1215.604 Agency points of contact.
1215.606 Agency procedures.

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

Subpart 1215.4--Contract Pricing

1215.404  Proposal analysis.

1215.404-470  Payment of profit or fee.

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

Subpart 1215.6--Unsolicited Proposals

1215.603  General.

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

1215.604  Agency points of contact.

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

1215.606  Agency procedures.

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

PART 1216--TYPES OF CONTRACTS

Subpart 1216.2--Fixed-Price Contracts
Sec.
1216.203 Fixed-price contracts with economic price adjustment.
1216.203-4 Contract clauses.
1216.203-470 Solicitation provision.
Subpart 1216.4--Incentive Contracts

1216.406-70  DOT contract clauses.

Subpart 1216.5--Indefinite-Delivery Contracts

1216.505  Ordering.

Subpart 1216.6--Time-and-Materials, Labor-Hour, and Letter Contracts
1216.603 Letter contracts.
1216.603-4 Contract clauses.

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

Subpart 1216.2--Fixed-Price Contracts

1216.203  Fixed-price contracts with economic price adjustment.

1216.203-4  Contract clauses.

1216.203-470  Solicitation provision.

    The contracting officer shall insert the provision at 1252.216-70,
Evaluation of

Offers Subject to an Economic Price Adjustment Clause, in solicitations
containing an economic price adjustment clause.

Subpart 1216.4--Incentive Contracts

1216.406-70  DOT contract clauses.

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

Subpart 1216.5--Indefinite-Delivery Contracts

1216.505  Ordering.

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

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

1216.603  Letter contracts.

1216.603-4  Contract clauses.

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

PART 1217--SPECIAL CONTRACTING METHODS

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

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

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

1217.7000  Definition.

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

1217.7001  Clauses.

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

Subchapter D--Socioeconomic Programs

PART 1219--SMALL BUSINESS PROGRAMS

Subpart 1219.2--Policies
Sec.
1219.201 General policy.
1219.201-70 Procurement goals for small business.
1219.202 Specific policies.
1219.202-70 Procurement Forecast.
Subpart 1219.4--Cooperation With the Small Business Administration
1219.401 General.
Subpart 1219.5--Set-Asides for Small Business
1219.501 General.
1219.502-8 Rejecting Small Business Administration recommendations.
1219.502-9 Withdrawing or modifying small business set-asides.
Subpart 1219.7--The Small Business Subcontracting Program
1219.705 Responsibilities of the contracting officer under the
subcontracting assistance program.
1219.705-6 Postaward responsibilities of the contracting officer.
Subpart 1219.8--Contracting With The Small Business Administration (the
8(a) Program)
1219.800 General.
1219.815 Release for non-8(a) procurement.
Subpart 1219.70--DOT Mentor-Prot[eacute]g[eacute] Program
1219.7000 General.

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

Subpart 1219.2--Policies

1219.201  General policy.

    (c) The Director, Office of Small and Disadvantaged Business
Utilization (OSDBU) shall be a member of the Senior Executive Service
and appointed by the Secretary of Transportation. (15 U.S.C. 637, 644,
and 657)

    (d) The responsible HCA for each OA shall appoint a Small Business
Specialist (SBS). The SBS will assist the OSDBU Director in carrying
out the functions and duties prescribed in FAR 19.201(d). A list of DOT
SBS is provided at OSDBU's website at https://www.transportation.gov/osdbu/procurement-assistance/talk-dot-small-business-specialist.

1219.201-70  Procurement goals for small business.

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

1219.202  Specific policies.

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

1219.202-70  Procurement Forecast.

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

Subpart 1219.4--Cooperation With the Small Business Administration

1219.401  General.

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

Subpart 1219.5--Set-Asides for Small Business

1219.501  General.

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

1219.502-8  Rejecting Small Business Administration recommendations.

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

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

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

Subpart 1219.7--The Small Business Subcontracting Program

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

1219.705-6  Postaward responsibilities of the contracting officer.

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

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

1219.800  General.

    (e) The Small Business Administration (SBA) and Department of
Transportation (DOT) have entered into a Partnership Agreement (PA)
delegating SBA's contract execution and administrative functions to
DOT. Contracting officers shall follow the alternate procedures in this
subpart, as applicable, to award 8(a) contracts under the PA. (See
https://www.transportation.gov/sites/dot.dev/files/docs/Department%20of%20Transportation_Partnership%20Agreement.pdf.)
    (1) The SBA delegates only the authority to sign contracts on its
behalf. Consistent with the provisions of the PA, the SBA remains the
prime contractor on all 8(a) contracts, continues to determine
eligibility of concerns for contract award, and retains appeal rights
under FAR 19.810.
    (2) The PA sets forth the delegation of authority and establishes
the basic procedures for expediting the award of 8(a) contract
requirements as reflected in this subpart.
    (3) Contracts awarded under the PA may be awarded directly to the
8(a) participant on either a sole source or competitive basis. An SBA
signature on the contract is not required. See FAR 19.811-3 for
contract clauses to use.

