
[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)]
[Rules and Regulations]
[Pages 33016-33024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14828]


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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1501, 1504, 1509, 1515, 1516, 1517, 1519, 1535, 1552 
and 1553

[EPA-HQ-OARM-2017-0126; FRL 9960-62-OARM]


Administrative Amendments to Environmental Protection Agency 
Acquisition Regulation

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is issuing a final 
rule to amend the Environmental Protection Agency Acquisition 
Regulation (EPAAR) to make administrative updates, corrections and 
minor edits. EPA does not anticipate any adverse comments.

DATES: This rule is effective on September 18, 2017 without further 
notice, unless EPA receives adverse comment by August 18, 2017. If EPA 
receives adverse comment, we will publish a timely withdrawal in the 
Federal Register informing the public that the rule will not take 
effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OARM-2017-0126, at https://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e. on the web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Julianne Odend'hal, Office of 
Acquisition Management (Mail Code 3802R), U.S. Environmental Protection 
Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460; telephone

[[Page 33017]]

number: 202-564-5218; email address: Odend'hal.Julianne@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Why is EPA using a direct final rule?

    EPA is publishing this rule without a prior proposed rule because 
we view this as a noncontroversial action and anticipate no adverse 
comment. The EPAAR is being amended to make administrative changes 
including updates, corrections and minor edits. None of these changes 
are substantive or of a nature to cause any significant expense for EPA 
or its contractors. If EPA receives adverse comment, we will publish a 
timely withdrawal in the Federal Register informing the public that the 
rule will not take effect. Any parties interested in commenting must do 
so at this time.

II. Does this action apply to me?

    This action applies to contractors who have or wish to have 
contracts with the EPA.

III. What should I consider as I prepare my comments for EPA?

    A. Submitting CBI. Do not submit this information to EPA through 
https://www.regulations.gov or email. Clearly mark the part or all of 
the information that you claim to be CBI. For CBI information in a disk 
or CD ROM that you mail to EPA, mark the outside of the disk or CD ROM 
as CBI and then identify electronically within the disk or CD ROM the 
specific information that is claimed as CBI). In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    B. Tips for Preparing Your Comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree; suggest alternatives 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

IV. Background

    EPAAR Parts 1501, 1504, 1509, 1515, 1516, 1517, 1519, 1535, 1552 
and 1553 are being amended to make administrative changes including 
updates, corrections and minor edits.

V. Final Rule

    This direct final rule amends the EPAAR to make the following 
changes: (1) EPAAR 1501.603-1 is amended to remove outdated policy 
reference ``chapter 8 of the EPA ``Contracts Management Manual'' '' and 
to add in its place ``the EPA Acquisition Guide (EPAAG) subsection 
1.6.4''; (2) EPAAR 1504.804-5 is amended to remove outdated policy 
reference ``Unit 42 of the EPA Acquisition Handbook'' and to add in its 
place ``the EPA Acquisition Guide (EPAAG) subsection 4.8.1''; (3) EPAAR 
1509.507-1(a)(1) is amended to clarify the FAR reference by removing 
``(FAR) 48 CFR'' and adding in its place ``FAR''; (4) EPAAR 1515.404-
473(a) is amended to remove ``except those identified in EPAAR (48 CFR) 
1516.404-273(b)'' and to add in its place ``except those otherwise 
identified in the EPAAR'' because the EPAAR reference no longer exists; 
(5) EPAAR 1516.301-70 is amended to clarify the FAR reference by 
removing ``48 CFR'' and adding in its place ``in FAR''; (6) EPAAR 
1516.406(b) is amended to correct the EPAAR reference by removing 
``clause'' and adding in its place ``provision''; (7) EPAAR 1517.208 is 
amended to include a prescription for 48 CFR 1552.217-70 by adding a 
new paragraph (a) stating that the Contracting Officer shall insert the 
provision at 1552.217-70, Evaluation of Contract Options, in 
solicitations containing options, and re-designating existing 
paragraphs (a) through (g) as paragraphs (b) through (h); (8) EPAAR 
part 1519 is amended to correct an office title by removing ``Office of 
Small Business Programs (OSBP)'' and ``OSBP'', and adding in their 
place ``Office of Small and Disadvantaged Business Utilization 
(OSDBU)'' and ``OSDBU'' respectively wherever they appear in part 1519; 
(9) EPAAR 1535.007(a), (b) and (c) are amended to clarify the EPAAR 
references by adding ``the provision at''; (10) EPAAR 1552.209-71 
Alternate I introductory text is amended to add ``(SEP 1998)''; (11) 
EPAAR 1552.209-73 Alternate I introductory text is amended to add 
``(JAN 2015)''; (12) EPAAR 1552.211-74 Alternate I and II introductory 
texts are amended to add ``(APR 1984)'' and Alternate III and IV 
introductory texts are amended to add ``(DEC 2014)''; (13) EPAAR 
1552.216-72 Alternate I introductory text is amended to add ``(JUL 
2014)''; (14) EPAAR 1552.216-75 introductory text and the ending text 
are amended to correct the EPAAR references by removing ``clause'' and 
adding in their place ``provision''; (15) EPAAR 1552.217-76 clause 
title is amended to add ``(MAR 1984)''; (16) EPAAR 1552.217-77 
introductory text is amended by removing ``1517.208(g)'' and adding in 
its place ``1517.208(h)''; (17) EPAAR 1552.219-70(b) and (d) are 
amended to correct an office title by removing ``Office of Small 
Business Programs (OSBP)'' and ``OSBP'', and adding in their place 
``Office of Small and Disadvantaged Business Utilization (OSDBU)'' and 
``OSDBU'' respectively; (18) EPAAR 1552.219-71(f)(2)(v) and (k) are 
amended to correct an office title by removing ``Office of Small 
Business Programs (OSBP)'' and adding in its place ``Office of Small 
and Disadvantaged Business Utilization (OSDBU)'', and 1552.219-71(k) is 
amended to update the address to Office of Small and Disadvantaged 
Business Utilization, U.S. Environmental Protection Agency, William 
Jefferson Clinton North Building, Mail Code 1230A, 1200 Pennsylvania 
Avenue NW., Washington, DC 20450, Telephone: (202) 566-2075, Fax: (202) 
566-0266; (19) EPAAR 1552.223-71 is amended by removing the following 
Web site addresses: ``http://www.epa.gov/oppt/greenmeetings/'', 
``(http://www.epa.gov/greenpower/join/purchase.htm)'', ``http://
www.epa.gov/epawaste/conserve/smm/wastewise/'', ``http://www.epa.gov/
foodrecoverychallenge/'', and ``http://www.epa.gov/dfe/'' and adding 
the following addresses to replace them respectively: ``https://www.epa.gov/p2/green-meetings'', ``https://www.epa.gov/greenpower/green-power-partnership-basic-program-information'', ``https://www.epa.gov/smm/wastewise'', ``https://www.epa.gov/sustainable-management-food/food-recovery-challenge-frc'', and ``https://www.epa.gov/saferchoice/history-safer-choice-and-design-environment''; 
(20) EPAAR 1552.227-76 Alternate I introductory text is amended to add 
``(JAN 2015)''; (21) EPAAR 1552.242–70(a) is amended to update

