DEPARTMENT OF THE AIR FORCE
	WASHINGTON DC

OFFICE OF THE ASSISTANT SECRETARY

MEMORANDUM FOR ALMAJCOM-FOA-DRU (CONTRACTING)

FROM:  SAF/AQCF						16 NOV 1994
	  1060 Air Force Pentagon
	  Washington DC 20330-1060

SUBJECT:  Air Force Acquisition Circular (AFAC) 92-43 

	Attached is an advance copy of AFAC 92-43.  This AFAC disseminates eight memoranda by the Director of Defense Procurement (DDP).  Seven of the memoranda provide interim changes to the Defense Federal Acquisition Regulation Supplement (DFARS).  The other is an extension to a class deviation to the Federal Acquisition Regulation (FAR) concerning the Special Tooling clause.

	This AFAC is also being distributed through the publication distribution system. 

							/s/
1 Atch						LAURENCE M. TROWEL, Col, USAF
AFAC 92-43					Assistant for FAR System
							Deputy Assistant Secretary
cc:  ALMAJCOM-FOA-DRU			  (Contracting)
(Contract Law Offices)
	IMMEDIATE ACTION

DEPARTMENT OF THE AIR FORCE	AFAC 92-43
Headquarters US Air Force
Washington DC  20330	October 20, 1994

	AIR FORCE ACQUISITION CIRCULAR

This Air Force Acquisition Circular (AFAC) is issued pursuant to the authority of FAR 1.301.  Reproduction is authorized.

POLICY CHANGES/INFORMATION

Item		Title									Pages

Section B, DFARS Changes

B1		Award to Foreign Controlled Contractors (DDP  	 			 B-1
		Memo, 29 Sep 1994; D.L. 94-013)

B2		Terrorist Countries (DDP Memo, 29 Sep 1994;		  		B-2
		D.L. 94-014)

B3		Small Purchases in Support of Contingency    				B-3
		Operations (DDP Memo, 29 Sep 1994; D.L. 94-015)

B4		Offset Administrative Costs (DDP Memo, 28 Sep 1994; 			B-4
		(D.L. 94-012)

B5		Test of Streamlined Research and Development (R&D)  			B-5
		Contracting Procedures (DDP Memo, 4 Oct 1994;
		D.L. 94-017)

B6		Predetermined Indirect Cost Rates (DDP Memo,	       			B-6
		18 Oct 1994; D.L. 94-018)

B7		Best Value - Stevedoring (DDP Memo, 29 Sep 1994;    			B-7
		D.L. 94-016)

Section D, FAR Changes

D1		Extension to Class Deviation - Special Tooling 	  			D-1
		(DDP Memo, 7 Oct 1994)


INSTRUCTIONS

GENERAL--

File this AFAC 92-43 Index (5 pages) with the AFACs.

ITEM B1--

GENERAL:  This AFAC Item revises and finalizes the interim language published as Item VII of Defense Acquisition Circular 91-5.  This final language revises the guidance in DFARS Subpart 209.1 and the solicitation provision at DFARS 252.209-7002 to implement 10 U.S.C. 2536 as amended by Section 842 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).


No. of Printed Pages: 66 
OPR:  SAF/AQCF
Distribution:  F (Same as FAR)
2	October 20, 1994	AFAC 92-43

FILING INSTRUCTIONS:  File AFAC page B-1 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:

	(i) Page B-1.1 facing DFARS page 209.1-1;

	(ii) Pages B-1.2/B-1.3 between pages 209.1-2 and 209.1-3;

	(iii) Page B-1.4 facing page 225.7-1; and

	(iv) Pages B-1.5/B-1.6 between pages 252.209-2 and 252.209-3.

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B1" in the margin at each of the following locations in the DFARS:

	(i) Page 209.1-1 at 209.101;

	(ii) Page 209.1-2 at 209.104-1(g)(ii);

	(iii) Page 209.1-3 at 209.104-70(b);

	(iv) Page 225.7-1 at 225.702; and 

	(v) Page 252.209-2 at 252.209-7002.

EFFECTIVITY INSTRUCTIONS:  This AFAC item is effective from 29 Sep 94 until the change is published in a DAC.

ITEM B2--

GENREAL:  This AFAC Item implements Section 843 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) by requiring offerors and contractors to report commercial transactions that they have conducted with the government of a terrorist country.

FILING INSTRUCTIONS:  File AFAC page B-2 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:

	(i) Pages B-2.1/B-2.2 between AFAC 92-43 page B-1.3 and DFARS page 209.1-3;

	(ii) Page B-2.3 facing page 252.209-1;

	(iii) Page B-2.4 between page 252.209-2 and AFAC 92-43 page B-1.5, facing page 252.209-2; and

	(iv) Pages B-2.5, B-2.6 & B-2.7 behind page 252.209-3.

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B2" in the margin at each of the following locations in the DFARS:

AFAC 92-43	October 20, 1994	3

	(i) Page 209.1-2 after 209.104-1(g)(ii)(5);

	(ii) Page 209.1-3 at 209.104-70(a);

	(iii) Page 252.209-1 at 252.209-7001;

	(iv) Page 252.209-2 at 252.209-7001(b); and

	(v) Page 252.209-3 and AFAC 92-43, page B-1.6 at the end of 252.209-7002.

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective from 29 Sep 94 until the change is published in a DAC.

ITEM B3--

GENERAL:  This AFAC Item fully implements the authority of the Department of Defense to use simplified procedures for acquisitions in support of a contingency operation by providing for the use of small purchase procedures up to $100,000 for any contract to be performed outside the United States in support of a contingency operation as defined in 10 U.S.C. 101(a)(13).

FILING INSTRUCTIONS:  File AFAC page B-3 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:

	(i) Page B-3.1 facing DFARS page 213.0-1;

	(ii) Page B-3.2 facing page 213.1-1;

	(iii) Page B-3.3 facing page 213.4-1; and

	(iv) Page B-3.4 facing page 213.5-2.

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B3" in the margin at each of the following locations in the DFARS:

	(i) Page 213.0-1 at 213.000;

	(ii) Page 213.1-1 at 213.101;

	(III) Page 213.4-1 at 213.404; and

	(iv) Page 213.5-2 at 213.505-3(b)(1).

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective from 29 Sep 94 until the change is published in a DAC.

Item B4--

GENERAL:  This AFAC Item amends DFARS Subpart 225.73 to change the criteria for contractor recovery of offset administrative costs under foreign military sales contracts.  The change eliminates
4	October 20, 1994	AFAC 92-43

the requirement for inclusion of specific information on offset costs in Letters of Offers and Acceptance on foreign military sales.

FILING INSTRUCTIONS:  File AFAC page B-4 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages B-4.1/B-4.2 between DFARS pages 225.73-2 and 225.73-3.

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B4" in the margin on page 225.73-2 at 225.7303-2(a).

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective from 28 Sep 94 until the change is published in a DAC.

Item B5--

GENERAL:  This AFAC Item adds a new DFARS Subpart 235.70, Research and Development Streamlined Contracting Procedures-Test, to test streamlined contracting procedures at selected Department of Defense laboratories.  The test is planned for a 20-month period from October 1, 1994, to May 31, 1996, and will be managed by a Test Oversight Committee of representatives of each of the military departments and the Office of the Secretary of Defense.  The Air Force organization responsible for the test is AFMC/PKT.

FILING INSTRUCTIONS:  File AFAC page B-5 with the AFACs.

POSTING INSTRUCTIONS:  Insert pages B-5.1 through B-5.27 behind DFARS page 235.0-15.

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B5" in the margin of the Table of Contents for Part 235 below the reference to "235.071 - Additional Contract Clauses."

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective from 1 Oct 94 until the change is published in a DAC.

Item B6--

GENERAL:  This AFAC Item provides interim revisions to DFARS Subparts 216.3, 242.7, and 252.2 to allow predetermined indirect cost rates for contracts with educational institutions to be applicable for a period of up to four years.  This DFARS change is issued pending publication of a FAR change implementing the July 26, 1993 revision of the Office of Management and Budget (OMB) Circular A-21, Cost Principles for Educational Institutions.

FILING INSTRUCTIONS:  File AFAC page B-6 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:

	(i) Page B-6.1 facing DFARS page 216.3-1;

	(ii) Page B-6.2 facing page 242.7-2; and

	(iii) Page B-6.3 behind page 252.216-5.
AFAC 92-43	October 20, 1994	5

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B6" in the margin at each of the following locations in the DFARS:

	(i) Page 216.3-1 below 216.301-3(c);

	(ii) Page 242.7-2 below 242.705-2(b)(2)(v);

	(iii) The Table of Contents for Part 252 at the reference to 252.216-7001 "Economic Price Adjustment -- Nonstandard Steel Items," and

	(iv) FAR Pages 42-11 at 42.705-3(b)(4) and 52-64 at the end of 52.216-15.

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective from 18 Oct 94 until the change is published in a DAC.

Item B7--

GENERAL:  This AFAC Item amends DFARS Subpart 247.2 to permit contracting officers to consider factors other than cost or price when evaluating offers for stevedoring services.  This will permit contracts to be awarded to sources offering the best overall value to the Government.

FILING INSTRUCTIONS:  File AFAC page B-7 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC page B-7.1 facing DFARS page 247.2-2.

MARKING INSTRUCTIONS:  Annotate "AFAC 92-43, B7" in the margin on page 247.2-2 at 242.270-5 and 247.270-6.

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective from 29 Sep 94 until the change is published in a DAC.

Item D1--

GENERAL:  This AFAC Item extends for one year the deviation published under AFAC 92-34, D1.

FILING INSTRUCTIONS:  File AFAC page D-1 with the AFACs.

POSTING INSTRUCTIONS:  None.

MARKING INSTRUCTIONS:  Annotate "Extended by AFAC 92-43, D1" below the annotated reference to "AFAC 92-34, D-1" at each of the following locations:  on FAR page 45-7 at 45.306-1; 45-8 at 45.306-5; 52-211 at 52.245-2; and 52-233 at 52.247-17.

EFFECTIVITY INSTRUCTIONS:  This AFAC Item is effective until 16 Oct 95 pending incorporation of the change in a FAC.
6	October 20, 1994	AFAC 92-43

	Blank Page
AFAC 92-43	October 20, 1994	B-1

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	September 29, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DFARS Case:  93-D318
	D.L. 94-013

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    AGENCY

SUBJECT:  Award to Foreign Controlled Contractors

	We have revised the Defense Federal Acquisition Regulation Supplement (DFARS) to implement 10 U.S.C. 2536 as amended by Section 842 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).  10 U.S.C. 2536 prohibits award of a DoD contract under a national security program to an entity controlled by a foreign government, if access to proscribed information is required to perform the contract.  Section 842 of Pub. L. 103-160 amends 10 U.S.C. 2536 by revising the definition of "entity controlled by a foreign government."  The definition excludes organizations and corporations that are owned, but are not controlled, by a foreign government if ownership of the organization or corporation by the foreign government was effective before October 23, 1992.

