[Federal Register Volume 86, Number 232 (Tuesday, December 7, 2021)]
[Proposed Rules]
[Pages 69452-69542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24421]



[[Page 69451]]

Vol. 86

Tuesday,

No. 232

December 7, 2021

Part III





Department of Transportation





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48 CFR Chapter 12





Streamline and Update the Department of Transportation Acquisition 
Regulation (TAR Case 2020-001); Proposed Rule

  Federal Register / Vol. 86 , No. 232 / Tuesday, December 7, 2021 / 
Proposed Rules  

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DEPARTMENT OF TRANSPORTATION

48 CFR Chapter 12

RIN 2105-AE26


Streamline and Update the Department of Transportation 
Acquisition Regulation (TAR Case 2020-001)

AGENCY: Department of Transportation.

ACTION: Proposed rule.

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SUMMARY: The Department of Transportation (DOT) is proposing to amend 
and update its Transportation Acquisition Regulation (TAR). Under this 
initiative, all parts of the regulation were reviewed to streamline the 
regulation, to revise or remove policy that has been superseded by 
changes in the Federal Acquisition Regulation (FAR), to remove 
procedural guidance that is internal to DOT and move it to the 
Transportation Acquisition Manual (TAM) as appropriate, and to 
incorporate new regulations or policies required to implement or 
supplement the FAR to execute DOT's unique mission and 
responsibilities. The TAM will incorporate portions of the internal 
procedural guidance removed from the TAR, as well as other internal 
agency acquisition policy. This rulemaking revises the entire TAR.

DATES: Comments must be received on or February 7, 2022 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 Docket Management 
System, U.S. Department of Transportation, 1200 New Jersey Avenue SE, 
Washington, DC 20590. Please identify the docket number DOT-OST-2020-
0017 at the beginning of your comments and indicate they are submitted 
in response to ``RIN 2105-AE26--Streamline and Update the Department of 
Transportation Acquisition Regulation (TAR Case 2020-001).'' All 
comments will be available on www.Regulations.gov. You may review the 
public docket containing comments to the proposed regulation in person 
in the Dockets Office, by calling the front desk at (202) 366-9317 or 
(202) 366-9826 to make an appointment. The Dockets Office is on the 
Green Line, Navy Yard-Ballpark Metro Stop at the Department of 
Transportation's address above. Upon arrival, please call the Front 
Desk at (202) 366-9317 or (202) 366-9826 to retrieve an escort.

FOR FURTHER INFORMATION CONTACT: Ms. LaWanda Morton-Chunn, Procurement 
Analyst, Acquisition Policy, Oversight & Business Strategies (M-61), 
Office of the Senior Procurement Executive (OSPE), Department of 
Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590, (202) 
366-2267. This is not a toll-free telephone number.

SUPPLEMENTARY INFORMATION:

Background

    This rulemaking is being taken under the authority of the Office of 
Federal Procurement Policy (OFPP) Act which provides the authority for 
an agency head to authorize the issuance of agency acquisition 
regulations that implement or supplement the FAR. The OFPP Act, as 
codified in 41 U.S.C. 1702, provides the authority for the FAR and for 
the issuance of agency acquisition regulations consistent with 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.
    DOT has determined that changes to the TAR are necessary to align 
it to the FAR. DOT conducted a comprehensive review of the 2005 edition 
of the TAR with the goal of updating obsolete coverage, streamlining 
policies and procedures where applicable consistent with current 
guidance, and implementing new internal policies applicable to the DOT 
acquisition workforce. As a result, the TAR Integrated Project Team 
(IPT) under the direction of the Senior Procurement Executive and 
composed of representatives from DOT's operating administrations (OAs) 
and agency stakeholders, have participated in a complete revision of 
the TAR.
    This proposed rule reflects changes made to implement and/or 
supplement the FAR. The TAR has been substantially revised and 
streamlined to update references to obsolete policies, procedures and 
organizations; and incorporate electronic links to references such as 
provisions of the FAR. Revisions to the TAR are necessary to 
incorporate additional policies, solicitation provisions, or contract 
clauses that implement and supplement the FAR to satisfy DOT mission 
needs, and to incorporate changes in dollar and approval thresholds, 
definitions, and DOT position titles and offices. The reissued TAR 
would correct inconsistencies, remove redundant and duplicate material 
already covered by the FAR, delete outdated material or information, 
and appropriately renumber TAR 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 a TAR revision team from each of the OAs and key agency 
stakeholders. This effort will create a 2021 edition of the TAR.
    Currently, DOT is tracking a number of new FAR case proposed and 
final rules, as well as Executive Orders (E.O.s) and directives that 
the Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) are reviewing for potential impact 
to the FAR system. The Executive Orders include E.O. 13985, ``Advancing 
Racial Equity and Support for Underserved Communities Through the 
Federal Government'' (86 FR 7009; Jan. 25, 2021), E.O. 14005, 
``Ensuring the Future is Made in All of America by All of America's 
Workers'' (86 FR 7475; Jan. 28, 2021), and E.O. 14008, ``Tackling the 
Climate Crisis at Home and Abroad'' (86 FR 7619; Feb. 1, 2021). If and 
when FAR cases and proposed rules are drafted and FAR final rules are 
published, DOT intends to examine each of these for impact to the TAR 
and any updates that may be required to maintain the TAR. DOT is 
institutionalizing an ongoing, sustained TAR refreshment process, so 
that as FAR proposed and final rules, E.O.s, and other directives are 
issued, DOT will initiate new TAR cases to bring the regulation in 
alignment and to avoid duplication, as necessary. DOT will examine any 
FAR final rules that become effective and will take into consideration 
such FAR changes, as appropriate, in subsequent rulemakings. When 
needed, DOT will also consider use of an advanced notice of public 
rulemaking (ANPRM) to obtain public input as the agency implements 
rulemaking to address new and emerging issues that may be identified by 
the Councils or by DOT as a result of E.O.s and other directives. DOT 
will use this public input to inform how DOT implements such guidance 
in the TAR.
    The TAR uses the regulatory structure and arrangement of the FAR, 
and headings and subject areas are broken up consistent with the FAR 
content. The TAR is divided into subchapters, parts (each of which 
covers a separate aspect of acquisition), subparts, sections, and 
subsections.
    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 TAR is set forth at Title 48 CFR, chapter 12, parts 1201 to 1253.

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    DOT is proposing to revise the TAR to add new policy or regulatory 
requirements and to remove any guidance that is applicable only to 
DOT's internal operating processes or procedures. Codified acquisition 
regulations may be amended and revised only through rulemaking.

Discussion and Analysis

    DOT proposes to make the following changes to the TAR as a part of 
its updating and streamlining initiative. For procedural guidance cited 
below that is proposed to be deleted from the TAR, each section cited 
for removal has been considered for inclusion in DOT's internal agency 
operating procedures in accordance with FAR 1.301(a)(2). Similarly, 
delegations of authorities that are removed from the TAR will be 
included in the TAM as internal agency guidance.
    We propose to revise the following parts of the TAR, 48 CFR chapter 
12: Parts 1201, 1202, 1203, 1204, 1205, 1206, 1207, 1211, 1213, 1215, 
1216, 1217, 1219, 1222, 1223, 1227, 1228, 1231, 1232, 1233, 1235, 1236, 
1237, 1239, 1242, 1246, 1247, 1252, and 1253.
    We propose to add two parts to the TAR: 1209--Contractor 
Qualifications, and 1212--Acquisition of Commercial Items.
    And, to streamline the TAR and improve its use and benefit to the 
public, small businesses, and the DOT acquisition workforce, we propose 
to remove the following two parts from the TAR: 1214--Sealed Bidding, 
and 1245--Government Property, and which would also move internal 
procedural guidance still applicable to the TAM, and/or remove outdated 
and unnecessary text or policy redundant to the FAR.
    We propose to revise the authority citations cited in each TAR part 
to reflect as follows: 5 U.S.C. 301; 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.
    We propose to remove the reference to Public Law 113-76, the 
Consolidated Appropriations Act of 2014, because it is unnecessary to 
describe the authority of the Secretary of Transportation, as delegated 
to the Senior Procurement Executive, to issue agency specific 
acquisition regulations. The authority for agencies to issue agency-
specific supplements to the FAR is already set forth in Title 41, 
Public Contracts and is the more common reference for Federal agency or 
departmental acquisition regulation authority.
    We propose to remove the citation to 41 U.S.C. 418(b) as it is 
outdated.
    We propose to include a reference to 41 U.S.C. 1121(c)(3). This 
provision states that the authority of an executive agency under 
another law to prescribe policies, regulations, procedures, and forms 
for procurement is subject to the authority conferred in section 1121, 
as well as other sections of Title 41.
    We propose to add an authority citation for 41 U.S.C. 1702 which 
addresses the acquisition planning and management responsibilities of 
DOT's Senior Procurement Executive.
    And we propose to revise the citation currently shown as ``(FAR) 48 
CFR 1.3'' to reflect the standard FAR drafting convention citation of 
``48 CFR 1.301-1.304.''
    Any other proposed changes to authorities are shown under the 
individual parts below.
    Throughout the proposed rule (including in the discussion of each 
proposed revised TAR part), whenever DOT indicates that it proposes to 
revise and update the citation(s) to the FAR and TAR, it is for the 
purpose of comporting with FAR Drafting Guidelines convention and 
style, and in accordance with FAR 1.105-2, Arrangement of regulations, 
that specifies how the FAR and by extension the TAR is to be referenced 
within the body of the regulation. References to revising and updating 
citations are to either correct the current citations, correct any FAR 
or TAR references to a more suitable citation, or add appropriate FAR 
or TAR citations where necessary.

TAR Part 1201--Federal Acquisition Regulations System

    We propose to revise the authority citations for part 1201, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1201.1, Purpose, Authority, Issuance, we propose to 
revise 1201.101, Purpose, to expand discussion of how DOT's internal 
operational procedures are included in the TAM.
    We propose to add 1201.102-70, DOT Statement of guiding principles 
for Department of Transportation Acquisition System, to provide the 
vision and mission of the TAR, as well as the role of the Office of the 
Senior Procurement Executive (OSPE) and its responsibility to establish 
DOT's acquisition policies and procedures.
    We propose to revise 1201.104, Applicability, to update the 
citation to the FAR and TAR to comport with FAR Drafting Guidelines 
convention and style and in accordance with FAR 1.105-2, Arrangement of 
regulations, as well to remove an outdated agency organizational 
reference.
    We propose to revise 1201.105, Issuance, and 1201.105-1, 
Publication and code arrangement, to update the citation to the FAR and 
TAR references, and to provide a new internet website link where the 
DOT's online version of the TAR can be accessed.
    In 1201.105-2, Arrangement of regulations, we propose to also 
revise the FAR and TAR references, and to remove DOT Operating 
Administration (OA) acronyms which are unnecessary in this section and 
duplicative of the OA acronyms already provided in the TAR under 
1202.101, Definitions. And at 1201.105-2(c)(3) we also propose to 
implement FAR 1.105-2(c)(3) by including more detail on the appropriate 
references and citations to the TAR for the public and the DOT 
acquisition workforce to ensure proper citation when referencing the 
TAR, as well as ensure appropriate usage within DOT specific clauses 
and provisions.
    In 1201.105-3, Copies, we propose to revise the text to provide 
current methods of acquiring copies of the TAR and links to where DOT's 
posted version of the TAR and Transportation Acquisition Circulars 
(TACs) are located on the DOT website.
    We propose to revise 1201.106, OMB approval under the Paperwork 
Reduction Act (PRA), to update current procedures on information 
collection and recordkeeping requirements to reflect that details 
concerning any OMB approved control numbers are contained in the TAM. 
This comports with the style convention benchmarked with other key FAR 
agency supplements including the Department of Defense Federal 
Acquisition Regulation Supplement (DFARS). This helps streamline the 
TAR to remove administrative details on DOT TAR-related OMB control 
numbers, when issued for PRA related information collections, which are 
available at reginfo.gov. The public may also conduct online searches 
of DOT-related OMB approved information collection requests (ICRs) at 
reginfo.gov.
    In subpart 1201.2, Administration, we propose to revise section 
1201.201-1, The two councils, to spell out the acronym SPE to reflect 
``Senior Procurement Executive'' who is responsible for providing a DOT 
representative to the Civilian Agency Acquisition Council (CAAC).
    In subpart 1201.3--Agency Acquisition Regulations, we propose to 
revise 1201.301, Policy, to make grammatical corrections to the text, 
as well as to revise citations to the FAR and TAR references. In 
addition, we propose to revise policy under this section regarding 
Operating

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Administration (OA) acquisition regulations to clarify that the SPE 
approval is required for OA supplemental regulations to the TAR and to 
state that if approved by the SPE, a rule shall be prepared by the 
Office of the Senior Procurement Executive and published in the Federal 
Register in accordance with FAR 1.501.
    In 1201.301-70, Amendment of TAR 48 CFR chapter 12, we propose to 
retitle the section to read: ``Amendment of the Transportation 
Acquisition Regulation'' to comport with FAR Drafting Convention style. 
We also propose to update the address for the OSPE where recommended 
changes to the TAR may be sent, to include providing a new email 
address, and to provide updated procedures to follow when submitting 
proposed TAR recommendations.
    In 1201.301-71, Effective date, we propose to change the title of 
the section to read: ``Effective dates for Transportation Acquisition 
Circulars'' to more accurately reflect the subject matter covered. We 
also propose to revise the underlying text to provide clarity to the 
effective dates set forth in TACs to make clear that any new or revised 
provisions, clauses, procedures, or forms must be included in 
solicitations, contracts or modifications issued thereafter whenever 
effect dates indicate the policy or procedures are ``effective upon 
receipt,'' ``upon a specified date,'' or that changes set forth in the 
document are ``to be used upon receipt.'' We also propose to revise the 
text to clarify that unless expressly directed by statute or 
regulation, solicitations in process or negotiations that are complete 
when a TAC is issued are not required to include or insert new 
requirements, forms, clauses, or provisions. We also propose to provide 
that the chief of the contracting office must determine that it is in 
the best interest of the Government to exclude the new information and 
to set forth the requirement that a determination and findings must be 
included in the contract file to document that determination.
    In 1201.301-72, TAC numbering, we propose to revise the title of 
the section to reflect ``Transportation Acquisition Circular 
numbering'' to more accurately reflect the subject matter covered. We 
also propose to revise the underlying text to spell out acronyms and 
update a cited example for the public.
    In 1201.304, Agency control and compliance procedures, DOT is 
proposing to remove internal procedures that more appropriately belong 
in the TAM, and to correct TAR citation references.
    In subpart 1201.470, Deviations from the FAR and TAR, we propose to 
revise the subpart number from 1201.4-70 to 1201.470 to reflect the 
updated numbering convention to indicate DOT is supplementing the FAR. 
In 1201.403, Individual deviations, and 1201.404, Class deviations, we 
propose to correct capitalization and add an acronym for the head of 
the contracting activity (HCA); make grammatical corrections to the 
text; and revise citations to FAR and TAR references.
    In subpart 1201.6, Career Development, Contracting Authority and 
Responsibilities, we propose to revise the title to make a minor 
punctuation correction. We propose to add coverage under subpart 1201.6 
by adding 1201.602-2, Responsibilities, which would specify that each 
DOT OA is responsible for establishing Contracting Officer's 
Representative (COR) nomination and appointment procedures consistent 
with the DOT Acquisition Workforce Career Development Program. This 
would delegate this responsibility to the appropriate organizational 
level to ensure the most effective and efficient oversight of the 
process. In 1201.602-3, Ratification of unauthorized commitments, DOT 
is making no change to the existing text that provides DOT policy that 
procurement decisions shall be made only by Government officials having 
authority to carry out such acquisitions.
    In 1201.603, General, we propose to revise the text to expand on 
the responsibility delegated to each DOT OA for appointment of 
contracting officers that support the individual OA's mission. It 
establishes the requirement for each HCA to appoint a Chief of the 
Contracting Office (COCO) for each OA and further delegates to the HCA 
the authority to select, appoint, and terminate the appointment of 
contracting officers within the OA. It would also further specify that 
the HCA may re-delegate the contracting officer appointment authority 
to a level no lower than that of the COCO.
    In subpart 1201.6 we also propose to add a new section 1201.604-70, 
Contract clause, which provides the prescription for contracting 
officers to insert the clause at 1252.201-70, Contracting Officer's 
Representative, in solicitations and contracts that are identified as 
other than firm-fixed-price, and to insert the clause as well in firm-
fixed-price solicitations and contracts when appointment of a 
contracting officer's representative is anticipated.

TAR Part 1202--Definitions of Words and Terms

    We propose to revise the authority citations for part 1202, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1202.1, Definitions, we propose to renumber section 
1202.1 to read 1202.101 to accurately implement FAR 2.101.
    In the newly renumbered 1202.101, Definitions, we propose to add 
two definitions reflecting frequently used new titles, and to revise 
existing definitions to correct citations, add acronyms, to reorder 
definitions alphabetically in the section, and to reorder current DOT 
Operating Administrations and existing components. We propose to add 
definitions for: Agency Advocate for Competition and Chief Financial 
Officer (CFO). We also propose to revise the definition for Head of the 
Contracting Activity (HCA) to identify an alternate HCA-level for the 
Great Lakes St. Lawrence Seaway Development Corporation (GLS) OA. All 
HCAs are members of the Senior Executive Service, except for the HCA 
within the GLS, who must be an individual no lower than one level above 
the COCO.
    In subpart 1202.70, internet Links, we propose to revise the title 
of the subpart to read: ``Abbreviations'' as it would more accurately 
reflect the subject matter of the supplementary subpart since the text 
is revised; it would also remove a reference to citing corresponding 
internet addresses. The intent of the subpart is to provide commonly 
used abbreviations or acronyms rather than internal instructions on how 
to cite to the internet within the body of the TAR. In the revised text 
we are proposing to add sixteen commonly used abbreviations or acronyms 
in common use through the TAR to ensure a common understanding and 
usage when utilized within individual TAR parts.

TAR Part 1203--Improper Business Practices and Personal Conflicts of 
Interest

    We propose to revise the authority citations for part 1203, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1203.1, Safeguards, we propose the revise the text at 
1203.101-3, Agency regulations, to reference

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DOT's Supplemental Standards of Ethical Conduct for Employees of the 
DOT at 5 CFR part 6001 and state that the standards apply to all DOT 
employees.
    In subpart 1203.2, Contractor Gratuities to Government Personnel, 
we propose to revise 1203.203, Reporting suspected violations of the 
Gratuities clause, to correct punctuation and to provide the updated 
address where each DOT Operating Administrations' appointed Chief of 
the Contracting Office (COCO) is required to report suspected 
violations to the Office of the Inspector General. In 1203.204, 
Treatment of violations, we propose to revise the text to make one FAR 
reference citation revision.
    In subpart 1203.3, Reports of Suspected Antitrust Violations, we 
propose to revise 1203.301, General, and 1203.303, Reporting suspected 
antitrust violations, to correct the TAR citations, and in 1203.303, we 
would remove the word ``also'' after ``shall'' in the first sentence so 
that it would read: ``The same procedures contained in 1203.203 shall 
be followed . . .''.
    In subpart 1203.4, Contingent Fees, we propose to revise 1203.405, 
Misrepresentations or violations of the Covenant Against Contingent 
Fees, to clarify the procedures for reporting the attempted or actual 
exercise of improper influence, misrepresentation of a contingent fee 
arrangement, or other violations of the Covenant Against Contingent 
Fees.
    In subpart 1203.5, Other Improper Business Practices, and 1203.502-
2, Subcontractor kickbacks, we propose to add the statutory reference 
of 41 U.S.C. chapter 87, Kickbacks, to clarify DOT's procedures for 
reporting a violation of subcontractor kickbacks.
    We propose to add language at subpart 1203.7, Voiding and 
Rescinding Contracts, in 1203.703, Authority, to state that the head of 
the contracting activity (HCA) is authorized by the Secretary of 
Transportation to declare void and rescind contracts and other 
transactions listed in Public Law 87-849 in which there has been a 
final conviction for bribery, conflict of interest, or any other 
violation of 18 U.S.C. 201-224, and that the Head of the Operating 
Administration is authorized to make determinations in accordance with 
FAR 3.703(b)(2).
    We also propose to add coverage under subpart 1203.9, Whistleblower 
Protections for Contractor Employees, and in 203.906, Remedies, that 
would provide that the HCA is authorized to make determinations and 
take actions under FAR 3.906(a), and to take actions under FAR 
3.906(b).

TAR Part 1204--Administrative Matters

    We propose to revise the authority citations for part 1204, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise the title of the part to ``Administrative and 
Information Matters'' to comport with the FAR and reflect the updated 
title of the part.
    In subpart 1204.1, Contract Execution, we are correcting the FAR 
reference in 1204.103 to a standard drafting convention.
    We propose to add coverage in subpart 1204.5, Electronic Commerce 
in Contracting, and 1204.502, Policy, to state that DOT's policy 
preference is to use electronic signatures, records, and communication 
methods in lieu of paper transactions whenever practicable.
    In subpart 1204.8, Government Contract Files, we propose to add 
section 1204.801, General, to state that the Chief of the Contracting 
Office (COCO) is designated as the head of each office performing 
contracting and contract administration functions and to state that the 
Chief Financial Officer (CFO) of the Operating Administration (OA) is 
designated as the head of the office performing paying functions.
    We propose to add 1204.804, Closeout of contract files, as a 
section title with no text to provide ease of reference to the FAR 
implemented paragraph and subject matter.
    In 1204.804-570, Supporting closeout documents, we propose to 
revise the section to update FAR citation references and to spell out a 
reference to a Department of Defense form, DD Form 882, Report of 
Inventions and Subcontracts, which is currently authorized for use by 
DOT and contractors to report inventions and subcontracts.
    We propose to add subpart 1204.9, Taxpayer Identification Number 
Information, and 1204.903, Reporting contact information to the IRS, to 
authorize the Senior Procurement Executive (SPE) to report certain 
information, including Taxpayer Identification Number (TIN) data to the 
IRS.
    We propose to add subpart 1204.13, Personal Identity Verification, 
including 1204.1301, Policy, to state that DOT follows National 
Institute of Standards and Technology (NIST) Federal Information 
Processing Standards (FIPS) Publication (PUB) Number 201-2, Personal 
Identity Verification (PIV) of Federal Employees and Contractors, or 
NIST issued successor publications, and OMB implementation guidance for 
personal identity verification, for all affected contractor and 
subcontractor personnel when contract performance requires contractors 
to have routine physical access to a Federally-controlled facility and/
or routine logical access to a Departmental/Federally-controlled 
information system. We propose to also add 1204.1303, Contract clause, 
which would prescribe clause 1252.204-70, Contractor Personnel Security 
and Agency Access, in solicitations and contracts (including task 
orders, if appropriate), exceeding the micro-purchase threshold when 
contract performance requires contractors to have the access described.
    We propose to add subpart 1204.17, Service Contracts Inventory, and 
1204.1703, Reporting requirements, to identify DOT's agency reporting 
responsibilities and to set forth that the Office of the Senior 
Procurement Executive (OSPE) is responsible for compiling and 
submitting the DOT annual inventory to OMB and for posting and 
publishing the inventory consistent with FAR 4.1703(b)(2).

TAR Part 1205--Publicizing Contract Actions

    We propose to revise the authority citations for part 1205, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1205.1, Dissemination of Information, we propose to 
revise 1205.101, Methods of disseminating information, to update the 
current address of the DOT Office of Small and Disadvantaged Business 
Utilization and to provide an updated website address where the 
Procurement Forecast summary is published.
    In subpart 1205.4, Release of Information, we propose to revise 
1205.402, General public, to clarify when DOT, upon request, will 
furnish the general public with information on proposed contracts and 
contract awards. We propose to add coverage at 1205.403, Requests from 
Members of Congress, which would authorize the head of the contracting 
activity (HCA) to approve the release of certain contract information 
to Members of Congress under FAR 5.403.
    We propose to add coverage at subpart 1205.6, Publicizing Multi-
Agency Use Contracts, and 1205.601, Governmentwide database of 
contracts, which would state the Operating Administration's (OA) head 
of the

[[Page 69456]]

contracting activity is responsible for complying with the requirements 
of FAR 5.601(b) to submit the cognizant OA's information to the 
referenced databases.

TAR Part 1206--Competition Requirements

    We propose to revise the authority citations for part 1206, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to add coverage at subpart 1206.2, Full and Open 
Competition After Exclusion of Sources, and 1206.202, Establishing or 
maintaining alternative sources, which would delegate to the head of 
the contracting activity (HCA) the authority to exclude a particular 
source from a contract action to establish or maintain an alternative 
source under the conditions listed in FAR 6.202(a). The HCA would also 
be delegated authority to approve a Determination and Findings (D&F) in 
support of a contract action awarded under the authority of FAR 
6.202(a).
    We propose to add coverage at subpart 1206.3, Other Than Full and 
Open Competition. In 1206.302-1, Only one responsible source and no 
other supplies or services will satisfy agency requirements, the HCA 
would be authorized to determine that only specified makes and models 
of technical equipment and parts will satisfy the agency's needs under 
FAR 6.302-1(b)(4). In 1206.302-7, Public interest, the Secretary of DOT 
would reserve the authority to approve other than full and open 
competition when full and open competition is not in the public 
interest, and require the contracting officer to prepare a 
justification to support the determination and to include the 
justification and Secretary's determination in the file.
    In subpart 1206.5, Advocates for Competition, we propose to revise 
the title of the subpart from ``Competition Advocates'' to read: 
``Advocates for Competition'' to conform with the FAR. In 1206.501, 
Requirement, we would revise the section to update the title of the 
Agency Advocate for Competition which would remain the Deputy Assistant 
Secretary for Administration.

TAR Part 1207--Acquisition Planning

    We propose to revise the authority citations for part 1207, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1207.3, Contractor Versus Government Performance, we 
propose to remove section 1207.302, General, in its entirely as 
unnecessary and to revise 1207.305, Solicitation provision and contract 
clause, to properly cite the TAR.

TAR Part 1209--Contractor Qualifications

    We propose to revise the authority citations for part 1209, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to add TAR Part 1209, Contractor Qualifications, to 
include three subparts--1209.4, 1209.5, and 1209.6.
    In subpart 1209.4, Debarment, Suspension, and Ineligibility, we 
propose to add coverage to provide DOT's policies and procedures on 
debarment, suspensions, and ineligibility and contractors' due process 
rights.
    We propose to add 1209.403, Definitions, which would provide notice 
that DOT's Suspending and Debarring Official (SDO) means the individual 
designated responsibility as authorized by the Secretary of DOT to 
impose procurement suspensions and debarments, exclusions, and other 
related matters pursuant to FAR part 9. Each OA and the Office of the 
Secretary of Transportation (OST) has separately appointed SDOs. The 
SPE serves as the SDO for OST. A list of the OA appointed SDOs is 
maintained on the OSPE website. It also includes a definition for DOT 
Order 4200.5G as DOT's internal procedures for Suspension and 
Debarment, and Ineligibility Policies that implements TAR subpart 
1209.4, to include the procedures described under the subpart. This 
section also provides a definition for the Senior Accountable Official 
(SAO) for Suspension and Debarment. At DOT, the SAO means the Senior 
Procurement Executive (SPE), as delegated by the Secretary of DOT, with 
responsibility for all suspensions and debarments within DOT. The SAO 
sets forth departmental standards for suspension and debarment policies 
and procedures, excluding the Office of Inspector General (OIG). We 
also propose to add a definition for Suspension and Debarment 
Coordinator (SDC) which means the program manager for the Suspension 
and Debarment Program at each OA and Office of the Secretary of 
Transportation. The SDC advises the SDO. The SDC coordinates all 
materials for presentation to the Suspending and Debarring Official for 
proposed suspension or debarment activities, enters information 
regarding any administrative agreement into the Federal Awardee 
Performance and Integrity Information System (FAPIIS), and enters 
information regarding suspensions and debarments into SAM.gov.
    In 1209.405, Effect of listing, DOT is proposing coverage to 
provide notice that the SDO is authorized to make a written 
determination of compelling reasons to solicit offers from, award 
contracts to, or consent to subcontract with contractors debarred, 
suspended, or proposed for debarment that have an active exclusion 
record in the System for Award Management (SAM). We also add language 
that the SDO is authorized to make a written determination that a 
compelling reason exists to consider a bid or offer from a contractor 
who name or company is included on the listing in SAM, as well as to 
consider proposals, quotations, or offers received from any listed 
contractor that has an active exclusion record in SAM. It would provide 
that such proposals, quotations, or offers may be evaluated for award 
or included in the competitive range, and, if applicable and as 
authorized by the SDO, that discussions may conducted with a listed 
offeror as set forth in FAR 9.405(e)(3).
    In 1209.405-1, Continuation of current contracts, we propose to add 
language that notwithstanding the suspension, proposed debarment, or 
debarment of a contractor, contracting officers may continue contracts 
or subcontracts in existence at the time the contractor was suspended, 
proposed for debarment, or debarred, if authorized by the SDO and the 
SDO makes a written determination of the same. The SDO would be 
delegated the authority on behalf of the Secretary of DOT to make the 
written determination required under FAR 9.405-1(b).
    In 1209.405-2, Restrictions on subcontracting, we propose to add 
language that the SDO is delegated the authority on behalf of the 
Secretary of DOT to authorize contracting officers to consent to 
subcontracts with contractors debarred, suspended, or proposed for 
debarment as required by FAR 9.405-2(a).
    In 1209.406, Debarment, and 1209.406-1, General, we propose to add 
language to identify the OST Suspending and Debarring Official (SDO) 
and OA-appointed SDO as the debarring official (see 1209.403) who is 
authorized to continue business

[[Page 69457]]

dealings between the agency and a contractor that is debarred or 
proposed for debarment under FAR 9.406-1(c), except under FAR 
23.506(e). The SDO is required to make a written determination of 
compelling reasons justifying the continued business dealings. The 
SDO's authority would include debarments from contracts for the 
purchase of Federal personal property pursuant to the Federal 
Management Regulation at 41 CFR 102-117.295.
    In 1209.406-3, Procedures, we propose to add language to set forth 
DOT's detailed procedures for debarments and to require that 
contracting officers and contracting activities shall comply with DOT 
Order 4200.5G, Suspension and Debarment, and Ineligibility Policies, 
and this subpart to include the following procedures--
    Investigation and referral--who may refer an individual or 
contractor for debarment, including the responsibility of the SDO to 
refer matters to the DOT Office of Inspector General. It would require 
reporting information, to include specific information concerning the 
Operating Administration (OA) and activity making the report; the name 
and address of the contractor (including the members of the board, 
principal officers, partners, owners and managers), known affiliates, 
subsidiaries or parent firms; specific information concerning the 
contract (including description of supplies/services, amount, 
percentage of completion, amount paid to contractor, etc.) and the same 
information on affiliates' contracts; summary of evidence; the estimate 
of damage sustained by the Government; the recommendations of the 
contracting officer whether to suspend or debar the contractor, whether 
to apply limitations to the suspension or debarment, the period of any 
recommended debarment, and whether to continue any current contractors; 
and to provide copies of each pertinent contract, witness statements or 
affidavits, copies of investigative reports, certified copies of 
indictments, judgments, and sentencing actions; and any other 
appropriate exhibits or documents.
    Decision-making process--the requirement for the SDC in conjunction 
with the contracting officer to prepare a recommendation and draft 
notice of proposed debarment for the SDO's consideration.
    Notice of proposal to debar--the requirement for DOT to send the 
notice of proposed debarment to the last known address of the 
individual or contractor, the individual or contractor's counsel, or 
agent for service of process, by certified mail, return receipt 
requested, or any other means that allows for confirmation of delivery 
to include by mail, to the last known street address, to the last known 
facsimile numbers, or to the last known email address. In the case of a 
contractor, the proposed procedures would permit sending the notice of 
proposed debarment to the contractor, any partner, principal, officer, 
director, owner or co-owner, or joint venture; to the contractor's 
identified counsel for purposes of administrative proceedings; or to 
the contractor's agent for the service of process. If sent by email, it 
shall be sent to the last known email addresses for all three, if 
known. Additionally, for each specifically named affiliate, the notice 
shall be sent to the affiliate itself, the affiliate's identified 
counsel for purposes of the administrative proceedings, or the 
affiliate's agency for service of process. If sent by email, it shall 
be sent to the last known email addresses for all three, if known. 
DOT's procedures would also require the appropriate parties are listed 
as excluded in the System for Award Management (SAM) in accordance with 
FAR 9.404.
    Debarring official's decision--DOT's procedures would provide that 
if DOT does not receive a reply from the contractor within 30 calendar 
days after sending the notice of proposed debarment, the SDC shall 
prepare a recommendation in conjunction with the contracting officer 
and refer the case to the SDO for a decision on whether to debar based 
on the information available. The procedures also establish that If DOT 
receives a reply from the contractor within 30 calendar days after 
sending the notice of proposed debarment, the SDC in conjunction with 
the cognizant contracting officer shall consider the information in the 
reply before the SDC makes their recommendation to the SDO. The SDO 
reviews submittals, case documents and acts in accordance with DOT 
Order 4200.5G and the General DOT Guidelines for Suspension and 
Debarment, paragraph 12c. It would also provide for the contractor to 
have an opportunity to appear before the SDO to present information or 
argument, in person or through a representative and to supplement oral 
presentations with written information and argument. Further, it would 
provide that DOT shall conduct the proceeding in an informal manner and 
without requirement for a transcript. It also sets forth that if the 
SDO agrees there is a genuine dispute of material facts, the SDO shall 
conduct a fact-finding or refer the dispute to a designee for 
resolution pursuant to 1209.470, Fact-finding procedures. The SDC shall 
provide the contractor or individual the disputed material fact(s). If 
the proposed debarment action is based on a conviction or civil 
judgment, or if there are no disputes over material facts, or if any 
disputes over material facts have been resolved pursuant to 1209.470, 
Fact-finding procedures, the SDO would be required to make a decision 
on the basis of all information available including any written 
findings of fact submitted by the designated fact finder, and oral or 
written arguments presented or submitted to the SDO by the contractor.
    Notice of debarring official's decision--DOT's procedures would 
provide that for actions processed under FAR 9.406 where no suspension 
is in place and where a fact-finding proceeding is not required, DOT 
would make the final decision on the proposed debarment within 30 
business days after receipt of any information and argument submitted 
by the contractor, unless the SDO extends this period for good cause. 
The SDO may use flexible procedures to allow a contractor to present 
matters in opposition via telephone of internet.
    In 1209.406-4, Period of debarment, we propose to add coverage that 
the SDC in conjunction with the contracting officer may submit a 
recommendation to the SDO to extend the period of debarment imposed 
under FAR 9.406, amend its scope, or reduce the period of debarment.
    In 1209.407, Suspension, and 1209.407-1, General, we propose to add 
language to state that the SDO is the suspending official under the 
Federal Management Regulation at 41 CFR 102-117.295 (see FAR 9.407-1) 
and to authorize the SDO to make a written determination of compelling 
reasons justifying continuing business dealings between the agency and 
a contractor that is suspended.
    In 1209.407-3, Procedures, we propose to add coverage to require 
that contracting officers and contracting activities shall comply with 
DOT Order 4200.5G, Suspension and Debarment, and Ineligibility 
Policies, and this subpart to include the following procedures--
    Investigation and referral--who may refer an individual or 
contractor for suspension, including the responsibility of the SDC, and 
the SDO's responsibility to refer matters involving possible criminal 
or fraudulent activities, to the DOT Office of Inspector General.
    Decision-making process--the requirement for the SDC to prepare a 
recommendation and draft notice of

[[Page 69458]]

suspension for the SDO's consideration. The SDC creates a case in the 
DOT Suspension and Debarment Tracking System as set forth in DOT Order 
4200.5G.
    Notice of suspension--the requirement for DOT to send the notice of 
suspension to the last known address of the individual or contractor, 
the individual or contractor's counsel, or agent for service of 
process, by certified mail, return receipt requested, or any other 
means that allows for confirmation of delivery, to include by mail, to 
the last known street address, to the last known facsimile numbers, or 
to the last known email address. In the case of a contractor, the 
proposed procedures would permit sending the notice of suspension to 
the contractor, any partner, principal, officer, director, owner or co-
owner, or joint venture; to the contractor's identified counsel for 
purposes of administrative proceedings; or to the contractor's agent 
for the service of process. If sent by email, it shall be sent to the 
last known email addresses for all three, if known. Additionally, for 
each specifically named affiliate, the notice shall be sent to the 
affiliate itself, the affiliate's identified counsel for purposes of 
the administrative proceedings, or the affiliate's agency for service 
of process. If sent by email, it shall be sent to the last known email 
addresses for all three, if known. DOT's procedures would also require 
the appropriate parties to be listed as excluded in SAM in accordance 
with FAR 9.404. The procedures would provide, upon request of the 
contractor suspended, an opportunity for the contractor to appear 
before the SDO to present information or argument, in person or through 
a representative. The contractor may supplement the oral presentation 
with written information and argument. Further, it would provide that 
DOT shall conduct the proceeding in an informal manner and without 
requirement for a transcript. It also sets forth that if the SDO finds 
the contractor's or individual's submission in opposition to the 
suspension raises a genuine dispute over facts material to the 
suspension, or for the purposes of FAR 9.407-3(b)(2), Decision making 
process, in actions not based on an indictment, the SDC shall submit to 
the SDO the information establishing the dispute of material facts. If 
the SDO agrees there is a genuine dispute of material facts, the SDO 
would be required to conduct a fact-finding proceeding or refer the 
dispute to a designee for resolution pursuant to 1209.470, Fact-finding 
procedures. The SDC would also be required to provide the contractor or 
individual the disputed material fact(s) in advance of the fact-finding 
proceeding in the event the contractor would like to add to the record 
prior to the decision of the SDO. The procedures would also provide 
that if the suspension is based on a conviction or civil judgment, or 
if there are no disputes over material facts, or if any disputes over 
material facts have been resolved pursuant to 1209.470, Fact-finding 
procedures, the SDO would be required to make a decision on the basis 
of all information available including any written findings of fact 
submitted by the designated fact finder, and oral or written arguments 
presented or submitted by the contractor. The contractor would be 
permitted to supplement the oral presentation with written information 
and argument. The proceeding would be conducted in an informal manner 
and without requirement for a transcript.
    Suspending official's decision-- DOT's procedures would provide 
that the SDO may appoint a designee to conduct a fact-finding and 
provide a report containing the results of the fact-finding. The SDO 
reviews submittals, case documents and acts in accordance with DOT 
Order 4200.5G and the General DOT Guidelines for Suspension and 
Debarment, paragraph 12c. The SDO may use flexible procedures to allow 
a contractor to present matters in opposition via telephone of 
internet. The SDO would be required to notify the contractor of the 
decision whether to impose a suspension.
    In 1209.470, Fact-finding procedures, we propose to add language to 
provide DOT's procedures which would be used to resolve genuine 
disputes of material fact pursuant to 1209.406-3 and 1209.407-3 of 
proposed part 1209, for both debarments and suspensions. This section 
further sets forth coverage on--
    Date for fact-finding hearing--normally to be held within 30 
business days after the SDC, on behalf of the SDO as the designated 
debarring official, notifies the contractor or individual that the SDO 
has determined that a genuine dispute of material fact(s) exists.
    Opportunity to present evidence--both the Government's 
representative and the contractor would have an opportunity to present 
evidence relevant to the genuine dispute(s) of material fact identified 
by the SDO. The contractor or individual would be permitted to appear 
in person or through counsel at the fact-finding hearing and should 
address all defenses, contested facts, admissions, remedial actions 
taken, and, if a proposal to debar is involved, mitigating and 
aggravating factors. The contractor or individual would be able to 
submit documentary evidence, present witnesses, and confront any person 
the agency presents.
    Testimony of witnesses--would permit witnesses to testify in 
person, and sets forth that such witnesses would be subject to cross-
examination. The fact-finding proceeding is an informal evidentiary 
hearing, during which the Rules of Evidence and Civil Procedure do not 
apply. Hearsay evidence would be permitted to be presented and would be 
given appropriate weight by the fact-finder.
    Transcripts of proceedings--the hearings would be transcribed and a 
copy of the transcript would be required to be made available, at cost, 
to the contractor upon request, unless the contractor and the 
factfinder, by mutual agreement, waive the requirement for a 
transcript.
    Fact-finder determination--the fact-finder shall prepare written 
finding(s) of fact by a preponderance of the evidence for proposed 
debarments, and by adequate evidence for suspensions. A copy of the 
findings of fact would be required to be provided to the SDO, the 
Government's representative, and the contractor or individual. The SDO 
would be required to consider the written findings of fact when making 
their decision regarding the suspension or proposed debarment.
    A new section 1209.471, Appeals, is added to specify that based on 
the decision of the SDO, the respondent may elect to request 
reconsideration of the SDO's final decision to debar or to request 
modification of the debarment by reducing the time period or narrowing 
the scope of the debarment. The request must be in writing and 
supporting with documentation. A suspended or debarred individual or 
entity may also seek judicial review after exhausting all 
administrative remedies.
    In subpart 1209.5, Organizational and Consultant Conflicts of 
Interest, and 1209.507, Solicitation provisions and contract clause, 
and 1209.507-270, Contract clauses, we propose to add a prescription 
for two clauses--1252.209-70, Organizational and Consultant Conflicts 
of Interest, and 1252.209-71, Limitation of Future Contracting. These 
are required to provide notice to contractors of the requirement to 
identify and mitigate potential organizational and consultant conflicts 
of interest, as well as to provide notice to contractors that an 
acquisition may give rise to a potential organizational conflict of 
interest and to set forth

[[Page 69459]]

restrictions on future contracting that pertains to such conflict(s).
    In subpart 1209.6, Contractor Team Arrangements, and 1209.602, 
General, we propose to add coverage that requires offerors to disclose 
teaming arrangements as a part of any offer and for contracting 
officers to evaluate such teaming arrangements as a part of overall 
prime contractor responsibility, as well as under the technical and/or 
management approach evaluation factor where applicable. This provides 
clarity to DOT on the composition of teaming arrangements when offerors 
are proposing on DOT solicitations and ensures the Government has the 
necessary information to consider when conducting proposal evaluations.

TAR Part 1211--Describing Agency Needs

    We propose to revise the authority citations for part 1211, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to remove subpart 1211.11, Selecting and Developing 
Requirements, and 1211.101, Order of precedence for requirements 
documents, and move any current required coverage to the TAM as 
internal DOT procedural guidance not having a significant effect beyond 
the internal operating procedures of DOT.
    We propose to revise subpart 1211.2, Using and Maintaining 
Requirements Documents, by adding the section title 1211.204, 
Solicitation provisions and contract clauses, with no text, and by 
revising the title of 1211.204-70, Solicitation provisions and contract 
clauses, to read ``Contract clauses'' to more appropriately describe 
the content.

TAR Part 1212--Acquisition of Commercial Items

    We propose to revise the authority citations for part 1212, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to add coverage at TAR part 12, Acquisition of 
Commercial Items, and 1212.301, Solicitation provisions and contract 
clauses for the acquisition of commercial items. The section would 
authorize the use of specific DOT provisions and clauses in 
acquisitions of commercial items when required by the individual 
provision or clause prescription. This authorizes DOT contracting 
officers use of unique DOT provisions and clauses for the acquisition 
of commercial items, as prescribed elsewhere in the TAR, when required 
to protect the Government's interests in accordance with FAR 12.301(f).

TAR Part 1213--Simplified Acquisition Procedures

    We propose to revise the authority citations for part 1213, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise subpart 1213.71 by redesignating subpart 
1213.71 to 1213.70, and retaining the title, ``Department of 
Transportation Procedures for Acquiring Training Services.'' We propose 
to redesignate and renumber section 1213.7100 and 1213.7101 to 
1213.7000, Applicability, and 1213.7001, Solicitation provision and 
contract clause, respectively. We propose to revise the text at the 
renumbered 1213.7000, to update it to correct TAR citations in 
accordance with standard FAR drafting conventions. At 1213.7001, we 
propose to revise the text to remove the notice regarding the 
certification of training requirements as an internal DOT determination 
that is not appropriate to include within the body of the TAR, and to 
correct TAR citations to standard FAR drafting conventions.

TAR Part 1214--Sealed Bidding

    We propose to remove TAR part 1214, Sealed Bidding, and Reserve the 
part as the coverage currently contained at 1214.302, Bid submission, 
contains obsolete practices that are no longer required and for which 
the FAR has adequate coverage.

TAR Part 1215--Contracting by Negotiation

    We propose to revise the authority citations for part 1215, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to remove subpart 1215.2, Solicitation and Receipt of 
Proposals and Information, and 1215.207, Handling proposals and 
information, as internal DOT procedural guidance not having a 
significant effect beyond the internal operating procedures of DOT. Any 
coverage would be considered and revised, as appropriate, for inclusion 
in the TAM.
    In subpart 1215.6, Unsolicited Proposals, we propose to remove the 
coverage at 1215.602, Policy, as unnecessary.
    In 1215.603, General, we propose to revise the text to remove the 
first sentence as redundant to the FAR and to update the text to 
provide clarity and to correct TAR citations to standard FAR drafting 
conventions.
    We propose to revise 1215.604, Agency points of contact, to remove 
the existing paragraph (a) as unnecessary and redundant, and to update 
the text in the current paragraph (b), renumber it as paragraph (a), 
and provide an updated web address for interested parties to learn more 
about DOT and the mission of each Operating Administration.
    We also propose to revise 1215.606, Agency procedures, to remove 
paragraph (a) as internal DOT procedural guidance not having a 
significant effect beyond the internal operating procedures of DOT. Any 
coverage would be considered and revised, as appropriate, for inclusion 
in the TAM. We propose to redesignate paragraph (b) as undesignated and 
to remove the last sentence that pertains only to DOT employees who 
might receive an unsolicited proposal to forward it to the contracting 
office. As this is internal DOT guidance, it is would be removed from 
the TAR and considered for inclusion in the TAM. Lastly, we've added 
more pertinent information for the public that the assigned DOT 
contracting office will review and evaluate the proposal within 30 
calendar days, if practicable, in accordance with FAR 15.606-1, Receipt 
and initial review, to inform the offeror of the reasons for rejection 
and the proposed disposition of the unsolicited proposal.
    Finally, we propose to remove 1215.606-1, Receipt and initial 
review, as internal DOT procedural guidance not having a significant 
effect beyond the internal operating procedures of DOT. Notice to the 
public under 1215.606 provides DOT's target to review the proposal 
within 30 calendar days, and to inform the offeror as noted above. Any 
coverage would be considered and revised, as appropriate, for inclusion 
in the TAM.

TAR Part 1216--Types of Contracts

    We propose to revise the authority citations for part 1216, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1216.2, Fixed-Price Contracts, we propose to revise 
1216.203-70, Solicitation provision, to

[[Page 69460]]

correct the TAR citation to standard FAR drafting conventions.
    In subpart 1216.4, Incentive Contracts, we propose to revise 
1216.406-70, DOT contract clauses, to correct TAR citations to standard 
FAR drafting conventions, and to revise the title of clause 1252.216-72 
in paragraph (b) from ``Performance Evaluation Plan'' to ``Award Fee 
Plan'' to align with the new revised clause title set forth in part 
1252.
    In subpart 1216.5, Indefinite-Delivery Contracts, we propose to 
revise 1216.505, Ordering, to renumber the implementing paragraph from 
(b)(5) to (b)(8), and to update the title for the Advocate for 
Competition to comport with the FAR.
    In subpart 1216.6, Time-and-Materials, Labor-Hour, and Letter 
Contracts, we propose to revise 1216.603-4, Contract clauses, to 
correct the TAR citation to standard FAR drafting conventions.

TAR Part 1217--Special Contracting Methods

    We propose to revise the authority citations for part 1217, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1217.70, we propose to correct the title to add a hyphen 
between ``Fixed'' and ``Price'' to read: Fixed-Price Contracts for 
Vessel Repair, Alteration or Conversion.
    We propose to revise 1217.7001, Clauses, to correct TAR citations 
to standard FAR drafting conventions, and to revise paragraph (b) to 
identify the title of each prescribed clause to be used in 
solicitations and contracts for vessel repair, alteration or 
conversion. We also propose to revise paragraph (c) to identify the 
title of the clause, and to remove paragraphs (d) and (e) as 
duplicative and unnecessary.

TAR Part 1219--Small Business Programs

    We propose to revise the authority citations for part 1219, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise the part to substantially update to current 
DOT policies and procedures regarding implementation of DOT's small 
business programs. In subpart 1219.2, Policies, we propose to revise 
1219.201, General policy, paragraph (c), to clarify that the Director, 
Office of Small and Disadvantaged Business Utilization (OSDBU) shall be 
a member of the Senior Executive Service and appointed by the Secretary 
of DOT. And we propose to add paragraph (d) to implement FAR 19.201(d) 
to specify that the responsible HCA for each OA shall appoint a Small 
Business Specialist (SBS) to carry out the duties and functions 
specified in the FAR. And we provide a link to DOT's OSDBU website that 
contains DOT's list of SBS.
    We propose to add coverage at 1219.201-70, Procurement goals for 
small business, to supplement the FAR at FAR 1219.201 and require that 
each DOT contracting activity in consultation with the OSDBU on behalf 
of the Secretary establish annual goals for opportunities for small 
businesses to participate in the activity's contracts and subcontracts.
    At 1219.202, Specific policies, we propose to add policy that the 
OSDBU is responsible for reviewing procurement strategies and 
subcontracting efforts, establishing review thresholds, and making 
recommendations to further the implementation of part 1219.
    We propose to add coverage at 1219.202-70, Procurement Forecast, to 
provide information to the public and to provide the website where 
DOT's Operating Administrations will publish procurement forecasts 
annually.
    We propose to add coverage at subpart 1219.4, Cooperation with the 
Small Business Administration, and 1219.401, General, to implement 
DOT's policy that the OSDBU Director will be the primary point of 
contact with the U.S. Small Business Administration and facilitate the 
formulation of policies to ensure maximum practicable opportunities are 
available to small business concerns in prime and subcontracting 
opportunities.
    We propose to add subpart 1219.5, Set-Asides for Small Business, 
and 1219.501, General; 1219.502-8, Rejecting Small Business 
Administration recommendations; and 1219.502-9, Withdrawing or 
modifying small business set-asides. This new proposed language would 
implement the FAR and DOT's requirement that set-aside decisions will 
be documented utilizing DOT Form 4250.1, and to require contracting 
officers to coordinate with the OSDBU if they reject a recommendation 
of the Small Business Administration (SBA) procurement center 
representative. It would also specify the procedures to be followed 
when withdrawing or modifying small business set-asides, including 
providing appropriate notice to the small business specialist, the SBA 
procurement center representative, and the OSDBU. Additionally, the new 
language would specify the role of the Chief of the Contracting Office 
(COCO) if the agency small business representative does not agree to a 
withdrawal or modification of a set-aside.
    We propose to add coverage at subpart 1219.7, The Small Business 
Subcontracting Program, and 1219.705, Responsibilities of the 
contracting officer under the subcontracting assistance program, and 
1219.705-6, Post-award responsibilities of the contracting officer, to 
identify that the DOT OSDBU is responsible for acknowledging receipt 
of, or rejecting, the Summary Subcontracting Report (SSR) in the 
Electronic Subcontracting Reporting System (eSRS).
    In subpart 1219.8, Contracting with the Small Business 
Administration (The 8(a) Program), we propose to revise 1219.800, 
General, to update paragraph (f) with current DOT information on the 
SBA and DOT Partnership Agreement delegating SBA's contract execution 
and administrative functions to DOT and requiring that contracting 
officers shall follow the alternate procedures in this subpart, as 
applicable, to award 8(a) contracts under the partnership agreement.
    We propose to remove 1219.811-3, Contract clauses, and 1219.812, 
Contract administration, as obsolete and redundant to existing FAR 
coverage.
    We propose to remove subpart 1219.10, Small Business 
Competitiveness Demonstration Program, and 1219.1003, Purpose, and 
1219.1005, Applicability, and the Appendix A in the part as obsolete 
and unnecessary coverage.
    We propose to add coverage at subpart 1219.70, DOT Mentor-
Prot[eacute]g[eacute] Program, and 1219.7000, General, to provide DOT's 
policies and procedures for participation in DOT's Mentor-
Prot[eacute]g[eacute] Program, a current website for the DOT OSDBU, the 
office that administers the program on behalf of the Secretary.

TAR Part 1222--Application of Labor Laws to Government Acquisitions

    We propose to revise the authority citations for part 1222, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise coverage under subpart 1222.1, Basic Labor 
Policies, and specifically 1222.101-70, Admittance of union 
representatives to DOT installations, paragraph (b), to

[[Page 69461]]

make clear that whenever a union representative is denied entry to a 
work site, the person denying entry shall make a written report to the 
labor advisor for the applicable Operating Administration (OA) or to 
the DOT labor coordinator, the Office of General Counsel, Office of 
General Law, within the Office of the Secretary of Transportation. The 
requirement remains the same as previously codified, but the revision 
more clearly identifies the labor advisor of the OA at the beginning of 
the list of DOT officials who are required to be notified in writing by 
the Government official who denies entry to the work site.
    We propose to revise 1222.101-71, Contract clauses, to correct TAR 
citations to standard FAR drafting conventions.
    We propose to remove in its entirety subpart 1222.4, Labor 
Standards for Contracts Involving Construction, and the underlying 
sections 1222.406, Administration and enforcement, and 1222.406-9, 
Withholding from or suspension of contract payments. This subpart 
contains internal operating procedures that will be revised and updated 
and moved to the TAM, to include removal of the use of DOT Form 4220.7, 
Employee Claim for Wage Restitution. DOT proposes removal because this 
form would not be processed through a contractor but be handled outside 
of the TAR and in accordance with DOL rules.
    We propose to add subpart 1222.8, Equal Employment Opportunity, and 
section 1222.810-70, Contract clause. In 1222.810-70, the clause 
1252.222-72, Contractor Cooperation in Equal Employment Opportunity and 
Anti-Harassment Investigations, is prescribed to provide definitions of 
terms to provide common meaning, and to require contractors to 
cooperate with DOT in investigations of Equal Employment Opportunity 
(EEO) and Anti-Harassment complaints after referral to the OFCCP and/or 
the Equal Employment Opportunity Commission (EEOC).

TAR Part 1223--Environment, Energy and Water Efficiency, Renewable 
Energy Technologies, Occupational Safety, and Drug-Free Workplace

    We propose to revise the authority citations for part 1223, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1223.3, Hazardous Material Identification and Material 
Safety Data, we propose to revise 1223.303, Contract clause, to correct 
the TAR citation to standard FAR drafting conventions.
    In subpart 1223.70, Safety Requirements for Selected DOT Contracts, 
we propose to revise 1223.7000, Contract clauses, to correct TAR 
citations to standard FAR drafting conventions, and to update the 
clause to indicate that DOT regulations and any OA specific procedures 
apply.

TAR Part 1224--Protection of Privacy and Freedom of Information

    We propose to revise the authority citations for part 1224, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1224.1, Protection of Individual Privacy, we propose to 
revise 1224.102-70, General, to update for clarity DOT's general 
policies on records maintained in a Privacy Act system of records and 
the prohibition against release except by the Government or at the 
Government's direction, irrespective of whether the Government or a 
contractor acting on behalf of the Government is maintaining the 
records.
    In subpart 1224.2, Freedom of Information Act, we propose to revise 
1224.203, Policy, to provide an updated internet address for DOT's FOIA 
website.

TAR Part 1227--Patents, Data, and Copyrights

    We propose to revise the authority citations for part 1227, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1227.3, Patent Rights Under Government Contracts, and 
1227.304, Procedures, we propose to revise the underlying section 
1227.304-5, Appeals, to renumber it to 1227.304-4 to align with the 
FAR. We also propose to revise the text to make it clearer regarding 
which requirements or actions apply to contractors; to update and 
correct TAR citations to standard FAR drafting conventions; and to cite 
the correct FAR 27.304-4, Appeals, citation in lieu of FAR 27.304-5.
    In 1227.305, Administration of patent rights clauses, we propose to 
revise the underlying section 1227.305-4, Conveyance of invention 
rights acquired by the Government, to retitle it correctly as, 
``Protection of invention disclosures,'' to align with the FAR, and to 
make a minor revision to incorporate the word ``Department of Defense'' 
before the referenced DD Form 882, Report of Inventions and 
Subcontracts, which DOT permits contractors to use to report inventions 
made during contract performance and at contract completion.

TAR Part 1228--Bonds and Insurance

    We propose to revise the authority citations for part 1228, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1228.1, Bonds and Other Financial Protections, we 
proposed to remove 1228.106-1, Bonds and bond related forms, in its 
entirety as coverage is unnecessary as it is duplicative of current FAR 
requirements.
    We propose to revise 1228.106-470, Contract clause--notification of 
payment bond protection, which would revise the title to more 
appropriately reflect FAR drafting convention and to move it up in 
placement earlier in the subpart in lieu of its current placement after 
1228.106-70 and 1228.106-71. This section prescribes a clause at 
1252.228-74, Notification of Payment Bond Protection, in solicitations 
and contracts when payment bonds are required.
    We also propose to add 1228.106-6, Furnishing information, which 
provides notice to the public that the requirement for a copy of the 
contract, when furnishing a copy of a payment bond and contract in 
accordance with FAR 28.106-6(b), may be satisfied by furnishing a .pdf 
of the contract's first pages which show the contract number and date, 
the contractor's name and signature, the contracting officer's 
signature, and the description of the contract work. It also provides 
notice that the fee for furnishing the requested certified copies shall 
be determined in accordance with the DOT Freedom of Information Act 
regulation, 49 CFR part 7, and 1224.203.
    We propose to remove in its entirety the previous 1228.106-6, 
Furnishing of information, as internal operating procedures for 
contracting officers that will be revised and updated and moved to the 
TAM.
    We propose to revise 1228.106-70, Execution and administration of 
bonds, to make a minor administrative punctuation edit. We also propose 
to revise 1228.106-71, Performance and payment bonds for certain 
contracts, and 1228.106-7100, Waiver. The revisions would amend 
paragraph (a) to update the name and title of cited Bond statute 
(formerly Miller Act), and to remove unnecessary additional citations. 
The revisions would also

[[Page 69462]]

remove paragraph (b) in its entirety as internal operating procedures 
intended only for contracting officers that are unnecessary to include 
in the TAR, but will be examined and revised as appropriate and moved 
to the TAM if necessary.
    We propose to revise 1228.106-7101, Exception, to correct TAR 
citations to standard FAR drafting conventions.
    We also propose to move the previously titled 1228.106-470, 
Contract clause, in the order of the subpart as noted above, and to 
revise the title to Contract clause--notification of payment bond 
protection.
    In subpart 1228.3, Insurance, we propose to revise 1228.306, 
Insurance under fixed-price contracts, and the underlying section 
1228.306-70, Contracts for lease of aircraft, which would make a number 
of administrative corrections and substantive updates to provide 
clarity, to include the following:
     Corrections to TAR citations to standard FAR drafting 
conventions;
     Minor corrections to grammar and punctuation;
     Removal of the first sentence in paragraph (b) as 
unnecessary;
     Removal of paragraph (c) in its entirety;
     Renumbering paragraph (d) as (b) and by adding correct 
ancillary subparagraph numbers in accordance with FAR drafting 
convention;
     Adding a new paragraph (c) to provide more specific 
prescription information concerning how the use of clause 1252.228-72, 
Risk and Indemnities, as prescribed in a new paragraph (d), shall be 
used in short-term or intermittent-use leases, to protect the 
Government for damage caused by operation of the aircraft in such 
short-term leases;
     Adding a new paragraph (d), which specifically would 
prescribe clause 1252.228-72, Risk and Indemnities, in contracts for 
out-service flight training or lease of aircraft when the Government 
will have exclusive use of the aircraft for a period of less than 
thirty days; and
     Adding a new paragraph (e) that would require that for any 
contract for out-service flight training, the contracting officer shall 
include a clause stating substantially that the contractor's personnel 
shall always, during the course of training, be in command of the 
aircraft and that at no time shall other personnel be permitted to take 
command of the aircraft. This would also require that during the 
performance of a contract for out-service flight training for DOT, 
whether the instruction to DOT personnel is in leased, contractor-
provided, or Government-provided aircraft, contractor personnel shall 
always, during the entirety of the course of training and operation of 
the aircraft, remain in command of the aircraft. At no time shall 
Government personnel or other personnel be permitted to take command of 
the aircraft. This prescribes the clause at 1252.228-73, Command of 
Aircraft, in any solicitation and contract for out-service flight 
training, whether performed utilizing DOT-leased aircraft, contractor-
provided aircraft, or Government-provided aircraft.
    We propose to revise 1228.307-1, Group insurance plans, to clarify 
that contractors shall provide plans required by FAR 28.307-1(a) to the 
contracting officer for approval, and to remove the last sentence as 
outdated guidance and more appropriate as internal operating procedures 
and if needed, would be moved to the TAM.
    We also propose to revise 1228.311-1, Contract clause, to correct 
the TAR citation to standard FAR drafting convention.

TAR Part 1231--Contract Cost Principles and Procedures

    We propose to revise the authority citations for part 1231, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1231.2, Contracts with Commercial Organizations, we 
propose to revise 1231.205-32, Precontract costs, to renumber the 
section as 1231.205-3270 to more accurately reflect FAR drafting 
convention and that the TAR is supplementing FAR 31.205-32, and to 
revise the title to read: ``Precontract costs--incurrence of costs.'' 
We also propose to make minor edits to clarify the language, 
incorporate use of active voice, and to correct the TAR citation to 
standard FAR drafting convention.

