[Federal Register Volume 87, Number 194 (Friday, October 7, 2022)]
[Rules and Regulations]
[Pages 61152-61211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19907]



[[Page 61151]]

Vol. 87

Friday,

No. 194

October 7, 2022

Part II





Department of Transportation





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48 CFR Chapter 12





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

  Federal Register / Vol. 87 , No. 194 / Friday, October 7, 2022 / 
Rules and Regulations  

[[Page 61152]]


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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: Final rule.

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SUMMARY: The Department of Transportation (DOT) is issuing a final rule 
amending the 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regulation, to revise or remove policy that has been superseded by 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: This rule is effective on November 7, 2022.

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. Please refer to TAR 
Case 2020-001 in any written communications.

SUPPLEMENTARY INFORMATION:

Background

    DOT published a proposed rule in the Federal Register at 86 FR 
69452 on December 7, 2021, to amend the TAR to implement and/or 
supplement the FAR. Please refer to the proposed rule for a discussion 
of the reasons why DOT proposed the changes to the TAR described in 
that rule document. DOT provided a 60-day comment period for the public 
to respond to the proposed rule and submit comments. The public comment 
period closed on February 7, 2022. DOT received no public comments on 
the proposed rule.
    The TAR has been substantially revised and streamlined to update 
references to obsolete policies, procedures, and organizations, and to 
incorporate electronic links to key references. Revisions to the TAR 
were 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.
    This rule adopts as a final rule the proposed rule published in the 
Federal Register on December 7, 2021, except for technical non-
substantive changes to update terminology in accordance with FAR final 
rules and other minor administrative amendments as shown in the 
paragraphs that follow. This rule establishes a 2022 baseline edition 
of the TAR.

Technical Non-Substantive Changes to the Rule

    This rule makes the non-substantive changes to the proposed rule 
described in the following paragraphs to provide clarity, eliminate 
confusion, and ensure compliance with the Federal Acquisition 
Regulation (FAR). Specifically, DOT is revising the term ``commercial 
items'' to reflect either ``commercial products and commercial 
services'' or ``commercial products or commercial services'' in 
alignment with FAR final rule, Federal Acquisition Regulation: Revision 
of Definition of ``Commercial Item'', RIN 9000-AN76, effective December 
6, 2021 (86 FR 61017). There are 28 mentions of the legacy term 
``commercial items'' that were identified in the TAR proposed rule 
amendatory language in various TAR parts, subparts, and sections, to 
include titles as well as the underlying text. The legacy term 
``commercial items'' was also referenced in two FAR clause references 
where the FAR title has also been revised because of the referenced FAR 
final rule.
    The TAR is also updating terminology under TAR part 1239, 
Acquisition of Information Technology, and subpart 1239.2, to reflect a 
FAR change in terminology from ``Electronic and Information 
Technology'' to ``Information and Communication Technology.'' This 
includes a change in the heading of subpart 1239.2 to correspond with 
the new FAR subpart heading.
    Accordingly, DOT is revising the TAR final rule to reflect the 
updated terminology in accordance with the FAR final rules as reflected 
in the amendatory text as follows (items number 1-14 below):
    1. Under 48 CFR chapter 12, Transportation Acquisition Regulation, 
Table of Contents, the title for TAR part 12, Acquisition of Commercial 
Items, DOT is revising the title from ``Acquisition of Commercial 
Items,'' to ``Acquisition of Commercial Products and Commercial 
Services''.
    2. Under TAR part 12, Acquisition of Commercial Items, DOT is 
revising the title from ``Acquisition of Commercial Items,'' to 
``Acquisition of Commercial Products and Commercial Services''.
    3. Under TAR part 12, in the Table of Contents, subpart 1213.3, DOT 
is revising the heading for subpart 1212.3 from ``Solicitation 
Provisions and Contract Clauses for the Acquisition of Commercial 
Items'' to read ``Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Products and Commercial Services.''
    4. Under TAR part 12, in the Table of Contents, section 1212.301, 
Solicitation provisions and contract clauses for the acquisition of 
commercial items, DOT is revising the heading to read ``Solicitation 
provisions and contract clauses for the acquisition of commercial 
products and commercial services.''
    5. At subpart 1212.3 DOT is revising the heading from 
``Solicitation Provisions and Contract Clauses for the Acquisition of 
Commercial Items'' to read ``Solicitation Provisions and Contract 
Clauses for the Acquisition of Commercial Products and Commercial 
Services.''
    6. At section 1212.301, DOT is revising the heading from 
``Solicitation provisions and contract clauses for the acquisition of 
commercial items'' to read ``Solicitation provisions and contract 
clauses for the acquisition of commercial products and commercial 
services.''
    7. Under section 1212.301, at paragraph (f), DOT is revising 
``commercial items'' to read ``commercial products or commercial 
services.''
    8. Under section 1239.7003, Contract clauses, in paragraphs (a), 
(b), and (c), where DOT sets forth the prescription to contract clauses 
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; and 1252.239-74, 
Safeguarding DOT Sensitive Data and Cyber Incident Reporting, 
respectively, DOT is revising the phrase ``commercial items'' in each 
prescription to read ``commercial products and commercial services.'' 
Additionally, in paragraph (b), in the prescription for clause 
1252.239-73, Limitations on the Use or Disclosure of Third-Party 
Contractor Reported Cyber Incident Information,

[[Page 61153]]