	The attached DFARS language revises and finalizes the interim language published as Item VII of Defense Acquisition Circular 91-5.  This final language revises the guidance in DFARS Subpart 209.1 and the solicitation probision at DFARS 252.209-7002.  This language is effective immediately and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director, Defense Procurement

Attachment

cc:  DSMC, Ft. Belvoir

	Blank Page

	Blank Page
B-1.1	October 20, 1994	AFAC 92-43

PART 209--CONTRACTOR QUALIFICATIONS

SUBPART 209.1--RESPONSIBLE PROSPECTIVE CONTRACTORS

209.101  Definitions.

	"Entity controlled by a foreign government," "foreign government," [] and "proscribed information" are defined in the provision at 252.209-7002, Disclosure of Ownership or Control by a Foreign Government.

*  *  *  *  *
AFAC 92-43	October 20, 1994	B-1.2


209.104 Standards.

209.104-1	General standards.

   (g)(i) *  *  *

	 (ii)  Ownership or control by a foreign government when access to proscribed information is required.
	
		   (A)  Under 10 U.S.C. 2536(a), no DoD contract under a national security program may be awarded to a[n entity] [] controlled by a foreign government if that [entity] requires access to proscribed information to perform the contract.
	
		   (B)  Whenever the contracting officer has a question about application of the provision at 252.209-7002, the contracting officer may seek advice from the Director, Defense Security Programs, Office of the Assistant Secretary of Defense for Command, Control, Communications and Intelligence.

		   (C)  In accordance with 10 U.S.C. 2536(b), the Secretary of Defense may waive the prohibition in subparagraph (g)(ii)(A) of this subsection upon determining that the waiver is essential to the national security interests of the United States.  The Secretary has delegated authority to grant this waiver to the Assistant Secretary of Defense for Command, Control, Communications and Intelligence.  Waiver requests, prepared by the requiring activity in coordination with the contracting officer, shall be processed through the Director of Defense Procurement, Office of the Under Secretary of Defense [] [(]Acquisition [& Technology)], and shall include a proposed national interest determination.  The proposed national interest determination, prepared by the requiring activity in coordination with the contracting officer, shall include:

		   (1)  Identification of the proposed awardee, with a synopsis of its foreign ownership (include solicitation and other reference numbers to identify the action);
		   (2)  General description of the acquisition and performance requirements;
		   (3)  Identification of the national security interests involved and the ways award of the contract helps advance those interests;
		   (4)  The availability of another entity with the capacity, capability and technical expertise to satisfy defense acquisition, technology base, or industrial base requirements; and
		   (5)  A description of any alternate means available to satisfy the requirement, e.g., use of substitute products or technology or alternate approaches to accomplish the program objectives.

*  *  *  *  *
B-1.3	October 20, 1994	AFAC 92-43

209.104-70 Solicitation provisions.

*  *  *  *  *

	(b)  Use the provision at 252.209-7002, Disclosure of Ownership or Control by a Foreign Government, in all solicitations, including those subject to the procedures in FAR Part 13, when access to proscribed information is necessary for contract performance. 

*  *  *  *  *

	Blank Page
B-1.4	October 20, 1994	AFAC 94-43

PART 225--FOREIGN ACQUISITION

*  *  *  *  *

SUBPART 225.7--RESTRICTIONS ON CERTAIN FOREIGN PURCHASES

225.702 Restrictions.

	(1) See 209.104-1(g)(i) for restrictions on contracting with firms owned or controlled by foreign governments that support terrorism.  See 209.104-1(g)(ii) for prohibition on award of a DoD contract under a national security program to a company owned by an entity controlled by a foreign government when access to proscribed information is required to perform the contract.

*  *  *  *  *
AFAC 92-43	October 20, 1994	B-1.5

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

*  *  *  *  * 

SUBPART 252.2--TEXTS OF PROVISIONS AND CLAUSES                     
*  *  *  *  *

{252.209-7002}	Disclosure of Ownership or Control by a Foreign
Government.
As prescribed in 209.104-70(b), use the following provision:

	DISCLOSURE OF OWNERSHIP OR CONTROL BY A FOREIGN GOVERNMENT 
	([SEP 1994])

(a)	Definitions.
	  As used in this provision--
	
	  (1) "Effectively owned or controlled" means that a foreign government or any entity controlled by a foreign government has the power, either directly or indirectly, whether exercised or exercisable, to control [] the election[,] [] appointment[, or tenure] of the Offeror's officers [] or a majority of the Offeror's board of directors by any means, e.g., ownership, contract, or operation of law [(or equivalent power for unincorporated organizations)].

	  (2) "Entity controlled by a foreign government"[-]

  		   [(i) Means--]

				[(A)] Any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; or

			[(B)] Any individual acting on behalf of a foreign government.

		   [(ii) Does not include an organization or corporation that is owned, but is not controlled, either directly or indirectly, by a foreign government if the ownership of that organization or corporation by that foreign government was effective before October 23, 1992.]
	
		(3)"Foreign government" [includes the state and the government of any country (]other than the United States and its possessions and trust territories[) as well as any political subdivision, agency,] or instrumentality [thereof].
	
		(4)	"Proscribed information" means--

			  (i)Top Secret information;
B-1.6	October 20, 1994	AFAC 92-43


		   (ii) Communications Security (COMSEC) information, except classified keys used to operate secure telephone units (STU IIIs);
	   (iii) Restricted Data as defined in the U.S. Atomic Energy Act of 1954, as amended;
		   (iv)	Special Access Program (SAP) information; or
		   (v)	Sensitive Compartmented Information (SCI).
	(b) Prohibition on award.
		No contract under a national security program may be awarded to a[n entity controlled] controlled by a foreign government if that [entity] requires access to proscribed information to perform the contract, unless the Secretary of Defense or [a]designee has waived application of 10 U.S.C. 2536(a).
	(c)	Disclosure.
		  The Offeror shall disclose any interest a foreign government has in the Offeror when that interest constitutes control by a foreign government as defined in this provision.  If the Offeror is a subsidiary, it shall also disclose any reportable interest a foreign government has in any entity that owns or controls the subsidiary, including reportable interest concerning the Offerorns immediate parent, intermediate parents, and the ultimate parent.  Use separate paper as needed, and provide the information in the following format:
	
	Offeror's Point of Contact for Questions about Disclosure
	  (Name and Phone Number with Country Code, City Code
	  and Area Code, as applicable)

	Name and Address of Offeror

	Name and Address of Entity	Description of Interest,
	Controlled by a Foreign		Ownership Percentage, and
	Government			 	Identification of Foreign
							Government

	(End of provision)
AFAC 92-43	October 20, 1994	B-2

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	September 29, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DFARS Case:  93-D319
	D.L. 94-014

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:  Terrorist Countries

	We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 843 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).  Section 843 requires offerors and contractors to report commercial transactions that they have conducted with the government of a terorist country.

	The attached interim DFARS rule adds a new provision at 252.209-7003 and a new clause at 252.209-7004 for use in solicitations and contracts with an estimated or actual value exceeding $5,000,000.  The rule also revises the provision at 252.209-7001 for consistency with the terminology used in the new provision and clause.

	This interim rule is effective immediately and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director, Defense Procurement

Attachment

cc:  DSMC, Ft. Belvoir

	Blank Page
AFAC 92-43	October 20, 1994	B-2.1

PART 209--CONTRACTOR QUALIFICATIONS
SUBPART 209.1--RESPONSIBLE PROSPECTIVE CONTRACTORS

209.104  Standards.

209.104-1  General Standards.

* * * * *

(g)(i) Ownership or control by [the] government [of a terrorist country].

* * * * *

	(ii) * * *

	[(iii) Commercial transactions with the government of a terrorist country.
		  (A) In accordance with Section 843 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160) -

			  (1) Each offeror submitting an offer exceeding $5,000,000 must disclose each commercial transaction that it has conducted with the government of a terrorist country since February 28, 1994; and

			  (2) For each contract exceeding $5,000,000, the contractor must annually report each commercial transaction that it conducts during the course of the contract (but not beyond September 30, 1996) with the government of a terrorist country.

		  (B) Upon award of a contract exceeding $5,000,000 to an offeror disclosing that it has conducted commercial transactions with the government of a terrorist country, the contracting officer shall-

			  (1) Forward a copy of the offeror's disclosure to the Deputy Director of Defense Procurement (Foreign Contracting; and

			  (2) Include with the disclosure the following information:
				  (i) Offeror's name and address;

				  (ii) Contracting officer's name and telephone number; and  
				  (iii) Contract number and award date.]
B-2.2	October 20, 1994	AFAC 92-43

* * * * *

209.104-70 Solicitation provisions [and contract clause].

	(a)	Use the provision at 252.209-7001, Disclosure of Ownership or Control by [the Government of a Terrorist Country], in [all] solicitations expected to result in contracts of $100,000 or more.

* * * * * 

	[(c)	Use the provision at 252.209-7003, Disclosure of Commercial Transactions with the Government of a Terrorist Country, in all solicitations expected to result in contracts exceeding $5,000,000.

	(d)	Use the clause at 252.209-7004, Reporting of Commercial Transactions with the Government of a Terrorist Country, in all solicitations that include the provision at 252.209-7003, and in all contracts exceeding $5,000,000.] 

* * * * *

	Blank Page
B-2.3	October 20, 1994	AFAC 92-43

SUBPART 252.2--TEXTS OF PROVISIONS AND CLAUSES                     
*  *  *  *  *

252.209-7001 Disclosure of Ownership or Control by [the Government of a Terrorist Country].

As prescribed in 209.104-70(a), use the following provision:

	DISCLOSURE OF OWNERSHIP OR CONTROL BY
	[THE GOVERNMENT OF A TERRORIST COUNTRY] ([SEP 1994])

	(a)	Definition[s].
	 []  [A]s used in this provision[-][]
		[(1) "Government of a terrorist country" includes the state and the government of a terrorist country, as well as any political subdivision, agency, or instrumentality thereof.

		(2) "Terrorist country" means a country determined by the Secretary of State, under section 6(j)(1)(A)) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(i)(A)), to be a country the government of which has repeatedly provided support for acts of international terrorism.  As of the date of this provision, terrorist countries include:  Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.]

		[(3)] "Significant interest[]"[] means-[]

			  ([i]) Ownership of or beneficial interest in [5] percent or more of the firm's or subsidiary's securities.  Beneficial interest includes holding [5] percent or more of any class of the firm's securities in "nominee shares," "street names," or some other method of holding securities that does not disclose the beneficial owner;

			([ii]) Holding a management position in the firm, such as a director or officer;

			([iii]) Ability to control or influence the election, appointment, or tenure of directors or officers in the firm;

			([iv]) Ownership of [10] percent or more of the assets of a firm such as equipment, buildings, real estate, or other tangible assets of the firm; or

			([v]) Holding 50 percent or more of the indebtedness of a firm.

	(Continued Page B-2.4)
AFAC 92-43	October 20, 1994	B-2.4


[Continuation of 252.209-7001 Disclosure of Ownership or Control
	by the Government of a Terrorist Country.