TAR Part 1232--Contract Funding

    We propose to revise the authority citations for part 1232, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise TAR part 1232 overall to add two new 
subparts--1232.7 and 1232.70, and to redesignate, renumber and retitle 
the existing subpart 1232.70 as 1232.9, as discussed further in this 
section of the preamble.
    We propose to add subpart 1232.7, Contract Funding, to address 
needed guidance for contracting officers and the public as to when 
incremental funding is available for use during a Continuing Resolution 
(CR), with the following underlying sections:
    1232.770, Incremental funding during a Continuing Resolution, as a 
section heading only with no text.
    1232.770-1, Scope of section, to outline the scope of the subpart 
for using incremental funding for fixed-price, time-and-material and 
labor-hour contracts during a period in which funds are provided to the 
DOT and its operating administrations under a CR, and to authorize HCAs 
to develop necessary supplemental internal procedures and guidance to 
advise offerors and contractors of such policies and procedures.
    1232.770-2, Definition, would provide a common definition for use 
in the subpart of ``Continuing Resolution.''
    1232.770-3, General, provides general policy regarding what a CR 
provides funding for and general information.
    1232.770-4, Policy, would provide DOT's policy for when a fixed-
price, time-and-materials or labor-hour contract or order for 
commercial or non-commercial severable services may be incrementally 
funded.
    1232.770-5, Limitations, would provide that the policy does not 
apply to contract actions using funding that are not covered by the CR.
    1232.770-6, Procedures, details certain procedures that apply when 
such incremental funding is authorized, and actions that the 
contracting officer is required to take if a contract will receive no 
further funds in accordance with the clause 1252.232-71, Limitation of 
Government's Obligation.
    1232.770-7, Clause, prescribes that contracting officers shall 
insert the clause at 1252.232-71, Limitation of Government's Obligation 
in certain solicitations and contracts, and that the contracting 
officer is required to insert information required in paragraphs (a) 
and (b) of the clause. It also would permit the contracting officer to 
revise certain paragraphs of the clause, as well as varying 
notification periods and percentages for when contractors must make 
certain notification to the Government. The 30-day period specified in 
the standard clause may be varied from up to 90 days, and the 75 
percent specified in the standard clause may be varied from 75 up to 85 
percent.
    We propose to redesignate, renumber and retitle subpart 1232.70, 
Contract Payments, as subpart 1232.9, Prompt Payment, to align with the 
FAR. We propose to revise 1232.7002, Invoice and voucher review and 
approval, to renumber and retitle it to read: 1232.905-70, Payment 
documentation and process--form of invoice, to align it

[[Page 69463]]

properly under FAR 32.905 as supplemental agency-specific policy. We 
also propose to revise the text to cite a current FAR citation, and to 
retitle the two Appendices as follows: ``Appendix A to Part 1232, 
Instructions for Completing the SF 1034,'' to ``Table 1232-1, 
Instructions for Completing the SF 1034,'' and ``Appendix B to Part 
1232, Instructions for Completing the SF 1035,'' to ``Table 1232-2, 
Instructions for Completing the SF 1035,'' respectively. The 
instructions in the tables are largely the same as previously codified 
with only minor editorial, administrative, or formatting changes.
    We propose to add subpart 1232.70, Electronic Invoicing 
Requirements, to provide DOT's policies and procedures for submitting 
and processing payment requests in electronic form, with the following 
underlying sections:
    1232.7000, Scope of subpart.
    1232.7001, Definition, to provide a common meaning to the 
definition of ``payment request.''
    1232.7002, Electronic payment requests--invoices, which would 
outline DOT's requirements and exceptions for when payments must be 
submitted electronically, alternate procedures, and details on the DOT 
electronic invoicing system--DELPHI eInvoicing and the specific 
iSupplier module.
    1232.7003, Payment system registration, which provides the 
requirement for contractors to submit payment requests in electronic 
form unless directed by the contracting officer. It would also 
specifically exempt purchases paid with a Governmentwide commercial 
purchase card.
    1232.7003-1, Electronic authentication, which provides information 
on utilizing the General Services Administration (GSA) credentialing 
platform, www.login.gov.
    1232.7004, Waivers, which provides a website for vendors to access 
DOT's DELPHI eInvoicing system for procedures or directs them to 
contact the Contracting Officer's Representative for procedures.
    1232.7005, Contract clause, which prescribes clause 1252.232-70, 
Electronic Submission of Payment Requests, in solicitations and 
contracts exceeding the micro-purchase threshold, except those for 
which the contracting officer has directed or approved otherwise under 
1232.7002, and those paid with a Governmentwide commercial purchase 
card.

TAR Part 1233--Protests, Disputes, and Appeals

    We propose to revise the authority citations for part 1233, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1233.2, Disputes and Appeals, we propose to revise 
1233.211, Contracting officer's decision, to remove the existing text 
in its entirety as outdated since DOT no longer has its own Board of 
Contract Appeals. The Civilian Board of Contract Appeals (CBCA) was 
established on January 6, 2006 by the National Defense Authorization 
Act for FY2006, Public Law 109-163. Section 847 of the Act vests the 
CBCA with jurisdiction over claims that previously would have been 
filed before the boards of contract appeals of individual agencies. We 
propose to add new coverage at paragraph (a)(4)(v), specifying 
contracting officer's actions on claims, including a tailored statement 
for DOT contracting officers to insert in the contracting officer's 
decision, and where to file, a key CBCA website providing information 
on how to file, and alternative procedures for small claims, those 
involving a small business concern, or accelerated procedures for 
claims of $100,000 or less. This substantially follows that set forth 
in FAR 33.211(a)(4)(v), but provides specific language reflecting the 
fact that DOT utilizes the CBCA.
    We propose to revise 1233.214, Alternative dispute resolution 
(ADR), to--
     Make minor administrative, grammatical, or formatting 
revisions for clarity;
     Retain only the sentence, ``In resolution of a formal 
claim,'' under paragraph (c)(3), and relocate the remainder of the text 
to a new paragraph (d)(1);
     Require in the new paragraph (d)(1) that for all matters 
filed with the CBCA, the CBCA ADR procedures shall be used; and
     Renumber paragraph (d) as (d)(2).

TAR Part 1235--Research and Development Contracting

    We propose to revise the authority citations for part 1235, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise 1235.003, Policy, to update FAR citations to 
comport with FAR drafting convention in paragraph (b), to add 
clarifying language, and to add paragraph (c), Recoupment, which would 
provide that DOT recoupment not otherwise required by law shall be 
conducted in accordance with OA procedures.
    We propose to add 1235.010-70, Scientific and technical reports--
acquisition, publication and dissemination, to specify that DOT's 
policy for the acquisition, publishing format, and dissemination of 
scientific and technical reports is established in DOT Order 1700.18B, 
Acquisition, Publication and Dissemination of DOT Scientific and 
Technical Reports.
    We propose to add 1235.011-70, Contract clause, to prescribe clause 
1252.235-71, Technology Transfer, in all solicitations and contracts 
for experimental, developmental, or research work, and to add 1235.012, 
Patent rights, to implement FAR 35.012 and to provide that such patent 
rights would also be in accordance with any Operating Administration 
(OA) implementing procedures.
    We also propose to renumber ``subpart 1235.70, Research 
Misconduct,'' to 1235.070, Research misconduct, and remove any 
reference to a ``subpart'' to align the TAR with the FAR, which has no 
subparts in FAR part 35. We also propose to add paragraph (a) to set 
forth the applicability and DOT's policy on scientific integrity, and 
to add paragraph (b) to provide a definition of research misconduct.
    We propose to renumber 1235.7000, Contract clause, to 1235.070-1, 
Contract clause, and to update the clause prescription and TAR citation 
to comport with FAR drafting convention.

TAR Part 1236--Construction and Architect-Engineer Contracts

    We propose to revise the authority citations for part 1236, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    In subpart 1236.5, Contract Clauses, we propose to revise 1236.570, 
Special precautions for work at operating airports, to correct the TAR 
citation to standard FAR drafting convention.

TAR Part 1237--Service Contracting

    We propose to revise the authority citations for part 1237, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.

[[Page 69464]]

    In subpart 1237.1, Service Contracts--General, we propose to update 
1237.110, Solicitation provision and contract clauses, to renumber and 
retitle it to 1237.110-70, Contract clauses, to more appropriately 
comport with FAR drafting and numbering convention, as well as to 
correct the TAR citations to standard FAR drafting convention.
    In subpart 1237.70, Procedures for Acquiring Training Services, we 
propose to revise the title of the subpart to remove ``Department of 
Transportation'' as unnecessary so that it now reads: Procedures for 
Acquiring Training Services. We propose to revise 1237.7000, Policy, to 
add to the list of data that that prospective contractors are required 
to certify by adding specifically ``resumes, for example,'' to denote 
additional types of information that would be required to be certified, 
in lieu of the more general, ``etc.''. We propose to revise 1237.7001, 
Certification of data; 1237.7002, Applicability; and 1237.7003, 
Solicitation provision and contract clause, to correct TAR citations to 
reflect standard FAR drafting convention. In 1237.7003, we are making a 
minor revision to the title to replace ``provisions'' with 
``provision'' as only one unique TAR provision is prescribed.

TAR Part 1239--Acquisition of Information Technology

    We propose to revise the authority citations for part 1239, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to substantially revise TAR part 1239 to add six new 
subparts--1239.2, 1239.70, 1239.71, 1239.72, 1239.73, and 1239.74, as 
well as to substantively revise subpart 1239.1 to specify additional 
policy and procedures. These changes are intended to reflect that 
within the Federal government, acquiring information technology and 
information-technology-related supplies, services, and systems, 
including information technology-related services and information 
security, continues to be an evolving area as new Federal laws and 
requirements are established. DOT needs to ensure that the TAR 
appropriately identifies these requirements so potential offerors and 
contractors understand them and are able to appropriately address them 
when proposing on DOT acquisitions. Further, DOT needs to ensure its 
information and information systems are appropriately protected and 
that contractors comply with contract requirements.
    We propose to add 1239.000, Scope of part, to reflect specific 
areas TAR part 1239 encompasses, to include--
     Software management and development;
     Section 508 standards and compliance for contracts;
     Information security and incident response reporting;
     Protection of data about individuals;
     Cloud computing;
     Technology modernization and upgrade/refreshment; and
     Record management.
    We propose to add 1239.002, Definitions, to provide common meaning 
for three terms when used in the part to include: Information, 
information system, and media.
    In subpart 1239.1, General, we propose to add sections 1239.101-70, 
Policy--software management and development; 1239.101-70-1, Scope; 
1239.101-70-2, Definitions; and 1239.101-70-3, Policy.
    Section 1239.101-70, Policy--software management and development, 
adds coverage under 1239.101-70-1, Scope, to identify that the subpart 
applies to all acquisitions of products or services supporting the 
development or maintenance of software. It would also add four 
definitions to provide standard meaning and usage to the terms 
application, programming software, software, and system software as 
used in the subpart; and in 1239.101-70-3, Policy, to provide 
departmental policy that applies to all acquisitions of products or 
services supporting the development or maintenance of software. We also 
propose to renumber and retitle 1239.70, Solicitation provision and 
contract clause, to 1239.106-70, Contract clauses, to better comport 
and align with the FAR, and to prescribe two clauses--1252.239-70, 
Security Requirements for Unclassified Information Technology 
Resources, and 1252.239.71, Information Technology Security Plan and 
Accreditation, in all solicitations and contracts exceeding the micro-
purchase threshold that include information technology services.
    We propose to add subpart 1239.2, Electronic and Information 
Technology, including sections 1239.201, Scope of subpart; 1239.203, 
Applicability; and 1239.203-70, Information and communication 
technology accessibility standards--contract clause and provision, 
which would apply to the acquisition of Electronic and Information 
Technology (EIT) supplies and services. The term ``EIT'' as would be 
used in this subpart is intended to refer to Information and 
Communication Technology (ICT) and any successor terms used to describe 
such technology. It concerns the access to and use of information and 
data, by both Federal employees with disabilities and members of the 
public with disabilities in accordance with FAR 39.201. This implements 
DOT policy on Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 
794d) as it applies to contracts and acquisitions. Subpart 1239.2 would 
prescribe two clauses for all contracts and orders: 1252.239-92, 
Information and Communication Technology Accessibility Notice; and 
1252.239-93, Information and Communication Technology Accessibility.
    We propose to add subpart 1239.70, Information Security and 
Incident Response Reporting, to include sections 1239.7000, Security 
incident response; 1239.7001, Definitions; 1239.7002, Policy; and 
1239.7003, Contract Clauses, which would apply to contracts and 
subcontracts requiring contractors and subcontractors to safeguard DOT 
sensitive data that resides in or transits through covered contractor 
information systems by applying specified network security 
requirements. It also requires reporting of cyber incidents. It would 
provide seven definitions and provide common meaning for terms used in 
the subpart--adequate security, contractor attributional/proprietary 
information, contractor information system, DOT sensitive data, cyber 
incident, rapid report, and technical information. DOT's policy 
requires contractors and subcontractors to provide adequate security on 
all contractor information systems that will collect, use, process, 
store, or disseminate DOT sensitive data and to report cyber incidents 
directly to DOT via a unique number 24 hours-a-day, 7 days-a-week, 365 
days a year (24 x 7 x 365) within two (2) hours of discovery. It would 
also require reporting by lower-tier subcontractors. The policy details 
specific reporting requirements. It also would set forth the 
requirement for the reporting of cyber incidents, if existing 
safeguards have ceased to function or new or unanticipated threats or 
hazards are discovered by either the Government or contractor, the 
discoverer shall immediately bring the situation to the attention of 
the other party. It would require reporting in accordance with the 
clause 1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting. And the policy further details that support services 
contracts supporting Government activities may be involved in forensic 
analysis, damage assessment, or other services that

[[Page 69465]]

require access to data from another contractor and would be subject to 
restrictions on the use and disclosure of reported information. In 
1239.7003, Contract clauses, three clauses are prescribed:
    1252.239-72, Compliance with Safeguarding DOT Sensitive Data 
Controls, that would require the contracting officer to insert the 
clause in all solicitations, including solicitations using FAR part 12 
procedures for the acquisition of commercial items, except for 
solicitations solely for the acquisition of commercially available off-
the-shelf (COTS) items.
    1252.239-73, Limitations on the Use or Disclosure of Third-Party 
Contractor Reported Cyber Incident Information, that would require the 
contracting officer to insert the clause in all solicitations and 
contracts, including solicitations and contracts using FAR part 12 
procedures for the acquisition of commercial items, for services that 
include support for the Government's activities related to safeguarding 
DOT sensitive data and cyber incident reporting.
    1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting, that would require the contracting officer to insert the 
clause in all solicitations and contracts, including solicitations and 
contracts using FAR part 12 procedures for the acquisition of 
commercial items, except for solicitations and contracts solely for the 
acquisition of COTS items.
    We propose to add subpart 1239.71, Protection of Data About 
Individuals, including sections 1239.7100, Scope; 1239.7101, 
Definitions; 1239.7102, Policy; 1239.7103, Responsibilities; and 
1239.7104, Contract clause, that would include policy on Privacy Act 
and data protection considerations for DOT contracts. Data protection 
requirements are in addition to provisions concerning the general 
protection of individual privacy (see FAR subpart 24.1) and privacy in 
the acquisition of information technology (see FAR 39.105). In 
1239.7101, Definitions, DOT would provide eight definitions to provide 
common meaning for terms used in the subpart--data protection, breach, 
information security, integrity, confidentiality, availability, 
Personally Identifiable Information (PII), and privacy incident. And in 
1239.7102, Policy, DOT would require that data protection is provided 
for information and information systems in accordance with current 
policies, procedures, and statutes, to include a specific list. 
1239.7103, Responsibilities, requires the contracting officer to 
include appropriate data protection requirements in all contracts and 
other acquisition-related documents for DOT information created, 
collected, displayed, used, processed, stored, transmitted, and 
disposed of by contractors. In particular, DOT requires that 
contracting officers ensure all contracts with contractors maintaining 
information systems containing PII contain the appropriate clauses as 
may be required by the Federal Acquisition Regulation (FAR) and other 
OMB and agency memorandums and directives, to ensure that PII under the 
control of the contractor is maintained in accordance with Federal law 
and DOT policy. In 1239.7104, Contract clause, the clause 1252.239-75, 
DOT Protection of Information About Individuals, PII and Privacy Risk 
Management Requirements, is prescribed. Contracting officers shall 
insert the clause in solicitations and contracts involving contractor 
performance of data protection functions and for contracts involving 
the design, development, or operation of an information system with 
access to personally identifiable information as described in DOT Order 
1351.18, Privacy Risk Management, and DOT Order 1351.37, Departmental 
Cyber Security Policy.
    We propose to add subpart 1239.72, Cloud Computing, including 
sections 1239.7200, Scope of subpart; 1239.7201, Definitions; 
1239.7202, Policy; 1239.7203, DOT FedRAMP specific requirements; and 
1239.7204, Contract clauses, that would prescribe DOT policies and 
procedures for the acquisition of cloud computing services.
    In 1239.7201, Definitions, DOT would provide four definitions to 
provide common meaning for terms used in the subpart--authorizing 
official, cloud computing, Government data, and Government-related 
data.
    In 1239.7202, Policy, DOT would provide that DOT entities shall 
acquire cloud computing services using commercial terms and conditions 
consistent with Federal law, and DOT's needs, including those 
requirements specified in the subpart. It would require contracting 
officers to carefully review commercial terms and conditions and 
consult counsel to ensure the terms and conditions are consistent with 
Federal law, regulations, and DOT's needs. Except as provided in 
1239.7202, the contracting officer shall only award a contract to 
acquire cloud computing services from a cloud service provider (e.g., 
contractor or subcontractor, regardless of tier) that has been granted 
provisional authorization by the General Services Administration (GSA) 
Federal Risk and Authorization Management Program (FedRAMP), and meets 
the security requirements set out by the DOT Chief Information Officer 
(CIO), at the level appropriate to the requirement to provide the 
relevant cloud computing services. Section 1239.7202 would also 
prescribe that when contracting for cloud computing services, the 
contracting officers shall ensure certain listed information is 
provided by the requiring activity (e.g., Government data and 
Government-related data descriptions; data ownership, licensing, 
delivery and disposition instructions, etc.). Section 1239.7202 would 
also provide that: (1) Cloud computing service providers are required 
to maintain within the 50 states, the District of Columbia, or outlying 
areas of the United States, all Government data that is not physically 
located on DOT premises, unless otherwise authorized by the DOT CIO; 
and (2) that the contracting officer shall provide written approval to 
the contractor when the contractor is permitted to maintain Government 
data at a location outside the 50 States, the District of Columbia, and 
outlying areas of the United States.
    In 1239.7203, DOT's FedRAMP specific requirements are provided, to 
include validated cryptography for secure communications; digital 
signature cryptography--authentication, data integrity, and non-
repudiation; audit record retention for cloud service providers; cloud 
identification and authentication (organizational users) multi-factor 
authentication; identification and authentication (non-organizational 
users); incident reporting timeframes; media transport requirements; 
personnel screening--background investigations; and minimum personnel 
security requirements to include U.S. citizenship and clearance.
    In 1239.7204, Contract clauses, several clauses are prescribed to 
be inserted in solicitations and contracts, including those using FAR 
part 12 procedures for the acquisition of commercial items, for 
information technology services involving cloud computing services. The 
clauses, which are set forth in part 1252, are based on Federal FedRAMP 
standard framework language to be used in solicitations and contracts 
where FedRAMP requirements exist:
     1252.239-76, Cloud Computing Services.
     1252.239-77, Data Jurisdiction.
     1252.239-78, Validated Cryptography for Secure 
Communications.
     1252.239-79, Authentication, Data Integrity, and Non-
Repudiation.

[[Page 69466]]

     1252.239-80, Audit Record Retention for Cloud Service 
Providers.
     1252.239-81, Cloud Identification and Authentication 
(Organizational Users) Multi-Factor Authentication.
     1252.239-82, Identification and Authentication (Non-
Organizational Users).
     1252.239-83, Incident Reporting Timeframes.
     1252.239-84, Media Transport.
     1252.239-85, Personnel Screening--Background 
Investigations.
     1252.239-86, Boundary Protection--Trusted internet 
Connections.
     1252.239-87, Protection of Information at Rest.
     1252.239-88, Security Alerts, Advisories, and Directives.
    We propose to add subpart 1239.73, Technology Modernization and 
Upgrades/Refreshment, including sections 1239.7300, Scope of subpart; 
1239.7301, Definitions; 1239.7302, Policy; 1239.7303, Contract clauses, 
that would prescribe DOT's policies and procedures for incorporating 
technology modernization, upgrades and refreshment into acquisitions 
involving information technology products or services supporting the 
development of applications, information systems, or system software. 
In 1239.7301, Definitions, DOT would add five definitions to provide 
common meaning for terms used in the subpart--application, 
modernization, system software, refresh, and upgrade. In 1239.7302, 
Policy, DOT would require contracting officers to ensure all documents 
involving the acquisition of development or maintenance of DOT 
applications, systems, infrastructure, and services will contain the 
appropriate clauses as may be required by the Federal Acquisition 
Regulation (FAR) and other Federal authorities, to ensure that 
information system modernization is prioritized accordance with Federal 
law, OMB Guidance, and DOT policy. And in 1239.7303, Contract clauses, 
two clauses as described in part 1252 are prescribed that require 
contracting officers to insert them into solicitations and contracts 
when the contractor or a subcontractor, at any tier, will develop or 
maintain information systems, applications, infrastructure, or 
services: 1252.239-89, Technology Modernization; and 1252.239-90, 
Technology Upgrades/Refreshment.
    We propose to add subpart 1239.74, Records Management, including 
sections 1239.7400, Scope of subpart; 1239.7401, Definitions; 
1239.7402, Policy; and 1239.7403, Contract clause, to prescribes DOT's 
policies for records management requirements for contractors who 
create, work with, or otherwise handle Federal records, regardless of 
the medium in which the records exist. In 1239.7401, Definition, we 
include a key definition of ``federal record'' as used in the subpart, 
to provide common meaning. As defined in 44 U.S.C. 3301, ``federal 
record'' means all recorded information, regardless of form or 
characteristics, made or received by a Federal agency under Federal law 
or in connection with the transaction of public business and preserved 
or appropriate for preservation by that agency or its legitimate 
successor as evidence of the organization, functions, policies, 
decisions, procedures, operations, or other activities of the United 
States Government or because of the informational value of data in 
them. The term ``Federal record'' would include all DOT records, and 
applies to records created, received, or maintained by contractors 
pursuant to a DOT contract; it may include deliverables and 
documentation associated with deliverables; it does not include 
personal materials.
    In section 1239.7402, Policy, DOT details key requirements, to 
include compliance, applicability, records maintenance, and 
unauthorized disclosure. This is necessary to ensure contractors fully 
understand the requirement to comply with all applicable records 
management laws and regulations, as well as National Archives and 
Records Administration (NARA) records policies, including but not 
limited to the Federal Records Act (44 U.S.C. chapters 21, 29, 31, 33), 
NARA regulations at 36 CFR Chapter XII Subchapter B, and policies 
associated with the safeguarding of records covered by Privacy Act of 
1974 (5 U.S.C. 552a). These policies include the preservation of all 
records, regardless of form or characteristics, mode of transmission, 
or state of completion. Contractors would be required to notify the 
contracting officer within two hours of discovery of any inadvertent or 
unauthorized disclosures of information, data, documentary materials, 
records or equipment. Contractors would be required to ensure that the 
appropriate personnel, administrative, technical, and physical 
safeguards are established to ensure the security and confidentiality 
of the information, data, documentary material, records and/or 
equipment accessed, maintained, or created, is properly protected. 
Additionally, contractors would not be permitted to remove material 
from Government facilities or systems, or facilities or systems 
operated or maintained on the Government's behalf, without the express 
written permission of the contracting officer or contracting officer's 
representative. It would also set forth requirements for returning 
information to DOT when no longer required, and what security measures 
to follow, and prohibit contractors from creating or maintaining any 
records containing any non-public DOT information that are not 
specifically tied to or authorized by the contract. In 1239.239-91, 
Records Management, we propose to prescribe one clause, 1239.239-91, 
Records Management, that the contracting officer would be required to 
insert it in all solicitations and contracts involving services where 
contractors or subcontractors and their employees or associates 
collect, access, maintain, use or disseminate or otherwise handle 
Federal records.

TAR Part 1242--Contract Administration and Audit Services

    We propose to revise the authority citations for part 1242, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to add four subparts to TAR part 1242--subparts 1242.1, 
1242.2, 1242.3, and 1242.15, and to remove one subpart--1242.70.
    We propose to add subpart TAR 1242.1, Contract Audit Services, to 
include sections 1242.101, Contract audit responsibilities; 1242.102-
70, Assignment of contract audit services; and 1242.170, Contract 
clause.
    In 1242.101, Contract audit responsibilities, the regulations would 
provide that DOT policy allows for private certified public accounting 
firms to be used to provide audit services as described in FAR 42.101 
to DOT contracting officers when procurement schedule demands cannot be 
met by the Defense Contract Audit Agency (DCAA) or the agency with 
audit cognizance. In 1242.103, Assignment of contract audit services, 
DOT would permit contracting officers to acquire audit services from 
private certified public accountant (CPA) firms when the responsible 
audit agency declines providing the needed services. In 1242.170, 
Contract clause, we propose to prescribe clause 1252.242-74, Contract 
Audit Support, as described in TAR part 1252, that would require 
contracting officers to insert the clause in solicitation and contracts 
when other than firm-fixed-price contracts are contemplated.
    We propose to add subpart TAR 1242.2, Contract Administration 
Services, to include section 1242.270,

[[Page 69467]]

Contract clauses. Three clauses currently prescribed in subpart 
1242.70, Contract Administration Clauses, would be moved to section 
1242.270 to better align with the FAR and to comport with FAR drafting 
convention and numbering:
    1252.242-70, Dissemination of Information-Educational Institutions, 
that would permit contracting officers to use 1252.242-70 in lieu of 
the clause at 1252.242-72, Dissemination of Contract Information, in 
DOT research contracts with educational institutions, except contracts 
that require the release or coordination of information.
    1252.242-71, Contractor Testimony, that would require contracting 
officers to insert the clause in all solicitations and contracts issued 
by the National Highway Traffic Safety Administration (NHTSA) and would 
permit other Operating Administrations to use the clause as deemed 
appropriate.
    1252.242-72, Dissemination of Contract Information, that would 
permit the contracting officer to insert the clause in all DOT 
contracts except contracts that require the release or coordination of 
information.
    We propose to add subpart TAR 1242.3, Contract Administration 
Office Functions, to include section 1242.302, Contract administration 
functions, to implement FAR 42.302(a). In this subpart, DOT would 
authorize contracting officers to: (1) Perform the functions identified 
in FAR 42.302(a)(5), (9), (11), and (12) with the assistance of the 
cognizant government auditing agency, if assigned and available to 
provide support in a timely manner; or (2) use the audit services of a 
CPA firm to perform these functions. DOT contracting officers would be 
authorized to use this authority if a cognizant Federal agency has not 
performed the functions.
    Additionally, in 1242.302(a)(13) we propose to implement DOT's 
procedures for FAR 42.302(a)(13), to set forth that the assignment of 
contract administration to a Defense Contract Management Agency (DCMA) 
office by the contracting officer does not affect the designation of 
the paying office unless a transfer of DOT funds to the agency of the 
Contract Administration Office (CAO) is effected, and the funds are 
converted to the CAO agency's account for payment purposes. DOT's 
policy and procedures would also require that the CAO, the contracting 
officer, or the designated contract specialist in the contracting 
office review and approve the invoices and vouchers under the assigned 
contracts, and would further specify that the review and approval of 
invoices under cost-reimbursement and time-and-materials type contracts 
cannot be delegated to the Contracting Officer's Representative (COR). 
This is useful information for the public to understand which DOT 
Government officials will be reviewing and approving invoices, and that 
such reviews on certain types of contracts cannot be delegated to the 
COR.
    We propose to add subpart TAR 1242.15, Contractor Performance 
Information, to include section 1242.1503, Procedures, to provide that 
each Operating Administration is responsible for assigning 
responsibility and management accountability for the completeness of 
past performance submissions as required in FAR 42.1503(a).
    And, DOT proposes to remove subpart 1242.70, Contract 
Administration Clauses and its underlying section 1242.7000, Contract 
clauses. This corrects an error in placement to better align with the 
subject matter in the FAR and comports with FAR drafting convention and 
numbering. The clauses previously in this subpart are proposed to be 
revised and moved to subpart 1242.2, Contract Administration Services.

TAR Part 1245--Government Property

    As a part of DOT's initiative to streamline the TAR and make it 
more effective, efficient, and transparent, we propose to remove the 
entirety of TAR Part 1245, Government Property, to include the 
underlying subpart 1245.5, Management of Government Property in the 
Possession of Contractors, and sections 1245.505, Records and reports 
of Government Property; 1245.505-14, Reports of Government Property; 
1245.505-70, Contract clauses; 1245.508-2, Reporting results of 
inventories; and 1245.511, Audit of property control system. The 
information is outdated and not in accordance with the FAR. DOT has 
determined that the clause 1252.245-70, Government Property Reports, is 
unnecessary and has eliminated the requirement for contractors to 
report property in its possession on a unique DOT Form since the FAR 
permits contractors to report it using standard commercial practices. 
The prescribed form, DOT F 4220.43, Contractor Report of Government 
Property, is obsolete and has been proposed for removal as described in 
the section on TAR part 1253.

TAR Part 1246--Quality Assurance

    We propose to revise the authority citations for part 1246, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise subpart 1246.1, General, and section 1246.101-
70, Additional definitions, to add the introductory sentence, ``As used 
in this subpart--'' to align with standard FAR and TAR drafting styles, 
and to correct a FAR citation to reflect standard FAR drafting 
convention, and to substantively revise only the definition for ``Major 
acquisition.'' Previously, DOT had referred to the TAM, an internal 
document, for the definition. DOT proposes to provide the common 
definition of the term in the TAR to ensure clarity.
    In subpart 1246.7, Warranties, we propose to revise 1246.705, 
Limitations, and 1245.706, Warranty terms and conditions, to revise the 
numbering and title of the sections to comport with standard FAR 
drafting guidelines and numbering to supplement the FAR and to make 
only minor editorial, formatting, and FAR citation corrections to 
comport with FAR drafting guidelines. We propose to revise and retitle 
1246.705, Limitations, to 1246.705-70, Limitations--restrictions, to 
more accurately supplement the FAR. We also propose to remove paragraph 
(b) as unnecessary and therefore remove the numbering for (a) And we 
propose to revise and retitle 1245.706, Warranty terms and conditions, 
to 1246.706-70, Warranty terms and conditions--requirements, to also 
more accurately supplement the FAR.

TAR Part 1247--Transportation

    We propose to revise the authority citations for part 1247, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise subpart 1247.5, Ocean Transportation by U.S.-
Flag Vessels and section 1247.506, Procedures, to update the name of 
the office and address of the Maritime Administration (MARAD) Office of 
Cargo and Commercial Sealift.

TAR Part 1252--Solicitation Provisions and Contract Clauses

    We propose to revise the authority citations for part 1252, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise subpart 1252.1, Instructions for Using 
Provisions and

[[Page 69468]]

Clauses, by revising section 1252.101 as follows:
     Renumber the section as 1252.101-70 to reflect that this 
section supplements the FAR and correct capitalization of the title to 
conform with FAR Drafting Guidelines so the title reads as ``Using part 
1252.''
     Remove the current ``(b) Numbering.'' nomenclature so it 
is unlettered and adding text to introduce the section topic.
     Remove paragraph (2)(i), Provisions or clauses that 
supplement the FAR, heading as unnecessary for the section.
     Renumber existing paragraphs (b)(2)(i)(A), and (B), as 
``(a)'' and ``(b)'', and the subparagraphs accordingly to conform with 
FAR 1.105-2(b)(2) numbering conventions and to provide updated FAR 
citation references.
    We propose to revise subpart 1252.2, Text of Provisions and 
Clauses, as follows:
    We propose to add clause 1252.201-70, Contracting Officer's 
Representative, to provide the text of the clause prescribed by 
1201.604-70. This states the contracting officer may designate 
Government personnel to act as the Contracting Officer's Representative 
(COR) to perform certain specific functions under the contract and that 
the contracting officer will provide a written notice of such 
designation to the contractor within five working days after contract 
award, or for construction, not less than five working days prior to 
giving the contractor the notice to proceed.
    We propose to add clause 1252.204-70, Contractor Personnel Security 
and Agency Access, to provide the text prescribed by 1204.1303. This 
clause provides certain key definitions as used in the clause to 
provide common meaning to the terms. It outlines specific risk and 
sensitivity level designations and associated levels of processing; 
details that contractor employees may be required to obtain security 
clearances in certain instances; outlines the requirement for 
contractors to pre-screen contractor employees and details some of 
those instances where DOT may decline to grant agency access to a 
contractor employee in some instances, for example, due to conviction 
of a felony, a crime of violence, or a misdemeanor involving moral 
turpitude. The clause further outlines the requirements as pertains to 
citizenship status, background investigation and adjudication issues, 
and when agency access may be denied. It also outlines the 
identification card application process and that the COR will be the 
DOT ID card sponsor and point of contact for the contractor's 
application for a DOT ID card. The proposed clause outlines 
identification card custody and control requirements to include 
notification requirements when a contractor employee's status changes 
or if the card is lost or stolen, and further details the requirement 
to flow down the clause to any subcontracts at any tier that require 
the subcontractor or subcontractor's employees to have access to DOT 
facilities, sensitive information, information systems or other 
resources. This clause is required to ensure compliance with existing 
Federal laws and directives and to ensure DOT facilities, sensitive 
information, information systems or other resources are protected and 
that contractors and their employees who require access understand the 
critical requirements.
    We propose to add clause 1252.209-70, Organizational and Consultant 
Conflicts of Interest, to provide the text prescribed by 1209.507-
270(a). This clause would require that an offeror shall identify in its 
proposal, quote, bid or any resulting contract, any potential or actual 
Organizational and Consultant Conflicts of Interest (OCCI) as described 
in FAR subpart 9.5. This includes actual or potential conflicts of 
interests of proposed subcontractors. If an offeror identifies in its 
proposal, quote, bid or any resulting contract, a potential or actual 
conflict of interest the offeror would be required to submit an 
Organizational and Consultant Conflicts of Interest Plan (OCCIP) to the 
contracting officer. The clause would also provide that if a prime 
contractor or subcontractor breaches any of the OCCI restrictions, or 
does not disclose or misrepresents any relevant facts concerning its 
conflict of interest, the government may take appropriate action, 
including terminating the contract, in additional to any remedies that 
may be otherwise permitted by the contract or operation of law. This 
clause is required to ensure compliance with FAR subpart 9.5.
    We propose to add clause 1252.209-71, Limitation of Future 
Contracting, which would provide the text prescribed by 1209.507-
270(b). The clause would provide notice to contractors that the 
contracting officer has determined that the acquisition may give rise 
to a potential organizational conflict of interest which the 
contracting officer would identify to the public so that potential 
contractors can make a considered judgment on whether they can offer or 
bid on the solicitation and prepare, as needed, for any organizational 
conflicts of interest mitigation strategies. As a result, contractors 
would be put on notice that there would potentially be restrictions on 
future contracting as a result of performing certain tasks under the 
contract. The clause would help DOT ensure that the public is fully on 
notice of any potential Organizational Conflicts of Interests that may 
arise and that might limit participation on future work at DOT as a 
result of work under the contract.
    We propose to revise clause 1252.211-70, Index for Specifications, 
to correct capitalization in the title and to correct the TAR citation 
in the clause.
    We propose to revise provision 1252.216-70, Evaluation of Offers 
Subject to an Economic Price Adjustment Clause, to make minor 
administrative corrections in the title, the TAR citation, and grammar.
    We propose to revise clause 1252.216-71, Determination of Award 
Fee, to make minor administrative corrections in the title, the TAR 
citation, and grammar, as well as to substitute the name of ``Award Fee 
Plan'' in lieu of ``Performance Evaluation Plan'' in paragraph (b).
    We propose to revise clause 1252.216-72, to change the title from 
``Performance evaluation plan'' to ``Award Fee Plan,'' and to 
accordingly make the same changes in paragraphs (a), (b), and (c) of 
the clause, as well as minor formatting and editorial changes in the 
clause.
    We propose to revise clause 1252.216-73, Distribution of Award Fee, 
to make minor administrative corrections in the title and the TAR 
citation, and to correct capitalization of words in the text of the 
clause. It would also update the requirement in paragraph (b) that the 
reserve shall not exceed 15 percent of the total base fee and potential 
award fee or $150,000, whichever is less. The increase to $150,000 from 
the ``$100,000'' amount now reflected in the CFR is to recognize that a 
general increase in some dollar thresholds may be appropriate since the 
last revision of this clause.
    We propose to revise clause 1252.216-74, Settlement of Letter 
Contract, to make minor administrative corrections in the title and the 
TAR citation.
    We propose to revise clause 1252.217-70, Guarantee, to make minor 
administrative corrections in the title and the TAR citation, and other 
minor editorial corrections, and to add in paragraph (a) the phrase, 
``in accordance with the contract terms and conditions'' and to delete 
the phrase, ``to the satisfaction of the Contracting Officer'' to more 
specifically reflect back to the contract requirements. This will help 
ensure clarity in the event any work

[[Page 69469]]

performed or materials furnished by the contractor prove defective or 
deficient within 60 days from the date of redelivery of the vessel(s). 
In such cases, the contractor, as directed by the contracting officer 
and at its own expense, shall correct and repair the deficiency ``in 
accordance with the contract terms and conditions.''
    We propose to revise clause 1252.217-71, Delivery and Shifting of 
Vessel, to make minor administrative corrections in the title and the 
TAR citation.
    We propose to revise clause 1252.217-72, Performance, to make minor 
administrative corrections in the title and the FAR and TAR citations, 
and to correct the name of the FAR clause in paragraph (c)(3).
    We propose to revise clause 1252.217-73, Inspection and Manner of 
Doing Work, to make minor administrative corrections in the title and 
the FAR and TAR citations, and to correct the name of the FAR clause in 
paragraph (e)(7), and update to the current usage of Contracting 
Officer's Representative (COR) in lieu of the older ``COTR'' in 
paragraph (e)(9), as well as other minor grammatical and administrative 
corrections that do not change the substance of the clause.
    We propose to revise clause 1252.271-74, Subcontracts, to make to 
make minor administrative corrections in the TAR citation referencing 
the prescription.
    We propose to revise clause 1252.271-75, Lay Days, to make to make 
minor administrative corrections in the title and the TAR citation 
referencing the prescription.
    We propose to revise clause 1252.217-76, Liability and Insurance, 
to make to make minor administrative corrections in the title and the 
TAR citation referencing the prescription.
    We propose to revise clause 1252.217-77, Title, to make to make 
minor administrative corrections in the title and the TAR citation 
referencing the prescription, and to correct the last word in paragraph 
(b) to read ``equipment'' in lieu of ``equipments.''
    We propose to revise clause 1252.217-78, Discharge of Liens, to 
make to make minor administrative corrections in the title and the TAR 
citation referencing the prescription.
    We propose to revise clause 1252.217-79, Delays, to make to make 
minor administrative corrections in the TAR citation referencing the 
prescription.
    We propose to revise clause 1252.217-80, Department of Labor Safety 
and Health Regulations for Ship Repair, to change the word in the title 
from ``Repairing'' to ``Repair'', and to correct the TAR citation 
referencing the prescription.
    We propose to remove clause 1252.219-71, Section 8(a) Direct 
Awards, in its entirety as unnecessary and duplicative of the FAR.
    We propose to remove clause 1252.219-72, Notification of 
Competition Limited to Eligible 8(a) Concerns--Alternate III, in its 
entirety as unnecessary and duplicative of the FAR.
    We propose to revise clause 1252.222-70, Strikes or Picketing 
Affecting Timely Completion of the Contract Work, to make to make minor 
administrative corrections in the title and the TAR citation 
referencing the prescription.
    We propose to revise clause 1252.222-71, Strikes or Picketing 
Affecting Access to a DOT Facility, to make to make minor 
administrative corrections in the title and the TAR citation 
referencing the prescription.
    We proposed to add clause 1252.222-72, Contractor Cooperation in 
Equal Employment Opportunity and Anti-Harassment Investigations, which 
adds definitions to provide common meaning to three terms as used in 
the clause. It would require that in addition to complying with the 
clause at FAR 52.222-26, Equal Opportunity, the Contractor shall, in 
good faith, cooperate with the Department of Transportation in 
investigations of Equal Employment Opportunity (EEO) complaints 
processed pursuant to 29 CFR part 1614 as well as internal Anti-
Harassment investigations. It would also provide that failure to 
cooperate could be potential grounds for termination for cause or 
default, and it requires flowdown of the clause in all subcontracts, at 
any tier.
    We propose to revise clause 1252.223-70, Removal or Disposal of 
Hazardous Substances--Applicable Licenses and Permits, to make to make 
minor administrative corrections in the title, the TAR citation 
referencing the prescription, and make minor editorial formatting 
changes in the clause.
    We propose to revise clause 1252.223-71, Accident and Fire 
Reporting, to make minor administrative corrections in the title and 
the TAR citation referencing the prescription, and other minor 
administrative editorial corrections, as well as to remove in paragraph 
(b)(1) two outdated reference to ``by telegram or facsimile 
transmission'' to instead state that reports of accidents or fires 
resulting in a death, hospitalization of five or more persons, or 
destruction of Government-owned or leased property (either real or 
personal), the total value of which is estimated at $100,000 or more, 
shall be reported immediately by telephone to the Contracting Officer 
or his/her authorized representative and shall be confirmed in writing 
within 24 hours to the Contracting Officer.
    We propose to revise clause 1252.223-72, Protection of Human 
Subjects, to make minor administrative corrections in the title and the 
TAR citation referencing the prescription, to correct a FAR citation in 
paragraph (g), and to update the clause to indicate that DOT 
regulations and any OA specific procedures apply.
    We propose to revise clause 1252.223-73, Seat Belt Use Policies and 
Programs, to make minor administrative corrections in the title and the 
TAR citation referencing the prescription, to update the name of the 
safety campaigns now in use by DOT--``Click It or Ticket'', and to 
provide updated website information, as well as make other minor 
grammatical corrections.
    We propose to revise clause 1252.228-70, Loss of or Damage to 
Leased Aircraft, to make minor administrative corrections in the title 
and the TAR citation referencing the prescription, as well as to make 
other minor editorial corrections.
    We propose to revise clause 1252.228-71, Fair Market Value of 
Aircraft, to make minor administrative corrections in the title and the 
TAR citation referencing the prescription, as well as to make other 
minor editorial corrections, and to add the reference to clause number 
1252.228-70 to the cited clause title, ``Loss of or Damage to Leased 
Aircraft,'' to conform with FAR drafting conventions.
    We propose to revise clause 1252.228-72, Risk and Indemnities, to 
make minor administrative corrections in the title and the TAR citation 
referencing the prescription.
    We propose to add clause 1252.228-73, Command of Aircraft, to 
require that during the performance of a contract for out-service 
flight training for DOT, whether the instruction to DOT personnel is in 
leased, contractor-provided, or Government-provided aircraft, 
contractor personnel shall always, during the entirety of the course of 
training and during operation of the aircraft, remain in command of the 
aircraft. At no time shall other personnel be permitted to take command 
of the aircraft.
    We propose to renumber clause 1252.228-73 to 1252.228-74, and to 
revise the title to read ``Notification of Payment Bond Protection,'' 
in lieu of ``Notification of Miller Act payment bond protection'' to 
comport with the

[[Page 69470]]

current reference to the older ``Miller Act'' statute, to correct the 
TAR citation referencing the prescription, as well as to make other 
minor editorial corrections that would also update the correct title 
for the ``Miller Act'' statute to ``Bonds statute'' in paragraphs (a) 
and (b). We propose to add a new paragraph (c) to add subcontract 
flowdown requirements requiring prime contractors to insert this notice 
clause in all first-tier subcontracts and to require the clause to be 
subsequently flowed down by all first-tier subcontractors to all 
subcontractors, at any tier.
    We propose to revise clause 1252.231-70, Date of Incurrence of 
Costs, to make minor administrative corrections in the title, the TAR 
citation referencing the prescription and to make minor editorial 
formatting changes.
    We propose to add clause 1252.232-70, Electronic Submission of 
Payment Requests, that would provide four definitions to establish a 
common meaning when used in the clause; provide notice to contractors 
that electronic payment requests are required, with exceptions; specify 
the processing system DOT uses and the iSupplier (DELPHI) system and 
login address that would be used to submit such electronic invoices; 
invoice requirements to receive payment; specify payment registration 
system procedures; and specify how waivers are processed and exceptions 
and alternate payment procedures for DOT. This clause is required to be 
inserted into DOT contracts to ensure contractors and vendors are aware 
of electronic invoice processing requirements and how to submit and 
process invoices to ensure payment under DOT contracts.
    We propose to add clause 1252.232-71, Limitation of Government's 
Obligation, that would permit contracting officers, if funding is not 
currently available to fully fund the contract due to the Government 
operating under a continuing resolution to incrementally fund items if 
listed in a table contained in the clause. The clause outlines the 
parameters of the incremental funding, to include a requirement that 
the contractor provide notice to the contracting officer in writing 
when work will reach the point at which the total amount payable by the 
Government, including any cost for termination for convenience, will 
approximate 85 percent of the total amount then allotted to the 
contract for performance of the item(s) identified. The clause also 
cautions that nothing in the clause shall be construed as authorization 
of voluntary services whose acceptance is otherwise prohibited under 31 
U.S.C. 1342. This clause is necessary to permit DOT contracting 
officers to proceed with performance during periods of continuing 
resolutions if partial funds are available and provide a mechanism to 
incrementally fund the contract. This clause was benchmarked with other 
Federal agencies who have similarly authorized this type of incremental 
funding.
    We propose to revise clause 1252.235-70, Research Misconduct, to 
make minor administrative corrections in the title and the TAR citation 
referencing the prescription, and to make other minor grammatical and 
editorial non-substantive edits in the clause to comport with FAR 
drafting convention. Further, we propose to add a paragraph (i) to the 
clause to add subcontract flowdown language to require the contractor 
to include the clause in all subcontracts that involve research.
    We propose to add clause 1252.235-71, Technology Transfer, to 
provide the text of the clause prescribed by 1235.011-70. The clause 
would require the contractor to develop a Technology Transfer Plan in 
accordance with the statement of work and to receive approval by the 
contracting officer prior to the initiation of any work under the 
contract. It details the minimum requirements for the plan, as well as 
a requirement to periodically update the plan at least once every six 
months via a Technology Transfer Report, and also details the minimum 
information for the report. DOT requires this clause to obtain 
essential information on the output of research so that the Government 
can efficiently identify reporting requirements and leverage research 
in which DOT invests. This provides clarity to the public prior to 
commencement of work under a cognizant research contract so that the 
contractor can appropriate identify and track information prior to 
commencement of the effort.
    We propose to revise clause 1252.236-70, Special Precautions for 
Work at Operating Airports, to make minor administrative corrections in 
the title and the TAR citation referencing the prescription, and to 
make other minor grammatical and editorial non-substantive edits in the 
clause to comport with FAR drafting convention.
    We propose to revise clause 1252.237-70, Qualifications of 
Contractor Employees, to make minor administrative corrections in the 
title and the TAR citation referencing the prescription; to make other 
minor grammatical and editorial non-substantive edits in the clause to 
comport with FAR drafting convention; and to remove paragraphs (f) and 
(g) because it is duplicative of other DOT or FAR clauses or contains 
outdated information. We also propose to make substantive edits to 
paragraphs (b) and (e). In paragraph (b), we are providing clarity to 
the need to protect sensitive information and the requirement for 
contractors to train contractor employees who are authorized to access 
sensitive information, and detail the requirement for the contractor to 
provide information to assist the Government in determining an 
individual's suitability to have an authorization to access DOT 
information and information systems. In paragraph (e), we removed 
subparagraphs (e)(1) and (2) in their entirety to streamline the 
paragraph to state that the contractor shall ensure that contractor 
employees are citizens of the United States of America or non-citizens 
who have been lawfully admitted for permanent residence or employment 
(indicated by immigration status) as evidenced by U.S. Citizenship and 
Immigration Services (USCIS) documentation. DOT also proposes to add a 
new paragraph (f) to describe an updated subcontract flowdown 
requirement requiring the contractor to include the clause in 
subcontracts whenever clause 1252.237-70 is included in the prime 
contractor's contract.
    We propose to revise section 1252.237-71, Certification of Data, to 
make minor administrative corrections in the title and the TAR citation 
referencing the prescription, and to remove the ``NOTICE'' paragraph 
text preceding paragraph (a) as it contains an internal DOT 
determination and reference to an outdated memorandum that is 
unnecessary and inappropriate to include within the body of the 
provision. We proposed to add in paragraph (b) ``or for cause'' after 
``termination for default'' when stating that offerors submitting 
inaccurate data to the Department of Transportation may subject the 
offeror, its subcontractors, employees or its representatives to 
prosecution for false statements pursuant to 18 U.S.C. 1001 and/or 
enforcement action for false claims or statements, or termination for 
default or for cause under any contract resulting from its offer, and/
or debarment or suspension. In paragraph (c), we propose to add the 
phrase, ``and submit such certification(s) with its offer'' after the 
existing sentence so that it now reads: The offeror agrees to obtain a 
similar certification from its subcontractors and submit such 
certification(s) with its offer.
    We propose to revise clause 1252.237-72, Prohibition on

[[Page 69471]]

Advertising, to make minor administrative corrections in the title and 
the TAR citation referencing the prescription.
    We propose to revise clause 1252.237-73, Key Personnel, to make 
minor administrative corrections in the title and the TAR citation 
referencing the prescription, as well as minor grammatical corrections 
and formatting of contracting officer insert instructions in the text.
    We propose to revise clause 1252.239-70, Security Requirements for 
Unclassified Information Technology Resources, in its entirety, to make 
substantive revisions to the clause to clarify that the contractor 
shall be responsible for information technology security for all 
systems connected to a DOT network or operated by the contractor for 
DOT, regardless of location. It provides examples of tasks that require 
security provisions. The clause requires a contractor to develop, 
provide, implement, and maintain an IT Security Plan that would 
describe the processes and procedures the contractor will follow to 
ensure appropriate security of IT resources developed, processed, or 
used under the contract. It requires the contractor to submit written 
proof of IT security accreditation to the contracting officer and 
requires, on an annual basis, the contractor to verify in writing that 
the IT Security Plan remains valid. It also requires contractor 
personnel to be screened and trained, and that contractors shall 
provide the Government access to the Contractor's and subcontractors' 
facilities, installations, operations, documentation, databases and 
personnel used in performance of the contract. The Contractor shall 
provide access to enable a program of IT inspection (to include 
vulnerability testing), investigation and audit (to safeguard against 
threats and hazards to the integrity, availability and confidentiality 
of DOT data or to the function of information technology systems 
operated on behalf of DOT), and to preserve evidence of computer crime. 
The contractor is also required to flow down the clause to all 
subcontracts as specified in the clause. This revision is necessary to 
update DOT information system and security requirements to meet current 
Federal Governmentwide requirements.
    We propose to revise clause 1252.239-71, Information Technology 
Security Plan and Accreditation, to make minor administrative 
corrections in the title and the TAR citation referencing the 
prescription, to use the word ``shall'' in lieu of ``must'' in regards 
to the requirement that all offers submitted in response to the 
solicitation shall address the approach for completing the security 
plan and accreditation requirements, and to add the name of the title 
of the referenced clause 1252.239-70, Security Requirements for 
Unclassified and Sensitive Information Technology Resources.
    We propose to add clause 1252.239-72, Compliance with Safeguarding 
DOT Sensitive Data Controls, that would require contractors to 
implement security requirements contained in clause 1252.239-74, 
Safeguarding DOT Sensitive Data and Cyber Incident Reporting, for all 
DOT sensitive data on all Contractor information systems that support 
the performance of the contract. This clause would exclude contractor 
information systems not part of an information technology service or 
system operated on behalf of the Government. The offeror would be 
required to represent that it will implement the security requirements 
specified by National Institute of Standards and Technology (NIST) 
Special Publication (SP) 800-171 ``Protecting Controlled Unclassified 
Information in Nonfederal Information Systems and Organizations.'' This 
clause would also specify procedures when the contractor proposes to 
vary from any security requirements specified by NIST SP 800-171. This 
clause would ensure compliance with NIST SP 800-171 requirements 
imposed throughout the Federal Government.
    We propose to add clause 1252.239-73, Limitations on the Use or 
Disclosure of Third-Party Contractor Reported Cyber Incident 
Information, as prescribed by 1239.7003(b), to provide six definitions 
that would establish common meaning for terms used in the clause. The 
clause identifies certain restrictions and conditions that apply to any 
information the contractor receives or creates in the performance of 
the contract, and it would set forth that a breach of obligations or 
restrictions under the contract may subject a contractor to criminal, 
civil, administrative, and contractual penalties and other appropriate 
remedies and civil actions for damages and other appropriate remedies 
by a third party that may report a cyber incident under the clause. It 
would also require flowdown in subcontracts.
    We propose to add clause 1252.239-74, Safeguarding DOT Sensitive 
Data and Cyber Incident Reporting, as prescribed in 1239.7003(c). The 
clause would provide 14 key definitions that would establish common 
meaning and usage for the terms as used in the clause and outlines the 
requirement for a contractor to provide adequate security on all 
covered contractor information systems. The clause details the minimum 
adequate security requirements; details that if the contractor intends 
to use an external cloud service provider to store, process, or 
transmit any DOT sensitive data in performance of this contract, the 
contractor shall require and ensure that the cloud service provider 
meets security requirements equivalent to those established by the 
Government for the Federal Risk and Authorization Management Program 
(FedRAMP) Moderate baseline (https://www.fedramp.gov/resources/documents/) and that the cloud service provider complies with 
requirements in paragraphs (c) through (h) of the clause for cyber 
incident reporting, malicious software, media preservation and 
protection, access to additional information and equipment necessary 
for forensic analysis, and cyber incident damage assessment. The clause 
outlines in paragraphs (k) and (j) when certain information is 
authorized to be released outside of DOT. It would require that 
notwithstanding the safeguarding and cyber incident reporting required 
by the clause, the contractor retains responsibility for other 
safeguarding or cyber incident reporting pertaining to its unclassified 
information systems as required by other applicable clauses of a 
contract, or as a result of other applicable U.S. Government statutory 
or regulatory requirements. The clause would also require flowdown to 
subcontracts as required by paragraph (o). Subcontractors would be 
required to notify the prime contractor (or next higher-tier 
subcontractor) when submitting a request to vary from a NIST SP 800-171 
security requirement to the contracting officer, and to provide the 
incident report number, automatically assigned by DOT, to the prime 
contractor (or next higher-tier subcontractor) as soon as practicable, 
when reporting a cyber incident to DOT as required by the clause.
    We propose to add clause 1252.239-75, DOT Protection of Information 
About Individuals, PII, and Privacy Risk Management Requirements, as 
prescribed by 1239.7104. The clause outlines the requirement for 
contractors to comply with all applicable Federal law, guidance, and 
standards, as well as DOT policies pertaining to the protection of 
Personally Identifiable Information (PII), to the extent the contractor 
creates, maintains, acquires, discloses, uses, or has access to PII 
under the contract. The clause would require action on the part of the

[[Page 69472]]

contractor or the Government when there are unanticipated threats to 
bring the situation to the attention of the other party. The clause 
also contains requirements with respect to compliance with the Privacy 
Act of 1974, including DOT implementing regulations at 49 CFR part 10, 
as well as the requirement to protect Privacy Act records, to execute a 
confidentiality agreement, and to surrender records when required. The 
clause outlines the requirement to comply with NIST FIPS 140-2 and FIPS 
199 to protect sensitive information, actions that are required in the 
event of a breach to include reporting breaches involving PII directly 
to DOT at a centrally manned reporting number within two hours of 
discovery, the obligation to information employees and associates of 
the obligations contained in the clause, training requirements for such 
individuals, and the requirement to flowdown the clause to all 
subcontracts.
    We propose to add clauses 1252.239-76 through 1252.239-88 to comply 
with clause requirements outlined for Federal agencies in accordance 
with the Federal Risk and Authorization Management Program (FedRAMP), a 
government-wide program that provides a standardized approach to 
security assessment, authorization, and continuous monitoring for cloud 
products and services:
    We propose to add clause 1252.239-76, Cloud Computing Services, as 
prescribed in 1239.7204(a). The clause outlines requirements 
contractors must comply with when cloud computing services are used to 
provide information technology services in the performance of the 
contract. The clause provides nine key definitions for terms used in 
the clause to provide common meaning and understanding. It would 
require contractors to receive permission to use cloud computing 
services under the contract if the offer did not provide or anticipate 
such use. It would require contractors to implement and maintain 
administrative, technical, and physical safeguards and controls with 
the security level and services required in accordance with the DOT 
Order 1351.37, Departmental Cybersecurity Policy, and the requirements 
of DOT Order 1351.18, Departmental Privacy Risk Management Policy. It 
would also require the contractor to maintain all Government data not 
physically located on DOT premises within the United States, the 
District of Columbia, and all territories and possessions of the United 
States, unless the contractor receives written notification from the 
contracting officer to use another location, in accordance with DOT 
Policy. The clause outlines how DOT will determine the security 
classification level for the cloud system, the requirement to comply 
with certain FedRAMP standards, and the requirement to implement 
privacy and security safeguards. The clause provides that the 
Government may perform manual or automated audits, scans, reviews, or 
other inspections of the vendor's IT environment being used to provide 
or facilitate services for the Government. The clause also outlines 
limitations on access to and use and disclosure of Government data and 
Government-related data; cloud computing services cyber incident 
reporting; spillage; malicious software; media preservations and 
protection requirements; access to additional information or equipment 
necessary for forensic analysis; cyber incident damage assessment 
activities; and subcontract flowdown requirements. This clause would 
ensure compliance with Federal-wide FedRAMP requirements and cloud 
computing services standards and to ensure contractors who perform such 
work for DOT are aware of the requirements.
    We propose to add clause 1252.239-77, Data Jurisdiction, as 
prescribed by 1239.7204(b), that would require contractors to identify 
all data centers that the data at rest or data backup will reside, 
including primary and replicated storage. It would also require the 
contractor to ensure that all data centers not physically located on 
DOT premises reside within the United States, the District of Columbia, 
and all territories and possessions of the United States, unless 
otherwise authorized by the DOT CIO.
    We propose to add clause 1252.239-78, Validated Cryptography for 
Secure Communications, as prescribed by 1239.7204(c), that would 
require a contractor to use only cryptographic mechanisms that comply 
with certain levels of FIPS 140-2 using a fill-in. It would also 
require that external transmission or dissemination of certain 
Government information to or from a Government computer must be 
encrypted.
    We propose to add clause 1252.239-79, Authentication, Data 
Integrity, and Non-Repudiation, as prescribed in 1239.7204(d), that 
would require the contractor to provide a cloud service system that 
provides for origin authentication, data integrity, and signer non-
repudiation.
    We propose to add clause 1252.239-80, Audit Record Retention for 
Cloud Service Providers, as prescribed in 1239.7204(e), that would 
require the contractor to manage their electronic records in accordance 
with 36 CFR1236.20 and 1236.22, as well as other standards, including 
NARA Bulletin 2008-05, July 31, 2008, Guidance concerning the use of 
email archiving applications to store email. It would also require the 
contractor to maintain records to retain functionality and integrity 
throughout the records' full lifecycle.
    We propose to add clause 1252.239-81, Cloud Identification and 
Authentication (Organizational Users) Multi-Factor Authentication, as 
prescribed in 1239.7204(f), that would require a contractor to support 
a secure, multi-factor method of remote authentication and 
authorization to identified Government Administrators that will allow 
Government-designated personnel the ability to perform management 
duties on the system.
    We propose to add clause 1252.239-82, Identification and 
Authentication (Non-Organizational Users), as prescribed in 
1239.7204(g), that would require contractors to support a secure, 
multi-factor method of remote authentication and authorization to 
identified Contractor Administrators that will allow Contractor 
designated personnel the ability to perform management duties on the 
system as required by the contract.
    We propose to add clause 1252.239-83, Incident Reporting 
Timeframes, as prescribed in 1239.7204(h), that would require 
contractors to report all computer security incidents to the DOT 
Security Operations Center (SOC) in accordance with Subpart 1239.70--
Information Security and Incident Response Reporting. It also requires 
contractors and subcontractors are required to report cyber incidents 
directly to DOT via the DOT SOC 24 hours-a-day, 7 days-a-week, 365 days 
a year.
    We propose to add clause 1252.239-84, Media Transport, as 
prescribed in 1239.7204(i), that would require the contractor to 
document activities associated with the transport of DOT information 
stored on digital and non-digital media and employ cryptographic 
mechanisms to protect the confidentiality and integrity of this 
information during transport outside of controlled areas. And it would 
also require that DOT or other Federal agency sensitive or third-party 
provided information that resides on mobile/portable devices (e.g., USB 
flash drives, external hard drives, and SD cards) must be encrypted.
    We propose to add clause 1252.239-85, Personnel Screening--
Background Investigations, as prescribed in 1239.7204(j), that would 
require contractors to provide support

[[Page 69473]]

personnel who are U.S. persons maintaining a NACI clearance or greater 
in accordance with OMB memorandum M-05-24, Section C. The clause also 
outlines the requirement that contractor employees with access to DOT 
systems containing sensitive information may be required to obtain 
security clearances (i.e., Confidential, Secret, or Top Secret), and 
provides how such investigations and documentation will be processed.
    We propose to add clause 1252.239-86, Boundary Protection--Trusted 
Internet Connections, as prescribed in 1239.7204(k), that would require 
contractors to ensure that Federal information, other than non-
sensitive information, being transmitted from Federal government 
entities to external entities using cloud services is inspected by 
Trusted Internet Connections (TIC) processes or that all external 
connections be routed through a Trusted Internet Connection (TIC).
    We propose to add clause 1252.239-87, Protection of Information at 
Rest, as prescribed in 1239.7204(l). The clause would require 
contractors to provide security mechanisms for handling data at rest 
and in transit in accordance with FIPS 140-2 and contains a contracting 
officer fill-in for the encryption standard.
    We propose to add clause 1252.239-88, Security Alerts, Advisories, 
and Directives, as prescribed in 1239.7204(m). The clause would require 
contractors to provide a list of contractor personnel, identified by 
name and role, who are assigned system administration, monitoring, and/
or security responsibilities and are designated to receive security 
alerts, advisories, and directives, as well as a similar list of 
individuals responsible for the implementation of remedial actions 
associated with them.
    We propose to add clause 1252.239-89, Technology Modernization, as 
prescribed in 1239.7303(a), that would, after contract award and when 
applicable, permit the Government to solicit and the contractor to 
propose independently, a modernization approach to the hardware, 
software, specifications, or other requirements of the contract. This 
would be permitted to increase efficiencies (both system and process 
level), reduce costs, strengthen the cyber security posture, or for any 
other purpose which presents an advantage to the Government. The clause 
outlines proposal requirements, the process for withdrawal of a 
proposal not adopted by contract modification within the period 
specified in the proposal, as well as requirements for product testing, 
contract modification issuance and use of change orders.
    We propose to add clause 1252.239-90, Technology Upgrades/
Refreshment, as prescribed in 1239.7303(b). This clause would, after 
issuance of the contract, allow the Government to solicit, and 
encourage the Contractor to propose independently, technology 
improvements to the hardware, software, specifications, or other 
requirements of the contract. These improvements may be proposed to 
save money, to improve performance, to save energy, to satisfy 
increased data processing requirements, or for any other purpose that 
presents a technological advantage to the Government. The clause 
provides the requirement for a price or cost proposal to be included 
with the proposed changes for evaluation, and the minimum information 
required to be submitted to the contracting officer. It also provides 
that the Government may wish to test and evaluate any item(s) proposed 
and provides the procedures the Government will follow.
    We propose to add clause 1252.239-91, Records Management, as 
prescribed in 1239.7403, that would provide requirements for 
contractors to comply with all applicable records management laws and 
regulations, as well as National Archives and Records Administration 
(NARA) records policies, including but not limited to the Federal 
Records Act (44 U.S.C. chapters 21, 29, 31, 33), NARA regulations at 36 
CFR Chapter XII Subchapter B, and those policies associated with the 
safeguarding of records covered by Privacy Act of 1974 (5 U.S.C. 552a). 
These policies include the preservation of all records, regardless of 
form or characteristics, mode of transmission, or state of completion. 
The clause outlines the applicability of the data that falls under the 
purview of the clause, records maintenance requirements and custody 
responsibilities, restrictions related to unauthorized disclosure, and 
the requirement that the contractor shall not create or maintain any 
records containing any non-public DOT information that are not 
specifically authorized by the contract. It also provides information 
on rights in data under the contract which are set forth in specific 
clauses prescribed by FAR part 27 and included in the contract, and 
requires that contractors must make any assertion of copyright in the 
data or other deliverables under the contract and substantiate such 
assertions; requires contractors to mark any data to which contractors 
assert any rights; requires contractors to mark any data to which 
contractors assert any rights; provides training requirements for 
contractor employees and subcontractors; and requires flowdown of the 
clause in all subcontracts.
    We propose to add provision 1252.239-92, Information and 
Communication Technology Accessibility Notice, as prescribed in 
1239.203-70(a), that would provide notice to potential offerors that 
any offeror responding to this solicitation must comply with 
established DOT Information and Communication Technology (ICT) 
(formerly known as Electronic and Information (EIT)) accessibility 
standards. Information about Section 508 is available at https://www.section508.gov/ or https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-section-508-standards. The 
provision provides notice that to facilitate the Government's 
determination whether proposed ICT supplies and services meet 
applicable Section 508 accessibility standards, offerors must submit 
appropriate Section 508 Checklists, in accordance with the checklist 
completion instructions. The purpose of the checklists is to assist DOT 
acquisition and program officials in determining whether proposed ICT 
supplies or information, documentation and services support conform to 
applicable Section 508 accessibility standards. The provision states 
that Section 508 accessibility standards applicable to the solicitation 
are stated in the clause at 1252.239-81, Information and Communication 
Technology Accessibility. This was benchmarked based on similar clauses 
at other agencies and ensures that DOT provides the public notice of 
important Section 508 requirements and how offerors must submit 
information.
    We propose to add clause 1252.239-94, Information and Communication 
Technology Accessibility, as prescribed in 1239.203-70(b), that would 
provide a key definition for the term ``Electronic and Information 
Technology (EIT) to provide common meaning as used in the clause and 
state that it is intended to refer to Information and Communication 
Technology (ICT) and any successor terms used to describe such 
technology. The clause would require that all EIT supplies, 
information, documentation and services support developed, acquired, 
maintained or delivered under the contract or order must comply with 
the Information and Communication Technology (ICT) Standards and 
Guidelines (see 36 CFR parts 1193 and 1194). It also states that 
Section 508 accessibility standards applicable to the contract or order 
are identified in the

[[Page 69474]]

Specification, Statement of Work, or Performance Work Statement. The 
clause also provides that in the event a modification to the contract 
or order adds new ICT supplies or services or revises the type of, or 
specifications for, supplies or services, the contracting officer may 
require that the contractor submit a completed Section 508 Checklist 
and any other additional information necessary to assist the Government 
in determining that the ICT supplies or services conform to Section 508 
accessibility standards. It also provides that if the contract is an 
indefinite-delivery type contract, a Blanket Purchase Agreement or a 
Basic Ordering Agreement, the task/delivery order requests that include 
ICT supplies or services will define the specifications and 
accessibility standards for the order.
    We propose to revise clause 1252.242-70, Dissemination of 
Information--Educational Institutions, to make minor administrative 
corrections in the title and to the TAR citation referencing the 
prescription to comport with FAR drafting convention.
    We propose to revise clause 1252.242-71, Contractor Testimony, to 
make minor administrative corrections in the title and to the TAR 
citation referencing the prescription to comport with FAR drafting 
convention.
    We propose to revise clause 1252.242-72, Dissemination of Contract 
Information, to make minor administrative corrections in the title and 
to the TAR citation referencing the prescription to comport with FAR 
drafting convention.
    We propose to remove clause 1252.242-73, Contracting officer's 
technical representative, as the clause has been revised and moved to 
TAR part 1201 as 1252.201-70, Contracting Officer's Representative.
    We propose to add clause 1252.242-70, Contract Audit Support, as 
prescribed in 1242.170, that would set forth that the Government may at 
its sole discretion utilize certified public accountant(s) to provide 
contract audit services in lieu of the cognizant government audit 
agency to accomplish the contract administration requirements of FAR 
parts 32 and 42 under the terms and conditions of the contract. It 
would prohibit disclosure of proprietary financial data or use of such 
data for any purpose other than to perform the required audit services. 
And it would also detail that when the Government utilizes such 
contract audit support under the contract, access to accounting 
systems, records and data is required to be provided to the audit 
services contractor like that provided to the cognizant government 
auditor. This would provide the necessary notice to the contractor that 
would permit such non-Government auditors to be utilized.
    We propose to remove clause 1252.245-70, Government property 
records. The prescription was removed at 1245.505-70 because the 
requirement is outdated and in conflict with the updated FAR part 45. 
The updated FAR part 45 provides that contractors may submit property 
reports using standard commercial practice, and the cited DOT Form 
4220.43, Contractor Report of Government Property, is not required to 
be utilized. This results in potential savings to contractors who may 
use existing standard commercial practices and eliminates the 
requirement to use a specialized Government form.
    We propose to add subpart 1252.3, Provision and Clause Matrix, and 
the section 1252.301, Solicitation provisions and contract clauses 
(Matrix). This section states the TAR matrix is not published in the 
CFR. It is available on the Acquisition.gov website at https://www.acquisition.gov/TAR. This is comparable to the FAR, which also does 
not incorporate a matrix in the CFR. The matrix is a tool that explains 
how and when prescribed provisions and clauses may be utilized in 
accordance with the FAR or TAR, but is not codified and is not policy.
    We propose to remove the TAR Provision and Clause Matrix, which is 
currently reflected in the TAR part 1252 as an Appendix.