DOT is adding the word ``commercial'' before ``services'' in the last 
sentence.
    9. Under section 1239.7204, Contract clauses, in each of the 
prescriptions in paragraphs (a) through (m), for clauses 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; 
and 1252.239-88, Security Alerts, Advisories, and Directives, 
respectively, DOT is revising the phrase ``commercial items'' in each 
prescription to read ``commercial products and commercial services.''
    10. Under section 1252.232-71, Limitation of Government's 
Obligation, paragraph (b), where it discusses incrementally funding 
Contract Line Items Numbers (CLIN(s)), DOT is revising the heading of 
the referenced FAR clause 52.214-4, ``Commercial Terms and Conditions--
Commercial Items,'' to read ``Commercial Terms and Conditions--
Commercial Products and Commercial Services.'' And in paragraph (e), 
where it discusses the termination provisions and references FAR clause 
52.212-4, the heading is also revised to reflect the new updated FAR 
heading of ``Commercial Terms and Conditions--Commercial Products and 
Commercial Services.''
    11. Under section 1252.239-73, Limitations on the Use or Disclosure 
of Third-Party Contractor Reported Cyber Incident Information, in 
paragraph (c), Subcontract flowdown requirement, of the clause, DOT is 
revising the phrase ``commercial items'' to read ``commercial products 
or commercial services.''
    12. Under section 1252.239-74, Safeguarding DOT Sensitive Data, and 
Cyber Incident Reporting, in paragraph (o)(1) of the clause, DOT is 
revising the phrase ``commercial items'' to read ``commercial products 
or commercial services.''
    13. Under section 1252.239-76, Cloud Computing Services, in 
paragraph (j), Subcontract flowdown requirement, DOT is revising the 
phrase ``commercial items'' to read ``commercial products or commercial 
services.'' Additionally, DOT is revising the TAR final rule to revise 
the use of the terminology from ``electronic and information technology 
(EIT)'' to the FAR updated usage of ``Information and Communication 
Technology'' as shown below in item number 14.
    14. The following technical/administrative non-substantive 
revisions to TAR subpart 1239.2 were made to reflect updated FAR 
terminology:
    a. Heading of subpart 1232.9 is revised from ``Electronic and 
Information Technology'' to read ``Information and Communication 
Technology.''
    b. Under section 1239.201, Scope of subpart, the first sentence 
referring to ``EIT'' is removed and ``Information and Communication 
Technology (ICT)'' is used instead. The FAR was updated to reflect 
``Information and Communication Technology'' and the TAR final rule 
incorporates this new term and usage as well.
    c. Under section 1239.203, Applicability, the phrase, 
``Solicitations for information technology (information and 
communication technology) or IT-related supplies and services may 
require submission of a Section 508 Checklist . . .'' is revised to 
read ``Solicitations for information and communication technology 
supplies and services may require submission of a section 508 Checklist 
. . .'' to align with the FAR usage of the updated terminology.
    d. Under section 1252.239-93, Information and Communication 
Technology Accessibility, paragraph (a), Definition, is removed in its 
entirety. The term ``Electronic and Information Technology (EIT)'' 
supplies and services is no longer necessary because the FAR is updated 
to reflect the usage of the phrase ``Information and Communication 
Technology'' and the TAR final rule incorporates this new usage as 
well.
    15. Additionally, the following minor administrative corrections 
were made to reflect appropriate citation references in accordance with 
the U.S. Government Publishing Office (GPO) Style Manual and the FAR 
Drafting Guide:
    a. Under section 1201.104, paragraph (a), the reference to 
``Chapter 12'' is revised to read ``chapter 12.''
    b. Under section 1224.103, the reference ``49 CFR part 10'' is 
revised to read ``49 CFR part 10.''
    c. Under section 1224.203, the reference ``49 CFR part 7'' is 
revised to read ``49 CFR part 7.''
    d. Under section 1239.7402, paragraph (a), the reference to ``36 
CFR Chapter XII Subchapter B'' is revised to read ``36 CFR chapter XII, 
subchapter B.''
    e. Under section 1252.239-75, DOT Protection of Information About 
Individuals, PII, and Privacy Risk Management Requirements, paragraph 
(c)(1), the reference to ``49 CFR part 10'' is revised to read ``49 CFR 
part 10.''
    f. Under section 1252.239-91, Records Management, paragraph (b), 
the reference to ``36 CFR Chapter XII Subchapter B'' is revised to read 
``36 CFR chapter XII, subchapter B''.
    16. DOT also makes the following general non-substantive technical 
and administrative updates to correct grammar or other sentence 
formatting and structure, as well as to provide clarity to current DOT 
policies and procedures:
    a. Under section 1201.102-70, paragraph (a), the second sentence is 
revised to read ``. . . and to ensure that the process embodies 
fairness . . .'' in lieu of ``to embody fairness . . .''.
    b. Under section 1201.105-2, Arrangement of regulations, in the 
illustrations at paragraphs (c)(3)(iv) and (v), the TAR citations are 
corrected to reflect the example citation of TAR 1201.105-2.
    c. Under section 1201.301, Policy, paragraph (a)(1)(ii), the title 
``Senior Executive'' is revised to read ``Senior Procurement 
Executive.''
    d. Under section 1201.301-70, Amendment of the Transportation 
Acquisition Regulation, paragraph (a), we added a phrase at the end of 
the email address to provide clarity that proposed changes ``must 
include the following elements'' referring to paragraphs (a)(1) through 
(4).
    e. Under section 1201.301-71, Effective dates for Transportation 
Acquisition Circulars (TACs), in paragraph (a), the word, ``or'' is 
added between ``effective upon receipt'' or ``upon a specified date,'' 
to ensure proper sentence construction.
    f. Under section 1203.204, Treatment of violations, ``DOT'' is 
substituted for the referenced ``Government'' legal counsel in 
paragraphs (a) and (c) to specify DOT legal counsel will provide advice 
to heads of contracting activities.
    g. Under section 1203.301, General, ``DOT'' is substituted for the 
referenced ``Government'' legal counsel in paragraph (b).
    h. Under section 1203.405, Misrepresentations or violations of the 
Covenant Against Contingent Fees, ``DOT'' is substituted for the 
referenced ``Government'' legal counsel in paragraph (a).

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    i. In section 1204.804-570, Supporting closeout documents, the 
sentence is reconstructed to move the parenthetical reference referring 
to paragraphs (a)(1) through (4) later in the sentence.
    j. In section 1204.1301, Policy, the phrase ``or NIST issued 
successor publications'' is removed as unnecessary.
    k. Under section 1209.403, Definitions, minor revisions are made 
for clarity--
    (i) Under the definition ``DOT Order 4200.5G'' the phrase ``or its 
successor'' is removed as unnecessary.
    (ii) Under the definition ``Senior Accountable Official (SAO) for 
Suspension and Debarment,'' the term ``departmental'' is removed, and 
the phrase ``for the Department of Transportation'' is added to the 
second sentence.
    (iii) Under the definition ``Suspension and Debarment Coordinator 
(SDC),'' the term ``Suspending and Debarring Official (SDO)'' is 
spelled out to ensure clarity.
    (iv) Under the definition ``Suspending and Debarring Official 
(SDO),'' administrative edits to remove the spelled-out term for the 
Office of the Secretary of Transportation is removed, and a website 
address for where a list of DOT Operating Administration (OA)-appointed 
SDOs is provided.
    l. In section 1209.405, Effect of listing, in paragraph (e)(2), the 
phrase ``that a compelling reason exists'' is revised to ``of 
compelling reasons to''. And in paragraph (e)(3), the phrase ``that a 
compelling reason exists'' is revised to ``of compelling reasons''.
    m. In section 1209.406-1, General, paragraph (c), the word ``each'' 
is inserted before ``OA-appointed SDO . . .''.
    n. In section 1209.406-3, Procedures, paragraph (d)(2), a comma 
after ``The SDO reviews submittals'' is removed, and the word ``and'' 
is inserted.
    o. In section 1209.407-3, Procedures, paragraph (d), in the second 
sentence a comma after ``The SDO reviews submittals'' is removed and 
the word ``and'' is inserted.
    p. Under part 1213, Simplified Acquisition Procedures, in section 
1213.7000, Applicability, in paragraph (a) the word ``also'' is removed 
before the phrase ``applies to Standard Form (SF) 182, . . .''.
    q. Under part 1219, Small Business Programs, in section 1219.7000, 
General, the link has been updated to a more direct link to DOT's 
mentor-prot[eacute]g[eacute] program material on the Office of Small 
and Disadvantaged Business Utilization (OSDBU) website.
    r. Under part 1223, Environment, Energy and Water Efficiency, 
Renewable Energy Technologies, Occupational Safety, and Drug-Free 
Workplace, in section 1223.7000, Contract clauses, paragraph (c), the 
sentence is reconstructed to make the prescription clear by moving the 
condition to the front of the sentence that the clause prescribed shall 
be inserted ``in all solicitations and contracts exceeding the 
simplified acquisition threshold, . . .''.
    s. Under part 1232, Contract Financing, in section 1232.770-4, 
Policy, paragraph (a)(1), the word ``or'' is added in the second 
sentence after ``DOT''. And in paragraph (a)(6), the word ``an'' is 
added before ``individual''.
    t. In section 1232.7003, Payment system registration, the two 
sentences that comprised the proposed text of the section are removed 
as they may duplicate some of the language as stated in section 
1232.7002(a). The section heading is retained to reflect the coverage 
in the underlying subsections.
    u. In section 1235.010-70, Scientific and technical reports--
acquisition, publication and dissemination, we are removing the section 
in its entirety as it is unnecessary. The FAR adequately covers content 
in this area, though DOT may consider adopting an agency-specific 
policy.
    v. In section 1235.070, Research misconduct, in paragraph (a), we 
have included a link to the cited DOT Deputy Secretary Memorandum, 
Implementation of Departmental Scientific Integrity Policy, April 10, 
2012, and have removed a reference to an outdated policy document. Note 
that DOT intends to update its scientific integrity policies and the 
TAR as necessary consistent with the Presidential Memorandum on 
Restoring Trust in Government Through Scientific Integrity and 
Evidence-Based Policymaking (Jan. 27, 2021).
    w. Under part 1237, Service Contracting, in section 1237.110-70, 
Contract clauses, in paragraph (a), the word ``and,'' is added after 
``Government facilities''.
    17. General non-substantive technical updates to the proposed rule 
pertaining to part 1239, Acquisition of Information Technology. The 
following non-substantive minor administrative corrections were made to 
correct grammar or other sentence formatting and structure, as well as 
to provide clarity to current DOT policies and procedures:
    a. In section 1239.000, Scope of part, DOT is removing the phrase 
``information technology-related services and'' after the word 
``including'' as it is duplicative to the earlier part of the sentence.
    b. In section 1239.101-70-3, Policy, the section is revised 
slightly to clarify it by adding ``products or services supporting 
the'' before the word ``development'' and the word ``software'' after 
DOT.
    c. In section 1239.7001, Definitions, under the definition for 
``DOT sensitive data'' the word ``as'' is removed after ``unclassified 
information''.
    d. In section 1239.7203, DOT FedRAMP specific requirements, 
paragraph (b), Digital signature cryptography--(authentication, data 
integrity, and non-repudiation), DOT has added ``(1-4)'' after the 
phrase, ``contracting officers shall specify what level'' to denote 
those FIPS 140-2 (1-4) levels referenced in paragraph (a). In paragraph 
(d), Cloud identification and authentication (organizational users) 
multi-factor authentication, the phrase ``or successor publications'' 
is removed after the FIPS 201-2, Personal Identity Verification (PIV) 
of Federal Employees and Contractors reference as it is unnecessary to 
include the phrase. In paragraph (e), the phrase ``are required to'' is 
removed as it is redundant. In paragraph (i), the word ``who'' is 
inserted in the first sentence before the phrase ``shall undergo 
required DOT background investigations . . .'' to correct grammar.
    e. In section 1239.7204, Contract clauses, in paragraph (h), the 
prescription for clause 1252.239-83 is revised be removing the words 
``all services'' before the phrase ``solicitations and contracts,'' and 
the word ``and'' is removed before ``for information technology 
services . . .'' as both are unnecessary. In paragraph (k), the word 
``all'' is removed before ``solicitation and contracts,'' as 
unnecessary.
    f. In section 1239.7302, Policy, the word ``will'' is removed as 
unnecessary.
    g. In section 1239.7400, Scope of subpart, the last word in the 
section ``exists'' is revised to ``exist.''
    h. In section 1239.7402, Policy, paragraph (a)(1), the phrase ``the 
Federal Records Act'' is removed as an incorrect title reference, and 
the word ``and'' is added in the citation references. In paragraph 
(a)(2), the phrase ``the Federal Records Act'' is removed as an 
incorrect title reference, and the phrase ``records management laws 
and'' is inserted after ``relevant'' and the words ``statute or'' is 
removed, and an ``s'' is added to regulations, and the comma is removed 
after ``regulation'' so the latter part of the sentence now reads: ``. 
. . only as permitted by relevant records management laws and 
regulations . . .''.