(b) Prohibition on award.
		In accordance with 10 U.S.C. 2327, no contract may be awarded to a firm or a subsidiary of a firm if the government of a terrorist country has a significant interest in the firm or subsidiary, unless a waiver is granted by the Secretary of Defense.]

([c])	Disclosure.
		The Offeror shall disclose any significant interest the government of each of the following countries has in the Offeror or a subsidiary of the Offeror.  If the Offeror is a subsidiary, it shall also disclose any significant interest [the] government [of a terrorist country] has in any firm that owns or controls the subsidiary.  [The disclosure shall include-]

		  (1) [Identification of each government holding a significant interest; and]

		  (2) [A description of the significant interest held by each Government.]

		  []
	(End of provision)
*  *  *  *  *

	Blank Page
AFAC 92-43	October 20, 1994	B-2.5

[252.209-7003  Disclosure of Commercial Transactions with the Government of a Terrorist country.
	
	As prescribed in 209.104-70(c), use the following provision:

	DISCLOSURE OF COMMERCIAL TRANSACTIONS WITH THE
	GOVERNMENT OF A TERRORIST COUNTRY (SEP 1994)

	(a) Definitions.

	"Government of a terrorist country" and "terrorist country" are defined in the Reporting of Commercial Transactions with the Government of a Terrorist Country clause of this solicitation.

	(b) Disclosure.

	(1) Section 843 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) requires offerors to disclose commercial transactions conducted with the government of a terrorist country.  If this offer exceeds $5,000,000, and if the Offeror has conducted such transactions, the Offeror shall disclose, in an attachment to its offer, each commercial transaction that it has conducted with the government of a terrorist country since February 28, 1994.  The disclosure shall include-

		 (i) Identification of the government with which each transaction was conducted; and

		 (ii) The nature of each transaction.

	(2) This disclosure requirement does not apply to-

		 (i) Transactions conducted by affiliates or subsidiaries of the Offeror; or

		 (ii) Payment or receipt of payment of a judgment or award ordered by a court or arbitral tribunal of competent jurisdiction.

	(End of Provision)]

	Blank Page
AFAC 92-43	October 20, 1994	B-2.6

[252.209-7004 Reporting of Commercial Transactions with the Government of a Terrorist Country.

As prescribed in 209.104-70(d), use the following clause:

	REPORTING OF COMMERCIAL TRANSACTIONS WITH THE
	GOVERNMENT OF A TERRORIST COUNTRY (SEP 1994)

	(a) Definitions.
			As used in this clause-
		(1) "Government of a terrorist country" includes the state and the government of a terrorist country, as well as any political subdivision, agency, or instrumentality thereof.
		(2) "Terrorist country" means a country determined by the Secretary of State, under section 6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 2405 (j)(1)(A)), as of 60 days before the contract award date, to be a country the government of which has repeatedly provided support for acts of international terrorism.  As of the date of this clause, terrorist countries include:  Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
	(a) Reporting.
		(1) In accordance with Section 843 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160), if this contract exceeds $5,000,000, the Contractor shall report each commercial transaction that it conducts with the government of a terrorist country during the period of performance of this contract (but not beyond September 30, 1996).
		(2) This reporting requirement does not apply to-
			(i) Transactions conducted by affiliates or subsidiaries of the Contractor; or
			(ii) Payment or receipt of payment of a judgment or award ordered by a court or arbitral tribunal of competent jurisdiction.
B-2.7	October 20, 1994	AFAC 92-43

		(3) The Contractor shall submit reports in the following format:

Title of Report:  Report of Commercial Transactions with the 	Government of a Terrorist Country

Date of Report:

Contract Number:

Contractor's Name and Address:

Name and Telephone Number of Individual Submitting Report:

Commercial Transactions with the Government of a Terrorist Country:

	Country				 Nature of Commercial Transaction
	
                                                                    
                                                                       		  
		(4) The Contractor shall submit reports annually by September 30, but not beyond September 30, 1996.  Each report shall include transaction conducted during the preceding one year period of contract performance.
		(5) The Contractor shall submit reports to:

			Deputy Director of Defense Procurement (Foreign 	  Contracting)
			PDUSD(A&T)DP(FC)
			Washington, DC 20301-3060

	(End of Clause)] 
AFAC 92-43	October 20, 1994	B-3

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	September 29, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DAR Case 91-310
	D.L. 94-015

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:  Small Purchases in Support of Contingency Operations

	We have amended sections 213.000, 213.101, 213.404, and 213.505 of the Defense Federal Acquisition Regulation Supplement (DFARS) to fully implement the Department of Defense's authority to use simplified procedures for acquisitions in support of a contingency operation.  These revisions provide for the use of small purchase procedures up to $100,000 for any contract to be performed outside the United States in support of a contingency operation as defined in 10 U.S.C. 101(a)(13).

	The attached final DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director, Defense Procurement

Attachment

cc:  DSMC, Ft. Belvoir

	Blank Page
 
	Blank Page
B-3.1	October 20, 1994	AFAC 92-43

213.000  Scope of part. 
This part also implements [] 10 U.S.C. 2302(7) which increases the small purchase threshold to $100,000 for any contract to be awarded and performed outside the United States in support of a contingency operation [as defined in 10 U.S.C. 101(a)(13)].

	Blank Page
B-3.2	October 20, 1994	AFAC 92-43

213.101  Definitions. 
"Small purchase" also means an acquisition of $100,000 or less using the procedures prescribed in FAR Part 13, if the contract is awarded and performed outside the United States in support of a contingency operation [as defined in 10 U.S.C. 101(a)(13).  10 U.S.C. 101(a)(13) defines 'contingency operation" as a military operation that-
	(1) Is designated by the Secretary of Defense as an operation in which members of the armed forces are or may become involved in military actions, operations or hostilities against an enemy of the United States or against an opposing military force; or
	(2) Results in the call or order to, or retention on, active duty of members of the uniformed services under section 672(a), 673, 673b(sic), 673c(sic), 688, 3500, or 8500 of Title 10, chapter 15 of Title 10, or any other provision of law during a war or during a national emergency declared by the President or Congress.] 

	Blank Page
B-3.3	October 20, 1994	AFAC 92-43

213.404	Conditions for use.

	(a)	Overseas transactions in support of [a] contingenc[y operation as defined in 10 U.S.C. 101(a)(13)] may use imprest funds up to $2,500.
      []
AFAC 92-43	October 20, 1994	B-3.4

213.505-3	Standard Form 44, Purchase Order-Invoice-Voucher.

	(b)(1) The $2,500 limitation applies to all purchases except that purchases up to the small purchase limitation in FAR 13.000 may be made for--
		(A)	Aviation fuel and oil;
		
		(B) Overseas transactions by contracting officers in support of [a] contingenc[y operation as defined in 10 U.S.C. 101(a)(13)] ; and
		(C) Transactions in support of intelligence and other specialized activities addressed by Part 2.7 of Executive Order 12333.

	Blank Page
AFAC 92-43	October 20, 1994	B-4

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	September 28, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DFARS Case:  93-D004
	D.L. 94-012

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:  Offset Administrative Costs

	We have amended Subpart 225.73 of the Defense Federal Acquisition Regulation Supplement (DFARS) to change the criteria for contractor recovery of offset administrative costs under foreign military sales contracts.  The change eliminates the requirement for inclusion of specific information on offset costs in Letters of Offers and Acceptance on foreign military sales.

	The attached final DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director, Defense Procurement

Attachment

cc:  DSMC, Ft. Belvoir

	Blank Page
AFAC 92-43	October 20, 1994	B-4.1

225.7303-2  Cost of doing business with a foreign government or an
international organization.

(a)	In pricing FMS contracts where non-U.S. Government prices as described in 225.7303-1 do not exist[,[] r]ecognize [the reasonable and allocable] costs of doing business with a foreign government or international organization[,][]even though [such costs might not be recognized in the same amounts] in pricing other defense contracts.  Examples of such costs include, but are not limited to--
		([1])	Selling expenses (not otherwise limited by FAR Part 31), e.g.--
		([i])	Maintaining international sales and service organizations;
		([ii])	Sales commissions and fees in accordance with FAR Subpart 3.4;

		([iii])	Sales promotions, demonstrations, and related travel for sales to foreign governments.  Paragraph 126.8 of the International Traffic in Arms Regulations (ITAR)(22 CFR Part 121) may require Government approval for these costs to be allowable.  If Government approval is required for promotion or demonstration costs to be allowable, the approval must be obtained.
		([iv])	Configuration studies and related technical services undertaken as a direct selling effort to a foreign country.
	([2])	Product support and post[-]delivery service expenses, such as--
		([i])	Operations or maintenance training, training or tactics films, manuals, or other related data; and
		([ii])	Technical field services provided in a foreign country related to accident investigations, weapon system problems, operations/tactics enhancement, and related travel to foreign countries.
	([3])	Offset administrative costs. 
		([i])	A U.S. defense contractor may recover[] costs incurred to [administer] specific requirements of its offset agreement with a foreign government or international organization if the foreign military sale Letter of Offer and Acceptance [][is financed wholly with customer cash or repayable foreign military finance credits.]
         [ ]
		([ii])	[][T]he U.S. Government assumes no obligation to satisfy or administer the offset requirement or to bear any of the associated costs. 
								[ ]
		([iii])	Some examples of offset administrative costs--
			([A])	In-house and/or purchased: organizational, administrative and technical support, including offset staffing; quality assurance, manufacturing, purchasing support; data acquisition; proposal, transaction and report preparation; broker/trading services; legal support; and similar support activities;  
B-4.2	October 20, 1994	AFAC 92-43 


			([B])	Off-shore operations for technical representative and consultant activities, office operations, customer and industry interface, capability surveys; 
			([C])	Marketing assistance and related technical assistance, transfer of technical information and related training; 
			([D])	Employee travel and subsistence costs; and 
			([E])	Taxes and duties. 
	([4])	Costs that are the subject of advance agreement under the appropriate provisions of FAR Part 31; or where the advance understanding places a limit on the amounts of cost that will be recognized as allowable in defense contract pricing, and the agreement contemplated that it will apply only to DoD contracts for the U.S. Government's own requirements (as distinguished from contracts for FMS).

	(b) through (d) No change.
AFAC 92-43	October 20, 1994	B-5

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	October 4, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DFARS Case:  92-D034
	D.L. 94-017

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:	Test of Streamlined Research and Development (R&D) Contracting Procedures

	We have amended the Defense Federal Acquisition Regulation Supplement by adding Subpart 235.70, Research and Development Streamlined Contracting Procedures-Test (Attachment 1), to provide for a test of streamlined contracting procedures for use by selected Department of Defense laboratories.  The procedures are authorized for use only by the contracting activities identified in Attachment 2.

	We plan to conduct the test for a 20-month period extending from October 1, 1994, to May 31, 1996.  The test will be managed by a Test Oversight Committee composed of representatives of each of the military departments and the Office of the Secretary of Defense (Attachment 3).

	The test procedures in DFARS 235.70 are effective for use October 1, 1994, and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director, Defense Procurement

Attachments

cc:  DSMC, Ft. Belvoir  

	Blank Page
AFAC 92-43	October 20, 1994	B-5.1

[{235.70} Research and Development Streamlined Contracting Procedures -Test.