1219.815  Release for non-8(a) procurement.

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

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

1219.7000  General.

    (a) The Small Business Administration provides general oversight to
Federal mentor-prot[eacute]g[eacute] programs. However, DOT has its own
program tailored to assist small business concerns in the
transportation industry to enhance their capability to compete for
Federal procurement opportunities. The program is administered by the

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

PART 1222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Subpart 1222.1--Basic Labor Policies
Sec.
1222.101 Labor relations.
1222.101-70 Admittance of union representatives to DOT
installations.
1222.101-7 1 Contract clauses.
Subpart 1222.8--Equal Employment Opportunity
1222.808 Complaints.
1222.810-70 Contract clause.

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

Subpart 1222.1--Basic Labor Policies

1222.101  Labor relations.

1222.101-70  Admittance of union representatives to DOT installations.

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

1222.101-71  Contract clauses.

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

Subpart 1222.8--Equal Employment Opportunity

1222.808  Complaints.

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

1222.810-70  Contract clause.

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

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

Subpart 1223.3--Hazardous Material Identification and Material Safety
Data
Sec.
1223.303 Contract clause.
Subpart 1223.70--Safety Requirements for Selected DOT Contracts
1223.7000 Contract clauses.

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

Subpart 1223.3--Hazardous Material Identification and Material
Safety Data

1223.303  Contract clause.

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

Subpart 1223.70--Safety Requirements for Selected DOT Contracts

1223.7000  Contract clauses.

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

PART 1224--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

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

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

Subpart 1224.1--Protection of Individual Privacy

1224.102-70  General.

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

1224.103  Procedures.

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

Subpart 1224.2--Freedom of Information Act

1224.203  Policy.

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

Subchapter E--General Contracting Requirements

PART 1227--PATENTS, DATA, AND COPYRIGHTS

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

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

Subpart 1227.3--Patent Rights Under Government Contracts

1227.304  Procedures.

1227.304-4  Appeals.

    (b) Contractors may appeal agency actions listed at FAR 27.304-
4(a)(1), (3), and (4) to the cognizant Head of the Contracting Activity
(HCA). Contracting officers shall coordinate actions under this section
with the legal counsel of the responsible office. The following
procedures apply:
    (1) Actions must be appealed within 30 days of receipt of the
written statement issued by DOT required by FAR 27.304-4(a). The
contractor must present all pertinent arguments in the appeal along
with documentary evidence, if any.
    (2) The HCA shall issue a determination within 45 days from the
date the contractor's appeal is received.
    (c) Contractor appeal of decisions rendered under FAR 27.304-
4(a)(2) are subject to the following requirements:
    (1) Actions must be appealed within 30 days of receipt of the
written statement required by FAR 27.304-4(a). The contractor must
present all pertinent arguments in the appeal along with documentary
evidence, if any.
    (2) The HCA may hold an informal hearing if deemed appropriate or
at the request of the contractor. The informal hearing shall be held
after all fact-finding is completed.
    (i) If a hearing is held, DOT shall provide for a transcribed
record of the hearing unless transcription is waived as provided for in
paragraph (c)(2)(ii) of this section. A copy of the transcript shall be
available to the contractor at cost.
    (ii) Transcription of the hearing may be waived by agreement of the
parties.
    (3) The HCA shall designate an impartial fact-finding official. The
official conducting the fact-finding shall prepare findings of fact and
transmit them to the HCA promptly after the conclusion of the fact-
finding proceeding along with a recommended determination.
    (i) A copy of the findings of fact shall be sent to the contractor
(assignee or exclusive licensee) by mail, to the last known street
address, the last known facsimile number, or the last known email
address and to the contractor's identified counsel. The contractor
(assignee or exclusive licensee) and agency representatives will be
given 30 days to submit written arguments to the HCA; and, upon request
by the contractor, oral arguments will be held before the HCA as part
of an informal hearing. The HCA will make the final determination as to
whether the initial agency action was appropriate under the relevant
laws and procedures (see 1227.304-4(c)).
    (ii) Any portion of the informal hearing that involves testimony or
evidence shall be closed to the public. Agencies shall not disclose any
such information obtained during the appeal to persons outside the
Government except when such release is authorized by the contractor
(assignee or licensee).
    (4) The HCA's final determination shall be based on the findings of
facts, together with any other information and written or oral
arguments submitted by the contractor (assignee or exclusive licensee)
and agency representatives, and any other information in the
administrative record. The HCA may reject only those facts that have
been found clearly erroneous and must explicitly state the rejection
and the basis for the contrary finding. The HCA shall provide the
contractor (assignee or exclusive licensee) a written determination by
certified or registered mail no later than 90 days after fact-finding
is completed or no later than 90 days after oral arguments, whichever
is later.

1227.305  Administration of patent rights clauses.

1227.305-4  Protection of invention disclosures.

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

PART 1228--BONDS AND INSURANCE

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

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

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

Subpart 1228.1--Bonds and Other Financial Protections

1228.106  Administration.

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

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

1228.106-6  Furnishing information.

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

1228.106-70  Execution and administration of bonds.

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

1228.106-71  Performance and payment bonds for certain contracts.

1228.106-7100  Waiver.

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

1228.106-7101  Exception.

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

Subpart 1228.3--Insurance

1228.306  Insurance under fixed-price contracts.

1228.306-70  Contracts for lease of aircraft.

