to include the clause, is not required.
                 (d) The Contracting Officer shall use the basic clause for cost
                type, labor-hour, and time and materials contracts for the services
                described in paragraph (b) of this section. The clause shall be used
                with its alternate for fixed-price type contracts for the services
                described in paragraph (b). The Contracting Officer may elect to
                incorporate the clause into contracts below the established threshold.
                 (e) The clause is not applicable to contracts that only expend a
                level of effort without a completion deliverable/product due, e.g.,
                temporary services.
                 (f) This clause is not applicable to Information Technology service
                contracts being managed through Earned Value Management techniques that
                require reporting of Earned Value Management.
                PART 2452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
                0
                9. The authority citation for part 2452 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
                Subpart 2452.2--Texts of Provisions and Clauses
                0
                10. Revise 2452.203-70 to read as follows:
                2452.203-70 Prohibition against the use of Federal employees.
                 As prescribed in 2403.670, insert the following clause in
                solicitations and contracts:
                PROHIBITION AGAINST THE USE OF FEDERAL EMPLOYEES (APR 2019)
                 In accordance with Federal Acquisition Regulation 3.601,
                contracts are not to be awarded to Federal employees or a business
                concern or other organization owned or substantially owned or
                controlled by one or more Federal employees. For the purposes of
                this contract, this prohibition against the use of Federal employees
                includes any work performed by the Contractor or any of its
                employees, subcontractors, or consultants.
                (End of clause)
                0
                11. Revise 2452.208-71 to read as follows:
                2452.208-71 Reproduction of reports.
                 As prescribed in 2408.802-70, insert the following clause in
                solicitations and contracts where the Contractor is required to
                produce, as an end product, publications or other written materials:
                REPRODUCTION OF REPORTS (APR 2019)
                 In accordance with Title I of the Government Printing and
                Binding Regulations, printing of reports, data or other written
                material, if required herein, is authorized provided that the
                material produced does not exceed 5,000 production units of any page
                and that items consisting of multiple pages do not exceed 25,000
                production units in aggregate. The aggregate number of production
                units is determined by multiplying the number of pages by the number
                of copies. A production unit is one sheet, size 8.5 by 11 inches or
                less, printed on one side only and in one color. All copy
                preparation to produce camera-ready copy for reproduction must be
                set by methods other than hot metal typesetting. The reports should
                be produced by methods employing stencils, masters and plates which
                are to be used on single unit duplicating equipment no larger than
                11 by 17 inches with a maximum image of 10\3/4\ by 14\1/4\ inches
                and are prepared by methods or devices that do not utilize reusable
                contact negatives and/or positives prepared with a camera requiring
                a darkroom. All reproducibles (camera-ready copies for reproduction
                by photo offset methods) shall become the property of the Government
                and shall be delivered to the Government with the report, data, or
                other written materials.
                (End of clause)
                0
                12. Amend 2452.215-70 by revising Alternate II to read as follows:
                2452.215-70 Proposal content.
                * * * * *
                Alternate II
                 As prescribed in 2415.209(a), add the following paragraph (e) when
                the size of any proposal Part I or Part II will be limited:
                PROPOSAL CONTENT ALTERNATE II (APR 2019)
                 (e) Size limits of Parts I and II. (1) Offerors shall limit
                submissions of Parts I and II of their initial proposals to the page
                limitations identified in the Instructions to Offerors. Offerors are
                cautioned that, if any Part of their proposal exceeds the stipulated
                limits for that Part, the Government will evaluate only the
                information contained in the pages up through the permitted number.
                Pages beyond that limit will not be evaluated.
                 (2) A page shall consist of one side of a single sheet of 8.5''
                x 11'' paper, single-spaced, using not smaller than 12-point type
                font, and having margins at the top, bottom, and sides of the page
                of no less than one inch in width.
                 (3) Any exemptions from this limitation are stipulated under the
                Instructions to Offerors.
                 (4) Offerors are encouraged to use recycled paper and to use
                both sides of the paper (see the FAR clause at 52.204-4).
                (End of Provision)
                0
                13. Revise 2452.216-80 to read as follows:
                2452.216-80 Estimated cost and fixed-fee.
                 As prescribed in 2416.307(b), insert the following clause:
                ESTIMATED COST AND FIXED-FEE (APR 2019)
                 (a) It is estimated that the total cost to the Government for
                full performance of this contract will be $___[Contracting Officer
                insert amount], of which $___[Contracting Officer insert amount]
                represents the estimated reimbursable costs, and $___[Contracting
                Officer insert amount] represents the fixed fee.
                 (b) If this contract is incrementally funded, the following
                shall apply:
                 (1) Total funds currently available for payment and allotted to
                this contract are $___[Contracting Officer insert amount], of which
                $___[Contracting Officer insert amount] represents the limitation
                for reimbursable costs and $ ___[Contracting Officer insert amount]
                represents the prorated amount of the fixed fee (see also the clause
                at FAR 52.232-22, ``Limitation of Funds'' herein).
                 (2) If and when the contract is fully funded, as specified in
                paragraph (a) of this clause, the clause at FAR 52.232-20,
                ``Limitation of Cost,'' herein, shall become applicable.
                 (3) The Contracting Officer may allot additional funds to the
                contract up to the total specified in paragraph (a) of this clause
                without the concurrence of the contractor.
                (End of clause)
                0
                14. Add 2452.216-81 to read as follows:
                2452.216-81 Level of effort and fee payment.
                 As prescribed in 2416.506-70(f), insert the following clause in all
                level-of-effort term contracts:
                LEVEL OF EFFORT AND FEE PAYMENT (APR 2019)
                 (a) The total level of effort to be provided under this contract
                is ___hours. The Contractor shall be reimbursed for the actual labor
                costs incurred.
                 (b) The contractor shall be paid the fixed fee specified in
                B.__, Estimated Cost and Fixed Fee, herein, on a prorated basis in
                proportion to the percentage of the level of effort (LOE) performed
                at the time of billing in accordance with the following formula:
                (Number of acceptable hours delivered) divided by (Total hours in
                level of effort) x (Total fixed fee) = Fee payment
                (e.g., 1,000 hours delivered/10,000 hours (LOE) x $15,000 = $1,500)
                [[Page 15131]]
                 (c) In no event shall the amount of fee paid under the contract
                exceed the total fixed fee specified in B.[ ], Estimated Cost and
                Fixed Fee, herein.