{235.7000} Scope.
This subpart prescribes streamlined acquisition procedures for use in support of DoD laboratories in acquiring research and development, as defined in 235.001 and FAR 35.001.

{235.7001} Definitions.
As used in this subpart-
	(a)	"Research and development standard contract (RDSC)" means the contract that results from the use of the research and development streamlined solicitation (RDSS), or other solicitation procedures that meet the criteria for use of the RDSS.
	(b)	"Research and development streamlined solicitation (RDSS)" means the solicitation published in the Commerce Business Daily and a supplemental package, if necessary.
	(c)	"Supplemental package" is part of the streamlined solicitation, if appropriate.  It contains any information that is too voluminous to be included in the solicitation published in the Commerce Business Daily.

{235.7002} Applicability.
	(a)	Contracting offices that have been approved by the Director of Defense Procurement for participation in the test may use the procedures of this subpart in accordance with the approved test plan and paragraphs (b) through (d) of this section.  The Director of Defense Procurement has approved-
		(1)	Army:  Army Materiel Command contracting offices when contracting for Army Research Laboratory, Missile Research & Development Center, and the Medical Research & Development Command; Army Corps of Engineers contracting offices when contracting for the Waterways Experiment Station.
		(2)	Navy:  Naval Research Laboratory contracting office; Naval Surface Warfare Center contracting offices when contracting for the Carderock, Crane, Dahlgren, Indian Head and Port Hueneme divisions.
		(3)	Air Force:  Air Force Material Command contracting offices when contracting for Armstrong Laboratory, Phillips Laboratory, Rome Laboratory, Wright Laboratory.
		(4)	Defense Agencies:  Armed Forces Radiobiology Research Institute contracting office, Defense Nuclear Agency contracting office.
	(b)	Consider using the procedures in this subpart when the acquisition will result in a cost-reimbursement type contract that is valued at $10,000,000 or less and meets the criteria for research and development as defined in 235.001 and FAR 35.001.
	(c)	Do not use the procedures of this subpart to contract for "engineering development," "operational system development," or "management
			and support" as defined in 235.001; or for laboratory supplies and equipment, base support services, or other services identified in FAR 37.101 (a) through (h).
	(d)	Regardless of whether or not the RDSS is used, the contracting officer may use the RDSC format at 235.7006 for any acquisition that meets the criteria in 235.7002(b).

{235.7003} Reporting requirements.
	(a)	The reporting requirement in this subpart is exempt from licensing in accordance with paragraph E.4>c of DoD 8910.1M, "DoD Procedures for Management of Information Requirements."
	(b)	Contracting offices that have been approved for participation in the test shall report the information required in paragraphs (c) and (d) of this subpart to their representatives on the Test Oversight Committee.  These representatives are-
		(1) Army:
					Mr. Chuck Boylan
					Army Research Laboratory, Fort Monmouth
					Phone:  (908)544-3471; DSN 995-3471
					FAX:		(908)532-5188; DSN 986-3767
		(2) Navy:
					Ms. Mary Ann Carpenter
					Naval Research Laboratory
					Phone:  (202)767-0066; DSN 297-0066
					FAX:		(202)767-5896; DSN 297-5896
		(3) Air Force:
					Lt Col Bill Borchardt
					Air Force Materiel Command
					Phone:  (513)257-8934; DSN 787-8934
					FAX:		(513)476-1431; DSN 986-1431
		(4) Defense Agencies:

	(i)	Armed Forces Radiobiology Research Institute:
			Major Vikki Stocker
			Logistics and Engineering
			Phone:  (301)295-0454; DSN 295-0454
			FAX:		 (301)295-1863; DSN 295-1863
	(ii) Defense Nuclear Agency:
			Mr. Tom McCabe
			Acquisition Management Office
			Phone:  (703)325-6961; DSN 221-6961
			FAX:		 (703)325-9291; DSN 221-9291
	(c)	Each approved test contracting office shall collect the following aggregate data during the test period:
		(1) Number of contract actions selected for the test.
		(2)	Number of claims related to the streamlined procedures and streamlined solicitation/standard contract.
		(3) Contracting office feedback regarding-
				(A) The streamlined procedures.
				(B) Use of the RDSC.
		(4)	Number of acquisitions processed that used the RDSC in conjunction with traditional solicitations.
		(5)	Number of solicitations and contracts in which clauses and provisions not listed in the format as 235.7006 are added.
	(d)	Each approved test contracting office shall collect and provide the following data for each contracting action processed using the streamlined procedures:
		(1) Activity processing the contracting actions.
		(2) Total value of the resulting contract.
		(3) Brief description of the item/service acquired.
		(4) Procurement actin lead time for the specific action.
		(5) Whether or not a supplemental package was used.
			(i)	 Size (number of pages).
			(ii) Contents. 
		(6) Use of RDSC in conjunction with traditional solicitations.
		(7) If a protest is filed, the issues under protest, and the disposition.
		(8) The rationale supporting any requests for replacement of RDSS with a traditional solicitation.

{237.7004} The Research and development streamlined solicitation (RDSS).

{235.7004-1} General.
The RDSS process consists of:
	(a) Synopsis.
	The synopsis required by FAR 5.203(a), in addition to providing the information set forth at FAR 5.207, must advise potential offerors that a conventional solicitation will not be issued but that the solicitation will appear in a subsequent edition of the Commerce Business Daily (CBD).  The synopsis must also advise potential offerors to provide address information to
the office indicated in order to be included on the mailing list for any supplemental packages and/or amendments.
	(b) Solicitation.
	The solicitation is published in a second CBD notice.  The solicitation consists of the information listed at 235.7006(c)(A.1), including the statement of work, and incorporates by reference the appropriate terms and conditions in the format at 235.7006.  FAR 5.207 limits submissions to the CBD to 12,000 textual characters (approximately 3 1/2 single-spaced pages).
	(c) Supplemental package.
	Use a supplemental package if the solicitation must exceed 3 1/2 single-spaced pages, or to provide forms or other printed material to potential offerors.  Send the supplemental package on the date the solicitation is published in the CBD to all interested parties that provide address information.
	(d) Amendments.
	Amend the RDSS as set forth at 235.7004-2(f). 

{235.7004-2} Solicitation procedures.
	(a)	Publish the synopsis as soon as the information required by FAR 5.207 is available.
	(b)	Publish the solicitation no earlier than 15 days after publication of the synopsis and include, as a minimum, the information required by 235.7006(c)(A.1) and a reference to the synopsis.
	(c)	Send any supplemental package on the date the solicitation is published in the Commerce Business Daily, to all interested parties that provided address information.
	(d)	In accordance with FAR 5.203(b), establish a due date for submission of offers that is no earlier than 45 days after publication of the synopsis.
	(e)	Request cost and technical proposals from all offerors.  To encourage preparation of better cost proposals, consider allowing a delay between the due dates for technical and cost proposals.
	(f)	Amend the solicitation, if necessary, by forwarding an SF30, Amendment of Solicitation/Modification of Contract, to all interested parties that provided address information in response to the synopsis.
	(g)	Post copies of all Commerce Business Daily notices in accordance with FAR 5.101(a)(2).

{235.7004-3} Proposal evaluation and contract award procedures.
	(a)	Evaluate proposals in accordance with FAR Subpart 15.6, as supplemented by departmental procedures and this subpart.
	(b)	Select the proposal which offers the greatest value in terms of the evaluation factors set forth in the RDSS.
	(c)	Before award, require the apparent successful offeror to submit the representations and certifications set forth in 235.7006(c), Section K, Representations, Certifications and Other Statements of Offerors or Quoters.
	(d)	Whenever appropriate, award without discussion pursuant to FAR 52.215-16, Alternate (III).

{235.7005} The research and development standard contract (RDSC).
	The RDSC is the standard contract that results from the use of the RDSS or other solicitation procedures that meet the criteria for use of the RDSS.  Include the following in RDSCs:
	(a)	Standard Form (SF) 33, Solicitation, Offer and Award, or SF 26, Award/Contract;
	(b)	Sections B through J of the RDSS or other solicitation, with applicable full-ins completed and clause dates added.

{235.7006} The research and development streamlined contracting format.
	(a)	The clauses and provisions prescribed in 235.7006(c) are mandatory unless they are marked with an asterisk.  Terms, clauses and provisions marked with an asterisk are for use as appropriate as prescribed elsewhere in FAR and DFARS.  List the numbers of any asterisked terms, clauses and provisions that apply to the acquisition in the solicitation published in the Commerce Business Daily (See 235.7006(c)(A.1)(v).
	(b)	At the time of contract award to educational or nonprofit institutions, delete those clauses and provisions that do not apply to such institutions, and, as necessary, replace with the appropriate alternatives.  For example, FAR 52.203-10 will be included in all solicitations, but deleted in awards to educational institutions.
	(c) Research and development streamlined contracting format.

	Part I-The Schedule.

Section A, Solicitation/Contract Form.
 (A.1) Research and development streamlined solicitation (RDSS).  Include the following in the RDSS:
			(i)	Solicitation number;
			(ii)	A statement that award will be made in accordance with DFARS Subpart 235.70, Research and Development Streamlined Contracting Procedures.
			(iii)	A statement as to whether the RDSS includes a supplemental package.
			(iv)	Instructions for obtaining any supplemental package, including use of Electronic Bulletin Boards, as appropriate.

			(v)	A statement that all of the mandatory terms, clauses, and provisions, and certain asterisked terms, clauses, and provisions in DFARS 235.7006 are incorporated by reference.  This statement must list the asterisked terms, clauses and provisions that apply.  (For example:  "All of the mandatory terms, clauses and provisions at DFARS 235.7006, Research and development streamlined contracting format, and the following optional items are incorporated by reference:  B.4, B.5, C.1, E.3, I.80");
			(vi)	A statement that the clauses and provisions are those in effect through FAC     and DAC    ;
			(vii)	A statement that the standard evaluation factors at Section M of this subpart apply, or, if they do not apply, the applicable evaluation factors.  If the standard evaluation factors are modified in any way, the modifications must be clearly expressed so that the result is unambiguous.  Additions to and deletions from Section M must be clearly annotated in the RDSS.
			(viii)	Identification of data requirements by including either:
				(A)	A summary of the data requirements that identifies all deliverable data items, and specifies number of copies and frequency of delivery; or
				(B)	A notice that DD Form 1423, Contract Data Requirements List, is included in the supplemental package;
			(ix)	Type of cost contract contemplated;
			(x)	Estimated period of performance;
			(xi)	Notice of preproposal conference, if applicable, with location, date, and time;
			(xii)	Notice of small business or other set-aside, if applicable;
			(xiii)	Notice of place, date, and time technical and cost proposals are due;
			(xiv)	Number of copies of technical and cost proposals required;
			(xv)	Proposal page limitations;
			(xvi)	Whether multiple awards are contemplated;
			(xvii)	Name, address, and telephone number of contracting officer;
			(xviii)	Any applicable Commerce Business Daily numbered notes;
			(xix)	Statement that a DD Form 254, Contract Security Classification Specification, will be included in the supplemental package, if appropriate; and
			(xx)	The statement of work, or a statement that the statement of work is in the supplemental package.
 (A.2) Research and development standard contract (RDSC).  Use either Standard Form (SF) 33, Solicitation, Offer, and Award, or SF 26, Award/Contract.