TAR Part 1253--Forms

    We propose to revise the authority citations for part 1253, for the 
reasons set forth in the discussion and analysis section, to read as 
follows: 5 U.S.C. 301; 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.
    We propose to revise subpart 1253.2, Prescription of Forms, and 
section 1253.204, Administrative matters, to renumber the section and 
title as 1253.204-70, Administrative matters--agency specific forms, to 
make minor administrative correction to the TAR citation referencing 
the form prescriptions and in the body of the text to comport with FAR 
drafting conventions, and to make other non-substantive editorial 
edits.
    We propose to remove section 1253.222, Application of labor laws to 
Government acquisitions, which would remove the prescription for the 
use of Form DOT F 4220.7, Employee Claim for Wage Restitution from the 
TAR. The requirement for use of this form is currently set forth in 
subpart 1222.4, Labor Standards for Contracts Involving Construction, 
and the underlying sections 1222.406, Administration and Enforcement, 
and 1222.406-9, Withholding from or suspension of contract payments. 
These provisions are also proposed for removal. Form DOT F 4220.7 would 
only be used if an employee raises an issue with lack of payment of 
wages by a contractor. DOT would investigate, with the Department of 
Labor and in accordance with the policies and procedures referenced in 
FAR 22.406-8--22.406-9. The form would not be submitted to or through a 
contractor and thus is unnecessary as part of the TAR. Removal from the 
TAR of these provisions, and thus the requirement to use Form DOT F 
4220.7, does not impact the rights of employees or the requirement for 
the Government to investigate labor standards violations in accordance 
with the FAR as cited, nor for a DOT contracting officer to properly 
take action under the contract to withhold funds as the investigation 
warrants. The form would only be required and used outside of the 
Government--contractor communication channels and directly with the 
affected employee(s) to help them receive payment for any wages 
adjudicated as owed. This scenario would only come into play if the 
wage issues are not resolved by the contracting officer and the 
contractor under the contract. It is a form the Government uses to pay 
Government funds directly to employees when an investigation finds 
wages are due and a contractor does not act under the contract to 
remedy the issue. In this instance, the form would be used to provide 
funds from the U.S. Treasury directly to the affected employee. Thus, 
the process involving use of Form DOT F 4220.7 is outside of the TAR.
    We propose to add 1253.227, Patents, data, and copyrights, as a 
section title with no text, and to revise 1253.227, Conveyance of 
invention rights acquired by the Government, to renumber the section 
and title as 1253.227-3, Patent rights under Government contracts, 
which more accurately conveys where in the TAR the applicable forms fit 
within TAR part 1227. The revisions would make minor administrative 
corrections to the TAR citation referencing the form prescriptions and 
to the body of the text to comport with FAR drafting convention. We 
also propose to update the form where the public may obtain a DD Form 
882, Report of Inventions and Subcontracts, that is authorized for use 
under DOT contracts.
    We propose to remove 1253.245-70 Report of Government property, 
because the form prescribed in the section is no longer in use. For DOT 
to require its use

[[Page 69475]]

would be conflict with FAR part 45. This results in potential savings 
to contractors who may use existing standard commercial practices and 
eliminates the requirement to use a specialized Government form.
    In subpart 1253.3, Illustration of Forms, we propose to revise the 
subpart by retitling the subpart to read: ``Forms Used in 
Acquisitions'' to comport with FAR subpart 53.3. We also propose to 
revise 1253.303, Agency forms, to renumber it as 1253.303-70, and 
retitle it as ``DOT agency forms.''
    We propose to remove the ``Appendix to Subpart 1253.3 of Part 
1253'' as unnecessary, to revise the text to clarify how the public may 
access DOT agency forms, and to provide an updated website for the 
Office of the Senior Procurement Executive.
    We propose to add the Table header, ``Table 1253-1--Forms Use in 
DOT Acquisitions'' above the existing table of DOT forms. In this table 
we propose to remove the following rows, the reference to the forms, 
and the related .pdf and word document links:
    The second row and form titled, Employee Claim for Wage 
Restitution,'' 4220.7 as the form prescription is removed in 1253.222, 
Application of labor laws to Government acquisitions;
    The third row and form titled, ``Contractor Report of Government 
Property,'' 4220.43, as the prescription is removed in 1253.245-70 
Report of Government property; and
    The last row and the form titled, ``Report of Inventions and 
Subcontracts and Instructions, DD Form 882. The Department of Defense 
maintains their own accessible public-facing website where the form can 
be obtained as indicated in the proposed section 1253.227-3.

Regulatory Reviews

Executive Order 12866 and 13563

    Executive Orders (E.O.) 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). Executive Order 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 examined the 
economic, interagency, budgetary, legal, and policy implications of 
this regulatory action, and has determined that this rule is not a 
significant regulatory action under E.O. 12866.
    DOT'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.

Paperwork Reduction Act

    This proposed rule includes provisions constituting collections of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521) that require approval by the Office of Management and Budget 
(OMB). Accordingly, under 44 U.S.C. 3507(d), DOT has submitted a copy 
of this rulemaking action to OMB for its review.
    OMB assigns control numbers to collections of information it 
approves. DOT may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. DOT is describing 12 collections of 
information proposed in this rule under the TAR, 48 CFR part 1252, 
Solicitation Provisions and Contract Clauses, that are related to 48 
CFR part 1239, Acquisition of Information Technology:
     48 CFR 1252.239-70, Security Requirements for Unclassified 
Information Technology Resources.
     48 CFR 1252.239-72, Compliance with Safeguarding DOT 
Sensitive Data Controls.
     48 CFR 1252.239-74, Safeguarding DOT Sensitive Data and 
Cyber Incident Reporting.
     48 CFR 1252.239-75, DOT Protection of Information About 
Individuals, PII, and Privacy Risk Management Requirements.
     48 CFR 1252.239-76, Cloud Computing Services.
     48 CFR 1252.239-77, Data Jurisdiction.
     48 CFR 1252.239-80, Audit Record Retention for Cloud 
Service Providers.
     48 CFR 1252.239-83, Incident Reporting Timeframes.
     48 CFR 1252.239-85, Personnel Screening--Background 
Investigations.
     48 CFR 1252.239-88, Security Alerts, Advisories, and 
Directives.
     48 CFR 1252.239-89, Technology Modernization.
     48 CFR 1252.239-90, Technology Upgrades/Refreshments.
    If OMB does not approve the collections of information as 
requested, DOT will immediately remove the provisions containing a 
collection of information or take such other action as is directed by 
OMB.
    Comments on the collections of information contained in this 
proposed rule should be submitted to the Office of Management and 
Budget, Attention: Desk Officer for the Department of Transportation, 
Office of Information and Regulatory Affairs, Washington, DC 20503, 
with copies sent by mail or hand delivery to the U.S. Department of 
Transportation, Office of the Chief Information Officer, Attn: Claire 
Barrett, Room E31-312, 1200 New Jersey Avenue SE, Washington, DC 20590; 
or email to [email protected]; and email to www.regulations.gov. 
Comments should indicate that they are submitted in response to ``RIN 
2105-AE26--Streamline and Update the Department of Transportation 
Acquisition Regulation (TAR Case 2020-001).''
    OMB is required to make a decision concerning the collections of 
information contained in this proposed rule between 30 and 60 days 
after publication of this document in the Federal Register. Therefore, 
a comment to OMB is best assured of having its full effect if OMB 
receives it within 30 days of publication. This does not affect the 
deadline for the public to comment on the proposed rule.
    The Department considers comments by the public on proposed 
collections of information in--
     Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
     Evaluating the accuracy of the Department's estimate of 
the burden of the proposed collections of information, including the 
validity of the methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    TAR Part 1239 related collections of information: Individual 
summaries of collection of information, description of need for 
information and proposed use of information, along with supporting 
estimated data are described below. The total estimates related to PRA 
and information collection burden on the public for the proposed rule, 
to include the estimated burden hours, average number of respondents, 
total estimated

[[Page 69476]]

annual responses, and total estimated annual reporting and 
recordkeeping burden are provided below:
    Total estimated burden hours: 2,006.
    Estimated average number of respondents: 2,200.
    Total estimated annual responses: 2,511.
    Total estimated annual cost to all respondents (reporting and 
recordkeeping burden): $66,398.60 (2,006 hours at $33.10 per hour). The 
Bureau of Labor Statistics (BLS) gathers information on full-time wage 
and salary workers. According to the latest (May 2019) available BLS 
data, the mean hourly wage is $33.10 on BLS wage code--``15-1231 
Computer Network Support Specialists.'' This information was taken from 
the following website: https://www.bls.gov/oes/current/oes151231.htm.

Summary of Total Cost of ICR to Public

----------------------------------------------------------------------------------------------------------------
                                                 Average number   Average annual    OPM hourly     Total annual
            Clause               Burden hours         resp.            resp.           rate            cost
----------------------------------------------------------------------------------------------------------------
1252.239-70...................             422               844             844          $33.10      $13,968.20
1252.239-72...................              21                41              41           33.10          695.10
1252.239-74...................              52               104             104           33.10        1,721.20
1252.239-75...................             622               311             622           33.10       20,588.20
1252.239-76...................              54                36              36           33.10        1,787.40
1252.239-77...................              71               142             142           33.10        2,350.10
1252.239-80...................              54                36              36           33.10        1,787.40
1252.239-83...................              18                36              36           33.10          595.80
1252.239-85...................              71               142             142           33.10        2,350.10
1252.239-88...................              71               142             142           33.10        2,350.10
1252.239-89...................             440               293             293           33.10       14,564.00
1252.239-90...................             110                73              73           33.10        3,641.00
                               ---------------------------------------------------------------------------------
    Total.....................           2,006             2,200           2,511
                               ---------------------------------------------------------------------------------
        Total Cost to All       ..............  ................  ..............  ..............       66,398.60
         Respondents (Sum of
         all costs of all
         clauses).............
----------------------------------------------------------------------------------------------------------------

    The twelve clauses containing collections of information are 
described below:

1252.239-70, Security Requirements for Unclassified Information 
Technology Resources

    The collection of information contained in section 1239.106-70, 
Contract clauses, and part 1252 at proposed clause 1252.239-70, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-70, Security Requirements for 
Unclassified Information Technology Resources, as prescribed at 
1239.106-70, Contract clauses.
    Proposed revised TAR clause 1252.239-70, Security Requirements for 
Unclassified Information Technology Resources, is required in all 
solicitations and contracts for Information Technology (IT) services 
and is intended to protect DOT information and information technology 
by requiring contractors to be responsible for information technology 
security for all systems connected to a DOT network or operated by the 
contractor for DOT, regardless of location. This clause is applicable 
to all or any part of the contract that includes information technology 
resources or services in which the contractor has physical or 
electronic access to DOT information that directly supports the mission 
of DOT. DOT would use the information collection requirements to assess 
the contractor's compliance with specific Federal and DOT IT security 
requirements. The information collection requirement is necessary to 
ensure DOT information and information systems are adequately 
protected.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source.
    To comply with Public Law 113-283, Federal Information Security 
Modernization Act of 2014, DOT developed clause 1252.239-70, Security 
Requirements for Unclassified Information Technology Resources. The 
clause contains the following information collection requirements: An 
IT Security Plan within 30 days after contract award, and IT Security 
Accreditation and accompanying documents within 6 months of contract 
award to include a Final Security Plan, a Risk Assessment, a Security 
Test and Evaluation Plan, and a Disaster Recovery/Continuity of 
Operations Plan.
    Total Burden Hours: 422.
    Average Number of Respondents: 844.
    Average Annual Responses: 844.

----------------------------------------------------------------------------------------------------------------
                       x Number of responses                                                  Number of burden
Number of respondents      per respondent      x Number of minutes     / By 60 min/hour            hours
----------------------------------------------------------------------------------------------------------------
              844                      1                     30                                           422
----------------------------------------------------------------------------------------------------------------
Note: DOT has estimated the number of respondents based on identified NAICS codes reflecting previous contract
  awards averaged over the last three fiscal years--FY 2017, FY 2018, and FY 2019 where the clause may be
  required. DOT estimates that in the future for a typical contract performance period estimated of five years,
  the majority of the information collection requirements might be required in one of the years and thus
  estimates 20% of the total average of contract awards represents the potential pool of number of respondents
  who might submit an information collection requirement (ICR) response as shown below.


[[Page 69477]]


------------------------------------------------------------------------
                                                 (Respondents) Contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541511.......................................                      1,243
541512.......................................                        911
541513.......................................                        357
541519.......................................                      1,355
561621.......................................                        158
                                              --------------------------
    Total....................................                      4,220
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 4220 x 20% estimated number of annual respondents 
(based on typical five-year period of performance and ICR would be 
submitted in first year of contract) = 844.

1252.239-72, Compliance With Safeguarding DOT Sensitive Data Controls

    The collection of information contained in section 1239.7003, 
Contract clauses, and part 1252 at proposed clause 1252.239-72, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-72, Compliance with Safeguarding DOT 
Sensitive Data Controls, as prescribed at 1239.7003, Contract clauses.
    New proposed TAR clause 1252.239-72, Compliance with Safeguarding 
DOT Sensitive Data Controls, requires contractors to provide to the 
Government the submittal and approval(s) of current or previous NIST 
800-171 Variance requests and approvals.
    Clause 1252.239-72, Compliance with Safeguarding DOT Sensitive Data 
Controls, is required to implement security requirements contained in 
clause 1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting, for DOT sensitive data on Contractor information systems 
that support the performance of the contract. If the Offeror proposes 
to vary from any security requirements specified by NIST SP 800-171 in 
effect at the time the solicitation is issued or as authorized by the 
Contracting Officer, the Offeror shall submit to the Contracting 
Officer, for consideration by the DOT Chief Information Officer (CIO), 
a written explanation of--(1) Why a particular security requirement is 
not applicable; or (2) How the Contractor will use an alternative, but 
equally effective, security measure to satisfy the requirements of NIST 
SP 800-171. DOT would use the information collection requirements to 
assess the contractor's compliance with specific Federal and DOT IT 
security requirements. The information is necessary to ensure DOT 
information and information systems are adequately protected.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. To 
comply with Public Law 113-283, Federal Information Security 
Modernization Act of 2014, DOT developed clause 1252.239-72, Compliance 
with Safeguarding DOT Sensitive Data Controls.
    Total Burden Hours: 21.
    Average Number of Respondents: 41.
    Average Annual Responses: 41.

----------------------------------------------------------------------------------------------------------------
                       x Number of responses                                                  Number of burden
Number of respondents      per respondent      x Number of minutes     / By 60 min/hour            hours
----------------------------------------------------------------------------------------------------------------
               41                      1                     30                                            21
----------------------------------------------------------------------------------------------------------------


    Note:  DOT has estimated the number of respondents based on 
identified NAICS codes reflecting previous contract awards averaged 
over the last three fiscal years--FY 2017, FY 2018, and FY 2019 
where the clause may be required. DOT estimates that in the future 
for a typical contract performance period estimated of five years, 
the majority of the information collection requirements might be 
required in one of the years and thus estimates 2% of the total 
average of contract awards represents the potential pool of number 
of respondents who might submit an information collection 
requirement (ICR) response as shown below principally pertaining to 
cyber incidents.


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541199.......................................                         12
541513.......................................                        357
541618.......................................                         60
541990.......................................                        932
541110.......................................                        335
561499.......................................                         22
561621.......................................                        158
                                              --------------------------
                                                                   2,072
------------------------------------------------------------------------


[[Page 69478]]

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 2072 x 2% estimated number of annual respondents 
might submit a NIST 800-171 variance request or approval ICR = 41.

1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting

    The collection of information contained in section 1239.7003, 
Contract clauses, and part 1252 at proposed clause 1252.239-74, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-74, Safeguarding DOT Sensitive Data 
and Cyber Incident Reporting, as prescribed at 1239.7003, Contract 
clauses.
    New proposed TAR clause 1252.239-74, Safeguarding DOT Sensitive 
Data and Cyber Incident Reporting, requires contractors to provide to 
the Government--
     Submittal and approval(s) of current or previous NIST 800-
171 Variance requests and approvals, along with subcontractor reporting 
of the same;
     Cyber incident reporting and assessment; and subcontractor 
reporting of the same;
     Submittal of malicious software; and
     Submittal of media images of known information systems and 
relevant monitoring/packet capture data.
    Clause 1252.239-74, Safeguarding DOT Sensitive Data and Cyber 
Incident Reporting, requires that contractors shall provide adequate 
security on all covered contractor information systems. To provide 
adequate security, the contractor shall implement, at a minimum, 
information security protections set forth in the clause. DOT would use 
the information collection requirements to assess the contractor's 
compliance with specific Federal and DOT IT security requirements. The 
information is necessary to ensure DOT information and information 
systems are adequately protected.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. To 
comply with Public Law 113-283, Federal Information Security 
Modernization Act of 2014, DOT developed clause 1252.239-74, 
Safeguarding DOT Sensitive Data and Cyber Incident Reporting.
    Total Burden Hours: 52.
    Average Number of Respondents: 104.
    Average Annual Responses: 104.

----------------------------------------------------------------------------------------------------------------
                       x Number of responses                                                  Number of burden
Number of respondents      per respondent      x Number of minutes     / By 60 min/hour            hours
----------------------------------------------------------------------------------------------------------------
              104                      1                     30                                            52
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541199.......................................                         12
541513.......................................                        357
541618.......................................                         60
541990.......................................                        932
541110.......................................                        335
561499.......................................                         22
561621.......................................                        158
                                              --------------------------
                                                                   2,072
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 2072 x 5% estimated number of annual respondents 
might submit a NIST 800-171 variance request or approval ICR or report 
and submittal of cyber incidents and associated submittals = 104.

1252.239-75, DOT Protection of Information About Individuals, PII, and 
Privacy Risk Management Requirements

    The collection of information contained in section 1239.7104, 
Contract clause, and part 1252 at proposed clause 1252.239-75, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-75, DOT Protection of Information 
About Individuals, PII, and Privacy Risk Management Requirements, as 
prescribed at 1239.7104, Contract clause.
    New proposed TAR clause 1252.239-75, DOT Protection of Information 
About Individuals, PII, and Privacy Risk Management Requirements, 
contains the following information collection requirements from the 
public:
     Notification/reporting of non-compliance with DOT data 
protection standards with respect to Personally Identifiable 
Information (PII).
     Notification of new or unanticipated threats or hazards, 
or if existing safeguards have ceased to function.
     Execution and submittal of confidentiality agreements 
(protection of PII).
     Notification and secure return of PII to Government when 
any part of PII, in any form, the Contractor obtains from or behalf of 
DOT ceases to be required by Contractor or upon termination of 
contract, within ten (10) business days; or, at DOT's written request 
to destroy, un-install and/or remove all copies of such PII and provide 
certification that PII has been returned, or remove or destroyed; and 
subcontractor certification of return of all records within 30 days of 
subcontractor's completion of services.

[[Page 69479]]

     Breach reporting; and subcontractor breach reporting.
     Notification of subcontractor access to PII.
    Clause 1252.239-75, DOT Protection of Information About 
Individuals, PII, and Privacy Risk Management Requirements, requires 
any contractor under a DOT contract that creates, maintains, acquires, 
discloses, uses, or has access to PII in furtherance of the contract, 
to comply with all applicable Federal law, guidance, and standards and 
DOT policies pertaining to its protection. The clause requires 
contractors to comply with the Privacy Act of 1974, 5 U.S.C. 552a, DOT 
implementing regulations (49 CFR part 10), and DOT policies issued 
under the Act in the design, development, and/or operation of any 
system of records on individuals to accomplish a DOT function when the 
contract specifically identifies the work that the contractor is to 
perform. It imposes certain information collection requirements, 
reporting, and submissions as outlined above. DOT would use the 
information collection requirements to assess the contractor's 
compliance with specific Federal and DOT IT security requirements. The 
information is necessary to ensure DOT information and information 
systems are adequately protected.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source.
    To comply with Public Law 113-283, Federal Information Security 
Modernization Act of 2014, DOT developed clause 1252.239-75, DOT 
Protection of Information About Individuals, PII, and Privacy Risk 
Management Requirements.
    Total Burden Hours: 622.
    Average Number of Respondents: 311.
    Average Annual Responses: 622.

----------------------------------------------------------------------------------------------------------------
                       x Number of responses                                                  Number of burden
Number of respondents      per respondent      x Number of minutes     / By 60 min/hour            hours
----------------------------------------------------------------------------------------------------------------
              311                      2                     60                                           622
----------------------------------------------------------------------------------------------------------------


    Note:  DOT has estimated the number of respondents based on 
identified NAICS codes reflecting previous contract awards averaged 
over the last three fiscal years--FY 2017, FY 2018, and FY 2019 
where the clause may be required. DOT estimates that in the future 
for a typical contract performance period only 15% of the total 
average of contract awards represents the potential pool of number 
of respondents who might deal with PII and are required to submit an 
information collection requirement (ICR) response, as shown below.


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)          award actions  (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541199.......................................                         12
541513.......................................                        357
541618.......................................                         60
541990.......................................                        932
541110.......................................                        335
561499.......................................                         22
561621.......................................                        158
                                              --------------------------
                                                                   2,072
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 2072 x 15% estimated number of annual respondents 
might submit a ICRs under this clause = 311.

1252.239-76, Cloud Computing Services

    The collection of information contained in section 1239.7204, 
Contract clauses, and part 1252 at proposed clause 1252.239-76, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-76, Cloud Computing Services, as 
prescribed at 1239.7204, Contract clauses.
    New proposed TAR clause 1252.239-76, Cloud Computing Services, 
contains the following information collection requirements from the 
public:
     Notification of new or unanticipated threats or hazards, 
or if existing safeguards have ceased to function.
     Providing results of vendor-conducted scans or audits.
     Cyber incident reporting and assessment.
     Malicious software submittal.
     Media images of known information systems and relevant 
monitoring/packet capture data.
    Clause 1252.239-76, Cloud Computing Services, requires contractors 
to implement and maintain administrative, technical, and physical 
safeguards and controls with the security level and services required 
in accordance with DOT Order 1351.37, Departmental Cybersecurity 
Policy, and the requirements of DOT Order 1351.18, Departmental Privacy 
Risk Management Policy. It requires cyber incident reporting and 
notification of threats and hazards, and submittal of associated scans, 
malicious software, and media images.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. DOT 
would use the information collection

[[Page 69480]]

requirements to assess the contractor's compliance with specific 
Federal and DOT IT security requirements. The information is necessary 
to ensure DOT information and information systems are adequately 
protected.
    Total Burden Hours: 54.
    Average Number of Respondents: 36.
    Average Annual Responses: 36.

----------------------------------------------------------------------------------------------------------------
                       x Number of responses                                                  Number of burden
Number of respondents      per respondent      x Number of minutes     / By 60 min/hour            hours
----------------------------------------------------------------------------------------------------------------
               36                      1                     90                                            54
----------------------------------------------------------------------------------------------------------------


    Note:  DOT has estimated the number of respondents based on 
identified NAICS codes reflecting previous contract awards averaged 
over the last three fiscal years--FY 2017, FY 2018, and FY 2019 
where the clause may be required. DOT estimates that in the future 
for a typical contract performance period estimated of five years, 
the majority of the information collection requirements might be 
required in one of the years and thus estimates 5% of the total 
average of contract awards represents the potential pool of number 
of respondents who might submit an information collection 
requirement (ICR) response as shown below principally pertaining to 
cyber incidents and related reporting requirements.


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541513.......................................                        357
561621.......................................                        158
                                              --------------------------
                                                                     711
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS contract 
actions = 711 x 5% estimated number of annual respondents might submit 
an ICR or report and submittal of cyber incidents and associated 
submittals = 36.

1252.239-77, Data Jurisdiction

    The collection of information contained in section 1239.7204, 
Contract clauses, and part 1252 at proposed clause 1252.239-77, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-77, Data Jurisdiction, as prescribed 
at 1239.7204, Contract clauses.
    New proposed TAR clause 1252.239-77, Data Jurisdiction, contains 
the following information collection requirements from the public:
     Identifying all data centers that data at rest or data 
back-up resides, including primary and replicated storage.
    Clause 1252.239-77, Data Jurisdiction, requires the contactor to 
identify all data centers that the data at rest or data backup will 
reside, including primary and replicated storage. The Contractor shall 
ensure that all data centers not physically located on DOT premises 
reside within the United States, the District of Columbia, and all 
territories and possessions of the United States, unless otherwise 
authorized by the DOT CIO.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. DOT 
would use the information collection requirements to assess the 
contractor's compliance with specific Federal and DOT IT security 
requirements. The information is necessary to ensure DOT information 
and information systems are adequately protected.
    Total Burden Hours: 71.
    Average Number of Respondents: 142.
    Average Annual Responses: 142.

----------------------------------------------------------------------------------------------------------------
                       x Number of responses                                                  Number of burden
Number of respondents      per respondent      x Number of minutes     / By 60 min/hour            hours
----------------------------------------------------------------------------------------------------------------
              142                      1                     30                                            71
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541513.......................................                        357
561621.......................................                        158
                                              --------------------------
                                                                     711
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 711 x 20% estimated number of annual respondents 
might submit an ICR under the clause = 142.

[[Page 69481]]

1252.239-80, Audit Record Retention for Cloud Service Providers

    The collection of information contained in section 1239.7204, 
Contract clauses, and part 1252 at proposed clause 1252.239-80, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-80, Audit Record Retention for Cloud 
Service Providers, as prescribed at 1239.7204, Contract clauses.
    New proposed TAR clause 1252.239-80, Audit Record Retention for 
Cloud Service Providers, contains the following information collection 
requirements from the public:
     Transfer of permanent records to NARA or deletion of 
temporary records and reporting of same.
    Clause 1252.239-80, Audit Record Retention for Cloud Service 
Providers, requires contractors to support a system in accordance with 
the requirement for Federal agencies to manage their electronic records 
in accordance with 36 CFR 1236.20 and 1236.22, including but not 
limited to capabilities such as those identified in DoD STD-5015.2 V3, 
Electronic Records Management Software Applications Design Criteria 
Standard, NARA Bulletin 2008-05, July 31, 2008, Guidance concerning the 
use of email archiving applications to store email, and NARA Bulletin 
2010-05 September 08, 2010, Guidance on Managing Records in Cloud 
Computing Environments. The clause requires transfer of permanent 
records to NARA or deletion of temporary records and reporting of same.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. DOT 
would use the information collection requirements to assess the 
contractor's compliance with specific Federal and DOT IT security 
requirements. The information is necessary to ensure DOT information 
and information systems are adequately protected.
    Total Burden Hours: 54.
    Average Number of Respondents: 36.
    Average Annual Responses: 36.

 
----------------------------------------------------------------------------------------------------------------
                                               x Number of
           Number of respondents              responses per     x Number of     / by 60  min/   Number of burden
                                                respondent        minutes            hour             hours
----------------------------------------------------------------------------------------------------------------
36.........................................               1               90                                 54
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541513.......................................                        357
561621.......................................                        158
                                              --------------------------
                                                                     711
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 711 x 5% estimated number of annual respondents 
might submit an ICR under the clause = 36.

1252.239-83, Incident Reporting Timeframes

    The collection of information contained in section 1239.7204, 
Contract clauses, and part 1252 at proposed clause 1252.239-83, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-83, Incident Reporting Timeframes, 
as prescribed at 1239.7204, Contract clauses.
    New proposed TAR clause 1252.239-83, Incident Reporting Timeframes, 
contains the following information collection requirements from the 
public:
     Cyber incident reporting.
    Clause 1252.239-83, Incident Reporting Timeframes, requires 
contractors to report all computer security incidents to the DOT 
Security Operations Center (SOC) in accordance with Subpart 1239.70--
Information Security and Incident Response Reporting and provides 
specific points of contact and phone numbers to report cyber incidents.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. DOT 
would use the information collection requirements to assess the 
contractor's compliance with specific Federal and DOT IT security 
requirements. The information is necessary to ensure DOT information 
and information systems are adequately protected.
    Total Burden Hours: 18.
    Average Number of Respondents: 36.
    Average Annual Responses: 36.

----------------------------------------------------------------------------------------------------------------
                                               x Number of
           Number of respondents              responses per     x Number of      / by 60 min/   Number of burden
                                                respondent        minutes            hour             hours
----------------------------------------------------------------------------------------------------------------
36.........................................               1               30                                 18
----------------------------------------------------------------------------------------------------------------


[[Page 69482]]


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541513.......................................                        357
561621.......................................                        158
                                              --------------------------
                                                                     711
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 711 x 5% estimated number of annual respondents 
might submit an ICR under the clause = 36.

1252.239-85, Personnel Screening--Background Investigations

    The collection of information contained in section 1239.7204, 
Contract clauses, and part 1252 at proposed clause 1252.239-85, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-85, Personnel Screening--Background 
Investigations, as prescribed at 1239.7204, Contract clauses.
    New proposed TAR clause 1252.239-85, Personnel Screening--
Background Investigations, contains the following information 
collection requirements from the public:
     Furnish documentation reflecting favorable adjudication of 
background investigations.
    Clause 1252.239-85, Personnel Screening--Background Investigations, 
requires contractors provide support personnel who are U.S. persons 
maintaining a NACI clearance or greater in accordance with OMB 
memorandum M-05-24, Section C. Contractors must also furnish 
documentation reflecting favorable adjudication of background 
investigations for all personnel supporting the system.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. DOT 
would use the information collection requirements to assess the 
contractor's compliance with specific Federal and DOT IT security 
requirements. The information is necessary to ensure DOT information 
and information systems are adequately protected.
    Total Burden Hours: 71.
    Average Number of Respondents: 142.
    Average Annual Responses: 142.

----------------------------------------------------------------------------------------------------------------
                                               x Number of
           Number of respondents              responses per     x Number of      / by 60 min/   Number of burden
                                                respondent        minutes            hour             hours
----------------------------------------------------------------------------------------------------------------
142........................................               1               30                                 71
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541513.......................................                        357
561621.......................................                        158
                                              --------------------------
                                                                     711
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 711 x 20% estimated number of annual respondents 
might submit an ICR under the clause = 142.

1252.239-88, Security Alerts, Advisories, and Directives

    The collection of information contained in section 1239.7204, 
Contract clauses, and part 1252 at proposed clause 1252.239-88, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-88, Security Alerts, Advisories, and 
Directives as prescribed at 1239.7204, Contract clauses.
    New proposed TAR clause 1252.239-88, Security Alerts, Advisories, 
and Directives, contains the following information collection 
requirements from the public:
     Provide list of personnel assigned system administration, 
monitoring, and/or security responsibilities and designated to receive 
security alerts, advisories, and directives, as well as a list of those 
personnel responsible for implementation of remedial actions associated 
with them.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source. DOT 
would use the information collection requirements to assess the 
contractor's compliance with specific Federal and DOT IT security 
requirements. The information is necessary to ensure DOT

[[Page 69483]]

information and information systems are adequately protected.
    Total Burden Hours: 71.
    Average Number of Respondents: 142.
    Average Annual Responses: 142.

----------------------------------------------------------------------------------------------------------------
                                               x Number of
           Number of respondents              responses per     x Number of      / by 60 min/   Number of burden
                                                respondent        minutes            hour             hours
----------------------------------------------------------------------------------------------------------------
142........................................               1               30                                 71
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541513.......................................                        357
561621.......................................                        158
                                              --------------------------
                                                                     711
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 711 x 20% estimated number of annual respondents 
might submit an ICR under the clause = 142.

1252.239-89, Technology Modernization

    The collection of information contained in section 1239.7303, 
Contract clauses, and part 1252 at proposed clause 1252.239-89, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-89, Technology Modernization, as 
prescribed at 1239.7303, Contract clauses.
    New proposed TAR clause 1252.239-89, Technology Modernization, 
contains the following information collection requirements from the 
public:
     Submittal of price or cost proposals for modernization 
approach.
    Clause 1252.239-89, Technology Modernization, encourages the 
contractor to propose independently a modernization approach to the 
hardware, software, specifications, or other requirements of the 
contract. This modernization approach may be proposed to increase 
efficiencies (both system and process level), reduce costs, strengthen 
the cyber security posture, or for any other purpose which presents an 
advantage to the Government. The clause requires the contractor to 
submit a price or cost proposal to the Contracting Officer for 
evaluation.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source.
    To comply with Public Law 113-283, Federal Information Security 
Modernization Act of 2014, DOT developed clause 1252.239-89, Technology 
Modernization. DOT would use the information collection requirements to 
assess the contractor's proposal(s), the comparative advantages and 
disadvantages of the existing contract requirement and the proposed 
change; itemized requirements of the contract that must be changed; an 
estimate of the changes in performance and price or cost; and potential 
delivery schedule impact(s). The information is needed by the 
Government to adequately evaluate the proposals and negotiate any 
contract modification terms and conditions, to include cost or price.
    Total Burden Hours: 440.
    Average Number of Respondents: 293.
    Average Annual Responses: 293.

----------------------------------------------------------------------------------------------------------------
                                               x Number of
           Number of respondents              responses per     x Number of      / by 60 min/   Number of burden
                                                respondent        minutes            hour             hours
----------------------------------------------------------------------------------------------------------------
293........................................               1               90                                440
----------------------------------------------------------------------------------------------------------------

    Note: DOT has estimated the number of respondents based on 
identified NAICS code reflecting previous contract awards averaged over 
the last three fiscal years--FY 2017, FY 2018, and FY 2019 where the 
clause may be required. DOT estimates that in the future for a typical 
contract performance period estimated of five years, the majority of 
the information collection requirements might be required in one of the 
years and thus estimates 20% of the total average of contract awards 
represents the potential pool of number of respondents who might submit 
an information collection requirement (ICR) response as shown below.

------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541512.......................................                        911
541513.......................................                        357
                                              --------------------------
                                                                   1,464
------------------------------------------------------------------------


[[Page 69484]]

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 1,464 x 20% estimated number of annual respondents 
(based on typical five-year period of performance and ICR might be 
requested or submitted in one of the five total possible years of the 
contract) = 293.

1252.239-90, Technology Upgrades/Refreshments

    The collection of information contained in section 1239.7303, 
Contract clauses, and part 1252 at proposed clause 1252.239-90, is 
described immediately following this paragraph.

Summary of Collection of Information

    We propose the use of 1252.239-90, Technology Upgrades/
Refreshments, as prescribed at 1239.7303, Contract clauses.
    New proposed TAR clause 1252.239-90, Technology Upgrades/
Refreshments, contains the following information collection 
requirements from the public:
     Submittal of price or cost proposals for upgrade/
refreshment approach.
    Clause 1252.239-90, Technology Upgrades/Refreshments, encourages 
contractors to propose independently technology improvements to the 
hardware, software, specifications, or other requirements of the 
contract. These improvements may be proposed to save money, to improve 
performance, to save energy, to satisfy increased data processing 
requirements, or for any other purpose that presents a technological 
advantage to the Government. The clause requires the contractor to 
submit a price or cost proposal to the Contracting Officer for 
evaluation.

Description of Need for Information and Proposed Use of Information

    Under Public Law 113-283, Federal Information Security 
Modernization Act of 2014, each agency of the Federal Government must 
provide security for the information and information systems that 
support the operations and assets of the agency, including those 
provided or managed by another agency, contractor, or other source.
    To comply with Public Law 113-283, Federal Information Security 
Modernization Act of 2014, DOT developed clause 1252.239-90, Technology 
Upgrades/Refreshments. DOT would use the information collection 
requirements to assess the contractor's proposal(s), the comparative 
advantages and disadvantages of the existing contract requirement and 
the proposed change; itemized requirements of the contract that must be 
changed; an estimate of the changes in performance and price or cost; 
and potential delivery schedule impact(s). The information is needed by 
the Government to adequately evaluate the proposals and negotiate any 
contract modification terms and conditions, to include cost or price.
    Total Burden Hours: 110.
    Average Number of Respondents: 73.
    Average Annual Responses: 73.

----------------------------------------------------------------------------------------------------------------
                                               x Number of
           Number of respondents              responses per     x Number of      / by 60 min/   Number of burden
                                                respondent        minutes            hour             hours
----------------------------------------------------------------------------------------------------------------
73.........................................               1               90                                110
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                 (Respondents) contract
         NAICS code: (as shown below)           award actions (average 3
                                                          FY)
------------------------------------------------------------------------
518210.......................................                        196
541512.......................................                        911
541513.......................................                        357
                                              --------------------------
                                                                   1,464
------------------------------------------------------------------------

    Basis for estimated number of respondents: Number of NAICS code 
contract actions = 1,464 x 5% estimated number of annual respondents 
(based on typical five-year period of performance and ICR might be 
requested or submitted in one of the five total possible years of the 
contract) = 73.

Regulatory Flexibility Act

    DOE expects that the overall impact of the proposed rule would 
benefit small businesses because DOT proposes to update the TAR to, 
among other things, revise outdated information, remove extraneous 
procedural information that applies only to DOT's internal operating 
procedures, and remove policy or procedures duplicative of FAR 
requirements. Any additional costs associated with the rule, such as 
costs to implement the substantive new and revised requirements 
concerning information technology (IT) security provisions of the 
Federal Information Security Management Act of 2002 (FISMA), (Title III 
of the E-Government Act of 2002 (E-Gov Act)), can be factored into the 
contract price. On this basis, the Secretary hereby certifies that this 
proposed rule will 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, pursuant to 5 
U.S.C. 605(b), the initial and final regulatory flexibility analysis 
requirements of sections 603 and 604 do not apply.
    While on the basis of the foregoing, DOT has determined that the 
agency is not required to prepare an Initial Regulatory Flexibility 
Analysis (IRFA), DOT has prepared an IRFA that is summarized here. 
Comments are solicited from small businesses and other interested 
parties and will be considered in the development of the final rule.

Initial Regulatory Flexibility Analysis

    This Initial Regulatory Flexibility Analysis has been prepared 
consistent with 5 U.S.C. 603.
    1. Description of the reasons why the action is being taken.
    This proposed rule would amend the Transportation Acquisition 
Regulation (TAR) to implement updates to the TAR, remove extraneous 
procedural information that applies only to DOT's internal operating 
procedures, and remove policy or procedures duplicative of FAR 
requirements. The proposed rule also includes substantive new and 
revised requirements concerning information technology (IT) security 
provisions of the Federal Information Security Management Act of 2002 
(FISMA), (Title III of the E-Government Act of 2002 (E-Gov Act)). FISMA

[[Page 69485]]

requires agencies to identify and provide information security 
protections commensurate with security risks to Federal information 
collected or maintained for the agency and information systems used or 
operated on behalf of an agency by a contractor. The Federal Regulatory 
Council (FAR Council) contemplated in their previous FAR rules on IT 
that subsequent supplemental policy-making at the agency level may have 
some impact on small business entities, because FISMA requires that 
agencies establish IT security policies commensurate with agency risk 
and potential for harm and that meet certain minimum requirements. The 
impact on small entities was understood to be variable depending on the 
agency implementation. Based on a review of the potential impact on 
small business entities, DOT has determined that the requirements 
specified in the rule are inherent to successful performance on any 
Federal contract.
    2. Succinct statement of the objectives of, and legal basis for, 
the rule.
    In addition to updating the TAR to remove outdated information, 
remove extraneous procedural information that applies only to DOT's 
internal operating procedures, and to remove policy or procedures 
duplicative of FAR requirements, the rule implements the IT security 
provisions of the FISMA. Section 301 of FISMA (44 U.S.C. 3544) requires 
that contractors be held accountable to the same security standards as 
Government employees when collecting or maintaining information or 
using or operating information systems on behalf of an agency. Security 
is to be considered during all phases of the acquisition life cycle. 
FISMA requires that agencies establish IT security policies 
commensurate with agency risk and potential for harm and that meet 
certain minimum requirements. Agencies are further required, through 
the Chief Information Officer (CIO) or equivalent, to assure compliance 
with agency security policies. The law requires that contractors and 
Federal employees be subjected to the same requirements in accessing 
Federal IT systems and data.
    3. Description of and, where feasible, estimate of the number of 
small entities to which the rule will apply.
    To estimate the number of small businesses who could potentially be 
impacted by the rule, DOT identified contract award actions across key 
North American Industry Classification System (NAICS) codes that could 
be affected for three fiscal years--FY 2017, 2018, and 2019 as set 
forth in the table below. DOE focused on businesses who could be 
impacted by the proposed revisions to part 1239, Acquisition of 
Information Technology, because of the potential costs resulting from 
the associated Paperwork Reduction Act information collection burdens 
(though as noted above, DOT ultimately pays those costs as part of the 
contract).

----------------------------------------------------------------------------------------------------------------
             NAICS                  NAICS description       FY 2017    FY 2018    FY 2019     Total     Average
----------------------------------------------------------------------------------------------------------------
518210........................  Data Processing, Hosting,        172        177        238        587        196
                                 and Related Services.
541199........................  All Other Legal Services.          9         12         15         36         12
541511........................  Custom Computer                  896      1,964        870      3,730      1,243
                                 Programming Services.
541512........................  Computer Systems Design          754        942      1,036      2,732        911
                                 Services.
541513........................  Computer Facilities              385        358        329      1,072        357
                                 Management Services.
541519........................  Other Computer Related         1,270      1,440      1,355      4,065      1,355
                                 Services.
541618........................  Other Management                  86         53         40        179         60
                                 Consulting Services.
541990........................  All Other Professional,          947      1,002        848      2,797        932
                                 Scientific, and Tech.
                                 Svcs.
561110........................  Office Administrative            373        352        279      1,004        335
                                 Services.
561499........................  All Other Business                20         20         25         65         22
                                 Support Services.
561621........................  Security Systems Services        187        142        146        475        158
                                                          ------------------------------------------------------
                                   Total.................      5,099      6,462      5,181     16,742      5,581
----------------------------------------------------------------------------------------------------------------

    As shown, DOT awarded over 16,742 contracts for IT or IT-related 
services during FY 2017 through FY 2019. To estimate the number of 
small businesses potentially impacted by the rule, DOT notes that in FY 
2019, the department achieved a 37.12% goal of overall awards to all 
small business concerns across all NAICS and all operating 
administrations. Using this figure to project the potential impact to 
small business entities who may be affected by the rule, the Department 
estimates that these businesses could be awarded 10%-25% of such work, 
or up to 4,186 contracts awarded to small businesses.
    4. Description of projected reporting, recordkeeping, and other 
compliance requirements of the rule, including an estimate of the 
classes of small entities which will be subject to the requirement and 
the type of professional skills necessary for preparation of the report 
or record.
    The revised record keeping and reporting requirements and estimated 
impacts are described in the Paperwork Reduction Act (PRA) section of 
the rule.
    5. Identification, to the extent practicable, of all relevant 
Federal rules which may duplicate, overlap, or conflict with the rule.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    6. Description of any significant alternatives to the rule which 
accomplish the stated objectives of applicable statutes and which 
minimize any significant economic impact of the rule on small entities.
    DOT considered whether any other alternatives would reduce the 
impact on small businesses but concluded that the proposed rule was 
necessary for consistency with the FAR, for FISMA compliance, and to 
ensure the information security and integrity of DOT information and 
information systems.

Comments on the Economic Impacts of the Rule

    DOT has submitted a copy of the IRFA to the Chief Counsel for 
Advocacy of the Small Business Administration. DOT will consider 
comments from small entities concerning the affected TAR parts, to 
include 1239 that pertains to IT. Interested parties should cite 5 
U.S.C 601, et seq. and reference RIN 2105-AE26--Streamline and Update 
the Department of Transportation Acquisition Regulation (TAR Case 2020-
001), in comments on the certification or the IRFA presented in this 
proposed rule.

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

[[Page 69486]]

private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. DOE has determined that this proposed rule 
would have no such effect on State, local, and tribal governments or on 
the private sector. Therefore, the analytical requirements of UMRA do 
not apply.

List of Subjects in 48 CFR Chapter 12

    Government procurement, Conflict of interest, Small business, 
Labor, Copyright, Inventions and patents, Insurance, Surety bonds, 
Accounting, Government property, Warranties, Transportation.

Signing Authority

    Date Approved: October 20, 2021.
Polly E. Trottenberg,
Deputy Secretary, Department of Transportation.
    For the reasons set out in the preamble, DOT proposes to revise 48 
CFR chapter 12 to read as follows:

CHAPTER 12--DEPARTMENT OF TRANSPORTATION

SUBCHAPTER A--GENERAL
Sec.
1200 [RESERVED]
1201 Federal Acquisition Regulations System.
1202 Definitions of Words and Terms.
1203 Improper Business Practices and Personal Conflicts of Interest.
1204 Administrative and Information Matters.

SUBCHAPTER B--ACQUISITION PLANNING

1205 Publicizing Contract Actions.
1206 Competition Requirements.
1207 Acquisition Planning.
1209 Contractor Qualifications.
1211 Describing Agency Needs.
1212 Acquisition of Commercial Items.
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
1213 Simplified Acquisition Procedures.
1214 [RESERVED]
1215 Contracting by Negotiation.
1216 Types of Contracts.
1217 Special Contracting Methods.
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
1219 Small Business Programs.
1222 Application of Labor Laws to Government Acquisitions.
1223 Environment, Energy and Water Efficiency, Renewable Energy 
Technologies, Occupational Safety, and Drug-Free Workplace.
1224 Protection of Privacy and Freedom of Information.
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
1227 Patents, Data, and Copyrights.
1228 Bonds and Insurance.
1231 Contract Cost Principles and Procedures.
1232 Contract Financing.
1233 Protests, Disputes, and Appeals.
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
1234 [RESERVED]
1235 Research and Development Contracting.
1236 Construction and Architect-Engineer Contracts.
1237 Service Contracting.
1239 Acquisition of Information Technology.
1241 [RESERVED]
SUBCHAPTER G--CONTRACT MANAGEMENT
1242 Contract Administration and Audit Services.
1245 [RESERVED]
1246 Quality Assurance.
1247 Transportation.
SUBCHAPTER H--CLAUSES AND FORMS
1252 Solicitation Provisions and Contract Clauses.
1253 Forms.
1254-1299 [RESERVED]

PART 1201--FEDERAL ACQUISITION REGULATIONS SYSTEM

Sec.
Subpart 1201.1--Purpose, Authority, Issuance
1201.101 Purpose.
1201.102-70 DOT statement of guiding principles for Department of 
Transportation Acquisition System.
1201.104 Applicability.
1201.105 Issuance.
1201.105-1 Publication and code arrangement.
1201.105-2 Arrangement of regulations.
1201.105-3 Copies.
1201.106 OMB approval under the Paperwork Reduction Act.
Subpart 1201.2--Administration
1201.201 Maintenance of the FAR.
1201.201-1 The two councils.
Subpart 1201.3--Agency Acquisition Regulations
1201.301 Policy.
1201.301-70 Amendment of the Transportation Acquisition Regulation.
1201.301-71 Effective dates for Transportation Acquisition Circulars 
or TAR Notices.
1201.301-72 Transportation Acquisition Circular numbering.
1201.304 Agency control and compliance procedures.
Subpart 1201.470--Deviations From the FAR and TAR
1201.403 Individual deviations.
1201.404 Class deviations.
Subpart 1201.6--Career Development, Contracting Authority, and 
Responsibilities
1201.602 Contracting officers.
1201.602-2 Responsibilities.
1201.602-3 Ratification of unauthorized commitments.
1201.603 Selection, appointment, and termination of appointment of 
contracting officers.
1201.603-1 General.
1201.604 Contracting Officer's Representative (COR).
1201.604-70 Contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1201.1--Purpose, Authority, Issuance


1201.101  Purpose.

    The Department of Transportation (DOT), Transportation Acquisition 
Regulation (TAR), establishes uniform acquisition policies and 
procedures that implement and supplement the Federal Acquisition 
Regulation (FAR). The TAR provides regulatory or policy instruction 
when coverage is needed for DOT-specific subject matter not covered in 
the FAR. The TAR also includes policy statements that DOT considers 
important to both internal and external TAR audiences. The 
Transportation Acquisition Manual (TAM) contains internal operating 
procedures, providing supplementary guidance and instructions for 
carrying out FAR and TAR requirements.


1201.102-70   DOT statement of guiding principles for the Department of 
Transportation Acquisition System.

    (a) Vision. The TAR applies to all Department acquisitions unless 
otherwise excluded by statute. DOT strives to make its acquisition 
process effective, efficient, and transparent, and to embody fairness 
and government-wide best practices.
    (b) Mission. The TAR is a key component of DOT's acquisition 
process and is designed to provide clear and current regulatory and 
policy oversight to supplement or support implementation of the FAR.
    (c) Role of the Office of the Senior Procurement Executive. The 
Office of the Senior Procurement Executive (OSPE) applies leadership 
and best-in-industry acquisition practices to establish acquisition 
policies and procedures. The OSPE supports the DOT's mission by 
providing timely, effective, and ethical business policies, practices, 
products, innovative programs, strategies, and services.


1201.104   Applicability.

    (a) Applicable statutes, the FAR, Title 48, Chapter 1, and the TAR, 
48 CFR, Chapter 12, apply to all acquisitions within the Department 
unless otherwise specifically excluded by statute, the FAR, or the TAR.
    (b) The following order of precedence applies to resolve any 
question of

[[Page 69487]]

applicability concerning an acquisition regulation or a procedure found 
within the TAR, or the TAM which comprises the Department's internal 
operating procedures and guidance--
    (1) U.S. Statutes;
    (2) The FAR;
    (3) The TAR;
    (4) DOT Orders; and
    (5) The TAM.
    (c) The Maritime Administration may depart from the requirements of 
the FAR and TAR as authorized by 40 U.S.C. 113(e)(15), but shall adhere 
to those regulations to the maximum extent practicable. Deviations from 
the FAR or TAR requirements shall be documented according to Maritime 
Administration procedures or in each contract file, as appropriate.
    (d) The FAR, TAR, and TAM do not apply to the Federal Aviation 
Administration as provided by 49 U.S.C. 40110(d).
    (e) For purposes of the FAR, TAR, and TAM, the Office of the 
Assistant Secretary for Research and Technology shall have the same 
authority as an Operating Administration as defined in 1202.1, and the 
Assistant Secretary for Research and Technology shall have the same 
authority as a Head of the Operating Administration as defined in 
1202.1.


1201.105   Issuance.


1201.105-1   Publication and code arrangement.

    (a) The TAR is published or available in--
    (1) The Federal Register;
    (2) Cumulative form in the CFR; and
    (3) Online via the internet at https://www.acquisition.gov/tar.
    (b) The TAR is issued as chapter 12 of Title 48 of the CFR.


1201.105-2   Arrangement of regulations.

    (a) General. The TAR, which encompasses both Department and 
Operating Administration (OA)/Office of the Assistant Secretary for 
Research and Technology (OST-R)-specific guidance (see subpart 1201.3), 
conforms with the arrangement and numbering system prescribed by FAR 
1.104. Guidance that is OA-specific contains the OA's acronym directly 
after the heading.
    (b) Numbering--(1) Department-wide guidance. (i) The numbering 
illustrations at FAR 1.105-2(b) apply to the TAR.
    (ii) Coverage within the TAR is identified by the prefix ``12'' 
followed by the complete TAR citation. For example, 1201.201-1(b).
    (iii) Coverage in the TAR that supplements the FAR will use part, 
subpart, section and subsection numbers ending in ``70'' through ``89'' 
(e.g., 1201.301-70). A series of numbers beginning with ``70'' is used 
for provisions and clauses.
    (iv) Coverage in the TAR, other than that identified with a ``70'' 
or higher number, that implements the FAR uses the identical number 
sequence and caption of the FAR segment being implemented, which may be 
to the paragraph level. Paragraph numbers and letters are not always 
shown sequentially, but may be shown by the specific FAR paragraph 
implemented. For example, TAR 1201.201-1 contains only paragraph (b) 
because only this paragraph, correlated with the FAR, is implemented in 
the TAR.
    (2) Operating Administration-unique guidance. Supplementary 
material for which there is no counterpart in the FAR or TAR shall be 
identified using chapter, part, subpart, section, or subsection numbers 
of ``90'' and higher.
    (c) References and citations. The Department of Transportation 
Acquisition Regulation may be referred to as the TAR. Cross reference 
to the FAR in the TAR will be cited by ``FAR'' followed by the FAR 
numbered citation, and cross reference to the TAM in the TAR will be 
cited by ``TAM'' followed by the TAM numbered citations. References to 
specific citations within the TAR will be referenced by the numbered 
citation only, e.g., 1201.105-3.
    (3) Using the TAR coverage at 1201.105-2(b) as a typical 
illustration, reference to the--
    (i) Part would be ``TAR part 1201'' outside the TAR and ``part 
1201'' within the TAR.
    (ii) Subpart would be ``TAR subpart 1201.1'' outside the TAR and 
``subpart 1201.1'' within the TAR.
    (iii) Section would be ``TAR 1201.105'' outside the TAR and 
``1201.105'' within the TAR.
    (iv) Subsection would be ``TAR 1201.105-1'' outside the TAR and 
``1201.105-1'' within the TAR.
    (v) Paragraph would be ``TAR 1201.105-1(b)'' outside the TAR and 
``1201.105-1(b)'' within the TAR.