                (End of clause)
                0
                15. Add 2452.216-82 to read as follows:
                2452.216-82 Labor categories, requirements, and estimated level of
                effort.
                 As prescribed in 2416.506-70(g), insert the following provision in
                all level-of-effort solicitations:
                LABOR CATEGORIES, REQUIREMENTS, AND ESTIMATED LEVEL OF EFFORT (APR
                2019)
                 (a) The Government anticipates that the following categories of
                labor shall be necessary to provide the services required by any
                contract resulting from this solicitation. Offerors must provide
                evidence that proposed staff meet the technical requirements for
                each category.
                 (1) [Insert labor titles and technical requirements]
                 (b) To assist offerors in the preparation of proposals, the
                Government estimates that the following levels of effort (staff
                hours) will be necessary to provide the services required by any
                contract resulting from this solicitation. These estimates are not
                binding on the Government. Offerors must break out their proposed
                costs by labor category. The contract performance period is intended
                to be for a total of [ ] months (a base period of [ ] months with [
                ] [insert number of options] [ ] [insert number of months per
                option]-month option periods. The actual duration of the base period
                may be different. Offerors may propose labor at different rates per
                contract period.
                 Staff Hours
                ----------------------------------------------------------------------------------------------------------------
                 1st option 2nd option 3rd option 4th option
                 Labor category Base period period period period period
                ----------------------------------------------------------------------------------------------------------------
                 [Insert titles and estimated number of hours per category]
                ----------------------------------------------------------------------------------------------------------------
                (End of provision)
                0
                16. Revise 2452.219-72 to read as follows:
                2452.219-72 Section 8(a) direct awards.
                 As prescribed in 2419.811-3(f), insert the following clause:
                SECTION 8(A) DIRECT AWARD (APR 2019)
                 (a) This contract is issued as a direct award between the
                Department of Housing and Urban Development (HUD) and the 8(a)
                Contractor pursuant to a Partnership Agreement (Agreement) between
                the Small Business Administration (SBA) and HUD. The SBA retains
                responsibility for 8(a) certification, 8(a) eligibility
                determinations and related issues, and providing counseling and
                assistance to the 8(a) contractor under the 8(a) program. The
                cognizant SBA district office is:
                 [To be completed by Contracting Officer at time of award].
                 (b) SBA is the prime contractor and ___[insert name of 8(a)
                contractor] is the subcontractor under this contract. Under the
                terms of the Agreement, HUD is responsible for administering the
                contract and taking any action on behalf of the Government under the
                terms and conditions of the contract. However, the HUD Contracting
                Officer shall give advance notice to the SBA before issuing a final
                notice terminating performance, either in whole or in part, under
                the contract. The HUD Contracting Officer shall also coordinate with
                SBA prior to processing any novation agreement(s). HUD may assign
                contract administration functions to a contract administration
                office.
                 (c) ___[insert name of 8(a) contractor] agrees:
                 (1) To notify the HUD Contracting Officer, simultaneously with
                its notification to SBA (as required by SBA's 8(a) regulations),
                when the owner or owners upon whom 8(a) eligibility is based, plan
                to relinquish ownership or control of the concern. Consistent with
                15 U.S.C. 637(a)(21), transfer of ownership or control shall result
                in termination of the contract for convenience unless SBA waives the
                requirement for termination prior to the actual relinquishing of
                ownership or control.
                 (2) To adhere to the requirements of FAR 52.219-14,
                ``Limitations on Subcontracting.''
                (End of Clause)
                0
                17. Revise Alternate II of 2452.232-70 to read as follows:
                2452.232-70 Payment schedule and invoice submission (Fixed-Price).
                * * * * *
                Alternate II (APR 2019)
                 As prescribed in HUDAR Section 2432.908(c)(2), replace
                paragraphs (b)(1) and (2) of the HUDAR Clause 2452.232-70 Payment
                Schedule and Invoice Submission (Fixed-price) with the following
                Alternate II language in all fixed-price solicitations and contracts
                when requiring invoices to be submitted electronically to the
                Department of Treasury's Bureau of Fiscal Services Invoice
                Processing Platform (IPP) system:
                 (b) Submission of invoices. (1) The Contractor shall obtain
                access and submit invoices to the Department of Treasury Bureau of
                Fiscal Services' Invoice Platform Processing System via the Web at
                URL: https://arc.publicdebt.treas.gov/ipp/fsippqrg.htm in accordance
                with the instructions on the website. To constitute a proper
                invoice, the invoice must include all items required by the FAR
                clause at 52.232-25, ``Prompt Payment.''
                 (2) To assist the Government in making timely payments, the
                Contractor is also requested to include on each invoice the
                appropriation number shown on the contract award document (e.g.,
                block 14 of the Standard Form (SF) 26, block 21 of the SF-33, or
                block 25 of the SF-1449).
                (End of Alternate II)
                0
                18. Revise 2452.232-71 to read as follows:
                2452.232-71 Voucher submission (cost-reimbursement, time-and-
                materials, and labor hour).
                 As prescribed in HUDAR Section 2432.908(c)(3), insert the following
                clause in all cost-reimbursable, time-and-materials, and labor-hour
                solicitations and contracts where vouchering and payments will NOT be
                made through the Department of Treasury's Bureau of Fiscal Services
                Invoice Processing Platform (IPP) system:
                2452.232-71 VOUCHER SUBMISSION (COST-REIMBURSEMENT, TIME-AND-MATERIALS,
                AND LABOR-HOUR) (APR 2019)
                 (a) Voucher submission. (1) The Contractor shall submit ___
                [Contracting Officer insert billing period, e.g., monthly], an
                original and two copies of each voucher. In addition to the items
                required by the clause at FAR 52.232-25, Prompt Payment, the voucher
                shall show the elements of cost for the billing period and the
                cumulative costs to date. The Contractor shall submit all vouchers,
                except for the final voucher, as follows: Original to the payment
                office and one copy each to the Contracting Officer and the
                Contracting Officer's Representative (COR) identified in the
                contract. The Contractor shall submit all copies of the final
                voucher to the Contracting Officer.
                 (2) To assist the Government in making timely payments, the
                Contractor is requested to include on each voucher the applicable
                appropriation number(s) shown on the award or subsequent
                modification document (e.g., block 14 of the Standard Form (SF) 26,
                or block 21 of the SF-33). The Contractor is also requested to
                clearly indicate on the mailing envelope that a payment voucher is
                enclosed.