Section B, Supplies or Services and Prices/Costs.
	(Use appropriate CLIN structure.  Include item descriptions.)
 (B.1)	Type of Contract.
This is a                        contract.
*(B.2)	Estimated Cost.  (Use when no fee will be paid)
The total estimated cost for this contract is $                .
*(B.3)	Cost Plus Fixed Fee.  (Applicable to fee-bearing contracts)
The total estimated cost for this contract is $                 .
The total fixed fee for this contract is $                  .
*(B.4)	Award Fee.  (Applicable to award fee-type contracts)
In addition to the fee set forth elsewhere in the contract, the Contractor may earn an award fee up to $       on the basis of performance during the performance periods, and in the amount specified in the award fee plan.
			(i)	Monitoring of performance.  The contractor's performance will be monitored continually by the Award Fee Review Board.
			(ii)	Award fee plan.  This plan provides necessary administrative information, including the evaluation criteria and schedule, for the purpose of implementing the award fee provision.  Upon contract award, the Contractor will be provided the award fee plan subject to any withholdings authorized by the              (insert appropriate contracting official).
			(iii)	Modification of award fee plan.  Before the start of an evaluation period the Government may unilaterally:
				(A)	Modify the award fee performance evaluation criteria and areas applicable to the evaluation period; and
				(B)	Redistribute the remaining award fee dollars among the remaining periods.  The Contracting Officer will notify the Contractor in writing of the changes and modify the award fee plan accordingly.
			(iv)	The following standards of performance shall be used in determining whether and to what extent the Contractor has earned or may be entitled to receive any award fee:
				(A)	Excellent performance:  Contractor performance of virtually all contract task requirements is uniformly well above standard and exceeds the standard by a substantial margin in numerous significant tangible or intangible benefits to the Government (i.e., improved quality, responsiveness, increased timeliness, or generally enhanced effectiveness of operations).  There are few areas for improvement; these areas are all minor; there are no recurring problems; and management has initiated effective corrective action whenever needed.
				(B)	Very good performance:  The contractor's performance of most contract task requirements is uniformly well above standard and exceeds the standard in many significant areas.  Although some areas may require
   					improvements, these are minor and are more than offset by better performance in other areas.  Few, it(sic) any, recurring deficiencies have been noted in the Contractor's performance and the contractor has demonstrated/taken satisfactory corrective action.  Innovative management actions have resulted in tangible or intangible benefits to the Government (i.e., improved quality, responsiveness, increased quantity, increased timeliness, or generally enhanced effectiveness of operations).
				(C)	Good performance:  Contractor's performance of most contract task requirements meets the standard, and it exceeds the standard in several significant areas.  While the remainder of the contractor's effort generally meets contract requirements, areas requiring improvement are more than offset by better performance in other areas.  Management actions taken or initiated have resulted in some demonstrated benefits to the Government (i.e., improved quality, responsiveness, timeliness, or effectiveness of operations).
				(D)	Marginal performance:  Contractor performance meets most contract standards.  Although there are areas of good or better performance, these are more or less offset by lower rated performance in other areas.  Little additional tangible benefit is observable due to contractor effort or initiative.
				(E)	Submarginal performance:  Contractor performance is below standard in several areas.  Contractor performance in accordance with requirements is inconsistent.  Quality, responsiveness, timeliness, and/or economy in many areas require attention and action.  Corrective actions have not been taken, or are ineffective.  Overall submarginal performance shall not be given award fee.
	(v)	Maximum payable award fee.  The maximum payable award fee in any evaluation period shall be determined based on the amount set forth in the applicable contract line items and a percentage based on the Government's evaluation on the Contractor's performance as follows:

													 Percent of Maximum
					Performance					Award Fee Payable
					Excellent						  % to   %
					Very Good						  % to   %
					Good								  % to   %
					Marginal						  % to   %
					Submarginal				    0%  

	(vi)	Self-evaluation.  The Contractor may submit to the Contracting Officer within five working days after the end of each award fee evaluation period, a brief written self-evaluation of its performance for the period.  This statement may contain information which may be used to assist the Award Fee Review Board in its evaluation of the Contractor's performance during the period.
	(vii)	Disputes.  The decision of the Fee Determining Official on the amount of award fee will not be subject to the "Disputes" clause.
	(viii)	Award fee payment.
				(A)	As determined by the Fee Determining Official, payment of any
					award fee will not be subject to the "Allowable Cost and Payment" and "Termination (Cost Reimbursement)" clauses of this contract.
				(B)	The Contractor may submit vouchers for the award fee immediately upon receipt of the Contracting Officer's award fee notification.

*(B.5) Target Cost and Fee.  (Applicable to incentive fee-type contracts.)
The target cost is $          .
The target fee is $           .
The minimum fee the contractor may receive $           .
The maximum fee the contractor may receive $           .
Share ration:                      
							(Government/Contractor)

*(B.6) Payment of Fixed Fee on Cost-plus-fixed-fee (Completion) Contracts.  The fixed fee shall be paid in monthly installment based upon the percentage of completion of work as determined by the Administrative Contracting Officer, subject to the withholding provisions of the Contract.

*(B.7) Payment of Fixed Fee on Cost-plus-fixed-fee (Term) Contracts.  (Applicable to cost-plus-fixed-fee (term) contracts when the clause at FAR 52.216-8 is used.)  Pursuant to the clause at FAR 52.216-8, "Fixed Fee," and subject to withholding provisions contained in that clause or elsewhere in this contract, fixed fee shall be paid to the Contractor based upon the percentage of hours completed as related to the total hours set forth in the contract on each voucher.  The Contractor shall certify to the level of effort expended during that period.  The Government technical representative may require performance of the work required by CLIN     .  The Contracting Officer shall provide written notice of intent to exercise this option to the Contractor on or before            .  If the Government exercises this option by       (insert date), the Contractor shall perform at the estimated cost and fee, if applicable, set forth below.

   				Estimated Cost		$                   
					OR
					Estimated Cost		$                   
					Fixed Fee					$                   
					Total							$                   
					OR
					Estimated Cost		$                   
					Base Fee					$                   
					Maximum Award Fee	$                    
					Total							$                   
					OR
					Target Cost			$                    
					Minimum Fee			$                    
					Target Fee				$                   
					Maximum Fee			$                    
					Share Ratio			$                    

Section C, Description/Specifications/Work Statements.

*(C.1) Classified Work Statement.  (Applicable if Section C is classified.)  The description/specifications/work statement entitled,
"            ," classified           , dated        , is incorporated herein by reference.  A copy may be obtained from the Contracting Officer, if a need-to-know is established and appropriate security clearance has been granted.

*(C.2) Unclassified Work Statement.  (Applicable if Section C is unclassified and is attached to the contract.)  The description/specifications/work statement is included as Attachment
       .

*(C.3) Contractor's Technical Proposal.  (Applicable if portions of the Contractor's proposal are incorporated by reference.  Include only those portions of the proposal that specifically describe the work to be performed.)  The Contractor's proposal entitled, "            ," pages
       , dated        , is incorporated herein by reference.

Section D, Packing and Marking.

 (D.1) Commercial Packaging.
Preservation, packaging, and packing shall proved adequate protection against physical damage during shipment for all deliverable items in accordance with standard commercial practices. 

Section E, Inspection and Acceptance.

		(1) Federal Acquisition Regulation clauses.

*(E.1)		52.246-8				Inspection of Research and
													 Development - Cost Reimbursement
*(E.2)		52.246-8				Inspection of Research and
													 Development - Cost Reimbursement
													 (Alternate I)
*(E.3)		52.246-9				Inspection of Research and
													 Development (Short Form)

		(2) Defense Federal Acquisition Regulation Supplement clause.

*(E.4)		252.246-7000		Material Inspection and Receiving
													 Report

		(3) Other provisions.

*(E.5) Inspection and Acceptance
Inspection and acceptance of any and all deliverables under this contract will be accomplished by the contracting officer or a designated representative.

Section F, Deliveries or Performance.

*(F.1) FAR 52.212-13 Stop Work Order-Alternate I

 (F.2) Delivery of Reports.
			(i) All data shall be delivered in accordance with the delivery schedule shown on the Contract Data Requirements List, attachments, or as incorporated by reference.
			(ii) All reports and correspondence submitted under this contract shall include the contract number and project number and be forwarded prepaid.  A copy of the letters of transmittal shall be delivered to the Procuring Contracting Officer (PCO) and the Administrative Contracting Officer (ACO).  The addresses are set forth on the contract award cover page.  All other address(es) and code(s) for consignee(s) are as set forth in the contract or incorporated by reference.

*(F.3) FAR 52.247-55	F.O.B. Point for Delivery of Government-
											Furnished Property

Section G, Contract Administration Data.

*(G.1) Contractor Payment Address.  (To be filled in at time of contract award.  Applicable if the Contractor has specified a payment address other than the address shown on the cover page of the contract.)

Contract Payment Address:
		                      
		                      
		                      

*(G.2) Incremental Funding.  (Applicable to incrementally funded contracts.)  This contract is incrementally funded pursuant to the "Limitation of Funds clause, FAR 52.232-22.  Funds are hereby obligated in the amount of $           and it is estimated that they are sufficient for contract performance through           .  From time to time, additional funds will be allotted to the contract in accordance with FAR 52.232-22.

*(G.3) Request for Equal Opportunity Preaward Clearance of Subcontracts.  (Applicable to subcontracts over $1 million.)  To provide the Contracting Officer with adequate time to process the Contractor's request for preaward clearance of subcontracts as required by FAR 52.222-28, the prime contractor shall request preaward clearance through the Contracting Officer at least 30 calendar days before the proposed award date, unless the cognizant Department of Labor Compliance Office agrees to a shorter time.

*(G.4) Contracting Officer's Representative.  (To be filled in at time of contract award.)  The Contract Officer's

Representative for this contract is:
			                     
			                     
			                     

Section H, Special Contract Requirements.

 (H.1) Incorporation of Section K by Reference.  Pursuant to Federal Acquisition Regulation (FAR) 15.406-1(b), Section K of the solicitation is hereby incorporated by reference.
*(H.2) Rent-Free Use of Government Property.  The Contractor may use on a rest-free, noninterference basis, as necessary for the performance of this contract, the Government property accountable under contract(s)
          .  The Contractor is responsible for scheduling the use of all property covered by the above referenced contract(s) and the Government shall not be responsible for conflicts, delays, or disruptions to any work performed by the Contractor due to use of any or all such property under this contract or any other contracts under which use of such property is authorized.

*(H.3) Government-Furnished Property.  The Government will furnish to the Contractor for use in the performance of the contract on a rent-free basis the Government-owned property listed in an attachment to this contract, subject to the provisions of the Government Property Clause of the Contract Clauses.