[[Page 33018]]

the address to U.S. Environmental Protection Agency, Manager, Financial 
Analysis and Oversight Service Center, Mail Code 3802R, Policy, 
Training, and Oversight Division, 1200 Pennsylvania Avenue NW., 
Washington, DC 20460; and (22) EPAAR 1553.213 is amended to remove 
``1553.213 Small purchases and other simplified purchase procedures.'' 
and to add in its place ``1553.213 Simplified acquisition procedures.'' 
to conform to the FAR.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is exempt from review by the Office of Management and 
Budget (OMB) because it is limited to matters of agency organization.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the PRA because it does not contain any information collection 
activities.

C. Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. This action amends the EPAAR to make 
administrative changes including updates, corrections, and minor edits. 
We have therefore concluded that this action will have no net 
regulatory burden for all directly regulated small entities.

D. Unfunded Mandates Reform Act

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action imposes 
no enforceable duty on any state, local or tribal governments or the 
private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). Thus, Executive 
Order 13175 does not apply to this action. In the spirit of Executive 
Order 13175, and consistent with EPA policy to promote communication 
between EPA and Tribal governments, EPA specifically solicits 
additional comment on this rule from Tribal officials.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) 
as applying only to those regulatory actions that concern health or 
safety risks, such that the analysis required under section 5-501 of 
the Executive Order has the potential to influence the regulation. This 
action is not subject to Executive Order 13045 because it does not 
establish an environmental standard intended to mitigate health or 
safety risks.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355 
(May 22, 2001)), because it is not a significant regulatory action 
under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, (February 16, 1994)) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States. EPA has determined that this final 
rule will not have disproportionately high and adverse human health or 
environmental effects on minority or low-income populations because it 
does not affect the level of protection provided to human health or the 
environment.

K. Congressional Review

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. Section 804 exempts from section 801 the following types 
of rules (1) rules of particular applicability; (2) rules relating to 
agency management or personnel; and (3) rules of agency organization, 
procedure, or practice that do not substantially affect the rights or 
obligations of non-agency parties. 5 U.S.C. 804(3). EPA is not required 
to submit a rule report regarding this action under section 801 because 
this is a rule of agency organization, procedure, or practice that does 
not substantially affect the rights or obligations of non-agency 
parties.

List of Subjects in 48 CFR Parts 1501, 1504, 1509, 1515, 1516, 
1517, 1519, 1535, 1552 and 1553

    Government procurement.

    Dated: May 22, 2017.
Kimberly Y. Patrick,
Director, Office of Acquisition Management.

    For the reasons stated in the preamble, 48 CFR parts 1501, 1504, 
1509, 1515, 1516, 1517, 1519, 1535, 1552 and 1553 are amended as set 
forth below:

PART 1501--GENERAL

0
1. The authority citation for part 1501 continues to read as follows:

     Authority:  5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as 
amended, 40 U.S.C. 486(c); and 41 U.S.C. 418b.


0
2. Revise section 1501.603-1 to read as follows:


1501.603-1  General.

    EPA Contracting Officers shall be selected and appointed and their 
appointments terminated in accordance with the Contracting Officer 
warrant program specified in EPA Acquisition Guide (EPAAG) subsection 
1.6.4.

[[Page 33019]]

PART 1504--ADMINISTRATIVE MATTERS

0
3. The authority citation for part 1504 continues to read as follows:

    Authority:  5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 
40 U.S.C. 486(c); 41 U.S.C. 418b.


0
4. Revise section 1504.804-5 to read as follows:


1504.804-5  Detailed procedures for closing out contract files.

    In addition to those procedures set forth in FAR 4.804-5, the 
contracting office shall, before final payment is made under a cost 
reimbursement type contract, verify the allowability, allocability, and 
reasonableness of costs claimed. Verification of total costs incurred 
should be obtained from the Office of Audit through the Financial 
Analysis and Oversight Service Center in the form of a final audit 
report. Similar verification of actual costs shall be made for other 
contracts when cost incentives, price redeterminations, or cost-
reimbursement elements are involved. Termination settlement proposals 
shall be submitted to the Financial Analysis and Oversight Service 
Center for review by the Office of Audit as prescribed by FAR 49.107. 
All such audits will be coordinated through the cost advisory group in 
the contracting office. Exceptions to these procedures are the quick 
close-out procedures as described in FAR 42.708 and EPA Acquisition 
Guide (EPAAG) subsection 4.8.1.

