VA Acquisition Regulation: Administrative Matters; Publicizing Contract Actions; and Termination of Contracts

Published date13 February 2020
Record Number2020-02425
SectionProposed rules
CourtVeterans Affairs Department
Federal Register, Volume 85 Issue 30 (Thursday, February 13, 2020)
[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
                [Proposed Rules]
                [Pages 8242-8244]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-02425]
                [[Page 8242]]
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                DEPARTMENT OF VETERANS AFFAIRS
                48 CFR Parts 804, 805, 849, and 852
                RIN 2900-AQ77
                VA Acquisition Regulation: Administrative Matters; Publicizing
                Contract Actions; and Termination of Contracts
                AGENCY: Department of Veterans Affairs.
                ACTION: Proposed rule.
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                SUMMARY: The Department of Veterans Affairs (VA) is proposing to amend
                and update its VA Acquisition Regulation (VAAR) in phased increments to
                revise or remove any policy superseded by changes in the Federal
                Acquisition Regulation (FAR), to remove procedural guidance internal to
                VA into the VAAM, and to incorporate any new agency specific
                regulations or policies. These changes seek to streamline and align the
                VAAR with the FAR and remove outdated and duplicative requirements and
                reduce burden on contractors. The VAAM incorporates portions of the
                removed VAAR as well as other internal agency acquisition policy. VA
                will rewrite certain parts of the VAAR and VAAM, and as VAAR parts are
                rewritten, will publish them in the Federal Register. VA will combine
                related topics, as appropriate. This rulemaking revises VAAR coverage
                concerning Administrative Matters, Publicizing Contract Actions, and
                Termination of Contracts, as well as an affected part concerning
                Solicitation Provisions and Contract Clauses.
                DATES: Comments must be received on or before April 13, 2020 to be
                considered in the formulation of the final rule.
                ADDRESSES: Written comments may be submitted through
                www.Regulations.gov; by mail or hand-delivery to Director, Office of
                Regulation Policy and Management (00REG), Department of Veterans
                Affairs, 810 Vermont Avenue NW, Room 1064, Washington, DC 20420; or by
                fax to (202) 273-9026. Comments should indicate that they are submitted
                in response to ``RIN 2900-AQ77--VA Acquisition Regulation:
                Administrative Matters; Publicizing Contract Actions; and Termination
                of Contracts.'' Copies of comments received will be available for
                public inspection in the Office of Regulation Policy and Management,
                Room 1064, between the hours of 8:00 a.m. and 4:30 p.m., Monday through
                Friday (except holidays). Please call (202) 461-4902 for an
                appointment. (This is not a toll-free number.) In addition, during the
                comment period, comments may be viewed online through the Federal
                Docket Management System (FDMS) at www.Regulations.gov.
                FOR FURTHER INFORMATION CONTACT: Mr. Rafael N. Taylor, Senior
                Procurement Analyst, Procurement Policy and Warrant Management
                Services, 003A2A, 425 I Street NW, Washington, DC 20001, (202) 382-
                2787. (This is not a toll-free number.)
                SUPPLEMENTARY INFORMATION:
                Background
                 This action is being taken under the authority of the Office of
                Federal Procurement Policy (OFPP) Act which provides the authority for
                an agency head to issue agency acquisition regulations that implement
                or supplement the FAR. This authority ensures that Government
                procurements are handled fairly and consistently, that the Government
                receives overall best value, and that the Government and contractors
                both operate under a known set of rules.
                 The proposed rule would update the VAAR to current FAR titles,
                requirements, and definitions; it would correct inconsistencies and
                remove redundancies and duplicate material already covered by the FAR;
                it would also delete outdated material or information and appropriately
                renumber VAAR text, clauses, and provisions where required to comport
                with FAR format, numbering and arrangement. All amendments, revisions,
                and removals have been reviewed and concurred with by an Integrated
                Product Team of agency stakeholders.
                 The VAAR uses the regulatory structure and arrangement of the FAR
                and headings and subject areas are broken up consistent with the FAR
                content. The VAAR is divided into subchapters, parts (each of which
                covers a separate aspect of acquisition), subparts, sections, and
                paragraphs.