 (H.4) Scientific/Technical Information.  If not already registered, the Contractor is encouraged to register for Defense Technical Information Center (DTIC) service by contacting the following:

		Defense Technical Information Center
		Attn:  Registration Section (DTIC-BCS)
		Bldg 5, Cameron Station
		Alexandria, VA 22304-6135
		(703) 274-6871

	To avoid duplication of effort and conserve scientific and technical resources, the Contractor is encouraged to search existing sources in DTIC to determine the current state of the art concepts, studies, etc.

 (H.8) List of Data to be Provided with Other Than Unlimited Rights (See 227.403-70(b) and 252.227-7013(k)).
With the exception of the technical data or computer software set out below, technical data and computer software to be delivered under this contract shall be furnished with unlimited rights as defined in Section I clause DFARS 252.227-7013.

		Items, Components,		Drawing/Document		 Government's
		Processes or					Number or Title	 Rights
		Computer Software

		                 			                		             
		                 			                		             
		                 			                		             
		                 			                		             

	Part II-Contract Clauses.

Section I, Contract Clauses.

		(1) Federal Acquisition Regulation clauses

 (I.1)			52.252-2			Clauses Incorporated by reference
 (I.2)			52.202-1			Definitions
 (I.3)			52.203-1			Officials not to Benefit
 (I.4)			52.203-3			Gratuities
 (I.5)			52.203-5			Covenant Against Contingent Fees
 (I.6)			52.203-7			Anti-Kickback Procedures
 (I.7)			52.203-10			Price of Fee Adjustment for Illegal
												  or Improper Activity (Except
												  educational institutions.)
 (I.8)			52.209-6			Protecting the Government's
												  Interest When Subcontracting with
												  Contractors Debarred, Suspended, or
												  Proposed for Debarment
 (I.9)			52.215-1			Examination or Records by
												  Comptroller General
 (I.10)		52.215-2			Audit-Negotiation
 (I.11)		52.215-2			Audit-Negotiation, Alternate II
									 			  (For educational institutions and
												  nonprofit organizations.)
 (I.12)		52.215-26			Integrity of Unit Prices
 (I.13)		52.215-33			Order of Precedence
 (I.14)		52.216-7			Allowable Cost and Payment
												  (Modified in accordance with 16.307
												  as applicable.)
 (I.15)		52.219-8			Utilization of Small Business
												 Concerns and Small Disadvantaged
												  Business Concerns
 (I.16)		52.219-13			Utilization of Women-Owned Small
												  Businesses
 (I.17)		52.220-3			Utilization of Labor Surplus Area
												  Concerns
 (I.18)		52.220-4			Labor Surplus Area Subcontracting
												  Program
 (I.19)		52.222-3			Convict Labor
 (I.20)		52.222-26			Equal Opportunity
 (I.21)		52.222-35			Affirmative Action for Special
												  Disabled and Vietnam Era Veterans
 (I.22)		52.222-36			Affirmative Action for Handicapped
												  Workers
 (I.23)		52.222-37			Employment Reports on Special
												  Disabled Veterans and Veterans of
												  the Vietnam Era
 (I.24)		52.223-6			Drug-Free Workplace
 (I.25)		52.225-11			Restrictions on Certain Foreign
												  Purchases
 (I.26)		52.227-1			Authorization and Consent-
												  Alternate I
 (I.27)		52.227-2			Notice and Assistance Regarding
												  Patent and Copyright Infringement
 (I.28)		52.228-7			Insurance-Liability to Third Persons
 (I.29)		52.232-9			Limitation on Withholding of
												  Payments      
 (I.30)		52.232-23			Assignment of Claims
 (I.31)		52.232-25			Prompt Payment
 (I.32)		52.232-28			Electronic Funds Transfer Payment Methods
 (I.33)		52.233-1			Disputes
 (I.34)		52.233-3			Protest After Award-Alternate I
 (I.35)		52.242-1			Notice of Intent to Disallow Costs
 (I.36)		52.242-13			Bankruptcy
 (I.37)		52.244-2			Subcontracts (Cost-Reimbursement
												  and Letter Contracts) Alternate I
 (I.38)		52.244-5			Competition in Subcontracting
 (I.39)		52.247-1			Commercial Bill of Lading Notations
 (I.40)		52.249-14			Excusable Delays
 (I.41)		52.253-1			Computer-Generated Forms
*(I.42)		52.209-9			Requirement for Certificate of
												  Procurement Integrity-Modification
*(I.43)		52.203-12			Limitation on Payments to Influence
												  Certain Federal Transactions
*(I.44)		52.204-2			Security Requirements
*(I.45)		52.204-2			Security Requirements-Alternate I
												  (For educational institutions.)
*(I.46)		52.215-22			Price Reduction for Defective cost
												  or Pricing Data
*(I.47)		52.215-23			Price Reduction for Defective Cost
												  or Pricing Data-Modifications
*(I.48)		52.215-24			Subcontractor Cost or Pricing Data
*(I.49)		52.215-25			Subcontractor Cost or Pricing Data-
												  Modifications
*(I.50)		52.215-27			Termination of Defined Benefit
												  Pension Plans (Except educational
												  institutions.)
*(I.51)		52.215-31			Waiver of Facilities Capital Cost
												  or Money (Except educational
												  institutions.) 
*(I.52)		52.215-39			Reversion or Adjustment of Plans
												  for Post-retirement Benefits Other
												  than Pension (PRB)
*(I.53)		52.216-8			Fixed Fee
*(I.54)		52.216-10			Incentive Fee
*(I.55)		52.216-11			Cost Contract-No Fee
*(I.56)		52.216-11			Cost Contract-No Fee-Alternate I
*(I.57)		52.216-12			Cost-Sharing	Contract-No Fee
*(I.58)		52.216-12			Cost-Sharing Contract-No Fee
												  -Alternate I
*(I.59)		52.216-15			Predetermined Indirect Cost Rates
*(I.60)		52.219-6			Notice of Total Small Business
												  Set-Aside
*(I.61)		52.219-6			Notice of Total Small Business
												  Set-Aside-Alternate I
*(I.63)		52.219-9			Small Business and Small
												  Disadvantaged Business
												  subcontracting Plan
*(I.64)		52.219-14			Limitations on Subcontracting
*(I.65)		52.219-16			Liquidated Damages-Small Business
												  Subcontracting Plan
*(I.66)		52.220-1			Preference of Labor Surplus Area
												  Concern
*(I.67)		52.222-1			Notice to the Government of Labor
												  Disputes
*(I.68)		52.222-2			Payment for Overtime Premiums
*(I.69)		52.222-28			Equal Opportunity Preaward
												  Clearance of Subcontracts
*(I.70)		52.223-2			Clean Air and Water
*(I.71)		52.223-3			Hazardous Material Identification
												  and Material Safety Data
*(I.72)		52.223-7			Notice of Radioactive Materials
												  (21 Days)
*(I.73)		52.226-1			Utilization of Indian Organizations
												  and Indian-Owned Economic
												  Enterprises
*(I.74)		52.227-10			Filing of Patent Applications-
												  Classified Subject Matter
*(I.75)		52.227-11			Patent Rights-Retention by the
												  Contractor (Short Form)
*(I.76)		52.227.12			Patent Rights-Retention by the
												  Contractor (Long Form)
*(I.77)		52.227-13			Patent Rights-Acquisition by the
												  Government
*(I.78)		52.228-7			Insurance-Liability to Third
												  Persons-Alternate I
*(I.79)		52.228-7			Insurance-Liability to Third
												  Persons-Alternate II
*(I.80)		52.229-8			Taxes-Foreign Cost-Reimbursement
												  Contracts
*(I.81)		52.229-10			State of New Mexico Gross Receipts
												  and Compensating Tax
*(I.82)		52.230-2			Cost Accounting Standards (Except
												  if exempted.)
*(I.83)		52.230-3			Disclosure and Consistency of Cost
												  Accounting Practices (Except if
												  Exempted.)
*(I.84)		52.230-5			Administration of Cost Accounting
												  Standards (Except educational
												  institutions.)
*(I.85)		52.232-17			Interest
*(I.86)		52.232-20			Limitation of Cost
*(I.87)		52.232-22			Limitation of Funds
*(I.88)		52.232-23			Assignment of Claims-Alternate I
*(I.89)		52.233-1			Disputes-Alternate I
*(I.90)		52.237-2			Protection of Government Buildings,
												  Equipment and Vegetation
*(I.91)		52.242-10			F.O.B. Origin - Government Bills of
												  Lading or Prepaid Postage
*(I.92)		52.242-11			F.O.B. Origin - Government Bills of  			
*(I.93)		52.242-12			Report of Shipment (RESHIP)
*(I.94)		52.243-2			Changes-Cost-Reimbursement-
												Alternate V
*(I.95)		52.243-6			Change Order Accounting
*(I.96)		52.243-7			Notification of Changes (30
												  Calendar Days)
*(I.97)		52.254-5			Government Property (Cost-
												 Reimbursement, Time-and-Material,
												 or Labor-Hour Contracts)
*(I.98)		52.254-5			Government Property (Cost-
												 Reimbursement, Time and Material,
 												or Labor-Hour Contracts-Alternate I
												(For educational institutions and 
												nonprofit organizations.)
*(I.99)		52.245-19			Government Property Furnished "As
												Is"
*(I.100)	52.246-23			Limitation of Liability
*(I.101)	52.246-24			Limitation of Liability-High Value
												  Items
*(I.102)	52.246-24			Limitation of Liability-High Value
												  Items-Alternate I
*(I.103)	52.246-25			Limitation of Liability-Services
*(I.104)	52.247-63		 	Preference for U.S.-Flag Air
												  Carriers
*(I.105)	52.247-66			Returnable Cylinder
*(I.106)	52.249-5		 	Termination for Convenience of the
												  Government (Educational and Other
												  Nonprofit Institutions)
*(I.107)	52.249-6			Termination (Cost-Reimbursement)
*(I.108)	52.251-1			Government Supply Sources

		(2) Defense Federal Acquisition Regulation Supplement clauses.