1201.105-3   Copies.

    (a) Copies of the TAR as published in Federal Register and as set 
forth in the CFR may be purchased from the Government Publishing Office 
(GPO), U.S. Government Online Bookstore on the internet at https://bookstore.gpo.gov/.
    (b) The TAR and Transportation Acquisition Circulars (TACs) are 
available on the internet at https://www.acquisition.gov.


1201.106   OMB approval under the Paperwork Reduction Act.

    The information collection and recordkeeping requirements contained 
in the TAR have been approved by the Office of Management and Budget 
(OMB). Details concerning any TAR related OMB approved control numbers 
are specified in the TAM.

Subpart 1201.2--Administration


1201.201   Maintenance of the FAR.


1201.201-1   The two councils.

    (b) The Senior Procurement Executive is responsible for providing a 
DOT representative to the Civilian Agency Acquisition Council (CAAC).

Subpart 1201.3--Agency Acquisition Regulations


1201.301   Policy.

    (a)(1) Acquisition regulations. (i) Department-wide acquisition 
regulations. The Department of Transportation's (DOT's) Senior 
Procurement Executive (SPE) is the individual having authority to issue 
or authorize the issuance of agency regulations that implement or 
supplement the FAR to include agency-unique policies, procedures, 
contract clauses, solicitation provisions, and forms that govern the 
contracting process. This authority is re-delegated from the Assistant 
Secretary for Administration to the SPE.
    (ii) Operating Administration (OA) acquisition regulations. OA 
supplemental acquisition regulations proposed to be inserted in the TAR 
as a TAR supplement regulation shall be reviewed and approved by the 
SPE. If approved by the SPE, the Office of the Senior Executive will 
prepare the rule for publication in the Federal Register in accordance 
with FAR 1.501. OA regulations may be more restrictive or require 
higher approval levels than those required by the TAR unless otherwise 
specified.
    (2) Acquisition procedures. The SPE issues or authorizes the 
issuance of internal agency guidance at any organizational level. DOT 
internal operating procedures are contained in the TAM. OA procedures 
necessary to implement or supplement the FAR, TAR, or TAM may be issued 
by the head of the contracting activity (HCA), who may delegate this 
authority to any organizational level deemed appropriate. OA procedures 
may be more restrictive or require higher approval levels than those 
permitted by the TAM unless otherwise specified.
    (b) The authority of the agency head under FAR 1.301(b) to 
establish

[[Page 69488]]

procedures to ensure that agency acquisition regulations are published 
for comment in the Federal Register in conformance with the procedures 
in FAR subpart 1.5 is delegated to the Office of the General Counsel, 
Assistant General Counsel for Regulation.


1201.301-70   Amendment of the Transportation Acquisition Regulation.

    (a) Changes to the TAR may be the result of recommendations from 
internal DOT personnel, other Government agencies, or the public. 
Proposed changes shall be submitted in the following format to the 
Office of the Senior Procurement Executive (OSPE), 1200 New Jersey 
Avenue SE, Washington, DC 20590 or [email protected]:
    (1) Problem. Succinctly state the problems created by current TAR 
language and describe the factual or legal reasons necessitating 
regulatory change.
    (2) Recommendation. Identify the recommended change by using the 
current language (if applicable) and striking through the proposed 
deleted words with a horizontal line. Insert proposed language in bold 
and brackets. If the change is extensive, reflect proposed deleted 
language in strikethrough and proposed new or revised language with 
complete paragraphs in bold and brackets.
    (3) Discussion. Explain why the change is necessary and how it will 
solve the problem. Address any cost or administrative impact on 
Government activities, offerors, and contractors, to include potential 
impact to small businesses. Provide any other information and 
documents, such as statutes, legal decisions, regulations, and reports, 
that may be helpful.
    (4) Point of contact. Provide a point of contact who can answer 
questions regarding the recommendation.
    (b) The TAR is maintained by the SPE through the TAR/TAM change 
process. This process consists of input from various DOT elements 
including representatives from DOT OAs specifically designated to 
formulate Departmental acquisition policies and procedures.
    (c) Transportation Acquisition Circular (TAC). TACs (see 1201.301-
72) will be used to publish the TAR throughout DOT.


1201.301-71   Effective dates for Transportation Acquisition Circulars 
(TACs).

    (a) Effective dates set forth in TACs. Unless otherwise stated in 
the body of TACs, statements to the effect that the policy or 
procedures are ``effective upon receipt,'' ``upon a specified date,'' 
or that changes set forth in the document are ``to be used upon 
receipt,'' mean that any new or revised provisions, clauses, 
procedures, or forms must be included in solicitations, contracts or 
modifications issued thereafter.
    (b) Effective dates for in-process acquisitions. Unless expressly 
directed by statute or regulation, solicitations in process or 
negotiations that are completed when a TAC is issued are not required 
to include or insert new requirements, forms, clauses, or provisions, 
as may be set forth in a TAC. However, the chief of the contracting 
office must determine that it is in the best interest of the Government 
to exclude the new information and the determination and findings must 
be included in the contract file.


1201.301-72   Transportation Acquisition Circular numbering.

    Transportation Acquisition Circulars (TACs) will be numbered 
consecutively on a fiscal year basis beginning with number ``01'' 
prefixed by the last two digits of the fiscal year (e.g., TACs 21-01 
and 21-02 indicate the first two TACs issued in fiscal year 2021).


1201.304   Agency control and compliance procedures.

    (a) DOT shall control the proliferation of acquisition regulations 
and any revisions thereto (except as noted in paragraph (b) of this 
section) by using an internal TAR change process.
    (b) Specific OA-unique regulations will not be processed through 
the TAR/TAM change process but shall be reviewed by OA legal counsel 
and submitted to the OSPE for review and approval. (See 1252.101 for 
additional instructions pertaining to provisions and clauses.)

Subpart 1201.470--Deviations from the FAR and TAR


1201.403   Individual deviations.

    The head of the contracting activity (HCA), or designee with a rank 
that is no lower than that of a Senior Executive Service (SES) 
official, may authorize individual deviations to the FAR and TAR, 
unless FAR 1.405(e) applies.


1201.404   Class deviations.

    The SPE may authorize and approve class deviations from the FAR and 
TAR, unless FAR 1.405(e) applies.

Subpart 1201.6--Career Development, Contracting Authority, and 
Responsibilities


1201.602   Contracting officers.


1201.602-2  Responsibilities.

    (d) Each DOT OA is responsible for establishing Contracting 
Officer's Representative (COR) nomination and appointment procedures 
consistent with the DOT Acquisition Workforce Career Development 
Program.


1201.602-3  Ratification of unauthorized commitments.

    (b) Policy. DOT policy requires that all procurement decisions 
shall be made only by Government officials having authority to carry 
out such acquisitions. Procurement decisions made by other than 
authorized personnel are contrary to Departmental policy and may be 
considered matters of serious misconduct on the part of the employee 
making an unauthorized commitment. Disciplinary action against an 
employee who makes an unauthorized commitment may be considered.


1201.603   Selection, appointment, and termination of appointment for 
contracting officers.


1201.603-1  General.

    Each DOT OA is responsible for appointing its contracting officers. 
Each HCA shall appoint one Chief of the Contracting Office (COCO) for 
each OA. Individuals designated as COCOs are considered contracting 
officers and shall be appointed by their respective HCA. The HCA may 
select, appoint, and terminate the appointment of contracting officers. 
The HCA may re-delegate this authority to a level no lower than that of 
the COCO.


1201.604   Contracting Officer's Representative (COR).


1201.604-70  Contract clause.

    The contracting officer shall insert the clause at 1252.201-70, 
Contracting Officer's Representative, in solicitations and contracts 
that are identified as other than firm-fixed-price, and for firm-fixed-
price solicitations and contracts when appointment of a contracting 
officer's representative is anticipated.

PART 1202--DEFINITIONS OF WORDS AND TERMS

Sec.
Subpart 1202.1--Definitions
1202.101 Definitions.
Subpart 1202.70--Abbreviations
1202.7000 General.


[[Page 69489]]


    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1202.1--Definitions


1202.101   Definitions.

    Agency Advocate for Competition means the Deputy Assistant 
Secretary for Administration.
    Agency, Federal agency or Executive agency, as used in the TAR, 
means the Department of Transportation (DOT).
    Chief Financial Officer (CFO) is the principal fiscal advisor to 
the Secretary of DOT responsible for providing leadership, advice, and 
guidance in the development, implementation, and administration of 
DOT's budget, financial management, and performance management.
    Chief Information Officer is the principal information technology 
(IT), cyber security, privacy, and records management advisor to the 
Secretary, and is the final authority on these matters within the 
Department.
    Chief of the Contracting Office (COCO) means the individual(s) 
responsible for managing the contracting office(s) within an Operating 
Administration.
    Contracting activity includes all the contracting offices within an 
Operating Administration and is the same as the term ``procuring 
activity.''
    Contracting officer means an individual authorized by virtue of 
their position or by appointment to perform the functions assigned by 
the Federal Acquisition Regulation (FAR), the Transportation 
Acquisition Regulation (TAR), and Transportation Acquisition Manual 
(TAM).
    Department of Transportation (DOT) means, when referring to the 
various suborganizations and components of DOT, all of the Operating 
Administrations, as defined in the TAR/TAM, included within DOT.
    Head of the agency or Agency head for Departmental procurement 
means the Deputy Secretary except for acquisition actions that, by the 
terms of a statute or delegation, must be done specifically by the 
Secretary of Transportation.
    Head of the contracting activity (HCA) means the individual 
responsible for managing the contracting offices within an Operating 
Administration who is a member of the Senior Executive Service except 
for the HCA within the Great Lakes St. Lawrence Seaway Development 
Corporation (GLS), which shall be an individual no lower than one level 
above the COCO. The term HCA is the same as the term Head of the 
procuring activity.
    Head of the Operating Administration (HOA) means the individual 
appointed by the President to manage the [DOT] operating 
administration.
    Operating Administration (OA) means the following components of 
DOT--
    (1) Federal Aviation Administration (FAA) (FAA) is exempt from FAR, 
TAR and TAM pursuant to the Department of Transportation and Related 
Agencies Appropriations Act, 1996, Public Law 104-50);
    (2) Federal Highway Administration (FHWA);
    (3) Federal Motor Carrier Safety Administration (FMCSA);
    (4) Federal Railroad Administration (FRA);
    (5) Federal Transit Administration (FTA);
    (6) Maritime Administration (MARAD);
    (7) National Highway Traffic Safety Administration (NHTSA);
    (8) Office of the Secretary of Transportation (OST);
    (9) Pipeline and Hazardous Materials Safety Administration (PHMSA);
    (10) Great Lakes St. Lawrence Seaway Development Corporation (GLS); 
and
    (11) Office of the Assistant Secretary for Research and Technology 
(OST-R).
    Small Business Specialist (SBS) means the individual appointed by 
each HCA to assist the Director, Office of Small and Disadvantaged 
Business Utilization in carrying out the purpose of the Small Business 
Act.
    Senior Procurement Executive (SPE) means the Director of the Office 
of the Senior Procurement Executive.

Subpart 1202.70--Abbreviations


1202.7000  General.

    The following abbreviations or acronyms may be used throughout the 
TAR and the agency's associated internal policies and procedures in the 
TAM--

CFO Chief Financial Officer
CIO Chief Information Officer
COCO Chief of the Contracting Office
COR Contracting Officer's Representative
D&F Determination and Findings
FOIA Freedom of Information Act
HCA Head of the Contracting Activity
HOA Head of the Operating Administration
J&A Justification and Approval
OA Operating Administration
OIG Office of the Inspector General
OSDBU Office of Small and Disadvantaged Business Utilization
PCR Procurement Center Representative
RFP Request for Proposal
SBA Small Business Administration
SBS Small Business Specialist
SPE Senior Procurement Executive

PART 1203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

Sec.
Subpart 1203.1--Safeguards
1203.101-3 Agency regulations.
Subpart 1203.2--Contractor Gratuities to Government Personnel
1203.203 Reporting suspected violations of the Gratuities clause.
1203.204 Treatment of violations.
Subpart 1203.3--Reports of Suspected Antitrust Violations
1203.301 General.
1203.303 Reporting suspected antitrust violations.
Subpart 1203.4--Contingent Fees
1203.405 Misrepresentations or violations of the Covenant Against 
Contingent Fees.
Subpart 1203.5--Other Improper Business Practices
1203.502-2 Subcontractor kickbacks.
Subpart 1203.7--Voiding and Rescinding Contracts
1203.703 Authority.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1203.1--Safeguards


1203.101-3  Agency regulations.

    (a) Standards of Ethical Conduct for Employees of the Executive 
Branch, 5 CFR part 2635, and the Supplemental Standards of Ethical 
Conduct for Employees of the Department of Transportation, 5 CFR part 
6001 apply to all DOT employees.

Subpart 1203.2--Contractor Gratuities to Government Personnel


1203.203   Reporting suspected violations of the Gratuities clause.

    (a) Suspected violations of the Gratuities clause shall be reported 
to the contracting officer responsible for the acquisition (or the 
Chief of the Contracting Office (COCO) if the contracting officer is 
suspected of the violation). The contracting officer (or COCO) shall 
obtain from the person reporting the violation, and any witnesses to 
the violation, the following information--
    (1) The date, time, and place of the suspected violation;
    (2) The name and title (if known) of the individual(s) involved in 
the violation; and
    (3) The details of the violation (e.g., the gratuity offered or 
intended) to

[[Page 69490]]

obtain a contract or favorable treatment under a contract.
    (b) The person reporting the violation and witnesses (if any) 
should be requested to sign and date the information certifying that 
the information furnished is true and correct. The COCO shall report 
suspected violations to the Office of the Inspector General (OIG), 1200 
New Jersey Avenue SE, Washington, DC 20590, with a copy to General 
Counsel and the OA's Chief Counsel.


1203.204  Treatment of violations.

    (a) The HCA is authorized to determine whether a Gratuities clause 
violation has occurred. If the HCA has been personally and 
substantially involved in the procurement, Government legal counsel 
advice should be sought to determine if a substitute for the HCA should 
be designated.
    (b) The COCO shall ensure that the contractor is afforded the 
hearing procedures required by FAR 3.204(b). Government legal counsel 
should be consulted regarding the appropriateness of the hearing 
procedures.
    (c) If the HCA determines that the alleged gratuities violation 
occurred during the ``conduct of an agency procurement'', the COCO 
shall consult with Government legal counsel regarding the approach for 
appropriate processing of either the Procurement Integrity Act 
violation and/or the Gratuities violation.

Subpart 1203.3--Reports of Suspected Antitrust Violations


1203.301   General.

    (b) The same procedures contained in 1203.203 shall be followed for 
suspected antitrust violations, except reports of suspected antitrust 
violations shall be coordinated with legal counsel for referral to the 
Department of Justice, if deemed appropriate.


1203.303   Reporting suspected antitrust violations.

    (b) The same procedures contained in 1203.203 shall be followed for 
suspected antitrust violations, except reports of suspected antitrust 
violations shall be coordinated with legal counsel for referral to the 
Department of Justice, if deemed appropriate.

Subpart 1203.4--Contingent Fees


1203.405   Misrepresentations or violations of the Covenant Against 
Contingent Fees.

    (a) The same procedures contained in 1203.203 shall be followed for 
reporting the attempted or actual exercise of improper influence, 
misrepresentation of a contingent fee arrangement, or other violation 
of the Covenant Against Contingent Fees (see FAR 52.203-5), except 
reports of misrepresentation or violations of the Covenant Against 
Contingent Fees shall be coordinated with legal counsel for referral to 
the Department of Justice, if deemed appropriate.

Subpart 1203.5--Other Improper Business Practices


1203.502-2   Subcontractor kickbacks.

    (g) The same procedures contained in 1203.203 shall be followed for 
reporting a violation of 41 U.S.C. chapter 87, Kickbacks.

Subpart 1203.7--Voiding and Rescinding Contracts


1203.703   Authority.

    (a) The head of the contracting activity (HCA) is authorized by the 
Secretary of Transportation to declare void and rescind contracts and 
other transactions listed in Public Law 87-849 (18 U.S.C. 218), in 
which there has been a final conviction for bribery, conflict of 
interest, or any other violation of 18 U.S.C. 201-224).
    (b) The Head of the Operating Administration (HOA) is authorized to 
make determinations, in accordance with FAR 3.703(b)(2).

Subpart 1203.9--Whistleblower Protections for Contractor Employees


1203.906   Remedies.

    (a) The HCA is authorized to make determinations and take actions 
under FAR 3.906(a).
    (b) The HCA is authorized to take actions under FAR 3.906(b).

PART 1204--ADMINISTRATIVE AND INFORMATION MATTERS

Sec.
Subpart 1204.1--Contract Execution
1204.103 Contract clause.
Subpart 1204.5--Electronic Commerce in Contracting
1204.502 Policy.
Subpart 1204.8--Government Contract Files
1204.801 General.
1204.804 Closeout of contract files.
1204.804-5 Procedures for closing out contract files.
1204.804-570 Supporting closeout documents.
Subpart 1204.9--Taxpayer Identification Number Information
1204.903 Reporting contract information to the IRS.
Subpart 1204.13--Personal Identity Verification
1204.1301 Policy.
1204.1303 Contract clause.
Subpart 1204.17--Service Contracts Inventory
1204.1703 Reporting requirements.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1204.1--Contract Execution


1204.103  Contract clause.

    The contracting officer shall insert the clause at FAR 52.204-1, 
Approval of Contract, filled in as appropriate, in solicitations and 
contracts when approval to award the resulting contract must be 
obtained from an official at a level above the contracting officer.

Subpart 1204.5--Electronic Commerce in Contracting


1204.502   Policy.

    (c) DOT's preferred policy is to use electronic signatures, records 
and communication methods in lieu of paper transactions whenever 
practicable. Before using electronic commerce, the HOA and OA shall 
ensure that the OA systems are capable of ensuring authentication and 
confidentiality commensurate with the risk of unauthorized access to or 
modification of the information.

Subpart 1204.8--Government Contract Files


1204.801  General.

    (a) The COCO is designated as the head of each office performing 
contracting and contract administration functions. The Chief Financial 
Officer (CFO) of the OA is designated as the head of the office 
performing paying functions.


1204.804   Closeout of contract files.


1204.804-5   Procedures for closing out contract files.


1204.804-570   Supporting closeout documents.

    (a) When applicable (see paragraphs (a)(1) through (4) of this 
section) and prior to contract closeout, the contracting officer shall 
obtain the listed DOT and Department of Defense (DOD) forms from the 
contractor to facilitate contract closeout. See 1253 for links to 
forms.
    (1) Form DOT F 4220.4, Contractor's Release, see FAR 52.216-7;
    (2) Form DOT F 4220.45, Contractor's Assignment of Refunds, 
Rebates, Credits and Other Amounts, FAR 52.216-7;
    (3) Form DOT F 4220.46, Cumulative Claim and Reconciliation 
Statement, see FAR 4.804-5(a)(13); and

[[Page 69491]]

    (4) Department of Defense (DD) Form 882, Report of Inventions and 
Subcontracts, see FAR 52.227-14.
    (b) The forms listed in paragraph (a) of this section are used 
primarily for the closeout of cost-reimbursement, time-and-materials, 
and labor-hour contracts. However, the forms may also be used for 
closeout of other contract types or when necessary to protect the 
Government's interest.

Subpart 1204.9--Taxpayer Identification Number Information


1204.903   Reporting contract information to the IRS.

    (a) The SPE is authorized to report certain information, including 
TIN data, to the IRS.

Subpart 1204.13--Personal Identity Verification


1204.1301   Policy.

    (a) DOT follows National Institute of Standards and Technology 
(NIST) Federal Information Processing Standards (FIPS) Publication 
(PUB) Number 201-2, Personal Identity Verification (PIV) of Federal 
Employees and Contractors, or NIST-issued successor publications, and 
OMB implementation guidance for personal identity verification, for all 
affected contractor and subcontractor personnel when contract 
performance requires contractors to have routine physical access to a 
federally-controlled facility and/or routine physical and logical 
access to a federally-controlled information system.
    (c) OAs must designate an official responsible for verifying 
contractor employees' personal identity.


1204.1303   Contract clause.

    The contracting officer shall insert the clause at 1252.204-70, 
Contractor Personnel Security and Agency Access, in solicitations and 
contracts (including task orders, if appropriate), exceeding the micro-
purchase threshold, when contract performance requires contractors to 
have routine physical access to a federally-controlled facility and/or 
routine physical and logical access to a Departmental/federally-
controlled information system.

Subpart 1204.17--Service Contracts Inventory


1204.1703   Reporting requirements.

    (b) Agency reporting responsibilities.
    (2) The OSPE is responsible for compiling and submitting the DOT 
annual inventory to OMB and for posting and publishing the inventory 
consistent with FAR 4.1703(b)(2).

PART 1205--PUBLICIZING CONTRACT ACTIONS

Sec.
Subpart 1205.1--Dissemination of Information
1205.101 Methods of disseminating information.
Subpart 1205.4--Release of Information
1205.402 General public.
1205.403 Requests from Members of Congress.
Subpart 1205.6--Publicizing Multi-Agency Use Contracts
1205.601 Governmentwide database of contracts.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1205.1--Dissemination of Information


1205.101   Methods of disseminating information.

    (a) The DOT Office of Small and Disadvantaged Business Utilization, 
1200 New Jersey Avenue SE, Washington, DC 20590 publishes a Procurement 
Forecast of planned procurements each fiscal year on their website at: 
https://www.transportation.gov/osdbu/procurement-forecast/summary/.

Subpart 1205.4--Release of Information


1205.402   General public.

    (a) Upon request, and consistent with DOT Freedom of Information 
Act rules and regulations and 1224.203, DOT will furnish the general 
public with the following information on proposed contracts and 
contract awards--
    (1) After the opening of sealed bids, names of firms that submitted 
bids; and
    (2) After contract award, the names of firms that submitted 
proposals.
    (b) DOT will process requests for other specific information in 
accordance with the DOT Freedom of Information Act rules and 
regulations and 1224.203.


1205.403   Requests from Members of Congress.

    The HCA is authorized to approve the release of certain contract 
information to Members of Congress under FAR 5.403.

Subpart 1205.6--Publicizing Multi-Agency Use Contracts


1205.601   Governmentwide database of contracts.

    (b) The OA HCA is responsible for complying with the requirements 
of FAR 5.601(b).

PART 1206--COMPETITION REQUIREMENTS

Sec.
Subpart 1206.2--Full and Open Competition After Exclusion of Sources.
1206.202 Establishing or maintaining alternative sources.
Subpart 1206.3--Other Than Full and Open Competition
1206.302 Circumstances permitting other than full and open 
competition.
1206.302-1 Only one responsible source and no other supplies or 
services will satisfy agency requirements.
1206.302-7 Public interest.
Subpart 1206.5--Advocates for Competition
1206.501 Requirement.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1206.2--Full and Open Competition After Exclusion of 
Sources


1206.202   Establishing or maintaining alternative sources.

    (a) The head of the contracting activity (HCA) is delegated 
authority to exclude a particular source from a contract action in 
order to establish or maintain an alternative source under the 
conditions listed in FAR 6.202(a).
    (b) The HCA is also delegated authority to approve a Determination 
and Findings (D&F) in support of a contract action awarded under the 
authority of FAR 6.202(a).

Subpart 1206.3--Other Than Full and Open Competition


1206.302   Circumstances permitting other than full and open 
competition.


1206.302-1   Only one responsible source and no other supplies or 
services will satisfy agency requirements.

    (b)(4) The HCA is authorized to determine that only specified makes 
and models of technical equipment and parts will satisfy the agency's 
needs under FAR 6.302-1(b)(4).


1206.302-7  Public interest.

    (a)(2) The authority under FAR 6.302-7 whereby full and open 
competition need not be provided for when determined that it is not in 
the public interest in a particular acquisition is reserved by the 
Secretary and may not be delegated. A written determination made and 
signed by the Secretary shall be included in the contract file.
    (c)(3) The contracting officer shall prepare a justification to 
support the determination under FAR 6.302-7(c)(3).

[[Page 69492]]

Subpart 1206.5--Advocates for Competition


1206.501   Requirement.

    The DOT Agency Advocate for Competition is the Deputy Assistant 
Secretary for Administration.

PART 1207--ACQUISITION PLANNING

Subpart 1207.3--Contractor Versus Government Performance
Sec.
1207.305 Solicitation provisions and contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1207.3--Contractor Versus Government Performance


1207.305   Solicitation provisions and contract clause.

    The contracting officer may insert clause 1252.237-73, Key 
Personnel, in solicitations and contracts when the acquisition is 
conducted pursuant to OMB Circular A-76 and meets the clause 
prescription requirements at 1237.110-70(b).

PART 1209--CONTRACTOR QUALIFICATIONS

Subpart 1209.4--Debarment, Suspension, and Ineligibility
Sec.
1209.400 Scope of subpart.
1209.403 Definitions.
1209.405 Effect of listing.
1209.405-1 Continuation of current contracts.
1209.405-2 Restrictions on subcontracting.
1209.406 Debarment.
1209.406-1 General.
1209.406-3 Procedures.
1209.407 Suspension.
1209.407-1 General.
1209.407-3 Procedures.
1209.470 Fact-finding procedures.
1209.471 Appeals.
Subpart 1209.5--Organizational and Consultant Conflicts of Interest
1209.507 Solicitation provisions and contract clause.
1209.507-270 Contract clauses.
Subpart 1209.6--Contractor Team Arrangements
1209.602 General.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1209.4--Debarment, Suspension, and Ineligibility


1209.400   Scope of subpart.

    This subpart provides DOT's policy and procedures for the debarment 
and suspension of contractors.


1209.403   Definitions.

    As used in this subpart--
    DOT Order 4200.5G means the DOT order or its successor establishing 
DOT's internal procedures for Suspension and Debarment, and 
Ineligibility Policies.
    Senior Accountable Official (SAO) for Suspension and Debarment 
means the Senior Procurement Executive (SPE), as delegated by the 
Secretary of DOT, for all suspensions and debarments within DOT. The 
SAO sets forth departmental standards for suspension and debarment 
policies and procedures, excluding the Office of Inspector General 
(OIG).
    Suspension and Debarment Coordinator (SDC) means the program 
manager for the Suspension and Debarment Program at each OA and Office 
of the Secretary of Transportation. The SDC advises the SDO. The SDC 
coordinates all materials for presentation to the Suspending and 
Debarring Official for proposed suspension or debarment activities, 
enters information regarding any administrative agreement into the 
Federal Awardee Performance and Integrity Information System (FAPIIS), 
and enters information regarding suspensions and debarments into 
SAM.gov.
    Suspending and Debarring Official (SDO) means the individual 
designated responsibility as authorized by the Secretary of DOT to 
impose procurement suspensions and debarments, exclusions, and other 
related matters pursuant to FAR part 9. Each OA and the Office of the 
Secretary of Transportation (OST) has separately appointed SDOs. The 
SPE serves as the SDO for OST. A list of the OA appointed SDOs is 
maintained on the OSPE website.


1209.405  Effect of listing.

    (a) The SDO is authorized to make a written determination of 
compelling reasons to solicit offers from, award contracts to, or 
consent to subcontract with contractors debarred, suspended, or 
proposed for debarment and that has an active exclusion record in the 
System for Award Management (SAM) in accordance with FAR 9.405.
    (e)(2) The SDO is authorized to make a written determination that a 
compelling reason exists to consider a bid or offer from a contractor 
whose name or company is included on the listing.
    (3) The SDO is authorized to make a written determination that a 
compelling reason exists for a contracting officer to consider 
proposals, quotations, or offers received from any listed contractor 
that have an active exclusion record in SAM, and that such proposals, 
quotations, or offers may be evaluated for award or included in the 
competitive range, and, if applicable, discussions conducted with a 
listed offeror as set forth in FAR 9.405(e)(3).


1209.405-1   Continuation of current contracts.

    (a) Notwithstanding the suspension, proposed debarment, or 
debarment of a contractor, contracting officers may continue contracts 
or subcontracts in existence at the time the contractor was suspended, 
proposed for debarment, or debarred, if authorized by the SDO and the 
SDO makes a written determination, consistent with the procedures 
described in FAR 9.405-1(a) setting forth the compelling reasons for 
continuing such contract(s) and placing order(s).
    (b) The SDO is delegated the authority on behalf of the Secretary 
of DOT to make the written determination required under FAR 9.405-1(b).


1209.405-2  Restrictions on subcontracting.

    (a) The SDO is delegated the authority on behalf of the Secretary 
of DOT to authorize contracting officers to consent to subcontracts 
with contractors debarred, suspended, or proposed for debarment as 
required by FAR 9.405-2(a).


1209.406   Debarment.


1209.406-1   General.

    (c) The OST Suspending and Debarring Official (SDO) and OA-
appointed SDO (see 1209.403) is authorized to continue business 
dealings between the agency and a contractor that is debarred or 
proposed for debarment under FAR 9.406-1(c), except under FAR 23.506(e) 
if the SDO has made a written determination of compelling reasons 
justifying the continued business dealings.
    (d)(1) The SDO's authority includes debarments from contracts for 
the purchase of Federal personal property pursuant to the Federal 
Management Regulation at 41 CFR 102-117.295 (see FAR 9.406-1(d)(1) 
through (2)).


1209.406-3   Procedures.

    Contracting officers and contracting activities shall comply with 
DOT Order 4200.5G, Suspension and Debarment, and Ineligibility 
Policies, and this subpart to include the following procedures--
    (a) Investigation and referral. Any individual may submit a 
referral to debar an individual or contractor to the cognizant SDO (the 
debarring official) (see 1209.403). The referral for debarment shall be 
supported with

[[Page 69493]]

evidence of a cause for debarment listed in FAR 9.406-2 and this 
subpart. The contracting officer shall promptly report a proposed 
debarment action directly to the SDO. Upon review by the SDO, if the 
matter involves possible criminal or fraudulent activities, the SDO 
shall also refer the matter to the DOT Office of Inspector General to 
ensure coordination of appropriate activity. The report shall contain 
the following information:
    (1) The DOT official OA code to identify the OA taking action is as 
follows: DOT (general) (DOT-OST); Federal Aviation Administration (DOT-
FAA); Federal Highway Administration (DOT-FHWA); Federal Motor Carrier 
Safety Administration (DOT-FMCSA); Federal Railroad Administration 
(DOT-FRA); Federal Transit Administration (DOT-FTA); Maritime 
Administration (DOT-MARAD); National Highway Traffic Safety 
Administration (DOT-NHTSA); Pipeline and Hazardous Materials Safety 
Administration (DOT-PHMSA); Office of the Assistant Secretary for 
Research and Technology (OST-R); and Great Lakes St. Lawrence 
Development Corporation (GLS).
    (2) Name, address and telephone number for the point of contact for 
the activity making the report;
    (3) Name and address of the contractor;
    (4) Names and addresses of the members of the board, principal 
officers, partners, owners, and managers;
    (5) Names and addresses of all known affiliates, subsidiaries, or 
parent firms, and the nature of the business relationship;
    (6) For each contract affected by the conduct being reported--
    (i) The contract number;
    (ii) Description of supplies or services;
    (iii) The amount;
    (iv) The percentage of completion;
    (v) The amount paid to the contractor;
    (vi) Whether the contract is assigned under the Assignment of 
Claims Act and, if so, to whom; and
    (vii) The amount due to the contractor.
    (7) For any other contracts outstanding with the contractor or any 
of its affiliates--
    (i) The contract number(s);
    (ii) The amount(s);
    (iii) The amounts paid to the contractor;
    (iv) Whether the contract(s) is assigned under the Assignment of 
Claims Act and, if so, to whom; and
    (v) The amount(s) due the contractor;
    (8) A complete summary of all pertinent evidence and the status of 
any legal proceedings involving the contractor;
    (9) An estimate of any damages sustained by the Government as a 
result of the contractor's action (explain how the estimate was 
calculated);
    (10) The comments and recommendations of the contracting officer 
and each higher-level contracting review authority regarding--
    (i) Whether to suspend or debar the contractor;
    (ii) Whether to apply limitations to the suspension or debarment;
    (iii) The period of any recommended debarment; and
    (iv) Whether to continue any current contracts with the contractor 
(explain why a recommendation regarding current contract is not 
included);
    (11) When appropriate, as an enclosure to the report--
    (i) A copy or extracts of each pertinent contract;
    (ii) Witness statements or affidavits;
    (iii) Copies of investigative reports;
    (iv) Certified copies of indictments, judgments, and sentencing 
actions; and
    (v) Any other appropriate exhibits or documents.
    (b) Decisionmaking process. When the SDO finds preponderance of the 
evidence for a cause for debarment, as listed in FAR 9.406-2 or this 
subpart, the contracting officer in conjunction with the SDC shall 
prepare a recommendation and draft notice of proposed debarment for the 
SDO's consideration. The contractor (and any specifically named 
affiliates) are provided an opportunity to submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment as set forth in paragraph (d).
    (c) Notice of proposal to debar. DOT shall send the notice of 
proposed debarment to the last known address of the individual or 
contractor, the individual or contractor's counsel, or agent for 
service of process, by certified mail, return receipt requested, or any 
other means that allows for confirmation of delivery to include by 
mail, to the last known street address, to the last known facsimile 
numbers, or to the last known email address. In the case of a 
contractor, DOT may send the notice of proposed debarment to the 
contractor, any partner, principal, officer, director, owner or co-
owner, or joint venture; to the contractor's identified counsel for 
purposes of administrative proceedings; or to the contractor's agent 
for the service of process. If sent by email, it shall be sent to the 
last known email addresses for all three, if known. Additionally, for 
each specifically named affiliate, the notice shall be sent to the 
affiliate itself, the affiliate's identified counsel for purposes of 
the administrative proceedings, or the affiliate's agency for service 
of process. If sent by email, it shall be sent to the last known email 
addresses for all three, if known. The SDO shall also ensure that the 
appropriate parties are listed as excluded in the System for Award 
Management (SAM) in accordance with FAR 9.404.
    (d) Debarring official's decision. If DOT does not receive a reply 
from the contractor within 30 calendar days after sending the notice of 
proposed debarment, the SDC shall prepare a recommendation in 
conjunction with the cognizant contracting officer, and refer the case 
to the SDO for a decision on whether to debar based on the information 
available. If DOT receives a reply from the contractor within 30 
calendar days after sending the notice of proposed debarment, the SDC 
in conjunction with the cognizant contracting officer shall consider 
the information in the reply before the SDC makes their recommendation 
to the SDO.
    (2) The SDO reviews submittals, case documents and acts in 
accordance with DOT Order 4200.5G and the General DOT Guidelines for 
Suspension and Debarment, paragraph 12c.
    (i) The SDO, upon the request of the contractor proposed for 
debarment, shall, as soon as practicable, allow the contractor an 
opportunity to appear before the SDO to present information or 
argument, in person or through a representative. The contractor may 
supplement the oral presentation with written information and argument. 
This information submitted by a contractor proposed for debarment is 
known as a Presentation of Matters in Opposition as set forth in DOT 
Order 4200.5G. DOT shall conduct the proceeding in an informal manner 
and without requirement for a transcript. The SDO may use flexible 
procedures to allow a contractor to present matters in opposition via 
telephone of internet. If so, the debarring official should change the 
notice in paragraph (c) to include those flexible procedures.
    (ii) If the SDO finds the contractor's or individual's submission 
in opposition to the proposed debarment raises a genuine dispute over 
facts material to the proposed debarment and the debarment action is 
not based on a conviction or civil judgment, the SDC shall submit to 
the SDO the information establishing the dispute of material facts. If 
the SDO agrees there is a genuine dispute of material facts, the SDO 
shall conduct a fact-finding proceeding or shall refer the dispute to a 
designee for resolution pursuant to

[[Page 69494]]

1209.470, Fact-finding procedures. The SDC shall provide the contractor 
or individual the disputed material fact(s).
    (iii) If the proposed debarment action is based on a conviction or 
civil judgment, or if there are no disputes over material facts, or if 
any disputes over material facts have been resolved pursuant to 
1209.470, Fact-finding procedures, the SDO shall make a decision on the 
basis of all information available including any written findings of 
fact submitted by the designated fact finder, and oral or written 
arguments presented or submitted to the SDC by the contractor.
    (e) Notice of debarring official's decision. In actions processed 
under FAR 9.406 where no suspension is in place and where a fact-
finding proceeding is not required, DOT shall make the final decision 
on the proposed debarment within 30 business days after receipt of any 
information and argument submitted by the contractor by the means of 
delivery set forth in paragraph (c) of this section, unless the SDO 
extends this period for good cause.


1209.406-4   Period of debarment.

    (b) The SDC, in conjunction with the contracting officer, may 
submit a recommendation to the SDO to extend or reduce the period of 
debarment, or amend the scope of the debarment, imposed under FAR 
9.406.


1209.407   Suspension.


1209.407-1   General.

    (b) For the purposes of FAR 9.407-1, the SDO is the suspending 
official under the Federal Management Regulation at 41 CFR 102-117.295.
    (d) The SDO is authorized to make a written determination of 
compelling reasons justifying continuing business dealings between the 
agency and a contractor that is suspended. However, in accordance with 
FAR 23.506(e), only the Secretary of Transportation may waive the 
suspension of contract payments, termination of a contract for default, 
or suspension of a contractor for actions under FAR subpart 23.5--Drug-
Free Workplace and FAR 23.506.


1209.407-3   Procedures.

    Contracting officers and contracting activities shall comply with 
DOT Order 4200.5G, Suspension and Debarment, and Ineligibility 
Policies, and this subpart to include the following procedures--
    (a) Investigation and referral. Any individual may submit a 
referral to suspend an individual or contractor to the SDC or SDO (the 
debarring official) (see 1209.403). The SDC shall promptly report, in 
writing, a proposed suspension action directly to the SDO. Upon review 
by the SDO, if the matter involves possible criminal or fraudulent 
activities, the SDO shall also refer the matter to the DOT OIG to 
ensure coordination of appropriate activity.
    (b) Decisionmaking process. When the SDC finds adequate evidence of 
a cause for suspension, as listed in FAR 9.407-2, the SDC shall prepare 
a recommendation and draft notice of suspension for the SDO's 
consideration. After receipt of the report from the SDC, the SDO may 
request from interested parties, including the contractor if deemed 
appropriate, a meeting or additional supporting information to assist 
in the suspension decision. The SDC creates a case in the DOT 
Suspension and Debarment Tracking System as set forth in DOT Order 
4200.5G. The contractor (and any specifically named affiliates) are 
provided an opportunity to submit, in person, in writing, or through a 
representative, information and argument in opposition to the proposed 
debarment as set forth in paragraph (d) of this section.
    (c) Notice of suspension. DOT shall send the notice of suspension 
to the last known address of the individual or contractor, the 
individual or contractor's counsel, or agent for service of process, by 
certified mail, return receipt requested, or any other means that 
allows for confirmation of delivery to include by mail, to the last 
known street address, to the last known facsimile numbers, or to the 
last known email address. In the case of a contractor, DOT may send the 
notice of suspension to the contractor, any partner, principal, 
officer, director, owner or co-owner, or joint venture; to the 
contractor's identified counsel for purposes of administrative 
proceedings; or to the contractor's agent for the service of process. 
If sent by email, it shall be sent to the last known email addresses 
for all three, if known. Additionally, for each specifically named 
affiliate, the notice shall be sent to the affiliate itself, the 
affiliate's identified counsel for purposes of the administrative 
proceedings, or the affiliate's agency for service of process. If sent 
by email, it shall be sent to the last known email addresses for all 
three, if known. The SDO shall also ensure that the appropriate parties 
are listed as excluded in SAM in accordance with FAR 9.404. After 
reviewing the SDC's report, and any additional information received in 
accordance with paragraph (b) of this section, the SDO shall prepare 
and coordinate with legal counsel a written notice of suspension.
    (5) The SDO, upon the request of the contractor suspended, shall, 
as soon as practicable, allow the contractor an opportunity to appear 
before the SDO to present information or argument, in person or through 
a representative. The contractor may supplement the oral presentation 
with written information and argument. DOT shall conduct the proceeding 
in an informal manner and without requirement for a transcript.
    (6)(i) If the SDC finds the contractor's or individual's submission 
in opposition to the suspension raises a genuine dispute over facts 
material to the suspension, or for the purposes of FAR 9.407-3(b)(2), 
Decision making process, in actions not based on an indictment, the SDC 
shall submit to the SDO the information establishing the dispute of 
material facts. If the SDO agrees there is a genuine dispute of 
material facts, the SDO shall conduct a fact-finding proceeding or 
refer the dispute to a designee for resolution pursuant to 1209.470, 
Fact-finding procedures. The SDC shall provide the contractor or 
individual the information that established the dispute of material 
fact(s) in advance of the fact-finding proceeding, in the event the 
contractor would like to add to the facts prior to the decision of the 
SDO.
    (ii) If the suspension is based on a conviction or civil judgment, 
or if there are no disputes over material facts, or if any disputes 
over material facts have been resolved pursuant to 1209.470, Fact-
finding procedures, the SDO shall make a decision on the basis of all 
information available including any written findings of fact submitted 
by the designated fact finder, and oral or written arguments presented 
or submitted by the contractor. The contractor may supplement the oral 
presentation with written information and argument. The proceeding will 
be conducted in an informal manner and without requirement for a 
transcript.
    (d) Suspending official's decision. The SDO shall notify the 
contractor of the decision whether to impose a suspension. The SDO 
shall then forward the original signed decision to the contracting 
officer for inclusion in the contract file. The SDO reviews submittals, 
case documents and acts in accordance with DOT Order 4200.5G and the 
General DOT Guidelines for Suspension and Debarment, paragraph 12c. The 
SDO may use flexible procedures to allow a contractor to present 
matters in opposition via telephone or internet. If so, the debarring 
official should change the notice in paragraph (c) to include those 
flexible procedures.

[[Page 69495]]

1209.470   Fact-finding procedures.

    The provisions of this section constitute the procedures to be used 
to resolve genuine disputes of material fact pursuant to 1209.406-3 and 
1209.407-3 of this part. The SDC shall establish the date for the fact-
finding hearing, normally to be held within 30 business days after 
notifying the contractor or individual that the SDO has determined a 
genuine dispute of material fact(s) exists.
    (a) The Government's representative and the contractor shall each 
have an opportunity to present evidence relevant to the genuine 
dispute(s) of material fact identified by the SDO. The contractor or 
individual may appear in person or through counsel at the fact-finding 
hearing and should address all defenses, contested facts, admissions, 
remedial actions taken, and, if a proposal to debar is involved, 
mitigating and aggravating factors. The contractor or individual may 
submit documentary evidence, present witnesses, and confront any person 
the agency presents.
    (b) Witnesses may testify in person. Witnesses will be reminded of 
the official nature of the proceedings and that any false testimony 
given is subject to criminal prosecution. Witnesses are subject to 
cross-examination. The fact-finding proceeding is an informal 
evidentiary hearing, during which the Rules of Evidence and Civil 
Procedure do not apply. Hearsay evidence may be presented and will be 
given appropriate weight by the fact-finder.
    (c) The proceedings shall be transcribed and a copy of the 
transcript shall be made available at cost to the contractor upon 
request, unless the contractor and the factfinder, by mutual agreement, 
waive the requirement for a transcript.
    (d) The fact-finder shall prepare a written finding(s) of fact for 
the record by a preponderance of the evidence for proposed debarments, 
and by adequate evidence for suspensions. A copy of the findings of 
fact shall be provided to the SDO, the Government's representative, and 
the contractor or individual. The SDO will consider the written 
findings of fact in the decision regarding the suspension or proposed 
debarment.


1209.471   Appeals.

    Based on the decision by the SDO, the respondent may elect to 
request reconsideration as provided for in paragraph (a) of this 
section. If the request for reconsideration is denied, the respondent 
may seek judicial review as provided for in paragraph (b) of this 
section.
    (a) Request for reconsideration. Upon receiving a final decision to 
debar from the SDO, a debarred individual or entity may ask the SDO to 
reconsider the debarment decision or to modify the debarment by 
reducing the time period or narrowing the scope of the debarment. This 
request must be in writing and supported with documentation.
    (b) Judicial review. A suspended or debarred individual or entity 
may seek judicial review upon denial of a request for reconsideration.

Subpart 1209.5--Organizational and Consultant Conflicts of Interest


1209.507   Solicitation provisions and contract clause.


1209.507-270   Contract clauses.

    (a) In accordance with FAR 9.507-2, the contracting officer shall 
insert a clause substantially the same as the clause at 1252.209-70, 
Organizational and Consultant Conflicts of Interest, as applicable, in 
solicitations and contracts.
    (b) In accordance with FAR 9.507-2, the contracting officer shall 
insert a clause substantially the same as the clause at 1252.209-71, 
Limitation of Future Contracting, as applicable, in solicitations and 
contracts.

Subpart 1209.6--Contractor Team Arrangements


1209.602  General.

    (c) Contracting officers shall require offerors to disclose teaming 
arrangements as a part of any offer. The teaming arrangement shall be 
evaluated as a part of overall prime contractor responsibility, as well 
as under the technical and/or management approach evaluation factor 
where applicable.

PART 1211--DESCRIBING AGENCY NEEDS

Subpart 1211.2--Using and Maintaining Requirements Documents
Sec.
1211.204 Solicitation provisions and contract clauses.
1211.204-70 Contract clauses.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1211.2--Using and Maintaining Requirements Documents


1211.204   Solicitation provisions and contract clauses.


1211.204-70   Contract clauses.

    The contracting officer shall insert the clause at 1252.211-70, 
Index for Specifications, when an index or table of contents may be 
furnished with the specification.

PART 1212--ACQUISITION OF COMMERCIAL ITEMS

Subpart 1212.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Items
Sec.
1212.301 Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1212.3--Solicitation Provisions and Contract Clauses for 
the Acquisition of Commercial Items


1212.301   Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) The following DOT provisions and clauses are authorized for use 
in acquisitions of commercial items when required by the individual 
provision or clause prescription:
    (1) 1252.201-70, Contracting Officer's Representative.
    (2) 1252.204-70, Contractor Personnel Security and Agency Access.
    (3) 1252.209-70, Organizational and Consultant Conflicts of 
Interest.
    (4) 1252.209-71, Limitation of Future Contracting.
    (5) 1252.211-70, Index for Specifications.
    (6) 1252.216-70, Evaluation of Offers Subject to an Economic Price 
Adjustment Clause.
    (7) 1252.216-71, Determination of Award Fee.
    (8) 1252.216-72, Award Fee Plan.
    (9) 1252.216-73, Distribution of Award Fee.
    (10) 1252.216-74, Settlement of Letter Contract.
    (11) 1252.222-70, Strikes or Picketing Affecting Timely Completion 
of the Contract Work.
    (12) 1252.222-71, Strikes or Picketing Affecting Access to a DOT 
Facility.
    (13) 1252.223-70, Removal or Disposal of Hazardous Substances--
Applicable Licenses and Permits.
    (14) 1252.223-71, Accident and Fire Reporting.
    (15) 1252.223-73, Seat Belt Use Policies and Programs.
    (16) 1252.232-70, Electronic Submission of Payment Requests.
    (17) 1252.237-70, Qualifications of Contractor Employees.
    (18) 1252.237-71, Certification of Data.
    (19) 1252.237-72, Prohibition on Advertising.
    (20) 1252.237-73, Key Personnel.

[[Page 69496]]

    (21) 1252.239-70, Security Requirements for Unclassified 
Information Technology Resources.
    (22) 1252.239-71, Information Technology Security Plan and 
Accreditation.
    (23) 1252.239-72, Compliance with Safeguarding DOT Sensitive Data 
Controls.
    (24) 1252.239-73, Limitations on the Use or Disclosure of Third-
Party Contractor Reported Cyber Incident Information.
    (25) 1252.239-74, Safeguarding DOT Sensitive Data and Cyber 
Incident Reporting.
    (26) 1252.239-75, DOT Protection of Information About Individuals, 
PII, and Privacy Risk Management Requirements.
    (27) 1252.239-76, Cloud Computing Services.
    (28) 1252.239-77, Data Jurisdiction.
    (29) 1252.239-78, Validated Cryptography for Secure Communications.
    (30) 1252.239-79, Authentication, Data Integrity, and Non-
Repudiation.
    (31) 1252.239-80, Audit Record Retention for Cloud Service 
Providers.
    (32) 1252.239-81, Cloud Identification and Authentication 
(Organizational Users) Multi-Factor Authentication.
    (33) 1252.239-82, Identification and Authentication (Non-
Organizational Users).
    (34) 1252.239-83, Incident Reporting Timeframes.
    (35) 1252.239-84, Media Transport.
    (36) 1252.239-85, Personnel Screening--Background Investigations.
    (37) 1252.239-86, Boundary Protection--Trusted internet 
Connections.
    (38) 1252.239-87, Protection of Information at Rest.
    (39) 1252.239-88, Security Alerts, Advisories, and Directives.
    (40) 1252.239-89, Technology Modernization.
    (41) 1252.239-90, Technology Upgrades/Refreshment.
    (42) 1252.239-91, Records Management.
    (43) 1252.239-92, Information and Communication Technology 
Accessibility Notice.
    (44) 1252.239-93, Information and Communication Technology 
Accessibility.
    (45) 1252.242-70, Dissemination of Information--Educational 
Institutions.
    (46) 1252.242-71, Contractor Testimony.
    (47) 1252.242-72, Dissemination of Contract Information.

PART 1213--SIMPLIFIED ACQUISITION PROCEDURES

Subpart 1213.70--Department of Transportation Procedures for Acquiring 
Training Services
Sec.
1213.7000 Applicability.
1213.7001 Solicitation provision and contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1213.70--Department of Transportation Procedures for 
Acquiring Training Services


1213.7000  Applicability.

    (a) DOT policy at 1237.7000 also applies to Standard Form (SF) 182, 
Request, Authorization, Agreement and Certification of Training, which 
may be used to acquire training services; however, the policy does not 
apply to training services acquired by Governmentwide commercial 
purchase card. The Governmentwide commercial purchase card may only be 
used to acquire training services valued at the micro-purchase 
threshold level or less.
    (b) As reflected in 1237.7002, this policy does not apply to 
training attended by DOT employees that is scheduled and conducted by 
Government sources of supply, educational institutions, or private 
entities where DOT does not control or sponsor the training. Examples 
of when the policy does and does not apply include:
    (1) When SF 182s are issued for three DOT employees to attend a 
one-week course at a university or other private entity, the policy 
does not apply. DOT does not control the course because the university 
or private entity has a contract in place with the training provider 
and DOT is placing an order under an existing contract; and
    (2) When DOT awards a contract to a university or other private 
entity to provide training for DOT and/or other Government personnel, 
the policy applies. DOT controls this course; therefore, no soliciting 
or advertising of private non-Government training while conducting the 
contracted-for training is permitted.


1213.7001   Solicitation provision and contract clause.

    (a) Contracting officers shall insert the provision as prescribed 
at 1252.237-71, Certification of Data, in all solicitations and 
requests for quotations, and the clause as prescribed at 1252.237-72, 
Prohibition on Advertising, in solicitations, requests for quotations, 
and all contracts (e.g., purchase orders, SF 182s) for training 
services when the content and/or presentation of the training is 
controlled by DOT.
    (b) Contracting officers shall incorporate the successful offeror's 
certified data into any resultant contract(s). Certified data may be 
adopted by reference, if the contracting officer determines it contains 
information sufficient to reliably describe the certified data 
submitted. For example, this type of information includes dated 
material such as resumes and company or personnel qualifications.

PART 1214 [RESERVED]

PART 1215--CONTRACTING BY NEGOTIATION

Subpart 1215.4--Contract Pricing
Sec.
1215.404 Proposal analysis.
1215.404-470 Payment of profit or fee.
Subpart 1215.6--Unsolicited Proposals
1215.603 General.
1215.604 Agency points of contact.
1215.606 Agency procedures.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1215.4--Contract Pricing


1215.404   Proposal analysis.


1215.404-470   Payment of profit or fee.

    The contracting officer shall not pay profit or fee on 
undefinitized contracts or undefinitized contract modifications. Any 
profit or fee earned shall be paid after the contract or modification 
is definitized.

Subpart 1215.6--Unsolicited Proposals


1215.603  General.

    DOT will not pay any costs associated with the preparation of 
unsolicited proposals. Proposals that do not meet the definition and 
applicable content and marking requirements of FAR subpart 15.6 will 
not be considered under any circumstances and will be returned to the 
submitter.


1215.604   Agency points of contact.

    (a) Unsolicited proposals should be submitted to the responsible OA 
contracting office for appropriate handling. Specific information 
concerning the mission of each DOT OA is available online at https://www.transportation.gov/. Offerors are urged to contact these 
contracting/procurement offices prior to submitting a proposal to 
ensure that the unsolicited proposal reaches the correct contracting 
office for action. This action will reduce

[[Page 69497]]

unnecessary paperwork and wasted time for both the Government and 
offerors.


1215.606   Agency procedures.

    The OA contracting office is the designated point of contact for 
receipt and handling of unsolicited proposals (see 1215.604). The 
assigned DOT contracting office will review and evaluate the proposal 
within 30 calendar days, if practicable, in accordance with FAR 15.606-
1, Receipt and initial review, to inform the offeror of the reasons for 
rejection and the proposed disposition of the unsolicited proposal.

PART 1216--TYPES OF CONTRACTS

Sec.
Subpart 1216.2--Fixed-Price Contracts
1216.203 Fixed-price contracts with economic price adjustment.
1216.203-4 Contract clauses.
1216.203-470 Solicitation provision.
Subpart 1216.4--Incentive Contracts
1216.406-70 DOT contract clauses.
Subpart 1216.5--Indefinite-Delivery Contracts
1216.505 Ordering.
Subpart 1216.6--Time-and-Materials, Labor-Hour, and Letter Contracts
1216.603 Letter contracts.
1216.603-4 Contract clauses.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1216.2--Fixed-Price Contracts


1216.203   Fixed-price contracts with economic price adjustment.


1216.203-4   Contract clauses.


1216.203-470   Solicitation provision.

    The contracting officer shall insert the provision at 1252.216-70, 
Evaluation of Offers Subject to an Economic Price Adjustment Clause, in 
solicitations containing an economic price adjustment clause.

Subpart 1216.4--Incentive Contracts


1216.406-70   DOT contract clauses.

    (a) As authorized by FAR 16.406(e), the contracting officer shall 
insert the clause at 1252.216-71, Determination of Award Fee, in all 
cost-plus-award-fee solicitations and contracts.
    (b) The contracting officer shall insert the clause at 1252.216-72, 
Award Fee Plan, in all cost-plus-award-fee solicitations and contracts.
    (c) The contracting officer shall insert the clause at 1252.216-73, 
Distribution of Award Fee, in all cost-plus-award-fee solicitations and 
contracts.

Subpart 1216.5--Indefinite-Delivery Contracts


1216.505   Ordering.

    (b)(8) Unless otherwise designated by the Head of the Operating 
Administration, the Advocate for Competition for the Operating 
Administration (OA) is designated as the OA Task and Delivery Order 
Ombudsman. If any corrective action is needed after reviewing 
complaints from contractors on task and delivery order contracts, the 
OA Ombudsman shall provide a written determination of such action to 
the contracting officer. Issues that cannot be resolved within the OA, 
shall be forwarded to the DOT Task and Delivery Order Ombudsman for 
review and resolution. The DOT Task and Delivery Order Ombudsman is 
located in the Office of the Senior Procurement Executive.

Subpart 1216.6--Time-and-Materials, Labor-Hour, and Letter 
Contracts


1216.603   Letter contracts.


1216.603-4   Contract clauses.

    The contracting officer shall insert the clause at 1252.216-74, 
Settlement of Letter Contract, in all definitized letter contracts.

PART 1217--SPECIAL CONTRACTING METHODS

Sec.
Subpart 1217.70--Fixed-Price Contracts for Vessel Repair, Alteration or 
Conversion
1217.7000 Definition.
1217.7001 Clauses.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1217.70--Fixed-Price Contracts for Vessel Repair, 
Alteration or Conversion


1217.7000   Definition.

    Lay Days means time allowed to the master of a vessel for loading 
and unloading the same.


1217.7001   Clauses.

    (a) The clause at 1252.217-70, Guarantee, shall be used where 
general guarantee provisions are deemed desirable by the contracting 
officer.
    (1) When inspection and acceptance tests will afford full 
protection to the Government in ascertaining conformance to 
specifications and the absence of defects and deficiencies, no 
guarantee clause for that purpose shall be included in the contract.
    (2) The customary guarantee period, to be inserted in the first 
sentence of the clause at 1252.217-70, Guarantee, is 60 days. In 
certain instances, it may be advisable for the contracting officer to 
include a contract clause for a guarantee period longer than 60 days. 
These instances are as follows--
    (i) If, as a result of a full inquiry, the contracting officer 
determines that there will be no increased costs as a result of a 
longer guarantee period, the contracting officer may substitute 
guarantee longer than the usual 60 days; or
    (ii) When the contracting officer's inquiry discloses that 
increased costs will result or are expected to result from a longer 
guarantee period, the contracting officer shall submit a letter to the 
Chief of the Contracting Office, requesting approval for use of 
guarantee period in excess of 60 days. The letter must contain 
sufficient facts to justify the use of a longer guarantee period. Upon 
approval, the contracting officer may insert a longer period in the 
first sentence of the clause at 1252.217-70, Guarantee.
    (b) The contracting officer shall insert the following clauses in 
solicitations and contracts for vessel repair, alteration or 
conversion:
    (1) 1252.217-71, Delivery and Shifting of Vessel.
    (2) 1252.217-72, Performance.
    (3) 1252.217-73, Inspection and Manner of Doing Work.
    (4) 1252.217-74, Subcontracts.
    (5) 1252.217-76, Liability and Insurance.
    (6) 1252.217-77, Title.
    (7) 1252.217-78, Discharge of Liens.
    (8) 1252.217-79, Delays.
    (9) 1252.217-80, Department of Labor Safety and Health Regulations 
for Ship Repair.
    (c) The contracting officer may insert the clause at 1252.217-75, 
Lay Days, in sealed bid fixed-price solicitations and contracts for 
vessel repair, alteration, or conversion which are to be performed 
within the United States, the District of Columbia, and all territories 
and possessions of the United States. The contracting officer may also 
insert the clause at 1252.217-75, Lay Days, in negotiated solicitations 
and contracts to be performed outside the United States.

PART 1219--SMALL BUSINESS PROGRAMS

Sec.
Subpart 1219.2--Policies
1219.201 General policy.
1219.201-70 Procurement goals for small business.
1219.202 Specific policies.

[[Page 69498]]

1219.202-70 Procurement Forecast.
Subpart 1219.4--Cooperation With the Small Business Administration
1219.401 General.
Subpart 1219.5--Set-Asides for Small Business
1219.501 General.
1219.502-8 Rejecting Small Business Administration recommendations.
1219.502-9 Withdrawing or modifying small business set-asides.
Subpart 1219.7--The Small Business Subcontracting Program
1219.705 Responsibilities of the contracting officer under the 
subcontracting assistance program.
1219.705-6 Postaward responsibilities of the contracting officer.
Subpart 1219.8--Contracting With The Small Business Administration (the 
8(a) Program)
1219.800 General.
1219.815 Release for non-8(a) procurement.
Subpart 1219.70 DOT Mentor-Prot[eacute]g[eacute] Program
1219.7000 General.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1219.2--Policies


1219.201  General policy.

    (c) The Director, Office of Small and Disadvantaged Business 
Utilization (OSDBU) shall be a member of the Senior Executive Service 
and appointed by the Secretary of Transportation. (15 U.S.C. 637, 644, 
and 657.)
    (d) The responsible HCA for each OA shall appoint a Small Business 
Specialist (SBS). The SBS will assist the OSDBU Director in carrying 
out the functions and duties prescribed in FAR 19.201(d). A list of DOT 
SBS is provided at OSDBU's website at: https://www.transportation.gov/osdbu/procurement-assistance/talk-dot-small-business-specialist.


1219.201-70   Procurement goals for small business.

    As required by the Small Business Act, the Secretary shall 
establish annual goals for small business participation in DOT 
contracts and subcontracts. Each contracting activity in consultation 
with the OSDBU on behalf of the Secretary shall establish annual goals 
that present, for that activity, the maximum practicable opportunity 
for small business concerns to participate in the performance of the 
activity's contracts and subcontracts.


1219.202   Specific policies.

    OSDBU is responsible for reviewing procurement strategies and 
subcontracting efforts, establishing review thresholds and making 
recommendations to further the implementation of this part. The OSDBU 
Director may waive review of certain classes of acquisitions that the 
Director identifies as providing limited or no opportunity for small 
business participation or may delegate review of such acquisitions to 
the OA Small Business Specialists.


1219.202-70   Procurement Forecast.

    The OSDBU shall prepare and maintain DOT's Procurement Forecast in 
coordination with DOT Operating Administrations. The forecast will be 
published every year on or before October 1st and can be found at 
https://www.transportation.gov/osdbu/procurement-forecast/summary. 
Contracting officers and small business specialists will work with the 
OSDBU to maintain accurate procurement forecast information.

Subpart 1219.4--Cooperation with the Small Business Administration


1219.401   General.

    (a) The OSDBU Director will be the primary point of contact with 
the U.S. Small Business Administration and facilitate the formulation 
of policies to ensure maximum practicable opportunities are available 
to small business concerns in prime and subcontracting opportunities.

