VA Acquisition Regulation: Contracting by Negotiation; Service Contracting

Published date04 September 2019
Citation84 FR 46448
Record Number2019-17824
SectionRules and Regulations
CourtVeterans Affairs Department
Federal Register, Volume 84 Issue 171 (Wednesday, September 4, 2019)
[Federal Register Volume 84, Number 171 (Wednesday, September 4, 2019)]
                [Rules and Regulations]
                [Pages 46448-46457]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-17824]
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                DEPARTMENT OF VETERANS AFFAIRS
                48 CFR Parts 801, 815, 816, 837, 849, 852, and 871
                RIN 2900-AQ20
                VA Acquisition Regulation: Contracting by Negotiation; Service
                Contracting
                AGENCY: Department of Veterans Affairs.
                ACTION: Final rule.
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                SUMMARY: The Department of Veterans Affairs (VA) is amending and
                updating 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                revise or remove any policy superseded by changes in the Federal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 VA Acquisition Manual (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                streamline and align the VAAR with the FAR and remove outdated and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, VA will publish them in the
                Federal Register. In particular, this rulemaking revises VAAR
                concerning Contracting by Negotiation and Service Contracting, as well
                as affected parts covering the Department of Veterans Affairs
                Acquisition Regulation System, Types of Contracts, Termination of
                Contracts, Solicitation Provisions and Contract Clauses, and Loan
                Guaranty and Vocational Rehabilitation and Employment Programs.
                DATES: This rule is effective on October 4, 2019.
                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: On September 7, 2018, VA published a
                proposed rule in the Federal Register (83 FR 45384) which announced
                VA's intent to amend regulations for VAAR Case RIN 2900-AQ20--VA
                Acquisition Regulation: Contracting by Negotiation; Service
                Contracting. VA provided a 60-day comment period for the public to
                respond to the proposed rule and submit comments. The comment period
                for the proposed rule ended on November 6, 2018 and VA received three
                comments from one commenter. This rule adopts as a final rule, with
                changes, the proposed rule published in the Federal Register on
                September 7, 2018, with minor formatting and/or grammatical edits, as
                well as the non-substantive changes described below. VA reviewed and
                considered the comments raised by the one commenter in the development
                of this final rule. A discussion of the issues raised in the comments
                as well as the changes made to the rule as a result of those comments,
                and the technical non-substantive changes to the final rule are
                provided as follows:
                 In particular, this final rule revises the table at 801.106 to
                reflect the addition of new VAAR clause 852.237-73, Crime Control Act--
                Requirement for Background Checks and the corresponding new OMB control
                number 2900-0863. This final rule also removes 815.303,
                Responsibilities, and 815.304, Evaluation factors and significant
                subfactors, and moves them to the VAAM as they contain procedural
                guidance that is internal to the VA.
                 This rule adds a new section, 815.370, Only one offer. The
                inclusion of this policy gives the contracting officer the ability to
                re-solicit for an action if they only receive one offer and if the
                solicitation gave offerors less than 30 days to submit a proposal. This
                final rule removes subpart 815.4, Contract Pricing, as it contains
                procedural guidance that is internal to the VA and the content has been
                moved to the VAAM.
                 This final rule removes subpart 815.6, Unsolicited Proposals, as it
                contains procedural guidance. This rulemaking adds subpart 816.5 and
                section 816.506-70, Requirements--supplement for mortuary services,
                which prescribes clause 852.216-76, Requirements--Supplement for
                Mortuary Services, for all contracts for mortuary services.
                 Under part 837, this final rule removes section 837.103,
                Contracting officer responsibility, as this internal procedural
                guidance is more suitable for the VAAM. This rule also removes the
                title and text at section 837.110, Solicitation provisions and contract
                clauses, since FAR 52.237-2, Protection of Government Buildings,
                Equipment and Vegetation, and 852.228-71, Indemnification and
                Insurance, outline contractor liabilities and required insurance levels
                and provides sufficient coverage in this area.
                 This final rule amends section 837.110-70, Services provided to
                eligible beneficiaries, by retitling it ``VA solicitation provisions
                and contract clauses,'' by removing the prescription for the clause,
                852.271-70, Non-Discrimination in Services Provided to Beneficiaries,
                and by adding the prescriptions for the new clauses 852.237-74, Non-
                Discrimination in Service Delivery, and 852.237-75, Key Personnel. This
                final rule removes subpart 837.2, Advisory and Assistance Services,
                since it duplicates coverage in FAR.
                 This rule amends section 837.403, Contract clause, to redesignate
                it as section 837.403-70, VA contract clauses, and adds prescriptions
                for three new clauses that address protection of children under
                contracts providing child care services as required by FAR 37.103(d):
                852.237-71, Nonsmoking Policy for Children Services; 852.237-72, Crime
                Control Act--Reporting of Child Abuse; and 852.237-73, Crime Control
                Act--Requirement for Background Checks.
                 Under subpart 837.70, Mortuary Services, this rule adds section
                837.7000, Scope, which cites the statutory basis for the mortuary
                service benefits covered. This final rule also removes sections
                837.7002, List of qualified funeral directors; 837.7003, Funeral
                authorization; 837.7004, Administrative necessity; and 837.7005,
                Unclaimed remains--all other cases, because this material was based on
                internal VA guidance that has been rescinded.
                 This final rule adds subpart 849.5, Contract Termination Clauses,
                section 849.504, Termination of fixed-price contracts for default (no
                text), and section 849.504-70, Termination of mortuary services, to
                prescribe a new clause 852.249-70, Termination for Default--Supplement
                for Mortuary Services. Under subpart 852.2, this
                [[Page 46449]]
                regulatory action amends clause 852.215-70, Service-Disabled Veteran-
                Owned and Veteran-Owned Small Business Evaluation Factors to add
                language to comply with the statute requiring any business concern
                determined by VA to have willfully and intentionally misrepresented a
                company's SDVOSB/VOSB status to be subject to debarment for a period of
                not less than five years.
                 This final rule amends 852.215-71, Evaluation Factor Commitments,
                by adding language requiring that any business concern determined by VA
                to have willfully and intentionally misrepresented a company's SDVOSB/
                VOSB status be subject to debarment for a period of not less than five
                years.
                 This final rule adds clause 852.215-72, Notice of Intent to Re-
                Solicit, which informs offerors that in the event that only one offer
                is received in response to a solicitation that allows offerors fewer
                than 30 days to submit their proposal, the Contracting Officer may
                cancel the solicitation and re-solicit for an additional period of at
                least 30 days in accordance with 815.370-2.
                 This rulemaking adds clause 852.216-76, Requirements--Supplement
                for Mortuary Services, for all requirements contracts for mortuary
                services. Under part 871, this rule revises section 871.212, to
                redesignate the first paragraph as (a); to remove the prescription of
                clause 852.271-70, Non-Discrimination in Services Provided to
                Beneficiaries; to renumber the remaining paragraphs as (1) through (4);
                and to add new paragraph (b) to refer the contracting officer to
                section 837.110-70(a) for the prescription of the new clause 852.237-
                74, Non-Discrimination in Service Delivery.