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In paragraph (a)(3), the citation for 36 CFR part 1230 is corrected by 
adding the word ``part'' as shown. In paragraph (a)(4), the phrase ``, 
is properly protected'' is removed at the end of the first sentence.
    i. In section 1239.7403, Contract clause, the word ``or'' is 
removed before the word ``disseminate'' so the end of the sentence now 
reads: ``. . . associates collect, access, maintain, use, disseminate 
or otherwise handle Federal records.''
    18. Additional general non-substantive technical updates to the 
proposed rule that follow part 1239 follow. These also include the 
following non-substantive minor administrative corrections to correct 
grammar or other sentence formatting and structure, as well as to 
provide clarity to current DOT policies and procedures:
    a. Under part 1242, Contract Administration and Audit Services, in 
section 1242.302, Contract administration functions, paragraph (a), the 
word ``either'' is removed before ``the cognizant government auditing 
agency,'' as unnecessary. In paragraph (a)(13), the acronym ``OA'' is 
moved after ``cognizant'' in the second sentence.
    b. Under part 1246, Quality Assurance, in section 1246.101-70, 
Additional definitions, under the definition ``Major acquisition'' the 
word ``also'' is removed before ``for information technology or 
information technology related acquisitions, . . .'' as unnecessary.
    c. In section 1246.706-70, Warranty terms and conditions--
requirements, in paragraph (a)(9), the word ``and'' is added after 
``(e.g., delivery, acceptance, in-service date)'', the word ``ending'' 
is revised to read ``end'', the word ``period'' is added after 
``warranty'', and the word ``specify'' is added before 
``circumstances'' in order to provide better clarity to the flow of the 
sentence and meaning. In paragraph (b)(1), the word ``that'' is 
substituted for ``which.'' In paragraph (b)(3), at the beginning of the 
sentence the word ``The'' is removed and replaced with ``A'' so it 
reads ``A warranty provided . . .''.
    d. Under part 1247, Transportation, in section 1247.506, 
Procedures, the long run-on sentence is broken up by adding a period 
after ``are not available'' and the words ``MARAD can also'' is added 
to start the next sentence, and the words ``and they can'' are removed.
    19. Finally, in parts 1252 and 1253 these technical non-substantive 
revisions are reflected in the following provisions, clauses, or form 
prescription published in the proposed rule. These also include the 
following non-substantive minor administrative corrections to correct 
grammar or other sentence formatting and structure, as well as to 
provide clarity to current DOT policies and procedures:
    a. In section 1252.204-70, Contractor Personnel Security and Agency 
Access, under paragraph (a), Definitions, the following definitions had 
minor administrative or grammatical updates: ``Contractor employee'' 
and ``Identification card (or ``ID Card'').'' In paragraph (b), the 
words ``each level'' was added so the text before the list of levels 
now reads ``and each level includes the prior levels''. In paragraph 
(f), Background investigation and adjudication, ``PIV-1'' is corrected 
to reflect ``PIV-I''.
    b. In section 1252.209-71, Limitation of Future Contracting, in 
paragraph (c)(2), the word ``remains'' is revised to use ``remain'' in 
the phrase ``. . . if these data remain proprietary or confidential, . 
. .''.
    c. In section 1252.217-72, Performance, in paragraph (d), the words 
``or not'' are removed before ``the Contractor''.
    d. In section 1252.217-73, Inspection and Manner of Doing Work, 
paragraph (e)(9), the singular word ``valve'' is revised to reflect 
``valves.''
    e. In section 1252.217-76, Liability and Insurance, paragraph 
(b)(3)(i)(C) is revised to add ``regardless of'' before ``whether'' and 
to remove ``or not'' after ``whether'' in both instances. In paragraph 
(c)(2), in the last sentence the word ``does'' is deleted, and the 
singular word ``apply'' is revised to ``applies''. This corrects the 
grammar and readability of the sentence. In paragraph (f)(3), the word 
``in'' is removed before ``the conduct of suits'' in the first sentence 
so the end of the sentence now reads: ``. . . attendance of witnesses, 
and the conduct of suits.''
    f. In section 1252.222-72, Contractor Cooperation in Equal 
Employment Opportunity and Anti-Harassment Investigations, in paragraph 
(a), Definitions, under the definition ``Good faith cooperation,'' 
paragraph (3), the words ``the course of'' are deleted before ``EEO'', 
and in paragraph (5) under that definition, the term ``the Merit 
Systems Protection Board'' is spelled out. In paragraph (b), the term 
``Equal Employment Opportunity'' is removed and the acronym ``EEO'' 
remains.
    g. In section 1252.223-73, Seat Belt Use Policies and Programs, we 
are removing a reference to a public-private partnership organization 
promoting traffic safety. DOT retains a reference to a DOT traffic 
safety website.
    h. In section 1252.228-70, Loss of or Damage to Leased Aircraft, 
the phrase ``as it wishes'' is removed and the phrase ``in its 
discretion'' is used in its place as more appropriate terminology.
    i. In section 1252.232-70, Electronic Submission of Payment 
Requests, paragraph (c), the words ``For vendors'' is removed in the 
third sentence and replaced with ``Vendors'' and the words ``they will 
be'' are also removed and replace with ``are'' so the sentence reads 
more clearly now as ``Vendors submitting invoices are required . . .''. 
In paragraph (d), the phrase at the beginning of the sentence ``In 
order to'' is removed and replaced with ``To'' so the start of the 
sentence now reads ``To receive payment . . .''. And in paragraph (g), 
the last sentence removes ``has been'' after ``DELPHI'' and adds the 
word ``is'' so it now reads at the beginning of the sentence, ``If 
DELPHI is succeeded by later technology . . .''.
    j. In section 1252.235-70, Research Misconduct, in paragraph 
(c)(2), the word ``or'' is removed before ``knowingly'' so it now 
reads: ``The misconduct must have been committed intentionally, 
knowingly, or recklessly; and . . .''. In paragraph (f)(3)(i), the text 
is removed in its entirety as duplicative of a similarly worded 
paragraph in (h) and thus unnecessary; the clarifying sentence is moved 
to paragraph (h). The text in paragraph (f)(3)(ii) is moved up into 
paragraph (f)(3) and the designation of (ii) is removed as unnecessary.
    k. In section 1252.235-71, Technology Transfer, in paragraph 
(a)(5), the word ``of'' is removed before ``interest'' and the word 
``interest'' is revised to ``interested'' so it now reads as follows at 
the end of the sentence, ``stakeholders most likely to be interested in 
the commercialization of the research outputs;''. In paragraph (a)(7), 
the Contracting Officer fill-in is moved to the end of the sentence.
    l. In section 1252.237-70, Qualifications of Contractor Employees, 
in paragraph (a) the first sentence is revised to add ``is proprietary 
data or'' before ``if subject to unauthorized access,'' and is removed 
from later in the sentence for clarity. In paragraph (b), the word 
``or'' is inserted before ``sensitive information or resources''. And 
in paragraph (c), the word ``of'' is inserted before ``those 
employees.''
    m. In section 1252.239-70, Security Requirements for Unclassified 
Information Technology Resources, paragraph (b), in the last sentence, 
the word ``and'' is removed after ``. . . in accordance with Federal 
and DOT policies and procedures,'' and the word ``,which'' is added 
after ``as amended during the terms of this contract,'' and word 
``and'' is removed before ``include''.