                 (b) Contractor remittance information. (1) The Contractor shall
                provide the payment office with all information required by other
                payment clauses contained in this contract.
                 (2) The Contractor shall submit all necessary supporting
                documentation with vouchers that adequately demonstrate that costs
                claimed (1) have been incurred (including time sheets from the prime
                and subcontractor's automated or manual time tracking records and
                paid invoices for materials acquired), (2) reflect that they are
                allocable to the contract tasks, and (3) comply with cost principles
                in the Federal
                [[Page 15132]]
                Acquisition Regulation and HUD Acquisition Regulation. The
                Contracting Officer may disallow all or part of a claimed cost that
                is inadequately supported.
                 (3) For time-and-materials and labor-hour contracts, the
                Contractor shall aggregate vouchered costs by the individual task
                for which the costs were incurred and clearly identify the task or
                job.
                 (c) Final payment. The final payment shall not be made until the
                Contracting Officer has certified that the Contractor has complied
                with all terms of the contract.
                (End of clause)
                Alternate I (APR 2019)
                 As prescribed in HUDAR Section 2432.908(c)(3), replace
                paragraphs (a)(1) and (2) with the following Alternate I paragraphs
                to HUDAR Clause 2452.232-71, Voucher Submission (Cost Reimbursement,
                Time-and-Materials, and Labor Hour) in time and material, cost-
                reimbursable and labor hour solicitations and contracts other than
                performance-based under which performance-based payments will be
                used and where invoices are to be submitted electronically by email,
                but will not be paid through the Department of Treasury's Bureau of
                Fiscal Services Invoice Processing Platform (IPP) system.
                 (a) Voucher submission. (1) The Contractor shall submit vouchers
                electronically via email to the email addresses shown on the
                contract award document (e.g., block 12 of the Standard Form (SF)
                26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon
                copy the Contracting Officer and the Contracting Officer's
                Representative (COR). In addition to the items required by the
                clause at FAR 52.232-25, Prompt Payment, the voucher shall show the
                elements of cost for the billing period and the cumulative costs to
                date. The Contractor shall clearly include in the Subject line of
                the email: VOUCHER INCLUDED; CONTRACT/ORDER #: ___, VOUCHER NUMBER
                ___ and CONTRACT LINE ITEM NUMBER(S) ___
                 (2) To assist the Government in making timely payments, the
                Contractor is requested to include on each voucher the applicable
                appropriation number(s) shown on the award or subsequent
                modification document (e.g., block 14 of the Standard Form (SF) 26,
                or block 21 of the SF-33).
                (End of Alternate I)
                 As prescribed in HUDAR Section 2432.908(c)(3), replace paragraphs
                (a)(1) and (2) of the HUDAR Clause 2452.232-71, Voucher Submission
                (Cost- Reimbursement, Time-And-Materials, And Labor Hour) with the
                following Alternate II language in all cost-reimbursement, time-and-
                materials, and labor-hour type solicitations and contracts when
                requiring vouchers to be submitted electronically to the Department of
                Treasury's Bureau of Fiscal Services Invoice Processing Platform (IPP)
                system.
                Alternate II (APR 2019)
                 (a) Voucher submission. (1) The Contractor shall obtain access
                and submit invoices to the Department of Treasury Bureau of Fiscal
                Services' Invoice Platform Processing System via the Web at URL:
                https://arc.publicdebt.treas.gov/ipp/fsippqrg.htm in accordance with
                the instructions on the website. To constitute a proper voucher, in
                addition to the items required by the clause at FAR 52.232-25,
                Prompt Payment, the voucher shall show the elements of cost for the
                billing period and the cumulative costs to date.
                 (2) To assist the Government in making timely payments, the
                Contractor is requested to include on each voucher the applicable
                appropriation number(s) shown on the award or subsequent
                modification document (e.g., block 14 of the Standard Form (SF) 26,
                or block 21 of the SF-33).
                (End of Alternate II)
                0
                19. Revise 2452.237-73 to read as follows:
                2452.237-73 Conduct of work and technical guidance.
                 As prescribed in 2437.110(e)(2), insert the following clause in all
                contracts for services:
                CONDUCT OF WORK AND TECHNICAL GUIDANCE (APR 2019)
                 (a) The Contracting Officer will provide the Contractor with the
                name and contact information of the Contracting Officer's
                Representative (COR) assigned to this contract. The COR will serve
                as the Contractor's liaison with the Contracting Officer with regard
                to the conduct of work. The Contracting Officer will notify the
                Contractor in writing of any change to the current COR's status or
                the designation of a successor COR.
                 (b) The COR for liaison with the Contractor as to the conduct of
                work is [to be inserted at time of award] or a successor designated
                by the Contracting Officer.
                 (c) The COR will provide guidance to the Contractor on the
                technical performance of the contract. Such guidance shall not be of
                a nature which:
                 (1) Causes the Contractor to perform work outside the statement
                of work or specifications of the contract;
                 (2) Constitutes a change as defined in FAR 52.243-1;
                 (3) Causes an increase or decrease in the cost of the contract;
                 (4) Alters the period of performance or delivery dates; or
                 (5) Changes any of the other express terms or conditions of the
                contract.
                 (d) The COR will issue technical guidance in writing or, if
                issued orally, he/she will confirm such direction in writing within
                five (5) calendar days after oral issuance. The COR may issue such
                guidance via telephone, facsimile (fax), or electronic mail.
                 (e) Other specific limitations [to be inserted by Contracting
                Officer]:
                 (f) The Contractor shall promptly notify the Contracting Officer
                whenever the Contractor believes that guidance provided by any
                government personnel, whether or not specifically provided pursuant
                to this clause, is of a nature described in paragraph (b) of this
                clause.
                (End of clause)
                0
                20. Revise 2452.237-75 to read as follows:
                2452.237-75 Access to HUD facilities.
                 As prescribed in 2437.110(e)(3), insert the following clause in
                solicitations and contracts:
                ACCESS TO HUD FACILITIES (APR 2019)
                 (a) Definitions. As used in this clause--
                 ``Access'' means physical entry into and, to the extent
                authorized, mobility within a Government facility.
                 ``Contract'' means any authorized contractual instrument,
                including, but not restricted to, task orders, purchase orders,
                Blanket Purchase Agreement calls, etc.