Subpart 1219.5--Set-Asides for Small Business


1219.501   General.

    (a) Contracting officers shall set aside to small business concerns 
acquisitions of supplies or services that have an anticipated dollar 
value above the micro-purchase threshold but not exceeding the 
simplified acquisition threshold, as prescribed at FAR 13.003(b)(1). 
Contracting officers shall set aside proposed acquisitions exceeding 
the simplified acquisition threshold for small business concerns unless 
it is determined there is not a reasonable expectation of obtaining 
offers from two or more responsible small business concerns that are 
competitive in terms of market prices, quality, and delivery (see FAR 
19.502-2). Contracting officers will document their determination 
utilizing the DOT Form 4250.1 which will include the results of the 
market research performed, including justifications.


1219.502-8   Rejecting Small Business Administration recommendations.

    (a) If the contracting officer rejects a recommendation of the SBA 
procurement center representative, the contracting officer will 
coordinate with the OSDBU to submit a written notice to the SBA within 
5 working days of the contracting officer's receipt of the 
recommendation.


1219.502-9   Withdrawing or modifying small business set-asides.

    (a) If the contracting officer makes a determination before 
contract award that a set-aside is disadvantageous to the public 
interest, withdrawal of an individual small business set-aside shall be 
initiated by giving written notice to the small business specialist, 
the SBA procurement center representative and the OSDBU stating the 
reasons for withdrawal.
    (b) If the agency small business specialist does not agree to a 
withdrawal or modification, the case shall be referred to the COCO for 
review prior to consulting with the assigned SBA representative. The 
contracting officer shall follow the documentation requirements of FAR 
19.506(c).

Subpart 1219.7--The Small Business Subcontracting Program


1219.705   Responsibilities of the contracting officer under the 
subcontracting assistance program.


1219.705-6   Postaward responsibilities of the contracting officer.

    (f) The Office of Small and Disadvantaged Business Utilization (S-
40) is responsible for acknowledging receipt of, or rejecting, the 
Summary Subcontract Report (SSR) in the Electronic Subcontracting 
Reporting System (eSRS).

Subpart 1219.8--Contracting with the Small Business Administration 
(the 8(a) Program)


1219.800   General.

    (f) Delegated program authority. The Small Business Administration 
(SBA) and Department of Transportation (DOT), have entered into a 
Partnership Agreement (PA) delegating SBA's contract execution and 
administrative functions to DOT. Contracting officers shall follow the 
alternate procedures in this subpart, as applicable, to award 8(a) 
contracts under the PA. (See https://www.transportation.gov/sites/dot.dev/files/docs/Department%20of%20Transportation_Partnership%20Agreement.pdf.)
    (1) The SBA delegates only the authority to sign contracts on its 
behalf. Consistent with the provisions of the PA, the SBA remains the 
prime contractor on all 8(a) contracts, continues to determine 
eligibility of

[[Page 69499]]

concerns for contract award, and retains appeal rights under FAR 
19.810.
    (2) The PA sets forth the delegation of authority and establishes 
the basic procedures for expediting the award of 8(a) contract 
requirements as reflected in this subpart.
    (3) Contracts awarded under the PA may be awarded directly to the 
8(a) participant on either a sole source or competitive basis. An SBA 
signature on the contract is not required. See FAR 19.811-3 for 
contract clauses to use.


1219.815   Release for non-8(a) procurement.

    (b) Contracting officers requesting the release of a requirement 
for a non-8(a) procurement will follow procedures prescribed at FAR 
19.815 and submit requests through the DOT OSDBU Director. The OSDBU 
Director will submit the request to SBA's Associate Administrator for 
Business Development for consideration.

Subpart 1219.70 DOT Mentor-Prot[eacute]g[eacute] Program


1219.7000   General.

    (a) The Small Business Administration provides general oversight to 
federal mentor-prot[eacute]g[eacute] programs. However, DOT has its own 
program tailored to assist small business concerns in the 
transportation industry to enhance their capability to compete for 
federal procurement opportunities. The program is administered by the 
DOT Office of Small and Disadvantaged Business Utilization (OSDBU) at 
https://www.transportation.gov/osdbu.
    (b) Small business concerns and large DOT prime contractors are 
encouraged to participate in the Department's Mentor-
Prot[eacute]g[eacute] Program. Mentor firms provide eligible small 
business Prot[eacute]g[eacute] firms with developmental assistance to 
enhance their business capabilities and ability to obtain Federal 
contracts.
    (c) Mentor firms are eligible small businesses and large DOT prime 
contractors or other socioeconomic firms capable of providing 
developmental assistance. Prot[eacute]g[eacute] firms are small 
businesses as defined in 13 CFR part 121.
    (d) Developmental assistance is technical, managerial, financial, 
and other mutually beneficial assistance that assists 
Prot[eacute]g[eacute] firms. The costs for developmental assistance 
will not be reimbursed to the Mentor firm.
    (e) Mentor and Prot[eacute]g[eacute] firms shall submit an 
evaluation of the overall experience in the program to OSDBU at the 
conclusion of the agreement or the voluntary withdrawal by either party 
from the program, whichever occurs first. At the end of each year, the 
Mentor and Prot[eacute]g[eacute] firms will submit a report regarding 
program accomplishments under their agreement.
    (f) Mentor or Prot[eacute]g[eacute] firms shall notify OSDBU in 
writing, at least 30 calendar days in advance of the effective date of 
the firm's withdrawal from the program.

PART 1222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Subpart 1222.1--Basic Labor Policies
Sec.
1222.101 Labor relations.
1222.101-70 Admittance of union representatives to DOT 
installations.
1222.101-71 Contract clauses.
Subpart 1222.8--Equal Employment Opportunity
1222.808 Complaints.
1222.810-70 Contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1222.1--Basic Labor Policies


1222.101   Labor relations.


1222.101-70   Admittance of union representatives to DOT installations.

    (a) It is DOT policy to admit labor union representatives of 
contractor employees to DOT installations to visit work sites and 
transact labor union business with contractors, their employees, or 
union stewards pursuant to existing union collective bargaining 
agreements. Their presence shall not interfere with the contractor's 
work progress under a DOT contract, nor violate the safety or security 
regulations that may be applicable to persons visiting the 
installation. The union representatives will not be permitted to 
conduct meetings, collect union dues, or make speeches concerning union 
matters while visiting a work site.
    (b) Whenever a union representative is denied entry to a work site, 
the person denying entry shall make a written report to the labor 
advisor for the applicable Operating Administration or to the DOT labor 
coordinator, the Office of the General Counsel, Office of General Law, 
within the Office of the Secretary of Transportation, within two 
working days after the request for entry is denied. The report shall 
include the reason(s) for the denial, the name of the representative 
denied entry, the union affiliation and number, and the name and title 
of the person that denied the entry.


1222.101-71   Contract clauses.

    (a) When applicable, the contracting officer may insert the clause 
at 1252.222-70, Strikes or Picketing Affecting Timely Completion of the 
Contract Work, in solicitations and contracts.
    (b) When applicable, the contracting officer may insert the clause 
at 1252.222-71, Strikes or Picketing Affecting Access to a DOT 
Facility, in solicitations and contracts.

Subpart 1222.8--Equal Employment Opportunity


1222.808   Complaints.

    Contractors shall, in good faith, cooperate with the Department of 
Transportation in investigations of Equal Employment Opportunity (EEO) 
complaints processed pursuant to 29 CFR part 1614 and in accordance 
with clause 1252.222-72 as prescribed in this subpart.


1222.810-70   Contract clause.

    The contracting officer shall insert the clause at 1252.222-72, 
Contractor Cooperation in Equal Employment Opportunity and Anti-
Harassment Investigations, in solicitations, contracts, and orders that 
include the clause at FAR 52.222-26, Equal Opportunity.

PART 1223--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE 
ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

Subpart 1223.3--Hazardous Material Identification and Material 
Safety Data

Sec.
1223.303 Contract clause.

Subpart 1223.70--Safety Requirements for Selected Dot Contracts

1223.7000 Contract clauses.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

PART 1223--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE 
ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

Subpart 1223.3--Hazardous Material Identification and Material 
Safety Data


1223.303   Contract clause.

    The contracting officer shall insert the clause at 1252.223-70, 
Removal or Disposal of Hazardous Substances--Applicable Licenses and 
Permits, in solicitations and contracts involving the

[[Page 69500]]

removal or disposal of hazardous waste material.

Subpart 1223.70--Safety Requirements for Selected DOT Contracts


1223.7000   Contract clauses.

    (a) Where all or part of a contract will be performed on 
Government-owned or leased property, the contracting officer shall 
insert the clause at 1252.223-71, Accident and Fire Reporting.
    (b) For all solicitations and contracts under which human test 
subjects will be utilized, the contracting officer shall insert the 
clause at 1252.223-72, Protection of Human Subjects. Contractors can 
request copies of applicable Operating Administration (OA)-specific 
policies regarding the protection of human subjects directly from 
contracting officers.
    (c) The contracting officer shall insert the clause at 1252.223-73, 
Seat Belt Use Policies and Programs, in all solicitations and 
contracts, exceeding the simplified acquisition threshold.

PART 1224--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Subpart 1224.1--Protection of Individual Privacy
Sec.
1224.102-70 General.
1224.103 Procedures.
Subpart 1224.2--Freedom of Information Act
1224.203 Policy.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1224.1--Protection of Individual Privacy


1224.102-70   General.

    (a) Records maintained in a Privacy Act system of records shall not 
be released except by the Government or at the Government's direction 
regardless of whether the Government or a contractor acting on behalf 
of the Government is maintaining the records. Examples of systems of 
records are:
    (1) Personnel, payroll and background records about any officer or 
employee of DOT, or other person, including his or her residential 
address;
    (2) Medical histories and medical records concerning individuals, 
including applications for licenses; and
    (3) Any other record containing information about an individual 
which includes that individual's name or other personal identifier.
    (b) Examples of records to which the Privacy Act does not apply 
are:
    (1) Records that are maintained by a contractor on individuals 
employed by the contractor in the process of providing goods and 
services to the Federal government; and
    (2) Student records generated in connection with the student's 
attendance (e.g., admission forms, grade reports) at an educational 
institution contracted by the agency to provide training to students. 
These records must be similar to those maintained on other students and 
must not be commingled with records of other students.


1224.103   Procedures.

    DOT rules and regulations implementing the Privacy Act of 1974 are 
located at 49 CFR part 10.

Subpart 1224.2--Freedom of Information Act


1224.203  Policy.

    DOT rules and regulations implementing the Freedom of Information 
Act (FOIA) and the names and addresses of the OA FOIA offices are 
located in 49 CFR part 7. The DOT FOIA website can be found at https://www.transportation.gov/foia. Specific contract award information shall 
be requested from the FOIA office of the OA making the contract award.

PART 1227--PATENTS, DATA, AND COPYRIGHTS

Sec.
Subpart 1227.3--Patent Rights under Government Contracts
1227.304 Procedures.
1227.304-4 Appeals.
1227.305 Administration of patent rights clauses.
1227.305-4 Protection of invention disclosures.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1227.3--Patent Rights under Government Contracts


1227.304   Procedures.


1227.304-4   Appeals.

    (b) Contractors may appeal agency actions listed at FAR 27.304-
4(a)(1) and (a)(3) through (a)(4) to the cognizant Head of the 
Contracting Activity (HCA). Contracting officers shall coordinate 
actions under this section with the legal counsel of the responsible 
office. The following procedures apply:
    (1) Actions must be appealed within 30 days of receipt of the 
written statement issued by DOT required by FAR 27.304-4(a). The 
contractor must present all pertinent arguments in the appeal along 
with documentary evidence, if any.
    (2) The HCA shall issue a determination within 45 days from the 
date the contractor's appeal is received.
    (c) Contractor appeal of decisions rendered under FAR 27.304-
4(a)(2) are subject to the following requirements:
    (1) Actions must be appealed within 30 days of receipt of the 
written statement required by FAR 27.304-4(a). The contractor must 
present all pertinent arguments in the appeal along with documentary 
evidence, if any.
    (2) The HCA may hold an informal hearing if deemed appropriate or 
at the request of the contractor. The informal hearing shall be held 
after all fact-finding is completed.
    (i) If a hearing is held, DOT shall provide for a transcribed 
record of the hearing unless transcription is waived as provided for in 
paragraph (ii). A copy of the transcript shall be available to the 
contractor at cost.
    (ii) Transcription of the hearing may be waived by agreement of the 
parties.
    (3) The HCA shall designate an impartial fact-finding official. The 
official conducting the fact-finding shall prepare findings of fact and 
transmit them to the HCA promptly after the conclusion of the fact-
finding proceeding along with a recommended determination.
    (i) A copy of the findings of fact shall be sent to the contractor 
(assignee or exclusive licensee) by mail, to the last known street 
address, the last known facsimile number, or the last known email 
address and to the contractor's identified counsel. The contractor 
(assignee or exclusive licensee) and agency representatives will be 
given 30 days to submit written arguments to the HCA; and, upon request 
by the contractor oral arguments will be held before the HCA as part of 
an informal hearing. The HCA will make the final determination as to 
whether the initial agency action was appropriate under the relevant 
laws and procedures (see 1227.304-4(c)).
    (ii) Any portion of the informal hearing that involves testimony or 
evidence shall be closed to the public. Agencies shall not disclose any 
such information obtained during the appeal to persons outside the 
government except when such release is authorized by the contractor 
(assignee or licensee).
    (4) The HCA's final determination shall be based on the findings of 
facts, together with any other information and written or oral 
arguments submitted by the contractor (assignee or exclusive licensee) 
and agency representatives, and any other information in the 
administrative record. The HCA may

[[Page 69501]]

reject only those facts that have been found clearly erroneous and must 
explicitly state the rejection and the basis for the contrary finding. 
The HCA shall provide the contractor (assignee or exclusive licensee) a 
written determination by certified or registered mail no later than 90 
days after fact-finding is completed or no later than 90 days after 
oral arguments, whichever is later.


1227.305   Administration of patent rights clauses.


1227.305-4   Protection of invention disclosures.

    Solicitations and contracts that include a patent rights clause 
must provide the contractor the means to report inventions made during 
contract performance and at contract completion. This requirement may 
be fulfilled by requiring the contractor to submit a Department of 
Defense DD Form 882, Report of Inventions and Subcontracts.

PART 1228--BONDS AND INSURANCE

Sec.
Subpart 1228.1--Bonds and Other Financial Protections
1228.106 Administration.
1228.106-470 Contract clause-notification of payment bond 
protection.
1228.106-6 Furnishing information.
1228.106-70 Execution and administration of bonds.
1228.106-71 Performance and payment bonds for certain contracts.
1228.106-7100 Waiver.
1228.106-7101 Exception.
Subpart 1228.3--Insurance
1228.306 Insurance under fixed-price contracts.
1228.306-70 Contracts for lease of aircraft.
1228.307-1 Group insurance plans.
1228.311-1 Contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1228.1--Bonds and Other Financial Protections


1228.106   Administration.


1228.106-470   Contract clause-notification of payment bond protection.

    The contracting officer must insert the clause at 1252.228-74, 
Notification of Payment Bond Protection, in solicitations and contracts 
when payment bonds are required.


1228.106-6   Furnishing information.

    (c) When furnishing a copy of a payment bond and contract in 
accordance with FAR 28.106-6(b), the requirement for a copy of the 
contract may be satisfied by furnishing a pdf of the contract's first 
pages which show the contract number and date, the contractor's name 
and signature, the contracting officer's signature, and the description 
of the contract work. The contracting officer furnishing the copies 
shall place the statement ``Certified to be a true and correct copy'' 
followed by his/her signature, title and name of the Operating 
Administration using an authenticated electronic signature. The fee for 
furnishing the requested certified copies shall be determined in 
accordance with the DOT Freedom of Information Act regulation, 49 CFR 
part 7, and 1224.203.


1228.106-70   Execution and administration of bonds.

    (a) The contracting officer shall notify the surety within 30 days 
of the contractor's failure to perform in accordance with the terms of 
the contract.
    (b) When a partnership is a principal on a bond, the names of all 
the members of the firm shall be listed in the bond following the name 
of the firm, and the phrase ``a partnership composed of.'' If a 
principal is a corporation, the state of incorporation must also appear 
on the bond.
    (c) Performance or payment bond(s), other than an annual bond, 
shall not predate the contract to which it pertains.
    (d) Bonds may be filed with the original contract to which they 
apply, or all bonds can be separately maintained and reviewed quarterly 
for validity. If separately maintained, each contract file shall cross-
reference the applicable bonds.


1228.106-71   Performance and payment bonds for certain contracts.


1228.106-7100   Waiver.

    (a) Pursuant to the authority vested in the Secretary of 
Transportation by the Bond statute at 40 U.S.C. chapter 31, subchapter 
III, Bonds (historically known as the Miller Act), the requirements of 
40 U.S.C. 3131 et seq. are waived, to the extent authorized in 
accordance with 40 U.S.C. 3134(b).


1228.106-7101   Exception.

    A performance and payment bond for the contracts described under 
1228.106-7100(a) may be advantageous in view of unusual circumstances 
arising in connection with such contracts. Requests for the authority 
to include the requirement for either a performance or payment bond, or 
both in the contracts described under 1228.106-7100(a) shall be 
submitted by the contracting officer to the HCA, before a solicitation 
is issued.

Subpart 1228.3--Insurance


1228.306   Insurance under fixed-price contracts.


1228.306-70   Contracts for lease of aircraft.

    (a) The contracting officer shall insert the clauses at 1252.228-
70, Loss of or Damage to Leased Aircraft; 1252.228-71, Fair Market 
Value of Aircraft; and 1252.228-72, Risk and Indemnities, unless 
otherwise indicated by the specific instructions for their use, in any 
contract for the lease of aircraft (including aircraft used in out-
service flight training), except in the following circumstances--
    (1) When the hourly rental rate does not exceed $250 and the total 
rental cost for any single transaction is not in excess of $2,500;
    (2) When the cost of hull insurance does not exceed 10 percent of 
the contract rate; or
    (3) When the lessor's insurer does not grant a credit for uninsured 
hours, thereby preventing the lessor from granting the same to the 
Government.
    (b) As codified, 49 U.S.C. 44112, as amended, provides that an 
aircraft lessor under a lease of 30 days or more is not liable for 
injury or death of persons, or damage or loss of property, unless the 
aircraft is in the actual possession or control of the lessor and the 
damage occurs because of--
    (1) The aircraft, engine, or propeller; or
    (2) The flight of, or an object falling from, the aircraft, engine, 
or propeller.
    (c) On short-term or intermittent-use leases, however, the owner 
may be liable for damage caused by operation of the aircraft. It is 
usual for the aircraft owner to retain insurance covering this 
liability during the term of such lease. Such insurance can, often for 
little or no increase in premium, be made to cover the Government's 
exposure to liability as well. To take advantage of this coverage, the 
Risks and Indemnities clause at 1252.228-72, prescribed in paragraph 
(d) of this section, shall be used.
    (d) The contracting officer shall insert the clause at 1252.228-72, 
Risk and Indemnities, in any contract for out-service flight training 
or for the lease of aircraft when the Government will have exclusive 
use of the aircraft for a period of less than thirty days.
    (e) During the performance of a contract for out-service flight 
training for DOT, whether the instruction to DOT personnel is in 
leased, contractor-provided, or Government-provided aircraft, 
contractor personnel shall always, during the entirety of the course

[[Page 69502]]

of training and operation of the aircraft, remain in command of the 
aircraft. At no time shall Government personnel or other personnel be 
permitted to take command of the aircraft. The contracting officer 
shall insert the clause at 1252.228-73, Command of Aircraft, in any 
solicitation and contract for out-service flight training, whether 
performed utilizing DOT-leased aircraft, contractor-provided aircraft, 
or Government-provided aircraft.


1228.307-1   Group insurance plans.

    (a) Prior approval requirements. Contractors shall provide plans 
required by FAR 28.307-1(a) to the contracting officer for approval.


1228.311-1   Contract clause.

    The contracting officer shall insert the clause at FAR 52.228-7, 
Insurance Liability to Third Persons, as prescribed in FAR 28.311-1 
unless it is waived by an official one level above the contracting 
officer.

PART 1231--CONTRACT COST PRINCIPLES AND PROCEDURES

Sec.
Subpart 1231.2--Contracts with Commercial Organizations
1231.205 Selected costs.
1231.205-3270 Precontract costs--incurrence of costs.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1231.2--Contracts With Commercial Organizations


1231.205   Selected costs.


1231.205-3270   Precontract costs--incurrence of costs.

    (a) The decision to incur precontract costs is the responsibility 
of the contractor. DOT officials shall not authorize, demand, or 
require a contractor to incur precontract costs. The contracting 
officer may advise the prospective contractor that any costs incurred 
before contract award are at the contractor's sole risk and that if 
negotiations fail to result in a binding contract, payment of these 
costs may not be made by the Government.
    (b) When the contracting officer determines that incurring 
precontract costs was necessary to meet the proposed contract delivery 
schedule of a cost-reimbursement contract, the clause at 1252.231-70, 
Date of Incurrence of Costs, may be inserted in the resultant contract.

PART 1232--CONTRACT FINANCING

Subpart 1232.7--Contract Funding
Sec.
1232.770 Incremental funding during a Continuing Resolution.
1232.770-1 Scope of section.
1232.770-2 Definition.
1232.770-3 General.
1232.770-4 Policy.
1232.770-5 Limitations.
1232.770-6 Procedures.
1232.770-7 Clause.
Subpart 1232.9--Prompt Payment
1232.905-70 Payment documentation and process--form of invoice.
Subpart 1232.70--Electronic Invoicing Requirements
1232.7000 Scope of subpart.
1232.7001 Definition.
1232.7002 Electronic payment requests--invoices.
1232.7003 Payment system registration.
1232.7003-1 Electronic authentication.
1232.7004 Waivers.
1232.7005 Contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1232.7--Contract Funding


1232.770   Incremental funding during a Continuing Resolution.


1232.770-1   Scope of section.

    This section provides policy and procedures for using incremental 
funding for fixed-price, time-and-material and labor-hour contracts 
during a period in which funds are provided to the DOT and its 
operating administrations, under a continuing resolution. Heads of the 
contracting activities may develop necessary supplemental internal 
procedures and guidance to advise offerors and contractors of these 
policies and procedures.


1232.770-2   Definition.

    Continuing Resolution (CR) means an appropriation, in the form of a 
joint resolution, that provides budget authority for federal agencies, 
specific activities, or both to continue operation until the regular 
appropriations are enacted. Typically, a continuing resolution is used 
when legislative action on appropriations is not completed by the 
beginning of a fiscal year.


1232.770-3   General.

    The Anti-Deficiency Act, 31 U.S.C. 1341, and FAR 32.702, state that 
no officer or employee of the Government may create or authorize an 
obligation in excess of the funds available, or in advance of 
appropriations unless otherwise authorized by law. A CR provides 
funding for continuing projects or activities that were conducted in 
the prior fiscal year for which appropriations, funds, or other 
authority was previously made available. Each CR is governed by the 
specific terms in that specific CR (e.g., duration of the CR) and under 
certain CRs, the funding amounts available for award of some contract 
actions are inadequate to fund the entire amounts needed.


1232.770-4   Policy.

    (a) A fixed-price, time-and-materials or labor-hour contract or 
order for commercial or non-commercial severable services may be 
incrementally funded when--
    (1) Funds are provided to DOT or operating administration under a 
CR. This includes funds appropriated to DOT, an operating 
administration, funds appropriated to another entity that will be 
directly obligated on a DOT contract, and funds in a revolving fund or 
similar account that will be reimbursed by a customer agency funded by 
a CR;
    (2) The responsible fiscal authority has not allocated sufficient 
funds to fully fund the contract action that is otherwise authorized to 
be issued;
    (3) There is no statutory restriction that would preclude the 
proposed use of funds;
    (4) Funds are available and unexpired, as of the date the funds are 
obligated;
    (5) Assurance is provided by the responsible financial authority 
that full funding is anticipated once an Appropriations Act is enacted; 
and
    (6) The clause prescribed by 1232.770-7 is incorporated into the 
contract or order.
    (b) Incremental funding may be limited to individual line item(s) 
or a particular order(s).


1232.770-5   Limitations.

    This policy does not apply to contract actions using funds that are 
not covered by the CR.


1232.770-6   Procedures.

    (a) An incrementally funded fixed-price, time-and-materials or 
labor-hour contract shall be fully funded once funds are available.
    (b) The contracting officer shall ensure that sufficient funds are 
allotted to the contract to cover the total amount payable to the 
contractor in the event of termination for convenience by the 
Government.
    (c) Upon receipt of the contractor's notice under paragraph (c) of 
the clause at 1252.232-71, Limitation of Government's Obligation, the 
contracting officer shall promptly

[[Page 69503]]

provide written notice to the contractor that the Government is--
    (i) Obligating additional funds for continued performance and 
increasing the Government's limitation of obligation in a specified 
amount;
    (ii) Obligating the full amount of funds needed;
    (iii) Terminating for convenience, as applicable, the affected line 
items or contract; or
    (iv) Considering whether to allot additional funds; and
    (A) The contractor is entitled by the contract terms to stop work 
when the Government's limitation of obligation is reached; and
    (B) Any costs expended beyond the Government's limitation of 
obligation are at the contractor's risk.
    (d) Upon learning that the contract will receive no further funds 
by the date provided in the notice under paragraph (c) of the clause at 
1252.232-71, Limitation of Government's Obligation, the contracting 
officer shall promptly give the contractor written notice of the 
Government's decision and terminate the affected line items or 
contract, as applicable, for the convenience of the Government.


1232.770-7   Clause.

    (a) The contracting officer shall insert the clause at 1252.232-71, 
Limitation of Government's Obligation, in--
    (1) Solicitations and contracts for severable services when 
incremental funding of a fixed-price, time-and-material or labor-hour 
contract due to a CR is anticipated; or
    (2) Contracts or orders for severable services when incremental 
funding of a fixed-price, time-and-material or labor-hour contract is 
authorized and DOT or its operating administrations are operating under 
a CR (see 1232.770-4).
    (b) The contracting officer shall insert the information required 
in paragraphs (a) and (c) of clause 1252.232-71. Contracting officers 
are authorized, in appropriate cases, to revise paragraph (a) of clause 
1252.232-71 to specify the work required under the contract, in lieu of 
using contract line item numbers, as well as revise paragraph (c) of 
the clause to specify a different notification period and percentage. 
The 30-day period may be varied up to 90 days, and the 75 percent can 
be varied from 75 up to 85 percent.

Subpart 1232.9--Prompt Payment


1232.905-70   Payment documentation and process--form of invoice.

    (a) Under fixed-price contracts, the contracting officer shall 
require the contractor to submit an invoice or voucher on any form or 
format meeting FAR 32.905(b) requirements.
    (b) Under other than fixed-price contracts, the contracting officer 
shall require the contractor to submit the Standard Form (SF) 1034, 
Public Voucher for Purchases and Services Other Than Personal, and the 
SF 1035, Public Voucher for Purchases and Services Other Than Personal 
(Continuation Sheet), to request payments. The forms must be completed 
as required by Table 1232-1 to this part, Instructions for Completing 
the SF 1034, and Table 1232-2 to this part, Instructions for Completing 
the SF 1035.

Table 1232-1

Instructions for Completing the SF 1034

    The SF 1034, Public Voucher for Purchases and Services Other Than 
Personal, shall be completed in accordance with the below instructions. 
The numbered items correspond to the entries on the form.

------------------------------------------------------------------------
                                            Data to be inserted in the
         Caption on the SF 1034                       block
------------------------------------------------------------------------
1. U.S. DEPARTMENT, BUREAU, OR           Name and address of the
 ESTABLISHMENT AND LOCATION.              contracting office which
                                          issued the contract.
2. DATE VOUCHER PREPARED...............  Date voucher submitted to the
                                          designated billing office
                                          cited under the contract or
                                          order.
3. CONTRACT NO. AND DATE...............  Contract No. and, when
                                          applicable, the Order No. and
                                          date as shown on the award
                                          document.
4. REQUISITION NO. AND DATE............  Leave blank or fill-in in
                                          accordance with the
                                          instructions in the contract.
5. VOUCHER NO..........................  Start with ``1'' and number
                                          consecutively. A separate
                                          series of consecutive numbers
                                          must be used beginning with
                                          ``1'' for each contract number
                                          or order number (when
                                          applicable). Note: Insert the
                                          word ``FINAL'' if this is the
                                          last voucher.
6. SCHEDULE NO.; PAID BY; DATE INVOICE   Leave all these blocks blank.
 RECEIVED; DISCOUNT TERMS; PAYEE'S
 ACCOUNT NO.; SHIPPED FROM/TO; WEIGHT;
 GOVERNMENT B/L.
7. PAYEE'S NAME AND ADDRESS............  Name and address of contractor
                                          as it appears on the contract.
                                          If the contract is assigned to
                                          a bank, also show ``CONTRACT
                                          ASSIGNED'' below the name and
                                          address of the contractor.
8. NUMBER AND DATE OF ORDER............  Leave blank. (See #3 above.)
9. DATE OF DELIVERY OR SERVICE.........  The period for which the
                                          incurred costs are being
                                          claimed (e.g., month and year;
                                          beginning and ending date of
                                          services, etc.).
10. ARTICLES OR SERVICES...............  Insert the following: ``For
                                          detail, see the total amount
                                          of the claim transferred from
                                          the attached SF 1035, page X
                                          of X.'' One space below this
                                          line, insert the following:
                                          ``COST REIMBURSABLE-
                                          PROVISIONAL PAYMENT.''
11. QUANTITY; UNIT PRICE; (COST; PER)..  Leave blank.
12. AMOUNT.............................  Insert the total amount claimed
                                          from the last page of the SF
                                          1035.
Payee must NOT use the space below.....  Do NOT write or type below this
                                          line.
------------------------------------------------------------------------

Table 1232-2

Instructions for Completing the SF 1035

    The SF 1035, Public Voucher for Purchases and Services Other Than 
Personal (Continuation Sheet), shall be completed in accordance with 
the below instructions.
    1. Use the same basic instructions for the SF 1035 as used for the 
SF 1034. Ensure that the contract and, if applicable, order number, are 
shown on each continuation sheet. Use as many sheets as necessary to 
show the information required by the contract, contracting officer, or 
responsible audit agency; however, if more than one sheet of SF 1035 is 
used, each sheet shall be in numerical sequence.
    2. The following items are generally entered below the line with 
Number and Date of Order; Date of Delivery or Service; Articles or 
Services; Quantity; Unit Price; and Amount (but do not necessarily tie 
to these captions).
    3. Description of data to be inserted as it applies to the contract 
or order number including the CLIN or SLIN.
    a. Show, as applicable, the target or estimated costs, target or 
fixed-fee, and total contract value, as adjusted by any modifications 
to the contract or order. The FAR permits the contracting officer to 
withhold a percentage of fixed fee until a reserve is set aside in an 
amount that is considered necessary to protect the Government's 
interest.

[[Page 69504]]

    b. Show the following costs and supporting data (as applicable) to 
the contract or order:
    (1) Direct Labor. List each labor category, rate per labor hour, 
hours worked, and extended total labor dollars per labor category.
    (2) Premium Pay/Overtime. List each labor category, rate per labor 
hour, hours worked, and the extended total labor dollars per labor 
category. Note: Advance written authorization must be received from the 
contracting officer to work overtime or to pay premium rates; 
therefore, identify the contracting officer's written authorization to 
the contractor.
    (3) Fringe Benefits. If fringe benefits are included in the 
overhead pool, no entry is required. If the contract allows for a 
separate fringe benefit pool, cite the formula (rate and base) in 
effect during the time the costs were incurred. If the contract allows 
for billing fringe benefits as a direct expense, show the actual fringe 
benefit costs.
    (4) Materials, Supplies, Equipment. Show those items normally 
treated as direct costs. Expendable items need not be itemized and may 
be grouped into major classifications such as office supplies. However, 
items valued at $5,000 or more must be itemized. See FAR part 45, 
Government Property, for reporting of property.
    (5) Travel. List the name and title of traveler, place of travel, 
and travel dates. If the travel claim is based on the actual costs 
expended, show the amount for the mode of travel (i.e., airline, 
private auto, taxi, etc.), lodging, meals, and other incidental 
expenses separately, on a daily basis. These actual costs must be 
supported with receipts to substantiate the costs paid. Travel costs 
for consultants must be shown separately and also supported.
    (6) Other Direct Costs. Itemize those costs that cannot be placed 
in categories (1) through (5) above. Categorize these costs to the 
extent possible.
    (7) Total Direct Costs. Cite the sum of categories (1) through (6) 
above.
    (8) Overhead. Cite the rate, base, and extended amount.
    (9) G&A Expense. Cite the rate, base, and extended amount.
    (10) Total Costs. Cite the sum of categories (7) through (9) above.
    (11) Fee. Cite the rate, base, and extended amount.
    (12) Total Cost and Fee Claimed. Enter this amount on the SF 1034.

Completion Voucher

    The completion (final) voucher is the last voucher to be submitted 
for incurred, allocable, and allowable costs expended to perform the 
contract or order. This voucher should include all contract reserves, 
allowable cost withholdings, balance of fixed fee, etc. However, the 
amount of the completion voucher when added to the total amount 
previously paid cannot exceed the total amount of the contract.


1232.7000   Scope of subpart.

    This subpart prescribes policy and procedures for submitting and 
processing payment requests in electronic form.


1232.7001   Definition.

    Payment request, as used in this subpart, means a bill, voucher, 
invoice, or request for contract financing payment with associated 
supporting documentation.


1232.7002   Electronic payment requests--invoices.

    (a) Requirements. Contracts shall require the electronic submission 
of payment requests, except for--
    (1) Purchases paid for with a Government-wide commercial purchase 
card;
    (2) Classified contracts or purchases when electronic submission 
and processing of payment requests could compromise classified 
information or national security; or
    (3) As directed by the contracting officer to submit payment 
requests by mail.
    (b) Alternate procedures. Where a contract requires the electronic 
submission of invoices, the contracting officer may authorize alternate 
procedures only if the contracting officer makes a written 
determination that the Department of the Transportation (DOT) is unable 
to receive electronic payment requests or provide acceptance 
electronically and it is approved one level above the contracting 
officer.
    (c) DOT electronic invoicing system. The Department of 
Transportation utilizes the DELPHI eInvoicing System. The DELPHI module 
for submitting invoices is called iSupplier. Except as provided in 
paragraphs (a) and (b) of this section, contracting officers and DOT 
finance officials shall process electronic payment submissions through 
the DELPHI System and the DELPHI module for submitting invoices, 
iSupplier. iSupplier is also the official system of record for DOT 
payment requests. If the requirement for electronic submission of 
payment requests is waived under paragraph (a) or (b) of this section, 
the contract or alternate payment authorization, as applicable, shall 
specify the form and method of payment request submission.


1232.7003   Payment system registration.

    The contractor shall submit payment requests in electronic form 
unless directed by the contracting officer to submit payment requests 
by mail. Purchases paid with a Governmentwide commercial purchase card 
are considered to be an electronic transaction for purposes of this 
requirement, and therefore no additional electronic invoice submission 
is required.


1232.7003-1   Electronic authentication.

    Access to DELPHI is granted with electronic authentication of 
credentials (name & valid email address) utilizing the GSA 
credentialing platform login.gov. Vendors submitting invoices will be 
required to submit invoices via iSupplier (DELPHI) and authenticated 
via www.login.gov


1232.7004   Waivers.

    If a vendor is unable to utilize DOT's DELPHI electronic invoicing 
system, DOT may consider waivers on a case-by-case basis. Vendors 
should contact their COR for procedures, or access the DELPHI website 
at http://www.dot.gov/cfo/delphi-einvoicing-system.html.


1232.7005   Contract clause.

    The contracting officer shall insert the clause at 1252.232-70, 
Electronic Submission of Payment Requests, in solicitations and 
contracts exceeding the micro-purchase threshold, except those for 
which the contracting officer has directed or approved otherwise under 
1232.7002, and those paid with a Governmentwide commercial purchase 
card.

PART 1233--PROTESTS, DISPUTES, AND APPEALS

Subpart 1233.1--Protests
Sec.
1233.103 Protests to the agency.
1233.104 Protests to GAO.
Subpart 1233.2--Disputes and Appeals
1233.211 Contracting officer's decision.
1233.214 Alternative dispute resolution (ADR).

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1233.1--Protests


1233.103   Protests to the agency.

    (c) DOT Operating Administrations (OAs) shall consider the use of 
Alternate Dispute Resolution (ADR) in all agency protest actions.


1233.104   Protests to GAO.

    The protest process at the Government Accountability Office

[[Page 69505]]

(GAO) may include ADR assistance by GAO. The contracting officer shall, 
with advice of counsel, explore the possibility of using ADR for all 
GAO protests.

Subpart 1233.2--Disputes and Appeals


1233.211   Contracting officer's decision.

    (a)(4)(v) Contracting officer's actions on claims. In accordance 
with FAR 33.211(a)(4)(i) through (vi), contracting officers shall 
include in a statement of the contracting officer's decision referenced 
at FAR 33.211(a)(iv), paragraphs substantially as follows:

    This is the final decision of the Contracting Officer. You may 
appeal this decision to the Civilian Board of Contract Appeals. If 
you decide to appeal, you must, within 90 days from the date you 
receive this decision, mail or otherwise furnish written notice to 
the Civilian Board of Contract Appeals as set forth below and 
provide a copy to the Contracting Officer from whose decision this 
appeal is taken. The notice shall indicate that an appeal is 
intended, reference this decision, and identify the contract by 
number.
    Where to File: All filings must be submitted to the Clerk of the 
Board. Filings shall be to Civilian Board of Contract Appeals, 1800 
F Street NW, Washington, DC 20405 in any of the ways as set forth at 
their website at https://cbca.gov/howto/index.html.
    With regard to appeals to the Civilian Board of Contract 
Appeals, you may, solely at your election, proceed under the 
board's--
    (1) Small claim procedure for claims of $50,000 or less or, in 
the case of a small business concern (as defined in the Small 
Business Act and regulations under that Act), $150,000 or less; or
    (2) Accelerated procedure for claims of $100,000 or less.
    Instead of appealing to the Civilian Board of Contract Appeals, 
you may bring an action directly in the United States Court of 
Federal Claims (except as provided in 41 U.S.C. 7102(d), regarding 
Maritime Contracts) within 12 months of the date you receive this 
decision.''


1233.214   Alternative dispute resolution (ADR).

    (c) The Administrative Dispute Resolution Act (ADRA) of 1990, 
Public Law 101-552, as reauthorized by the Administrative Dispute 
Resolution Act (ADRA) of 1996, Public Law 104-320, authorizes and 
encourages agencies to use mediation, conciliation, arbitration, and 
other techniques for the prompt and informal resolution of disputes, 
either before or after appeal, and for other purposes. ADR procedures 
may be used when--
    (1) There is mutual consent by the parties to participate in the 
ADR process (with consent being obtained either before or after an 
issue in controversy has arisen); and either
    (2) Prior to the submission of a claim; or
    (3) In resolution of a formal claim.
    (d)(1) Use of ADR shall be coordinated with counsel. For all 
matters filed with the Civilian Board of Contract Appeals (CBCA), the 
CBCA Alternate Dispute Resolution (ADR) procedures contained in 48 CFR 
6101.54 shall be followed.
    (2) For other matters, pursuant to the Administrative Dispute 
Resolution Act (ADRA), DOT has appointed a Dispute Resolution 
Specialist, who is responsible for the operations of the Center for 
Alternative Dispute Resolution. The Center may provide an internal DOT 
neutral agreeable to the parties to conduct any of the alternative 
means of dispute resolution set forth in the ADRA, 5 U.S.C. 571(3), on 
a non-reimbursable basis for DOT operating administrations and their 
contracting partners. Alternative means of dispute resolution include 
settlement negotiations, conciliation, facilitation, mediation, fact-
finding, mini-trials, and arbitration, or any combination of these 
methods. The Center may also arrange for an external public or private 
neutral at the parties' expense.

PART 1234 [RESERVED]

PART 1235--RESEARCH AND DEVELOPMENT CONTRACTING

Sec.
1235.003 Policy.
1235.010-70 Scientific and technical reports--acquisition, 
publication and dissemination.
1235.011-70 Contract clause.
1235.012 Patent rights.
1235.070 Research misconduct.
1235.070-1 Contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.


1235.003   Policy.

    (b) Cost sharing. DOT cost sharing policies that are not otherwise 
required by law, shall be in accordance with FAR 16.303, FAR 42.707(a) 
and Operating Administration (OA) procedures.
    (c) Recoupment. DOT recoupment not otherwise required by law shall 
be in accordance with OA procedures.


1235.010-70   Scientific and technical reports--acquisition, 
publication and dissemination.

    DOT policy for the acquisition, publishing format, and 
dissemination of scientific and technical reports is established in DOT 
Order 1700.18B, Acquisition, Publication and Dissemination of DOT 
Scientific and Technical Reports. The contracting officer is 
responsible for ensuring the requirements specified in this order, as 
well as any OA implementing policies, are adequately addressed in the 
Research and Development (R&D) solicitation and resulting contract 
award, when applicable.


1235.011-70   Contract clause.

    The contracting officer shall insert the clause at 1252.235-71, 
Technology Transfer, in all solicitations and contracts for 
experimental, developmental, or research work.


1235.012   Patent rights.

    Patent rights shall be in accordance with FAR part 27 and any OA 
implementing procedures.


1235.070   Research misconduct.

    (a) Applicability. DOT policy on scientific integrity is 
implemented in the Deputy Secretary's memorandum dated April 10, 2012, 
Implementation of Departmental Scientific Integrity Policy. The 
Department is dedicated to preserving the integrity of the research it 
conducts and funds and will not tolerate misconduct in the performance 
of these activities. DOT's research misconduct policy is set forth in 
the DOT Implementation Guidance for Executive Office of the President, 
Office of Science and Technology Policy, Federal Policy on Research 
Misconduct, dated February 2002. This policy applies to all DOT-funded 
or DOT-conducted research, including intramural research, research 
conducted by contractors, and research performed at research 
institutions, including universities and industry.
    (b) Definition. Research misconduct means fabrication, 
falsification, or plagiarism in proposing, performing, or reviewing 
research, or in reporting research results. Research misconduct does 
not include honest error or differences of opinion. A finding of 
research misconduct means a determination based on a preponderance of 
the evidence that research misconduct has occurred, including a 
conclusion that there has been a significant departure from accepted 
practices of the relevant research community and that it was knowingly, 
intentionally, or recklessly committed.


1235.070-1   Contract clause.

    The contracting officer shall insert the clause at 1252.235-70, 
Research Misconduct, in all solicitations and contracts for research 
and development.

[[Page 69506]]

PART 1236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Subpart 1236.5--Contract Clauses
Sec.
1236.570 Special precautions for work at operating airports.

    Authority: 5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1236.5--Contract Clauses


1236.570   Special precautions for work at operating airports.

    Where any acquisition will require work at an operating airport, 
insert the clause at 1252.236-70, Special Precautions for Work at 
Operating Airports, in solicitations and contracts.

PART 1237--SERVICE CONTRACTING

Subpart 1237.1--Service Contracts--General
Sec.
1237.110-70 Contract clauses.
Subpart 1237.70--Procedures for Acquiring Training Services
1237.7000 Policy.
1237.7001 Certification of data.
1237.7002 Applicability.
1237.7003 Solicitation provision and contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1237.1--Service Contracts--General


1237.110-70   Contract clauses.

    (a) The contracting officer shall insert the clause at 1252.237-70, 
Qualifications of Contractor Employees, in all solicitations and 
contracts for services where contractor employees will have access to 
Government facilities, sensitive information, including proprietary 
data and/or resources.
    (b) The contracting officer shall insert the clause at 1252.237-73, 
Key Personnel, in solicitations and contracts for services when the 
selection for award is substantially based on the offeror's possession 
of special capabilities regarding personnel.

Subpart 1237.70--Procedures for Acquiring Training Services


1237.7000   Policy.

    When training services are provided under contract, DOT policy 
requires that all prospective contractors:
    (a) Certify that the data provided concerning company 
qualifications, background statements, and resumes, for example, is 
current, accurate, and complete; and
    (b) Agree to not solicit or advertise private, non-Government 
training while conducting a training course.


1237.7001   Certification of data.

    Towards fulfilling DOT's policy at 1237.7000(a), contracting 
officers shall request information from prospective contractors for 
certification purposes. The type of information requested is dependent 
upon the criticality of the service and/or any unique or essential 
qualification requirements.


1237.7002   Applicability.

    The policy at 1237.7000 applies to all contracts (as defined in FAR 
2.101) awarded by DOT for training services when DOT controls the 
content and/or presentation of the course. This policy does not apply 
to courses attended by DOT employees that are offered and sponsored by 
Government sources of supply, educational institutions, or private 
entities where DOT does not control the course content or presentation. 
(See 1213.7100 for examples.)


1237.7003   Solicitation provision and contract clause.

    (a) The contracting officer shall insert the provision at 1252.237-
71, Certification of Data, in solicitations and the clause at 1252.237-
72, Prohibition on Advertising, in solicitations and contracts for 
training services when the content and/or presentation of the course is 
controlled by DOT.
    (b) The contracting officer shall incorporate the successful 
offeror's certified data into any resultant contract(s). Certified data 
may be adopted by reference, if the contracting officer determines it 
contains sufficient descriptive information (i.e., dated material such 
as resumes, company and/or personnel qualifications) to reliably 
describe the certified data submitted.

PART 1239--ACQUISITION OF INFORMATION TECHNOLOGY

Sec.
1239.000 Scope of part.
1239.002 Definitions.
Subpart 1239.1--General
1239.101 Policy.
1239.101-70 Policy--software management and development.
1239.101-70-1 Scope.
1239.101-70-2 Definitions.
1239.101-70-3 Policy.
1239.106-70 Contract clauses.
Subpart 1239.2--Electronic and Information Technology
1239.201 Scope of subpart.
1239.203 Applicability.
1239.203-70 Information and communication technology accessibility 
standards--contract clause and provision.
Subpart 1239.70--Information Security and Incident Response Reporting
1239.7000 Scope of subpart.
1239.7001 Definitions.
1239.7002 Policy.
1239.7003 Contract clauses.
Subpart 1239.71--Protection of Data About Individuals
1239.7100 Scope of subpart.
1239.7101 Definitions.
1239.7102 Policy.
1239.7103 Responsibilities.
1239.7104 Contract clause.
Subpart 1239.72--Cloud Computing
1239.7200 Scope of subpart.
1239.7201 Definitions.
1239.7202 Policy.
1239.7203 DOT FedRAMP specific requirements.
1239.7204 Contract clauses.
Subpart 1239.73--Technology Modernization and Upgrades/Refreshment
1239.7300 Scope of subpart.
1239.7301 Definitions.
1239.7302 Policy.
1239.7303 Contract clauses.
Subpart 1239.74--Records Management
1239.7400 Scope of subpart.
1239.7401 Definition.
1239.7402 Policy.
1239.7403 Contract clause.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.


1239.000   Scope of part.

    In addition to FAR 39.000, this part prescribes acquisition 
policies and procedures for use in acquiring information technology and 
information technology-related supplies, services and systems, 
including information technology-related services and information 
security, to include--
    (a) Software management and development;
    (b) Section 508 standards and compliance for contracts;
    (c) Information security and incident response reporting;
    (d) Protection of data about individuals;
    (e) Cloud computing;
    (f) Technology modernization and upgrade/refreshment; and
    (g) Record management.


1239.002  Definitions.

    As used in this part--
    Information means any communication or representation of knowledge 
such as facts, data, or opinions in any medium or form, including 
textual, numerical, graphic, cartographic, narrative, or audiovisual 
(Committee on National Security Systems Instruction (CNSSI) 4009).

[[Page 69507]]

    Information system means a discrete set of information resources 
organized for the collection, processing, maintenance, use, sharing, 
dissemination, or disposition of information (44 U.S.C. 3502).
    Media means physical devices or writing surfaces including, but not 
limited to, magnetic tapes, optical disks, magnetic disks, large-scale 
integration memory chips, and printouts onto which information is 
recorded, stored, or printed within an information system.

Subpart 1239.1--General


1239.101   Policy.


1239.101-70   Policy--software management and development.


1239.101-70-1   Scope.

    This subpart applies to all acquisitions of products or services 
supporting the development or maintenance of software.


1239.101-70-2   Definitions.

    As used in this subpart--
    Application means software that resides above system software and 
includes applications such as database programs, word processors and 
spreadsheets. Application software may be bundled with system software 
or published alone.
    Programming software means tools to aid developers in writing 
programs including compilers, linkers, debuggers, interpreters and text 
editors.
    Software means a set of instructions or programs instructing a 
computer to do specific tasks including scripts, applications, programs 
and a set of instructions. Includes System, Programming, and 
Application software.
    System software means a platform comprised of Operating System (OS) 
programs and services, including settings and preferences, file 
libraries and functions used for system applications. System software 
also includes device drivers that run basic computer hardware and 
peripherals.


1239.101-70-3   Policy.

    The contracting officer will ensure all documents involving the 
acquisition of development or maintenance of DOT applications, systems, 
infrastructure, and services contain the appropriate clauses as may be 
required by Federal Acquisition Regulation (FAR) and other Federal 
authorities, in order to ensure that information system modernization 
is prioritized accordance with Federal law, OMB Guidance, and DOT 
policy.


1239.106-70   Contract clauses.

    The contracting officer shall insert the clause at 1252.239-70, 
Security Requirements for Unclassified Information Technology 
Resources, and the clause at 1252.239-71, Information Technology 
Security Plan and Accreditation, in all solicitations and contracts 
exceeding the micro-purchase threshold that include information 
technology services.

Subpart 1239.2--Electronic and Information Technology


1239.201   Scope of subpart.

    This subpart applies to the acquisition of Electronic and 
Information Technology (EIT) supplies and services). The term ``EIT'' 
as used in this subpart is intended to refer to Information and 
Communication Technology (ICT) and any successor terms used to describe 
such technology. It concerns the access to and use of information and 
data, by both Federal employees with disabilities, and members of the 
public with disabilities in accordance with FAR 39.201. This implements 
DOT policy on Section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 
794d) as it applies to contracts and acquisitions.


1239.203   Applicability.

    (a) Solicitations for information technology (information and 
communication technology) or IT-related supplies and services may 
require submission of a Section 508 Checklist available at https://www.section508.gov/sell/vpat.


1239.203-70   Information and communication technology accessibility 
standards--contract clause and provision.

    (a) The contracting officer shall insert the provision at 1252.239-
92, Information and Communication Technology Accessibility Notice, in 
all solicitations.
    (b) The contracting officer shall insert the clause at 1252.239-93, 
Information and Communication Technology Accessibility, in all 
contracts and orders.


Subpart  1239.70--Information Security and Incident Response Reporting


1239.7000   Scope of subpart.

    (a) This subpart applies to contracts and subcontracts requiring 
contractors and subcontractors to safeguard DOT sensitive data that 
resides in or transits through covered contractor information systems 
by applying specified network security requirements. It also requires 
reporting of cyber incidents.
    (b) This subpart does not abrogate any other requirements regarding 
contractor physical, personnel, information, technical, or general 
administrative security operations governing the protection of 
unclassified information, nor does it affect requirements of the 
National Industrial Security Program.


1239.7001   Definitions.

    As used in this subpart--
    Adequate security means protective measures that are commensurate 
with the consequences and probability of loss, misuse, or unauthorized 
access to, or modification of information.
    Contractor attributional/proprietary information means information 
that identifies the contractor(s), whether directly or indirectly, by 
the grouping of information that can be traced back to the 
contractor(s) (e.g., program description, facility locations), 
personally identifiable information, as well as trade secrets, 
commercial or financial information, or other commercially sensitive 
information that is not customarily shared outside of the company.
    Contractor information system means an unclassified information 
system that is owned, or operated by or for, a contractor and that 
processes, stores, or transmits DOT sensitive information.
    DOT sensitive data means unclassified information as that requires 
safeguarding or dissemination controls pursuant to and consistent with 
law, regulations, and Governmentwide policies, and is--
    (1) Marked or otherwise identified in the contract, task order, or 
delivery order and provided to the contractor by or on behalf of DOT in 
support of the performance of the contract; or
    (2) Collected, developed, received, transmitted, used, or stored by 
or on behalf of the contractor in support of the performance of the 
contract.
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information residing 
therein.
    Rapidly report means reporting within two (2) hours of discovery of 
any cyber incident.
    Technical information means recorded information, regardless of the 
form or method of the recording, of a scientific or technical nature 
(including computer software documentation). The term does not include 
computer software or data incidental to contract administration, such 
as financial and/or management information. Examples of technical 
information include research and engineering data, engineering

[[Page 69508]]

drawings, and associated lists, specifications, standards, process 
sheets, manuals, technical reports, technical orders, catalog-item 
identifications, data sets, studies and analyses and related 
information, and computer software executable code and source code.


1239.7002   Policy.

    (a) Contractors and subcontractors are required to provide adequate 
security on all contractor information systems that will collect, use, 
process, store, or disseminate DOT sensitive data.
    (b) Contractors and subcontractors shall report cyber incidents 
directly to DOT via the DOT Security Operations Center (SOC) 24 hours-
a-day, 7 days-a-week, 365 days a year (24x7x365) at phone number: 571-
209-3080 (Toll Free: 866-580-1852) within two (2) hours of discovery. 
Subcontractors will provide to the prime contractor the incident report 
number automatically assigned by DOT. Lower-tier subcontractors 
likewise report the incident report number automatically assigned by 
DOT to their higher-tier subcontractor, until the prime contractor is 
reached.
    (c) If a cyber incident occurs, contractors and subcontractors 
shall submit to DOT, in accordance with the instructions contained in 
the clause at 1252.239-74, Safeguarding DOT Sensitive Data and Cyber 
Incident Reporting--
    (1) A cyber incident report;
    (2) The malicious software, if detected and isolated; and
    (3) The medium or media (or access to covered contractor 
information systems and equipment) upon request.
    (d) Notwithstanding to the requirement for the reporting of cyber 
incidents, if existing safeguards have ceased to function or the 
Government or Contractor discovers new or unanticipated threats or 
hazards, the discoverer shall immediately bring the situation to the 
attention of the other party.
    (1) Information shared by the contractor may include contractor 
attributional/proprietary information. The Government will protect 
against the unauthorized use or release of information that includes 
contractor attributional/proprietary information.
    (2) A cyber incident that is reported by a contractor or 
subcontractor shall not, by itself, be interpreted as evidence that the 
contractor or subcontractor has failed to provide adequate security on 
their covered contractor information systems, or has otherwise failed 
to meet the requirements of the clause at 1252.239-74, Safeguarding DOT 
Sensitive Data and Cyber Incident Reporting. When a cyber incident is 
reported, the contracting officer shall consult with the DOT component 
Chief Information Officer/cyber security office prior to assessing 
contractor compliance (see 1239.7003.) The contracting officer shall 
consider such cyber incidents in the context of an overall assessment 
of a contractor's compliance with the requirements of the clause at 
1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting.
    (3) Support services contractors directly supporting Government 
activities related to safeguarding DOT sensitive data and cyber 
incident reporting (e.g., forensic analysis, damage assessment, or 
other services that require access to data from another contractor) are 
subject to restrictions on use and disclosure of reported information.


1239.7003   Contract clauses.

    (a) The contracting officer shall insert the clause at 1252.239-72, 
Compliance with Safeguarding DOT Sensitive Data Controls, in all 
solicitations, including solicitations using FAR part 12 procedures for 
the acquisition of commercial items, except for solicitations solely 
for the acquisition of commercially available off-the-shelf (COTS) 
items.
    (b) The contracting officer shall insert clause at 1252.239-73, 
Limitations on the Use or Disclosure of Third-Party Contractor Reported 
Cyber Incident Information, in all solicitations and contracts, 
including solicitations and contracts using FAR part 12 procedures for 
the acquisition of commercial items, for services that include support 
for the Government's activities related to safeguarding DOT sensitive 
data and cyber incident reporting.
    (c) The contracting officer shall insert clause at 1252.239-74, 
Safeguarding DOT Sensitive Data and Cyber Incident Reporting, in all 
solicitations and contracts, including solicitations and contracts 
using FAR part 12 procedures for the acquisition of commercial items, 
except for solicitations and contracts solely for the acquisition of 
COTS items.

Subpart 1239.71--Protection of Data About Individuals


1239.7100   Scope of subpart.

    This subpart includes Privacy Act and data protection 
considerations for DOT contracts. Data protection requirements are in 
addition to provisions concerning the general protection of individual 
privacy (see FAR subpart 24.1) and privacy in the acquisition of 
information technology (see FAR 39.105). DOT rules and regulations 
implementing the Privacy Act of 1974 are located at 49 CFR part 10.


1239.7101   Definitions.

    As used in this subpart--
    Data protection means the practice of protecting data and managing 
risks associated with the collection, display, use, processing, 
storage, transmission, and disposal of information or data as well as 
the systems and processes used for those purposes. Data protection uses 
physical, technical and administrative controls to protect the 
integrity, availability, authenticity, non-repudiation, and 
confidentiality of data by incorporating protection, detection, and 
reaction capabilities. Data protection encompasses not only digital 
data, but also data in analog or physical form, and applies to data in 
transit as well as data at rest.
    Breach means the disclosure of information to unauthorized persons, 
or a violation of the security policy of a system, in which 
unauthorized access, compromise, use, disclosure, modification, 
destruction, access or loss use of data, or the copying of information 
to unauthorized media may have occurred.
    Information security means the protection of information and 
information systems from unauthorized access, use, disclosure, 
disruption, modification, or destruction in order to provide--
    (i) Integrity, which means guarding against improper information 
modification or destruction, and includes ensuring information non-
repudiation and authenticity;
    (ii) Confidentiality, which means preserving authorized 
restrictions on access and disclosure, including means for protecting 
personal privacy and proprietary information; and
    (iii) Availability, which means ensuring timely and reliable access 
to and use of information.
    Personally Identifiable Information (PII) means the definition as 
set forth in FAR 24.101.
    Privacy incident means the loss of control, compromise, 
unauthorized disclosure, unauthorized acquisition, or unauthorized 
access to PII regardless of format.


 1239.7102  Policy.

    DOT must ensure that data protection is provided for information 
and information systems in accordance with current policies, 
procedures, and statutes, including:
    (1) The Clinger-Cohen Act.
    (2) The E-Government Act.
    (3) Federal Information Systems Modernization Act.

[[Page 69509]]

    (4) Federal Information Processing Standards.
    (5) OMB Circular A-130, Managing Information as a Strategic 
Resource.
    (6) 49 CFR part 10, Maintenance of and Access to Records Pertaining 
to Individuals.
    (7) DOT Order 1351.18, Privacy Risk Management Policy.
    (8) DOT Order 1351.19, PII Breach Notification Controls.
    (9) DOT Order 1351.28, Records Management.
    (10) DOT Order 1351.37, Departmental Cyber Security Policy.


1239.7103   Responsibilities.

    (a) The contracting officer will include appropriate data 
protection requirements in all contracts and other acquisition-related 
documents for DOT information created, collected, displayed, used, 
processed, stored, transmitted, and disposed of by contractors.
    (b) The contracting officer will ensure all contracts with 
contractors maintaining information systems containing PII contain the 
appropriate clauses as may be required by the Federal Acquisition 
Regulation (FAR) and other OMB and agency memorandums and directives, 
to ensure that PII under the control of the contractor is maintained in 
accordance with Federal law and DOT policy.
    (c) The contracting officer and assigned contracting officer's 
representatives and program and project managers will obtain 
contractual assurances from third parties working on official DOT 
business that third parties will protect PII in a manner consistent 
with the privacy practices of the Department during all phases of the 
system development lifecycle.
    (d) Program and project managers and requiring activities will 
address the need to protect information about individuals and/or PII in 
the statement of work (SOW), performance work statement (PWS) or 
statement of objectives (SOO). Contracting officers will notify the 
appropriate organization or office when it intends to issue a 
solicitation for items or services requiring access to personal 
information or PII. Contracting officers will identify the Component 
Privacy Officer as the point of contact for oversight of privacy 
protection and identify the Component Information Systems Security 
Manager for the component for oversight of information security to the 
contractor after award.
    (e) See 1252.239-75, DOT Protection of Information about 
Individuals, PII and Privacy Risk Management Requirements, for 
additional information regarding the requirements of DOT Order 1351.18, 
Privacy Risk Management Policy and DOT Order 1351.37, Departmental 
Cyber Security Policy.


1239.7104   Contract clause.

    The contracting officer shall insert the clause at 1252.239-75, DOT 
Protection of Information About Individuals, PII and Privacy Risk 
Management Requirements, in solicitations and contracts involving 
contractor performance of data protection functions and for contracts 
involving the design, development, or operation of an information 
system with access to personally identifiable information as described 
in DOT Order 1351.18, Privacy Risk Management, and DOT Order 1351.37, 
Departmental Cyber Security Policy.

Subpart 1239.72--Cloud Computing


1239.7200   Scope of subpart.

    This subpart prescribes policies and procedures for the acquisition 
of cloud computing services.


1239.7201   Definitions.

    As used in this subpart--
    Authorizing official means the senior Federal official or executive 
with the authority to formally assume responsibility for operating an 
information system at an acceptable level of risk to organizational 
operations (including mission, functions, image, or reputation), 
organizational assets, individuals, other organizations, and the 
Nation.
    Cloud computing means a model for enabling ubiquitous, convenient, 
on-demand network access to a shared pool of configurable computing 
resources (e.g., networks, servers, storage, applications, and 
services) that can be rapidly provisioned and released with minimal 
management effort or service provider interaction. This includes other 
commercial terms, such as on-demand self-service, broad network access, 
resource pooling, rapid elasticity, and measured service. It also 
includes commercial offerings for software-as-a-service, 
infrastructure-as-a-service, and platform-as-a-service.
    Government data means any information, document, media, or machine-
readable material regardless of physical form or characteristics, that 
is created or obtained by the Government in the course of official 
Government business.
    Government-related data means any information, document, media, or 
machine-readable material regardless of physical form or 
characteristics that is created or obtained by a contractor through the 
storage, processing, or communication of Government data. This does not 
include a contractor's business records (e.g., financial records, legal 
records, and other similar records) or data such as operating 
procedures, software coding, or algorithms that are not uniquely 
applied to the Government data.