                 The Office of Federal Procurement Policy Act, as codified in 41
                U.S.C. 1707, provides the authority for the Federal Acquisition
                Regulation and for the issuance of agency acquisition regulations
                consistent with the FAR.
                 When Federal agencies acquire supplies and services using
                appropriated funds, the purchase is governed by the FAR, set forth at
                title 48 Code of Federal Regulations (CFR), chapter 1, parts 1 through
                53, and the agency regulations that implement and supplement the FAR.
                The VAAR is set forth at title 48 CFR, chapter 8, parts 801 to 873.
                Discussion and Analysis
                 The VA proposes to make the following changes to the VAAR in this
                phase of its revision and streamlining initiative. For procedural
                guidance cited below that is proposed to be deleted from the VAAR, each
                section cited for removal has been considered for inclusion in VA's
                internal agency operating procedures in accordance with FAR
                1.301(a)(2). Similarly, delegations of authority that are removed from
                the VAAR will be included in the VA Acquisition Manual (VAAM) as
                internal agency guidance. The VAAM is being created in parallel with
                these revisions to the VAAR and is not subject to the rulemaking
                process as they are internal VA procedures and guidance. The VAAM will
                not be finalized until corresponding VAAR parts are finalized, and
                therefore the VAAM is not yet available on line.
                VAAR Part 804--Administrative Matters
                 Under part 804, Administrative Matters, we propose to add the
                authority citation for 41 U.S.C. 1702 which addresses the acquisition
                planning and management responsibilities of Chief Acquisition Officers
                and Senior Procurement Executives, to include implementation of unique
                procurement policies, regulations and standards of the executive
                agency. We propose to revise the authority citation of 40 U.S.C. 121 to
                remove the reference to paragraph (d), as paragraph (c) which will be
                retained comports with FAR and VAAR standard usage and reference to
                paragraph (d) is unnecessary. We propose to remove the authority
                citation of 38 U.S.C. 8127 and 8128 as the section requiring the
                citation, 804.1102, Vendor Information Pages (VIP) Database, is being
                moved to part 819, Small Business Programs. The authorities cited for
                this part are 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.
                 We propose to remove subpart 804.1, Contract Execution, and section
                804.101, Contracting officer's signature, because it duplicates
                coverage in the FAR. This proposed rule would also remove section
                804.1102, Vendor Information Pages (VIP) Database, as this information
                is being moved to part 819, Small Business Programs.
                 We propose to add subpart 804.13, Personal Identity Verification,
                and section 804.1303, Contract clause, to prescribe clause 852.204-70,
                Personal Identity Verification of Contractor Personnel, which requires
                personal identity verification of all employees performing under a
                contract when
                [[Page 8243]]
                frequent and continuing access to VA facilities or information systems
                is required.
                VAAR Part 805--Publicizing Contract Actions
                 We propose to remove and reserve part 805. Under this part, we
                propose to remove section 805.202, Exceptions, as duplicative of FAR
                coverage at 6.302-5. This proposed rule would also remove section
                805.205, Special situations, since it duplicates coverage at FAR
                5.101(b) and 5.502(a). Finally, this proposed rule would remove section
                805.207, Preparation and transmittal of synopses, as the guidance it
                provides is outdated and does not add value.
                VAAR Part 849--Termination of Contracts
                 Under part 849, Termination of Contracts, we propose to remove 41
                U.S.C. 1121(c)(3), which addresses the authority of the Administrator
                of OFPP to prescribe Government-wide policies to be implemented in the
                FAR. The authorities cited for this part are 40 U.S.C. 121(c); 41
                U.S.C. 1702; and 48 CFR 1.301-1.304.
                 We propose to remove the entire subpart 849.1, General Principles,
                as it contains internal guidance. Specifically, sections 849.101,
                Authorities and responsibilities, and 849.106, Fraud or other criminal
                conduct, are proposed for removal as they contain internal procedures
                which will be addressed in VAAM. We propose to remove sections 849.811,
                Review of proposed settlements, 849.111-70, Required review, and
                849.111-71, Submission of information, as they include outdated
                information and internal procedures which will be updated and addressed
                in the VAAM.