                 VA provided a 60-day comment period for the public to respond to
                the proposed rule. The comment period for the proposed rule ended on
                November 6, 2018 and VA received comments from one commenter. The
                issues raised in the comments as well as the changes made to the
                proposed rule on the basis of those comments are provided as follows:
                 The commenter believes VAAR 815.370-4(b) could be misread to
                suggest that, even when the exception applies, the contracting officer
                must still consider maximizing competition when only one offer has been
                received--which in many cases would mean considering whether to re-
                solicit the requirement. The commenter commends VA for its thoughtful
                development of this rule and of the agency's overarching goal of
                revising and streamlining the VAAR, stating that SDVOSBs and VOSBs, as
                well as VA contracting officers, will benefit from the clarity this
                rulemaking provides.
                 VA concurs with the commenter in that a set-aside or any of the
                other exemptions should not be subject to additional competition if the
                contracting officer determines the price is fair and reasonable.
                Therefore, we will retain the paragraph, but will modify the statement
                related to additional competition in the first part of the sentence.
                Paragraph (b) will read:
                 ``(b) The applicability of an exception in paragraph (a) of this
                section does not eliminate the need for the contracting officer to
                ensure adequate time for competition is allotted or that the price is
                fair and reasonable.''
                 The commenter believes that the SDVOSB/VOSB evaluation preference
                at 15.304 should be applied in all instances a set-aside is not
                performed, even on a lowest price technically acceptable (LPTA)
                contract action. The commenter also recommends that when applying the
                full and partial credit for SDVOSBs and VOSBs under subsection (b) in a
                procurement where price is the only factor or that uses a lowest price
                technically acceptable source selection process as described in FAR
                15.101-2, the contracting officer must deem the price offered by a
                verified SDVOSB to be 10% lower than its proposed price for evaluation
                purposes, and the price offered by a verified VOSB to be 5% lower than
                its proposed price for evaluation purposes.
                 VA appreciates the comment. However, the commenter recommends VA
                apply a price evaluation preference. VA does not possess statutory
                authority for a price evaluation preference. Therefore, no changes to
                the proposed rule will be made.
                 Beyond the contracting priority to be used when setting a contract
                or order aside, the commenter further believes that VA also must give
                an evaluation preference to SDVOSBs and VOSBs, with greater evaluation
                preference for SDVOSBs, then VOSBs, then all other small businesses
                consistent with Veterans First. In this regard, the commenter is
                recommending that VA should revise the proposed language at VAAR
                815.304-71(a), which currently says that contracting officers shall
                insert VAAR 852.215-70, SDVOSB and VOSB Evaluation Factors, ``in
                competitively negotiated solicitations that are not set aside for
                SDVOSBs or VOSBs.'' 83 FR at 45379. The commenter recommends that this
                should be revised to exclude only SDVOSB set-asides.
                 VA appreciates the comment. It is VA policy that SDVOSBs have
                priority over VOSBs when contracting under the authority of 38 U.S.C.
                8127(i). However, the intent of the evaluation preference is to provide
                additional preference to veteran-owned small businesses when a
                procurement is performed outside of the authority under 38 U.S.C. 8127.
                This is in recognition of the requirement in 38 U.S.C. 8128(a) that
                small business concerns ``owned and controlled by veterans'' have a
                priority over other small businesses. 38 U.S.C. 8128(a) does not make a
                distinction between SDVOSB or VOSB. Therefore, the proposed language
                will remain unchanged.
                 In addition, this final rule also includes two technical non-
                substantive changes to the proposed rule at section 815.370-4(a)(2) and
                (a)(3) which will be finalized in this final rule as described below.
                It updates language to comport with the FAR that was issued as FAR
                Class Deviations and does not significantly change the intent or
                meaning of the originally proposed language.
                Technical Non-Substantive Changes to the Proposed Rule
                 Under section 815.370-4, Exceptions, in this final rule, two
                technical corrections are made to the proposed rule language--
                 1. At paragraph (a)(2), the exception is corrected to remove
                ``humanitarian or peacekeeping'' and to add the word ``cyber'' as one
                of the exceptions permitted for acquisitions to facilitate defense
                against or recovery from, and to add the phrase at the end of the
                sentence, ``or to support response to an emergency or major disaster.''
                ``Humanitarian or peacekeeping'' is removed as VA supports emergencies
                or major disasters and recovery therefrom. This update comports with
                two FAR Class Deviations that adds new definitions for ``Emergency,''
                and ``Major Disaster,'' as well as adds ``cyber'' to the list of
                actions to facilitate defense against or recovery from when referring
                to the updated ``micro-purchase threshold'' and ``simplified
                acquisition threshold'' amounts authorized by an existing FAR Class
                Deviation and for which a FAR case is in progress. Therefore, 815.370-
                4, Exceptions, paragraph (a)(2) would now read: ``(2) Acquisitions in
                support of emergency operations, or to facilitate defense against or
                recovery from cyber, nuclear, biological, chemical, or radiological
                attack; or to support response to an emergency or major disaster;''.
                 2. Under paragraph (a)(3), the reference to ``VAAR 19'' is updated
                to reflect a more accurate citation of ``VAAR subpart 819.70.''
                [[Page 46450]]
                 Under section 837.7001, Solicitations provisions and contract
                clauses, one technical change is made to the proposed rule language--
                 Under paragraph (b), the text is revised to remove a reference to
                ALT VI for the clause FAR 52.216-21, Requirements. Paragraph (b) now
                reads as follows: ``The contracting officer shall insert in addition to
                FAR 52.216-21, Requirements, the following VA clauses in all mortuary
                service solicitations and contracts:'' The rest of paragraph (b) and
                section 837.7001 remain unchanged as a result of this rulemaking.
                Effect of Rulemaking
                 Title 48, Federal Acquisition Regulations System, Chapter 8,
                Department of Veterans Affairs, of the Code of Federal Regulations, as
                proposed to be revised by this rulemaking, would represent VA's
                implementation of its legal authority and publication of the Department
                of Veterans Affairs Acquisition Regulation (VAAR) for the cited
                applicable parts. Other than future amendments to this rule or
                governing statutes for the cited applicable parts, or as otherwise
                authorized by approved deviations or waivers in accordance with FAR
                subpart 1.4, Deviations from the FAR, and as implemented by VAAR
                subpart 801.4, Deviations from the FAR or VAAR, no contrary guidance or
                procedures would be authorized. All existing or subsequent VA guidance
                would be read to conform with the rulemaking if possible or, if not
                possible, such guidance would be superseded by this rulemaking as
                pertains to the cited applicable VAAR parts.
                Executive Orders 12866, 13563 and 13771
                 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
                all costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distributive impacts, and equity). E.O.
                13563 emphasizes the importance of quantifying both costs and benefits
                of reducing costs, of harmonizing rules, and of promoting flexibility.