1239.7202   Policy.

    (a) General. Generally, DOT entities shall acquire cloud computing 
services using commercial terms and conditions that are consistent with 
Federal law and the agency's needs, including those requirements 
specified in this subpart. Some examples of commercial terms and 
conditions are license agreements, End User License Agreements (EULAs), 
Terms of Service (TOS), or other similar legal instruments or 
agreements. Contracting officers shall carefully review commercial 
terms and conditions and consult counsel to ensure these are consistent 
with Federal law, regulations, and the agency's needs. Contracting 
officers shall incorporate any applicable service provider terms and 
conditions into the contract by attachment or other appropriate 
mechanism.
    (b) FedRAMP provisional authorization. Except as provided in 
paragraph (b)(1) of this section, the contracting officer shall only 
award a contract to acquire cloud computing services from a cloud 
service provider (e.g., contractor or subcontractor, regardless of 
tier) that has been granted provisional authorization by the General 
Services Administration (GSA) Federal Risk and Authorization Management 
Program (FedRAMP), and meets the security requirements set out by the 
DOT Chief Information Officer (CIO), at the level appropriate to the 
requirement to provide the relevant cloud computing services.
    (1) The contracting officer may award a contract to acquire cloud 
computing services from a cloud service provider that has not been 
granted provisional authorization when--
    (i) The requirement for a provisional authorization is waived by 
the DOT CIO; or
    (ii) The cloud computing service requirement is for a private, on-
premises version that will be provided from Government facilities. 
Under this circumstance, the cloud service provider must obtain a 
provisional authorization prior to operational use.
    (2) When contracting for cloud computing services, the contracting 
officer shall ensure the following

[[Page 69510]]

information is provided by the requiring activity:
    (i) Government data and Government-related data descriptions.
    (ii) Data ownership, licensing, delivery and disposition 
instructions specific to the relevant types of Government data and 
Government-related data (e.g., Contract Data Requirements List; work 
statement task; line items). Disposition instructions shall provide for 
the transition of data in commercially available, or open and non-
proprietary format (and for permanent records, in accordance with 
disposition guidance issued by National Archives and Record 
Administration).
    (iii) Appropriate requirements to support applicable inspection, 
audit, investigation, or other similar authorized activities specific 
to the relevant types of Government data and Government-related data, 
or specific to the type of cloud computing services being acquired.
    (iv) Appropriate requirements to support and cooperate with 
applicable system-wide search and access capabilities for inspections, 
audits, investigations.
    (c) Required storage of data within the United States or outlying 
areas. (1) Cloud computing service providers are required to maintain 
within the 50 states, the District of Columbia, or outlying areas of 
the United States, all Government data that is not physically located 
on DOT premises, unless otherwise authorized by the DOT CIO.
    (2) The contracting officer shall provide written approval to the 
contractor when the contractor is permitted to maintain Government data 
at a location outside the 50 States, the District of Columbia, and 
outlying areas of the United States.


1239.7203   DOT FedRAMP specific requirements.

    DOT entities shall set forth DOT FedRAMP specific cloud service 
requirements. DOT cloud service providers shall adhere to specific 
requirements when providing services to DOT and its operating 
administrations whenever DOT or other Federal agency information, 
sensitive information as defined by DOT policy, personally identifiable 
information, or third-party provided information and data will transit 
through or reside on the cloud services system and infrastructure and 
that requires protection according to required National Institute of 
Standards and Technology (NIST) Federal Information Processing 
Standards (FIPS). In addition to the requirements found elsewhere in 
the FAR, the following are required--
    (a) Validated cryptography for secure communications. The FedRAMP 
security control baseline requires cryptographic mechanisms to prevent 
unauthorized disclosure of information during transmission unless 
otherwise protected by alternative physical measures (see NIST FIPS 
140-2). DOT entities must require FIPS 140-2 validated cryptography be 
used between DOT and the cloud service provider. The program/project 
manager or requiring activity shall specify which level (1-4) of FIPS 
140-2 validation is required. See the clause prescribed at 
1239.7204(c).
    (b) Digital signature cryptography--(authentication, data 
integrity, and non-repudiation). Cloud service providers are required 
to implement FIPS 140-2 validated cryptography for digital signatures. 
If DOT entities require integration with specific digital signature 
technologies, contracting officers shall specify what level of FIPS 
140-2 encryption, is required. See the clause prescribed at 
1239.7204(d).
    (c) Audit record retention for cloud service providers. DOT 
entities should consider the length of time Cloud Service Providers 
(CSP) must retain audit records. DOT implements the FedRAMP requirement 
for a service provider to retain system audit records on-line for at 
least ninety calendar days and to further preserve audit records off-
line for a period that is in accordance with DOT and NARA requirements. 
See the clause prescribed at 1239.7204(e).
    (d) Cloud identification and authentication (organizational users) 
multi-factor authentication. Cloud Service Providers pursuing a FedRAMP 
authorization must provide a mechanism for DOT activities and operating 
administrations (i.e., Government consuming end-users) to use multi-
factor authentication. DOT follows National Institute of Standards and 
Technology (NIST) Federal Information Processing Standards (FIPS) 
Publication (PUB) Number 201-2, Personal Identity Verification (PIV) of 
Federal Employees and Contractors or successor publications. See the 
clause prescribed at 1239.7204(f).
    (e) Identification and authentication (non-organizational users). 
Contracting officers shall require that Cloud Service Providers 
pursuing a FedRAMP authorization are required to provide multi-factor 
authentication for the provider's administrators. See the clause 
prescribed at 1239.7204(g).
    (f) Incident reporting timeframes. Contracting officers shall 
specify in solicitations and contracts the required FedRAMP parameters 
for Incident Reporting at the levels stipulated in NIST SP 800-61, as 
well as the requirement for an Incident Reporting Plan that complies 
with those requirements. The program office shall include specific 
incident reporting requirements including who and how to notify the 
agency. See 1239.7002(b) and the clause prescribed at 1239.7204(h).
    (g) Media transport. DOT or other Federal agency information and 
data require protection. Contracting officers shall set forth specific 
DOT media transport requirements. See the clause prescribed at 
1239.7204(i).
    (h) Personnel screening--background investigations. When DOT 
leverages FedRAMP Provisional Authorizations, DOT conducts the required 
background investigations, but may accept reciprocity from other 
agencies that have implemented the Cloud Service Provider's systems. 
DOT's screening procedures, process, and additional screening 
requirements are set forth at 1252.204-70 and the clause prescribed at 
1239.7204(j).
    (i) Minimum personnel security requirements--U.S. citizenship and 
clearance. Contractors shall provide support personnel who are U.S. 
persons maintaining a NACI clearance or greater in accordance with OMB 
memoranda and contract clauses, and shall undergo required DOT 
background investigations prior to providing services and performing on 
the contract. See clause 1252.204-70(b) and the clause prescribed at 
1239.7204(j). Reinvestigations are required for cloud services provider 
personnel as follows--
    (1) Moderate risk law enforcement and high impact public trust 
level--a reinvestigation is required during the 5th year; and
    (2) There is no reinvestigation for other moderate risk positions 
or any low risk positions.


1239.7204  Contract clauses.

    (a) The contracting officer shall insert the clause at 1252.239-76, 
Cloud Computing Services, in solicitations and contracts, including 
those using FAR part 12 procedures, for the acquisition of commercial 
items, for information technology services involving cloud computing 
services.
    (b) The contracting officer shall insert a clause substantially as 
follows at 1252.239-77, Data Jurisdiction, in solicitations and 
contracts, including those using FAR part 12 procedures for the 
acquisition of commercial items, for information technology services 
involving cloud computing services.
    (c) The contracting officer shall insert a clause substantially as 
follows at 1252.239-78, Validated Cryptography for Secure 
Communications, in

[[Page 69511]]

solicitations and contracts, including those using FAR part 12 
procedures for the acquisition of commercial items, for information 
technology services involving cloud computing services.
    (d) The contracting officer shall insert a clause substantially as 
follows at 1252.239-79, Authentication, Data Integrity, and Non-
Repudiation, in solicitations and contracts, including those using FAR 
part 12 procedures for the acquisition of commercial items, for 
information technology services involving cloud computing services.
    (e) The contracting officer shall insert a clause substantially as 
follows at 1252.239-80, Audit Record Retention for Cloud Service 
Providers, in solicitations and contracts, including those using FAR 
part 12 procedures for the acquisition of commercial items, for 
information technology services involving cloud computing services.
    (f) The contracting officer shall insert a clause substantially as 
follows at 1252.239-81, Cloud Identification and Authentication 
(Organizational Users) Multi-Factor Authentication, in solicitations 
and contracts, including those using FAR part 12 procedures for the 
acquisition of commercial items, for information technology services 
involving cloud computing services.
    (g) The contracting officer shall insert a clause substantially as 
follows at 1252.239-82, Identification and Authentication (Non-
Organizational Users), in solicitations and contracts, including those 
using FAR part 12 procedures for the acquisition of commercial items, 
for information technology services involving cloud computing services.
    (h) The contracting officer shall insert a clause substantially as 
follows at 1252.239-83, Incident Reporting Timeframes, in all services 
solicitations and contracts, including those using FAR part 12 
procedures for the acquisition of commercial items, and for information 
technology services involving cloud computing services.
    (i) The contracting officer shall insert a clause substantially as 
follows at 1252.239-84, Media Transport, in solicitations and 
contracts, including those using FAR part 12 procedures for the 
acquisition of commercial items, for information technology services 
involving cloud computing services.
    (j) The contracting officer shall insert a clause substantially as 
follows at 1252.239-85, Personnel Screening--Background Investigations, 
in all services solicitations and contracts, including those using FAR 
part 12 procedures for the acquisition of commercial items, for 
information technology services involving cloud computing services.
    (k) The contracting officer shall insert a clause substantially as 
follows at 1252.239-86, Boundary Protection--Trusted internet 
Connections, in all solicitations and contracts, including those using 
FAR part 12 procedures for the acquisition of commercial items, for 
information technology services involving cloud computing services.
    (l) The contracting officer shall insert a clause substantially as 
follows at 1252.239-87, Protection of Information at Rest, in 
solicitations and contracts, including those using FAR part 12 
procedures for the acquisition of commercial item, for information 
technology services involving cloud computing services.
    (m) The contracting officer shall insert a clause substantially as 
follows at 1252.239-88, Security Alerts, Advisories, and Directives, in 
solicitations and contracts, including those using FAR part 12 
procedures for the acquisition of commercial item, for information 
technology services involving cloud computing services.

Subpart 1239.73--Technology Modernization and Upgrades/Refreshment


1239.7300   Scope of subpart.

    This subpart prescribes policies and procedures for incorporating 
technology modernization, upgrades and refreshment into acquisitions 
involving information technology products or services supporting the 
development of applications, information systems, or system software.


1239.7301   Definitions.

    As used in this subpart--
    Application means the software that resides above system software 
and includes applications such as database programs, word processors 
and spreadsheets. Application software may be bundled with system 
software or published alone.
    Modernization means the conversion, rewriting or porting of a 
legacy system to a modern computer programming language, software 
libraries, protocols, or hardware platform.
    System software means a platform composed of operating system 
programs and services, including settings and preferences, file 
libraries and functions used for system applications. System software 
also includes device drivers that run basic computer hardware and 
peripherals.
    Refresh means the periodic replacement of equipment to ensure 
continuing reliability of equipment and/or improved speed and capacity.
    Upgrade means an updated version of existing hardware, software or 
firmware. The purpose of an upgrade is improved and updated product 
features, including performance, product life, usefulness and 
convenience.


1239.7302   Policy.

    Contracting officers will ensure all documents involving the 
acquisition of development or maintenance of DOT applications, systems, 
infrastructure, and services will contain the appropriate clauses as 
may be required by the Federal Acquisition Regulation (FAR) and other 
Federal authorities, in order to ensure that information system 
modernization is prioritized accordance with Federal law, OMB Guidance, 
and DOT policy.


1239.7303   Contract clauses.

    (a) The contracting officer shall insert the clause at 1252.239-89, 
Technology Modernization, in solicitations and contracts when the 
contractor or a subcontractor, at any tier, proposes a modernization 
approach to develop or maintain information systems, applications, 
infrastructure, or services.
    (b) The contracting officer shall insert the clause at 1252.239-90, 
Technology Upgrades/Refreshment, in solicitations and contracts when 
the contractor or a subcontractor at any tier, proposes technology 
improvements (upgrades/refreshments) to develop or maintain information 
systems, applications, infrastructure, or services.

Subpart 1239.74--Records Management


1239.7400   Scope of subpart.

    This subpart prescribes policies for records management 
requirements for contractors who create, work with, or otherwise handle 
Federal records, regardless of the medium in which the records exists.


1239.7401   Definitions.

    As used in this subpart--
    Federal record, as defined in 44 U.S.C. 3301, means all recorded 
information, regardless of form or characteristics, made or received by 
a Federal agency under Federal law or in connection with the 
transaction of public business and preserved or appropriate for 
preservation by that agency or its legitimate successor as evidence of 
the organization, functions, policies, decisions, procedures, 
operations, or other activities of the United States Government or 
because of the informational value of data in them. The term Federal 
record:
    (i) Includes all DOT records.

[[Page 69512]]

    (ii) Does not include personal materials.
    (iii) Applies to records created, received, or maintained by 
contractors pursuant to a DOT contract.
    (iv) May include deliverables and documentation associated with 
deliverables.


1393.7140   Policy.

    (a) Requirements.--(1) Compliance. Contractors shall comply with 
all applicable records management laws and regulations, as well as 
National Archives and Records Administration (NARA) records policies, 
including but not limited to the Federal Records Act (44 U.S.C. 
chapters 21, 29, 31, 33), NARA regulations at 36 CFR Chapter XII 
Subchapter B, and those policies associated with the safeguarding of 
records covered by Privacy Act of 1974 (5 U.S.C. 552a). These policies 
include the preservation of all records, regardless of form or 
characteristics, mode of transmission, or state of completion.
    (2) Applicability. In accordance with 36 CFR 1222.32, all data 
created for Government use and delivered to, or falling under the legal 
control of, the Government are Federal records subject to the 
provisions of 44 U.S.C. chapters 21, 29, 31, and 33, the Freedom of 
Information Act (FOIA) (5 U.S.C. 552), as amended, and the Privacy Act 
of 1974 (5 U.S.C. 552a), as amended, and must be managed and scheduled 
for disposition only as permitted by the Federal Records Act, relevant 
statute or regulation, and DOT Order 1351.28, Departmental Records 
Management Policy.
    (3) Records maintenance. While DOT records are in a contractor's 
custody, the contractor is responsible for preventing the alienation or 
unauthorized destruction of the DOT records, including all forms of 
mutilation. Records may not be removed from the legal custody of DOT or 
destroyed except in accordance with the provisions of the agency 
records schedules and with the written concurrence of the DOT or 
Component Records Officer, as appropriate. Willful and unlawful 
destruction, damage or alienation of Federal records is subject to the 
fines and penalties imposed by 18 U.S.C. 2701. In the event of any 
unlawful or accidental removal, defacing, alteration, or destruction of 
records, the contractor must report the event to the contracting 
officer, in accordance with 36 CFR 1230, Unlawful or Accidental 
Removal, Defacing, Alteration, or Destruction of Records, for reporting 
to NARA.
    (4) Unauthorized disclosure. Contractors shall notify the 
contracting officer within two hours of discovery of any inadvertent or 
unauthorized disclosures of information, data, documentary materials, 
records or equipment. Contractors shall ensure that the appropriate 
personnel, administrative, technical, and physical safeguards are 
established to ensure the security and confidentiality of the 
information, data, documentary material, records and/or equipment 
accessed, maintained, or created, is properly protected. Contractors 
shall not remove material from Government facilities or systems, or 
facilities or systems operated or maintained on the Government's 
behalf, without the express written permission of the contracting 
officer or contracting officer's representative. When information, 
data, documentary material, records and/or equipment is no longer 
required, it shall be returned to DOT control or the contractor must 
hold it until otherwise directed. Items returned to the Government 
shall be hand carried, mailed, emailed, or securely electronically 
transmitted to the contracting officer or address prescribed in the 
contract. Destruction of records is expressly prohibited unless 
authorized.
    (b) Non-public information. Contractors shall not create or 
maintain any records containing any non-public DOT information that are 
not specifically tied to or authorized by the contract.


1239.7403   Contract clause.

    The contracting officer shall insert the clause at 1239.239-91, 
Records Management, in all solicitations and contracts involving 
services where contractors or subcontractors and their employees or 
associates collect, access, maintain, use or disseminate or otherwise 
handle Federal records.

PART 1242--CONTRACT ADMINISTRATION AND AUDIT SERVICES

Subpart 1242.1--Contract Audit Services
Sec.
1242.101 Contract audit responsibilities.
1242.102 Assignment of contract audit services.
1242.170 Contract clause.
Subpart 1242.2--Contract Administration Services
1242.270 Contract clauses.
Subpart 1242.3--Contract Administration Office Functions
1242.302 Contract administration functions.
Subpart 1242.15--Contractor Performance Information
1242.1503 Procedures.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1242.1--Contract Audit Services


1242.101   Contract audit responsibilities.

    (b) It is DOT policy that private certified public accounting (CPA) 
firms may be used to provide audit services as described in FAR 42.101 
to DOT contracting officers when procurement schedule demands cannot be 
met by the Defense Contract Audit Agency (DCAA) or the agency with 
audit cognizance.


1242.102   Assignment of contract audit services.

    (b) In accordance with 1242.101, when the responsible audit agency 
declines a request for services, DOT contracting officers may utilize 
audit services from commercial CPA firms as authorized in 1242.101.


1242.170   Contract clause.

    The contracting officer shall insert the clause at 1252.242-74, 
Contract Audit Support, in solicitation and contracts when other than 
firm-fixed-price contracts are contemplated.

Subpart 1242.2--Contract Administration Services


1242.270   Contract clauses.

    (a) The contracting officer may use the clause at 1252.242-70, 
Dissemination of Information--Educational Institutions, in lieu of the 
clause at 1252.242-72, Dissemination of Contract Information, in DOT 
research contracts with educational institutions, except contracts that 
require the release or coordination of information.
    (b) The contracting officer shall insert the clause at 1252.242-71, 
Contractor Testimony, in all solicitations and contracts issued by 
NHTSA. Other OAs may use the clause as deemed appropriate.
    (c) The contracting officer may insert the clause at 1252.242-72, 
Dissemination of Contract Information, in all DOT contracts except 
contracts that require the release or coordination of information.

Subpart 1242.3--Contract Administration Office Functions


1242.302   Contract administration functions.

    (a) If a cognizant Federal agency has not performed the functions 
identified in FAR 42.302(a)(5), (9), (11), and (12),

[[Page 69513]]

then DOT contracting officers are authorized to perform these functions 
with the assistance of either the cognizant government auditing agency, 
if assigned and available to provide support in a timely manner. If the 
cognizant government auditing agency is not assigned and/or available 
in the necessary timeframe, DOT contracting officers may use the audit 
services of a CPA firm.
    (13) The assignment of contract administration to a Defense 
Contract Management Agency (DCMA) office by the contracting officer 
does not affect the designation of the paying office unless a transfer 
of DOT funds to the agency of the Contract Administration Office (CAO) 
is effected, and the funds are converted to the CAO agency's account 
for payment purposes. When the contracting officer proposes to delegate 
the contract payment function to another agency (e.g., DCMA), the 
contracting officer shall discuss the transfer of funds procedures with 
the OA cognizant payment office. The CAO, the contracting officer, or 
the designated contract specialist in the contracting office shall 
review and approve the invoices and vouchers under the assigned 
contracts. The review and approval of invoices under cost-reimbursement 
and time-and-materials type contracts cannot be delegated to the 
Contracting Officer's Representative.

Subpart 1242.15--Contractor Performance Information


1242.1503   Procedures.

    (a)(1) Each OA is responsible for assigning responsibility and 
management accountability for the completeness of past performance 
submissions as required in FAR 42.1503(a).

PART 1245 [RESERVED]

PART 1246--QUALITY ASSURANCE

Subpart 1246.1--General
Sec.
1246.101 Definitions.
1246.101-70 Additional definitions.
Subpart 1246.7--Warranties
1246.705-70 Limitations--restrictions.
1246.706-70 Warranty terms and conditions--requirements.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1246.1--General


1246.101   Definitions.


1246.101-70   Additional definitions.

    As used in this subpart--
    At no additional cost to the Government means at no increase in 
price for firm-fixed-price contracts, at no increase in target or 
ceiling price for fixed price incentive contracts (see FAR 46.707), or 
at no increase in estimated cost or fee for cost-reimbursement 
contracts.
    Defect means any condition or characteristic in any supplies or 
services furnished by the contractor under the contract that is not in 
compliance with the requirements of the contract.
    Major acquisition means an acquisition or for supplies or services 
that requires submission of an OMB Exhibit 300 (Capital Asset Plan/
Business Case) in accordance with OMB Circular A-11, Preparation, 
Submission and Execution of the Budget, and also for information 
technology or information technology related acquisitions, compliance 
with the Department Chief Information Officer (CIO) Policy (CIOP). A 
major acquisition typically has one or more of the following 
characteristics--
    (a) Life-cycle costs of $150 million or more;
    (b) Is a financial system, e-gov system, or e-business system with 
a life-cycle cost of $500,000 or more; or
    (c) An acquisition that does not meet the dollar thresholds of 
paragraphs (a) or (b) of this section but--
    (1) Is mission-critical;
    (2) Requires special management attention because of its importance 
to an OA mission;
    (3) Plays a significant role in the administration of OA programs, 
processes or other resources; or
    (4) Directly supports the President's Management Agenda.
    Performance requirements means the operating capabilities, 
maintenance, and reliability characteristics of a system that are 
determined to be necessary for it to fulfill the requirement for which 
the system is designed.

Subpart 1246.7--Warranties


1246.705-70   Limitations--restrictions.

    (a) The following restrictions are applicable to DOT contracts:
    (1) The contractor shall not be required to honor the warranty on 
any property furnished by the Government except for--
    (i) Defects in installation; and
    (ii) Installation or modification in such a manner that invalidates 
a warranty provided by the manufacturer of the property.
    (2) Any warranty obtained shall specifically exclude coverage of 
damage in time of war (combat damage) or national emergency.
    (3) Contracting officers shall not include in a warranty clause any 
terms that require the contractor to incur liability for loss, damage, 
or injury to third parties.


1246.706-70   Warranty terms and conditions--requirements.

    (a) When appropriate and cost effective, the contracting officer 
shall comply with the following requirements when developing the 
warranty terms and conditions--
    (1) Identify the affected line item(s) and the applicable 
specification(s);
    (2) Require that the line item's design and manufacture will 
conform to--
    (i) An identified revision of a top-level drawing; and/or
    (ii) An identified specification or revision thereof.
    (3) Require that the line item conform to the specified Government 
performance requirements;
    (4) Require that all line items and components delivered under the 
contract will be free from defects in materials and workmanship;
    (5) State that if the contractor fails to comply with specification 
or there are defects in material and workmanship, the contractor will 
bear the cost of all work necessary to achieve the specified 
performance requirements, including repair and/or replacement of all 
parts;
    (6) Require the timely replacement/repair of warranted items and 
specify lead times for replacement/repair where possible;
    (7) Identify the specific paragraphs containing Government 
performance requirements that the contractor must meet;
    (8) Ensure that any performance requirements identified as goals or 
objectives beyond specification requirements are excluded from the 
warranty provision;
    (9) Specify what constitutes the start of the warranty period 
(e.g., delivery, acceptance, in-service date), the ending of the 
warranty (e.g., passing a test or demonstration, or operation without 
failure for a specified period), and circumstances requiring an 
extension of warranty duration (e.g., extending the warranty period as 
a result of mass defect correction during warranty period);
    (10) Identify what transportation costs will be paid by the 
contractor in relation to the warranty coverage;
    (11) In addition to combat damage, identify any conditions which 
will not be covered by the warranty, and
    (12) Identify any limitation on the total dollar amount of the 
contractor's warranty exposure, or agreement to share costs after a 
certain dollar

[[Page 69514]]

threshold to avoid unnecessary warranty returns.
    (b) In addition to the terms and conditions listed in paragraph (a) 
of this section, the contracting officer shall consider the following 
when a warranty clause is being used for a major system, as defined in 
FAR 2.101:
    (1) For line items or components which are commercially available, 
obtaining a warranty as is normally provided by the manufacturer or 
supplier, in accordance with FAR 46.703(d) and FAR 46.710(b)(2).
    (2) Obtaining a warranty of compliance with the stated requirements 
for line items or components provided in accordance with either design 
and manufacturing or performance requirements as specified in the 
contract or any modification to that contract.
    (3) The warranty provided under paragraph (b)(2) of this section 
shall provide that in the event the line items or any components 
thereof fails to meet the terms of the warranty provided, the 
contracting officer may--
    (i) Require the contractor to promptly take such corrective action 
as the contracting officer determines to be necessary at no additional 
cost to the Government, including repairing or replacing all parts 
necessary to achieve the requirements set forth in the contract;
    (ii) Require the contractor to pay costs reasonably incurred by the 
United States in taking necessary corrective action; or
    (iii) Equitably reduce the contract price.
    (4) Inserting remedies, exclusions, limitations and durations, 
provided these are consistent with the specific requirements of this 
subpart and FAR 46.706.
    (5) Excluding from the terms of the warranty certain defects for 
specified supplies (exclusions) and limiting the contractor's liability 
under the terms of the warranty (limitations), as appropriate, if 
necessary to derive a cost-effective warranty considering the technical 
risk, contractor financial risk, or other program uncertainties.
    (6) Structuring of a broader and more comprehensive warranty where 
such is advantageous. Likewise, the contracting officer may narrow the 
scope of a warranty when appropriate (e.g., where it would be 
inequitable to require a warranty of all performance requirements 
because a contractor had not designed the system).
    (c) Any contract that contains a warranty clause must contain 
warranty implementation procedures, including warranty notification 
content and procedures, and identify the individuals responsible for 
implementation of warranty provisions. The contract may also permit the 
contractor's participation in investigation of system failures, if the 
contractor is reimbursed at established rates for fault isolation work, 
and that the Government receive credit for any payments where equipment 
failure is covered by warranty provisions.

PART 1247--TRANSPORTATION

Subpart 1247.5--Ocean Transportation By U.S.-Flag Vessels
Sec.
1247. 506 Procedures.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1247.5--Ocean Transportation by U.S.-Flag Vessels


1247.506   Procedures.

    (a) The Maritime Administration (MARAD) is the enforcing agency of 
the cargo preference statutes. MARAD can assist contractors in locating 
U.S.-flag carriers and determine when such services are not available 
and they can assist contracting officers in evaluating costs, services, 
and other matters regarding ocean transportation.
    (d) If no transportation officer is available, the contracting 
officer shall submit a copy of the rated ``on board'' bill of lading, 
for each shipment, no later than 20 days after the vessels loading date 
for exports and 30 days for imports as stated in 46 CFR 381.3. All non-
vessel ocean common carrier bills of lading should be accompanied by 
the underlying carrier's ocean bill of lading. The documents shall be 
sent to the Maritime Administration, Office of Cargo and Commercial 
Sealift, MAR-620, 1200 New Jersey Avenue SE, Washington, DC 20590-0001. 
The bill of lading shall contain the following information--
    (1) Name of sponsoring Government agency or department;
    (2) Name of vessel;
    (3) Vessel flag of registry;
    (4) Date of loading;
    (5) Port of loading;
    (6) Port of final discharge;
    (7) Commodity description;
    (8) Gross weight in kilos; and
    (9) Total ocean freight revenue in U.S. dollars.

PART 1252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Sec.
Subpart 1252.1--Instructions for Using Provisions and Clauses
1252.101-70 Using this part.
Subpart 1252.2--Text of Provisions and Clauses
1252.201-70 Contracting Officer's Representative.
1252.204-70 Contractor Personnel Security and Agency Access.
1252.209-70 Organizational and Consultant Conflicts of Interest.
1252.209-71 Limitation of Future Contracting.
1252.211-70 Index for Specifications.
1252.216-70 Evaluation of Offers Subject to an Economic Price 
Adjustment Clause.
1252.216-71 Determination of Award Fee.
1252.216-72 Award Fee Plan.
1252.216-73 Distribution of Award Fee.
1252.216-74 Settlement of Letter Contract.
1252.217-70 Guarantee.
1252.217-71 Delivery and Shifting of Vessel.
1252.217-72 Performance.
1252.217-73 Inspection and Manner of Doing Work.
1252.217-74 Subcontracts.
1252.217-75 Lay Days.
1252.217-76 Liability and Insurance.
1252.217-77 Title.
1252.217-78 Discharge of Liens.
1252.217-79 Delays.
1252.217-80 Department of Labor Safety and Health Regulations for 
Ship Repair.
1252.222-70 Strikes or Picketing Affecting Timely Completion of the 
Contract Work.
1252.222-71 Strikes or Picketing Affecting Access to a DOT Facility.
1252.222-72 Contractor Cooperation in Equal Employment Opportunity 
Investigations.
1252.223-70 Removal or Disposal of Hazardous Substances--Applicable 
Licenses and Permits.
1252.223-71 Accident and Fire Reporting.
1252.223-72 Protection of Human Subjects.
1252.223-73 Seat Belt Use Policies and Programs.
1252.228-70 Loss of or Damage to Leased Aircraft.
1252.228-71 Fair Market Value of Aircraft.
1252.228-72 Risk and Indemnities.
1252.228-73 Command of Aircraft.
1252.228-74 Notification of Payment Bond Protection.
1252.231-70 Date of Incurrence of Costs.
1252.232-70 Electronic Submission of Payment Requests.
1252.232-71 Limitation of Government's Obligation.
1252.235-70 Research Misconduct.
1235.235-71 Technology Transfer.
1252.236-70 Special Precautions for Work at Operating Airports.
1252.237-70 Qualifications of Contractor Employees.
1252.237-71 Certification of Data.
1252.237-72 Prohibition on Advertising.
1252.237-73 Key Personnel.
1252.239-70 Security Requirements for Unclassified Information 
Technology Resources.
1252.239-71 Information Technology Security Plan and Accreditation.

[[Page 69515]]

1252.239-72 Compliance with Safeguarding DOT Sensitive Data 
Controls.
1252.239-73 Limitations on the Use or Disclosure of Third-Party 
Contractor Reported Cyber Incident Information.
1252.239-74 Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting.
1252.239-75 DOT Protection of Information About Individuals, PII, 
and Privacy Risk Management Requirements.
1252.239-76 Cloud Computing Services.
1252.239-77 Data Jurisdiction.
1252.239-78 Validated Cryptography for Secure Communications.
1252.239-79 Authentication, Data Integrity, and Non-Repudiation.
1252.239-80 Audit Record Retention for Cloud Service Providers.
1252.239-81 Cloud Identification and Authentication (Organizational 
Users) Multi-Factor Authentication.
1252.239-82 Identification and Authentication (Non-Organizational 
Users).
1252.239-83 Incident Reporting Timeframes.
1252.239-84 Media Transport.
1252.239-85 Personnel Screening--Background Investigations.
1252.239-86 Boundary Protection--Trusted internet Connections.
1252.239-87 Protection of Information at Rest.
1252.239-88 Security Alerts, Advisories, and Directives.
1252.239-89 Technology Modernization.
1252.239-90 Technology Upgrades/Refreshment.
1252.239-91 Records Management.
1252.239-92 Information and Communication Technology Accessibility 
Notice.
1252.239-93 Information and Communication Technology Accessibility.
1252.242-70 Dissemination of Information--Educational Institutions.
1252.242-71 Contractor Testimony.
1252.242-72 Dissemination of Contract Information.
1252.242-74 Contract Audit Support.
Subpart 1252.3--Provisions and Clauses Matrix
1252.301 Solicitation provisions and contract clauses (Matrix).

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1252.1--Instructions for Using Provisions and Clauses


1252.101-70   Using this part.

    TAR provisions or clauses that supplement the FAR shall follow the 
following numbering conventions in accordance with FAR 52.101(b)(2)(i):
    (a) Agency-prescribed provisions and clauses permitted by TAR and 
used on a standard basis (i.e., normally used in two or more 
solicitations or contracts regardless of contract type) shall be 
prescribed and contained in the TAR. Operating Administrations (OAs) 
desiring to use a provision or a clause on a standard basis shall 
submit a request containing a copy of the clause(s), justification for 
its use, and evidence of legal counsel review to the Office of the 
Senior Procurement Executive in accordance with 1201.304 for possible 
inclusion in the TAR. (See FAR 52.101(b)(2)(i)(A)).
    (b) Provisions and clauses used on a one-time basis (i.e., non-
standard provisions and clauses) may be approved by the contracting 
officer, unless a higher level is designated by the OA. (See FAR 
52.101(b)(2)(i)(C)). This authority is permitted subject to--
    (1) Evidence of legal counsel review in the contract file;
    (2) Inserting these clauses in the appropriate sections of the 
uniform contract format; and
    (3) Ensuring the provisions and clauses do not deviate from the 
requirements of the FAR and TAR.

Subpart 1252.2--Text of Provisions and Clauses


1252.201-70  Contracting Officer's Representative.

    As prescribed in 1201.604-70, insert the following clause:
Contracting Officer's Representative (DATE)
    (a) The Contracting Officer may designate Government personnel to 
act as the Contracting Officer's Representative (COR) to perform 
functions under the contract such as review and/or inspection and 
acceptance of supplies, services, including construction, and other 
functions of a technical nature. The Contracting Officer will provide a 
written notice of such designation to the Contractor within five 
working days after contract award or for construction, not less than 
five working days prior to giving the contractor the notice to proceed. 
The designation letter will set forth the authorities and limitations 
of the COR under the contract.
    (b) The Contracting Officer cannot authorize the COR or any other 
representative to sign documents (i.e., contracts, contract 
modifications, etc.) that require the signature of the Contracting 
Officer.


(End of clause)


1252.204-70   Contractor Personnel Security and Agency Access.

    As prescribed in 1204.1303, insert the following clause:
Contractor Personnel Security and Agency Access (DATE)
    (a) Definitions. As used in this clause--
    Agency access means access to DOT facilities, sensitive 
information, information systems or other DOT resources.
    Applicant means a contractor employee for whom the Contractor 
applies for a DOT identification card.
    Contractor employee means prime contractor and subcontractor 
employees who require agency access to perform work under a DOT 
contract.
    Identification card (or ``ID card'') means a government issued or 
accepted identification card such as a Personal Identity Verification 
(PIV) card, a PIV-lnteroperable (PIV-1) card from an authorized PIV-1 
issuer, or a non-PIV card issued by DOT, or a nonPIV card issued by 
another Federal agency and approved by DOT. PIV and PIV-1 cards have 
physical and electronic attributes that other (non-PIV) ID cards do not 
have.
    Issuing office means the DOT entity that issues identification 
cards to contractor employees.
    Local security servicing organization means the DOT entity that 
provides security services to the DOT organization sponsoring the 
contract.
    (b) Risk and sensitivity level designations. For contracts 
requiring access to DOT facilities, sensitive information, information 
systems or other DOT resources, contractor employees will be required 
to complete background investigations, identity proofing, and 
government identification card application procedures to determine 
suitability for access. DOT will assign a risk and sensitivity level 
designation to the overall contract and/or to contractor employee 
positions by category, group or individual. The risk and sensitivity 
level designations will be the basis for determining the level of 
personnel security processing required for contractor employees. The 
following risk and sensitivity level designations and associated level 
of processing are required and include the prior levels--
    (1) Low risk level: National Agency Check with Written Inquiries 
(NACI);
    (2) Moderate risk level: Minimum Background Investigation (MBI); 
and
    (3) High risk level: Background Investigation.
    (c) Security clearances. Contractor employees may also be required 
to obtain security clearances (i.e., Confidential, Secret, or Top 
Secret). National Security work designated ``special sensitive,'' 
``critical sensitive,'' or ``non-critical sensitive,'' will determine 
the level of clearance required for contractor employees. Personnel 
security clearances for national security contracts in DOT will be 
processed according to the

[[Page 69516]]

Department of Defense National Industrial Security Program Operating 
Manual (NISPOM).
    (d) Pre-screening of contractor employees. The Contractor must pre-
screen individuals designated for employment under any DOT contract by 
verifying minimal suitability requirements to ensure that only 
candidates that appear to meet such requirements are considered for 
contract employment, and to mitigate the burden on the Government of 
conducting background investigations on objectionable applicants. The 
Contractor must exercise due diligence in pre-screening all employees 
prior to submission to DOT for agency access. DOT may decline to grant 
agency access to a contractor employee for reasons including, but not 
limited to--
    (1) Conviction of a felony, a crime of violence, or a misdemeanor 
involving moral turpitude;
    (2) Falsification of information entered on forms or of other 
documents submitted;
    (3) Improper conduct including criminal, infamous, dishonest, 
immoral, or notoriously disgraceful conduct or other conduct adverse to 
the Government regardless of whether the conduct is directly related to 
the contract; and
    (4) Any behavior judged to pose a potential threat to DOT 
facilities, sensitive information, information systems or other 
resources.
    (e) Citizenship status. The Contractor must monitor a non-citizen's 
continued authorization for employment in the United States. The 
Contractor must provide documentation to the Contracting Officer or the 
Contracting Officer's Representative (COR) during the background 
investigation process that validates that the E-Verify requirement has 
been met for each contractor employee.
    (f) Background investigation and adjudication. A contractor 
employee must have a favorable adjudication of background investigation 
before DOT will issue an ID card to the contractor employee granting 
access to DOT facilities, sensitive information, information systems or 
other DOT resources. DOT may accept favorable adjudications of 
background investigations from other Federal agencies when applicants 
have held PIV cards issued by those agencies with no break in service. 
DOT may also accept PIV-1 (interoperable) cards issued by an authorized 
PIV-1 issuer as evidence of identity. A favorable adjudication does not 
preclude DOT from initiating a new investigation when deemed necessary. 
At a minimum, the FBI National Criminal History Check (fingerprint 
check) must be favorably completed before a DOT identification card can 
be issued. Each Contractor must use the Office of Personnel 
Management's (OPM) e-QIP system to complete any required investigative 
forms. Instructions for obtaining fingerprints will be provided by the 
COR or Contracting Officer. The DOT Office of Security, M-40, or a DOT 
organization delegated authority by M-40, is responsible for 
adjudicating the suitability of contractor employees.
    (g) Agency access denied. Upon contract award, DOT will initiate 
the agency access procedure for all contractor employees requiring 
access to DOT facilities, sensitive information, information systems 
and other DOT resources for contract performance. DOT may deny agency 
access to any individual about whom an adverse suitability 
determination is made. Failure to submit the required security 
information or to truthfully answer all questions shall constitute 
grounds for denial of access. The Contractor must not provide agency 
access to contractor employees until the COR or Contracting Officer 
provides notice of approval, which is authorized only by the DOT Office 
of Security (M-40) or a DOT organization delegated authority by M-40. 
Where a proposed contractor employee is denied agency access by the 
Government or, if for any reason a proposed application is withdrawn by 
the Contractor during the agency access process, the additional costs 
and administrative burden for conducting additional background 
investigations caused by a lack of effective prescreening or planning 
on the part of the Contractor may be considered as part of the 
Contractor's overall performance evaluation.
    (h) Identification card application process. The COR will be the 
DOT ID card Sponsor and point of contact for the Contractor's 
application for a DOT ID card. The COR shall review and approve the DOT 
ID card application before an ID card is issued to the applicant. An 
applicant may be issued either a Personal Identity Verification (PIV) 
card that meets the standards of Homeland Presidential Security 
Directive (HSPD-12), or an applicant may be issued a non-PIV card. 
Generally, a non-PIV card will be issued for contracts that expire in 
six months or less, including option periods. The COR may request the 
issuing office to waive the six-month eligibility requirement when it 
is in DOT's interest for contract performance. The following applies--
    (1) PIV card. The applicant must complete a DOT on-line application 
for a PIV card;
    (2) Non-PIV card. The applicant must complete and submit a hard 
copy of Form 1681 to the COR/Sponsor; and
    (3) Regardless of the type of card to be issued (PIV or non-PIV), 
the applicant must appear in person to provide two forms of identity 
source documents in original form to DOT. The identity source documents 
must come from the list of acceptable documents included in Form F-9, 
OMB No. 1115-0136, Employment Eligibility Verification. At least one 
document must be a valid State or Federal government-issued picture 
identification. For a PIV card, the applicant may be required to appear 
in-person a second time for enrollment and activation.
    (i) Identification card custody and control. The Contractor is 
responsible for the custody and control of all forms of government 
identification issued by DOT to contractor employees for access to DOT 
facilities, sensitive information, information systems and other DOT 
resources. The Contractor shall:
    (1) Provide a listing of personnel for whom an identification (ID) 
card is requested to the COR or PM who will provide a copy of the 
listing to the card issuing office. This may include Contractor and 
subcontractor personnel. Follow issuing office directions for submittal 
of an application package(s).
    (2) While visiting or performing work on a DOT facility, as 
specified by the issuing office, PM or COR, ensure that contractor 
employees prominently display their ID card.
    (3) Immediately notify the COR or, if the COR is unavailable, the 
Contracting Officer when a contractor employee's status changes and no 
longer requires agency access (e.g., employee's transfer, completion of 
a project, retirement, removal from work on the contract, or 
termination of employment) that may affect the employee's eligibility 
for access to the facility, sensitive information, or resources.
    (4) Promptly deliver to the issuing office: (a) All ID cards 
assigned to an employee who no longer requires access to the facility; 
and (b) all expired ID cards within five (5) days of their expiration 
or all cards at time of contract termination, whichever occurs first.
    (5) Immediately report any lost or stolen ID cards to the issuing 
office and follow its instructions.
    (i) The Contractor is responsible for maintaining and safeguarding 
the DOT ID card upon issuance to the contractor employee. The 
Contractor must ensure

[[Page 69517]]

that contractor employees comply with DOT requirements concerning the 
renewal, loss, theft, or damage of an ID card. The Contractor must 
immediately notify the COR or, if the COR is unavailable, the 
Contracting Officer when an ID card is lost, stolen or damaged.
    (ii) Failure to comply with the requirements for custody and 
control of DOT ID cards may result in withholding final payment or 
contract termination based on the potential for serious harm caused by 
inappropriate access to DOT facilities, sensitive information, 
information systems or other DOT resources.
    (iii) Specific actions and activities are required in certain 
events--
    (A) Renewal. A contractor employee's DOT issued ID card is valid 
for a maximum of three years or until the contract expiration date 
(including option periods), whichever occurs first. The renewal process 
should begin six weeks before the PIV card expiration date. If a PIV 
card is not renewed before it expires, the contractor employee will be 
required to sign-in daily for facility access and may have limited 
access to information systems and other resources.
    (B) Lost/stolen. Immediately upon detection, the Contractor or 
contractor employee must report a lost or stolen DOT ID card to the 
COR, or if the COR is unavailable, the Contracting Officer, the issuing 
office, or the local servicing security organization. The Contractor 
must submit an incident report within 48 hours, through the COR or, if 
the COR is unavailable, the Contracting Officer, the issuing office, or 
the local security servicing organization describing the circumstances 
of the loss or theft. The Contractor must also report a lost or stolen 
PIV card through the DOT on-line registration system. If the loss or 
theft is reported by the Contractor to the local police, a copy of the 
police report must be provided to the COR or Contracting Officer. From 
the date of notification to DOT, the Contractor must wait three days 
before getting a replacement ID card. During the 3-day wait period, the 
contractor employee must sign in daily for facility access.
    (C) Replacement. An ID card will be replaced if it is damaged, 
contains incorrect data, or is lost or stolen for more than 3 days, 
provided there is a continuing need for agency access to perform work 
under the contract.
    (D) Surrender of ID cards. Upon notification that routine access to 
DOT facilities, sensitive information, information systems or other DOT 
resources is no longer required, the Contractor must surrender the DOT 
issued ID card to the COR, or if the COR is unavailable, the 
Contracting Officer, the issuing office, or the local security 
servicing organization in accordance with agency procedures.
    (j) Flow down of clause. The Contractor is required to include this 
clause in any subcontracts at any tier that require the subcontractor 
or subcontractor's employees to have access to DOT facilities, 
sensitive information, information systems or other resources.


(End of clause)


1252.209-70   Organizational and Consultant Conflicts of Interest.

    As prescribed in 1209.507-270(a), the contracting officer shall 
insert a clause substantially as follows in solicitations and 
contracts:
Organizational and Consultant Conflicts of Interest (OCCI) (DATE)
    (a) An offeror shall identify in its proposal, quote, bid or any 
resulting contract, any potential or actual Organizational and 
Consultant Conflicts of Interest (OCCI) as described in FAR subpart 
9.5. This includes actual or potential conflicts of interests of 
proposed subcontractors. If an offeror identifies in its proposal, 
quote, bid or any resulting contract, a potential or actual conflict of 
interests the offeror shall submit an Organizational and Consultant 
Conflicts of Interest Plan (OCCIP) to the contracting officer. The 
OCCIP shall describe how the offeror addresses potential or actual 
conflicts of interest and identify how they will avoid, neutralize, or 
mitigate present or future conflicts of interest.
    (b) Offerors must consider whether their involvement and 
participation raises any OCCI issues, especially in the following areas 
when:
    (1) Providing systems engineering and technical direction.
    (2) Preparing specifications or work statements and/or objectives.
    (3) Providing evaluation services.
    (4) Obtaining access to proprietary information.
    (c) If a prime contractor or subcontractor breaches any of the OCCI 
restrictions, or does not disclose or misrepresents any relevant facts 
concerning its conflict of interest, the government may take 
appropriate action, including terminating the contract, in additional 
to any remedies that may be otherwise permitted by the contract or 
operation of law.


(End of clause)


1252.209-71  Limitation of Future Contracting.

    As prescribed in 1209.507-270(b), the contracting officer shall 
insert a clause substantially as follows in solicitations and 
contracts:
Limitation of Future Contracting (DATE)
    (a) The Contracting Officer has determined that this acquisition 
may give rise to a potential organizational conflict of interest. 
Accordingly, prospective offerors are encouraged to review FAR subpart 
9.5--Organizational Conflicts of Interest.
    (b) The nature of this conflict is [describe the conflict].
    (c) The restrictions upon future contracting are as follows:
    (1) If the Contractor, under the terms of this contract, or through 
the performance of tasks pursuant to this contract, is required to 
develop specifications or statements of work that are to be 
incorporated into a solicitation, the Contractor shall be ineligible to 
perform the work described in that solicitation as a prime or first-
tier subcontractor under an ensuing government contract. This 
restriction shall remain in effect for a reasonable time, as agreed to 
by the Contracting Officer and the Contractor, sufficient to avoid 
unfair competitive advantage or potential bias (this time shall in no 
case be less than the duration of the initial ensuing contract).
    (2) To the extent that the work under this contract requires access 
to proprietary, business confidential, or financial data of other 
companies, and if these data remains proprietary or confidential, the 
Contractor shall protect such data from unauthorized use and disclosure 
and agrees not to use the data to compete with those other companies.


(End of clause)


1252.211-70   Index for Specifications.

    As prescribed in 1211.204-70, insert the following clause:
Index for Specifications (DATE)
    If an index or table of contents is furnished in connection with 
specifications, such index or table of contents is for convenience 
only. Its accuracy and completeness is not guaranteed, and it is not a 
part of the specification. In case of discrepancy between the index or 
table of contents and the specifications, the specifications shall 
govern.


(End of clause)


1252.216-70  Evaluation of Offers Subject to an Economic Price 
Adjustment Clause.

    As prescribed in 1216.203-470, insert the following provision:

[[Page 69518]]

Evaluation of Offers Subject to an Economic Price Adjustment Clause 
(DATE)
    Offers shall be evaluated without an amount for an economic price 
adjustment being added. Offers will be rejected that--(1) increase the 
ceiling stipulated; (2) limit the downward adjustment; or (3) delete 
the economic price adjustment clause. If the offer stipulates a ceiling 
lower than that included in the solicitation, the lower ceiling will be 
incorporated into any resulting contract.


(End of provision)


1252.216-71  Determination of Award Fee.

    As prescribed in 1216.406-70(a), insert the following clause:
Determination of Award Fee (DATE)
    (a) The Government shall evaluate Contractor performance at the end 
of each specified evaluation period to determine the amount of award. 
The contractor agrees that the amount of award and the award fee 
determination methodology are unilateral decisions to be made at the 
sole discretion of the Government.
    (b) Contractor performance shall be evaluated according to the 
Award Fee Plan. The Contractor shall be periodically informed of the 
quality of its performance and areas in which improvements are 
expected.
    (c) The contractor shall be promptly advised, in writing, of the 
determination and reasons why the award fee was or was not earned. The 
Contractor may submit a performance self-evaluation for each evaluation 
period. The amount of award is at the sole discretion of the Government 
but any self-evaluation received within ___ (insert number) days after 
the end of the current evaluation period will be given such 
consideration, as may be deemed appropriate by the Government.
    (d) The amount of award fee that can be awarded in each evaluation 
period is limited to the amounts set forth at _____ (identify location 
of award fee amounts). Award fee that is not earned in an evaluation 
period cannot be reallocated to future evaluation periods.


(End of clause)


1252.216-72  Award Fee Plan.

    As prescribed in 1216.406-70(b), insert the following clause:
Award Fee Plan (DATE)
    (a) An Award Fee Plan shall be unilaterally established by the 
Government based on the criteria stated in the contract and used for 
the determination of award fee. This plan shall include the criteria 
used to evaluate each area and the percentage of award fee, if any, 
available for each area. A copy of the plan shall be provided to the 
Contractor _____ (insert number) calendar days prior to the start of 
the first evaluation period.
    (b) The criteria contained within the Award Fee Plan may relate to: 
(1) Technical (including schedule) requirements, if appropriate; (2) 
Management; and (3) Cost.
    (c) The Award Fee Plan may, consistent with the contract, be 
revised unilaterally by the Government at any time during the period of 
performance. Notification of such changes shall be provided to the 
Contractor _____ (insert number) calendar days prior to the start of 
the evaluation period to which the change will apply.


(End of clause)


1252.216-73  Distribution of Award Fee.

    As prescribed in 1216.406-70(c), insert the following clause:
Distribution of Award Fee (DATE)
    (a) The total amount of award fee available under this contract is 
assigned according to the following evaluation periods and amounts--
    Evaluation Period:
    Available Award Fee:


[Contracting Officer insert appropriate information]

    (b) After the Contractor has been paid 85 percent of the base fee 
and potential award fee, the Government may withhold further payment of 
the base fee and award fee until a reserve is set aside in an amount 
that the Government considers necessary to protect its interest. This 
reserve shall not exceed 15 percent of the total base fee and potential 
award fee or $150,000, whichever is less. Thereafter, base fee and 
award fee payments may continue.
    (c) In the event of contract termination, either in whole or in 
part, the amount of award fee available shall represent a prorata 
distribution associated with evaluation period activities or events as 
determined by the Government.
    (d) The Government will promptly make payment of any award fee upon 
the submission by the Contractor to the Contracting Officer's 
Representative, of a public voucher or invoice in the amount of the 
total fee earned for the period evaluated. Payment may be made without 
using a contract modification.


(End of clause)


1252.216-74   Settlement of Letter Contract.

    As prescribed in 1216.603-4, insert the following clause:
Settlement of Letter Contract (DATE)
    (a) This contract constitutes the definitive contract contemplated 
by issuance of letter contract _______________ [insert number] dated 
_______________ [insert effective date]. It supersedes the letter 
contract and its modification number(s) _______________ [insert 
number(s)] and, to the extent of any inconsistencies, governs.
    (b) The cost(s) and fee(s), or price(s), established in this 
definitive contract represents full and complete settlement of letter 
contract _______________ [insert number] and modification number(s) 
_______________ [insert number(s)]. Payment of the agreed upon fee or 
profit withheld pending definitization of the letter contract, may 
commence immediately at the rate and times stated within this contract.


(End of clause)


 1252.217-70   Guarantee.

    As prescribed at 1217.7001(a), insert the following clause:
Guarantee (DATE)
    (a) In the event any work performed or materials furnished by the 
Contractor prove defective or deficient within 60 days from the date of 
redelivery of the vessel(s), the Contractor, as directed by the 
Contracting Officer and at its own expense, shall correct and repair 
the deficiency in accordance with the contract terms and conditions.
    (b) If the Contractor or any subcontractor has a guarantee for work 
performed or materials furnished that exceeds the 60-day period, the 
Government shall be entitled to rely upon the longer guarantee until 
its expiration.
    (c) With respect to any individual work item identified as 
incomplete at the time of redelivery of the vessel(s), the guarantee 
period shall run from the date the item is completed.
    (d) If practicable, the Government shall give the Contractor an 
opportunity to correct the deficiency.
    (1) If the Contracting Officer determines it is not practicable or 
is otherwise not advisable to return the vessel(s) to the Contractor, 
or the Contractor fails to proceed with the repairs promptly, the 
Contracting Officer may direct that the repairs be performed elsewhere, 
at the Contractor's expense.

[[Page 69519]]

    (2) If correction and repairs are performed by other than the 
Contractor, the Contracting Officer may discharge the Contractor's 
liability by making an equitable deduction in the price of the 
contract.
    (e) The Contractor's liability shall extend for an additional 90-
day guarantee period on those defects or deficiencies that the 
Contractor corrected.
    (f) At the option of the Contracting Officer, defects and 
deficiencies may be left uncorrected. In that event, the Contractor and 
Contracting Officer shall negotiate an equitable reduction in the 
contract price. Failure to agree upon an equitable reduction shall 
constitute a dispute under the Disputes clause of this contract.


(End of clause)


1252.217-71   Delivery and Shifting of Vessel.

    As prescribed at 1217.7001(b), insert the following clause:
Delivery and Shifting of Vessel (DATE)
    The Government shall deliver the vessel to the Contractor at his 
place of business. Upon completion of the work, the Government shall 
accept delivery of the vessel at the Contractor's place of business. 
The Contractor shall provide, at no additional charge, upon 24 hours' 
advance notice, a tug or tugs and docking pilot, acceptable to the 
Contracting Officer, to assist in handling the vessel between (to and 
from) the Contractor's plant and the nearest point in a waterway 
regularly navigated by vessels of equal or greater draft and length. 
While the vessel is in the hands of the Contractor, any necessary 
towage, cartage, or other transportation between ship and shop or 
elsewhere, which may be incident to the work herein specified, shall be 
furnished by the Contractor without additional charge to the 
Government.


(End of clause)


1252.217-72   Performance.

    As prescribed at 1217.7001(b), insert the following clause:
Performance (DATE)
    (a) Upon the award of the contract, the Contractor shall promptly 
start the work specified and shall diligently prosecute the work to 
completion. The Contractor shall not start work until the contract has 
been awarded except in the case of emergency work ordered by the 
Contracting Officer in writing.
    (b) The Government shall deliver the vessel described in the 
contract at the time and location specified in the contract. Upon 
completion of the work, the Government shall accept delivery of the 
vessel at the time and location specified in the contract.
    (c) The Contractor shall without charge--
    (1) Make available to personnel of the vessel while in dry dock or 
on a marine railway, sanitary lavatory and similar facilities at the 
plant acceptable to the Contracting Officer;
    (2) Supply and maintain suitable brows and gangways from the pier, 
dry dock, or marine railway to the vessel;
    (3) Treat salvage, scrap or other ship's material of the Government 
resulting from performance of the work as items of Government-furnished 
property, in accordance with clause 52.245-1, Government Property;
    (4) Perform, or pay the cost of, any repair, reconditioning or 
replacement made necessary as the result of the use by the Contractor 
of any of the vessel's machinery, equipment or fittings, including, but 
not limited to, winches, pumps, rigging, or pipe lines; and
    (5) Furnish suitable offices, office equipment and telephones at or 
near the site of the work for the Government's use.
    (d) The contract will state whether dock and sea trials are 
required to determine whether or not the Contractor has satisfactorily 
performed the work.
    (1) If dock and sea trials are required, the vessel shall be under 
the control of the vessel's commander and crew.
    (2) The Contractor shall not conduct dock and sea trials not 
specified in the contract without advance approval of the Contracting 
Officer. Dock and sea trials not specified in the contract shall be at 
the Contractor's expense and risk.
    (3) The Contractor shall provide and install all fittings and 
appliances necessary for dock and sea trials. The Contractor shall be 
responsible for care, installation, and removal of instruments and 
apparatus furnished by the Government for use in the trials.


(End of clause)


1252.217-73   Inspection and Manner of Doing Work.

    As prescribed at 1217.7001(b), insert the following clause:
Inspection and Manner of Doing Work (DATE)
    (a) The Contractor shall perform work in accordance with the 
contract, any drawings and specifications made a part of the job order, 
and any change or modification issued under the Changes clause.
    (b)(1) Except as provided in paragraph (b)(2) of this clause, and 
unless otherwise specifically provided in the contract, all operational 
practices of the Contractor and all workmanship, material, equipment, 
and articles used in the performance of work under this contract shall 
be in accordance with the best commercial marine practices and the 
rules and requirements of all appropriate regulatory bodies including, 
but not limited to the American Bureau of Shipping, the U.S. Coast 
Guard, and the Institute of Electrical and Electronic Engineers, in 
effect at the time of Contractor's submission of offer, and shall be 
intended and approved for marine use.
    (2) When Navy specifications are specified in the contract, the 
Contractor shall follow Navy standards of material and workmanship. The 
solicitation shall prescribe the Navy standard whenever applicable.
    (c) The Government may inspect and test all material and 
workmanship at any time during the Contractor's performance of the 
work.
    (1) If, prior to delivery, the Government finds any material or 
workmanship is defective or not in accordance with the contract, in 
addition to its rights under the Guarantee clause, the Government may 
reject the defective or nonconforming material or workmanship and 
require the Contractor to correct or replace it at the Contractor's 
expense.
    (2) If the Contractor fails to proceed promptly with the 
replacement or correction of the material or workmanship, the 
Government may replace or correct the defective or nonconforming 
material or workmanship and charge the Contractor the excess costs 
incurred.
    (3) As specified in the contract, the Contractor shall provide and 
maintain an inspection system acceptable to the Government.
    (4) The Contractor shall maintain complete records of all 
inspection work and shall make them available to the Government during 
performance of the contract and for 90 days after the completion of all 
work required.
    (d) The Contractor shall not permit any welder to work on a vessel 
unless the welder is, at the time of the work, qualified to the 
standards established by the U.S. Coast Guard, American Bureau of 
Shipping, or Department of the Navy for the type of welding being 
performed. Qualifications of a welder shall be as specified in the 
contract.
    (e) The Contractor shall--
    (1) Exercise reasonable care to protect the vessel from fire;
    (2) Maintain a reasonable system of inspection over activities 
taking place in the vicinity of the vessel's magazines, fuel oil tanks, 
or storerooms containing flammable materials.

[[Page 69520]]

    (3) Maintain a reasonable number of hose lines ready for immediate 
use on the vessel at all times while the vessel is berthed alongside 
the Contractor's pier or in dry dock or on a marine railway;
    (4) Unless otherwise provided in the contract, provide sufficient 
security patrols to reasonably maintain a fire watch for protection of 
the vessel when it is in the Contractor's custody;
    (5) To the extent necessary, clean, wash, and steam out or 
otherwise make safe, all tanks under alteration or repair.
    (6) Furnish the Contracting Officer a ``gas-free'' or ``safe-for-
hotwork'' certificate before any hot work is done on a tank;
    (7) Treat the contents of any tank as Government property in 
accordance with the clause 52.245-1, Government Property; and
    (8) Dispose of the contents of any tank only at the direction, or 
with the concurrence, of the Contracting Officer.
    (9) Be responsible for the proper closing of all openings to the 
vessel's underwater structure upon which work has been performed. The 
Contractor additionally must advise the COR of the status of all valves 
closures and openings for which the Contractor's workers were 
responsible.
    (f) Except as otherwise provided in the contract, when the vessel 
is in the custody of the Contractor or in dry dock or on a marine 
railway and the temperature is expected to go as low as 35 Fahrenheit, 
the Contractor shall take all necessary steps to--
    (1) Keep all hose pipe lines, fixtures, traps, tanks, and other 
receptacles on the vessel from freezing; and
    (2) Protect the stern tube and propeller hubs from frost damage.
    (g) The Contractor shall, whenever practicable--
    (1) Perform the required work in a manner that will not interfere 
with the berthing and messing of Government personnel attached to the 
vessel; and
    (2) Provide Government personnel attached to the vessel access to 
the vessel at all times.
    (h) Government personnel attached to the vessel shall not interfere 
with the Contractor's work or workers.
    (i)(1) The Government does not guarantee the correctness of the 
dimensions, sizes, and shapes set forth in any contract, sketches, 
drawings, plans, or specifications prepared or furnished by the 
Government, unless the contract requires that the Contractor perform 
the work prior to any opportunity to inspect.
    (2) Except as stated in paragraph (i)(1) of this clause, and other 
than those parts furnished by the Government, and the Contractor shall 
be responsible for the correctness of the dimensions, sizes, and shapes 
of parts furnished under this contract.
    (j) The Contractor shall at all times keep the site of the work on 
the vessel free from accumulation of waste material or rubbish caused 
by its employees or the work. At the completion of the work, unless the 
contract specifies otherwise, the Contractor shall remove all rubbish 
from the site of the work and leave the immediate vicinity of the work 
area ``broom clean.''