    (a) The contracting officer shall insert the clauses at 1252.228-
70, Loss of or Damage to Leased Aircraft; 1252.228-71, Fair Market
Value of Aircraft; and 1252.228-72, Risk and Indemnities, unless
otherwise indicated by the specific instructions for their use, in any
contract for the lease of aircraft (including aircraft used in out-
service flight training), except in the following circumstances--
    (1) When the hourly rental rate does not exceed $250 and the total
rental cost for any single transaction is not in excess of $2,500;
    (2) When the cost of hull insurance does not exceed 10 percent of
the contract rate; or
    (3) When the lessor's insurer does not grant a credit for uninsured
hours, thereby preventing the lessor from granting the same to the
Government.
    (b) As codified, 49 U.S.C. 44112, as amended, provides that an
aircraft lessor under a lease of 30 days or more is not liable for
injury or death of persons, or damage or loss of property, unless the
aircraft is in the actual possession or control of the lessor and the
damage occurs because of--
    (1) The aircraft, engine, or propeller; or
    (2) The flight of, or an object falling from, the aircraft, engine,
or propeller.
    (c) On short-term or intermittent-use leases, however, the owner
may be liable for damage caused by operation of the aircraft. It is
usual for the aircraft owner to retain insurance covering this
liability during the term of such lease. Such insurance can, often for
little or no increase in premium, be made to cover the Government's
exposure to liability as well. To take advantage of this coverage, the
Risks and Indemnities clause at 1252.228-72, prescribed in paragraph
(d) of this section, shall be used.
    (d) The contracting officer shall insert the clause at 1252.228-72,
Risk and Indemnities, in any contract for out-service flight training
or for the lease of aircraft when the Government will have exclusive
use of the aircraft for a period of less than thirty days.
    (e) During the performance of a contract for out-service flight
training for DOT, whether the instruction to DOT personnel is in
leased, contractor-provided, or Government-provided aircraft,
contractor personnel shall always, during the entirety of the course of
training and operation of the aircraft, remain in command of the
aircraft. At no time shall Government personnel or other personnel be
permitted to take command of the aircraft. The contracting officer
shall insert the clause at 1252.228-73, Command of Aircraft, in any
solicitation and contract for out-service flight training, whether
performed utilizing DOT-leased aircraft, contractor-provided aircraft,
or Government-provided aircraft.

1228.307-1  Group insurance plans.

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

1228.311-1  Contract clause.

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

PART 1231--CONTRACT COST PRINCIPLES AND PROCEDURES

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

1231.205-3270 Precontract costs--incurrence of costs.

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

Subpart 1231.2--Contracts With Commercial Organizations

1231.205  Selected costs.

1231.205-3270  Precontract costs--incurrence of costs.

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

PART 1232--CONTRACT FINANCING

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

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

Subpart 1232.7--Contract Funding

1232.770  Incremental funding during a Continuing Resolution.

1232.770-1  Scope of section.

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

1232.770-2  Definition.

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

1232.770-3  General.

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

1232.770-4  Policy.

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

1232.770-5  Limitations.

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

1232.770-6  Procedures.

    (a) An incrementally funded fixed-price, time-and-materials, or
labor-hour contract shall be fully funded once funds are available.
    (b) The contracting officer shall ensure that sufficient funds are
allotted to the contract to cover the total amount payable to the
contractor in the event of termination for convenience by the
Government.
    (c) Upon receipt of the contractor's notice under paragraph (c) of
the clause at 1252.232-71, Limitation of Government's Obligation, the
contracting officer shall promptly provide written notice to the
contractor that the Government is--
    (1) Obligating additional funds for continued performance and
increasing the Government's limitation of obligation in a specified
amount;
    (2) Obligating the full amount of funds needed;
    (3) Terminating for convenience, as applicable, the affected line
items or contract; or
    (4) Considering whether to allot additional funds; and
    (i) The contractor is entitled by the contract terms to stop work
when the Government's limitation of obligation is reached; and
    (ii) Any costs expended beyond the Government's limitation of
obligation are at the contractor's risk.
    (d) Upon learning that the contract will receive no further funds
by the date provided in the notice under paragraph (c) of the clause at
1252.232-71, Limitation of Government's Obligation, the contracting
officer shall promptly give the contractor written notice of the
Government's decision and terminate the affected line items or
contract, as applicable, for the convenience of the Government.

1232.770-7  Clause.

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

Subpart 1232.9--Prompt Payment

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

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

Figure 1 to 1232.905-70

Instructions for Completing the SF 1034

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

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

Figure 2 to 1232.905-70

Instructions for Completing the SF 1035

    The SF 1035, Public Voucher for Purchases and Services Other Than
Personal (Continuation Sheet), shall be completed in accordance with
the below instructions.
    1. Use the same basic instructions for the SF 1035 as used for the
SF 1034. Ensure that the contract and, if applicable, order number, are
shown on each continuation sheet. Use as many sheets as necessary to
show the information required by the contract, contracting officer, or
responsible audit agency; however, if more than one sheet of SF 1035 is
used, each sheet shall be in numerical sequence.
    2. The following items are generally entered below the line with
Number and Date of Order; Date of Delivery or Service; Articles or
Services; Quantity; Unit Price; and Amount (but do not necessarily tie
to these captions).
    3. Description of data to be inserted as it applies to the contract
or order number including the CLIN or SLIN.
    a. Show, as applicable, the target or estimated costs, target or
fixed-fee, and total contract value, as adjusted by any modifications
to the contract or order. The FAR permits the contracting officer to
withhold a percentage of fixed fee until a reserve is set aside in an
amount that is considered necessary to protect the Government's
interest.
    b. Show the following costs and supporting data (as applicable) to
the contract or order:
    (1) Direct Labor. List each labor category, rate per labor hour,
hours worked, and extended total labor dollars per labor category.
    (2) Premium Pay/Overtime. List each labor category, rate per labor
hour, hours worked, and the extended total labor dollars per labor
category. Note: Advance written authorization must be received from the
contracting officer to work overtime or to pay premium rates;
therefore, identify the contracting