                E.O. 12866, Regulatory Planning and Review defines ``significant
                regulatory action'' to mean any regulatory action that is likely to
                result in a rule that may: ``(1) Have an annual effect on the economy
                of $100 million or more or adversely affect in a material way the
                economy, a sector of the economy, productivity, competition, jobs, the
                environment, public health or safety, or State, local, or tribal
                Governments or communities; (2) Create a serious inconsistency or
                otherwise interfere with an action taken or planned by another agency;
                (3) Materially alter the budgetary impact of entitlements, grants, user
                fees, or loan programs or the rights and obligations of recipients
                thereof; or (4) Raise novel legal or policy issues arising out of legal
                mandates, the President's priorities, or the principles set forth in
                this Executive Order.''
                 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 final rule is
                not an E.O. 13771 regulatory action because this rule is not
                significant under E.O. 12866.
                Paperwork Reduction Act
                 The Paperwork Reduction Act of 1995 (at 44 U.S.C. 3507) requires
                that VA consider the impact of paperwork and other information
                collection burdens imposed on the public. Under 44 U.S.C. 3507(a), an
                agency may not collect or sponsor the collection of information, nor
                may it impose an information collection requirement unless it displays
                a currently valid OMB control number. See also 5 CFR 1320.8(b)(3)(vi).
                This final rule amends one information collection requirement and
                imposes one new information collection requirement. Accordingly, under
                44 U.S.C. 3507(d), VA has submitted a copy of this rulemaking action to
                OMB for its review.
                 Under the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3501-
                3521), a current collection of information, OMB No. 2900-0590, that
                will now be contained in part 837 at section 837.403-70 and in part 852
                at section 852.237-70, was revised as set forth in the SUPPLEMENTARY
                INFORMATION portion of this final rule. The clause number that appears
                in the table at 801.106 is also revised accordingly.
                 Summary of collection of information:
                 This final rule contains provisions constituting an existing
                information collection at 48 CFR 837.403 and 852.237-7, under the
                provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521)
                and has been assigned OMB control number 2900-0590. This final rule
                revises 837.403 to renumber it as 837.403-70, to retitle it as ``VA
                contract clauses,'' and to renumber the clause as 852.237-70 while
                retaining the title, ``Indemnification and Medical Liability
                Insurance.''
                 Clause 852.237-70 is used in lieu of FAR clause 52.237-7,
                Indemnification and Medical Liability Insurance, in solicitations and
                contracts for the acquisition of non-personal health care services. It
                requires the apparent successful bidder/offeror, upon the request of
                the contracting officer, prior to contract award, to furnish evidence
                of insurability of the offeror and/or all health-care providers who
                will perform under the contract. In addition, the clause requires the
                contractor, prior to commencement of services under the contract, to
                provide Certificates of Insurance or insurance policies evidencing that
                the firm possesses the types and amounts of insurance required by the
                solicitation. This final rule modifies the collection to require the
                contractor to notify the contracting officer within five days of
                becoming aware of a change in insurance providers during the
                performance period of this contract for all health-care providers
                performing under this contract, and to provide to the contracting
                officer evidence of such insurance for any subcontractor at least five
                days before commencement of work by that subcontractor.
                 Description of need for information and proposed use of
                information:
                 The information is required in order to protect VA by ensuring that
                the firm to which award may be made and the individuals who may provide
                health care services under the contract are insurable and that,
                following award, the contractor and its employees will continue to
                possess the types and amounts of insurance required by the
                solicitation. It helps ensure that VA will not be held liable for any
                negligent acts of the contractor or its employees and ensures that VA
                and VA beneficiaries will be protected by adequate insurance coverage.
                The clause number is changed to 852.237-70 to conform to the FAR
                guidance for numbering of clauses. The burden imposed by this
                collection remains unchanged as follows:
                 Estimated number of respondents annually: 1,500.
                 Estimated frequency of responses: One response for each contract to
                be awarded.
                 Estimated average burden per collection: 30 minutes.
                 Estimate of the total annual hour burden of the collection of
                information: 750 hours.
                [[Page 46451]]
                 Annual cost to all respondents: $15,000 (at $20 per hour, based on
                our belief that the majority of the labor effort would be clerical
                similar to GS-5).
                 Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), a
                new collection of information is prescribed, under OMB No. 2900-0863,
                that is contained in Part 837 at section 837.403-70 (d) and Part 852 at
                clause 852.237-73, as set forth in the SUPPLEMENTARY INFORMATION
                portion of this final rule. The clause number and the OMB clearance
                number are added to the table at 801.106.
                 Summary of collection of information:
                 Under the Crime Control Act of 1990 (42 U.S.C. 13041), each agency
                of the Federal Government, and every facility operated by the Federal
                Government, or operated under contract with the Federal Government,
                that hires, or contracts for hire, individuals involved with the
                provision of child care services to children under the age of 18 shall
                assure that all existing and newly-hired employees undergo a criminal
                history background check.
                 New VAAR clause 852.237-73, Crime Control Act--Requirement for
                Background Checks, is required in all solicitations, contracts, and
                orders that involve providing child care services to children under the
                age of 18, including social services, health and mental health care,
                child-(day) care, education (whether or not directly involved in
                teaching), and rehabilitative programs covered under the statute.
                 Description of need for information and use of information:
                 The contract clause requires the contractor to perform the
                background checks on behalf of VA to assure the safety of children
                under the age of 18 that are recipients of services under a VA program.
                It is intended to assure their safety by avoiding hiring individuals
                with a history of criminal acts and especially acts of child abuse. The
                following estimated annual burden has been revised and reduced from
                that in the proposed rule based on contract data from the last three
                fiscal years which reflect a pool of awarded contracts which include
                child care services to arrive at a revised estimated annual burden
                amount. In the proposed rule, the estimated number of respondents
                annually were based on health service contracts awarded, whereas in
                this final rule, the estimated number of respondents was calculated
                based on contracts awarded under NAICS codes associated with child care
                services. An average of 10 responses per contract is a reasonable
                estimate for an awarded child care services contract.
                 Estimated number of respondents annually: 150.
                 Estimated frequency of responses: 10 per contract awarded.
                 Estimated average burden per collection: 1 hour.
                 Estimate of the total annual hour burden of the collection of
                information: 1,500 hours.
                 Annual cost to all respondents: $74,550 ($49.70 rate including
                fringe benefits and assuming Bureau of Labor Statistics wage code 11-
                3011, Administrative Services Managers.)
                 This clause enables the VA to be in compliance with the Crime
                Control Act of 1990 and to protect children that are within its health
                care systems.
                 Notice regarding this information collection requirement was posted
                to the Federal Register via the preamble of Proposed Rule RIN 2900-AQ20
                on September 7, 2018 (83 FR 45374) with comment period closing date of
                November 6, 2018. VA didn't receive any public comments related to this
                information collection. As a result, OMB issued a tentative control
                number 2900-0863 to this new information collection to be used for
                final rule publication. After the publication of this final rule, VA
                will resubmit this information collection (2900-0863) to OMB for its
                final approval.
                Regulatory Flexibility Act
                 This final rule does 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. The overall impact of the
                rule is of benefit to small businesses owned by Veterans or service-
                disabled Veterans as the VAAR is being updated to remove extraneous
                procedural information that applies only to VA's internal operating
                processes or procedures. VA estimates no cost impact to individual
                business will result from these rule updates. On this basis, the final
                rule does 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. Therefore, under 5 U.S.C. 605(b),
                this regulatory action is exempt from the initial and final regulatory
                flexibility analysis requirements of sections 603 and 604.