PART 1509--CONTRACTOR QUALIFICATIONS

0
5. The authority citation for part 1509 continues to read as follows:

     Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 
486(c).


0
6. Amend section 1509.507-1 by revising paragraph (a)(1) to read as 
follows:


1509.507-1  Solicitation provisions.

    (a) * * *
    (1) Include the information prescribed in FAR 9.507-1;
* * * * *

PART 1515--CONTRACTING BY NEGOTIATION

0
7. The authority citation for part 1515 continues to read as follows:

    Authority:  5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 
40 U.S.C. 486(c); and 41 U.S.C. 418b.


0
8. Amend section 1515.404-473 by revising paragraph (a) to read as 
follows:


1515.404-473  Limitations.

    (a) In addition to the limitations established by statute (see FAR 
15.404-4(b)(4)(i)), no administrative ceilings on profits or fees shall 
be established, except those otherwise identified in the EPAAR.
* * * * *

PART 1516--TYPES OF CONTRACTS

0
9. The authority citation for part 1516 continues to read as follows:

    Authority:  5 U.S.C. 301 and 41 U.S.C. 418b.


0
10. Revise section 1516.301-70 to read as follows:


1516.301-70  Payment of fee.

    The policy of EPA for cost-reimbursement, term form contracts is to 
make provisional payment of fee (i.e. the fixed fee on cost-plus-fixed-
fee type contracts or the base fee on cost-plus-award-fee type 
contracts) on a percentage of work completed basis, when such a method 
will not prove detrimental to proper contract performance. Percentage 
of work completed is the ratio of the direct labor hours performed in 
relation to the direct labor hours set forth in the contract in clause 
48 CFR 1552.211-73, Level of Effort--Cost Reimbursement Contract. 
Provisional payment of fee will remain subject to withholding 
provisions, such as in FAR 52.216-8, Fixed Fee.

0
11. Amend section 1516.406 by revising paragraph (b) to read as 
follows:


1516.406  Contract clauses.

* * * * *
    (b) The Contracting Officer shall insert the provision at 48 CFR 
1552.216-75, Base Fee and Award Fee Proposal, in all solicitations 
which contemplate the award of cost-plus-award-fee contracts. The 
Contracting Officer shall insert the appropriate percentages.
* * * * *

PART 1517--SPECIAL CONTRACTING METHODS

0
12. The authority citation for part 1517 continues to read as follows:

     Authority: 5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 
40 U.S.C. 486(c); and 41 U.S.C. 418b.


0
13. Revise section 1517.208 to read as follows:


1517.208  Solicitation provisions and contract clauses.

    (a) The Contracting Officer shall insert the provision at 48 CFR 
1552.217-70, Evaluation of Contract Options, in solicitations 
containing options.
    (b) The Contracting Officer shall insert the clause at 48 CFR 
1552.217-71, Option to Extend the Term of the Contract--Cost-Type 
Contract, when applicable.
    (c) The Contracting Officer shall insert the clause at 48 CFR 
1552.217-72, Option to Extend the Term of the Contract--Cost-Plus-
Award-Fee Contract, when applicable.
    (d) The Contracting Officer shall insert the clause at 48 CFR 
1552.217-73, Option for Increased Quantity--Cost-Type Contract, when 
applicable.
    (e) The Contracting Officer shall insert the clause at 48 CFR 
1552.217-74, Option for Increased Quantity--Cost-Plus-Award-Fee 
Contract, when applicable.
    (f) The Contracting Officer shall insert the clause at 48 CFR 
1552.217-75, Option to Extend the Effective Period of the Contract--
Time and Materials or Labor Hour Contract, when applicable.
    (g) The Contracting Officer shall insert the clause at 48 CFR 
1552.217-76, Option to Extend the Effective Period of the Contract--
Indefinite Delivery/Indefinite Quantity Contract, when applicable.
    (h) The Contracting officer shall insert the clause at 48 CFR 
1552.217-77, Option to Extend the Term of the Contract--Fixed Price, 
when applicable.

0
14. Revise part 1519 to read as follows:

PART 1519--SMALL BUSINESS PROGRAMS

Subpart 1519.2--Policies
Sec.
1519.201 Policy.
1519.201-71 Director of the Office of Small and Disadvantaged 
Business Utilization.
1519.201-72 Small business specialists.
1519.202-5 [Reserved]
1519.203 Mentor-prot[eacute]g[eacute].
1519.204 [Reserved]
Subpart 1519.5--Set-Asides for Small Business
1519.501 Review of acquisitions.
1519.503 Class set-aside for construction.
Subpart 1519.6--[Reserved]
Subpart 1519.7--The Small Business Subcontracting Program
1519.705-2 Determining the need for a subcontract plan.
1519.705-4 Reviewing the subcontracting plan.
1519.705-70 Synopsis of contracts containing Pub. L. 95-507 
subcontracting plans and goals.

    Authority: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 
486(c).

[[Page 33020]]

Subpart 1519.2--Policies


1519.201   Policy.

    Each program's Assistant or Associate Administrator shall be 
responsible for developing its socioeconomic goals on a fiscal year 
basis. The goals shall be developed in collaboration with the 
supporting Chiefs of Contracting Offices (CCOs) or Regional Acquisition 
Managers (RAMs), the assigned Small Business Specialist (SBS), and the 
Office of Small and Disadvantaged Business Utilization (OSDBU). The 
goals will be based on advance procurement plans and past performance. 
The goals shall be submitted to the Director of OSDBU, at least thirty 
(30) days prior to the start of the fiscal year.