                 ``Contractor employee'' means an employee of the prime
                contractor or of any subcontractor, affiliate, partner, joint
                venture, or team members with which the Contractor is associated. It
                also includes consultants engaged by any of those entities.
                 ``Facility'' and ``Government facility'' mean buildings,
                including areas within buildings that are owned, leased, shared,
                occupied, or otherwise controlled by the Federal Government.
                 ``NACI'' means National Agency Check with Inquiries, the minimum
                background investigation prescribed by the U.S. Office of Personnel
                Management.
                 ``PIV Card'' means the Personal Identity Verification (PIV)
                Card, the Federal Government-issued identification credential
                (identification badge).
                 (b) General. The performance of this contract requires
                contractor employees to have access to HUD facilities. All such
                employees who do not already possess a current PIV Card acceptable
                to HUD shall be required to provide personal background information,
                undergo a background investigation (NACI or other OPM-required or
                approved investigation), including an FBI National Criminal History
                Fingerprint Check, and obtain a PIV Card prior to being permitted
                access to any such facility in the performance of this contract.
                 Unescorted access to any such facility in performance of this
                contract. HUD may accept a PIV Card issued by another Federal
                Government agency but shall not be required to do so. No contractor
                employee will be permitted unescorted access to a HUD facility
                without a proper PIV Card.
                 (c) Background information. (1) For each contractor employee
                subject to the requirements of this clause and not in possession of
                a current PIV Card acceptable to HUD, the Contractor shall submit
                the following properly completed forms: Electronic Standard Form
                (SF) 85, ``Questionnaire for Non-Sensitive Positions via e-QIP,''
                completed USAccess enrollment (electronic fingerprinting) and
                Optional Form (OF) 306 (Items 1 through 17). Forms SF-85 and OF-306
                are available from OPM's website, http://www.opm.gov. The electronic
                questionnaire is available on OPM's e-QIP site, https://www.opm.gov/investigations/e-qip-application/. The COR will provide all other
                forms that are not obtainable via the internet.
                 (2) The Contractor shall deliver the forms and information
                required in paragraph (c)(1)
                [[Page 15133]]
                of this clause to the COR as secure as possible.
                 (3) The information provided in accordance with paragraph (c)(1)
                of this clause will be used to perform a background investigation to
                determine the suitability of the contractor employees to have access
                to Government facilities. After completion of the investigation, the
                COR will notify the Contractor in writing when any contractor
                employee is determined to be unsuitable for access to a Government
                facility. The Contractor shall immediately remove such employee(s)
                from work on this contract that requires physical presence in a
                Government facility.
                 (4) Affected contractor employees who have had a Federal
                background investigation without a subsequent break in Federal
                employment or Federal contract service exceeding 2 years may be
                exempt from the investigation requirements of this clause subject to
                verification of the previous investigation. For each such employee,
                the Contractor shall submit the following information in lieu of the
                forms and information listed in paragraph (c)(1) of this clause:
                completed PIV and Pre-Security Form.
                 (d) PIV Cards. (1) HUD will issue a PIV Card to each contractor
                employee who is to be given access to HUD facilities and who does
                not already possess a PIV Card acceptable to HUD (see paragraph (b)
                of this clause). HUD will not issue the PIV Card until the
                contractor employee has (1) successfully cleared the FBI National
                Criminal History Fingerprint Check, (2) HUD has initiated the
                background investigation for the contractor employee, and (3) a
                Security Approval Notice from HUD PSD via [email protected] has been received. Initiation is defined to mean that
                all background information required in paragraph (c)(1) of this
                clause has been delivered to HUD. The employee may not be given
                access prior to those three events. HUD may issue a PIV Card and
                grant access pending the completion of the background investigation.
                HUD will revoke the PIV Card and the employee's access if the
                background investigation process for the employee, including
                adjudication of the investigation results, has not been completed
                within 6 months after the issuance of the PIV Card.
                 (2) PIV Cards shall identify individuals as contractor
                employees. Contractor employees shall display their PIV Cards on
                their persons at all times while working in a HUD facility, and
                shall present cards for inspection upon request by HUD officials or
                HUD security personnel.
                 (3) The Contractor shall be responsible for all PIV Cards issued
                to the Contractor's employees and shall immediately notify the COR
                if any PIV Card(s) cannot be accounted for. The Contractor shall
                promptly return PIV Cards to HUD, as required by the FAR clause at
                52.204-9. The Contractor shall notify the COR immediately whenever
                any contractor employee no longer has a need for his/her HUD-issued
                PIV Card (e.g., employee terminates employment with the contractor,
                employee's duties no longer require access to HUD facilities). The
                COR will instruct the Contractor on how to return the PIV Card, and
                upon expiration of this contract, the COR will instruct the
                Contractor on how to return all HUD-issued PIV Cards not previously
                returned. Unless otherwise directed by the Contracting Officer, the
                Contractor shall not return PIV Cards to any person other than the
                COR.
                 (4) The Contractor shall submit a report to the Contracting
                Officer and COR no later than five (5) calendar days after the end
                of each calendar quarter that provides the status of each employee
                who is required to work in a HUD facility during the performance of
                the contract. At a minimum, the report shall identify the contractor
                and the contract number, and list for each employee the following
                information:
                 (i) Employee name;
                 (ii) Name of HUD facility where employee works;
                 (iii) Date background check submitted;
                 (iv) Date PIV Card issued;
                 (v) PIV card number;
                 (vi) Date employee no longer has need of the HUD PIV Card;
                 (vii) Date Contracting Officer and COR were notified that
                employee no longer had need of the HUD PIV Card; and
                 (viii) Date PIV Card was returned to COR.
                 (e) Control of access. HUD shall have, and exercise, complete
                control over granting, denying, withholding, and terminating access
                of contractor employees to HUD facilities. The COR will notify the
                Contractor immediately when HUD has determined that an employee is
                unsuitable or unfit to be permitted access to a HUD facility. The
                Contractor shall immediately notify such employee that he/she no
                longer has access to any HUD facility, remove the employee from any
                such facility that he/she may be in, and provide a suitable
                replacement in accordance with the requirements of this clause.
                 (f) Access to HUD information systems. If this contract requires
                contractor employees to have access to HUD information system(s),
                application(s), or information contained in such systems, the
                Contractor shall comply with all requirements of HUDAR clause
                2452.239-70, Access to HUD Systems, including providing for each
                affected employee any additional background investigation forms
                prescribed in that clause.