 (I.109)	252.201-7000	Contracting Officers Representative
 (I.110)	252.203-7001	Special Prohibition on Employment
 (I.112)	252.203-7003	Prohibition Against Retaliatory
												  Personnel Actions
 (I.113)	252.204-7003	Control of Government Personnel
												  Work Product
 (I.114)	252.209-7000	Acquisitions from Subcontractors
												  Subject to On-Site Inspection under
												  the Intermediate-Range Nuclear
												  Forces (INF) Treaty
 (I.115)	252.225-7012	Preference for Certain Domestic
												  Commodities
 (I.116)	252.225-7031	Secondary Arab Boycott of Israel
 (I.117)	252.227-7013	Rights in Technical Data and 
												  Computer Software
 (I.118)	252.227-7018	Restrictive Markings on Technical
												  Data
 (I.119)	252.227-7029	Identification of Technical Data
 (I.120)	252.227-7030	Technical Data-Withholding of
												  Payment
 (I.121)	252.227-7037	Validation of Restrictive Markings
												  on Technical Data
 (I.122)	252.231-7000	Supplemental Cost Principles
 (I.123)	252.232-7006	Reduction or Suspension of Contract
												  Payments Upon	Finding of Fraud
 (I.124)	252.242-7000	Postaward Conference
 (I.125)	252.242-7001	Certification of Indirect Costs
 (I.126)	252.247-7023	Transportation of Supplies by Sea
*(I.127)	252.203-7000	Statutory Prohibition on
												  Compensation to Former Department
												  of Defense Employees
*(I.128)	252.203-7002	Display of DoD Hotline Poster
*(I.129)	252.204-7000	Disclosure of Information
*(I.130)	252.204-7002	Payment for Subline Items Not
												  Separately Priced
*(I.131)	252.205-7000	Provision of Information to
												  Cooperative Agreement Holders
*(I.132)	252.215-7000	Pricing Adjustments
*(I.133)	252.215-7002	Cost Estimating System Requirements
*(I.134)	252.219-7001	Notice of Partial Small Business
												  Set-Aside with Preferential
											    Consideration for Small
												  Disadvantaged Business Concerns
*(I.135)	252.219-7002	Notice of Small Disadvantaged
												  Business Set-Aside
*(I.136)	252.219-7003	Small Business and Small
												  Disadvantaged Business
												  Subcontracting Plan (DoD Contracts)
*(I.137)	252.219-7004	Small Business and Small
												  Disadvantaged Business
												  Subcontracting Plan (Test Program)
*(I.138)	252.219-7005	Incentive for Subcontracting with
												  Small Businesses, Small
												  Disadvantaged Businesses,
												  Historically Black Colleges and
												  Universities and Minority
												  Institutions
												  (. . .To be negotiated     %.)
*(I.139)	252.219-7005	Incentive for Subcontracting with
												  Small Businesses, Small 
												  Disadvantaged Businesses,
												  Historically BLack Colleges and
												  Universities and Minority
												  Institutions-ALTERNATE I
												  (. . .To be negotiated     %.)
*(I.140)	252.219-7006	Notice of Evaluation Preference for
												  Small Disadvantage Business Concerns
*(I.141)	252.223-7001	Hazard Warning Labels
*(I.142)	252.223-7002	Safety Precautions for Ammunitions
												  and Explosives
*(I.143)	252.223-7003	Change in Place of Performance-
												  Ammunition and Explosives
*(I.144)	252.223-7004	Drug-Free Work Force
*(I.145)	252.225-7014	Preference for Domestic Speciality Metals
*(I.146)	252.225-7016	Restriction on Acquisition of
												  Antifriction Bearings
*(I.147)	252.225-7025	Foreign Source Restrictions
*(I.148)	252.225-7026	Reporting of Contract Performance
											  Outside the United States
*(I.149)	252.225-7032	Waiver of United Kingdom Levies
*(I.150)	252.226-7000	Notice of Historically Black
												 College or University and Minority
												 Institution Set-Aside
*(I.151)	252.227-7026	Deferred Delivery of Technical Data
												  of Computer Software
*(I.152)	252.227-7027	Deferred Ordering of Technical Data
												  or Computer Software
*(I.153)	252.227-7031	Data Requirements

*(I.154)	252.227-7034	Patent-Subcontracts
*(I.155)	252.227-7036	Certification of Technical Data 
												  Conformity
*(I.156)	252.227-7039	Patents-Reporting of Subject Inventions
*(I.157)	252.231-7001	Penalties for Unallowable Costs
*(I.158)	252.232-7000	Advance Payment Pool (For
												  educational institutions and
												  nonprofit organizations)
*(I.159)	252.233-7000	Certification of Claims and
												  Requests for Adjustment or Relief
*(I.160)	252.235-7002	Animal Welfare
*(I.161)	252.242-7002	Submission of Commercial Freight
												  Bills for Audit
*(I.162)	252.242-7003	Applications for U.S. Government
												  Shipping Documentation/Instructions
*(I.163)	252.242-7004	Material Management and Accounting
												  System
*(I.164)	252.245-7001	Reports of Government Property
*(I.165)	252.247-7024	Notification of Transportation of
												  Supplies by Sea
*(I.166)	252.249-7001	Notification of Substantial Impact
												  on Employment
*(I.167)	252.251-7000	Ordering From Government Supply
												  Sources

	Part III-List of Documents, Exhibits, and Other Attachments.

Section J, List of Attachments.
 
	Use attachments and exhibits to inform the contractor of local information such as:

		(1) Procedures for laboratory access;

		(2) Laboratory hours of operation;

		(3) Special procedures related to unique laboratory working environments which are not covered by FAR/DFARS; and

		(4) Base support or government property information.

*(J.1) List of attachments:

*(J.2) List of Exhibits:

	Part IV-Representations and Instructions.

Section K, Representations, Certifications and Other Statements of Offerors or Quoters.

	The following solicitation provisions require representations, certifications or the submission of other information by offerors.  They are mandatory, and are included by reference.  Full text copies of these provisions are available from the Contracting Officer and must be completed and certified before contract award.
		(1) Federal Acquisition Regulation solicitation provisions.

 (K.1)		52.203-4			Contingent Fee Representation and
												  Agreement 
 (K.2)		52.203-8			Requirement for Certificate of
												  Procurement Integrity Alternate I
 (K.3)		52.203-11			Certification and Disclosure
												  Regarding Payments to Influence
												  Certain Federal Transactions
 (K.4)		52.204-3			Taxpayer Identification
 (K.5)		52.209-5			Certification Regarding Debarment,
												  Suspension, Proposed Debarment, and
												  Other Responsibility Matters
 (K.6)		52.215-6			Type of Business Organization
 (K.7)		52.215-11			Authorized Negotiators
 (K.8)		52.215-20			Place of Performance
 (K.9)		52.215-30			Facilities Capital Cost of Money
												  (Except educational institutions.)
 (K.10)		52.219-1			Small Business Concern
												  Representation
 (K.11)		52.219-3			Women-Owned Small Business
												  Representation
 (K.12)		52.219-22			SIC Code and Small Business Size
												  Standard
 (K.13)		52.222-21			Certification of Nonsegregated
												  Facilities
 (K.14)		52.222-22			Previous Contracts and Compliance
											    Reports
 (K.15)		52.222-25			Affirmative Action Compliance
 (K.16)		52.223-1			Clean Air and Water Certification
 (K.17)		52.223-5			Certification Regarding a Drug-Free
											    Workplace
 (K.18)		52.227-6			Royalty Information
 (K.19)		52.230-1			Cost Accounting Standards Notices
											    and Certifications

		(2) Defense Federal Acquisition Regulation Supplement solicitation provisions.

 (K.20)		252.209-7001	Disclosure of Ownership or Control
												  by a Foreign Government that
												  Supports Terrorism
 (K.21)		252.209-7002	Disclosure of Ownership or Control
												  by a Foreign Government
 (K.22)		252.219-7000	Small Disadvantaged Business
												  Concern Representation (DoD
												  Contracts)
 (K.23)		252.219-7009	Certificate of Competency
*(K.24)		252.226-7000	Notice of Historically Black
												  College or University and Minority 								  Institution Set-Aside
 (K.25)		252.226-7001	Historically Black College or
												  University and Minority Institution
												  Certification
 (K.26)		252.227-7028  Requirement for Technical Data
												  Representation
 (K.27)		252.247-7022	Representation of Extent of
												  Transportation by Sea

Section L.  Instructions, Conditions, and Notices to Offerors or Quoters.

		(1) Federal Acquisition Regulation solicitation provisions.

 (L.1)		52.252-1			Solicitation Provisions
												  Incorporated by Reference
 (L.2)		52.209-7			Organizational Conflict of Interest
												  Certificate Marketing Consultants
 (L.3)		52.210-2			Availability of Specifications and
												  Standards Listed in the DoD Index
												  of Specifications and Standards
												  (DODISS) and Descriptions Listed in
												  DoD 5010.12-L (Deviation)
 (L.4)		52.215-5			Solicitation Definitions
 (L.5)		52.215-7			Unnecessarily Elaborate Proposals
												  or Quotations
 (L.6)		52.215-8			Amendments to Solicitations
 (L.7)		52.215-9			Submission of Offers
 (L.8)		52.215-10			Late Submissions, Modifications,
												  and Withdrawals of Proposals
 (L.9)		52.215-12			Restriction on Disclosure and Use
												  of Data
 (L.10)		52.215-13			Preparation of Offers
 (L.11)		52.215-14			Explanation to Prospective Offerors
 (L.12)		52.215-15			Failure to Submit Offer
 (L.13)		52.215-16			Contract Award
*(l.14)		52.215-16			Contract Award Alternate III
 (L.15)		52.216-1			Type of Contract (See
												  235.7006(c)(B.1))
 (L.16)		52.222-24			Preaward On-Site Equal Opportunity
												  Compliance Review
 (L.17)		52.228-6			Insurance-Immunity from Tort
												  Liability
 (L.18)		52.233-2			Service of Protest (See
												  235.7006(c)(A.1)(xvii))
 (L.19)		52.237-1			Site Visit
 (L.20)		52.252-5			Authorized Deviations in Provisions

		(2) Defense Federal Acquisition Regulation Supplement solicitation provisions.

 (L.21)		252.204-7001	Commercial and Government Entity
												  (CAGE) Code Reporting
 (L.22)		252.227-7019	Identification of Restricted Rights
												  Computer Software

		(3) Other Instructions, Conditions, and Notices to Offerors.

 (L.23)		Government-Furnished Property.
No material, labor, or facilities will be furnished by the Government unless provided for in the solicitation.
	
 (L.24)	Proposal Preparation and Submission Instructions.
			(i) Page limitation, format.
				(A) A proposal shall be prepared in separate volumes with the page limit and number of copies specified below.  The table of contents and tabs are exempt from the page limits.  No cross-referencing between volumes for essential information is permitted except where specifically set forth herein.  The following volumes of material will be submitted:

		Title				Copies			Maximum Page Limits
		Cost				As specified				50*
								in solicitation
								summary
		Technical		As specified				100
								in solicitation
								summary

	*The 50-page cost proposal is a goal not a limit.  The Contractor may use additional pages if necessary to comply with public law.

				(B) Any technical proposal pages submitted which exceed the page limitations set forth will not be read or evaluated.  Proposal		
pages failing to meet paragraph D format will not be read or evaluated.
				(C) No program cost data or cross-reference to the cost proposal will be included in any other volume.
				(D) Format of the above proposal volumes shall be as follows:
					(1)	Proposals will be prepared on 8 1/2 x 11 inch paper except for foldouts used for charts, tables, or diagrams, which may not exceed 11 x 17 inches.  Foldouts will not be used for text.  Pages will have a one inch margin.