1519.201-71   Director of the Office of Small and Disadvantaged 
Business Utilization.

    The Director of the Office of Small and Disadvantaged Business 
Utilization (OSDBU) provides guidance and advice, as appropriate, to 
Agency program and contracts officials on small business programs. The 
OSDBU Director is the central point of contact for inquiries concerning 
the small business programs from industry, the Small Business 
Administration (SBA), and the Congress; and shall advise the 
Administrator and staff of such inquiries as required. The OSDBU 
Director shall represent the Agency in the negotiations with the other 
Government agencies on small business programs matters.


1519.201-72   Small business specialists.

    (a) Small Business Specialists (SBSs) shall be appointed in 
writing. Regional SBSs will normally be appointed from members of 
staffs of the appointing authority. The appointing authorities for 
regional SBSs are the RAMs. The SBSs for EPA headquarters, Research 
Triangle Park (RTP), and Cincinnati shall be appointed by the OSDBU 
Director. The SBS is administratively responsible directly to the 
appointing authority and, on matters relating to small business 
programs activities, receives technical guidance from the OSDBU 
Director.
    (b) A copy of each appointment and termination of all SBSs shall be 
forwarded to the OSDBU Director. In addition to performing the duties 
outlined in paragraph (c) of this section that are normally performed 
in the activity to which assigned, the SBS shall perform such 
additional functions as may be prescribed from time to time in 
furtherance of overall small business programs goals. The SBS may be 
appointed on either a full- or part-time basis; however, when appointed 
on a part-time basis, small business duties shall take precedence over 
collateral responsibilities.
    (c) The SBS appointed pursuant to paragraph (a) of this section 
shall perform the following duties as appropriate:
    (1) Maintain a program designed to locate capable small business 
sources for current and future acquisitions;
    (2) Coordinate inquiries and requests for advice from small 
business concerns on acquisition matters;
    (3) Review all proposed solicitations in excess of the simplified 
acquisition threshold, assure that small business concerns will be 
afforded an equitable opportunity to compete, and, as appropriate, 
initiate recommendations for small business set-asides, or offers of 
requirements to the Small Business Administration (SBA) for the 8(a) 
program, and complete EPA Form 1900-37, ``Record of Procurement Request 
Review,'' as appropriate;
    (4) Take action to assure the availability of adequate 
specifications and drawings, when necessary, to obtain small business 
participation in an acquisition. When small business concerns cannot be 
given an opportunity on a current acquisition, initiate action, in 
writing, with appropriate technical and contracting personnel to ensure 
that necessary specifications and/or drawings for future acquisitions 
are available;
    (5) Review proposed contracts for possible breakout of items or 
services suitable for acquisition from small business concerns;
    (6) Participate in the evaluation of a prime contractor's small 
business subcontracting programs;
    (7) Assure that adequate records are maintained, and accurate 
reports prepared, concerning small business participation in 
acquisition programs;
    (8) Make available to SBA copies of solicitations when so 
requested; and
    (9) Act as liaison with the appropriate SBA office or 
representative in connection with matters concerning the small business 
programs including set-asides.


1519.202-5  [Reserved]


1519.203   Mentor-prot[eacute]g[eacute].

    (a) The contracting officer shall insert the clause at 48 CFR 
1552.219-70, Mentor-Prot[eacute]g[eacute] Program, in all contracts 
under which the contractor has been approved to participate in the EPA 
Mentor-Prot[eacute]g[eacute] Program.
    (b) The contracting officer shall insert the provision at 48 CFR 
1552.219-71, Procedures for Participation in the EPA Mentor-
Prot[eacute]g[eacute] Program, in all solicitations valued at $500,000 
or more which will be cost-plus-award-fee or cost-plus fixed-fee 
contracts.


1519.204  [Reserved]

Subpart 1519.5--Set-Asides for Small Business


1519.501   Review of acquisitions.

    (a) If no Small Business Administration (SBA) representative is 
available, the Small Business Specialist (SBS) shall initiate 
recommendations to the contracting officer for small business set-
asides with respect to individual acquisitions or classes of 
acquisitions or portions thereof.
    (b) When the SBS has recommended that all, or a portion, of an 
individual acquisition or class of acquisitions be set aside for small 
business, the contracting officer shall:
    (1) Promptly concur in the recommendation; or
    (2) Promptly disapprove the recommendation, stating in writing the 
reasons for disapproval. If the contracting officer disapproves the 
recommendation of the SBS, the SBS may appeal to the appropriate 
appointing authority, whose decision shall be final.


1519.503   Class set-aside for construction.

    (a) Each proposed acquisition for construction estimated to cost 
between $10,000 and $1,000,000 shall be set-aside for exclusive small 
business participation. Such set-asides shall be considered to be 
unilateral small business set-asides, and shall be withdrawn in 
accordance with the procedure of FAR 19.506 only if found not to serve 
the best interest of the Government.
    (b) Small business set-aside preferences for construction 
acquisitions in excess of $1,000,000 shall be considered on a case-by-
case basis.

Subpart 1519.6--[Reserved]

Subpart 1519.7--The Small Business Subcontracting Program


1519.705-2   Determining the need for a subcontract plan.

    One copy of the determination required by FAR 19.705-2(c) shall be 
placed in the contract file and one copy provided to the Director of 
the Office of Small and Disadvantaged Business Utilization.


1519.705-4  Reviewing the subcontracting plan.