                 (g) Subcontracts. The Contractor shall incorporate this clause
                in all subcontracts where the requirements specified in paragraph
                (b) of this section are applicable to performance of the
                subcontract.
                (End of clause)
                0
                21. Add 2452.237-82 to read as follows:
                2452.237-82 Access to controlled unclassified information (CUI).
                 As prescribed in HUDAR 2437.110(e)(7), the Contracting Officer
                shall insert provision 2452.237-82 in Section L of solicitations when
                controlled unclassified information (CUI), as defined in the provision,
                will be provided to potential offerors for the purpose of preparing
                offers.
                ACCESS TO CONTROLLED UNCLASSIFIED INFORMATION (CUI) (APR 2019)
                 (a) For the sole purpose of preparing an offer in response to
                this solicitation, HUD may make certain controlled unclassified
                information (CUI) available to prospective offerors.
                 (b) CUI:
                 (1) Is any information which the loss, misuse, or modification
                of, or unauthorized access to, could adversely affect the national
                interest or the conduct of Federal programs or the privacy to which
                individuals are entitled under section 552a of title 5, United
                States Code (the Privacy Act), but which has not been specifically
                authorized under criteria established by an Executive Order or an
                Act of Congress to be kept secret in the interest of national
                defense or foreign policy;
                 (2) Is not available to the general public;
                 (3) May include:
                 (i) Government acquisition-sensitive information, including
                source selection information as defined at section 2.101 of the
                Federal Acquisition Regulation (48 CFR chapter 1); contractor bid or
                proposal information;
                 (ii) Information contained in individual contracts that is not
                public information and such contract information that is contained
                in Government databases; proprietary economic, financial, or
                business information (e.g., salary information) provided to the
                Government by other parties (e.g., other contractors) or belonging
                to HUD;
                 (iii) Personally identifiable information (PII) that includes,
                but is not limited to, Social Security numbers, names, dates of
                birth, places of birth, parents' names, credit card numbers,
                applications for entitlements, and information relating to a
                person's private financial, income, employment, and tax records; and
                 (iv) Other information that the HUD Contracting Officer (CO) or
                other authorized HUD employee explicitly identifies as CUI.
                 (4) May exist in various physical media (e.g., paper, electronic
                file, audio, or video disc), may be transmitted orally, developed
                under or pre-exist any related contract, and may be in its original
                form, or a derivative form (i.e., where the information has been
                included in contractor-generated work, or where it is discernible
                from materials incorporating or based upon such information).
                 (c) As a prior condition to being provided access to any CUI,
                each prospective offeror shall execute the following nondisclosure
                agreements and deliver the executed agreements to the Contracting
                Officer:
                 (1) Nondisclosure Agreement between the Department of Housing
                and Urban Development (``HUD'') and Offeror Granting Conditional
                Access to Controlled Unclassified Information (``Offeror
                Agreement'') (see Attachment J-__[contracting officer insert
                attachment number]). This agreement must be executed by an officer
                or other representative of the company authorized to bind the firm
                to the commitments made by the agreement and the individual
                nondisclosure agreements executed by those offeror employees or
                representatives to whom the sensitive information will be provided.
                [[Page 15134]]
                 (2) Nondisclosure Agreement between the Department of Housing
                and Urban Development and Offeror Employee or Other External Party
                Granting Conditional Access to Controlled Unclassified Information
                (``Nondisclosure Agreement'') (see Attachment J-_ [contracting
                officer insert attachment number]). A separate agreement must be
                executed by each person to whom access to CUI will be provided,
                regardless of whether HUD or the Offeror provides such access. The
                offeror is responsible for ensuring that each individual who is
                provided access to CUI executes a nondisclosure agreement.
                 (3) Nondisclosure agreements must be submitted to the CO and COR
                within ten (10) days after contract award or as otherwise specified
                by the CO.
                 (d) CUI will be provided to prospective offerors as follows:
                [describe how information will be provided including: The party
                responsible for providing access to information, the procedure for
                obtaining access, and the format in which the information is
                contained; e.g., ``by the contracting officer on compact disk (CD)
                at the pre-proposal meeting].
                 (e) The offeror's failure to comply with any part of this
                provision or with the terms of the required nondisclosure agreements
                may disqualify the offeror for consideration of any contract awarded
                under this solicitation.
                (End of Provision)
                0
                22. Add 2452.237-83 to read as follows:
                2452.237-83 Access to controlled unclassified information (CUI).
                 As prescribed in HUDAR 2437.110(e)(8), the Contracting Officer
                shall insert clause 2452.237-83 in Section H of solicitations and
                contracts under which contractor and/or subcontractor employees will be
                granted access to controlled unclassified information as defined in the
                clause.
                ACCESS TO CONTROLLED UNCLASSIFIED INFORMATION (CUI) (APR 2019)
                 (a) For the sole purpose of performing work required under this
                contract, the contracting officer may grant the contractor--
                including contractor employees, subcontractors, and subcontractor
                employees--access to controlled unclassified information (CUI).
                 (b) CUI:
                 (1) Is any information which the loss, misuse, or modification
                of, or unauthorized access to, could adversely affect the national
                interest or the conduct of Federal programs or the privacy to which
                individuals are entitled under section 552a of title 5, United
                States Code (the Privacy Act), but which has not been specifically
                authorized under criteria established by an Executive Order or an
                Act of Congress to be kept secret in the interest of national
                defense or foreign policy;
                 (2) Is not available to the general public;
                 (3) May include:
                 (i) Government acquisition-sensitive information, including
                source selection information as defined at section 2.101 of the
                Federal Acquisition Regulation (48 CFR chapter 1); contractor bid or
                proposal information;
                 (ii) Information contained in individual contracts that is not
                public information and such contract information that is contained
                in Government databases; proprietary economic, financial, or
                business information (e.g., salary information) provided to the
                Government by other parties (e.g., other contractors) or belonging
                to HUD;
                 (iii) Personally identifiable information (PII) that includes,
                but is not limited to social security numbers, names, dates of
                birth, places of birth, parents' names, credit card numbers,
                applications for entitlements, and information relating to a
                person's private financial, income, employment, and tax records; and
                 (iv) Other information that the HUD contracting officer or other
                authorized HUD employee explicitly identifies as CUI; and
                 (4) May exist in various physical media (e.g., paper, electronic
                file, audio or video disc) or be transmitted orally, may be
                developed under or pre-exist any related contract, and may be in its
                original form or a derivative form (i.e., where the information has
                been included in contractor-generated work, or where it is
                discernible from materials incorporating or based upon such
                information).