                 This proposed rule would add subpart 849.5, Contract Termination
                Clauses, and section 849.504-70, Termination of mortuary services, to
                prescribe clause 852.249-70, Termination for Default--Supplement for
                Mortuary Services, in all solicitations and contracts for mortuary
                services containing the FAR clause 52.249-8, Default (Fixed-Price
                Supply and Service).
                VAAR Part 852--Solicitation Provisions and Contract Clauses
                 We propose to add clause 852.204-70, Personal Identity Verification
                of Contractor Personnel, to require contractor compliance with
                Department of Veterans Affairs policy for personal identity
                verification of all employees performing under a contract that requires
                frequent and continuing access to VA facilities or information systems.
                 We propose to add clause 852.249-70, Termination for Default--
                Supplement for Mortuary Services, which supplements FAR clause 52.249-
                8, Default (Fixed-Price Supply and Service), to identify specific
                circumstances in which the Government may terminate for default in
                contracts for mortuary services.
                Executive Orders 12866, 13563 and 13771
                 Executive Orders (EOs) 12866 and 13563 direct agencies to assess
                all costs and benefits of available regulatory alternatives and, when
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, and other advantages; distributive impacts;
                and equity). E.O. 13563 (Improving Regulation and Regulatory Review)
                emphasizes the importance of quantifying both costs and benefits,
                reducing costs, harmonizing rules, and promoting flexibility. The
                Office of Information and Regulatory Affairs has determined that this
                rule is not a significant regulatory action under Executive Order
                12866.
                 VA's impact analysis can be found as a supporting document at
                http://www.regulations.gov, usually within 48 hours after the
                rulemaking document is published. Additionally, a copy of the
                rulemaking and its impact analysis are available on VA's website at
                http://www.va.gov/orpm/, by following the link for ``VA Regulations
                Published From FY 2004 Through Fiscal Year to Date.''
                 This proposed rule is not expected to be an E.O. 13771 regulatory
                action because this proposed rule is not significant under E.O. 12866.
                Paperwork Reduction Act
                 This proposed rule contains no provisions constituting a collection
                of information under the Paperwork Reduction Act of 1995 (44 U.S.C.
                3501-3521).
                Regulatory Flexibility Act
                 The Secretary hereby certifies that this proposed rule would not
                have a significant economic impact on a substantial number of small
                entities as they are defined in the Regulatory Flexibility Act (5
                U.S.C. 601-612). This rulemaking does not change VA's policy regarding
                small businesses, does not have an economic impact to individual
                businesses, and there are no increased or decreased costs to small
                business entities. On this basis, the proposed rule would not have an
                economic impact on a substantial number of small entities as they are
                defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore,
                pursuant to 5 U.S.C. 605(b), the initial and final regulatory
                flexibility analysis requirements of 5 U.S.C. 603 and 604 do not apply.
                Unfunded Mandates
                 The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
                1532, that agencies prepare an assessment of anticipated costs and
                benefits before issuing any rule that may result in the expenditure by
                State, local, and tribal Governments, in the aggregate, or by the
                private sector, of $100 million or more (adjusted annually for
                inflation) in any one year. This proposed rule would have no such
                effect on State, local, and tribal Governments or on the private
                sector.
                List of Subjects
                48 CFR Parts 804, 805, and 849
                 Government procurement.
                48 CFR Part 852
                 Government procurement, Reporting and recordkeeping requirements.
                Signing Authority
                 The Secretary of Veterans Affairs, or designee, approved this
                document and authorized the undersigned to sign and submit the document
                to the Office of the Federal Register for publication electronically as
                an official document of the Department of Veterans Affairs. Pamela
                Powers, Chief of Staff, Department of Veterans Affairs, approved this
                document on January 28, 2020, for publication.
                Consuela Benjamin,
                Regulation Development Coordinator, Office of Regulation Policy &
                Management, Office of the Secretary, Department of Veterans Affairs.
                 For the reasons set out in the preamble, VA proposes to amend 48
                CFR parts 804, 805, 849, and 852 as follows:
                PART 804--ADMINISTRATIVE MATTERS
                0
                1. The authority citation for part 804 is revised to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301
                through 1.304.