    In determining the acceptability of a proposed subcontracting plan, 
the

[[Page 33021]]

contracting officer shall obtain advice and recommendations from the 
Office of Small and Disadvantaged Business Utilization, which shall in 
turn coordinate review by the Small Business Administration Procurement 
Center Representative (if any).


1519.705-70  Synopsis of contracts containing Pub. L. 95-507 
subcontracting plans and goals.

    The synopsis of contract award, where applicable, shall include a 
statement identifying the contract as one containing Public Law 95-507 
subcontracting plans and goals.

PART 1535--RESEARCH AND DEVELOPMENT CONTRACTING

0
15. The authority citation for part 1535 continues to read as follows:

    Authority:  Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 
486(c).


0
16. Revise section 1535.007 to read as follows:


1535.007  Solicitations.

    (a) Contracting officers shall insert the provision at 48 CFR 
1552.235-73, Access to Federal Insecticide, Fungicide, and Rodenticide 
Act Confidential Business Information, in all solicitations when the 
contracting officer has determined that EPA may furnish the contractor 
with confidential business information which EPA had obtained from 
third parties under the Federal Insecticide, Fungicide, and Rodenticide 
Act (7 U.S.C. 136 et seq.).
    (b) Contracting officers shall insert the provision at 48 CFR 
1552.235-75, Access to Toxic Substances Control Act Confidential 
Business Information, in all solicitations when the contracting officer 
has determined that EPA may furnish the contractor with confidential 
business information which EPA had obtained from third parties under 
the Toxic Substances Control Act (15 U.S.C. 2601 et seq.).
    (c) Contracting officers shall insert the provision at 48 CFR 
1552.235-81, Institutional Oversight of Life Sciences Dual Use Research 
of Concern-Representation, when notified in the Advance Procurement 
Plan (APP) or by an EPA funding/requesting office, in accordance with 
the Institutional Oversight of Life Sciences Dual Use Research of 
Concern (iDURC) EPA Order 1000.19, Policy and Procedures for Managing 
Dual Use Research of Concern, in solicitations that will result in a 
contract under which EPA funding will be used by the recipient to 
conduct or sponsor ``life sciences research''.

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
17. The authority citation for part 1552 continues to read as follows:

     Authority: 5 U.S.C. 301 and 41 U.S.C. 418b.

0
18. Amend section 1552.209-71 by revising the introductory text in 
Alternate I to read as follows:


1552.209-71  Organizational conflicts of interest.

* * * * *
    Alternate I (SEP 1998). Contracts for other than Superfund work 
shall include Alternate I in this clause in lieu of paragraph (e).
* * * * *


0
19. Amend section 1552.209-73 by revising the introductory text in 
Alternate I to read as follows:


1552.209-73  Notification of conflicts of interest regarding personnel.

* * * * *
    Alternate I (JAN 2015). Contracts for other than Superfund work 
shall include Alternate I in this clause in lieu of paragraph (d).
* * * * *

0
20. Amend section 1552.211-74 by revising the introductory text in 
Alternates I through IV to read as follows:


1552.211-74  Work assignments.

* * * * *
    Alternate I (APR 1984). As prescribed in 1511.011-74(b)(1), modify 
the existing clause by adding the following paragraph (f) to the basic 
clause:
* * * * *
    Alternate II (APR 1984). As prescribed in 1511.011-74(b)(1), modify 
the existing clause by adding the following paragraph (f) to the basic 
clause:
* * * * *
    Alternate III (DEC 2014). As prescribed in 1511.011-74(b)(2), 
modify the existing clause by adding the following paragraph (f) to the 
basic clause:
* * * * *
    Alternate IV (DEC 2014). As prescribed in 1511.011-74(b)(2), modify 
the existing clause by adding the following paragraph (f) to the basic 
clause:
* * * * *

0
21. Amend section 1552.216-72 by revising the introductory text in 
Alternate I to read as follows:


1552.216-72  Ordering--by designated ordering officers.

* * * * *
    Alternate I (JUL 2014). As prescribed in 1516.505(a), insert the 
subject clause, or a clause substantially similar to the subject 
clause, in indefinite delivery/indefinite quantity contracts when 
formal input from the Contractor will not be obtained prior to order 
issuance.
* * * * *


1552.216-75  [Amended]

0
22. Amend section 1552.216-75 by:
0
a. Removing, in the introductory text, the text ``clause'' and adding 
the text ``provision'' in its place; and
0
b. Removing the words ``(End of clause)'' and adding the words ``(End 
of provision)'' in its place.


1552.217-76  [Amended]

0
23. Amend section 1552.217-76 by adding the clause date ``(MAR 1984)'' 
after the clause title.


1552.217-77  [Amended]

0
24. Amend the introductory text of section 1552.217-77 by removing the 
text ``1517.208(g)'' and adding the text ``1517.208(h)'' in its place.

0
25. Revise section 1552.219-70 to read as follows:


1552.219-70   Mentor-Prot[eacute]g[eacute] Program.