                 (c) As a prior condition to being provided access to any CUI,
                each contractor or subcontractor employee shall execute the
                nondisclosure agreement in attachment J._ [contracting officer
                insert attachment number] to this contract and deliver the executed
                agreement to the contracting officer.
                 (d) The Contractor shall include this clause in all
                subcontracts.
                 (e) The contractor's failure to comply with any part of this
                clause or with the terms of the required nondisclosure agreements
                may result in the termination of this contract for default.
                (End of Clause)
                0
                23. Revise 2452.239-70 to read as follows:
                2452.239-70 Access to HUD systems.
                 As prescribed in 2439.107(a), insert the following clause:
                ACCESS TO HUD SYSTEMS (APR 2019)
                 (a) Definitions. As used in this clause--
                 Access means the ability to obtain, view, read, modify, delete,
                and/or otherwise make use of information resources.
                 Application means the use of information resources (information
                and information technology) to satisfy a specific set of user
                requirements (see Office of Management and Budget (OMB) Circular A-
                130).
                 Contract means any authorized contractual instrument, including,
                but not restricted to, task orders, purchase orders, Blanket
                Purchase Agreement calls, etc.
                 Contractor employee means an employee of the prime contractor or
                of any subcontractor, affiliate, partner, joint venture, or team
                members with which the Contractor is associated. It also includes
                consultants engaged by any of those entities.
                 Mission-critical system means an information technology or
                telecommunications system used or operated by HUD or by a HUD
                contractor, or organization on behalf of HUD, that processes any
                information, the loss, misuse, disclosure, or unauthorized access
                to, or modification of which would have a debilitating impact on the
                mission of the agency.
                 NACI means a National Agency Check with Inquiries, the minimum
                background investigation prescribed by the Office of Personnel
                Management (OPM).
                 PIV Card means the Personal Identity Verification (PIV) Card,
                the Federal Government-issued identification credential (i.e.,
                identification badge).
                 Sensitive information means any information of which the loss,
                misuse, or unauthorized access to, or modification of, could
                adversely affect the national interest, the conduct of Federal
                programs, or the privacy to which individuals are entitled under
                section 552a of title 5, United States Code (the Privacy Act), but
                which has not been specifically authorized under criteria
                established by an Executive Order or an Act of Congress to be kept
                secret in the interest of national defense or foreign policy.
                 System means an interconnected set of information resources
                under the same direct management control, which shares common
                functionality. A system normally includes hardware, software,
                information, data, applications, communications, and people (see OMB
                Circular A-130). System includes any system owned by HUD or owned
                and operated on HUD's behalf by another party.
                 (b) General. (1) The performance of this contract requires
                contractor employees to have access to a HUD system or systems. All
                such employees who do not already possess a current PIV Card
                acceptable to HUD shall be required to provide personal background
                information, undergo a background investigation (NACI or other OPM-
                required or approved investigation), including an FBI National
                Criminal History Fingerprint Check, and obtain a PIV Card prior to
                being permitted access to any such system in performance of this
                contract. HUD may accept a PIV Card issued by another Federal
                Government agency but shall not be required to do so. No contractor
                employee will be permitted access to any HUD system without a PIV
                Card.
                 (2) All contractor employees who require access to mission-
                critical systems or sensitive information contained within a HUD
                system or application(s) are required to have a more extensive
                background investigation. The investigation shall be commensurate
                with the risk and security controls involved in managing, using, or
                operating the system or applications(s).
                 (c) Citizenship-related requirements. Each affected contractor
                employee as described in paragraph (b) of this clause shall be:
                 (1) A United States (U.S.) citizen; or,
                 (2) A national of the United States (see 8 U.S.C. 1408); or,
                 (3) An alien lawfully admitted into, and lawfully permitted to
                be employed in the United States, provided that for any such
                individual, the Government is able to obtain sufficient background
                information to complete the investigation as required by this
                clause. Failure on the part of the contractor to provide sufficient
                information to perform a required investigation or the inability of
                the Government to verify information provided
                [[Page 15135]]
                for affected contractor employees will result in denial of their
                access.
                 (d) Background investigation process. (1) The Contracting
                Officer's Representative (COR) shall notify the Contractor of those
                contractor employee positions requiring background investigations.
                 (i) For each contractor employee requiring access to HUD
                information systems, the Contractor shall submit the following
                properly completed forms: Electronic Standard Form (SF) 85,
                ``Questionnaire for Non-sensitive Positions'' via e-QIP, completed
                USAccess enrollment (electronic fingerprinting) and Optional Form
                (OF) 306 (Items 1 through 17). The SF-85 and OF-306 are available
                from the OPM website, http://www.opm.gov. The electronic
                questionnaire is available on OPM's e-QIP site, https://www.opm.gov/investigations/e-qip-application/.
                 (ii) For each contractor employee requiring access to mission-
                critical systems and/or sensitive information contained within a HUD
                system and/or application(s), the Contractor shall submit the
                following properly completed forms: Electronic SF-85P,
                ``Questionnaire for Public Trust Positions'' via e-QIP;'' Electronic
                Standard Form (SF) 85, ``Questionnaire for Non-sensitive Positions
                via e-QIP,'' completed USAccess enrollment (electronic
                fingerprinting) and Optional Form (OF) 306 (Items 1 through 17). The
                SF-85 and OF-306 are available from the OPM website, http://www.opm.gov. The Electronic questionnaire is available on OPM's e-
                QIP site, https://www.opm.gov/investigations/e-qip-application/; and
                a Fair Credit Reporting Act form (authorization for the credit-check
                portion of the investigation). Contractor employees shall complete
                the Medical Release behind the SF-85P.
                 (iii) The electronic questionnaires (e-QIP) SF-85, 85P, and OF-
                306 are available from OPM's websites https://www.opm.gov/investigations/e-qip-application/ and http://www.opm.gov. The COR
                will provide all other forms that are not obtainable via the
                internet.
                 (2) The Contractor shall deliver the forms and information
                required in paragraph (d)(1) of this clause to the COR as securely
                as possible.
                 (3) Affected contractor employees who have had a Federal
                background investigation without a subsequent break in Federal
                employment or Federal contract service exceeding 2 years may be
                exempt from the investigation requirements of this clause, subject
                to verification of the previous investigation. For each such
                employee, the Contractor shall submit the following information in
                lieu of the forms and information listed in paragraph (d)(1) of this
                clause: PIV and Pre-Security Form.