[[Page 61156]]

    n. In section 1252.239-72, Compliance with Safeguarding DOT 
Sensitive Data Controls, paragraph (c), DOT added the reference to 
``Revision 2'' to the NIST 800-171 reference and title and updated a 
new direct link to the cited publication at nist.gov. We also added in 
the Revision 2 (Rev. 2) reference in the clause at paragraphs (d) and 
(e).
    o. In section 1252.239-74, Safeguarding DOT Sensitive Data and 
Cyber Incident Reporting, we revised the wording in paragraph (a) under 
the definition for ``Adequate security'' to remove ``balance and'' 
before the phrase ``are commensurate'', to remove ``impact and'' before 
``consequences'', to add the words ``and probability'' after 
``consequences'', and to delete the word ``the'' before ``loss, 
misuse''. In paragraphs (b)(2)(i) through (iv), references are updated 
and an updated link is provided. In paragraph (b)(2)(v), the word 
``to'' is removed before ``have an alternate'' so the end of the 
sentence now reads ``. . . to be nonapplicable, or have an alternative, 
but equally effective, security measure that may be implemented in its 
place.'' In paragraph (b)(2)(vi), the words ``the Contractor'' is added 
after ``Contracting Officer when'' to clarify who is doing the 
requesting and ``requesting'' is revised to ``request''. The end of the 
sentence now reads as follows: ``. . . a copy of that approval shall be 
provided to the Contracting Officer when the Contractor requests its 
recognition under this contract.'' In paragraph (c)(1)(i), the word 
``that'' is removed after ``DOT sensitive data'' in the second 
sentence, and the words ``whether the incident'' is added and 
``affect'' is revised to ``affects'' so the end of the last/second 
sentence now reads: ``. . . in order to identify compromised DOT 
sensitive data or whether the incident affects the Contractor's ability 
to provide operationally critical support; and . . .''. And in 
paragraph (o), Subcontract flowdown requirements, the reference to NIST 
SP 800-171 is updated to add ``Rev. 2.''
    p. In section 1252.239-75, DOT Protection of Information About 
Individuals, PII, and Privacy Risk Management Requirements, paragraph 
(n), Subcontract flowdown requirements, paragraph (n)(1), the word 
``its'' is removed before ``provisions relating to'' and the word 
``and'' is deleted before ``Breach Notification''.
    q. In section 1252.239-76, Cloud Computing Services, paragraph 
(b)(4), the reference to NIST Special Publication 800-53 is updated to 
reflect ``Revision 5.'' In paragraph (b)(6)(ii), the phrase ``DOT 
Order'' is revised to add an ``s'' and to add ``containing'' 
immediately afterward so it now reads: ``. . . FedRAMP and DOT Orders 
containing cybersecurity and privacy policies.'' In paragraph (g), an 
``s'' is added to ``discover'' and ``isolate'' so the beginning of the 
sentence now reads ``The Contractor or subcontractor(s) that discovers 
and isolates malicious software. . . .''.
    r. In section 1252.239-77, Data Jurisdiction, in the first sentence 
the words ``in which'' are added after ``all data centers'' and the 
word ``that'' is deleted before ``the data'' so the beginning of the 
sentence now reads ``The Contractor shall identify all data centers in 
which the data at rest or data backup will reside, . . .''.
    s. In section 1252.239-81, Cloud Identification and Authentication 
(Organizational Users) Multi-Factor Authentication, at the end of the 
last sentence the phrase ``or NIST successor publications'' is removed 
as unnecessary.
    t. In section 1252.239-84, Media Transport, paragraph (a)(1) is 
reconstructed to remove ``that is transported outside of controlled 
areas'' after ``that require protection'' and a revised phrase of 
``when transported outside of controlled areas;'' is added at the end 
of the sentence. In paragraph (b), the phrase ``must ensure 
accountability'' is removed at the end of the first sentence as it is 
redundant to a similar phrase earlier in the sentence.
    u. In section 1252.239-85, Personnel Screening--Background 
Investigations, an updated active link is provided to a website 
containing the referenced Office of Management and Budget (OMB) 
memorandum.
    v. In section 1252.239-88, Security Alerts, Advisories, and 
Directives, the words ``who are'' are added before ``assigned system 
administration, . . .'' and the word ``who'' is added after the words, 
``and/or security responsibilities and who are . . .''.
    w. In section 1252.239-89, Technology Modernization, the word 
``or'' is added before ``strengthen the cyber security posture'' in the 
second sentence.
    x. In section 1252.239-91, Records Management, paragraph (b)(1), 
the words ``the Federal Records Act'' is removed as an incorrect title 
reference, and the word ``and'' is inserted in the citation reference 
chapters for 44 U.S.C. And in paragraph (b)(2), the words ``other'' is 
inserted before ``relevant statute'' at the end of the paragraph, ``s'' 
is added to ``statute'' and ``regulation'' so it now reads at the end 
of the last sentence: ``. . . ``other relevant statutes or regulations, 
. . .''. And in paragraph (d), the word ``The'' is added to start the 
sentence before ``Contractor'' in the second and third sentence.
    y. In sections 1252.239-92, Information and Communication 
Technology Accessibility Notice, and 1252.239-93, Information and 
Communication Technology Accessibility, an updated link to the 
www.section508.gov site is provided in each.
    z. Under part 1253, Forms, in section 1253.204-70, Administrative 
matters--agency specified forms, paragraph (b), DOT is providing the 
link to the DOT website where forms may be obtained and removing 
reference to an appendix as the forms controlled by DOT are provided at 
the linked website.
    These minor technical nonsubstantive revisions will ensure DOT's 
updated regulation is clear and contains the most recent citations, 
references, links, and current procedures.
    The Department emphasizes that, in addition to the changes 
finalized in this rulemaking, it continues to track 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 American 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

[[Page 61157]]

use this public input to inform how DOT implements such guidance in the 
TAR.