    As prescribed in 1519.203(a), insert the following clause:

Mentor-Prot[eacute]g[eacute] Program (SEP 2017)

    (a) The Contractor has been approved to participate in the EPA 
Mentor-Prot[eacute]g[eacute] Program. The purpose of the Program is 
to increase the participation of small disadvantaged businesses 
(SDBs) as subcontractors, suppliers, and ultimately as prime 
contractors; establish a mutually beneficial relationship with SDBs 
and EPA's large business prime contractors (although small 
businesses may participate as Mentors); develop the technical and 
corporate administrative expertise of SDBs which will ultimately 
lead to greater success in competition for contract opportunities; 
promote the economic stability of SDBs; and aid in the achievement 
of goals for the use of SDBs in subcontracting activities under EPA 
contracts.
    (b) The Contractor shall submit an executed Mentor-
Prot[eacute]g[eacute] agreement to the Contracting Officer, with a 
copy to the Office of Small and Disadvantaged Business Utilization 
(OSDBU) or the Small Business Specialist, within thirty (30) 
calendar days after the effective date of the contract. The 
Contracting Officer will notify the Contractor within thirty (30) 
calendar days from its submission if the agreement is not accepted.
    (c) The Contractor as a Mentor under the Program agrees to 
fulfill the terms of its agreement(s) with the Prot[eacute]g[eacute] 
firm(s).
    (d) If the Contractor or Prot[eacute]g[eacute] firm is suspended 
or debarred while performing under an approved Mentor-
Prot[eacute]g[eacute] agreement, the Contractor shall promptly give 
notice of the suspension or debarment to the OSDBU and the 
Contracting Officer.

[[Page 33022]]

    (e) Costs incurred by the Contractor in fulfilling their 
agreement(s) with the Prot[eacute]g[eacute] firm(s) are not 
reimbursable on a direct basis under this contract.
    (f) In an attachment to Individual Subcontract Reports (ISR), 
the Contractor shall report on the progress made under their Mentor-
Prot[eacute]g[eacute] agreement(s), providing:
    (1) The number of agreements in effect; and
    (2) The progress in achieving the developmental assistance 
objectives under each agreement, including whether the objectives of 
the agreement have been met, problem areas encountered, and any 
other appropriate information.


(End of clause)

0
26. Revise section 1552.219-71 to read as follows:


1552.219-71   Procedures for Participation in the EPA Mentor-
Prot[eacute]g[eacute] Program.

    As prescribed in 1519.203(b), insert the following provision:

Procedures for Participation in the EPA Mentor-Prot[eacute]g[eacute] 
Program (SEP 2017)

    (a) This provision sets forth the procedures for participation 
in the EPA Mentor-Prot[eacute]g[eacute] Program (hereafter referred 
to as the Program). The purpose of the Program is to increase the 
participation of concerns owned and/or controlled by socially and 
economically disadvantaged individuals as subcontractors, suppliers, 
and ultimately as prime contractors; to establish a mutually 
beneficial relationship between these concerns and EPA's large 
business prime contractors (although small businesses may 
participate as Mentors); to develop the technical and corporate 
administrative expertise of these concerns, which will ultimately 
lead to greater success in competition for contract opportunities; 
to promote the economic stability of these concerns; and to aid in 
the achievement of goals for the use of these concerns in 
subcontracting activities under EPA contracts. If the successful 
offeror is accepted into the Program they shall serve as a Mentor to 
a Prot[eacute]g[eacute] firm(s), providing developmental assistance 
in accordance with an agreement with the Prot[eacute]g[eacute] 
firm(s).
    (b) To participate as a Mentor, the offeror must receive 
approval in accordance with paragraph (h) of this section.
    (c) A Prot[eacute]g[eacute] must be a concern owned and/or 
controlled by socially and economically disadvantaged individuals 
within the meaning of section 8(a)(5) and (6) of the Small Business 
Act (15 U.S.C. 637(a)(5) and (6)), including historically black 
colleges and universities. Further, in accordance with Public Law 
102-389 (the 1993 Appropriation Act), for EPA's contracting 
purposes, economically and socially disadvantaged individuals shall 
be deemed to include women.
    (d) Where there may be a concern regarding the 
Prot[eacute]g[eacute] firm's eligibility to participate in the 
program, the prot[eacute]g[eacute]'s eligibility will be determined 
by the contracting officer after the SBA has completed any formal 
determinations.
    (e) The offeror shall submit an application in accordance with 
paragraph (k) of this section as part of its proposal which shall 
include as a minimum the following information.
    (1) A statement and supporting documentation that the offeror is 
currently performing under at least one active Federal contract with 
an approved subcontracting plan and is eligible for the award of 
Federal contracts;
    (2) A summary of the offeror's historical and recent activities 
and accomplishments under any disadvantaged subcontracting programs. 