                 (4) The investigation process shall consist of a range of
                personal background inquiries and contacts (written and personal)
                and verification of the information provided on the investigative
                forms described in paragraph (d)(1) of this clause.
                 (5) Upon completion of the investigation process, the COR will
                notify the Contractor if any contractor employee is determined to be
                unsuitable to have access to the system(s), application(s), or
                information. Such an employee may not be given access to those
                resources. If any such employee has already been given access
                pending the results of the background investigation, the Contractor
                shall ensure that the employee's access is revoked immediately upon
                receipt of the COR's notification.
                 (6) Failure of the COR to notify the Contractor (see paragraph
                (d)(1) of this clause) of any employee who should be subject to the
                requirements of this clause and is known, or should reasonably be
                known, by the Contractor to be subject to the requirements of this
                clause, shall not excuse the Contractor from making such employee(s)
                known to the COR. Any such employee who is identified and is working
                under the contract, without having had the appropriate background
                investigation or furnished the required forms for the investigation,
                shall cease to perform such work immediately and shall not be given
                access to the system(s)/application(s) described in paragraph (b) of
                this clause until the Contractor has provided the investigative
                forms to the COR for the employee, as required in paragraph (d)(1)
                of this clause.
                 (7) The Contractor shall notify the COR in writing whenever a
                contractor employee for whom a background investigation package was
                required and submitted to HUD, or for whom a background
                investigation was completed, terminates employment with the
                Contractor, or otherwise is no longer performing work under this
                contract that requires access to the system(s), application(s), or
                information. The Contractor shall provide a copy of the written
                notice to the Contracting Officer.
                 (e) PIV Cards. (1) HUD will issue a PIV Card to each contractor
                employee who is to be given access to HUD systems and does not
                already possess a PIV Card acceptable to HUD (see paragraph (b) of
                this clause). HUD will not issue the PIV Card until the contractor
                employee has (1) successfully cleared an FBI National Criminal
                History Fingerprint Check, (2) HUD has initiated the background
                investigation for the contractor employee, and (3) a Security
                Approval Notice from HUD PSD via [email protected] has
                been received. Initiation is defined to mean that all background
                information required in paragraph (d)(1) of this clause has been
                delivered to HUD. The employee may not be given access prior to
                those three events. HUD may issue a PIV Card and grant access
                pending the completion of the background investigation. HUD will
                revoke the PIV Card and the employee's access if the background
                investigation process for the employee, including adjudication of
                the investigation results, has not been completed within 6 months
                after the issuance of the PIV Card.
                 (2) PIV Cards shall identify individuals as contractor
                employees. Contractor employees shall display their PIV Cards on
                their persons at all times while working in a HUD facility, and
                shall present cards for inspection upon request by HUD officials or
                HUD security personnel.
                 (3) The Contractor shall be responsible for all PIV Cards issued
                to the Contractor's employees and shall immediately notify the COR
                if any PIV Card(s) cannot be accounted for. The Contractor shall
                promptly return PIV Cards to HUD as required by the FAR clause at
                52.204-9. The Contractor shall notify the COR immediately whenever
                any contractor employee no longer has a need for his/her HUD-issued
                PIV Card (e.g., the employee terminates employment with the
                Contractor, the employee's duties no longer require access to HUD
                systems). The COR will instruct the Contractor as to how to return
                the PIV Card. Upon expiration of this contract, the COR will
                instruct the Contractor as to how to return all HUD-issued PIV Cards
                not previously returned. Unless otherwise directed by the
                Contracting Officer, the Contractor shall not return PIV Cards to
                any person other than the COR.
                 (4) The Contractor shall submit a report to the Contracting
                Officer and COR no later than five (5) calendar days after the end
                of each calendar quarter that provides the status of each employee
                who is required to work in a HUD facility during the performance of
                the contract. At a minimum, the report shall identify the Contractor
                and the contract number, and list for each employee the following
                information:
                 (i) Employee name;
                 (ii) Name of HUD facility where employee works;
                 (iii) Date background check submitted;
                 (iv) Date PIV Card issued;
                 (v) PIV card number;
                 (vi) Date employee no longer has need of the HUD PIV Card;
                 (vii) Date Contracting Officer and COR were notified that
                employee no longer has need of the HUD PIV Card; and
                 (viii) Date PIV Card returned to COR.
                 (f) Control of access. HUD shall have and exercise full and
                complete control over granting, denying, withholding, and
                terminating access of contractor employees to HUD systems. The COR
                will notify the Contractor immediately when HUD has determined that
                an employee is unsuitable or unfit to be permitted access to a HUD
                system. The Contractor shall immediately notify such employee that
                he/she no longer has access to any HUD system, physically retrieve
                the employee's PIV Card from the employee, and provide a suitable
                replacement employee in accordance with the requirements of this
                clause.
                 (g) Incident response notification. An incident is defined as an
                event, either accidental or deliberate, that results in unauthorized
                access, loss, disclosure, modification, or destruction of
                information technology systems, applications, or data. The
                Contractor shall immediately notify the COR and the Contracting
                Officer of any known or suspected incident, or any unauthorized
                disclosure of the information contained in the system(s) to which
                the Contractor has access.
                 (h) Nondisclosure of information. (1) Neither the Contractor nor
                any of its employees shall divulge or release data or information
                developed or obtained during performance of this contract, except to
                authorized Government personnel with an established need to know, or
                upon written approval of the Contracting Officer. Information
                contained in all source
                [[Page 15136]]
                documents and other media provided by HUD is the sole property of
                HUD.
                 (2) The Contractor shall require that all employees who may have
                access to the system(s)/applications(s) identified in paragraph (b)
                of this clause sign a pledge of nondisclosure of information. The
                employees shall sign these pledges before they are permitted to
                perform work under this contract. The Contractor shall maintain the
                signed pledges for a period of 3 years after final payment under
                this contract. The Contractor shall provide a copy of these pledges
                to the COR.