(End of clause)


1252.217-74   Subcontracts.

    As prescribed at 1217.7001(b), insert the following clause:
Subcontracts (DATE)
    (a) Nothing contained in the contract shall be construed as 
creating any contractual relationship between any subcontractor and the 
Government. The divisions or sections of the specifications are not 
intended to control the Contractor in dividing the work among 
subcontractors or to limit the work performed by any trade.
    (b) The Contractor shall be responsible to the Government for acts 
and omissions of its own employees, and of subcontractors and their 
employees. The Contractor shall also be responsible for the 
coordination of the work of the trades, subcontractors, and material 
men.
    (c) The Contractor shall, without additional expense to the 
Government, employ specialty subcontractors where required by the 
specifications.
    (d) The Government or its representatives will not undertake to 
settle any differences between the Contractor and its subcontractors, 
or any differences between subcontractors.


(End of clause)


1252.217-75   Lay Days.

    As prescribed at 1217.7001(c), insert the following clause:
Lay Days (DATE)
    (a) Lay day time will be paid by the Government at the Contractor's 
stipulated bid price for this item of the contract when the vessel 
remains on the dry dock or marine railway as a result of any change 
that involves work in addition to that required under the basic 
contract.
    (b) No lay day time shall be paid until all items of the basic 
contract for which a price was established by the Contractor and for 
which docking of the vessel was required have been satisfactorily 
completed and accepted.
    (c) Days of hauling out and floating, whatever the hour, shall not 
be paid as lay day time, and days when no work is performed by the 
Contractor shall not be paid as lay day time.
    (d) Payment of lay day time shall constitute complete compensation 
for all costs, direct and indirect, to reimburse the Contractor for use 
of dry dock or marine railway.


(End of clause)


1252.217-76   Liability and Insurance.

    As prescribed at 1217.7001(b), insert the following clause:
Liability and Insurance (DATE)
    (a) The Contractor shall exercise its best efforts to prevent 
accidents, injury, or damage to all employees, persons, and property, 
in and about the work, and to the vessel or part of the vessel upon 
which work is done.
    (b) Loss or damage to the vessel, materials, or equipment. (1) 
Unless otherwise directed or approved in writing by the Contracting 
Officer, the Contractor shall not carry insurance against any form of 
loss or damage to the vessel(s) or to the materials or equipment to 
which the Government has title or which have been furnished by the 
Government for installation by the Contractor. The Government assumes 
the risks of loss of and damage to that property.
    (2) The Government does not assume any risk with respect to loss or 
damage compensated for by insurance or otherwise or resulting from 
risks with respect to which the Contractor has failed to maintain 
insurance, if available, as required or approved by the Contracting 
Officer.
    (3) The Government does not assume risk of and will not pay for any 
costs of the following:
    (i) Inspection, repair, replacement, or renewal of any defects in 
the vessel(s) or material and equipment due to--
    (A) Defective workmanship performed by the Contractor or its 
subcontractors;
    (B) Defective materials or equipment furnished by the Contractor or 
its subcontractors; or
    (C) Workmanship, materials, or equipment which do not conform to 
the requirements of the contract, whether or not the defect is latent 
or whether or not the nonconformance is the result of negligence.
    (ii) Loss, damage, liability, or expense caused by, resulting from, 
or incurred as a consequence of any delay or disruption, willful 
misconduct or lack of good faith by the Contractor or any of its 
representatives that have supervision or direction of--

[[Page 69521]]

    (A) All or substantially all of the Contractor's business; or
    (B) All or substantially all of the Contractor's operation at any 
one plant.
    (4) As to any risk that is assumed by the Government, the 
Government shall be subrogated to any claim, demand or cause of action 
against third parties that exists in favor of the Contractor. If 
required by the Contracting Officer, the Contractor shall execute a 
formal assignment or transfer of the claim, demand, or cause of action.
    (5) No party other than the Contractor shall have any right to 
proceed directly against the Government or join the Government as a 
codefendant in any action.
    (6) Notwithstanding the foregoing, the Contractor shall bear the 
first $5,000 of loss or damage from each occurrence or incident, the 
risk of which the Government would have assumed under the provision of 
this paragraph (b).
    (c) Indemnification. The Contractor indemnifies the Government and 
the vessel and its owners against all claims, demands, or causes of 
action to which the Government, the vessel or its owner(s) might be 
subject as a result of damage or injury (including death) to the 
property or person of anyone other than the Government or its 
employees, or the vessel or its owner, arising in whole or in part from 
the negligence or other wrongful act of the Contractor, or its agents 
or employees, or any subcontractor, or its agents or employees.
    (1) The Contractor's obligation to indemnify under this paragraph 
shall not exceed the sum of $300,000 as a consequence of any single 
occurrence with respect to any one vessel.
    (2) The indemnity includes, without limitation, suits, actions, 
claims, costs, or demands of any kind, resulting from death, personal 
injury, or property damage occurring during the period of performance 
of work on the vessel or within 90 days after redelivery of the vessel. 
For any claim, etc., made after 90 days, the rights of the parties 
shall be as determined by other provisions of this contract and by law. 
The indemnity does apply to death occurring after 90 days where the 
injury was received during the period covered by the indemnity.
    (d) Insurance. (1) The Contractor shall, at its own expense, obtain 
and maintain the following insurance--
    (i) Casualty, accident, and liability insurance, as approved by the 
Contracting Officer, insuring the performance of its obligations under 
paragraph (c) of this clause.
    (ii) Workers Compensation Insurance (or its equivalent) covering 
the employees engaged on the work.
    (2) The Contractor shall ensure that all subcontractors engaged on 
the work obtain and maintain the insurance required in paragraph (d)(1) 
of this clause.
    (3) Upon request of the Contracting Officer, the Contractor shall 
provide evidence of the insurance required by paragraph (d) of this 
clause.
    (e) The Contractor shall not make any allowance in the contract 
price for the inclusion of any premium expense or charge for any 
reserve made on account of self-insurance for coverage against any risk 
assumed by the Government under this clause.
    (f) The Contractor shall give the Contracting Officer written 
notice as soon as practicable after the occurrence of a loss or damage 
for which the Government has assumed the risk.
    (1) The notice shall contain full details of the loss or damage.
    (2) If a claim or suit is later filed against the Contractor as a 
result of the event, the Contractor shall immediately deliver to the 
Government every demand, notice, summons, or other process received by 
the Contractor or its employees or representatives.
    (3) The Contractor shall cooperate with the Government and, upon 
request, shall assist in effecting settlements, securing and giving 
evidence, obtaining the attendance of witnesses, and in the conduct of 
suits. The Government shall reimburse the Contractor for expenses 
incurred in this effort, other than the cost of maintaining the 
Contractor's usual organization.
    (4) The Contractor shall not, except at its own expense, 
voluntarily make any payments, assume any obligation, or incur any 
expense other than what would be imperative for the protection of the 
vessel(s) at the time of the event.
    (g) In the event of loss of or damage to any vessel(s), material, 
or equipment which may result in a claim against the Government under 
the insurance provisions of this contract, the Contractor shall 
promptly notify the Contracting Officer of the loss or damage. The 
Contracting Officer may, without prejudice to any right of the 
Government, either--
    (1) Order the Contractor to proceed with replacement or repair, in 
which event the Contractor shall effect the replacement or repair;
    (i) The Contractor shall submit to the Contracting Officer a 
request for reimbursement of the cost of the replacement or repair 
together with whatever supporting documentation the Contracting Officer 
may reasonably require, and shall identify the request as being 
submitted under the Insurance clause of this contract.
    (ii) If the Government determines that the risk of the loss or 
damage is within the scope of the risks assumed by the Government under 
this clause, the Government will reimburse the Contractor for the 
reasonable allowable cost of the replacement or repair, plus a 
reasonable profit (if the work or replacement or repair was performed 
by the Contractor) less the deductible amount specified in paragraph 
(b) of this clause.
    (iii) Payments by the Government to the Contractor under this 
clause are outside the scope of and shall not affect the pricing 
structure of the contract, and are additional to the compensation 
otherwise payable to the Contractor under this contract; or
    (2) Decide that the loss or damage shall not be replaced or 
repaired and in that event, the Contracting Officer shall--
    (i) Modify the contract appropriately, consistent with the reduced 
requirements reflected by the unreplaced or unrepaired loss or damage; 
or
    (ii) Terminate the repair of any part or all of the vessel(s) under 
the Termination for Convenience of the Government clause of this 
contract.


(End of clause)


1252.217-77   Title.

    As prescribed at 1217.7001(b), insert the following clause:
Title (DATE)
    (a) Unless otherwise provided, title to all materials and equipment 
to be incorporated in a vessel in the performance of this contract 
shall vest in the Government upon delivery at the location specified 
for the performance of the work.
    (b) Upon completion of the contract, or with the approval of the 
Contracting Officer during performance of the contract, all Contractor-
furnished materials and equipment not incorporated in, or placed on, 
any vessel, shall become the property of the Contractor, unless the 
Government has reimbursed the Contractor for the cost of the materials 
and equipment.
    (c) The vessel, its equipment, movable stores, cargo, or other 
ship's materials shall not be considered Government-furnished property.


(End of clause)


1252.217-78   Discharge of Liens.

    As prescribed at 1217.7001(b), insert the following clause:

[[Page 69522]]

Discharge of Liens (DATE)
    (a) The Contractor shall immediately discharge or cause to be 
discharged, any lien or right in rem of any kind, other than in favor 
of the Government, that exists or arises in connection with work done 
or materials furnished under this contract.
    (b) If any such lien or right in rem is not immediately discharged, 
the Government, at the expense of the Contractor, may discharge, or 
cause to be discharged, the lien or right.


(End of clause)


1252.217-79   Delays.

    As prescribed at 1217.7001(b), insert the following clause:
Delays (DATE)
    When during the performance of this contract the Contractor is 
required to delay work on a vessel temporarily, due to orders or 
actions of the Government respecting stoppage of work to permit 
shifting the vessel, stoppage of hot work to permit bunkering, stoppage 
of work due to embarking or debarking passengers and loading or 
discharging cargo, and the Contractor is not given sufficient advance 
notice or is otherwise unable to avoid incurring additional costs on 
account thereof, an equitable adjustment shall be made in the price of 
the contract pursuant to the ``Changes'' clause.


(End of clause)


1252.217-80   Department of Labor Safety and Health Regulations for 
Ship Repair.

    As prescribed at 1217.7001(b), insert the following clause:
Department of Labor Safety and Health Regulations for Ship Repair 
(DATE)
    Nothing contained in this contract shall relieve the Contractor of 
any obligations it may have to comply with--
    (a) The Occupational Safety and Health Act of 1970 (29 U.S.C. 651, 
et seq.);
    (b) The Occupational Safety and Health Standards for Shipyard 
Employment (29 CFR part 1915); or
    (c) Any other applicable Federal, State, and local laws, codes, 
ordinances, and regulations.


(End of clause)


1252.222-70  Strikes or Picketing Affecting Timely Completion of the 
Contract Work.

    As prescribed in 1222.101-71(a), insert the following clause:
Strikes or Picketing Affecting Timely Completion of the Contract Work 
(DATE)
    Notwithstanding any other provision hereof, the Contractor is 
responsible for delays arising out of labor disputes, including but not 
limited to strikes, if such strikes are reasonably avoidable. A delay 
caused by a strike or by picketing which constitutes an unfair labor 
practice is not excusable unless the Contractor takes all reasonable 
and appropriate action to end such a strike or picketing, such as the 
filing of a charge with the National Labor Relations Board, the use of 
other available Government procedures, and the use of private boards or 
organizations for the settlement of disputes.


(End of clause)


1252.222-71  Strikes or Picketing Affecting Access to a DOT Facility.

    As prescribed in 1222.101-71(b), insert the following clause:
Strikes or Picketing Affecting Access to a DOT Facility (DATE)
    If the Contracting Officer notifies the Contractor in writing that 
a strike or picketing--(a) Is directed at the Contractor or 
subcontractor or any employee of either; and (b) Impedes or threatens 
to impede access by any person to a DOT facility where the site of the 
work is located, the Contractor shall take all appropriate action to 
end such strike or picketing, including, if necessary, the filing of a 
charge of unfair labor practice with the National Labor Relations Board 
or the use of other available judicial or administrative remedies.


(End of clause)


1252.222-72   Contractor Cooperation in Equal Employment Opportunity 
and Anti-Harassment Investigations.

    As prescribed in 1222.810-70, insert the following clause:
Contractor Cooperation in Equal Employment Opportunity and Anti-
Harassment Investigations (DATE)
    (a) Definitions. As used in this clause--
    Complaint means a formal or informal complaint that has been filed 
with DOT management, DOT agency Equal Employment Opportunity (EEO) 
officials, the Equal Employment Opportunity Commission (EEOC), the 
Office of Federal Contract Compliance Programs (OFCCP) or a court of 
competent jurisdiction.
    Contractor employee means all current Contractor employees who work 
or worked under this contract. The term also includes current employees 
of subcontractors who work or worked under this contract. In the case 
of Contractor and subcontractor employees who worked under this 
contract, but who are no longer employed by the Contractor or 
subcontractor, or who have been assigned to another entity within the 
Contractor's or subcontractor's organization, the Contractor shall 
provide DOT with that employee's last known mailing address, email 
address, and telephone number, if that employee has been identified as 
a witness in an EEO or Anti-Harassment complaint or investigation.
    Good faith cooperation means, but is not limited to, making 
Contractor employees available, with the presence or assistance of 
counsel as deemed appropriate by the Contractor, for:
    (1) Formal and informal interviews by EEO counselors, the OFCCP, or 
other Agency officials processing EEO or Anti-Harassment complaints;
    (2) Formal or informal interviews by EEO investigators charged with 
investigating complaints of unlawful discrimination filed by Federal 
employees;
    (3) Reviewing and signing appropriate affidavits or declarations 
summarizing statements provided by such Contractor employees during the 
course of EEO or Anti-Harassment investigations;
    (4) Producing documents requested by EEO counselors, EEO 
investigators, OFCCP investigators, Agency employees, or the EEOC in 
connection with a pending EEO or Anti-Harassment complaint; and
    (5) Preparing for and providing testimony in depositions or in 
hearings before the MSPB, EEOC, OFCCP, and U.S. District Court.
    (b) Cooperation with investigations. In addition to complying with 
the clause at FAR 52.222-26, Equal Opportunity, the Contractor shall, 
in good faith, cooperate with the Department of Transportation in 
investigations of Equal Employment Opportunity (EEO) complaints 
processed pursuant to 29 CFR part 1614 and internal Anti-Harassment 
investigations.
    (c) Compliance. Failure on the part of the Contractor or its 
subcontractors to comply with the terms of this clause may be grounds 
for the Contracting Officer to terminate this contract for default or 
for cause in accordance with the termination clauses in the contract.
    (d) Subcontract flowdown. The Contractor shall include the 
provisions of this clause in all subcontract solicitations and 
subcontracts awarded, at any tier, under this contract.


(End of clause)

[[Page 69523]]

1252.223-70  Removal or Disposal of Hazardous Substances--Applicable 
Licenses and Permits.

    As prescribed in 1223.303, insert the following clause:

Removal or Disposal of Hazardous Substances--Applicable Licenses and 
Permits (Date)

    The Contractor has __ or does not have __ [Contractor check 
applicable response] all licenses and permits required by Federal, 
state, and local laws to perform hazardous substance(s) removal or 
disposal services. If the Contractor does not currently possess these 
documents, it must obtain all requisite licenses and permits within __ 
[Contracting Officer insert number] calendar days after date of award. 
The Contractor shall provide evidence of said documents to the 
Contracting Officer or designated Government representative prior to 
commencement of work under the contract.


(End of clause)


1252.223-71  Accident and Fire Reporting.

    As prescribed in 1223.7000(a), insert the following clause:
Accident and Fire Reporting (DATE)
    (a) The Contractor shall report to the Contracting Officer any 
accident or fire occurring at the site of the work which causes--
    (1) A fatality or as much as one lost workday on the part of any 
employee of the Contractor or subcontractor at any tier;
    (2) Damage of $1,000 or more to Government-owned or leased 
property, either real or personal;
    (3) Damage of $1,000 or more to Contractor or subcontractor owned 
or leased motor vehicles or mobile equipment; or
    (4) Damage for which a contract time extension may be requested.
    (b) Accident and fire reports required by paragraph (a) of this 
section shall be accomplished by the following means:
    (1) Accidents or fires resulting in a death, hospitalization of 
five or more persons, or destruction of Government-owned or leased 
property (either real or personal), the total value of which is 
estimated at $100,000 or more, shall be reported immediately by 
telephone to the Contracting Officer or his/her authorized 
representative and shall be confirmed in writing within 24 hours to the 
Contracting Officer. Such report shall state all known facts as to 
extent of injury and damage and as to cause of the accident or fire.
    (2) Other accident and fire reports required by paragraph (a) of 
this section may be reported by the Contractor using a state, private 
insurance carrier, or Contractor accident report form which provides 
for the statement of--
    (i) The extent of injury; and
    (ii) The damage and cause of the accident or fire.
    Such report shall be mailed or otherwise delivered to the 
Contracting Officer within 48 hours of the occurrence of the accident 
or fire.
    (c) The Contractor shall assure compliance by subcontractors at all 
tiers with the requirements of this clause.


(End of clause)


1252.223-72  Protection of Human Subjects.

    As prescribed in 1223.7000(b), insert the following clause:
Protection of Human Subjects (DATE)
    (a) The Contractor shall comply with 49 CFR part 11, DOT's 
regulations for the protection of human subjects participating in 
activities supported directly or indirectly by contracts from DOT. In 
addition, the Contractor shall comply with any DOT Operating 
Administration (OA)-specific policies and procedures on the protection 
of human subjects.
    (b) To demonstrate compliance with the subject DOT regulations and 
to protect human subjects, the Contractor shall ensure the following:
    (1) The Contractor shall establish and maintain a committee 
competent to review projects and activities that involve human 
subjects.
    (2) The committee shall be assigned responsibility to determine, 
for each activity planned and conducted, that--
    (i) The rights and welfare of subjects are adequately protected;
    (ii) The risks to subjects are outweighed by potential benefits; 
and
    (iii) The informed consent of subjects shall be obtained by methods 
that are adequate and appropriate.
    (3) Committee reviews shall be conducted with objectivity and in a 
manner to ensure the exercise of independent judgment of the members. 
Members shall be excluded from review of projects or activities in 
which they have an active role or a conflict of interests.
    (4) Continuing constructive communication between the committee and 
the project directors must be maintained as a means of safeguarding the 
rights and welfare of subjects.
    (5) Facilities and professional attention required for subjects who 
may suffer physical, psychological, or other injury as a result of 
participating in an activity shall be provided.
    (6) The committee shall maintain records of committee review of 
applications and active projects, of documentation of informed consent, 
and of other documentation that may pertain to the selection, 
participation, and protection of subjects. Detailed records shall be 
maintained of circumstances of any review that adversely affects the 
rights or welfare of the individual subjects. Such materials shall be 
made available to DOT upon request.
    (7) The retention period of such records and materials shall be as 
specified at FAR 4.703.
    (c) Periodic reviews shall be conducted by the Contractor to 
assure, through appropriate administrative overview, that the practices 
and procedures designed for the protection of the rights and welfare of 
subjects are being effectively applied.
    (d) If the Contractor has or maintains a relationship with a 
Department of Health and Human Services approved Institutional Review 
Board (IRB) which can appropriately review this contract in accordance 
with the technical requirements and any applicable OA policies and 
procedures that apply, that IRB will be considered acceptable for the 
purposes of this contract.


(End of clause)


1252.223-73  Seat Belt Use Policies and Programs.

    As prescribed in 1223.7000(c), insert the following clause:
Seat Belt Use Policies and Programs (DATE)
    In accordance with Executive Order 13043, Increasing Seat Belt Use 
in the United States, dated April 16, 1997, the Contractor is 
encouraged to adopt and enforce on-the-job seat belt use policies and 
programs for its employees when operating company-owned, rented, or 
personally-owned vehicles. The National Highway Traffic Safety 
Administration (NHTSA) is responsible for providing leadership and 
guidance in support of this Presidential initiative. For information on 
how to implement such a program or for statistics on the potential 
benefits and cost-savings to your company or organization, please visit 
the Click it or Ticket seat belt safety section of NHTSA's website at 
https://www.nhtsa.gov/campaign/click-it-or-ticket and https://www.nhtsa.gov/risky-driving/seat-belts. Additional resources are 
available from the Network of Employers for Traffic Safety (NETS), a 
public-private partnership headquartered in the Washington, DC 
metropolitan area which partners with NHTSA, and is dedicated to 
improving the traffic safety practices of employers and employees (see 
https://

[[Page 69524]]

trafficsafety.org/). NETS provides access to a simple, user friendly 
program tool kit at [https://trafficsafety.org/road-safety-resources/public-resources/2seconds2click-seat-belt-campaign/.


(End of clause)


1252.228-70  Loss of or Damage to Leased Aircraft.

    As prescribed in 1228.306-70(a), insert the following clause:
Loss of or Damage to Leased Aircraft (DATE)
    (a) Except normal wear and tear, the Government assumes all risk of 
loss of, or damage to, the leased aircraft during the term of this 
lease while the aircraft is in the possession of the Government.
    (b) In the event of damage to the aircraft, the Government, at its 
option, shall make the necessary repairs with its own facilities or by 
contract, or pay the Contractor the reasonable cost of repair of the 
aircraft.
    (c) In the event the aircraft is lost or damaged beyond repair, the 
Government shall pay the Contractor a sum equal to the fair market 
value of the aircraft at the time of such loss or damage, which value 
may be specifically agreed to in clause 1252.228-71, Fair Market Value 
of Aircraft, less the salvage value of the aircraft. However, the 
Government may retain the damaged aircraft or dispose of it as it 
wishes. In that event, the Contractor will be paid the fair market 
value of the aircraft as stated in the clause.
    (d) The Contractor agrees that the contract price does not include 
any cost attributable to hull insurance or to any reserve fund it has 
established to protect its interest in the aircraft. If, in the event 
of loss or damage to the leased aircraft, the Contractor receives 
compensation for such loss or damage in any form from any source, the 
amount of such compensation shall be--
    (1) Credited to the Government in determining the amount of the 
Government's liability; or
    (2) For an increment of value of the aircraft beyond the value for 
which the Government is responsible.
    (e) In the event of loss of or damage to the aircraft, the 
Government shall be subrogated to all rights of recovery by the 
Contractor against third parties for such loss or damage and the 
Contractor shall promptly assign such rights in writing to the 
Government.


(End of clause)


1252.228-71  Fair Market Value of Aircraft.

    As prescribed in 1228.306-70(a), insert the following clause:
Fair Market Value of Aircraft (DATE)
    For purposes of clause 1252.228-70, Loss of or Damage to Leased 
Aircraft, the fair market value of the aircraft to be used in the 
performance of this contract shall be the lesser of the two values set 
out in paragraphs (a) and (b) below--
    (a) $____________; [Contracting Officer insert value] or
    (b) If the Contractor has insured the same aircraft against loss or 
destruction in connection with other operations, the amount of such 
insurance coverage on the date of the loss or damage for which the 
Government may be responsible under this contract.


(End of clause)


1252.228-72  Risk and Indemnities.

    As prescribed in 1228.306-70(a) and (d), insert the following 
clause:
Risk and Indemnities (DATE)
    The Contractor hereby agrees to indemnify and hold harmless the 
Government, its officers and employees from and against all claims, 
demands, damages, liabilities, losses, suits and judgments (including 
all costs and expenses incident thereto) which may be suffered by, 
accrue against, be charged to or recoverable from the Government, its 
officers and employees by reason of injury to or death of any person 
other than officers, agents, or employees of the Government or by 
reason of damage to property of others of whatsoever kind (other than 
the property of the Government, its officers, agents or employees) 
arising out of the operation of the aircraft. In the event the 
Contractor holds or obtains insurance in support of this covenant, 
evidence of insurance shall be delivered to the Contracting Officer.


(End of clause)


1252.228-73  Command of Aircraft.

    As prescribed in 1228.306-70(d), insert the following clause:
Command of Aircraft (DATE)
    During the performance of a contract for out-service flight 
training for DOT, whether the instruction to DOT personnel is in 
leased, contractor-provided, or Government-provided aircraft, 
contractor personnel shall always, during the entirety of the course of 
training and during operation of the aircraft, remain in command of the 
aircraft. At no time shall other personnel be permitted to take command 
of the aircraft.


(End of clause)


1252.228-74  Notification of Payment Bond Protection.

    As prescribed in guidance at 1228.106-470, insert the following 
clause:
Notification of Payment Bond Protection (DATE)
    (a) The prime contract is subject to the Bonds statute 
(historically referred to as the Miller Act) (40 U.S.C. chapter 31, 
subchapter III), under which the prime contractor has obtained a 
payment bond. This payment bond may provide certain unpaid employees, 
suppliers, and subcontractors a right to sue the bonding surety under 
the Bonds statute for amounts owned for work performed and materials 
delivery under the prime contract.
    (b) Persons believing that they have legal remedies under the Bonds 
statute should consult their legal advisor regarding the proper steps 
to take to obtain these remedies. This notice clause does not provide 
any party any rights against the Federal Government, or create any 
relationship, contractual or otherwise, between the Federal Government 
and any private party.
    (c) The surety which has provided the payment bond under the prime 
contract is:
    [Contracting Officer fill-in prime contractor's surety information]
-----------------------------------------------------------------------
(Name)

-----------------------------------------------------------------------
(Street Address)

-----------------------------------------------------------------------
(City, State, Zip Code)

-----------------------------------------------------------------------
(Contact & Tel. No.)

    (d) Subcontract flowdown requirements. This clause shall be flowed 
down to all subcontractors. Prime contractors shall insert this notice 
clause in all first-tier subcontracts and shall require the clause to 
be subsequently flowed down by all first-tier subcontractors to all 
their subcontractors, at any tier. This notice contains information 
pertaining to the surety that provided the payment bond under the prime 
contract and is required to be inserted in its entirety to include the 
information set forth in paragraph (c).


(End of clause)


1252.231-70  Date of Incurrence of Costs.

    As prescribed in 1231.205-3270(b), insert the following clause:
Date of Incurrence of Costs (DATE)
    The Contractor shall be entitled to reimbursement for costs 
incurred on or after ____________

[[Page 69525]]

[Contracting Officer insert date] in an amount not to exceed 
$____________ [Contracting Officer insert amount] that, if incurred 
after this contract had been entered into, would have been reimbursable 
under this contract.


(End of clause)


1252.232-70  Electronic Submission of Payment Requests.

    As prescribed in 1232.7005, insert the following clause:
Electronic Submission of Payment Requests (DATE)
    (a) Definitions. As used in this clause--
    (1) Contract financing payment has the meaning given in FAR 32.001.
    (2) Payment request means a bill, voucher, invoice, or request for 
contract financing payment or invoice payment with associated 
supporting documentation. The payment request must comply with the 
requirements identified in FAR 32.905(b), ``Content of Invoices,'' this 
clause, and the applicable Payment clause included in this contract.
    (3) Electronic form means an automated system transmitting 
information electronically according to the accepted electronic data 
transmission methods and formats identified in paragraph (c) of this 
clause. Facsimile, email, and scanned documents are not acceptable 
electronic forms for submission of payment requests.
    (4) Invoice payment has the meaning given in FAR 32.001.
    (b) Electronic payment requests. Except as provided in paragraph 
(e) of this clause, the contractor shall submit payment requests in 
electronic form. Purchases paid with a Governmentwide commercial 
purchase card are considered to be an electronic transaction for 
purposes of this rule, and therefore no additional electronic invoice 
submission is required.
    (c) Processing system. The Department of Transportation utilizes 
the DELPHI system for processing invoices. The DELPHI module for 
submitting invoices is called iSupplier. Access to DELPHI is granted 
with electronic authentication of credentials (name & valid email 
address) utilizing the GSA credentialing platform login.gov. For 
vendors submitting invoices, they will be required to submit invoices 
via iSupplier (DELPHI) and authenticated via www.login.gov.
    (d) Invoice requirements. In order to receive payment and in 
accordance with the Prompt Payment Act, all invoices submitted as 
attachments in iSupplier (DELPHI) shall contain the following:
    (1) Invoice number and invoice date.
    (2) Period of performance covered by invoice.
    (3) Contract number and title.
    (4) Task/Delivery Order number and title (if applicable).
    (5) Amount billed (by CLIN), current and cumulative.
    (6) Total ($) of billing.
    (7) Cumulative total billed for all contract work to date.
    (8) Name, title, phone number, and mailing address of person to be 
contacted in the event of a defective invoice.
    (9) Travel. If the contract includes allowances for travel, all 
invoices which include charges pertaining to travel expenses will 
catalog a breakdown of reimbursable expenses with the appropriate 
receipts to substantiate the travel expenses.
    (e) Payment system registration. All persons accessing the 
iSupplier (DELPHI) will be required to have their own unique user ID 
and password and be credentialed through login.gov.
    (1) Electronic authentication. See www.login.gov for instructions.
    (2) To create a login.gov account, the user will need a valid email 
address and a working phone number. The user will create a password and 
then login.gov will reply with an email confirming the email address.
    (3) iSupplier (DELPHI) registration instructions: New users should 
navigate to: http://einvoice.esc.gov to establish an account. Users are 
required to log in to iSupplier (DELPHI) every 45 days to keep it 
active.
    (4) Training on DELPHI. To facilitate use of DELPHI, comprehensive 
user information is available at http://einvoice.esc.gov.
    (5) Account Management. Vendors are responsible to contact their 
assigned COR when their firm's points of contacts will no longer be 
submitting invoices, so they can be removed from the system.
    (f) Waivers. For contractors/vendors who are unable to utilize 
DOT's DELPHI system, waivers may be considered by DOT on a case-by-case 
basis. Vendors should contact their Contracting Officer's 
Representative (COR) for procedures.
    (g) Exceptions and alternate payment procedures. If, based on one 
of the circumstances set forth in 1232.7002(a) or (b), and the 
contracting officer directs that payment requests be made by mail, the 
contractor shall submit payment requests by mail through the United 
States Postal Service to the designated agency office. If alternate 
payment procedures are authorized, the Contractor shall include a copy 
of the Contracting Officer's written authorization with each payment 
request. If DELPHI has been succeeded by later technology, the 
Contracting Officer will supply the Contractor with the latest 
applicable electronic invoicing instructions.


(End of clause)


1252.232-71   Limitation of Government's Obligation.

    As prescribed in 1232.770-7, insert the following clause:
Limitation of Government's Obligation (DATE)
    (a) Funding is not currently available to fully fund this contract 
due to the Government operating under a continuing resolution (CR). The 
item(s) listed in the table below are being incrementally funded as 
described below. The funding allotted to these item(s) is presently 
available for payment and allotted to this contract. This table will be 
updated by a modification to the contract when additional funds, if 
any, are made available to this contract.

----------------------------------------------------------------------------------------------------------------
                                                                                           Funds required for
 Contract line item No. (CLIN)        CLIN total price        Funds allotted to the     complete funding of the
                                                                       CLIN                       CLIN
----------------------------------------------------------------------------------------------------------------
                                 $                          $                          $
                                 $                          $                          $
                                 $                          $                          $
                                 $                          $                          $
                                --------------------------------------------------------------------------------
    Totals.....................  $                          $                          $
----------------------------------------------------------------------------------------------------------------


[[Page 69526]]

    (b) For the incrementally funded CLIN(s) identified in paragraph 
(a) of this clause, the Contractor agrees to perform up to the point at 
which the total amount payable by the Government, including any invoice 
payments to which the Contractor is entitled and reimbursement of 
authorized termination costs in the event of termination of those 
CLIN(s) for the Government's convenience, does not exceed the total 
amount currently obligated to those CLIN(s). The Contractor is not 
authorized to continue work on these item(s) beyond that point. The 
Government will not be obligated--in any event--to reimburse the 
Contractor in excess of the amount allotted to the CLIN(s) of the 
contract regardless of anything to the contrary in any other clause, 
including but not limited to the clause entitled ``Termination for 
Convenience of the Government'' or paragraph (l) entitled ``Termination 
for the Government's Convenience'' of the clause at FAR 52.212-4, 
``Commercial Terms and Conditions Commercial Items.''
    (c) Notwithstanding paragraph (h) of this clause, the Contractor 
shall notify the Contracting Officer in writing at least 30 days prior 
to the date when, in the Contractor's best judgment, the work will 
reach the point at which the total amount payable by the Government, 
including any cost for termination for convenience, will approximate 85 
percent of the total amount then allotted to the contract for 
performance of the item(s) identified in paragraph (a) of this clause. 
The notification shall state the estimated date when that point will be 
reached and an estimate of additional funding, if any, needed to 
continue performance. The notification shall also advise the 
Contracting Officer of the estimated amount of additional funds 
required for the timely performance of the item(s) funded pursuant to 
this contract. If after such notification additional funds are not 
allotted by the date identified in the Contractor's notification, or by 
an agreed upon substitute date, the Contracting Officer will terminate 
any item(s) for which additional funds have not been allotted, pursuant 
to the terms of this contract authorizing termination for the 
convenience of the Government. Failure to make the notification 
required by this paragraph, whether for reasons within or beyond the 
Contractor's control, will not increase the maximum amount payable to 
the Contractor under paragraphs (a) and (b) of this clause.
    (d) The Government may, at any time prior to termination, allot 
additional funds for the performance of the item(s) identified in 
paragraph (a) of this clause.
    (e) The termination provisions of paragraphs (a) through (h) of 
this clause do not limit the rights of the Government under the clause 
entitled ``Default'' or paragraph (m) entitled ``Termination for 
Cause,'' of the clause at FAR 52.212-4, ``Commercial Terms and 
Conditions Commercial Items.'' The provisions of this clause are 
limited to the work and allotment of funds for the item(s) set forth in 
paragraph (a) of this clause. This clause no longer applies once the 
contract is fully funded.
    (f) Nothing in this clause affects the right of the Government to 
terminate this contract pursuant to the Government's termination for 
convenience terms set forth in this contract.
    (g) Nothing in this clause shall be construed as authorization of 
voluntary services whose acceptance is otherwise prohibited under 31 
U.S.C. 1342.
    (h) The parties contemplate that the Government will allot funds to 
this contract from time to time as the need arises and as funds become 
available. There is no fixed schedule for providing additional funds.


(End of clause)


1252.235-70  Research Misconduct.

    As prescribed in 1235.070-1, insert the following clause:
Research Misconduct (DATE)
    (a) Definitions. As used in this clause--
    Adjudication means the process of reviewing recommendations from 
the investigation phase and determining appropriate corrective actions.
    Complainant means the person who makes an allegation of research 
misconduct or the person who cooperates with an inquiry or 
investigation.
    DOT Oversight Organization is the Department of Transportation 
(DOT) operating administration or secretarial office sponsoring or 
managing Federally-funded research.
    Evidence includes, but is not limited to, research records, 
transcripts, or recordings of interviews, committee correspondence, 
administrative records, grant applications and awards, manuscripts, 
publications, expert analyses, and electronic data.
    Fabrication means making up data or results and recording or 
reporting them.
    Falsification means manipulating research materials, equipment, or 
processes, or changing or omitting data or results such that the 
research is not accurately represented in the research record.
    Inquiry means preliminary information gathering and fact-finding to 
determine if an allegation, or apparent instance of research 
misconduct, warrants an investigation.
    Investigation means formal collection and evaluation of information 
and facts to determine if research misconduct can be established, to 
assess its extent and consequences, and to recommend appropriate 
action.
    Plagiarism means the appropriation of another person's ideas, 
processes, results, or words without giving appropriate credit. 
Research misconduct does not include honest error or differences of 
opinion.
    Research and Technology Coordinating Council (RTCC) is the lead DOT 
entity for coordination of all actions related to allegations of 
research misconduct. The respondent in a research misconduct finding 
may appeal through the RTCC to the Deputy Secretary of Transportation.
    Research institution includes any Contractor conducting research 
under DOT-funded contractual instruments, contracts, and similar 
instruments.
    Research misconduct means fabrication, falsification, or 
plagiarism, in proposing, performing, or reviewing research, or in 
reporting research results. Research misconduct does not include honest 
error or difference of opinion.''
    Research record means the record of data or results that embody the 
facts resulting from scientific inquiry, and includes, but is not 
limited to, research proposals, laboratory records, both physical and 
electronic, progress reports, abstracts, theses, oral presentations, 
internal reports, and journal articles.
    Respondent means the person against whom an allegation of research 
misconduct has been made, or the person whose actions are the focus of 
the inquiry or investigation.
    (b) General guidelines. (1) Confidentiality. DOT organizations, 
including research organizations, are required to safeguard the 
confidentiality of the inquiry, investigation and decision-making 
processes, including maintaining complete confidentiality of all 
records and identities of respondents and complainants.
    (2) Retaliation prohibited. If a complainant who has reported 
possible research misconduct alleges retaliation on the part of DOT 
organization management, the report will be addressed by management 
officials who will conduct an inquiry into the allegations followed by 
an appropriate management action.
    (3) Separation of phases. DOT organizations and research 
organizations must ensure the

[[Page 69527]]

separation of the Inquiry, Investigation and Determination Phases of 
this process.
    (4) In general, DOT organizations must strive to protect the 
interests of the Federal Government and the public in carrying out this 
process.
    (c) Elements to support a finding of research misconduct. Research 
institutions (including Contractors) that receive DOT funds shall 
respond to allegations of research misconduct. The following elements 
describe the type of behavior, level of intent and burden of proof 
required to support a finding of research misconduct:
    (1) There must be a significant departure from the accepted 
practices of the relevant research community;
    (2) The misconduct must have been committed intentionally, or 
knowingly, or recklessly and;
    (3) The allegation must be proven by a preponderance of the 
evidence.
    (d) DOT Oversight Organization Investigation. The DOT oversight 
organization may proceed with its own investigation at any time if:
    (1) DOT determines the research institution is not prepared to 
handle the allegation in a manner consistent with this policy.
    (2) DOT involvement is needed to protect the public interest, 
including public health and safety.
    (3) The allegation involves an entity of sufficiently small size 
(or an individual) that it cannot sufficiently conduct the 
investigation itself.
    (4) The DOT oversight organization may take, or cause to be taken, 
interim administrative actions (including special certifications, 
assurances, or other administrative actions) when deemed appropriate to 
protect the welfare of human and animal subjects of research, prevent 
inappropriate use of Federal funds, or otherwise protect the public 
interest and safety.
    (e) Investigating research misconduct. Research institutions, or in 
limited circumstances discussed in paragraph (d) the DOT Oversight 
Organization shall use the following procedures to investigate 
allegations of research misconduct:
    (1) Inquire promptly into the research misconduct allegation and 
complete an initial inquiry within 60 calendar days after receipt of 
the allegation.
    (2) Notify the Contracting Officer immediately, in writing, when an 
inquiry results in a determination that an investigation is warranted, 
and promptly begin an investigation.
    (3) Ensure the objectivity and expertise of the individuals 
selected to review allegations and conduct investigations.
    (4) Conduct the investigation according to established internal 
procedures and complete it within 120 calendar days of completing the 
initial inquiry.
    (5) Document the investigation. Include documentation that--
    (i) Describes the allegation(s);
    (ii) Lists the investigators;
    (iii) Describes the methods and procedures used to gather 
information and evaluate the allegation(s);
    (iv) Summarizes the records and data compiled, states the findings, 
and explains the supporting reasons and evidence;
    (v) States the potential impact of any research misconduct; and
    (vi) Describes and explains any institutional sanctions or 
corrective actions recommended or imposed as appropriate within its 
jurisdiction and as consistent with other relevant laws.
    (6) Provide the respondent (the person against whom an allegation 
of research misconduct has been made) with a reasonable opportunity 
(e.g., 30 calendar days) to review and respond to the investigation 
report. The respondent's written comments or rebuttal will be made part 
of the investigative record.
    (7) Within 30 calendar days after completion of an investigation, 
forward investigative reports, documentation, and respondent's response 
to the Contracting Officer who will coordinate with the DOT oversight 
organization(s) sponsoring and/or monitoring the federally-funded 
research.
    (8) Time extensions. Contractors should request time extensions as 
needed, from the Contracting Officer of the appropriate DOT oversight 
organization. The Contracting Officer has discretion to waive time 
requirements for good cause.
    (f) Activity sanctions or corrective actions. Upon receipt of the 
investigative reports from the contractor, the DOT oversight 
organization, in conjunction with the Contracting Officer, will review 
the report, and determine the appropriate administrative action to be 
taken. In deciding what actions to take, the oversight organizations 
should consider: The severity of the misconduct; the degree to which 
the misconduct was knowing, intentional or reckless; and whether it was 
an isolated event or part of a pattern. Sanctions or corrective actions 
may range as follows--
    (1) Minimal restrictions--such as a letter of reprimand, additional 
conditions on awards, requiring third-party certification of accuracy 
or compliance with particular policies, regulations, guidelines, or 
special terms and conditions;
    (2) Moderate restrictions--such as limitations on certain 
activities or expenditures under an active award, or special reviews of 
requests for funding; or
    (3) More severe restrictions--such as termination of an active 
award, or government-wide suspension or debarment.
    (i) When the DOT oversight organization concludes an investigation 
with a determination of research misconduct, the DOT Office of the 
Senior Procurement Executive will be so advised and may notify any 
other sources of research that provide support to the respondent that a 
finding of research misconduct has been made.
    (ii) If there are reasonable indications that criminal violations 
may have occurred, the DOT oversight organization, in conjunction with 
the Contracting Officer, shall consult with the Office of Inspector 
General to determine an appropriate course of action, including 
debarment or suspension. The DOT oversight organization, in conjunction 
with the Contracting Officer will notify the respondent in writing of 
its action, sanctions to be imposed if applicable, and the DOT appeal 
procedures.
    (g) Appeals and final administrative action. (1) The Federal 
Acquisition Regulation governs in all matters pertaining to termination 
of the contract, and suspension/debarment.
    (2) In all other cases, the Contractor may appeal the sanction or 
corrective action through the DOT Research and Technology Coordinating 
Council (RTCC) to the Deputy Secretary of Transportation, in writing 
within 30 calendar days after receiving written notification of the 
research misconduct finding and associated administrative action(s). 
The Contractor shall mail a copy of the appeal to the Contracting 
Officer.
    (3) If there is no request for appeal within 30 calendar days, the 
administrative actions of the oversight organization shall be final.
    (4) If a request for appeal is received by the RTCC within the 30 
calendar day limit, the Deputy Secretary may have the RTCC review the 
appeal and make recommendations.
    (5) The RTCC on behalf of the Deputy Secretary will normally inform 
the appellant of the final decision on an appeal within 60 calendar 
days of receipt. This decision will then be the final DOT 
administrative action.
    (h) Criminal or civil fraud violations. When the DOT oversight 
organization concludes an investigation with a

[[Page 69528]]

determination of research misconduct, the DOT Office of the Senior 
Procurement Executive may notify any other sources of research that 
provide support to the respondent. If criminal or civil fraud 
violations may have occurred, the oversight organization should 
promptly refer the matter to the DOT Inspector General, the Department 
of Justice or other appropriate investigative body.
    (i) Subcontract flowdown. The Contractor shall include the 
substance of this clause in all subcontracts that involve research.


(End of clause)


1252.235-71   Technology Transfer.

    As prescribed in 1235.011-70, insert the following clause:
Technology Transfer (DATE)
    (a) The Contractor, in accordance with the provisions in the 
attached Statement of Work, will develop a Technology Transfer Plan to 
be approved by _____ [Fill-in: Contracting Officer to fill-in the 
cognizant DOT/OA] prior to the initiation of any work under this 
contract and shall execute the approved plan throughout the conduct of 
this Agreement. Such plan shall include, at a minimum--
    (1) A description of the problem and technical solutions being 
researched, including any potential or identified technology 
developments that are the intended output of or which may be derived 
from the research;
    (2) A list identifying and categorizing by interest potential 
stakeholders in the outputs of the research to be performed;
    (3) A plan for engaging the identified potential stakeholders to 
determine interest in and obtain suggested refinements to the research, 
before and during the conduct of this contract, to enhance the 
likelihood of adoption/implementation of the research outputs. Such 
engagement activities shall comprise communicating research status to 
identified stakeholders, soliciting their feedback; disseminating 
research outputs, and identifying whether the outputs were adopted/
implemented;
    (4) A proposed delivery or demonstration activity (e.g., conference 
presentation of a final report, demonstration of software, or 
demonstration of tangible output);
    (5) A draft plan for the commercialization of any research outputs, 
including the specific identification of stakeholders most likely to be 
of interest in the commercialization of the research outputs;
    (6) The identification of the specific methods and channels for 
dissemination of the research outputs (e.g., publication, licensing to 
a third party, or manufacture and sale); and
    (7) A plan for tracking and reporting to [Fill-in: Contracting 
Officer to fill in the cognizant DOT/OA] the research outputs, 
outcomes, and impacts.
    (b) The Contractor shall provide to _____ [Fill-in: Contracting 
Officer to fill-in the cognizant DOT/OA] at least once every six 
months, or as an attachment to any more frequent research progress 
reports, a Technology Transfer Report addressing and updating each 
element of their approved Technology Transfer Plan. Such report shall 
include--
    (1) An updated description of the problem and technical solution(s) 
being researched, particularly where any revisions to the research are 
based on feedback from a stakeholder engagement;
    (2) A summary of overall technology transfer progress;
    (3) An updated listing of interested stakeholders and an 
identification of their potential role (e.g., research sponsor, 
potential end-user, or regulator);
    (4) A listing of the stakeholders engaged since the most recently 
submitted Technology Transfer Report;
    (5) The identification of any additional stakeholder engagement 
activity (including the mechanism used to engage the stakeholder) and 
the results of such activity;
    (6) The conduct and results of any delivery/demonstration activity 
occurring since the most recently submitted Report update, including 
the identification of any stakeholder participants;
    (7) An acknowledgement of the submission of any technical or 
progress report that would satisfy the Public Access requirement and 
whether such submissions are properly represented in the USDOT Research 
Hub and the National Transportation Library; and
    (8) Any information on instances of any use of an output of 
research conducted under this contract.


(End of clause)


1252.236-70  Special Precautions for Work at Operating Airports.

    As prescribed in 1236.570, insert the following clause:
Special Precautions for Work at Operating Airports (DATE)
    (a) When work is to be performed at an operating airport, the 
Contractor must arrange its work schedule so as not to interfere with 
flight operations. Such operations will take precedence over 
construction convenience. Any operations of the Contractor that would 
otherwise interfere with or endanger the operations of aircraft shall 
be performed only at times and in the manner directed by the 
Contracting Officer. The Government will make every effort to reduce 
the disruption of the Contractor's operation.
    (b) Unless otherwise specified by local regulations, all areas in 
which construction operations are underway shall be marked by yellow 
flags during daylight hours and by red lights at other times. The red 
lights along the edge of the construction areas within the existing 
aprons shall be the electric type of not less than 100 watts intensity 
placed and supported as required. All other construction markings on 
roads and adjacent parking lots may be either electric or battery type 
lights. These lights and flags shall be placed to outline the 
construction areas and the distance between any two flags or lights 
shall not be greater than 25 feet. The Contractor shall provide 
adequate watch to maintain the lights in working condition at all times 
other than daylight hours. The hour of beginning and the hour of ending 
of daylight will be determined by the Contracting Officer.
    (c) All equipment and material in the construction areas or when 
moved outside the construction area shall be marked with airport safety 
flags during the day and when directed by the Contracting Officer, with 
red obstruction lights at nights. All equipment operating on the apron, 
taxiway, runway, and intermediate areas after darkness hours shall have 
clearance lights in conformance with instructions from the Contracting 
Officer. No construction equipment shall operate within 50 feet of 
aircraft undergoing fuel operations. Open flames are not allowed on the 
ramp except at times authorized by the Contracting Officer.
    (d) Trucks and other motorized equipment entering the airport or 
construction area shall do so only over routes determined by the 
Contracting Officer. Use of runways, aprons, taxiways, or parking areas 
as truck or equipment routes will not be permitted unless specifically 
authorized for such use. Flag personnel shall be furnished by the 
Contractor at points on apron and taxiway for safe guidance of its 
equipment over these areas to assure right of way to aircraft. Areas 
and routes used during the contract must be returned to their original 
condition by the Contractor. The maximum speed allowed at the airport 
shall be

[[Page 69529]]

established by airport management. Vehicles shall be operated to be 
under safe control at all times, weather and traffic conditions 
considered. Vehicles must be equipped with head and tail lights during 
the hours of darkness.


(End of clause)


1252.237-70  Qualifications of Contractor Employees.

    As prescribed in 1237.110-70(a), insert the following clause:
Qualifications of Contractor Employees (DATE)
    (a) Definition. Sensitive information, as used in this clause, 
means any information that, if subject to unauthorized access, 
modification, loss, or misuse, or is proprietary data, could adversely 
affect the national interest, the conduct of Federal programs, or the 
privacy of individuals specified in The Privacy Act, 5 U.S.C. 552a, but 
has not been specifically authorized under criteria established by an 
Executive Order or an Act of Congress to be kept secret in the interest 
of national defense or foreign policy.
    (b) Work under this contract may involve access to DOT facilities, 
sensitive information or resources (e.g., information technology 
including computer systems). To protect sensitive information, which 
shall not be disclosed by the contractor unless authorized in writing 
by the Contracting Officer, the Contractor shall provide training to 
any contractor employees authorized to access sensitive information, 
and upon request of the Government, provide information to assist the 
Government in determining an individual's suitability to have 
authorization.
    (c) The Contracting Officer may require dismissal from work under 
this contract those employees deemed incompetent, careless, 
insubordinate, unsuitable, or otherwise objectionable, or whose 
continued employment is deemed contrary to the public interest or 
inconsistent with the best interest of national security.
    (d) Contractor employees working on this contract must complete 
such forms as may be necessary for security or other reasons, including 
the conduct of background investigations to determine suitability. 
Completed forms shall be submitted as directed by the Contracting 
Officer. Upon the Contracting Officer's Representative (COR) or Program 
Manager's (PM) request, the Contractor's employees shall be 
fingerprinted, or subject to other investigations as required.
    (e) The Contractor shall ensure that contractor employees working 
on this contract are citizens of the United States of America or non-
citizens who have been lawfully admitted for permanent residence or 
employment (indicated by immigration status) as evidenced by U.S. 
Citizenship and Immigration Services (USCIS) documentation.
    (f) Subcontract flow-down requirement. The Contractor shall include 
this clause, including this paragraph (f), in subcontracts whenever 
this clause is included in the prime contractor's contract.


(End of clause)


1252.237-71  Certification of Data.

    As prescribed in 1237.7003, insert the following provision:
Certification of Data (DATE)
    (a) The offeror represents and certifies that to the best of its 
knowledge and belief, the information and/or data (e.g., company 
profile; qualifications; background statements; brochures) submitted 
with its offer is current, accurate, and complete as of the date of its 
offer.
    (b) The offeror understands that any inaccurate data provided to 
the Department of Transportation may subject the offeror, its 
subcontractors, its employees, or its representatives to: (1) 
Prosecution for false statements pursuant to 18 U.S.C. 1001 and/or; (2) 
enforcement action for false claims or statements pursuant to the 
Program Fraud Civil Remedies Act of 1986, 31 U.S.C. 3801-3812 and 49 
CFR part 31 and/or; (3) termination for default or for cause under any 
contract resulting from its offer and/or; (4) debarment or suspension.
    (c) The offeror agrees to obtain a similar certification from its 
subcontractors and submit such certification(s) with its offer.

Signature:-------------------------------------------------------------

Date:------------------------------------------------------------------

Typed Name and Title:--------------------------------------------------

Company Name:----------------------------------------------------------

-----------------------------------------------------------------------
    This certification concerns a matter within the jurisdiction of an 
agency of the United States and the making of a false, fictitious, or 
fraudulent certification may render the maker subject to prosecution 
under 18 U.S.C. 1001.

(End of provision)


1252.237-72  Prohibition on Advertising.

    As prescribed in 1213.7101 and 1237.7003, insert the following 
clause:
Prohibition on Advertising (DATE)
    The contractor or its representatives (including training 
instructors) shall not advertise or solicit business from attendees for 
private, non-Government training during contracted-for training 
sessions. This prohibition extends to unsolicited oral comments, 
distribution or sales of written materials, and/or sales of promotional 
videos or audio tapes. The contractor agrees to insert this clause in 
its subcontracts.


(End of clause)


1252.237-73  Key Personnel.

    As prescribed in 1237.110-70(b), insert the following clause:
Key Personnel (DATE)
    (a) The personnel as specified below are considered essential to 
the work being performed under this contract and may, with the consent 
of the contracting parties, be changed during the course of the 
contract by adding or deleting personnel, as appropriate.
    (b) Before removing, replacing, or diverting any of the specified 
individuals, the Contractor shall notify the contracting officer, in 
writing, before the change becomes effective. The Contractor shall 
submit information to support the proposed action to enable the 
contracting officer to evaluate the potential impact of the change on 
the contract. The Contractor shall not remove or replace personnel 
under this contract until the Contracting Officer approves the change 
in writing. The key personnel under this contract are:

[Contracting Officer insert specified key personnel]


(End of clause)


1252.239-70   Security Requirements for Unclassified Information 
Technology Resources.

    As prescribed in 1239.106-70, insert the following clause:
Security Requirements for Unclassified Information Technology Resources 
(DATE)
    (a) The Contractor shall be responsible for information technology 
security for all systems connected to a Department of Transportation 
(DOT) network or operated by the Contractor for DOT, regardless of 
location. This clause is applicable to all or any part of the contract 
that includes information technology resources or services in which the 
Contractor has physical or electronic access to DOT information that 
directly supports the mission of DOT. The term ``information 
technology,'' as used in this clause, means any equipment or 
interconnected system or subsystem of equipment, including 
telecommunications equipment, that is used in the automatic

[[Page 69530]]

acquisition, storage, manipulation, management, movement, control, 
display, switching, interchange, transmission, or reception of data or 
information. This includes both major applications and general support 
systems as defined by OMB Circular A-130. Examples of tasks that 
require security provisions include--
    (1) Hosting of DOT e-Government sites or other IT operations;
    (2) Acquisition, transmission, or analysis of data owned by DOT 
with significant replacement cost should the contractor's copy be 
corrupted; and
    (3) Access to DOT general support systems/major applications at a 
level beyond that granted the general public, e.g., bypassing a 
firewall.
    (b) The Contractor shall develop, provide, implement, and maintain 
an IT Security Plan. This plan shall describe the processes and 
procedures that the Contractor will follow to ensure appropriate 
security of IT resources developed, processed, or used under this 
contract. The plan shall describe those parts of the contract to which 
this clause applies. The Contractor's IT Security Plan shall comply 
with applicable Federal Laws that include, but are not limited to, 40 
U.S.C. 11331, the Federal Information Security Management Act (FISMA) 
of 2002 and the E-Government Act of 2002. The plan shall meet IT 
security requirements in accordance with Federal and DOT policies and 
procedures, and as amended during the term of this contract and 
include, but are not limited to the following.
    (1) OMB Circular A-130, Managing Information as a Strategic 
Resource;
    (2) National Institute of Standards and Technology (NIST) 
Guidelines;
    (3) DOT CIO IT Policy (CIOP) compendium and associated guidelines;
    (4) DOT Order 1630.2C, Personnel Security Management; and
    (5) DOT Order 1351.37, Departmental Cyber Security Policy.
    (c) Within 30 days after contract award, the contractor shall 
submit the IT Security Plan to the DOT Contracting Officer for review. 
This plan shall detail the approach contained in the offeror's proposal 
or sealed bid. Upon acceptance by the Contracting Officer, the Plan 
shall be incorporated into the contract by contract modification
    (d) Within six (6) months after contract award, the Contractor 
shall submit written proof of IT Security accreditation to the 
Contracting Officer. Such written proof may be furnished either by the 
Contractor or by a third party. Accreditation shall be in accordance 
with DOT policy available from the Contracting Officer upon request. 
The Contractor shall submit along with this accreditation a final 
security plan, risk assessment, security test and evaluation, and 
disaster recovery plan/continuity of operations plan. The accreditation 
and accompanying documents, to include a final security plan, risk 
assessment, security test and evaluation, and disaster recovery/
continuity of operations plan, upon acceptance by the Contracting 
Officer, will be incorporated into the contract by contract 
modification.
    (e) On an annual basis, the Contractor shall verify in writing to 
the Contracting Officer that the IT Security Plan remains valid.
    (f) The Contractor shall ensure that the official DOT banners are 
displayed on all DOT systems (both public and private) operated by the 
Contractor that contain Privacy Act information before allowing anyone 
access to the system. The DOT CIO will make official DOT banners 
available to the Contractor.
    (g) The Contractor shall screen all personnel requiring privileged 
access or limited privileged access to systems operated by the 
Contractor for DOT or interconnected to a DOT network in accordance 
with DOT Order 1630.2C Personnel Security Management, as amended.
    (h) The Contractor shall ensure that its employees performing 
services under this contract receive annual IT security training in 
accordance with OMB Circular A-130, FISMA, and NIST requirements, as 
amended, with a specific emphasis on rules of behavior.
    (i) The Contractor shall provide the Government access to the 
Contractor's and subcontractors' facilities, installations, operations, 
documentation, databases and personnel used in performance of the 
contract. The Contractor shall provide access to enable a program of IT 
inspection (to include vulnerability testing), investigation and audit 
(to safeguard against threats and hazards to the integrity, 
availability and confidentiality of DOT data or to the function of 
information technology systems operated on behalf of DOT), and to 
preserve evidence of computer crime.
    (j) The Contractor shall incorporate and flow down the substance of 
this clause to all subcontracts that meet the conditions in paragraph 
(a) of this clause.
    (k) The Contractor shall immediately notify the Contracting Officer 
when an employee who has access to DOT information systems or data 
terminates employment.


(End of clause)


1252.239-71  Information Technology Security Plan and Accreditation.

    As prescribed in 1239.106-70, insert the following provision:
Information Technology Security Plan and Accreditation (DATE)
    All offers submitted in response to this solicitation shall address 
the approach for completing the security plan and accreditation 
requirements in clause 1252.239-70, Security Requirements for 
Unclassified and Sensitive Information Technology Resources.


(End of provision)


1252.239-72  Compliance with Safeguarding DOT Sensitive Data Controls.

    As prescribed in TAR 1239.7003(a), insert the following clause:
Compliance With Safeguarding DOT Sensitive Data Controls (DATE)
    (a) The Contractor shall implement security requirements contained 
in clause 1252.239-74, Safeguarding DOT Sensitive Data and Cyber 
Incident Reporting, for all DOT sensitive data on all Contractor 
information systems that support the performance of this contract.
    (b) Contractor information systems not part of an information 
technology service or system operated on behalf of the Government as 
part of this contract are not subject to the provisions of this clause.
    (c) By submission of this offer, the Offeror represents that it 
will implement the security requirements specified by National 
Institute of Standards and Technology (NIST) Special Publication (SP) 
800-171 ``Protecting Controlled Unclassified Information in Nonfederal 
Information Systems and Organizations'' (see http://dx.doi.org/10.6028/NIST.SP.800-171) that are in effect at the time the solicitation is 
issued or as authorized by the contracting officer.
    (d) If the Offeror proposes to vary from any security requirements 
specified by NIST SP 800-171 in effect at the time the solicitation is 
issued or as authorized by the Contracting Officer, the Offeror shall 
submit to the Contracting Officer, for consideration by the DOT Chief 
Information Officer (CIO), a written explanation of--
    (1) Why a particular security requirement is not applicable; or
    (2) How the Contractor will use an alternative, but equally 
effective, security measure to satisfy the requirements of NIST SP 800-
171.
    (e) The Office of the DOT CIO will evaluate offeror requests to 
vary from NIST SP 800-171 requirements and

[[Page 69531]]

inform the Offeror in writing of its decision before contract award. 
The Contracting Officer will incorporate accepted variance(s) from NIST 
SP 800-171 into any resulting contract.


(End of clause)


1252.239-73   Limitations on the Use or Disclosure of Third-Party 
Contractor Reported Cyber Incident Information.