                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 final rule will have no such effect on
                State, local, and tribal Governments or on the private sector.
                Congressional Review Act
                 Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
                the Office of Information and Regulatory Affairs designated this rule
                as not a major rule, as defined by 5 U.S.C. 804(2).
                List of Subjects
                48 CFR Part 801
                 Administrative practice and procedure.
                48 CFR Parts 815, 816, 837, and 849
                 Government procurement.
                48 CFR Part 852
                 Government procurement, Reporting and recordkeeping requirements.
                48 CFR Part 871
                 Government procurement, Loan programs--social programs, Loan
                programs--veterans, Reporting and recordkeeping requirements,
                Vocational rehabilitation.
                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. Robert L.
                Wilkie, Secretary, Department of Veterans Affairs, approved this
                document on July 25, 2019, for publication.
                 Dated: August 14, 2019.
                Consuela Benjamin,
                Regulations Development Coordinator, Office of Regulation Policy &
                Management, Office of the Secretary, Department of Veterans Affairs.
                 For the reasons set out in the preamble, VA revises 48 CFR parts
                801, 815, 816, 837, 849, 852 and 871 as follows:
                PART 801--DEPARTMENT OF VETERANS AFFAIRS ACQUISITION REGULATION
                SYSTEM
                0
                1. The authority citation for part 801 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121; 42 U.S.C. 1303; 41
                U.S.C. 1702; and 48 CFR 1.301-1.304.
                [[Page 46452]]
                Subpart 801.1--Purpose, Authority, Issuance
                0
                2. Revise the table in section 801.106 to read as follows:
                801.106 OMB approval under the Paperwork Reduction Act.
                * * * * *
                ----------------------------------------------------------------------------------------------------------------
                 48 CFR part or
                 Current OMB section where Current OMB
                 48 CFR part or section where identified and described control No. identified and No.
                 described
                ----------------------------------------------------------------------------------------------------------------
                809.106-1....................................................... 2900-0418 852.228-71 2900-0590
                809.504(d)...................................................... 2900-0418 852.232-70-852 2900-0422
                 .232-71
                813............................................................. 2900-0393 852.236-72 2900-0422
                832.202-4....................................................... 2900-0688 852.236-79 2900-0208
                836.606-71...................................................... 2900-0208 852.236-80 2900-0422
                 (Alt. I)
                852.207-70...................................................... 2900-0590 852.236-88 2900-0422
                852.209-70...................................................... 2900-0418 852.237-70 2900-0590
                852.211-70...................................................... 2900-0587 852.237-73 2900-0863
                852.211-72...................................................... 2900-0586 852.246-76 2900-0589
                 852.270-3 2900-0589
                ----------------------------------------------------------------------------------------------------------------
                PART 815--CONTRACTING BY NEGOTIATION
                0
                3. The authority citation for part 815 is revised to read as follows:
                 Authority: 38 U.S.C. 8127 and 8128; 40 U.S.C. 121(c); 41 U.S.C.
                1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301 through 1.304.
                Subpart 815.3--Source Selection
                815.303 [Removed]
                0
                4. Section 815.303 is removed.
                815.304 [Removed]
                0
                5. Section 815.304 is removed.
                0
                6. Section 815.304-70 is revised to read as follows:
                815.304-70 Evaluation factor commitments.
                 Contracting officers shall--
                 (a) Include the clause at 852.215-70, Service-Disabled Veteran-
                Owned Small Business and Veteran-Owned Small Business Evaluation
                Factors, in negotiated solicitations and contracts giving preference to
                offers received from VOSBs and additional preference to offers received
                from SDVOSBs;
                 (b) Use past performance in meeting SDVOSB subcontracting goals as
                a non-price evaluation factor in making award determination; and
                 (c) Use the proposed inclusion of SDVOSBs or VOSBs as
                subcontractors as an evaluation factor when competitively negotiating
                the award of contracts or task or delivery orders.
                0
                7. Section 815.304-71 is revised to read as follows:
                815.304-71 Solicitation provision and clause.
                 (a) The contracting officer shall insert the clause at 852.215-70,
                Service-Disabled Veteran-Owned Small Business and Veteran-Owned Small
                Business Evaluation Factors, in competitively negotiated solicitations
                and contracts that are not set aside for SDVOSBs or VOSBs.
                 (b) The contracting officer shall insert the clause at 852.215-71,
                Evaluation Factor Commitments, in solicitations and contracts that
                include VAAR clause 852.215-70, Service-Disabled Veteran-Owned Small
                Business and Veteran-Owned Small Business Evaluation Factors.
                0
                8. Section 815.370 is added to read as follows:
                815.370 Only one offer.
                0
                9. Section 815.370-1 is added to read as follows:
                815.370-1 Policy.
                 It is VA policy, if only one offer is received in response to a
                competitive solicitation, to--
                 (a) Take action to promote competition (see 815.370-2); and
                 (b) Ensure that the price is fair and reasonable (see 815.370-3)
                and comply with the statutory requirement for certified cost or pricing
                data (see FAR 15.403-4).
                0
                10. Section 815.370-2 is added to read as follows:
                815.370-2 Promote competition.
                 Except as provided in 815.370-4, if only one offer is received when
                competitive procedures were used and the solicitation allowed fewer
                than 30 days for receipt of proposals, the contracting officer should--
                 (a) Consult with the requiring activity as to whether the
                requirements document should be revised in order to promote more
                competition (see FAR 6.502(b) and 11.002); and
                 (b) Consider re-soliciting, allowing an additional period of at
                least 30 days for receipt of proposals.
                0
                11. Section 815.370-3 is added to read as follows:
                815.370-3 Fair and reasonable price.
                 (a) If there was ``reasonable expectation that two or more
                offerors, competing independently, would submit priced offers'' but
                only one offer is received, this circumstance does not constitute
                adequate price competition unless an official at a level above the
                contracting officer approves the determination that the price is
                reasonable (see FAR 15.403-1(c)(1)(ii)).
                 (b) Except as provided in 815.370-4(a), if only one offer is
                received when competitive procedures were used and the solicitation
                allowed at least 30 days for receipt of proposals (unless the 30-day
                requirement is not applicable in accordance with 815.370-4(a)(3)), the
                contracting officer shall--
                 (1) Determine through cost or price analysis that the offered price
                is fair and reasonable and that adequate price competition exists (with
                approval of the determination at a level above the contracting officer)
                or another exception to the requirement for certified cost or pricing
                data applies (see FAR 15.403-1(c) and 15.403-4). In these
                circumstances, no further cost or pricing data is required; or
                 (2)(i) Obtain from the offeror cost or pricing data necessary to
                determine a
                [[Page 46453]]
                fair and reasonable price and comply with the requirement for certified
                cost or pricing data at FAR 15.403-4. For acquisitions that exceed the
                cost or pricing data threshold, if no exception at FAR 15.403-1(b)
                applies, the cost or pricing data shall be certified; and
                 (ii) Enter into negotiations with the offeror as necessary to
                establish a fair and reasonable price. The negotiated price should not
                exceed the offered price.