                 (i) Security procedures. (1) The Contractor shall comply with
                applicable Federal and HUD statutes, regulations, policies, and
                procedures governing the security of the system(s) to which the
                Contractor's employees have access including, but not limited to:
                 (i) The Federal Information Security Management Act (FISMA);
                 (ii) Office of Management and Budget (OMB) Circular A-130,
                Management of Federal Information Resources, Appendix III, Security
                of Federal Automated Information Resources;
                 (iii) HUD Handbook 2400.25, Information Technology Security
                Policy;
                 (iv) HUD Handbook 732.3, Personnel Security/Suitability;
                 (v) Federal Information Processing Standards 201 (FIPS 201),
                Sections 2.1 and 2.2;
                 (vi) Homeland Security Presidential Directive 12 (HSPD-12); and
                 (vii) OMB Memorandum M-05-24, Implementing Guidance for HSPD-12.
                 The HUD Handbooks are available online at: http://www.hud.gov/offices/adm/hudclips/ or from the COR.
                 (2) The Contractor shall develop and maintain a compliance
                matrix that lists each requirement set forth in paragraphs (b), (c),
                (d), (e), (f), (g), (h), (i)(1), and (m) of this clause with
                specific actions taken, and/or procedures implemented, to satisfy
                each requirement. The Contractor shall identify an accountable
                person for each requirement, the date upon which actions/procedures
                were initiated/completed, and certify that information contained in
                this compliance matrix is correct. The Contractor shall ensure that
                information in this compliance matrix is complete, accurate, and up-
                to-date at all times for the duration of this contract. Upon
                request, the Contractor shall provide copies of the current matrix
                to HUD.
                 (3) The Contractor shall ensure that its employees, in
                performance of the contract, receive annual training (or once if the
                contract is for less than one year) in HUD information technology
                security policies, procedures, computer ethics, and best practices
                in accordance with HUD Handbook 2400.25.
                 (j) Access to Contractor's systems. The Contractor shall afford
                HUD, including the Office of Inspector General, access to the
                Contractor's facilities, installations, operations, documentation
                (including the compliance matrix required under paragraph (i)(2) of
                this clause), databases, and personnel used in performance of the
                contract. Access shall be provided to the extent required to carry
                out, but not limited to, any information security program
                activities, investigation, and audit to safeguard against threats
                and hazards to the integrity, availability, and confidentiality of
                HUD data and systems, or to the function of information systems
                operated on behalf of HUD, and to preserve evidence of computer
                crime.
                 (k) Contractor compliance with this clause. Failure on the part
                of the Contractor to comply with the terms of this clause may result
                in termination of this contract for default.
                 (l) Physical access to Federal Government facilities. The
                Contractor and any subcontractor(s) shall also comply with the
                requirements of HUDAR clause 2452.237-75 when the Contractor's or
                subcontractor's employees will perform any work under this contract
                on site in a HUD or other Federal Government facility.
                 (m) Subcontracts. The Contractor shall incorporate this clause
                in all subcontracts where the requirements specified in paragraph
                (b) of this clause are applicable to performance of the subcontract.
                (End of clause)
                0
                22. Amend 2452.242-71 by revising the introductory text and main clause
                to read as follows:
                2452.242-71 Contract management system.
                 As prescribed in 2442.1107, insert the following clause:
                CONTRACT MANAGEMENT SYSTEM (APR 2019)
                 (a) The Contractor shall use contract management baseline
                planning and progress reporting as described herein.
                 (b) The contract management system shall consist of two parts:
                 (1) Baseline plan. The baseline plan shall consist of:
                 (i) A narrative portion that:
                 (A) Identifies each task and significant activity required for
                completing the contract work, critical path activities, task
                dependencies, task milestones, and related deliverables;
                 (B) Describes the contract schedule, including the period of
                time needed to accomplish each task and activity (see paragraph
                (b)(1)(ii)(B) of this clause);
                 (C) Describes staff (e.g., hours per individual), financial, and
                other resources allocated to each task and significant activity; and
                 (D) Provides the rationale for contract work organization and
                resource allocation.
                 (ii) A graphic portion showing:
                 (A) Cumulative planned or budgeted costs of work scheduled for
                each reporting period over the life of the contract (i.e., the
                budgeted baseline); and
                 (B) The planned start and completion dates of all planned and
                budgeted tasks and activities.
                 (2) Progress reports. Progress reports shall consist of:
                 (i) A narrative portion that:
                 (A) Provides a brief, concise summary of technical progress made
                and the costs incurred for each task during the reporting period;
                and
                 (B) Identifies problems, or potential problems that will affect
                the contract's cost or schedule, the causes of the problems, and the
                Contractor's proposed corrective actions.
                 (ii) A graphic portion showing:
                 (A) The original time-phased, budgeted baseline;
                 (B) The schedule status and degree of completion of the tasks,
                activities, and deliverables shown in the baseline plan for the
                reporting period, including actual start and completion dates for
                all tasks and activities in the baseline plan; and
                 (C) The costs incurred during the reporting period, the current
                total amount of costs incurred through the end date of the reporting
                period for budgeted work, and the projected costs required to
                complete the work under the contract.
                 (3) Reporting frequency. The reports described in paragraph
                (b)(2) of this clause shall be submitted [insert period, e.g.,
                monthly, quarterly, or schedule based on when payments will be made
                under the contract].
                 (c) The formats, forms, and/or software to be used for the
                contract management system under this contract shall be [Contracting
                Officer insert appropriate language, such as ``as prescribed in the
                schedule;'' ``a format, forms and/or software designated by the
                COR'' or, ``the Contractor's own format, forms and/or software,
                subject to the approval of the COR.''].
                 (d) When this clause applies to individual task orders under the
                contract, the word ``contract'' shall mean ``task order.''
                (End of clause)
                * * * * *
                0
                23. Revise 2452.246-70 to read as follows:
                2452.246-70 Inspection and acceptance.
                 As prescribed in 2446.502-70, insert the following clause in all
                solicitations and contracts:
                INSPECTION AND ACCEPTANCE (APR 2019)
                 Inspection and acceptance of all work required under this
                contract shall be performed by the Contracting Officer's
                Representative (COR) or other individual as designated by the
                Contracting Officer or COR.
                (End of clause)
                0
                24. Revise 2452.3 to read as follows:
                2452.3 Provision and clause matrix.
                BILLING CODE 4210-67-P
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                [GRAPHIC] [TIFF OMITTED] TR15AP19.012
                 Dated: April 9, 2019.
                 Jimmy Scott,
                Acting Chief Procurement Officer.
                [FR Doc. 2019-07320 Filed 4-12-19; 8:45 am]
                 BILLING CODE 4210-67-C
                

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