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.

Paperwork Reduction Act

    This final rule includes provisions constituting new 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 submitted the 
information collections to OMB for review and approval. No comments 
were received on the proposed collections of information. 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 directed by OMB.
    Notwithstanding any other provision of law, no person shall be 
subject to any penalty for failing to comply with a collection of 
information that does not display a valid OMB control number.

Regulatory Flexibility Act

    DOT expects that the overall impact of the rule would benefit small 
businesses because the updated TAR, among other things, revised 
outdated information, removed extraneous procedural information that 
applies only to DOT's internal operating procedures, and removed 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 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 based on the foregoing, DOT has determined that the agency is 
not required to prepare a Final Regulatory Flexibility Analysis (FRFA), 
DOT has prepared a FRFA that is summarized here. No comments were 
received by the agency on the proposed rule or on the summary of the 
Initial Regulatory Flexibility Analysis.

Final Regulatory Flexibility Analysis

    This Final Regulatory Flexibility Analysis has been prepared 
consistent with 5 U.S.C. 604.
1. Statement of the Need for, and the Objectives of, the Rule
    DOT is issuing a final rule amending 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 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 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 Acquisition Regulatory 
Council (FAR Council) contemplated in their previous FAR rules on IT 
that subsequent supplemental policymaking 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.
    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.
2. Statement of the Significant Issues Raised by the Public Comments in 
Response to the Initial Regulatory Flexibility Analysis, a Statement of 
the Assessment of the Agency of Such Issues, and a Statement of any 
Changes Made to the Rule as a Result of Such Comments
    There were no public comments on the proposed rule, and there were 
no significant issues or comments raised by the public in response to 
the initial regulatory flexibility analysis.
3. The Response of the Agency to any Comments Filed by the Chief 
Counsel for Advocacy of the Small Business Administration in Response 
to the Proposed Rule, and a Detailed Statement of any Change Made to 
the Proposed Rule in the Final Rule as a Result of the Comments
    No comments were filed in response to the proposed rule.
4. 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

[[Page 61158]]

System (NAICS) codes that could be affected for three fiscal years--FY 
2017, 2018, and 2019 as set forth in the table below. DOT focused on 
businesses that could be impacted by the revisions to part 1239, 
Acquisition of Information Technology, because of the potential costs 
resulting from the associated Paperwork Reduction Act information 
collection burdens, the cost of which may be assessed by businesses and 
included in any proposed price for performance under any awarded 
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 Programming              896           1,964             870           3,730           1,243
                                             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 Consulting               86              53              40             179              60
                                             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 Support                20              20              25              65              22
                                             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.
    DOT received no comments from the public based on these estimates. 
To ensure our original estimates remain roughly the same, we pulled 
additional data for FY 2020 and FY 2021. Because DOT recognizes that 
the ongoing COVID-19 pandemic during that period may skew that data and 
its overall utility, we retain the data estimates from FY 2017-FY 2019 
as shown above, and provide the updated information experienced in FY 
2020 and FY 2021 below:

----------------------------------------------------------------------------------------------------------------
          NAICS              NAICS description        FY 2020         FY 2021          Total          Average
----------------------------------------------------------------------------------------------------------------
518210..................  Data Processing,                   336             525             861             431
                           Hosting, and Related
                           Services.
541199..................  All Other Legal                     19              21              40              20
                           Services.
541511..................  Custom Computer                    769             750            1519             760
                           Programming Services.
541512..................  Computer Systems                   998            1092           2,090            1045
                           Design Services.
541513..................  Computer Facilities                334             248             582             291
                           Management Services.
541519..................  Other Computer Related            1280            1181            2461            1231
                           Services.
541618..................  Other Management                    49              35              84              42
                           Consulting Services.
541990..................  All Other                         1247            1263            2510            1255
                           Professional,
                           Scientific, and Tech.
                           Svcs..
561110..................  Office Administrative              251             183             434             217
                           Services.
561499..................  All Other Business                  31              34              65              33
                           Support Services.
561621..................  Security Systems                   231             135             366             183
                           Services.
                                                 ---------------------------------------------------------------
                             Total..............           5,545           5,467          11,012           5,508
----------------------------------------------------------------------------------------------------------------

    The data from FY 2020 and FY 2021 reveal that small businesses that 
might potentially be impacted by the rule actually decreased. DOT 
awarded over 16,742 contracts for IT or IT-related services during FY 
2017 through FY 2019, but for FY 2020 and FY 2021, the same number of 
IT or IT-related services equated to 11,012. To estimate the number of 
small businesses potentially impacted by the rule, DOT notes that in FY 
2020, the department achieved a 34.05% goal of overall awards to all 
small business concerns across all NAICS and all operating 
administrations. The decrease in small business contract awards could 
be attributed to nationwide economic disruptions particularly to small 
businesses during the beginning of the COVID-19 pandemic. Using this 
updated figure to project the potential impact to small business 
entities who may be affected by the final rule, the Department 
estimates that these businesses could be awarded 10%--25% of such work, 
or up to 2,753 contracts awarded to small businesses and thus the 
impact to such businesses is decreased.
5. 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 recordkeeping and reporting requirements and estimated 
impacts were described in the Paperwork Reduction Act (PRA) section of 
the proposed rule and associated supporting statements are on file with 
the Office of Information and Regulatory

[[Page 61159]]

Affairs, the Office of Management and Budget. Those requirements and 
estimated impacts are incorporated into this FRFA by reference.
6. Description of the Steps the Agency Has Taken To Minimize the 
Significant Economic Impact on Small Entities Consistent With the 
Stated Objectives of Applicable Statutes, Including a Statement of the 
Factual, Policy, and Legal Reasons for Selecting the Alternative 
Adopted in the Final Rule
    DOT considered whether any other alternatives would reduce the 
impact on small businesses but concluded that the rule is necessary for 
consistency with the FAR, for FISMA compliance, and to ensure the 
information security and integrity of DOT information and information 
systems. Many of the provisions of the rule are intended to align with 
the FAR, update outdated procedures, remove internal operational 
procedures thus streamlining regulation, which could also potentially 
reduce the impact on small entities complying with the TAR.

Section 610 Review

    As noted in the Department's portion of the Spring 2022 Unified 
Agenda, this final rule satisfies the Department's periodic review 
requirement pursuant to the Regulatory Flexibility Act, 5 U.S.C. 610.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 (UMRA) requires, at 2 
U.S.C. 1532, that agencies prepare an assessment of anticipated costs 
and benefits before issuing any rule that may result in the expenditure 
by State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. DOT has determined that this final 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.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

List of Subjects

48 CFR Part 1201

    Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 1203

    Conflict of interest, Government procurement.

48 CFR Parts 1202, 1204, 1205, 1206, 1207, 1209, 1211, 1212, 1213, 
1215, 1216, 1217, 1223, 1224, 1233, 1236, 1237, 1239, 1252, and 1253

    Government procurement.

48 CFR Part 1219

    Government procurement, Small businesses.

48 CFR Part 1222

    Government procurement, Labor.

48 CFR Part 1227

    Copyright, Government procurement, Inventions and patents.

48 CFR Part 1228

    Government procurement, Insurance, Surety bonds.

48 CFR Parts 1231, 1232, and 1242

    Accounting, Government procurement.

48 CFR Part 1235

    Government procurement, Research.

48 CFR Part 1246

    Government procurement, Warranties.

48 CFR Part 1247

    Government procurement, Transportation.

    Signed on or around September 2, 2022.
Polly E. Trottenberg,
Deputy Secretary, Department of Transportation.