                0
                12. Section 815.370-4 is added to read as follows:
                815.370-4 Exceptions.
                 (a) The requirements at 815.370-2 do not apply to--
                 (1) Acquisitions at or below the simplified acquisition threshold;
                 (2) Acquisitions in support of emergency, humanitarian or
                peacekeeping operations, or to facilitate defense against or recovery
                from cyber, nuclear, biological, chemical, or radiological attack; or
                to support response to an emergency or major disaster;
                 (3) Small business set-asides under FAR subpart 19.5, set-asides
                offered and accepted into the 8(a) Program under FAR subpart 19.8, or
                set-asides under the HUBZone Program (see FAR 19.1305(c)), the VA Small
                Business Program (see VAAR subpart 819.70), or the Women-Owned Small
                Business Program (see FAR 19.1505(d));
                 (4) Acquisitions of basic or applied research or development, as
                specified in FAR 35.016(a), that use a broad agency announcement; or
                 (5) Acquisitions of architect-engineer services (see FAR 36.601-2).
                 (b) The applicability of an exception in paragraph (a) of this
                section does not eliminate the need for the contracting officer to
                ensure adequate time for competition is allotted or that the price is
                fair and reasonable.
                0
                13. Section 815.370-5 is added to read as follows:
                815.370-5 Solicitation provision.
                 Use the provision at 852.215-72, Notice of Intent to Re-solicit, in
                competitive solicitations, including solicitations using FAR part 12
                procedures for the acquisition of commercial items that will be
                solicited for fewer than 30 days, unless an exception at 815.370-4
                applies.
                Subpart 815.4 [Removed and Reserved]
                0
                14. Subpart 815.4, consisting of sections 815.404, 815.404-1, and
                815.404-2, is removed and reserved.
                Subpart 815.6 [Removed and Reserved]
                0
                15. Subpart 815.6, consisting of sections 815.604, 815.606, and
                815.606-1, is removed and reserved.
                PART 816--TYPES OF CONTRACTS
                0
                16. The authority citation for part 816 is revised to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C.
                1702; and 48 CFR 1.301 through 1.304.
                Subpart 816.5--Indefinite-Delivery Contracts
                0
                17. Section 816.506-70 is added to read as follows:
                816.506-70 Requirements--supplement for mortuary services.
                 Insert the clause 852.216-76, Requirements--Supplement for Mortuary
                Services, in contracts for mortuary services containing FAR clause
                52.216-21, Requirements. The contracting officer shall insert
                activities authorized to place orders in paragraph (e) of the clause.
                PART 837--SERVICE CONTRACTING
                0
                18. The authority citation for part 837 is revised to read as follows:
                 Authority: Pub. L. 101-647; 20 U.S.C. 7181-7183; 40 U.S.C.
                121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301
                through 1.304.
                Subpart 837.1--Service Contracts--General
                837.103 [Removed]
                0
                19. Section 837.103 is removed.
                837.110 [Removed]
                0
                20. Section 837.110 is removed.
                0
                21. Section 837.110-70 is revised to read as follows:
                837.110-70 VA solicitation provisions and contract clauses.
                 (a) Contracting officers shall include the clause at 852.237-74,
                Non-Discrimination in Service Delivery, in all solicitations and
                contracts covering services provided to eligible beneficiaries.
                 (b) The contracting officer shall insert the clause at 852.237-75,
                Key Personnel, in solicitations and contracts when the contracting
                officer will require the contractor to designate contractor key
                personnel.
                Subpart 837.2 [Removed and Reserved]
                0
                22. Subpart 837.2, consisting of section 837.203, is removed and
                reserved.
                Subpart 837.4--Nonpersonal Health Care Services
                837.403 [Redesignated as 837.403-70 and Amended]
                0
                23. Section 837.403 is redesignated as 837.403-70 and the newly
                redesignated section is revised to read as follows:
                837.403-70 VA contract clauses.
                 (a) The contracting officer shall insert the clause at 852.237-70,
                Indemnification and Medical Liability Insurance, in lieu of FAR clause
                52.237-7, in solicitations and contracts for nonpersonal health care
                services, including contracts awarded under the authority of 38 U.S.C.
                7409, 38 U.S.C. 8151-8153, and part 873. The contracting officer may
                include the clause in bilateral purchase orders for nonpersonal health
                care services awarded under the procedures in FAR part 13 and part 813.
                 (b) The contracting officer shall insert the clause at 852.237-71,
                Nonsmoking Policy for Children's Services, in solicitations, contracts,
                and orders that involve health or daycare services that are provided to
                children under the age of 18 on a routine or regular basis pursuant to
                the Nonsmoking Policy for Children's Services (20 U.S.C. 6081-6084).
                 (c) The contracting officer shall insert the clause at 852.237-72,
                Crime Control Act--Reporting of Child Abuse, in solicitations,
                contracts, and orders that require performance on Federal land or in a
                federally operated (or contracted) facility and involve the
                professions/activities performed by persons specified in the Crime
                Control Act of 1990 (42 U.S.C. 13031) including, but not limited to,
                teachers, social workers, physicians, nurses, dentists, health care
                practitioners, optometrists, psychologists, emergency medical
                technicians, alcohol or drug treatment personnel, child care workers
                and administrators, emergency medical technicians and ambulance
                drivers.
                 (d) The contracting officer shall insert the clause at 852.237-73,
                Crime Control Act--Requirement for Background Checks, in solicitations,
                contracts, and orders that involve providing child care services to
                children under the age of 18, including social services, health and
                mental health care, child- (day) care, education (whether or not
                directly involved in teaching), and rehabilitative
                [[Page 46454]]
                programs covered under the Crime Control Act of 1990 (42 U.S.C. 13041).
                Subpart 837.70--Mortuary Services
                0
                24. Section 837.7000 is added to read as follows:
                837.7000 Scope.
                 This subpart applies to mortuary (funeral and burial) services for
                beneficiaries of VA as provided in 38 U.S.C. 2302, 2303, and 2308 when
                it is determined that a contract would be the most efficient and
                effective method. Contract payment terms for use of the purchase card
                as a method of payment should also be considered.
                0
                25. Section 837.7001 is revised to read as follows:
                837.7001 Solicitation provisions and contract clauses.
                 (a) The contracting officer shall insert the basic or the alternate
                of the provision at 852.237-76, Award to Single Offeror, in
                solicitations and contracts for mortuary services as follows:
                 (1) Insert the provision in all sealed bid solicitations for
                mortuary services; and
                 (2) Insert the basic provision with its alternate I in all
                negotiated solicitations for mortuary services.
                 (b) The contracting officer shall insert in addition to FAR 52.216-
                21, Requirements, the following VA clauses in all mortuary service
                solicitations and contracts:
                 (1) 852.237-77, Area of Performance.
                 (2) 852.237-78, Performance and Delivery.
                 (3) 852.237-79, Subcontracting.
                 (4) 852.237-80, Health Department and Transport Permits.