The offeror is encouraged to include any initiatives or outreach 
information believed pertinent to approval as a Mentor firm;
    (3) The total dollar amount (including the value of all option 
periods or quantities) of EPA contracts and subcontracts received by 
the offeror during its two preceding fiscal years. (Show prime 
contracts and subcontracts separately per year);
    (4) The total dollar amount and percentage of subcontract awards 
made to all concerns owned and/or controlled by disadvantaged 
individuals under EPA contracts during its two preceding fiscal 
years.
    (5) The number and total dollar amount of subcontract awards 
made to the identified Prot[eacute]g[eacute] firm(s) during the two 
preceding fiscal years (if any).
    (f) In addition to the information required by paragraph (e) of 
this section, the offeror shall submit as a part of the application 
the following information for each proposed Mentor-
Prot[eacute]g[eacute] relationship:
    (1) Information on the offeror's ability to provide 
developmental assistance to the identified Prot[eacute]g[eacute] 
firm and how the assistance will potentially increase contracting 
and subcontracting opportunities for the Prot[eacute]g[eacute] firm.
    (2) A letter of intent indicating that both the Mentor firm and 
the Prot[eacute]g[eacute] firm intend to enter into a contractual 
relationship under which the Prot[eacute]g[eacute] will perform as a 
subcontractor under the contract resulting from this solicitation 
and that the firms will negotiate a Mentor-Prot[eacute]g[eacute] 
agreement. The letter of intent must be signed by both parties and 
contain the following information:
    (i) The name, address and phone number of both parties;
    (ii) The Prot[eacute]g[eacute] firm's business classification, 
based upon the NAICS code(s) which represents the contemplated 
supplies or services to be provided by the Prot[eacute]g[eacute] 
firm to the Mentor firm;
    (iii) A statement that the Prot[eacute]g[eacute] firm meets the 
eligibility criteria;
    (iv) A preliminary assessment of the developmental needs of the 
Prot[eacute]g[eacute] firm and the proposed developmental assistance 
the Mentor firm envisions providing the Prot[eacute]g[eacute]. The 
offeror shall address those needs and how their assistance will 
enhance the Prot[eacute]g[eacute]. The offeror shall develop a 
schedule to assess the needs of the Prot[eacute]g[eacute] and 
establish criteria to evaluate the success in the Program;
    (v) A statement that if the offeror or Prot[eacute]g[eacute] 
firm is suspended or debarred while performing under an approved 
Mentor-Prot[eacute]g[eacute] agreement the offeror shall promptly 
give notice of the suspension or debarment to the EPA Office of 
Small and Disadvantaged Business Utilization (OSDBU) and the 
Contracting Officer. The statement shall require the 
Prot[eacute]g[eacute] firm to notify the Contractor if it is 
suspended or debarred.
    (g) The application will be evaluated on the extent to which the 
offeror's proposal addresses the items listed in paragraphs (e) and 
(f) of this section. To the maximum extent possible, the application 
should be limited to not more than 10 single pages, double spaced. 
The offeror may identify more than one Prot[eacute]g[eacute] in its 
application.
    (h) If the offeror is determined to be in the competitive range, 
or is awarded a contract without discussions, the offeror will be 
advised by the Contracting Officer whether their application is 
approved or rejected. The Contracting Officer, if necessary, may 
request additional information in connection with the offeror's 
submission of its revised or best and final offer. If the successful 
offeror has submitted an approved application, they shall comply 
with the clause titled ``Mentor-Prot[eacute]g[eacute] Program.''
    (i) Subcontracts of $1,000,000 or less awarded to firms approved 
as Prot[eacute]g[eacute]s under the Program are exempt from the 
requirements for competition set forth in FAR 44.202-2(a)(5) and 
52.244-5(b). However, price reasonableness must still be determined 
and the requirements in FAR 44.202-2(a)(8) for cost and price 
analysis continue to apply.
    (j) Costs incurred by the offeror in fulfilling their 
agreement(s) with a Prot[eacute]g[eacute] firm(s) are not 
reimbursable as a direct cost under the contract. Unless EPA is the 
responsible audit agency under FAR 42.703-1, offerors are encouraged 
to enter into an advance agreement with their responsible audit 
agency on the treatment of such costs when determining indirect cost 
rates. Where EPA is the responsible audit agency, these costs will 
be considered in determining indirect cost rates.
    (k) Submission of Application and Questions Concerning the 
Program. The application for the Program shall be submitted to the 
Contracting Officer, and to the EPA Office of Small and 
Disadvantaged Business Utilization at the following address: Office 
of Small and Disadvantaged Business Utilization, U.S. Environmental 
Protection Agency, William Jefferson Clinton North Building, Mail 
Code 1230A, 1200 Pennsylvania Avenue NW., Washington, DC 20460, 
Telephone: (202) 566-2075, Fax: (202) 566-0266.