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

Completion Voucher

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

Subpart 1232.70--Electronic Invoicing Requirements

1232.7000  Scope of subpart.

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

1232.7001  Definition.

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

1232.7002  Electronic payment requests--invoices.

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

1232.7003  Payment system registration.

1232.7003-1  Electronic authentication.

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

1232.7004  Waivers.

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

1232.7005  Contract clause.

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

PART 1233--PROTESTS, DISPUTES, AND APPEALS

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

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

Subpart 1233.1--Protests

1233.103  Protests to the agency.

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

1233.104  Protests to GAO.

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

Subpart 1233.2--Disputes and Appeals

1233.211  Contracting officer's decision.

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

    ``This is the final decision of the Contracting Officer. You may
appeal this decision to the Civilian Board of Contract Appeals. If
you decide to appeal, you must, within 90 days from the date you
receive this decision, mail or otherwise furnish written notice to
the Civilian Board of Contract Appeals as set forth below and
provide a

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

1233.214  Alternative dispute resolution (ADR).

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

Subchapter F--Special Categories of Contracting

PART 1234 [RESERVED]

PART 1235--RESEARCH AND DEVELOPMENT CONTRACTING

Sec.
1235.003 Policy. 1235.011-70 Contract clause.
1235.012 Patent rights.
1235.070 Research misconduct.
1235.070-1 Contract clause.

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

1235.003  Policy.

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

1235.011-70  Contract clause.

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

1235.012  Patent rights.

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

1235.070  Research misconduct.

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

1235.070-1  Contract clause.

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

PART 1236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

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

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

Subpart 1236.5--Contract Clauses

1236.570  Special precautions for work at operating airports.

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

PART 1237--SERVICE CONTRACTING

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

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

Subpart 1237.1--Service Contracts--General

1237.110-70  Contract clauses.

    (a) The contracting officer shall insert the clause at 1252.237-70,
Qualifications of Contractor Employees, in all solicitations and
contracts for services where contractor employees

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

Subpart 1237.70--Procedures for Acquiring Training Services

1237.7000  Policy.

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

1237.7001  Certification of data.

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

1237.7002  Applicability.

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

1237.7003  Solicitation provision and contract clause.

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

PART 1239--ACQUISITION OF INFORMATION TECHNOLOGY

Sec.
1239.000 Scope of part.
1239.002 Definitions.
Subpart 1239.1--General
1239.101 Policy.
1239.101-70 Policy--software management and development.
1239.101-71 Scope.
1239.101-72 Definitions.
1239.101-73 Policy.
1239.106-70 Contract clauses.
Subpart 1239.2--Information and Communication Technology
1239.201 Scope of subpart.
1239.203 Applicability.
1239.203-70 Information and communication technology accessibility
standards--contract clause and provision.
Subpart 1239.70--Information Security and Incident Response Reporting
1239.7000 Scope of subpart.
1239.7001 Definitions.
1239.7002 Policy.
1239.7003 Contract clauses.
Subpart 1239.71--Protection of Data About Individuals
1239.7100 Scope of subpart.
1239.7101 Definitions.
1239.7102 Policy.
1239.7103 Responsibilities.
1239.7104 Contract clause.
Subpart 1239.72--Cloud Computing
1239.7200 Scope of subpart.
1239.7201 Definitions.
1239.7202 Policy.
1239.7203 DOT FedRAMP specific requirements.
1239.7204 Contract clauses.
Subpart 1239.73--Technology Modernization and Upgrades/Refreshment
1239.7300 Scope of subpart.
1239.7301 Definitions.
1239.7302 Policy.
1239.7303 Contract clauses.
Subpart 1239.74--Records Management
1239.7400 Scope of subpart.
1239.7401 Definition.
1239.7402 Policy.
1239.7403 Contract clause.

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

1239.000  Scope of part.

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

1239.002  Definitions.

    As used in this part--
    Information means any communication or representation of knowledge
such as facts, data, or opinions in any medium or form, including
textual, numerical, graphic, cartographic, narrative, or audiovisual
(Committee on National Security Systems Instruction (CNSSI) 4009).
    Information system means a discrete set of information resources
organized for the collection, processing, maintenance, use, sharing,
dissemination, or disposition of information (44 U.S.C. 3502).
    Media means physical devices or writing surfaces including, but not
limited to, magnetic tapes, optical disks, magnetic disks, large-scale
integration memory chips, and printouts onto which information is
recorded, stored, or printed within an information system.

Subpart 1239.1--General

1239.101  Policy.

1239.101-70  Policy--software management and development.

1239.101-71  Scope.

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

1239.101-72  Definitions.