					(2)	A page is defined as one face of a sheet of paper containing information.  Two pages may be printed on one sheet.
					(3)	Type size will be no smaller than 10 point character height (vertical size) and no more than an average of 12 characters per inch.  Use of type-setting techniques to reduce type size below 10 points or to increase characters beyond 12 per inch is not permitted.  Such techniques are construed as a deliberate attempt to circumvent the intent of page limitations set forth above.
			  	(4)	Proposal must lie flat when open, elaborate binding is not desirable.
					(5)	No models, mockups or video types will be accepted.
					(6)	Technical proposals will be prepared in the same sequence as the statement of work.
			(ii) Content.
			All proposals must be complete and respond directly to the requirements

of the solicitation.  The factors and subfactors listed in Section M of the solicitation shall be addressed.  Cost and supporting data shall be included only in the cost volume.  All other information shall be included in the technical volume.

Section M, Evaluation Factors for Award.

	Use of the standard evaluation factors is preferred.  If the standard evaluation factors are modified in any way, the modifications must be clearly expressed so that the result is unambiguous.  Additions to and deletions from the contents of this Section M must be clearly annotated in the solicitation summary (see 235.7006-1(a)(A.1)(vii).)

*(M.1) FAR 52.217-5  Evaluation of Options
(Applicable if the solicitation indicates that options are anticipated in the resulting contract.  When this provision is included, evaluation criteria for options shall be included in Section M.)

*(M.2) Proposal Evaluation Procedures and Basis for Award.  Proposals will be evaluated and award made as follows:

		(i) Basis for award.
		The award decision will be based on evaluation of all factors and subfactors set forth in this solicitation.  The Government may select the source whose proposal offers the greatest value to the Government in terms of technical, cost or price, and other factors set forth in the solicitation.  The source selected may or may not have the lowest proposed total costs.

		(ii) Evaluation factors.
		Proposals will be evaluated in accordance with the following factors.  The technical factor is more important than the cost factor.  The technical subfactors are in descending order of importance unless otherwise stated in the solicitation.  The cost subfactors are of equal weight.

				(A) Technical.

					(1) Technical approach.  The soundness of the offeror's technical approach, including the offeror's demonstrated understanding of the technical requirement.

					(2) Qualification.  The experience and qualifications of the proposed personnel relevant to the proposed task.  The quantity and quality of the offeror's corporate experience relevant to the proposed task.

					(3) Management.  The degree to which the offeror demonstrates the ability to effectively and efficiently manage and administer the program to a successful conclusion. 

					(4) Facilities.  The degree to which the proposed facilities enable accomplishment of the proposed effort.

				(B) Cost.

					(1) Reasonableness.  Proposed estimated cost and fee (if any).

					(2) Completeness.  The adequacy of the identification, estimation and support of all relevant costs.

					(3) Realism.  The consistency of the cost proposal with the technical effort proposed, the organizational structure, method of operations and cost accounting practices.

	Streamlined Research and Development Contracting Procedures-Test

	Approved Test Activities

Army

Army Materiel Command contracting offices when contracting for Army Research Laboratory, Missile Research & Development Center, Medical Research & Development Command.

Army Corps of Engineers contacting offices when contracting for Waterways Experiment Station.


Navy

Naval Research Laboratory contracting office.

Naval Surface Warfare Center contracting offices when contracting for the Carderock, Crane, Dahlgren, Indian Head, and Port Hueneme Naval Surface Warfare Center divisions.


Air Force

Air Force Materiel Command contacting offices, when contracting for Armstrong, Phillips, Rome, and Wright Laboratories.


Defense Agencies

Armed Forces Radiobiology Research Institute contacting office.

Defense Nuclear Agency contracting office.




	Attachment 2

	Blank Page

	Streamlined Research and Development Contracting Procedures-Test
	Test Oversight Committee

Office of the Secretary of Defense

							Mrs. Linda W. Neilson
							Defense Acquisition Regulations Directorate
							Office of Director of Defense Procurement
							Phone:  (703)604-5929; DSN 227-5929
							FAX:		(703)604-5971; DSN 227-5971

							Mr. Jack Paulson
							Lab Management Office
							Office of Director Research & Engineering
							Phone:  (703)697-9215; DSN 227-9215
							FAX:		(703)693-7042; DSN 227-7042

Army
							Mr. Chuck Boylan
							Army Research Laboratory, Fort Monmouth
							Phone:  (908)544-3471; DSN 995-3471
							FAX:		(908)532-5188; FAX 986-3767

Navy
							Ms. Mary Ann Carpenter
							Naval Research Laboratory
							Phone:  (202)767-0066; DSN 297-0066
							FAX:		 (202)767-5896; DSN 297-5896

Air Force
							Lt Col Bill Borchardt
							Air Force Materiel Command
							Wright-Patterson Air Force Base
							Phone:  (513)257-8934; DSN 787-8934
							FAX:		 (513)476-1431; DSN 986-1431

Armed Forces Radiobiology Research Institute

							Major Vikki Stocker
							Logistics and Engineering
							Phone:  (301)295-0454; DSN 295-0454
							FAX:		(301)295-1863; DSN 295-1863

Defense Nuclear Agency

							Mr. Tom McCabe
							Acquisition Management Office
							Phone:  (703)325-6961; DSN 221-6961
							FAX:		(703)325-9291; DSN 221-9291


	Attachment 2

	Blank Page]
AFAC 92-43	October 20, 1994	B-6

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	October 18, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DFARS Case:  92-D006
	D.L. 94-018

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:  Predetermined Indirect Cost Rates

	On July 26, 1993, the Office of Management and Budget (OMB) revised its Circular A-21, Cost Principles for Educational Insitutions.  The revised circular provides that rates for indirect costs may be predetermined for a period of up to four years where cost experience and other pertinent facts are sufficient to assess the probable level of indirect costs during subsequent accounting periods.

	We plan to implement this revision in the Federal Acquisition Regulation (FAR).  In the interim, we have revised Subparts 216.3, 242.7, and 252.2 of the Defense FAR Supplement (DFARS) to allow predetermined indirect cost rates for contracts with educational institutions to be applicable for a period of up to four years.

	The attached final DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director of Defense Procurement

Attachment

cc:  DSMC, Ft. Belvoir  

	Blank Page

	Blank Page
B.6-1	October 20, 1994	AFAC 92-43


SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS

* * * * *

[{216.307}

	(i) Use the clause at FAR 52.216-15, Predetermined Indirect Cost Rates, with 252.216-7002, Alternate A, in solicitations and contracts when a cost-reimbursement research and development contract with an educational institution (see FAR 42.705-3(b)) is contemplated and predetermined indirect cost rates are to be used.]

* * * * *
AFAC 92-43	October 20, 1994	B-6.2

SUBPART 242.7-INDIRECT COST RATES

* * * * *

[{242.705-3 Educational Institutions.

	(b) Predetermined final indirect cost rates.
		(4)(i) Predetermined indirect cost rate proposals may cover a period of two to four years when the cognizant Contracting Officer determines that the educational institution's cost experience and other pertinent facts available are sufficient to enable the parties to reach an informed judgement on the probable levels of indirect costs and allocation base costs for the applicable future accounting periods.  Predetermined rates covering two to four year periods are expected to be the norm in those situations.

		(6) Predetermined indirect cost rates may be established to cover up to four years.]  

* * * * *

	Blank Page
AFAC 92-43	October 20, 1994	B-6.3


SUBPART 252.2-TESTS OF PROVISIONS AND CLAUSES

* * * * *
 
[{252.216-7002} Alternate

ALTERNATE A (OCT 1994)
As prescribed in 216.307(i), substitute the following paragraphs (b) and (g) for paragraphs (b) and (g) of the clause at FAR 52.216-15, Predetermined Indirect Cost Rates:

	(b)	Not later than 90 days after the expiration of the Contractor's fiscal year (or other period specified in the Schedule), the Contractor shall submit to the cognizant Contracting Officer under Subpart 42.7 of the Federal Acquisition Regulation (FAR) and, if required by agency procedures, to the cognizant Government audit activity, proposed predetermined indirect cost rates and supporting cost data.  The proposed rate shall be based on the Contractor's actual cost experience during that fiscal year (or other period specified in the Schedule).  Negotiations of predetermined indirect cost rates shall begin as soon as practical after receipt of the contractor's proposal.
	(g)	Allowable indirect costs for the period from the beginning of performance until the end of the Contractor's fiscal year (or other period specified in the Schedule) shall be obtained using the predetermined indirect cost rates and the bases shown in the Schedule.]
AFAC 92-43	October 20, 1994	B-7

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	September 29, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DFARS Case:  92-D005
	D.L. 94-016

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:  Best Value - Stevedoring

	We have amended Subpart 247.2 of the Defense Federal Acquisition Regulation Supplement (DFARS) to permit contracting officers to consider factors other than cost or price when evaluating offers for stevedoring services.  This will permit contracts to be awarded to sources offering the best overall value to the Government.

	The attached interim DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.

						/s/
						Eleanor R. Spector
						Director of Defense Procurement

Attachment

cc:  DSMC, Ft. Belvoir  

	Blank Page
AFAC 92-43	October 20, 1994	 B-7.1

SUBPART  247.2--CONTRACTS FOR TRANSPORTATION OR FOR 
	TRANSPORTATION-RELATED SERVICES

* * * * *

247.270	Stevedoring contracts. 

* * * * *

247.270-5	Evaluation of bids and proposals. 	 

[At a minimum, require that offers include-]

	(a)	Tonnage or commodity rates which apply to the bulk of the cargo worked under normal conditions; 	

	(b)	Labor-hour rates which apply to services not covered by commodity rates, or to work performed under hardship conditions; and 	 

	(c)	Rates for equipment rental. 

{247.270-6}	Award of contract. 	 

Make the award to the contractor [submitting the offer most advantageous to the Government, considereing cost or price and other factores specified elsewhere in the solicitation.  Evaluation will include, but is not limited to]-- 	

	(a)	Total estimated cost of tonnage to be moved at commodity rates; 	 	(b)	Estimated cost at labor-hour rates; and 	

	(c)	Cost of equipment rental. 

* * * * *


	Blank Page
AFAC 92-43	October 20, 1994	D.1

	OFFICE OF THE UNDER SECRETARY OF DEFENSE

	3000 DEFENSE PENTAGON
	WASHINGTON DC  20301-3000

ACQUISITION AND	Oct 07, 1994
  TECHNOLOGY

    DP (DAR)
	In reply refer to
	DAR Tracking Number:  94-O0007

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
			DEPUTY FOR ACQUISITION POLICY, INTEGRITY, AND
			  ACCOUNTABILITY, ASN(RD&A)/API&A
			DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
			  (CONTRACTING), SAF/AQC
			DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
			DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS 	    			  AGENCY

SUBJECT:  Extension to Class Deviation - Special Tooling

	I extend the authority for all military departments and defense agencies to use the April 1984 edition of the Special Tooling clause and its related prescriptive language (attached) in lieu of the clause at 52.245-17 and its prescriptive language at 45.306-5.  I also waive that portion of the Government Property (Fixed-Price Contracts) clause at 52.245-2 that states that special tooling is subject to title provisions in the Special Tooling clause.  This waiver is necessary because the 1984 edition of the Special Tooling clause does not contain title provisions.

	I am extending the class deviation for a one-year period ending October 16, 1995, or until the FAR is revised, whichever event occurs first.

 						/s/
						Eleanor R. Spector
						Director of Defense Procurement

Attachments

	Blank Page