(End of provision)

0
27. Revise section 1552.223-71 to read as follows:


1552.223-71   EPA Green Meetings and Conferences.

    As prescribed in 1523.703-1, insert the following provision, or 
language substantially the same as the provision, in solicitations for 
meetings and conference facilities.

EPA Green Meetings and Conferences (SEP 2017)

    (a) The mission of the EPA is to protect human health and the 
environment. As such, all EPA meetings and conferences will be

[[Page 33023]]

staged using as many environmentally preferable measures as 
possible. Environmentally preferable means products or services that 
have a lesser or reduced effect on the environment when compared 
with competing products or services that serve the same purpose.
    (b) Potential meeting or conference facility providers for EPA 
shall provide information about the environmentally preferable 
features and practices identified by the checklist contained in 
paragraph (c) of this section, addressing sustainability for meeting 
and conference facilities including lodging and non-lodging oriented 
facilities.
    (c) The following list of questions is provided to assist 
contracting officers in evaluating the environmental preferability 
of prospective meeting and conference facility providers. More 
information about EPA's Green Meetings initiative may be found on 
the Internet at https://www.epa.gov/p2/green-meetings.
    (1) Does your facility track energy usage and/or GHG emissions 
through ENERGY STAR Portfolio Manager (http://www.energystar.gov/benchmark) or some other calculator based on a recognized greenhouse 
gas tracking protocol? Y/N_
    (2) If available for your building type, does your facility 
currently qualify for the Energy Star certification for superior 
energy performance? Y/N _, NA_
    (3) Does your facility track water use through ENERGY STAR 
Portfolio Manager or another equivalent tracking tool and/or 
undertake best management practices to reduce water use in the 
facility (http://www.epa.gov/watersense/commercial)? Y/N_
    (4) Do you use landscaping professionals who are either 
certified by a WaterSense recognized program or actively undertake 
the WaterSense ``Water-Smart'' landscaping design practices (http://www.epa.gov/watersense/outdoor)? Y/N_, NA_
    (5) Based on the amount of renewable energy your buildings uses, 
does (or would) your facility qualify as a partner under EPA's Green 
Power Partnership program (https://www.epa.gov/greenpower/green-power-partnership-basic-program-information)? Y/N_
    (6) Do you restrict idling of motor vehicles in front of your 
facility, at the loading dock and elsewhere at your facility? Y/N_
    (7) Does your facility have a default practice of not changing 
bedding and towels unless requested by guests? Y/N_, NA_
    (8) Does your facility participate in EPA's WasteWise (https://www.epa.gov/smm/wastewise) and/or Food Recovery Challenge (https://www.epa.gov/sustainable-management-food/food-recovery-challenge-frc) 
programs? Y/N_
    (9) Do you divert from landfill at least 50% of the total solid 
waste generated at your facility? Y/N_
    (10) Will your facility be able to divert from the landfill at 
least 75% of the total solid waste expected to be generated during 
this conference/event? Y/N_
    (11) Do you divert from landfill at least 50% of the food waste 
generated at your facility (through donation, use as animal feed, 
recycling, anaerobic digestion, or composting)? Y/N_
    (12) Will your facility be able to divert from landfill at least 
75% of the food waste expected to be generated during this 
conference/event (through donation, use as animal feed, recycling, 
anaerobic digestion, or composting)? Y/N_
    (13) Does your facility provide recycling containers for 
visitors, guests and staff (paper and beverage at minimum)? Y/N_
    (14) With respect to any food and beverage prepared and/or 
served at your facility, does at least 50% of it on average meet 
sustainability attributes such as: Local, organic, fair trade, fair 
labor, antibiotic-free, etc.? Y/N_
    (15) Will your facility be able to ensure that at least 75% of 
the food and beverage expected to be served during this conference/
event meets sustainability attributes such as: Local, organic, fair 
trade, fair labor, antibiotic-free, etc.? Y/N_
    (16) Does your facility use Design for the Environment (DfE) 
cleaning products (https://www.epa.gov/saferchoice/history-safer-choice-and-design-environment), or similar products meeting other 
recognized standards for being `environmentally preferable' (http://www.epa.gov/epp/) or more sustainable? Y/N_
    (17) Is your facility prepared to document or demonstrate all of 
the claims you have made above? Y/N_
    (d) The contractor shall include any additional ``Green 
Meeting'' information in their proposal which is believed is 
pertinent to better assist us in considering environmental 
preferability in selecting our meeting venue.


(End of provision)

0
28. Amend section 1552.227-76 by revising the introductory text in 
Alternate I to read as follows:


1552.227-76  Project employee confidentiality agreement.

* * * * *
    Alternate I (JAN 2015). Contracts for other than Superfund work 
shall include Alternate I in this clause in lieu of paragraph (d).
* * * * *

0
29. Revise section 1552.242-70 to read as follows:


1552.242-70   Indirect costs.

    As prescribed in 1542.705-70, insert the following clause in all 
cost-reimbursement and non-commercial time and materials type 
contracts. If ceilings are not being established, enter ``not 
applicable'' in paragraph (c) of the clause.

Indirect Costs (SEP 2017)

    (a) In accordance with paragraph (d) of the ``Allowable Cost and 
Payment'' clause, the final indirect cost rates applicable to this 
contract shall be established between the Contractor and the 
appropriate Government representative (EPA, other Government agency, 
or auditor), as provided by FAR 42.703-1(a). EPA's procedures 
require a Contracting Officer determination of indirect cost rates 
for its contracts. In those cases where EPA is the cognizant agency 
(see FAR 42.705-1), the final rate proposal shall be submitted to 
the cognizant audit activity and to the following designated 
Contracting Officer: U.S. Environmental Protection Agency, Manager, 
Financial Analysis and Oversight Service Center, Mail Code 3802R, 
Policy, Training Oversight Division, 1200 Pennsylvania Avenue NW., 
Washington, DC 20460.
    Where EPA is not the cognizant agency, the final rate proposal 
shall be submitted to the above-cited address, to the cognizant 
audit agency, and to the designated Contracting Officer of the 
cognizant agency. Upon establishment of the final indirect cost 
rates, the Contractor shall submit an executed Certificate of 
Current Cost or Pricing Data (see FAR 15.406-2) applicable to the 
data furnished in connection with the final rates to the cognizant 
audit agency. The final rates shall be contained in a written 
understanding between the Contractor and the appropriate Government 
representative. Pursuant to the ``Allowable Cost and Payment'' 
clause, the allowable indirect costs under this contract shall be 
obtained by applying the final agreed upon rate(s) to the 
appropriate bases.
    (b) Until final annual indirect cost rates are established for 
any period, the Government shall reimburse the contractor at billing 
rates established by the appropriate Government representative in 
accordance with FAR 42.704, subject to adjustment when the final 
rates are established. The established billing rates are currently 
as follows:

 
----------------------------------------------------------------------------------------------------------------
                           Cost center                                Period           Rate            Base
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------


[[Page 33024]]

    These billing rates may be prospectively or retroactively 
revised by mutual agreement, at the request of either the Government 
or the Contractor, to prevent substantial overpayment or 
underpayment.
    (c) Notwithstanding the provisions of paragraphs (a) and (b) of 
this clause, ceilings are hereby established on indirect costs 
reimbursable under this contract. The Government shall not be 
obligated to pay the Contractor any additional amount on account of 
indirect costs in excess of the ceiling rates listed below:

 
----------------------------------------------------------------------------------------------------------------
                           Cost center                                Period           Rate            Base
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------



(End of clause)

PART 1553--FORMS

0
30. The authority citation for part 1553 continues to read as follows:

    Authority:  Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 
486(c).


0
31. Revise the heading for section 1553.213 to read as follows:


1553.213  Simplified acquisition procedures.

* * * * *
[FR Doc. 2017-14828 Filed 7-18-17; 8:45 am]
 BILLING CODE 6560-50-P