    As used in this subpart--
    Application means software that resides above system software and
includes applications such as database programs, word processors and
spreadsheets. Application software may be bundled with system software
or published alone.
    Programming software means tools to aid developers in writing
programs including compilers, linkers, debuggers, interpreters and text
editors.
    Software means a set of instructions or programs instructing a
computer to do specific tasks including scripts, applications, programs
and a set of instructions. Includes System, Programming, and
Application software.

    System software means a platform comprised of Operating System (OS)
programs and services, including settings and preferences, file
libraries and functions used for system applications. System software
also includes device drivers that run basic computer hardware and
peripherals.

1239.101-73  Policy.

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

1239.106-70  Contract clauses.

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

Subpart 1239.2--Information and Communication Technology

1239.201  Scope of subpart.

    This subpart applies to the acquisition of Information and
Communication Technology (ICT) supplies and services. It concerns the
access to and use of information and data, by both Federal employees
with disabilities, and members of the public with disabilities in
accordance with FAR 39.201. This subpart implements DOT policy on
section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d) as it
applies to contracts and acquisitions.

1239.203  Applicability.

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

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

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

Subpart 1239.70--Information Security and Incident Response
Reporting

1239.7000  Scope of subpart.

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

1239.7001  Definitions.

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

1239.7002  Policy.

    (a) Contractors and subcontractors are required to provide adequate
security on all contractor information systems that will collect, use,
process, store, or disseminate DOT sensitive data.
    (b) Contractors and subcontractors shall report cyber incidents
directly to DOT via the DOT Security Operations Center (SOC) 24 hours-
a-day, 7 days-a-week, 365 days a year (24x7x365) at phone number: 571-
209-3080 (Toll Free:<PHONE_NUMBER>) within two (2) hours of discovery.
Subcontractors will provide to the prime contractor the incident report
number automatically assigned by DOT. Lower-tier subcontractors
likewise report the incident report number automatically assigned by
DOT to their higher-tier subcontractor, until the prime contractor is
reached.
    (c) If a cyber incident occurs, contractors and subcontractors
shall submit to DOT, in accordance with the instructions contained in
the clause at 1252.239-74, Safeguarding DOT Sensitive Data and Cyber
Incident Reporting--
    (1) A cyber incident report;
    (2) The malicious software, if detected and isolated; and
    (3) The medium or media (or access to covered contractor
information systems and equipment) upon request.
    (d) Notwithstanding the requirement in this subpart for the
reporting of cyber incidents, if existing safeguards have ceased to
function or the Government or Contractor discovers new or unanticipated
threats or hazards, the discoverer shall immediately bring the
situation to the attention of the other party.

    (1) Information shared by the contractor may include contractor
attributional/proprietary information. The Government will protect
against the unauthorized use or release of information that includes
contractor attributional/proprietary information.
    (2) A cyber incident that is reported by a contractor or
subcontractor shall not, by itself, be interpreted as evidence that the
contractor or subcontractor has failed to provide adequate security on
their covered contractor information systems, or has otherwise failed
to meet the requirements of the clause at 1252.239-74, Safeguarding DOT
Sensitive Data and Cyber Incident Reporting. When a cyber incident is
reported, the contracting officer shall consult with the DOT component
Chief Information Officer/cyber security office prior to assessing
contractor compliance (see 1239.7003). The contracting officer shall
consider such cyber incidents in the context of an overall assessment
of a contractor's compliance with the requirements of the clause at
1252.239-74, Safeguarding DOT Sensitive Data and Cyber Incident
Reporting.
    (3) Support services contractors directly supporting Government
activities related to safeguarding DOT sensitive data and cyber
incident reporting (e.g., forensic analysis, damage assessment, or
other services that require access to data from another contractor) are
subject to restrictions on use and disclosure of reported information.

1239.7003  Contract clauses.

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

Subpart 1239.71--Protection of Data About Individuals

1239.7100  Scope of subpart.

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

1239.7101  Definitions.

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

1239.7102  Policy.

    DOT must ensure that data protection is provided for information
and information systems in accordance with current policies,
procedures, and statutes, including:
    (a) The Clinger-Cohen Act.
    (b) The E-Government Act.
    (c) Federal Information Systems Modernization Act.
    (d) Federal Information Processing Standards.
    (e) OMB Circular A-130, Managing Information as a Strategic
Resource.
    (f) 49 CFR part 10, Maintenance of and Access to Records Pertaining
to Individuals.
    (g) DOT Order 1351.18, Privacy Risk Management Policy.
    (h) DOT Order 1351.19, PII Breach Notification Controls.
    (i) DOT Order 1351.28, Records Management.
    (j) DOT Order 1351.37, Departmental Cyber Security Policy.