0
For the reasons set out in the preamble, DOT amends title 48 of the 
Code of Federal Regulations by revising chapter 12 to read as follows:

CHAPTER 12--DEPARTMENT OF TRANSPORTATION

SUBCHAPTER A--GENERAL


PART 1200 [RESERVED]
PART 1201 FEDERAL ACQUISITION REGULATIONS SYSTEM
PART 1202 DEFINITIONS OF WORDS AND TERMS
PART 1203 IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST
PART 1204 ADMINISTRATIVE AND INFORMATION MATTERS
SUBCHAPTER B--ACQUISITION PLANNING
PART 1205 PUBLICIZING CONTRACT ACTIONS
PART 1206 COMPETITION REQUIREMENTS
PART 1207 ACQUISITION PLANNING
PART 1209 CONTRACTOR QUALIFICATIONS
PART 1211 DESCRIBING AGENCY NEEDS
PART 1212 ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES
SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES
PART 1213 SIMPLIFIED ACQUISITION PROCEDURES
PART 1214 [RESERVED]
PART 1215 CONTRACTING BY NEGOTIATION
PART 1216 TYPES OF CONTRACTS
PART 1217 SPECIAL CONTRACTING METHODS
SUBCHAPTER D--SOCIOECONOMIC PROGRAMS
PART 1219 SMALL BUSINESS PROGRAMS
PART 1222 APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
PART 1223 ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY 
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
PART 1224 PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION
SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS
PART 1227 PATENTS, DATA, AND COPYRIGHTS
PART 1228 BONDS AND INSURANCE
PART 1231 CONTRACT COST PRINCIPLES AND PROCEDURES
PART 1232 CONTRACT FINANCING
PART 1233 PROTESTS, DISPUTES, AND APPEALS
SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING
PART 1234 [RESERVED]
PART 1235 RESEARCH AND DEVELOPMENT CONTRACTING
PART 1236 CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
PART 1237 SERVICE CONTRACTING
PART 1239 ACQUISITION OF INFORMATION TECHNOLOGY
PART 1241 [RESERVED]
SUBCHAPTER G--CONTRACT MANAGEMENT
PART 1242 CONTRACT ADMINISTRATION AND AUDIT SERVICES
PART 1245 [RESERVED]
PART 1246 QUALITY ASSURANCE
PART 1247 TRANSPORTATION
SUBCHAPTER H--CLAUSES AND FORMS
PART 1252 SOLICITATION PROVISIONS AND CONTRACT CLAUSES
PART 1253 FORMS
PARTS 1254-1299 [RESERVED]

Subchapter A--General

PART 1200 [RESERVED]

PART 1201--FEDERAL ACQUISITION REGULATIONS SYSTEM

Subpart 1201.1--Purpose, Authority, Issuance
Sec.
1201.101 Purpose.

[[Page 61160]]

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 
(TACs).
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 through 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 ensure that the 
process embodies fairness and Governmentwide 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, 48 CFR chapter 1, and the TAR, in 
this chapter, 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 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 this chapter.


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

[[Page 61161]]

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 1201.105-2'' outside the TAR and 
``1201.105-2'' within the TAR.
    (v) Paragraph would be ``TAR 1201.105-2(b)'' outside the TAR and 
``1201.105-2(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 Procurement 
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 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] and 
must include the following elements:
    (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 Circulars (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,'' or ``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).

[[Page 61162]]

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

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

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

[[Page 61163]]

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--

            Table 1 to 1202.7000--Abbreviations and Acronyms
------------------------------------------------------------------------
 
------------------------------------------------------------------------
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

Subpart 1203.1--Safeguards
Sec.
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.
Subpart 1203.9--Whistleblower Protections for Contractor Employees
1203.906 Remedies.

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

[[Page 61164]]

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 DOT 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

Subpart 1204.1--Contract Execution

Sec.
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 through 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 and prior to contract closeout, the contracting 
officer shall obtain the listed DOT and Department of Defense (DOD) 
forms (see paragraphs (a)(1) through (4) of this section) from the 
contractor to facilitate contract closeout. See part 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, see FAR 52.216-7;
    (3) Form DOT F 4220.46, Cumulative Claim and Reconciliation 
Statement, see FAR 4.804-5(a)(13); and
    (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 
Taxpayer Identification Number (TIN) data, to the Internal Revenue 
Service (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, 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.

[[Page 61165]]

Subpart 1204.17--Service Contracts Inventory


1204.1703  Reporting requirements.

    (b)(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).

Subchapter B--Acquisition Planning

PART 1205--PUBLICIZING CONTRACT ACTIONS

Subpart 1205.1--Dissemination of Information
Sec.
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 through 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 in 49 CFR part 7 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 in 49 CFR part 7 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

Subpart 1206.2--Full and Open Competition After Exclusion of Sources
Sec.
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 through 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).

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 through 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.
1209.406-4 Period of debarment.
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.

[[Page 61166]]

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 through 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 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 standards for suspension and debarment policies and 
procedures for the Department of Transportation, 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 Suspending and 
Debarring Official (SDO). The SDC coordinates all materials for 
presentation to the SDO 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 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 at https://www.transportation.gov/assistant-secretary-administration/procurement/suspension-and-debarment.


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 of 
compelling reasons 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 of 
compelling reasons 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 each 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 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

[[Page 61167]]

    (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) of 
this section.
    (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. (1) 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 and 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 or internet. If so, the debarring official should change the 
notice in paragraph (c) of this section 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 1209.470. 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, 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

[[Page 61168]]

waive the suspension of contract payments, termination of a contract 
for default, or suspension of a contractor for actions under FAR 
subpart 23.5 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), 
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. 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, 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 
and 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. If so, the debarring 
official should change the notice in paragraph (c) of this section to 
include those flexible procedures.


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. 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

[[Page 61169]]

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 through 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 PRODUCTS AND COMMERCIAL 
SERVICES

Subpart 1212.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Products and Commercial Services
Sec.
1212.301 Solicitation provisions and contract clauses for the 
acquisition of commercial products and commercial services.

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

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


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

    (f) The following DOT provisions and clauses are authorized for use 
in acquisitions of commercial products or commercial services 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.
    (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.

[[Page 61170]]

    (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.

Subchapter C--Contracting Methods and Contract Types

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 through 1.304.

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


1213.7000  Applicability.

    (a) DOT policy at 1237.7000 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 through 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 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

Subpart 1216.2--Fixed-Price Contracts
Sec.
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 through 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

[[Page 61171]]

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) Task-order and delivery-order ombudsman. 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

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

Subchapter D--Socioeconomic Programs

PART 1219--SMALL BUSINESS PROGRAMS

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

[[Page 61172]]

    (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.

    (e) 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 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

[[Page 61173]]

DOT Office of Small and Disadvantaged Business Utilization (OSDBU) at 
https://www.transportation.gov/osdbu/procurement-assistance/mentor-protege-pilot-program.
    (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.
1222.101-7 1 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 through 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 through 1.304.

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 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) In all solicitations and contracts exceeding the simplified 
acquisition threshold, the contracting officer shall insert the clause 
at 1252.223-73, Seat Belt Use Policies and Programs.

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.


[[Page 61174]]


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

Subchapter E--General Contracting Requirements

PART 1227--PATENTS, DATA, AND COPYRIGHTS

Subpart 1227.3--Patent Rights Under Government Contracts
Sec.
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 through 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), (3), and (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 (c)(2)(ii) of this section. 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 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

Subpart 1228.1--Bonds and Other Financial Protections
Sec.
1228.106 Administration.

[[Page 61175]]

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 through 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.

    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 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 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 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

Subpart 1231.2--Contracts With Commercial Organizations
Sec.
1231.205 Selected costs.

[[Page 61176]]

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 through 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 through 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 or 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 an 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 provide written notice to the 
contractor that the Government is--
    (1) Obligating additional funds for continued performance and 
increasing the Government's limitation of obligation in a specified 
amount;
    (2) Obligating the full amount of funds needed;
    (3) Terminating for convenience, as applicable, the affected line 
items or contract; or
    (4) Considering whether to allot additional funds; and
    (i) The contractor is entitled by the contract terms to stop work 
when the Government's limitation of obligation is reached; and
    (ii) 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.