                Subpart 804.1 [Removed and Reserved]
                0
                2. Subpart 804.1, consisting of sections 804.101 and 804.1102, is
                removed and reserved.
                0
                 3. Subpart 804.13 is added to read as follows:
                [[Page 8244]]
                Subpart 804.13--Personal Identity Verification
                804.1303 Contract clause.
                 The contracting officer shall insert the clause at 852.204-70,
                Personal Identity Verification of Contractor Personnel, in
                solicitations and contracts that require contractor employees to have
                routine access to a VA facility or to VA information systems. This
                clause is used in conjunction with FAR clause 52.204-9, Personal
                Identity Verification of Contractor Personnel.
                PART 805 [Removed and Reserved]
                0
                4. Part 805, consisting of sections 805.202, 805.205, and 805.207, is
                removed and reserved under the authority of 40 U.S.C. 121(c) and 48 CFR
                1.301 through 1.304.
                PART 849--TERMINATION OF CONTRACTS
                0
                5. The authority citation for part 849 is revised to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301
                through 1.304.
                Subpart 849.1 [Removed and Reserved]
                0
                6. Subpart 849.1, consisting of sections 849.101, 849.106, 849.111,
                849.111-70, and 849.111-71, is removed and reserved.
                0
                7. Subpart 849.5 is revised to read as follows:
                Subpart 849.5--Contract Termination Clauses
                849.504-70 Termination of mortuary services.
                 Use the clause at 852.249-70, Termination for Default--Supplement
                for Mortuary Services, in all solicitations and contracts for mortuary
                services containing the FAR clause 52.249-8, Default (Fixed-Price
                Supply and Service).
                PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
                0
                8. The authority citation for part 852 continues to read as follows:
                 Authority: Pub. L. 101-647; 20 U.S.C. 7181-7183; 38 U.S.C.
                8127-8128, and 8151-8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41
                U.S.C. 1303; 41 U.S.C 1702; and 48 CFR 1.301 through 1.304.
                Subpart 852.2--Text of Provisions and Clauses
                0
                 9. Section 852.204-70 is added to read as follows:
                852.204-70 Personal Identity Verification of Contractor Personnel.
                 As prescribed in 804.1303, insert the following clause:
                Personal Identity Verification of Contractor Personnel (Date)
                 (a) The Contractor shall comply with current Department of
                Veterans Affairs policy for personal identity verification of all
                employees performing under this contract when frequent and
                continuing access to VA facilities or information systems is
                required.
                 (b) The Contractor shall insert this clause in all subcontracts
                when the subcontractor's employees will require frequent and
                continuing access to VA facilities or information systems.
                (End of clause)
                0
                10. Section 852.249-70 is revised to read as follows:
                852.249-70 Termination for Default--Supplement for Mortuary Services.
                 As prescribed in 849.504-70, insert the following clause:
                Termination for Default--Supplement for Mortuary Services (Date)
                 The FAR clause entitled Default (Fixed-Price Supply and
                Service), at 52.249-8, is supplemented as follows:
                 The Contracting Officer may terminate this contract for default
                by written notice without the ten day notice required by paragraph
                (a)(2) of the Default clause if--
                 (a) The Contractor, through circumstances reasonably within its
                control or that of its employees, performs any act under or in
                connection with this contract, or fails in the performance of any
                service under this contract and the act or failures may reasonably
                be considered to reflect discredit upon the Department of Veteran
                Affairs in fulfilling its responsibility for proper care of remains;
                 (b) The Contractor, or its employees, solicits relatives or
                friends of the deceased to purchase supplies or services not under
                this contract. (The Contractor may furnish supplies or arrange for
                services not under this contract, only if representatives of the
                deceased voluntarily request, select, and pay for them.);
                 (c) The services or any part of the services are performed by
                anyone other than the Contractor or the Contractor's employees
                without the written authorization of the Contracting Officer;
                 (d) The Contractor refuses to perform the services required for
                any particular remains; or
                 (e) The Contractor mentions or otherwise uses this contract in
                its advertising in any way.
                (End of clause)
                [FR Doc. 2020-02425 Filed 2-12-20; 8:45 am]
                 BILLING CODE 8320-01-P
                

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