1239.7103  Responsibilities.

    (a) The contracting officer will include appropriate data
protection requirements in all contracts and other acquisition-related
documents for DOT information created, collected, displayed, used,
processed, stored, transmitted, and disposed of by contractors.
    (b) The contracting officer will ensure all contracts with
contractors maintaining information systems containing PII contain the
appropriate clauses as may be required by the Federal Acquisition
Regulation (FAR) and other OMB and agency memorandums and directives,
to ensure that PII under the control of the contractor is maintained in
accordance with Federal law and DOT policy.
    (c) The contracting officer and assigned contracting officer's
representatives and program and project managers will obtain
contractual assurances from third parties working on official DOT
business that third parties will protect PII in a manner consistent
with the privacy practices of the Department during all phases of the
system development lifecycle.
    (d) Program and project managers and requiring activities will
address the need to protect information about individuals and/or PII in
the statement

of work (SOW), performance work statement (PWS) or statement of
objectives (SOO). Contracting officers will notify the appropriate
organization or office when it intends to issue a solicitation for
items or services requiring access to personal information or PII.
Contracting officers will identify the Component Privacy Officer as the
point of contact for oversight of privacy protection and identify the
Component Information Systems Security Manager for the component for
oversight of information security to the contractor after award.
    (e) See 1252.239-75, DOT Protection of Information about
Individuals, PII and Privacy Risk Management Requirements, for
additional information regarding the requirements of DOT Order 1351.18,
Privacy Risk Management Policy and DOT Order 1351.37, Departmental
Cyber Security Policy.

1239.7104  Contract clause.

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

Subpart 1239.72--Cloud Computing

1239.7200  Scope of subpart.

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

1239.7201  Definitions.

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

1239.7202  Policy.

    (a) General. Generally, DOT entities shall acquire cloud computing
services using commercial terms and conditions that are consistent with
Federal law and the agency's needs, including those requirements
specified in this subpart. Some examples of commercial terms and
conditions are license agreements, End User License Agreements (EULAs),
Terms of Service (TOS), or other similar legal instruments or
agreements. Contracting officers shall carefully review commercial
terms and conditions and consult counsel to ensure these are consistent
with Federal law, regulations, and the agency's needs. Contracting
officers shall incorporate any applicable service provider terms and
conditions into the contract by attachment or other appropriate
mechanism.
    (b) FedRAMP provisional authorization. Except as provided in
paragraph (b)(1) of this section, the contracting officer shall only
award a contract to acquire cloud computing services from a cloud
service provider (e.g., contractor or subcontractor, regardless of
tier) that has been granted provisional authorization by the General
Services Administration (GSA) Federal Risk and Authorization Management
Program (FedRAMP), and meets the security requirements set out by the
DOT Chief Information Officer (CIO), at the level appropriate to the
requirement to provide the relevant cloud computing services.
    (1) The contracting officer may award a contract to acquire cloud
computing services from a cloud service provider that has not been
granted provisional authorization when--
    (i) The requirement for a provisional authorization is waived by
the DOT CIO; or
    (ii) The cloud computing service requirement is for a private, on-
premises version that will be provided from Government facilities.
Under this circumstance, the cloud service provider must obtain a
provisional authorization prior to operational use.
    (2) When contracting for cloud computing services, the contracting
officer shall ensure the following information is provided by the
requiring activity:
    (i) Government data and Government-related data descriptions.
    (ii) Data ownership, licensing, delivery, and disposition
instructions specific to the relevant types of Government data and
Government-related data (e.g., Contract Data Requirements List; work
statement task; line items). Disposition instructions shall provide for
the transition of data in commercially available, or open and non-
proprietary format (and for permanent records, in accordance with
disposition guidance issued by National Archives and Record
Administration).
    (iii) Appropriate requirements to support applicable inspection,
audit, investigation, or other similar authorized activities specific
to the relevant types of Government data and Government-related data,
or specific to the type of cloud computing services being acquired.
    (iv) Appropriate requirements to support and cooperate with
applicable system-wide search and access capabilities for inspections,
audits, investigations.
    (c) Required storage of data within the United States or outlying
areas. (1) Cloud computing service providers are required to maintain
within the 50 States, the District of Columbia, or outlying areas of
the United States, all Government data that is not physically located
on DOT premises, unless otherwise authorized by the DOT CIO.
    (2) The contracting officer shall provide written approval to the
contractor when the contractor is permitted to maintain Government data
at a location outside the 50 States, the District of Columbia, and
outlying areas of the United States.

1239.7203  DOT FedRAMP specific requirements.

    DOT entities shall set forth DOT FedRAMP specific cloud service

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

1239.7204  Contract clauses.

    (a) The contracting officer shall insert the clause at 1252.239-76,
Cloud Computing Services, in solicitations and contracts, including
those using FAR part 12 procedures for the acquisition of commercial
products and commercial services, for information technology services
involving cloud computing services.
    (b) The contracting officer shall insert a clause substantially as
follows at 1252.239-77, Data Jurisdiction, in solicitations and
contracts, including those using FAR part 12 procedures for the
acquisition of commercial products and commercial services, for
information technology services involving cloud computing services.
    (c) The contracting officer shall insert a clause substantially as
follows at 1252.239-78, Validated Cryptography for Secure
Communications, in solicitations and contracts, including those using
FAR part 12 procedures for the acquisition of commercial products and
commercial services, for information technology services involving
cloud computing services.
    (d) The contracting officer shall insert a clause substantially as
follows at 1252.239-79, Authentication, Data Integrity, and Non-
Repudiation, in solicitations and contracts, including those using FAR
part 12 procedures for the acquisition of commercial products and
commercial services, for information technology services involving
cloud computing services.
    (e) The contracting officer shall insert a clause substantially as
follows at 1252.239-80, Audit Record Retention for Cloud Service
Providers, in solicitations and contracts, including those using FAR
part 12 procedures for the acquisition of commercial products and
commercial services, for information technology services involving
cloud computing services.
    (f) The contracting officer shall insert a clause substantially as
follows at 1252.239-81, Cloud Identification and Authentication
(Organizational Users) Multi-Factor Authentication, in solicitations
and contracts, including those using FAR part 12 procedures for the
acquisition of commercial products and commercial services, for
information technology services involving cloud computing services.
    (g) The contracting officer shall insert a clause substantially as
follows at 1252.239-82, Identification and Authentication (Non-
Organizational Users), in solicitations and contracts, including those
using FAR part 12 procedures for the acquisition of commercial products
and commercial services, for information technology services involving
cloud computing services.
    (h) The contracting officer shall insert a clause substantially as
follows at