                 (c) See also 816.506-70 and 849.504-70 for additional clauses for
                use in contracts for mortuary services.
                837.7002 [Removed]
                0
                26. Section 837.7002 is removed.
                837.7003 [Removed]
                0
                27. Section 837.7003 is removed.
                837.7004 [Removed]
                0
                28. Section 837.7004 is removed.
                837.7005 [Removed]
                0
                29. Section 837.7005 is removed.
                PART 849--TERMINATION OF CONTRACTS
                0
                30. The authority citation for part 849 is revised to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C.
                1702; and 48 CFR 1.301 through 1.304.
                0
                31. Subpart 849.5 is added to read as follows:
                Subpart 849.5--Contract Termination Clauses
                849.504 Termination of fixed-price contracts for default.
                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. This clause is to be used with FAR clause 52.249-8, Default
                (Fixed-Price Supply and Service).
                PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
                0
                32. The authority citation for part 852 is revised 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--Texts of Provisions and Clauses
                0
                33. Section 852.215-70 is revised to read as follows:
                852.215-70 Service-Disabled Veteran-Owned and Veteran-Owned Small
                Business Evaluation Factors.
                 As prescribed in 815.304-71(a), insert the following clause:
                Service-Disabled Veteran-Owned and Veteran-Owned Small Business
                Evaluation Factors (OCT 2019)
                 (a) In an effort to achieve socioeconomic small business goals,
                VA shall evaluate offerors based on their service-disabled veteran-
                owned or veteran-owned small business status and their proposed use
                of eligible service-disabled veteran-owned small businesses
                (SDVOSBs) and veteran-owned small businesses (VOSBs) as
                subcontractors.
                 (b) Eligible service-disabled veteran-owned small businesses
                offerors will receive full credit, and offerors qualifying as
                veteran-owned small businesses will receive partial credit for the
                Service-Disabled Veteran-Owned and Veteran-Owned Small Business
                Status evaluation factor. To receive credit, an offeror must be
                registered and verified in the Vendor Information Pages (VIP)
                database.
                 (c) Non-Veteran offerors proposing to use SDVOSBs or VOSBs as
                subcontractors will receive some consideration under this evaluation
                factor. Offerors must state in their proposals the names of the
                SDVOSBs and VOSBs with whom they intend to subcontract and provide a
                brief description of the proposed subcontracts and the approximate
                dollar values of the proposed subcontracts. In addition, the
                proposed subcontractors must be registered and verified in the VIP
                database.
                 (d) Pursuant to 38 U.S.C. 8127(g), any business concern that is
                determined by VA to have willfully and intentionally misrepresented
                a company's SDVOSB/VOSB status is subject to debarment for a period
                of not less than five years. This includes the debarment of all
                principals in the business.
                (End of clause)
                0
                34. Section 852.15-71 is revised to read as follows:
                852.215-71 Evaluation Factor Commitments.
                 As prescribed in 815.304-71(b), insert the following clause:
                Evaluation Factor Commitments (OCT 2019)
                 (a) The offeror agrees, if awarded a contract, to use the
                service-disabled veteran-owned small businesses (SDVOSBs) or
                veteran-owned small businesses (VOSBs) proposed as subcontractors in
                accordance with 852.215-70, Service-Disabled Veteran-Owned and
                Veteran-Owned Small Business Evaluation Factors, or to substitute
                one or more SDVOSBs or VOSBs for subcontract work of the same or
                similar value.
                 (b) Pursuant to 38 U.S.C. 8127(g), any business concern that is
                determined by VA to have willfully and intentionally misrepresented
                a company's SDVOSB/VOSB status is subject to debarment for a period
                of not less than five years. This includes the debarment of all
                principals in the business.
                (End of clause)
                0
                35. Section 852.215-72 is added to read as follows:
                852.215-72 Notice of Intent to Re-Solicit.
                 As prescribed at 815.370-5, use the following provision:
                Notice of Intent to Re-Solicit (OCT 2019)
                 This solicitation provides offerors fewer than 30 days to submit
                proposals. In the event that only one offer is received in response
                to this solicitation, the Contracting Officer may cancel the
                solicitation and re-solicit for an additional period of at least 30
                days in accordance with 815.370-2.
                (End of provision)
                0
                36. Section 852.216-71 is amended by revising the section heading and
                clause heading to read as follows:
                852.216-71 Economic Price Adjustment of Contract Price(s) Based on a
                Price Index.
                * * * * *
                Economic Price Adjustment of Contract Price(s) Based on a Price Index
                (MAR 2018)
                * * * * *
                0
                37. Section 852.216-72 is amended by revising the section heading and
                clause heading to read as follows:
                [[Page 46455]]
                852.216-72 Proportional Economic Price Adjustment of Contract
                Price(s) Based on a Price Index.
                * * * * *
                Proportional Economic Price Adjustment of Contract Price(S) Based on a
                Price Index (MAR 2018)
                * * * * *
                0
                38. Section 852.216-73 is amended by revising the section heading and
                clause heading to read as follows:
                852.216-73 Economic Price Adjustment--State Nursing Home Care for
                Veterans.
                * * * * *
                Economic Price Adjustment--State Nursing Home Care for Veterans (Mar
                2018)
                * * * * *
                0
                39. Section 852.216-74 is amended by revising the section heading and
                clause heading to read as follows:
                852.216-74 Economic Price Adjustment--Medicaid Labor Rates.
                * * * * *
                Economic Price Adjustment--Medicaid Labor Rates (Mar 2018)
                * * * * *
                0
                40. Section 852.216-75 is amended by revising the section heading and
                clause heading to read as follows:
                852.216-75 Economic Price Adjustment-Fuel Surcharge.
                * * * * *
                Economic Price Adjustment--Fuel Surcharge (Mar 2018)
                * * * * *
                0
                41. Section 852.216-76 is added to read as follows:
                852.216-76 Requirements--Supplement for Mortuary Services.
                 As prescribed in 816.506-70, insert the following clause:
                Requirements--Supplement for Mortuary Services (Oct 2019)
                 (a) Except as provided in paragraphs (c) and (d) of this clause,
                the Government will order from the Contractor all of its
                requirements in the area of performance for the supplies and
                services listed in the schedule of this contract.
                 (b) Each order will be issued as a delivery order and will
                list--
                 (1) The supplies or services being ordered;
                 (2) The quantities to be furnished;
                 (3) Delivery or performance dates;
                 (4) Place of delivery or performance;
                 (5) Packing and shipping instructions;
                 (6) The address to send invoices; and
                 (7) The funds from which payment will be made.
                 (c) The Government may elect not to order supplies and services
                under this contract in instances where the body is removed from the
                area for medical, scientific, or other reason.
                 (d) In an epidemic or other emergency, the contracting activity
                may obtain services beyond the capacity of the Contractor's
                facilities from other sources.
                 (e) Contracting Officers of the following activities may order
                services and supplies under this contract:
                -----------------------------------------------------------------------
                -----------------------------------------------------------------------
                (End of clause)
                0
                42. Section 852.228-71 is amended by revising the section heading and
                clause heading to read as follows:
                852.228-71 Indemnification and Insurance.