    As prescribed in 1239.7003(b), insert the following clause:
Limitations on the Use or Disclosure of Third-Party Contractor Reported 
Cyber Incident Information (DATE)
    (a) Definitions. As used in this clause--
    Compromise means disclosure of information to unauthorized persons, 
or a violation of the security policy of a system, whereby without 
authorization information is disclosed, modified, destroyed, lost, or 
copied to unauthorized media--whether intentionally or unintentionally.
    DOT sensitive data means unclassified information that requires 
safeguarding or dissemination controls pursuant to and consistent with 
law, regulations, and Governmentwide policies, and is--
    (1) Marked or otherwise identified in the contract, task order, or 
delivery order and provided to the Contractor by or on behalf of DOT in 
support of the performance of the contract; or
    (2) Collected, developed, received, transmitted, used, or stored by 
or on behalf of the Contractor in support of the performance of the 
contract.
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information residing 
therein.
    Information system means a discrete set of information resources 
organized for the collection, processing, maintenance, use, sharing, 
dissemination, or disposition of information.
    Media means physical devices or writing surfaces including, but not 
limited to, magnetic tapes, optical disks, magnetic disks, large-scale 
integration memory chips, and printouts onto which DOT sensitive data 
is recorded, stored, or printed within a covered contractor information 
system.
    DOT technical information means recorded information, regardless of 
the form or method of the recording, of a scientific or technical 
nature (including computer software documentation). The term does not 
include computer software or data incidental to contract 
administration, such as financial and/or management information. 
Examples of technical information include research and engineering 
data, engineering drawings, and associated lists, specifications, 
standards, process sheets, manuals, technical reports, technical 
orders, catalog-item identifications, data sets, studies and analyses 
and related information, and computer software executable code and 
source code.
    (b) Restrictions. (1) The Contractor agrees that the following 
conditions apply to any information it receives or creates in the 
performance of this contract derived from a third-party's reporting of 
a cyber incident, pursuant to TAR clause, 1252.239-74, Safeguarding DOT 
Sensitive Data and Cyber Incident Reporting (or derived from such 
information obtained under that clause):
    (2) The Contractor shall access and use the information only for 
the purpose of furnishing advice or technical assistance directly to 
the Government in support of the Government's activities related to 
clause 1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting, and shall not be used for any other purpose.
    (3) The Contractor shall protect the information against 
unauthorized release or disclosure.
    (4) The Contractor shall ensure that its employees are subject to 
use and non-disclosure obligations consistent with this clause prior to 
the employees being provided access to or use of the information.
    (5) The third-party contractor that reported the cyber incident is 
a third-party beneficiary of the non-disclosure agreement between the 
Government and Contractor, as required by paragraph (b)(3) of this 
clause.
    (6) A breach of these obligations or restrictions may subject the 
Contractor to--
    (i) Criminal, civil, administrative, and contractual penalties and 
other appropriate remedies; and
    (ii) Civil actions for damages and other appropriate remedies by 
the third party that reported the cyber incident, as a third-party 
beneficiary of this clause.
    (c) Subcontract flowdown requirement. The Contractor shall include 
this clause, including this paragraph (c), in subcontracts, or similar 
contractual instruments, for services that include support for the 
Government's activities related to safeguarding covered DOT sensitive 
data and cyber incident reporting, including subcontracts for 
commercial items, without alteration, except to identify the parties.


(End of clause)


1252.239-74  Safeguarding DOT Sensitive Data and Cyber Incident 
Reporting.

    As prescribed in 1239.7003(c), insert the following clause:
Safeguarding DOT Sensitive Data and Cyber Incident Reporting (DATE)
    (a) Definitions. As used in this clause--
    Adequate security means protective measures that balance and are 
commensurate with the impact and consequences of the loss, misuse, or 
unauthorized access to, or modification of information against the 
probability of occurrence.
    Compromise means disclosure of information to unauthorized persons, 
or a violation of the security policy of a system, whereby without 
authorization information is disclosed, modified, destroyed, lost, or 
copied to unauthorized media--whether intentionally or unintentionally.
    Contractor attributional/proprietary information means information 
that identifies the Contractor(s), whether directly or indirectly, by 
the grouping of information that can be traced back to the 
Contractor(s) (e.g., program description, facility locations), 
personally identifiable information, trade secrets, commercial or 
financial information, or other commercially sensitive information not 
customarily shared outside of a company.
    Covered contractor information system means an unclassified 
information system owned or operated by or for a Contractor and that 
processes, stores, or transmits DOT sensitive data.
    DOT sensitive data means unclassified information that requires 
safeguarding or dissemination controls pursuant to and consistent with 
law, regulation, and Government-wide policies, and is--
    (1) Marked or otherwise identified in the contract, task order, or 
delivery order and provided to the Contractor by or on behalf of DOT in 
support of the performance of the contract; or
    (2) Collected, developed, received, transmitted, used, or stored by 
or on behalf of the Contractor in support of the performance of the 
contract.
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information residing 
therein.
    Federal record as defined in 44 U.S.C. 3301, includes all recorded 
information, regardless of form or characteristics, made or received by 
a Federal agency

[[Page 69532]]

under Federal law or in connection with the transaction of public 
business and preserved or appropriate for preservation by that agency 
or its legitimate successor as evidence of the organization, functions, 
policies, decisions, procedures, operations, or other activities of the 
United States Government or because of the informational value of data 
in them. The term Federal record--
    (1) Includes all DOT records;
    (2) Does not include personal materials;
    (3) Applies to records created, received, or maintained by 
Contractors pursuant to a DOT contract; and
    (4) May include deliverables and documentation associated with 
deliverables.
    Forensic analysis means the practice of gathering, retaining, and 
analyzing computer-related data for investigative purposes in a manner 
that maintains the integrity of the data.
    Information system means a discrete set of information resources 
organized for the collection, processing, maintenance, use, sharing, 
dissemination, or disposition of information.
    Malicious software means computer software or firmware intended to 
perform an unauthorized process that will have adverse impact on the 
confidentiality, integrity, or availability of an information system. 
This definition includes a virus, worm, Trojan horse, or other code-
based entity that infects a host, as well as spyware and some forms of 
adware.
    Media means physical devices or writing surfaces including, but not 
limited to, magnetic tapes, optical disks, magnetic disks, large-scale 
integration memory chips, and printouts onto which DOT sensitive data 
is recorded, stored, or printed within a covered contractor information 
system.
    Operationally critical support means supplies or services 
designated by the Government as critical for airlift, sealift, 
intermodal transportation services, or logistical support that is 
essential to the mobilization, deployment, or sustainment of the Armed 
Forces in a contingency operation.
    Spillage security incident means an incident that results in the 
transfer of classified or unclassified information onto an information 
system not accredited (i.e., authorized) for the appropriate security 
level.
    Technical information means recorded information, regardless of the 
form or method of the recording, of a scientific or technical nature 
(including computer software documentation). The term does not include 
computer software or data incidental to contract administration, such 
as financial and/or management information, regardless of whether or 
not the clause is incorporated in this solicitation or contract. 
Examples of technical information include research and engineering 
data, engineering drawings, and associated lists, specifications, 
standards, process sheets, manuals, technical reports, technical 
orders, catalog-item identifications, data sets, studies and analyses 
and related information, and computer software executable code and 
source code.
    (b) Adequate security. The Contractor shall provide adequate 
security on all covered contractor information systems. To provide 
adequate security, the Contractor shall implement, at a minimum, the 
following information security protections:
    (1) For covered Contractor information systems that are part of an 
information technology (IT) service or system operated on behalf of the 
Government, the following security requirements apply:
    (i) Cloud computing services shall be subject to the security 
requirements specified in the clause 1252.239-76, Cloud Computing 
Services, of this contract.
    (ii) Any other such IT service or system (i.e., other than cloud 
computing) shall be subject to the security requirements specified 
elsewhere in this contract.
    (2) For covered Contractor information systems that are not part of 
an IT service or system operated on behalf of the Government and 
therefore are not subject to the security requirement specified at 
paragraph (b)(1) of this clause, the following security requirements 
apply:
    (i) Except as provided in paragraph (2)(b)(iv) of this clause, the 
contractor information system shall be subject to the security 
requirements in National Institute of Standards and Technology (NIST) 
Special Publication (SP) 800-171, ``Protecting Controlled Unclassified 
Information in Nonfederal Information Systems and Organizations'' 
(available via the internet at http://dx.doi.org/10.6028/NIST.SP.800-171) in effect at the time the solicitation is issued or as authorized 
by the Contracting Officer.
    (ii) The Contractor shall implement NIST SP 800-171 no later than 
30 days after the award of this contract. The Contractor shall notify 
Contract Officer of any security requirements specified by NIST SP 800-
171 not implemented within 30 days of time of contract award.
    (iii) If the Offeror proposes to vary from any security 
requirements specified by NIST SP 800-171 in effect at the time the 
solicitation is issued or as authorized by the Contracting Officer, the 
Offeror shall submit to the Contracting Officer, for consideration by 
the DOT Chief Information Officer (CIO), a written explanation of--
    (A) Why a particular security requirement is not applicable; or
    (B) How the Contractor will use an alternative, but equally 
effective, security measure to satisfy the requirements of NIST SP 800-
171.
    (iv) The Office of the DOT CIO will evaluate offeror requests to 
vary from NIST SP 800-171 requirements and inform the Offeror in 
writing of its decision before contract award. The Government will 
incorporate accepted variance(s) from NIST SP 800-171 into any 
resulting contract.
    (v) The Contractor need not implement any security requirement 
adjudicated by an authorized representative of the DOT CIO to be 
nonapplicable or to have an alternative, but equally effective, 
security measure that may be implemented in its place.
    (vi) If the DOT CIO has previously adjudicated the contractor's 
requests indicating that a requirement is not applicable or that an 
alternative security measure is equally effective, a copy of that 
approval shall be provided to the Contracting Officer when requesting 
its recognition under this contract
    (3) If the Contractor intends to use an external cloud service 
provider to store, process, or transmit any DOT sensitive data in 
performance of this contract, the Contractor shall require and ensure 
that the cloud service provider meets security requirements equivalent 
to those established by the Government for the Federal Risk and 
Authorization Management Program (FedRAMP) Moderate baseline (https://www.fedramp.gov/resources/documents/) and that the cloud service 
provider complies with requirements in paragraphs (c) through (h) of 
this clause for cyber incident reporting, malicious software, media 
preservation and protection, access to additional information and 
equipment necessary for forensic analysis, and cyber incident damage 
assessment.
    (4) The Contractor will apply other information systems security 
measures when the Contractor reasonably determines that information 
systems security measures, in addition to those identified in 
paragraphs (b)(1) and (b)(2) of this clause, may be required to provide 
adequate security in a dynamic environment or to accommodate special 
circumstances (e.g., medical devices) and any individual, isolated, or 
temporary deficiencies based on an

[[Page 69533]]

assessed risk or vulnerability. These measures may be addressed in a 
system security plan, as required by, clause 1252.239-70, Security 
Requirements for Unclassified Information Technology Resources.
    (c) Cyber incident reporting requirement. (1) When the Contractor 
discovers a cyber incident that affects a covered contractor 
information system or the DOT sensitive data residing therein, or that 
affects the contractor's ability to perform the requirements of the 
contract that are designated as operationally critical support and 
identified in the contract, the Contractor shall--
    (i) Conduct a review for evidence of compromise of DOT sensitive 
data, including, but not limited to, identifying compromised computers, 
servers, specific data, and user accounts. This review shall also 
include analyzing covered contractor information system(s) that were 
part of the cyber incident, as well as other information systems on the 
Contractor's network(s), that may have been accessed as a result of the 
incident in order to identify compromised DOT sensitive data or that 
affect the Contractor's ability to provide operationally critical 
support; and
    (ii) Rapidly report cyber incidents to DOT Security Operations 
Center (SOC) 24x7x365 at phone number: 571-209-3080 (Toll Free: 1-866-
580-1852).
    (d) Cyber incident report. The cyber incident report shall be 
treated as information created by or for DOT and shall include, at a 
minimum, the required elements in paragraph (c)(1)(i).
    (e) Spillage. Upon notification by the Government of a spillage, or 
upon the Contractor's discovery of a spillage, the Contractor shall 
cooperate with the Contracting Officer to address the spillage in 
compliance with DOT policy.
    (f) Malicious software. When the Contractor or subcontractors 
discover and isolate malicious software in connection with a reported 
cyber incident, the Contractor shall submit the malicious software to 
DOT in accordance with instructions provided by the Contracting 
Officer. Do not send the malicious software to the Contracting Officer.
    (g) Media preservation and protection. When a Contractor discovers 
a cyber incident has occurred, the Contractor shall preserve and 
protect images of all known affected information systems identified in 
paragraph (c)(1)(i) of this clause and all relevant monitoring/packet 
capture data for at least 90 days from the submission of the cyber 
incident report to allow DOT to request the media or decline interest.
    (h) Access to additional information or equipment necessary for 
forensic analysis. Upon request by DOT, the Contractor shall provide 
DOT with access to additional information or equipment that is 
necessary to conduct a forensic analysis.
    (i) Cyber incident damage assessment activities. If DOT elects to 
conduct a damage assessment, the Contracting Officer will request that 
the Contractor provide all of the damage assessment information 
gathered in accordance with paragraph (c) of this clause.
    (j) DOT safeguarding and use of Contractor attributional/
proprietary information. The Government shall protect against the 
unauthorized use or release of information obtained from the Contractor 
(or derived from information obtained from the Contractor) under this 
clause that includes Contractor attributional/proprietary information, 
including such information submitted in accordance with paragraph (c). 
To the maximum extent practicable, the Contractor shall identify and 
mark attributional/proprietary information. In making an authorized 
release of such information, the Government will implement appropriate 
procedures to minimize the Contractor attributional/proprietary 
information that is included in such authorized release consistent with 
applicable law.
    (k) Use and release of Contractor attributional/proprietary 
information not created by or for DOT. Information that is obtained 
from the Contractor (or derived from information obtained from the 
Contractor) under this clause that is not created by or for DOT is 
authorized to be released outside of DOT--
    (1) To entities with missions that may be affected by such 
information;
    (2) To entities that may be called upon to assist in the diagnosis, 
detection, or mitigation of cyber incidents;
    (3) To Government entities that conduct counterintelligence or law 
enforcement investigations;
    (4) To a support services contractor (``recipient'') that is 
directly supporting Government activities under a contract that 
includes the clause at 1252.239-73, Limitations on the Use or 
Disclosure of Third-Party Contractor Reported Cyber Incident 
Information; or
    (5) With Contractor's consent; or
    (6) As otherwise required by law.
    (l) Use and release of Contractor attributional/proprietary 
information created by or for DOT. Information that is obtained from 
the Contractor (or derived from information obtained from the 
Contractor) under this clause that is created by or for DOT (including 
the information submitted pursuant to paragraph (c) of this clause) is 
authorized to be used and released outside of DOT for purposes and 
activities authorized by paragraph (j) of this clause, and for any 
other lawful Government purpose or activity, subject to all applicable 
statutory, regulatory, and policy based restrictions on the 
Government's use and release of such information.
    (m) The Contractor shall conduct activities under this clause in 
accordance with applicable laws and regulations on the interception, 
monitoring, access, use, and disclosure of electronic communications 
and data.
    (n) Other safeguarding or reporting requirements. The safeguarding 
and cyber incident reporting required by this clause in no way 
abrogates the Contractor's responsibility for other safeguarding or 
cyber incident reporting pertaining to its unclassified information 
systems as required by other applicable clauses of this contract, or as 
a result of other applicable Government statutory or regulatory 
requirements.
    (o) Subcontract flowdown requirements. The Contractor shall--
    (1) Include this clause, including this paragraph (o), in 
subcontracts, or similar contractual instruments, for operationally 
critical support, or for which subcontract performance will involve DOT 
sensitive data, including subcontracts for commercial items, without 
alteration, except to identify the parties. The Contractor shall 
determine if the information required for subcontractor performance 
retains its identity as DOT sensitive data and will require protection 
under this clause, and, if necessary, consult with the Contracting 
Officer; and
    (2) Require subcontractors to--
    (i) Notify the prime Contractor (or next higher-tier subcontractor) 
when submitting a request to vary from a NIST SP 800-171 security 
requirement to the Contracting Officer, in accordance with paragraph(b) 
(2)(iii) of this clause; and
    (ii) Provide the incident report number, automatically assigned by 
DOT, to the prime Contractor (or next higher-tier subcontractor) as 
soon as practicable, when reporting a cyber incident to DOT as required 
in paragraph (c) of this clause.


(End of clause)


1252.239-75  DOT Protection of Information About Individuals, PII, and 
Privacy Risk Management Requirements.

    As prescribed in 1239.7104, insert the following clause:

[[Page 69534]]

DOT Protection of Information About Individuals, PII, and Privacy Risk 
Management Requirements (DATE)
    (a) Compliance with standards. To the extent Contractor creates, 
maintains, acquires, discloses, uses, or has access to PII in 
furtherance of the contract, Contractor shall comply with all 
applicable Federal law, guidance, and standards and DOT policies 
pertaining to its protection. Contractor shall notify DOT in writing 
immediately upon the discovery that Contractor is no longer in 
compliance with DOT data protection standards with respect to any PII.
    (b) Unanticipated threats. If new or unanticipated threats or 
hazards are discovered by either the Government or the Contractor, or 
if existing safeguards have ceased to function, the discoverer shall 
immediately bring the situation to the attention of the other party.
    (c) Privacy Act. The Contractor will--
    (1) Comply with the Privacy Act of 1974, 5 U.S.C. 552a, DOT 
implementing regulations (49 CFR part 10), and DOT policies issued 
under the Act in the design, development, and/or operation of any 
system of records on individuals to accomplish a DOT function when the 
contract specifically identifies the work that the Contractor is to 
perform.
    (2) Include the Privacy Act notification contained in this contract 
in every solicitation and resulting subcontract and in every 
subcontract awarded without a solicitation, when the work statement in 
the proposed subcontract requires the redesign, development, and/or 
operation of a system of records on individuals that is subject to the 
Act; and
    (3) Include this clause, including this paragraph (c), in all 
subcontracts awarded under this contract which requires the design, 
development, and/or operation of such a system of records.
    (d) Privacy Act records. The Contractor shall not release records 
subject to the Privacy Act except by the direction of the DOT, 
regardless of whether DOT or the Contractor maintains the records.
    (e) Confidentiality agreement. Contractor agrees to execute a 
confidentiality agreement protecting PII, when necessary, and further 
agrees not to appropriate such PII for its own use or to disclose such 
information to third parties unless specifically authorized by DOT in 
writing.
    (f) Surrender of records. If at any time during the term of the 
Contract any part of PII, in any form, that Contractor obtains from or 
on behalf of DOT ceases to be required by Contractor for the 
performance of its obligations under the Contract, or upon termination 
of the Contract, whichever occurs first, Contractor shall, within ten 
(10) business days, notify DOT and securely return such PII to DOT, or, 
at DOT's written request destroy, un-install and/or remove all copies 
of such PII in Contractor's possession or control, or such part of the 
PII which relates to the part of the Contract which is terminated, or 
the part no longer required, as appropriate, and certify to DOT that 
the requested action has been completed.
    (g) NIST FIPS 140-2. At a minimum, the Contractor shall protect all 
PII created, collected, used, maintained, or disseminated on behalf of 
the Department using controls consistent with Federal Information 
Processing Standard Publication 199 (FIPS 199) moderate confidentiality 
standards, unless otherwise authorized by the DOT Chief Privacy 
Officer.
    (h) Protection of sensitive information. The Contractor shall 
comply with Government and DOT guidance for protecting PII.
    (i) Breach. The Contractor shall bear all costs, losses, and 
damages resulting from the Contractor's breach of these clauses. 
Contractor agrees to release, defend, indemnify, and hold harmless DOT 
for claims, losses, penalties, and damages and costs to the extent 
arising out of Contractor's, or its subcontractor's, negligence, 
unauthorized use or disclosure of PII and/or Contractor's, or its 
subcontractor's, breach of its obligations under these clauses.
    (j) Breach reporting. Contractors shall report breaches involving 
PII directly to DOT at (202) 385-4357 or 1-(866)-466-5221 within two 
(2) hours of discovery. Contractor shall provide the incident number 
automatically assigned by DOT for all breaches reported by the 
Contractor or any subcontractors to the Contracting Officer.
    (k) Applicability. Contractor shall inform all principals, 
officers, employees, agents and subcontractors engaged in the 
performance of this contract of the obligations contained in these 
clauses.
    (l) Training. To the extent necessary and/or required by law, the 
Contractor shall provide training to employees, agents, and 
subcontractors to promote compliance with these clauses. The Contractor 
is liable for any breach of these clauses by any of its principals, 
officers, employees, agents and subcontractors.
    (m) Subcontractor engagement. When the Contractor engages a 
subcontractor in connection with its performance under the contract, 
and the Contractor provides such subcontractor access to PII, the 
Contractor shall provide the Contracting Officer with prompt notice of 
the identity of the subcontractor and the extent of the role that the 
subcontractor will play in connection with the performance of the 
contract. This obligation is in addition to any limitations of 
subcontracting and consent to subcontract requirements identified 
elsewhere in the clauses and provisions of this contract.
    (n) Subcontract flowdown requirements. Contractors shall flow down 
this clause to all subcontracts and purchase orders or other agreements 
and require that subcontractors incorporate this clause in their 
subcontracts, appropriately modified for identification of the parties. 
The Contractor shall enforce the terms of the clause, including action 
against its subcontractors, their employees and associates or third-
parties, for noncompliance. All subcontractors given access to any PII 
must agree to--
    (1) Abide by the clauses set forth herein, including, without 
limitation, its provisions relating to compliance with data privacy 
standards for the Protection of Data about Individuals and Breach 
Notification Controls and Notice of Security and/or Privacy Incident;
    (2) Restrict use of PII only for subcontractor's internal business 
purposes and only as necessary to render services to Contractor in 
connection with Contractor's performance of its obligations under the 
contract;
    (3) Certify in writing, upon completion of services provided by a 
subcontractor, that the subcontractor has returned to the Contractor 
all records containing PII within 30 days of subcontractor's completion 
of services to Contractor. Failure of subcontractor to return all 
records containing PII within this period will be reported to DOT as a 
privacy incident; and
    (4) Report breaches involving PII directly to DOT at (202) 385-4357 
or 1-(866)-466-5221 within two (2) hours of discovery. Subcontractors 
shall provide the incident report number automatically assigned by DOT 
to the prime contractor. Lower-tier subcontractors, likewise, shall 
report the incident report number automatically assigned by DOT to 
their higher-tier subcontractor until the prime contractor is reached. 
Contractor shall provide the DOT incident number to the Contracting 
Officer.


(End of clause)


1252.239-76   Cloud Computing Services.

    As prescribed in 1239.7204(a), insert the following clause:

[[Page 69535]]

Cloud Computing Services (DATE)
    (a) Definitions. As used in this clause--
    Authorizing official, as described in Appendix B of DOT Order 
1350.37, Departmental Cybersecurity Policy, means the senior Federal 
official or executive with the responsibility for operating an 
information system at an acceptable level of risk to organizational 
operations (including mission, functions, image, or reputation), 
organizational assets, individuals, other organizations, and the 
Nation.
    Cloud computing means a model for enabling ubiquitous, convenient, 
on-demand network access to a shared pool of configurable computing 
resources (e.g., networks, servers, storage, applications, and 
services) that can be rapidly provisioned and released with minimal 
management effort or service provider interaction. This includes other 
commercial terms, such as on-demand self-service, broad network access, 
resource pooling, rapid elasticity, and measured service. It also 
includes commercial offerings for software-as-a-service, 
infrastructure-as-a-service, and platform-as-a-service.
    Compromise means disclosure of information to unauthorized persons, 
or a violation of the security policy of a system, whereby without 
authorization information is disclosed, modified, destroyed, lost, or 
copied to unauthorized media--whether intentionally or unintentionally.
    Cyber incident means actions taken through the use of computer 
networks that result in a compromise or an actual or potentially 
adverse effect on an information system and/or the information residing 
therein.
    Government data means any information, document, media, or material 
regardless of physical form or characteristics, that is created or 
obtained by the Government in the course of official Government 
business.
    Government-related data means any information, document, media, or 
material regardless of physical form or characteristics that is created 
or obtained by a Contractor through the storage, processing, or 
communication of Government data. This does not include contractor's 
business records e.g., financial records, legal records etc. or data 
such as operating procedures, software coding or algorithms that are 
not uniquely applied to the Government data.
    Information system means a discrete set of information resources 
organized for the collection, processing, maintenance, use, sharing, 
dissemination, or disposition of information.
    Media means physical devices or writing surfaces including, but not 
limited to, magnetic tapes, optical disks, magnetic disks, large-scale 
integration memory chips, and printouts onto which information is 
recorded, stored, or printed within an information system.
    Spillage security incident means an incident that results in the 
transfer of classified information onto an information system not 
accredited (i.e., authorized) for the appropriate security level.
    (b) Cloud computing security requirements. The requirements of this 
clause are applicable when using cloud computing to provide information 
technology services in the performance of the contract.
    (1) If the Contractor indicated in its offer that it does not 
anticipate the use of cloud computing services in the performance of a 
resultant contract, and after the award of this contract, the 
Contractor proposes to use cloud computing services in the performance 
of the contract, the Contractor shall obtain approval from the 
Contracting Officer prior to utilizing cloud computing services in 
performance of the contract.
    (2) The Contractor shall implement and maintain administrative, 
technical, and physical safeguards and controls with the security level 
and services required in accordance with the DOT Order 1351.37, 
Departmental Cybersecurity Policy, and the requirements of DOT Order 
1351.18, Departmental Privacy Risk Management Policy (the versions of 
each that in effect at the time the solicitation is issued or as 
authorized by the Contracting Officer), unless notified by the 
Contracting Officer that this requirement has been waived by the DOT 
Chief Information Officer.
    (3) The Contractor shall maintain all Government data not 
physically located on DOT premises within the United States, the 
District of Columbia, and all territories and possessions of the United 
States, unless the Contractor receives written notification from the 
Contracting Officer to use another location, in accordance with DOT 
Policy.
    (4) DOT will determine the security classification level for the 
cloud system in accordance with Federal Information Processing Standard 
199; the Contractor will then apply the appropriate set of impact 
baseline controls as required in the FedRAMP Cloud Computing Security 
Requirements Baseline document to ensure compliance with security 
standards. The FedRAMP baseline controls are based on NIST Special 
Publication 800-53, Security and Privacy Controls for Information 
Systems and Organizations (version in effect at the time the 
solicitation is issued or as authorized by the Contracting Officer), 
Security Control Baselines and also includes a set of additional 
controls for use within systems providing cloud services to the federal 
government.
    (5) The Contractor shall maintain a security management continuous 
monitoring environment that meets or exceeds the requirements in the 
Reporting and Continuous Monitoring section of this contract/task order 
______ [Fill-in: Contracting Officer enter the requirements document 
paragraph reference number] based upon the latest edition of FedRAMP 
Cloud Computing Security Requirements Baseline and FedRAMP Continuous 
Monitoring Requirements.
    (6) The Contractor shall be responsible for the following privacy 
and security safeguards:
    (i) To the extent required to carry out the FedRAMP assessment and 
authorization process and FedRAMP continuous monitoring, to safeguard 
against threats and hazards to the security, integrity, and 
confidentiality of any non-public Government data collected and stored 
by the Contractor, the Contractor shall provide the Government access 
to the Contractor's facilities, installations, technical capabilities, 
operations, documentation, records, and databases.
    (ii) The Contractor shall also comply with any additional FedRAMP 
and DOT Order, cybersecurity and privacy policies.
    (7) The Government may perform manual or automated audits, scans, 
reviews, or other inspections of the vendor's IT environment being used 
to provide or facilitate services for the Government. In accordance 
with the Federal Acquisition Regulation (FAR) clause 52.239-1, Privacy 
or Security Safeguards, the Contractor shall provide the Government 
access to Contractor's facilities, installations, technical 
capabilities, operations, documentation, records and databases to carry 
out a program of inspection. Contractors shall provide access within 
two hours of notification by the Government. The program of inspection 
shall include, but is not limited to--
    (i) Authenticated and unauthenticated operating system/network 
vulnerability; scans;
    (ii) Authenticated and unauthenticated web application 
vulnerability scans;

[[Page 69536]]

    (iii) Authenticated and unauthenticated database application 
vulnerability scans; and
    (8) Automated scans can be performed by Government personnel, or 
agents acting on behalf of the Government, using Government operated 
equipment, and Government specified tools.
    (9) If new or unanticipated threats or hazards are discovered by 
either the Government or the Contractor, or if existing safeguards have 
ceased to function, the discoverer shall immediately bring the 
situation to the attention of the other party.
    (10) If the vendor chooses to run its own automated scans or 
audits, results from these scans may, at the Government's discretion, 
be accepted in lieu of Government performed vulnerability scans. In 
these cases, the Government will approve scanning tools and their 
configuration. In addition, the Contractor shall provide complete 
results of vendor-conducted scans to the Government.
    (c) Limitations on access to and use and disclosure of Government 
data and Government-related data.
    (1) The Contractor shall not access, use, or disclose Government 
data unless specifically authorized by the terms of this contract or a 
task order or delivery order issued hereunder.
    (i) If authorized by the terms of this contract or a task order or 
delivery order issued hereunder, any access to, or use or disclosure 
of, Government data shall only be for purposes specified in this 
contract or task order or delivery order.
    (ii) The Contractor shall ensure that its employees are subject to 
all such access, use, and disclosure prohibitions and obligations.
    (iii) These access, use, and disclosure prohibitions and 
obligations shall survive the expiration or termination of this 
contract.
    (2) The Contractor shall use Government-related data only to manage 
the operational environment that supports the Government data and for 
no other purpose unless otherwise permitted with the prior written 
approval of the Contracting Officer.
    (d) Cloud computing services cyber incident reporting. The 
Contractor shall report all cyber incidents related to the cloud 
computing service provided under this contract. To DOT via the DOT 
Security Operations Center (SOC) 24 hours-a-day, 7 days-a-week, 365 
days a year (24x7x365) at phone number: 571-209-3080 (Toll Free: 866-
580-1852) within 2 hours of discovery.
    (e) Spillage. Upon notification by the Government of a spillage, or 
upon the Contractor's discovery of a spillage, the Contractor shall 
cooperate with the Contracting Officer to address the spillage in 
compliance with agency procedures.
    (f) Malicious software. The Contractor or subcontractors that 
discover and isolate malicious software in connection with a reported 
cyber incident shall submit the malicious software in accordance with 
instructions provided by the Contracting Officer.
    (g) Media preservation and protection. When a Contractor discovers 
a cyber incident has occurred, the Contractor shall preserve and 
protect images of all known affected information systems identified in 
the cyber incident report (see paragraph 5 of this clause) and all 
relevant monitoring/packet capture data for at least 90 days from the 
submission of the cyber incident report to allow DOT to request the 
media or decline interest.
    (h) Access to additional information or equipment necessary for 
forensic analysis. Upon request by DOT, the Contractor shall provide 
DOT with access to additional information or equipment that is 
necessary to conduct a forensic analysis.
    (i) Cyber incident damage assessment activities. If DOT elects to 
conduct a damage assessment, the Contracting Officer will request that 
the Contractor provide all of the damage assessment information 
gathered in accordance with paragraph 7 of this clause.
    (j) Subcontract flowdown requirement. The Contractor shall include 
this clause, including this paragraph (j), in all subcontracts that 
involve or may involve cloud services, including subcontracts for 
commercial items.
(End of clause)


1252.239-77  Data Jurisdiction.

    As prescribed in 1239.7204(b), insert a clause substantially as 
follows:
Data Jurisdiction (DATE)
    The Contractor shall identify all data centers that the data at 
rest or data backup will reside, including primary and replicated 
storage. The Contractor shall ensure that all data centers not 
physically located on DOT premises reside within the United States, the 
District of Columbia, and all territories and possessions of the United 
States, unless otherwise authorized by the DOT CIO. The Contractor 
shall provide a Wide Area Network (WAN), with a minimum of ___ 
[Contracting Officer fill-in: Insert specific number] data center 
facilities at ___ [Contracting Officer fill-in number] different 
geographic locations with at least ___ [Contracting Officer fill-in 
number] Internet Exchange Point (IXP) for each price offering. The 
Contractor shall provide internet bandwidth at the minimum of ___ 
[Contracting Officer fill-in applicable gigabytes] GB.
(End of clause)


1252.239-78  Validated Cryptography for Secure Communications.

    As prescribed in 1239.7204(c), insert a clause substantially as 
follows:
Validated Cryptography for Secure Communications (DATE)
    (a) The Contractor shall use only cryptographic mechanisms that 
comply with ___ [Contracting Officer insert FIPS 140-2 level #]. All 
deliverables shall be labeled ___ [Contracting Officer insert 
appropriate label such as ``For Official Use Only'' (FOUO) or other 
DOT-agency selected designation per document sensitivity].
    (b) External transmission/dissemination of ___ [Contracting Officer 
fill-in: e.g., labeled deliverables] to or from a Government computer 
must be encrypted. Certified encryption modules must be used in 
accordance with ___ [Contracting Officer shall insert the standard, 
such as FIPS PUB 140-2, ``Security requirements for Cryptographic 
Modules.''
(End of clause)


1252.239-79   Authentication, Data Integrity, and Non-Repudiation.

    As prescribed in 1239.7204(d), insert a clause substantially as 
follows:
Authentication, Data Integrity, and Non-Repudiation (DATE)
    The Contractor shall provide a [Fill-in: Contracting Officer fill-
in the ``cloud service'' name] system that implements ___ [Contracting 
Officer insert the required level (1-4) of FIPS 140-2 encryption 
standard] that provides for origin authentication, data integrity, and 
signer non-repudiation.
(End of clause)


1252.239-80  Audit Record Retention for Cloud Service Providers.

    As prescribed in 1239.7204(e), insert the following clause:
Audit Record Retention for Cloud Service Providers (DATE)
    (a) The Contractor shall support a system in accordance with the 
requirement for Federal agencies to manage their electronic records in 
accordance with 36 CFR 1236.20 and 1236.22, including but not limited 
to capabilities such as those identified in DoD STD-5015.2 V3, 
Electronic Records Management Software Applications

[[Page 69537]]

Design Criteria Standard, NARA Bulletin 2008-05, July 31, 2008, 
Guidance concerning the use of email archiving applications to store 
email, and NARA Bulletin 2010-05 September 08, 2010, Guidance on 
Managing Records in Cloud Computing Environments.
    (b) The Contractor shall maintain records to retain functionality 
and integrity throughout the records' full lifecycle including--
    (1) Maintenance of links between records and metadata; and
    (2) Categorization of records to manage retention and disposal, 
either through transfer of permanent records to NARA or deletion of 
temporary records in accordance with NARA approved retention schedules.
(End of clause)


1252.239-81  Cloud Identification and Authentication (Organizational 
Users) Multi-Factor Authentication.

    As prescribed in 1239.7204(f), insert the following clause:
Cloud Identification and Authentication (Organizational Users) Multi-
Factor Authentication (DATE)
    The Contractor shall support a secure, multi-factor method of 
remote authentication and authorization to identified Government 
Administrators that will allow Government-designated personnel the 
ability to perform management duties on the system. The Contractor 
shall support multi-factor authentication in accordance with National 
Institute of Standards and Technology (NIST) Federal Information 
Processing Standards (FIPS) Publication (PUB) Number 201-2, Personal 
Identity Verification (PIV) of Federal Employees and Contractors, or 
NIST issued successor publications, and OMB implementation guidance for 
personal identity verification.
(End of clause)


1252.239-82   Identification and Authentication (Non-Organizational 
Users).

    As prescribed in 1239.7204(g), insert the following clause:
Identification and Authentication (Non-Organizational Users) (DATE)
    The Contractor shall support a secure, multi-factor method of 
remote authentication and authorization to identified Contractor 
Administrators that will allow Contractor designated personnel the 
ability to perform management duties on the system as required by the 
contract.
(End of clause)


1252.239-83  Incident Reporting Timeframes.

    As prescribed in 1239.7204(h), insert the following clause:
Incident Reporting Timeframes (DATE)
    (a) The Contractor shall report all computer security incidents to 
the DOT Security Operations Center (SOC) in accordance with Subpart 
1239.70--Information Security and Incident Response Reporting.
    (b) Contractors and subcontractors are required to report cyber 
incidents directly to DOT via the DOT SOC 24 hours-a-day, 7 days-a-
week, 365 days a year (24x7x365) at phone number: 571-209-3080 (Toll 
Free: 866-580-1852) within 2 hours of discovery, regardless of the 
incident category. See 1252.239-74, Safeguarding DOT Sensitive Data and 
Cyber Incident Reporting.
(End of clause)


1252.239-84   Media Transport.

    As prescribed in 1239.7204(i), insert a clause substantially as 
follows:
Media Transport (DATE)
    (a) The Contractor shall document activities associated with the 
transport of DOT information stored on digital and non-digital media 
and employ cryptographic mechanisms to protect the confidentiality and 
integrity of this information during transport outside of controlled 
areas. This applies to--
    (1) Digital media, containing DOT or other Federal agency or other 
sensitive or third-party provided information that requires protection, 
that is transported outside of controlled areas must be encrypted using 
FIPS 140-2 [Contracting Officer insert required encryption mode, based 
on FIPS 199 risk category]; and
    (2) Nondigital media must be secured using the same policies and 
procedures as paper.
    (b) Contractors shall ensure accountability for media, containing 
DOT or other Federal agency or other sensitive or third-party provided 
information that is transported outside of controlled areas must ensure 
accountability. This can be accomplished through appropriate actions 
such as logging and a documented chain of custody form.
    (c) DOT or other Federal agency sensitive or third-party provided 
information that resides on mobile/portable devices (e.g., USB flash 
drives, external hard drives, and SD cards) must be encrypted using 
FIPS 140-2 [Contracting Officer insert the required encryption mode 
based on FIPS 199 risk category]. All Federal agency data residing on 
laptop computing devices must be protected with NIST-approved 
encryption software.
(End of clause)


1252.239-85   Personnel Screening--Background Investigations.

    As prescribed in 1239.7204(j), insert the clause as follows:
Personnel Screening--Background Investigations (DATE)
    (a) Contractors shall provide support personnel who are U.S. 
persons maintaining a NACI clearance or greater in accordance with OMB 
memorandum M-05-24, Section C. (see http://www.whitehouse.gov/sites/default/files/omb/memoranda/fy2005/m05-24.pdf).
    (b) The Contractor shall furnish documentation reflecting favorable 
adjudication of background investigations for all personnel supporting 
the system. The Contractor shall also comply with Executive Order 
12968, Access to Classified Information. DOT separates the risk levels 
for personnel working on Federal computer systems into three 
categories: Low risk, moderate risk, and high risk. The Contractor is 
responsible for the cost of meeting all security requirements and 
maintaining assessment and authorization.
    (c) The Contractor's employees with access to DOT systems 
containing sensitive information may be required to obtain security 
clearances (i.e., Confidential, Secret, or Top Secret). National 
Security work designated ``special sensitive,'' ``critical sensitive,'' 
or ``non-critical sensitive,'' will determine the level of clearance 
required for contractor employees. Personnel security clearances for 
national security contracts in DOT will be processed according to the 
Department of Defense National Industrial Security Program Operating 
Manual (NISPOM).
    (d) The Contracting Officer, through the Contracting Officer's 
Representative (COR) or Program Manager will ensure that all required 
information is forwarded to the Federal Protective Service (FPS) in 
accordance with the DOT Policy. FPS will then contact each Applicant 
with instructions for completing required forms and releases for the 
type of personnel investigation requested.
    (e) Applicants will not be reinvestigated if a prior favorable 
adjudication is on file with FPS, OPM or DoD, there has been no break 
in service, and the position is identified at the same or lower risk 
level. Once a favorable FBI Criminal History Check

[[Page 69538]]

(Fingerprint Check) has been returned, Applicants may receive a DOT 
identity credential (if required) and initial access to information 
systems holding DOT information.
(End of clause)


1252.239-86  Boundary Protection--Trusted internet Connections.

    As prescribed in 1239.7204(k), insert the clause as follows:
Boundary Protection--Trusted Internet Connections (DATE)
    The Contractor shall ensure that Federal information, other than 
non-sensitive information, being transmitted from Federal government 
entities to external entities using cloud services is inspected by 
Trusted internet Connections (TIC) processes or the Contractor shall 
route all external connections through a Trusted internet Connection 
(TIC).
(End of clause)


1252.239-87   Protection of Information at Rest.

    As prescribed in 1239.7204(l), insert the clause as follows:
Protection of Information at Rest and in Transit (DATE)
    The Contractor shall provide security mechanisms for handling data 
at rest and in transit in accordance with FIPS 140-2 ___ [Contracting 
officer insert encryption standard, based on NIST FIPS 199 
categorization].
(End of clause)


1252.239-88   Security Alerts, Advisories, and Directives.

    As prescribed in 1239.7204(m), insert the clause as follows:
Security Alerts, Advisories, and Directives (DATE)
    The Contractor shall provide a list of its personnel, identified by 
name and role, assigned system administration, monitoring, and/or 
security responsibilities and are designated to receive security 
alerts, advisories, and directives and individuals responsible for the 
implementation of remedial actions associated with them.
(End of clause)


1252.239-89   Technology Modernization.

    As prescribed in 1239.7303(a), insert the following clause:
Technology Modernization (DATE)
    (a) Modernization approach. After issuance of the contract, the 
Government may solicit, and the Contractor is encouraged to propose 
independently, a modernization approach to the hardware, software, 
specifications, or other requirements of the contract. This 
modernization approach may be proposed to increase efficiencies (both 
system and process level), reduce costs, strengthen the cyber security 
posture, or for any other purpose which presents an advantage to the 
Government. Furthermore, the modernization approach should, to the 
maximum extent practicable, align with how the commercial sector would 
solve the problem.
    (b) Proposal requirements. As part of the proposed changes, the 
Contractor shall submit a price or cost proposal to the Contracting 
Officer for evaluation. Those proposed modernized improvements that are 
acceptable to the Government will be processed as modifications to the 
contract. At a minimum, the Contractor shall submit the following 
information with each proposal:
    (1) A summary of how the modernized proposal aligns with the 
commercial sector approach and how the current approach is out of 
alignment/differs;
    (2) A description of the difference between the existing contract 
requirement and the proposed change, and the comparative advantages and 
disadvantages of each;
    (3) Itemized requirements of the contract that must be changed if 
the proposal is adopted and the proposed revision to the contract for 
each such change;
    (4) An estimate of the changes in performance and price or cost, if 
any, that will result from adoption of the proposal;
    (5) An evaluation of the effects the proposed changes would have on 
collateral costs to the Government, such as Government-furnished 
property costs, costs of related items, and costs of maintenance, 
operation and conversion (including Government application software);
    (6) A statement of the schedule for contract modification adopting 
the proposal that maximizes benefits of the changes during the 
remainder of the contract including supporting rationale; and
    (7) Identification of impacts on contract cost and schedule. The 
Government is not liable for proposal preparation costs or for any 
delay in acting upon any proposal submitted pursuant to this clause.
    (c) Withdrawal. The Contractor has a right to withdraw, in whole or 
in part, any proposal not adopted by contract modification within the 
period specified in the proposal. The decision of the Contracting 
Officer whether to accept any such proposal under this contract is 
final and not subject to the ``Disputes'' clause of this contract.
    (d) Product testing. If the Government wishes to test and evaluate 
any item(s) proposed, the Contracting Officer will issue written 
directions to the Contractor specifying what item(s) will be tested, 
where and when the item(s) will be tested, to whom the item(s) is to be 
delivered, and the number of days (not to exceed 90 calendar days) that 
the item will be tested.
    (e) Contract modification. The Contracting Officer may accept any 
proposal submitted pursuant to this clause by giving the Contractor 
written notice thereof. This written notice will be given by issuance 
of a modification to the contract. Until the Government issues a 
modification incorporating a proposal under this contract, the 
Contractor shall remain obligated to perform in accordance with the 
requirements, terms, and conditions of the existing contract.
    (f) Change orders. If a proposal submitted pursuant to this clause 
is accepted and applied to this contract, the equitable adjustment 
increasing or decreasing the price or cost-plus-fixed-fee (CPFF) shall 
be in accordance with the procedures of the applicable ``Changes'' 
clause incorporated by reference in the contract. The resulting 
contract modification will state that it is made pursuant to this 
clause.
(End of clause)


1252.239-90   Technology Upgrades/Refreshment.

    As prescribed in 1239.7303(b), insert the following clause:
Technology Upgrades/Refreshment (DATE)
    (a) Upgrade/refreshment approach. After issuance of the contract, 
the Government may solicit, and the Contractor is encouraged to propose 
independently, technology improvements to the hardware, software, 
specifications, or other requirements of the contract. These 
improvements may be proposed to save money, to improve performance, to 
save energy, to satisfy increased data processing requirements, or for 
any other purpose that presents a technological advantage to the 
Government. As part of the proposed changes, the Contractor shall 
submit a price or cost proposal to the Contracting Officer for 
evaluation. Those proposed technology improvements that are acceptable 
to the Government will be processed as modifications to the contract. 
As a minimum, the following

[[Page 69539]]

information shall be submitted by the Contractor with each proposal:
    (1) A description of the difference between the existing contract 
requirement and the proposed change, and the comparative advantages and 
disadvantages of each;
    (2) Itemized requirements of the contract that must be changed if 
the proposal is adopted, and the proposed revision to the contract for 
each such change;
    (3) An estimate of the changes in performance and price or cost, if 
any, that will result from adoption of the proposal;
    (4) An evaluation of the effects the proposed changes would have on 
collateral costs to the Government, such as Government-furnished 
property costs, costs of related items, and costs of maintenance, 
operation and conversion (including Government application software);
    (5) A statement of the time by which the contract modification 
adopting the proposal must be issued so as to obtain the maximum 
benefits of the changes during the remainder of the contract including 
supporting rationale; and
    (6) Identification of any impacts to contract completion time or 
delivery schedule. The Government is not liable for proposal 
preparation costs or for any delay in acting upon any proposal 
submitted pursuant to this clause. The Contractor has a right to 
withdraw, in whole or in part, any proposal not adopted by contract 
modification within the period specified in the proposal. The decision 
of the Contracting Officer whether to accept any such proposal under 
this contract is final and not subject to the ``Disputes'' clause of 
this contract.
    (b) Test and evaluation. If the Government wishes to test and 
evaluate any item(s) proposed, the Contracting Officer will issue 
written directions to the Contractor specifying what item(s) will be 
tested, where and when the item(s) will be tested, to whom the item(s) 
is to be delivered, and the number of days (not to exceed 90 calendar 
days) that the item will be tested. The Contracting Officer may accept 
any proposal submitted pursuant to this clause by giving the Contractor 
written notice thereof. This written notice will be given by issuance 
of a modification to the contract. Unless and until a modification is 
executed to incorporate a proposal under this contract, the Contractor 
shall remain obligated to perform in accordance with the requirements, 
terms and conditions of the existing contract. If a proposal submitted 
pursuant to this clause is accepted and applied to this contract, the 
equitable adjustment increasing or decreasing the price or CPFF shall 
be in accordance with the procedures of the applicable ``Changes'' 
clause incorporated by reference in Section I of the contract. The 
resulting contract modification will state that it is made pursuant to 
this clause.
(End of clause)


1252.239-91  Records Management.

    As prescribed in 1239.7403, insert the following clause:
Records Management (DATE)
    (a) Definition.
    Federal record, as defined in 44 U.S.C. 3301, means all recorded 
information, regardless of form or characteristics, made or received by 
a Federal agency under Federal law or in connection with the 
transaction of public business and preserved or appropriate for 
preservation by that agency or its legitimate successor as evidence of 
the organization, functions, policies, decisions, procedures, 
operations, or other activities of the United States Government or 
because of the informational value of data in them. The term Federal 
record:
    (1) Includes all DOT records.
    (2) Does not include personal materials.
    (3) Applies to records created, received, or maintained by 
Contractors pursuant to a DOT contract.
    (4) May include deliverables and documentation associated with 
deliverables.
    (b) Requirements. (1) Compliance. Contractor shall comply with all 
applicable records management laws and regulations, as well as National 
Archives and Records Administration (NARA) records policies, including 
but not limited to the Federal Records Act (44 U.S.C. chapters 21, 29, 
31, 33), NARA regulations at 36 CFR Chapter XII Subchapter B, and those 
policies associated with the safeguarding of records covered by Privacy 
Act of 1974 (5 U.S.C. 552a). These policies include the preservation of 
all records, regardless of form or characteristics, mode of 
transmission, or state of completion.
    (2) Applicability. In accordance with 36 CFR 1222.32, all data 
created for Government use and delivered to, or falling under, the 
legal control of the Government, are Federal records subject to the 
provisions of 44 U.S.C. chapters 21, 29, 31, and 33, the Freedom of 
Information Act (FOIA) (5 U.S.C. 552), as amended, and the Privacy Act 
of 1974 (5 U.S.C. 552a), as amended. Such Federal records shall be 
managed and scheduled for disposition only as permitted by the Federal 
Records Act, relevant statute or regulation, and DOT Order 1351.28, 
Departmental Records Management Policy.
    (3) Records maintenance. While DOT records are in the Contractor's 
custody, the Contractor is responsible for preventing the alienation or 
unauthorized destruction of DOT records, including all forms of 
mutilation. Records may not be removed from the legal custody of DOT or 
destroyed except in accordance with the provisions of the agency 
records schedules and with the written concurrence of the DOT or 
Component Records Officer, as appropriate. Willful and unlawful 
destruction, damage or alienation of Federal records is subject to the 
fines and penalties imposed by 18 U.S.C. 2701. In the event of any 
unlawful or accidental removal, defacing, alteration, or destruction of 
records, the Contractor must report the event to the Contracting 
Officer in accordance with 36 CFR 1230, Unlawful or Accidental Removal, 
Defacing, Alteration, or Destruction of Records, for reporting to NARA.
    (4) Unauthorized disclosure. The Contractor shall notify the 
Contracting Officer within two hours of discovery of any inadvertent or 
unauthorized disclosures of information, data, documentary materials, 
records or equipment. Disclosure of non-public information is limited 
to authorized personnel with a need-to-know as described in the 
contract. The Contractor shall ensure that the appropriate personnel, 
administrative, technical, and physical safeguards are established to 
ensure the security and confidentiality of this information, data, 
documentary material, records and/or equipment. The Contractor shall 
not remove material from Government facilities or systems, or 
facilities or systems operated or maintained on the Government's 
behalf, without the express written permission of the Contracting 
Officer. When information, data, documentary material, records and/or 
equipment is no longer required, it shall be returned to DOT control or 
the Contractor must hold it until otherwise directed. Items returned to 
the Government shall be hand carried, mailed, emailed, or securely 
electronically transmitted to the Contracting Officer or address 
prescribed in the contract. Destruction of records is expressly 
prohibited unless in accordance with the contract.
    (c) Non-public information. The Contractor shall not create or 
maintain any records containing any non-public

[[Page 69540]]

DOT information that are not specifically authorized by the contract.
    (d) Rights in data. Rights in data under this contract are set 
forth in clauses prescribed by FAR part 27 and included in this 
contract, (e.g., 52.227-14 Rights in Data--General). Contractor must 
make any assertion of copyright in the data or other deliverables under 
this contract and substantiate such assertions. Contractor must add or 
correct all limited rights, restricted rights, or copyright notices and 
take all other appropriate actions in accordance with the terms of this 
contract and the clauses included herein.
    (e) Notification of third-party access requests. The Contractor 
shall notify the Contracting Officer promptly of any requests from a 
third party for access to Federal records, including any warrants, 
seizures, or subpoenas it receives, including those from another 
Federal, State, or local agency. The Contractor shall cooperate with 
the Contracting Officer to take all measures to protect Federal 
records, from any unauthorized disclosure.
    (f) Training. All Contractor employees assigned to this contract 
who create, work with, or otherwise handle records are required to take 
DOT-provided records management training. The Contractor is responsible 
for confirming to the Contracting Officer that training, including 
initial training and any annual or refresher training, has been 
completed in accordance with agency policies.
    (g) Subcontract flowdown requirements. (1) The Contractor shall 
incorporate the substance of this clause, its terms and requirements 
including this paragraph (g), in all subcontracts under this contract, 
and require written subcontractor acknowledgment of same.
    (2) Violation by a subcontractor of any provision set forth in this 
clause will be attributed to the Contractor.
(End of clause)


1252.239-92  Information and Communication Technology Accessibility 
Notice.

    As prescribed in 1239.203-70(a), insert the following provision:
Information and Communication Technology Accessibility Notice (DATE)
    (a) Any offeror responding to this solicitation must comply with 
established DOT Information and Communication Technology (ICT) 
(formerly known as Electronic and Information (EIT)) accessibility 
standards. Information about Section 508 is available at https://www.section508.gov/ or https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-section-508-standards.
    (b) The Section 508 accessibility standards applicable to this 
solicitation are stated in the clause at 1252.239-81, Information and 
Communication Technology Accessibility. In order to facilitate the 
Government's determination whether proposed ICT supplies and services 
meet applicable Section 508 accessibility standards, offerors must 
submit appropriate Section 508 Checklists, in accordance with the 
checklist completion instructions. The purpose of the checklists is to 
assist DOT acquisition and program officials in determining whether 
proposed ICT supplies or information, documentation and services 
support conform to applicable Section 508 accessibility standards. The 
checklists allow offerors or developers to self-evaluate their supplies 
and document--in detail--whether they conform to a specific Section 508 
accessibility standard, and any underway remediation efforts addressing 
conformance issues.
    (c) Respondents to this solicitation must identify any exception to 
Section 508 requirements. If an offeror claims its supplies or services 
meet applicable Section 508 accessibility standards, and it is later 
determined by the Government, i.e., after award of a contract or order, 
that supplies or services delivered do not conform to the described 
accessibility standards, remediation of the supplies or services to the 
level of conformance specified in the contract will be the 
responsibility of the Contractor at its expense.
(End of provision)


1252.239-93   Information and Communication Technology Accessibility.

    As prescribed in 1239.203-70(b), insert the following clause:
Information and Communication Technology Accessibility (DATE)
    (a) Definition. The term Electronic and Information Technology 
(EIT) supplies and services, as used in this subpart, is intended to 
refer to Information and Communication Technology (ICT) and any 
successor terms used to describe such technology.
    (b) All EIT supplies, information, documentation and services 
support developed, acquired, maintained or delivered under this 
contract or order must comply with the Information and Communication 
Technology (ICT) Standards and Guidelines (see 36 CFR parts 1193 and 
1194). Information about Section 508 is available at https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ictrefresh/corrections-to-the-ict-final-rule.
    (c) The Section 508 accessibility standards applicable to this 
contract or order are identified in the Specification, Statement of 
Work, or Performance Work Statement. If it is determined by the 
Government that ICT supplies and services provided by the Contractor do 
not conform to the described accessibility standards in the contract, 
remediation of the supplies or services to the level of conformance 
specified in the contract will be the responsibility of the Contractor 
at its own expense.
    (d) The Section 508 accessibility standards applicable to this 
contract are: ___ [Contracting Officer inserts the applicable Section 
508 accessibility standards].
    (e) In the event of a modification(s) to this contract or order, 
which adds new ICT supplies or services or revises the type of, or 
specifications for, supplies or services, the Contracting Officer may 
require that the Contractor submit a completed Section 508 Checklist 
and any other additional information necessary to assist the Government 
in determining that the ICT supplies or services conform to Section 508 
accessibility standards. If the Government determines that ICT supplies 
and services provided by the Contractor do not conform to the described 
accessibility standards in the contract, remediation of the supplies or 
services to the level of conformance specified in the contract will be 
the responsibility of the Contractor at its own expense.
    (f) If this is an indefinite-delivery type contract, a Blanket 
Purchase Agreement or a Basic Ordering Agreement, the task/delivery 
order requests that include ICT supplies or services will define the 
specifications and accessibility standards for the order. In those 
cases, the Contractor may be required to provide a completed Section 
508 Checklist and any other additional information necessary to assist 
the Government in determining that the ICT supplies or services conform 
to Section 508 accessibility standards. If it is determined by the 
Government that ICT supplies and services provided by the Contractor do 
not conform to the described accessibility standards in the provided 
documentation, remediation of the supplies or services to the level of 
conformance specified in the contract will be the responsibility of the 
Contractor at its own expense.

[[Page 69541]]

(End of clause)


1252.242-70  Dissemination of Information--Educational Institutions.

    As prescribed in 1242.270(a), insert the following clause:
Dissemination Of Information--Educational Institutions (DATE)
    (a) The Department of Transportation (DOT) desires widespread 
dissemination of the results of funded transportation research. The 
Contractor, therefore, may publish (subject to the provisions of the 
``Data Rights'' and ``Patent Rights'' clauses of the contract) research 
results in professional journals, books, trade publications, or other 
appropriate media (a thesis or collection of theses should not be used 
to distribute results because dissemination will not be sufficiently 
widespread). All costs of publication pursuant to this clause shall be 
borne by the Contractor and shall not be charged to the Government 
under this or any other Federal contract.
    (b) Any copy of material published under this clause must contain 
acknowledgment of DOT's sponsorship of the research effort and a 
disclaimer stating that the published material represents the position 
of the author(s) and not necessarily that of DOT. Articles for 
publication or papers to be presented to professional societies do not 
require the authorization of the Contracting Officer prior to release. 
However, two copies of each article shall be transmitted to the 
Contracting Officer at least two weeks prior to release or publication.
    (c) Press releases concerning the results or conclusions from the 
research under this contract shall not be made or otherwise distributed 
to the public without prior written approval of the Contracting 
Officer.
    (d) Publication under the terms of this clause does not release the 
Contractor from the obligation of preparing and submitting to the 
Contracting Officer a final report containing the findings and results 
of research, as set forth in the schedule of the contract.
(End of clause)


1252.242-71  Contractor Testimony.

    As prescribed in 1242.270(b), insert the following clause:
Contractor Testimony (DATE)
    All requests for the testimony of the Contractor or its employees, 
and any intention to testify as an expert witness relating to: (a) Any 
work required by, and/or performed under, this contract; or (b) any 
information provided by any party to assist the Contractor in the 
performance of this contract, shall be immediately reported to the 
Contracting Officer. Neither the Contractor nor its employees shall 
testify on a matter related to work performed or information provided 
under this contract, either voluntarily or pursuant to a request, in 
any judicial or administrative proceeding unless approved, in advance, 
by the Contracting Officer or required by a judge in a final court 
order.
(End of clause)


1252.242-72  Dissemination of Contract Information.

    As prescribed in 1242.270(c), insert the following clause:
Dissemination of Contract Information (DATE)
    The Contractor shall not publish, permit to be published, or 
distribute for public consumption, any information, oral or written, 
concerning the results or conclusions made pursuant to the performance 
of this contract, without the prior written consent of the Contracting 
Officer. Two copies of any material proposed to be published or 
distributed shall be submitted to the Contracting Officer.
(End of clause)


1252.242-74  Contract Audit Support.

    As prescribed in 1242.170, insert the following clause:
Contract Audit Support (DATE)
    The Government may at its sole discretion utilize certified public 
accountant(s) to provide contract audit services in lieu of the 
cognizant government audit agency to accomplish the contract 
administration requirements of FAR parts 32 and 42 under the terms and 
conditions of this contract. The audit services contractor reviewing 
the Contractor's accounting systems and data will perform this function 
in accordance with contract provisions which prohibit disclosure of 
proprietary financial data or use of such data for any purpose other 
than to perform the required audit services. The Contractor shall 
provide access to accounting systems, records and data to the audit 
services contractor like that provided to the cognizant government 
auditor.
(End of clause)

Subpart 1252.3--Provision and Clause Matrix


1252.301   Solicitation provisions and contract clauses (Matrix).

    The TAR matrix is not published in the CFR. It is available on the 
Acquisition.gov website at https://www.acquisition.gov/TAR.

PART 1253--FORMS

Subpart 1253.2--Prescription of Forms
Sec.
1253.204-70 Administrative matters--agency specified forms.
1253.227 Patents, data, and copyrights.
1253.227-3 Patent rights under Government contracts.
Subpart 1253.3--Forms Used in Acquisitions
1253.300-70 DOT agency forms.

    Authority:  5 U.S.C. 301; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 
and 48 CFR 1.301-1.304.

Subpart 1253.2--Prescription of Forms


1253.204-70  Administrative matters--agency specified forms.

    The following forms are prescribed for use in the closeout of 
applicable contracts, as specified in 1204.804-570:
    (a) Department of Transportation (DOT) Form DOT F 4220.4, 
Contractor's Release. (See 1204.804-570.) Form DOT F 4220.4 is 
authorized for local reproduction and a copy is furnished for this 
purpose in the appendix to 1253.3.
    (b) Form DOT F 4220.45, Contractor's Assignment of Refunds, 
Rebates, Credits, and Other Amounts. (See 1204.804-570.) Form DOT F 
4220.45 is authorized for local reproduction and a copy is furnished 
for this purpose in the appendix to 1253.3.
    (c) Form DOT F 4220.46, Cumulative Claim and Reconciliation 
Statement. (See 1204.804-570.) Form DOT F 4220.46 is authorized for 
local reproduction and a copy is furnished for this purpose in the 
appendix to 1253.3.
    (d) Department of Defense DD Form 882, Report of Inventions and 
Subcontracts. (See 1204.804-570.) DD Form 882 can be found at http://www.esd.whs.mil/Directives/forms/.


1253.227   Patents, data, and copyrights.


1253.227-3   Patent rights under Government contracts.

    The following form is prescribed as a means for contractors to 
report inventions made during contract performance, as specified in 
1227.305-4:
    Department of Defense DD Form 882, Report of Inventions and 
Subcontracts.

[[Page 69542]]

DD Form 882 can be found at http://www.esd.whs.mil/Directives/forms/.

Subpart 1253.3_Forms Used in Acquisitions


1253.300-70   DOT agency forms.

    This subpart identifies, in numerical sequence, agency forms that 
are specified by the TAR for use in acquisitions. See Table 1253.1_
Forms Used in DOT Acquisitions. Forms are also accessible in Adobe .PDF 
and Microsoft Word files on the DOT Office of Senior Procurement 
Executive website at https://www.transportation.gov/assistant-secretary-administration/procurement/tar-part-1253-forms.

              Table 1253-1--Forms Used in DOT Acquisitions
------------------------------------------------------------------------
                        Form name                           Form number
------------------------------------------------------------------------
Contractor's Release Form...............................          4220.4
Contractor's Assignment of Refunds, Rebates, Credits,            4220.45
 and other Amounts......................................
Cumulative Claim and Reconciliation Statement...........         4220.46
------------------------------------------------------------------------

[FR Doc. 2021-24421 Filed 12-6-21; 8:45 am]
BILLING CODE 4910-9X-P