1252.239-83, Incident Reporting Timeframes, in solicitations and
contracts, including those using FAR part 12 procedures for the
acquisition of commercial products and commercial services, for
information technology services involving cloud computing services.
    (i) The contracting officer shall insert a clause substantially as
follows at 1252.239-84, Media Transport, in solicitations and
contracts, including those using FAR part 12 procedures for the
acquisition of commercial products and commercial services, for
information technology services involving cloud computing services.
    (j) The contracting officer shall insert a clause substantially as
follows at 1252.239-85, Personnel Screening--Background Investigations,
in all services solicitations and contracts, including those using FAR
part 12 procedures for the acquisition of commercial products and
commercial services, for information technology services involving
cloud computing services.
    (k) The contracting officer shall insert a clause substantially as
follows at 1252.239-86, Boundary Protection--Trusted Internet
Connections, in solicitations and contracts, including those using FAR
part 12 procedures for the acquisition of commercial products and
commercial services, for information technology services involving
cloud computing services.
    (l) The contracting officer shall insert a clause substantially as
follows at 1252.239-87, Protection of Information at Rest, in
solicitations and contracts, including those using FAR part 12
procedures for the acquisition of commercial products and commercial
services, for information technology services involving cloud computing
services.
    (m) The contracting officer shall insert a clause substantially as
follows at 1252.239-88, Security Alerts, Advisories, and Directives, in
solicitations and contracts, including those using FAR part 12
procedures for the acquisition of commercial products and commercial
services, for information technology services involving cloud computing
services.

Subpart 1239.73--Technology Modernization and Upgrades/Refreshment

1239.7300  Scope of subpart.

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

1239.7301  Definitions.

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

1239.7302  Policy.

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

1239.7303  Contract clauses.

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

Subpart 1239.74--Records Management

1239.7400  Scope of subpart.

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

1239.7401  Definition.

    As used in this subpart--
    Federal record, as defined in 44 U.S.C. 3301, means all recorded
information, regardless of form or characteristics, made or received by
a Federal agency under Federal law or in connection with the
transaction of public business and preserved or appropriate for
preservation by that agency or its legitimate successor as evidence of
the organization, functions, policies, decisions, procedures,
operations, or other activities of the United States Government or
because of the informational value of data in them. The term Federal
record:
    (1) Includes all DOT records.
    (2) Does not include personal materials.
    (3) Applies to records created, received, or maintained by
contractors pursuant to a DOT contract.
    (4) May include deliverables and documentation associated with
deliverables.

 1239.7402  Policy.

    (a) Requirements--(1) Compliance. Contractors shall comply with all
applicable records management laws and regulations, as well as National
Archives and Records Administration (NARA) records policies, including
but not limited to 44 U.S.C. chapters 21, 29, 31, and 33, NARA
regulations at 36 CFR chapter XII, subchapter B, and those policies
associated with the safeguarding of records covered by Privacy Act of
1974 (5 U.S.C. 552a). These policies include the preservation of all
records, regardless of form or characteristics, mode of transmission,
or state of completion.
    (2) Applicability. In accordance with 36 CFR 1222.32, all data
created for Government use and delivered to, or falling under the legal
control of, the Government are Federal records subject to the
provisions of 44 U.S.C. chapters 21, 29, 31, and 33, the Freedom of
Information Act (FOIA) (5 U.S.C. 552), as amended, and the Privacy Act
of 1974 (5 U.S.C. 552a), as amended, and must be managed and scheduled
for disposition only as permitted by relevant records management laws
and regulations and DOT Order 1351.28,

Departmental Records Management Policy.
    (3) Records maintenance. While DOT records are in a contractor's
custody, the contractor is responsible for preventing the alienation or
unauthorized destruction of the DOT records, including all forms of
mutilation. Records may not be removed from the legal custody of DOT or
destroyed except in accordance with the provisions of the agency
records schedules and with the written concurrence of the DOT or
Component Records Officer, as appropriate. Willful and unlawful
destruction, damage or alienation of Federal records is subject to the
fines and penalties imposed by 18 U.S.C. 2701. In the event of any
unlawful or accidental removal, defacing, alteration, or destruction of
records, the contractor must report the event to the contracting
officer, in accordance with 36 CFR part 1230, for reporting to NARA.
    (4) Unauthorized disclosure. Contractors shall notify the
contracting officer within two hours of discovery of any inadvertent or
unauthorized disclosures of information, data, documentary materials,
records or equipment. Contractors shall ensure that the appropriate
personnel, administrative, technical, and physical safeguards are
established to ensure the security and confidentiality of the
information, data, documentary material, records and/or equipment
accessed, maintained, or created. Contractors shall not remove material
from Government facilities or systems, or facilities or systems
operated or maintained on the Government's behalf, without the express
written permission of the contracting officer or contracting officer's
representative. When information, data, documentary material, records
and/or equipment is no longer required, it shall be returned to DOT
control or the contractor must hold it until otherwise directed. Items
returned to the Government shall be hand carried, mailed, emailed, or
securely electronically transmitted to the contracting officer or
address prescribed in the contract. Destruction of records is expressly
prohibited unless authorized.
    (b) Non-public information. Contractors shall not create or
maintain any records containing any non-public DOT information that are
not specifically tied to or authorized by the contract.