[[Page 61177]]

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 figure 1 to this section, Instructions for Completing 
the SF 1034, and figure 2 to this section, Instructions for Completing 
the SF 1035.

Figure 1 to 1232.905-70

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.
------------------------------------------------------------------------

Figure 2 to 1232.905-70

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.
    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

[[Page 61178]]

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.

Subpart 1232.70--Electronic Invoicing Requirements


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 Governmentwide 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.


1232.7003-1  Electronic authentication.

    Access to DELPHI is granted with electronic authentication of 
credentials (name & valid email address) utilizing the General Services 
Administration (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 through 1.304.

Subpart 1233.1--Protests


1233.103  Protests to the agency.

    (c) DOT Operating Administrations (OAs) shall consider the use of 
alternative dispute resolution (ADR) in all agency protest actions.


1233.104  Protests to GAO.

    The protest process at the Government Accountability Office (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) 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)(4)(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

[[Page 61179]]

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.

Subchapter F--Special Categories of Contracting

PART 1234 [RESERVED]

PART 1235--RESEARCH AND DEVELOPMENT CONTRACTING

Sec.
1235.003 Policy. 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 through 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 and 42.707(a) 
and Operating Administration (OA) procedures.
    (c) Recoupment. DOT recoupment not otherwise required by law shall 
be in accordance with OA procedures.


1235.011-70  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 in this part.


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 at https://www.transportation.gov/administrations/assistant-secretary-research-and-technology/memorandum-implementation-departmental. 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. 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.

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 through 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 through 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

[[Page 61180]]

will have access to Government facilities and 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.
1239.101-71 Scope.
1239.101-72 Definitions.
1239.101-73 Policy.
1239.106-70 Contract clauses.
Subpart 1239.2--Information and Communication 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 through 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 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).
    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.


1239.101-71  Scope.

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


1239.101-72  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.

[[Page 61181]]

    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.


1239.101-73  Policy.

    The contracting officer will ensure all documents involving the 
acquisition of products or services supporting the development or 
maintenance of DOT software 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--Information and Communication Technology


1239.201  Scope of subpart.

    This subpart applies to the acquisition of Information and 
Communication Technology (ICT) supplies and services. 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 subpart 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 and communication technology 
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.
    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.
    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.
    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 
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 the requirement in this subpart 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.

[[Page 61182]]

    (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 products and commercial services, 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 products and commercial services, for 
commercial 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 products 
and commercial services, 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--
    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.
    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.
    Information security means the protection of information and 
information systems from unauthorized access, use, disclosure, 
disruption, modification, or destruction in order to provide--
    (1) Integrity, which means guarding against improper information 
modification or destruction, and includes ensuring information non-
repudiation and authenticity;
    (2) Confidentiality, which means preserving authorized restrictions 
on access and disclosure, including means for protecting personal 
privacy and proprietary information; and
    (3) 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:
    (a) The Clinger-Cohen Act.
    (b) The E-Government Act.
    (c) Federal Information Systems Modernization Act.
    (d) Federal Information Processing Standards.
    (e) OMB Circular A-130, Managing Information as a Strategic 
Resource.
    (f) 49 CFR part 10, Maintenance of and Access to Records Pertaining 
to Individuals.
    (g) DOT Order 1351.18, Privacy Risk Management Policy.
    (h) DOT Order 1351.19, PII Breach Notification Controls.
    (i) DOT Order 1351.28, Records Management.
    (j) 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

[[Page 61183]]

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 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

[[Page 61184]]

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 (1-4) 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. 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 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 who 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 
products and commercial services, 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 products and commercial services, 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 solicitations and contracts, including those using 
FAR part 12 procedures for the acquisition of commercial products and 
commercial services, 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 products and 
commercial services, 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 products and 
commercial services, 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 products and commercial services, 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 products 
and commercial services, for information technology services involving 
cloud computing services.
    (h) The contracting officer shall insert a clause substantially as 
follows at

[[Page 61185]]

1252.239-83, Incident Reporting Timeframes, in solicitations and 
contracts, including those using FAR part 12 procedures for the 
acquisition of commercial products and commercial services, 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 products and commercial services, 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 products and 
commercial services, 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 solicitations and contracts, including those using FAR 
part 12 procedures for the acquisition of commercial products and 
commercial services, 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 products and commercial 
services, 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 products and commercial 
services, 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.
    Refresh means the periodic replacement of equipment to ensure 
continuing reliability of equipment and/or improved speed and capacity.
    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.
    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 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 exist.


1239.7401  Definition.

    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:
    (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.


 1239.7402  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 44 U.S.C. chapters 21, 29, 31, and 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 relevant records management laws 
and regulations and DOT Order 1351.28,

[[Page 61186]]

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 part 1230, 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. 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, disseminate, or otherwise 
handle Federal records.

PART 1241 [RESERVED]

Subchapter G--Contract Management

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 through 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), then DOT 
contracting officers are authorized to perform these functions with the 
assistance of 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 cognizant OA 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

[[Page 61187]]

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 through 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 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--
    (1) Life-cycle costs of $150 million or more;
    (2) Is a financial system, e-gov system, or e-business system with 
a life-cycle cost of $500,000 or more; or
    (3) An acquisition that does not meet the dollar thresholds of 
paragraph (1) or (2) of this definition but--
    (i) Is mission-critical;
    (ii) Requires special management attention because of its 
importance to an OA mission;
    (iii) Plays a significant role in the administration of OA 
programs, processes or other resources; or
    (iv) 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.

    The following restrictions are applicable to DOT contracts:
    (a) The contractor shall not be required to honor the warranty on 
any property furnished by the Government except for--
    (1) Defects in installation; and
    (2) Installation or modification in such a manner that invalidates 
a warranty provided by the manufacturer of the property.
    (b) Any warranty obtained shall specifically exclude coverage of 
damage in time of war (combat damage) or national emergency.
    (c) 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) and the end of the 
warranty period (e.g., passing a test or demonstration, or operation 
without failure for a specified period), and specify 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 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 that are commercially available, 
obtaining a warranty as is normally provided by the manufacturer or 
supplier, in accordance with FAR 46.703(d) and 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) A 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

[[Page 61188]]

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 through 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. 
MARAD can also 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 vessel's 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.

Subchapter H--Clauses and Forms

PART 1252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 1252.1--Instructions for Using Provisions and Clauses
Sec.
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 
and Anti-Harassment 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.
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.

[[Page 61189]]

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 through 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 (NOV 2022)

    (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 (NOV 2022)

    (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 a prime contractor and subcontractor 
employee who requires 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-Interoperable (PIV-I) 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 
each level includes 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 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-I 
(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

[[Page 61190]]

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 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 (NOV 2022)

    (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,

[[Page 61191]]

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 (NOV 2022)

    (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 remain 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 (NOV 2022)

    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:

Evaluation of Offers Subject to an Economic Price Adjustment Clause 
(NOV 2022)

    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 (NOV 2022)

    (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 (NOV 2022)

    (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 (NOV 2022)

    (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 pro-rata 
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 (NOV 2022)

    (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:

[[Page 61192]]

Guarantee (NOV 2022)

    (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.
    (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 (NOV 2022)

    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 (NOV 2022)

    (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 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 (NOV 2022)

    (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.
    (3) Maintain a reasonable number of hose lines ready for 
immediate use on the vessel

[[Page 61193]]

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 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 
valve 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 (NOV 2022)

    (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 (NOV 2022)

    (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 (NOV 2022)

    (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, regardless of whether the defect 
is latent or whether 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--
    (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,

[[Page 61194]]

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 applies 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 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 (NOV 2022)

    (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:

Discharge of Liens (NOV 2022)

    (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 (NOV 2022)

    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 (NOV 
2022)

    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 
(NOV 2022)

    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.