                * * * * *
                Indemnification and Insurance (Mar 2018)
                * * * * *
                0
                43. Section 852.228-73 is amended by revising the section heading and
                clause heading to read as follows:
                852.228-73 Indemnification of Contractor--Hazardous Research
                Projects.l
                * * * * *
                Indemnification of Contractor--Hazardous Research Projects (Mar 2018)
                * * * * *
                852.237-70 [Removed]
                0
                44. Section 852.237-70 is removed.
                852.237-7 [Redesignated as 852.237-70 and Amended]
                0
                45. Section 852.237-7 is redesignated as section 852.237-70 and the
                newly redesignated section is revised to read as follows:
                852.237-70 Indemnification and Medical Liability Insurance.
                 As prescribed in 837.403-70(a), insert the following clause:
                Indemnification and Medical Liability Insurance (Oct 2019)
                 (a) It is expressly agreed and understood that this is a non-
                personal services contract, as defined in Federal Acquisition
                Regulation (FAR) 37.101, under which the professional services
                rendered by the Contractor or its health-care providers are rendered
                in its capacity as an independent contractor. The Government may
                evaluate the quality of professional and administrative services
                provided but retains no control over professional aspects of the
                services rendered including, by example, the Contractor's or its
                health-care providers' professional medical judgment, diagnosis, or
                specific medical treatments. The Contractor and its health-care
                providers shall be liable for their liability-producing acts or
                omissions. The Contractor shall maintain or require all health-care
                providers performing under this contract to maintain, during the
                term of this contract, professional liability insurance issued by a
                responsible insurance carrier of not less than the following
                amount(s) per specialty per occurrence: [Contracting Officer's Note:
                Insert the dollar amount value(s) of standard coverage(s) prevailing
                within the local community as to the specific medical specialty, or
                specialties, concerned, or such higher amount as the Contracting
                Officer deems necessary to protect the Government's interests.]
                However, if the Contractor is an entity or a subdivision of a State
                that either provides for self-insurance or limits the liability or
                the amount of insurance purchased by State entities, then the
                insurance requirement of this contract shall be fulfilled by
                incorporating the provisions of the applicable State law.
                 (b) An apparently successful offeror, upon request of the
                Contracting Officer, shall, prior to contract award, furnish
                evidence of the insurability of the offeror and/or of all health-
                care providers who will perform under this contract. The submission
                shall provide evidence of insurability concerning the medical
                liability insurance required by paragraph (a) of this clause or the
                provisions of State law as to self-insurance, or limitations on
                liability or insurance.
                 (c) The Contractor shall, prior to commencement of services
                under the contract, provide to the Contracting Officer Certificates
                of Insurance or insurance policies evidencing the required insurance
                coverage and an endorsement stating that any cancellation or
                material change adversely affecting the Government's interest shall
                not be effective until 30 days after the insurer or the Contractor
                gives written notice to the Contracting Officer. Certificates or
                policies shall be provided for the Contractor and/or each health-
                care provider who will perform under this contract.
                 (d) The Contractor shall notify the Contracting Officer within 5
                days of becoming aware of a change in insurance providers during the
                performance period of this contract for all health-care providers
                performing under this contract. The notification shall provide
                evidence that the Contractor and/or health-care providers will meet
                all the requirements of this clause, including those concerning
                liability insurance and endorsements. These requirements may be met
                either under the new policy, or a combination of old and new
                policies, if applicable.
                 (e) The Contractor shall insert the substance of this clause,
                including this paragraph (e), in all subcontracts for health-care
                services under this contract. The Contractor shall be responsible
                for compliance by any subcontractor or lower-tier subcontractor with
                the provisions set forth in paragraph (a) of this clause. At least 5
                days before the commencement of work by any subcontractor, the
                Contractor shall furnish to the Contracting Officer evidence of such
                insurance.
                (End of clause)
                0
                46. Section 852.237-71 is added to read as follows:
                [[Page 46456]]
                852.237-71 Nonsmoking Policy for Children's Services.
                 As prescribed in 837.403-70(b), insert the following clause:
                Nonsmoking Policy for Children's Services (Oct 2019)
                 (a) Smoking in facilities where certain federally funded
                children's services are provided shall be prohibited. The Pro-
                Children Act of 2001 (20 U.S.C. 7181-7183) prohibits smoking within
                any indoor facility (or portion thereof), whether owned, leased, or
                contracted for, that is used for the routine or regular provision of
                health or day care services that are provided to children under the
                age of 18. The statutory prohibition also applies to indoor
                facilities that are constructed, operated, or maintained with
                Federal funds.
                 (b) By acceptance of this contract or order, the Contractor
                agrees to comply with the requirements of the Act. The Act also
                applies to all subcontracts awarded under this contract for the
                specified children's services. Accordingly, the Contractor shall
                ensure that each of its employees, and any subcontractor staff, is
                made aware of, understands, and complies with the provisions of the
                Act. Failure to comply with the Act may result in the imposition of
                a civil monetary penalty in an amount not to exceed $1,000 for each
                violation and/or the imposition of an administrative compliance
                order on the responsible entity. Each day a violation continues
                constitutes a separate violation.
                (End of clause)
                0
                47. Section 852.237-72 is added to read as follows:
                852.237-72 Crime Control Act--Reporting of Child Abuse.
                 As prescribed in 837.403-70(c), insert the following clause:
                Crime Control Act--Reporting of Child Abuse (Oct 2019)
                 (a) Public Law 101-647, also known as the Crime Control Act of
                1990 (Act), imposes responsibilities on certain individuals who,
                while engaged in a professional capacity or activity, as defined in
                the Act, on Federal land or in a federally-operated (or contracted)
                facility, learn of facts that give the individual reason to suspect
                that a child has suffered an incident of child abuse.
                 (b) The Contractor shall comply with the requirements of the
                Act. The Act also applies to all applicable subcontracts awarded
                under this contract. Accordingly, the Contractor shall ensure that
                each of its employees, and any subcontractor staff, is made aware
                of, understands, and complies with the provisions of the Act.
                (End of clause)
                0
                48. Section 852.237-73 is added to read as follows:
                852.237-73 Crime Control Act--Requirement for Background Checks.
                 As prescribed in 837.403-70(d), insert the following clause:
                Crime Control Act--Requirement for Background Checks (Oct 2019)
                 (a) Public Law 101-647, also known as the Crime Control Act of
                1990 (Act), requires that all individuals involved with the
                provision of child care services, as defined in the Act, to children
                under the age of 18 undergo a criminal background check.
                 (b) The Contracting Officer will provide the necessary
                information to the Contractor regarding the process for obtaining
                the background check. The Contractor may hire a staff person
                provisionally prior to the completion of a background check, if at
                all times prior to the receipt of the background check during which
                children are in the care of the newly-hired person, the person is
                within the sight and under the supervision of a previously
                investigated staff person.
                 (c) The Contractor shall comply with the requirements of the
                Act. The Act also applies to all applicable subcontracts awarded
                under the contract. Accordingly, the Contractor shall ensure that
                each of its employees, and any subcontractor staff, is made aware
                of, understands, and complies with the provisions of the Act.