[[Page 61195]]

(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 (NOV 2022)

    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 (NOV 2022)

    (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 
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 Merit Systems Protection Board, 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 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)


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 (NOV 2022)

    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 (NOV 2022)

    (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 (NOV 2022)

    (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

[[Page 61196]]

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 (NOV 2022)

    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.
(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 (NOV 2022)

    (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 in its discretion. 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 credited 
to the Government in determining the amount of the Government's 
liability.
    (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 (NOV 2022)

    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 (NOV 2022)

    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 (NOV 2022)

    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 (NOV 2022)

    (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)


[[Page 61197]]


-----------------------------------------------------------------------
(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 (NOV 2022)

    The Contractor shall be entitled to reimbursement for costs 
incurred on or after__ [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 (NOV 2022)

    (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. Vendors 
submitting invoices are required to submit invoices via iSupplier 
(DELPHI) and authenticated via www.login.gov.
    (d) Invoice requirements. 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 www.login.gov account, the user will need a 
valid email address and a working phone number. The user will create 
a password and then www.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 is 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 (NOV 2022)

    (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....................  $                             $                          $
----------------------------------------------------------------------------------------------------------------

    (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

[[Page 61198]]

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 Products and Commercial Services.''
    (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 Products and Commercial Services.'' 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 (NOV 2022)

    (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 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, 
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

[[Page 61199]]

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.
    (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 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. 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.
    (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 (NOV 2022)

    (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 interested 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 the research outputs, 
outcomes, and impacts to [Fill-in: Contracting Officer to fill in 
the cognizant DOT/OA].
    (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.

[[Page 61200]]

(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 (NOV 2022)

    (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 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 (NOV 2022)

    (a) Definition. Sensitive information, as used in this clause, 
means any information that is proprietary data or, if subject to 
unauthorized access, modification, loss, or misuse, 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 or 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 of 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 (NOV 2022)

    (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 (NOV 2022)

    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 (NOV 2022)

    (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

[[Page 61201]]

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 
(NOV 2022)

    (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 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, as amended during the term 
of this contract, which 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 (NOV 2022)

    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 Senitive Data Controls (NOV 2022)

    (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, Revision 2, ``Protecting Controlled Unclassified 
Information in Nonfederal Information Systems and Organizations'' at 
https://csrc.nist.gov/publications/detail/sp/800-171/rev-2/final 
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, Rev. 2 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, Rev. 2.
    (e) The Office of the DOT CIO will evaluate offeror requests to 
vary from NIST SP 800-171, Rev. 2 requirements and inform the 
Offeror in writing of its decision before contract award. The 
Contracting Officer will incorporate accepted variance(s) from NIST 
SP 800-171, Rev. 2 into any resulting contract.

[[Page 61202]]

(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 (NOV 2022)

    (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 products or commercial services, 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 (NOV 2022)

    (a) Definitions. As used in this clause--
    Adequate security means protective measures that are 
commensurate with the consequences and probability of 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 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.

[[Page 61203]]

    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 (b)(2)(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, Revision 2, ``Protecting 
Controlled Unclassified Information in Nonfederal Information 
Systems and Organizations'' (available via the internet at https://csrc.nist.gov/publications/detail/sp/800-171/rev-2/final) 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, Rev. 2, 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, Rev. 2 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, Rev. 2 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, Rev. 2.
    (iv) The Office of the DOT CIO will evaluate offeror requests to 
vary from NIST SP 800-171, Rev. 2 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, Rev. 2 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 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 the 
Contractor requests 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 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 whether the incident affects 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.

[[Page 61204]]

    (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 products 
and commercial services, 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, Rev. 2 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:

DOT Protection of Information About Individuals, PII, and Privacy Risk 
Management Requirements (NOV 2022)

    (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

[[Page 61205]]

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, provisions relating to compliance with data privacy 
standards for the Protection of Data about Individuals, 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:

Cloud Computing Services (NOV 2022)

    (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, Revision 5, Security and Privacy 
Controls for Information Systems and Organizations, 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 Orders containing 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;
    (iii) Authenticated and unauthenticated database application 
vulnerability scans; and

[[Page 61206]]

    (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 subcontractor(s) that 
discovers and isolates 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 paragraphs 
(b)(5) and (d) 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 (b)(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 products or commercial services.
(End of clause)


1252.239-77  Data Jurisdiction.

    As prescribed in 1239.7204(b), insert a clause substantially as 
follows:

Data Jurisdiction (NOV 2022)

    The Contractor shall identify all data centers in which 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 (NOV 2022)

    (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 (NOV 2022)

    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 (NOV 2022)

    (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 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 (NOV 2022)

    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,

[[Page 61207]]

Personal Identity Verification (PIV) of Federal Employees and 
Contractors, 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) (NOV 2022)

    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 (NOV 2022)

    (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 (NOV 2022)

    (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 must be encrypted using FIPS 140-2 [Contracting Officer 
insert required encryption mode, based on FIPS 199 risk category] 
when transported outside of controlled areas; 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. 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 (NOV 2022)

    (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 https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/memoranda/2005/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 
(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 (NOV 2022)

    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 (NOV 2022)

    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 (NOV 2022)

    The Contractor shall provide a list of its personnel, identified 
by name and role, who are assigned system administration, 
monitoring, and/or security responsibilities and who 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 (NOV 2022)

    (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, or 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.

[[Page 61208]]

    (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 (NOV 2022)

    (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 
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 (NOV 2022)

    (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 44 U.S.C. chapters 21, 29, 
31, and 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

[[Page 61209]]

records shall be managed and scheduled for disposition only as 
permitted by the Federal Records Act, other relevant statutes or 
regulations, 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 part 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 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). The Contractor 
must make any assertion of copyright in the data or other 
deliverables under this contract and substantiate such assertions. 
The 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 (NOV 
2022)

    (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/.
    (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 (NOV 2022)

    (a) All Information and Communication Technology (ICT) 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.section508.gov/.
    (b) 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.
    (c) The Section 508 accessibility standards applicable to this 
contract are: ___ [Contracting Officer inserts the applicable 
Section 508 accessibility standards].
    (d) 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.
    (e) 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

[[Page 61210]]

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.
(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 (NOV 2022)

    (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 (NOV 2022)

    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 (NOV 2022)

    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 (NOV 2022)

    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 through 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. Form DOT F 4220.4 is authorized for local 
reproduction and a copy may be obtained at https://www.transportation.gov/assistant-secretary-administration/procurement/tar-part-1253-forms.
    (b) Form DOT F 4220.45, Contractor's Assignment of Refunds, 
Rebates, Credits, and Other Amounts. Form DOT F 4220.45 is authorized 
for local reproduction and a copy may be obtained at https://www.transportation.gov/assistant-secretary-administration/procurement/tar-part-1253-forms.
    (c) Form DOT F 4220.46, Cumulative Claim and Reconciliation 
Statement. Form DOT F 4220.46 is authorized for local reproduction and 
a copy may be obtained at https://www.transportation.gov/assistant-secretary-administration/procurement/tar-part-1253-forms.
    (d) Department of Defense DD Form 882, Report of Inventions and 
Subcontracts. DD Form 882 can be found at https://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. DD Form 882 can be found at https://www.esd.whs.mil/Directives/forms/.

Subpart 1253.3--Forms Used in Acquisitions


1253.300-70  DOT agency forms.

[[Page 61211]]

    This subpart identifies, in numerical sequence, agency forms that 
are specified by the TAR for use in acquisitions. See table 1 to 
1253.300-70. 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 1 to 1253.300-70--Forms Used in DOT Acquisitions
------------------------------------------------------------------------
                        Form name                            Form No.
------------------------------------------------------------------------
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
------------------------------------------------------------------------

PARTS 1254-1299 [RESERVED]

[FR Doc. 2022-19907 Filed 10-6-22; 8:45 am]
BILLING CODE 4910-9X-P