                (End of clause)
                0
                49. Section 852.237-74 is added to read as follows:
                852.237-74 Non-Discrimination in Service Delivery.
                 As prescribed in 837.110-70(a), the Contracting Officer shall
                insert the following clause in solicitations and contracts:
                Non-Discrimination in Service Delivery (Oct 2019)
                 It is the policy of the Department of Veterans Affairs that no
                person otherwise eligible will be excluded from participation in,
                denied the benefits of, or subjected to discrimination in the
                administration of VA programs and services based on non-merit
                factors such as race, color, national origin, religion, sex, gender
                identity, sexual orientation, or disability (physical or mental). By
                acceptance of this contract, the Contractor agrees to comply with
                this policy in supporting the program and in performing the services
                called for under this contract. The Contractor shall include this
                clause in all subcontracts awarded under this contract for
                supporting or performing the specified program and services.
                Accordingly, the Contractor shall ensure that each of its employees,
                and any subcontractor staff, is made aware of, understands, and
                complies with this policy.
                (End of clause)
                0
                50. Section 852.237-75 is added to read as follows:
                852.237-75 Key Personnel.
                 As prescribed in 837.110-70(b), insert the following clause:
                Key Personnel (Oct 2019)
                 The key personnel specified in this contract are considered to
                be essential to work performance. At least 30 days prior to the
                Contractor voluntarily diverting any of the specified individuals to
                other programs or contracts the Contractor shall notify the
                Contracting Officer and shall submit a justification for the
                diversion or replacement and a request to replace the individual.
                The request must identify the proposed replacement and provide an
                explanation of how the replacement's skills, experience, and
                credentials meet or exceed the requirements of the contract. If the
                employee of the Contractor is terminated for cause or separates from
                the contractor voluntarily with less than thirty days notice, the
                Contractor shall provide the maximum notice practicable under the
                circumstances. The Contractor shall not divert, replace, or announce
                any such change to key personnel without the written consent of the
                Contracting Officer. The contract will be modified to add or delete
                key personnel as necessary to reflect the agreement of the parties.
                (End of clause)
                0
                51. Section 852.237-76 is added to read as follows:
                852.237-76 Award to Single Offeror.
                 As prescribed in 837.7001(a)(1), insert the following provision:
                Award to Single Offeror (Oct 2019)
                 (a) Award shall be made to a single offeror.
                 (b) Offerors shall include unit prices for each item. Failure to
                include unit prices for each item will be cause for rejection of the
                entire offer.
                 (c) The Government will evaluate offers on the basis of the
                estimated quantities shown.
                 (d) Award will be made to that responsive, responsible offeror
                whose total aggregate offer is the lowest price to the Government.
                (End of provision)
                 Alternate I (OCT 2019). As prescribed in 837.7001(a)(2), insert the
                following paragraph (d) in lieu of paragraph (d) of the basic
                provision:
                 (d) Award will be made to that responsive, responsible offeror
                whose total aggregate offer is in the best interest of the Government.
                0
                52. Section 852.237-77 is added to read as follows:
                852.237-77 Area of Performance.
                 As prescribed in 837.7001(b)(1), insert the following clause:
                Area of Performance (Oct 2019)
                 (a) The area of performance is as specified in the contract.
                 (b) The Contractor shall take possession of the remains at the
                place where they are located, transport them to the Contractor's
                place of preparation, and later transport them to a place designated
                by the Contracting Officer.
                 (c) The Contractor will not be reimbursed for transportation
                when both the place where the remains were located and the delivery
                point are within the area of performance.
                 (d) If remains are located outside the area of performance, the
                Contracting Officer may
                [[Page 46457]]
                place an order with the Contractor under this contract or may obtain
                the services elsewhere. If the Contracting Officer requires the
                Contractor to transport the remains into the area of performance,
                the Contractor shall be paid the amount per mile in the schedule for
                the number of miles required to transport the remains by a
                reasonable route from the point where located to the boundary of the
                area of performance.
                 (e) The Contracting Officer may require the Contractor to
                deliver remains to any point within 100 miles of the area of
                performance. In this case, the Contractor shall be paid the amount
                per mile in the schedule for the number of miles required to
                transport the remains by a reasonable route from the boundary of the
                area of performance to the delivery point.
                (End of clause)
                0
                53. Section 852.237-78 is added to read as follows:
                852.237-78 Performance and Delivery.
                 As prescribed in 837.7001(b)(2), insert the following clause:
                Performance and Delivery (Oct 2019)
                 (a) The Contractor shall furnish the material ordered and
                perform the services specified as promptly as possible, but not
                later than 36 hours after receiving notification to remove the
                remains, excluding the time necessary for the Government to inspect
                and check results of preparation.
                 (b) The Government may, at no additional charge, require the
                Contractor to hold the remains for an additional period not to
                exceed 72 hours from the time the remains are casketed and final
                inspection is completed.
                (End of clause)
                0
                54. Section 852.237-79 is added to read as follows:
                852.237-79 Subcontracting.
                 As prescribed in 837.7001(b)(3), insert the following clause:
                Subcontracting (Oct 2019)
                 The Contractor shall not subcontract any work under this
                contract without the Contracting Officer's written approval. This
                clause does not apply to contracts of employment between the
                Contractor and its personnel.
                (End of clause)
                0
                55. Section 852.237-80 is added to read as follows:
                852.237-80 Health Department and Transport Permits.
                 As prescribed in 837.7001(b)(4), insert the following clause:
                Health Department and Transport Permits (Oct 2019)
                 The Contractor shall meet all State and local licensing
                requirements and obtain and furnish all necessary health department
                and shipping permits at no additional cost to the Government. The
                Contractor shall ensure that all necessary health department permits
                are in order for disposition of the remains.
                (End of clause)
                0
                56. Section 852.249-70 is added 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 (Oct 2019)
                 The clause entitled ``Default'' in FAR 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)
                852.271-70 [Removed and Reserved]
                0
                57. Section 852.271-70 is removed and reserved.
                PART 871--LOAN GUARANTY AND VOCATIONAL REHABILITATION AND
                EMPLOYMENT PROGRAMS
                0
                58. The authority citation for part 871 continues to read as follows:
                 Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C.
                1702; and 48 CFR 1.301-1.304.
                Subpart 871.2--Vocational Rehabilitation and Employment Service
                0
                59. Section 871.212 is revised to read as follows:
                871.212 Contract clauses.
                 (a) Contracting officers shall use the following clauses, as
                appropriate, in solicitations and contracts for vocational
                rehabilitation and employment services as they pertain to training and
                rehabilitation services and contracts for counseling services:
                 (1) 852.271-72, Time Spent by Counselee in Counseling Process.
                 (2) 852.271-73, Use and Publication of Counseling Results.
                 (3) 852.271-74, Inspection.
                 (4) 852.271-75, Extension of Contract Period.
                 (b) See 837.110-70(a) for clause 852.237-74, Non-Discrimination in
                Service Delivery.
                [FR Doc. 2019-17824 Filed 9-3-19; 8:45 am]
                 BILLING CODE 8320-01-P
                

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