1239.7403  Contract clause.

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

PART 1241 [RESERVED]

Subchapter G--Contract Management

PART 1242--CONTRACT ADMINISTRATION AND AUDIT SERVICES

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

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

Subpart 1242.1--Contract Audit Services

1242.101  Contract audit responsibilities.

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

1242.102  Assignment of contract audit services.

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

1242.170  Contract clause.

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

Subpart 1242.2--Contract Administration Services

1242.270  Contract clauses.

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

Subpart 1242.3--Contract Administration Office Functions

1242.302  Contract administration functions.

    (a) If a cognizant Federal agency has not performed the functions
identified in FAR 42.302(a)(5), (9), (11), and (12), then DOT
contracting officers are authorized to perform these functions with the
assistance of the cognizant government auditing agency, if assigned and
available to provide support in a timely manner. If the cognizant
government auditing agency is not assigned and/or available in the
necessary timeframe, DOT contracting officers may use the audit
services of a CPA firm.
    (13) The assignment of contract administration to a Defense
Contract Management Agency (DCMA) office by the contracting officer
does not affect the designation of the paying office unless a transfer
of DOT funds to the agency of the Contract Administration Office (CAO)
is effected, and the funds are converted to the CAO agency's account
for payment purposes. When the contracting officer proposes to delegate
the contract payment function to another agency (e.g., DCMA), the
contracting officer shall discuss the transfer of funds procedures with
the cognizant OA payment office. The CAO, the contracting officer, or
the designated contract specialist in the contracting office shall
review and approve the invoices and vouchers under the assigned
contracts. The review and approval of invoices under cost-reimbursement
and time-and-materials type contracts cannot be delegated to the
Contracting Officer's Representative.

Subpart 1242.15--Contractor Performance Information

1242.1503  Procedures.

    (a)(1) Each OA is responsible for assigning responsibility and
management accountability for the

completeness of past performance submissions as required in FAR
42.1503(a).

PART 1245 [RESERVED]

PART 1246--QUALITY ASSURANCE

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

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

Subpart 1246.1--General

1246.101  Definitions.

1246.101-70  Additional definitions.

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

Subpart 1246.7--Warranties

1246.705-70  Limitations--restrictions.

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

1246.706-70  Warranty terms and conditions--requirements.

    (a) When appropriate and cost effective, the contracting officer
shall comply with the following requirements when developing the
warranty terms and conditions--
    (1) Identify the affected line item(s) and the applicable
specification(s);
    (2) Require that the line item's design and manufacture will
conform to--
    (i) An identified revision of a top-level drawing; and/or
    (ii) An identified specification or revision thereof;
    (3) Require that the line item conform to the specified Government
performance requirements;
    (4) Require that all line items and components delivered under the
contract will be free from defects in materials and workmanship;
    (5) State that if the contractor fails to comply with specification
or there are defects in material and workmanship, the contractor will
bear the cost of all work necessary to achieve the specified
performance requirements, including repair and/or replacement of all
parts;
    (6) Require the timely replacement/repair of warranted items and
specify lead times for replacement/repair where possible;
    (7) Identify the specific paragraphs containing Government
performance requirements that the contractor must meet;
    (8) Ensure that any performance requirements identified as goals or
objectives beyond specification requirements are excluded from the
warranty provision;
    (9) Specify what constitutes the start of the warranty period
(e.g., delivery, acceptance, in-service date) and the end of the
warranty period (e.g., passing a test or demonstration, or operation
without failure for a specified period), and specify circumstances
requiring an extension of warranty duration (e.g., extending the
warranty period as a result of mass defect correction during warranty
period);
    (10) Identify what transportation costs will be paid by the
contractor in relation to the warranty coverage;
    (11) In addition to combat damage, identify any conditions which
will not be covered by the warranty; and
    (12) Identify any limitation on the total dollar amount of the
contractor's warranty exposure, or agreement to share costs after a
certain dollar threshold to avoid unnecessary warranty returns.
    (b) In addition to the terms and conditions listed in paragraph (a)
of this section, the contracting officer shall consider the following
when a warranty clause is being used for a major system, as defined in
FAR 2.101:
    (1) For line items or components that are commercially available,
obtaining a warranty as is normally provided by the manufacturer or
supplier, in accordance with FAR 46.703(d) and 46.710(b)(2).
    (2) Obtaining a warranty of compliance with the stated requirements
for line items or components provided in accordance with either design
and manufacturing or performance requirements as specified in the
contract or any modification to that contract.
    (3) A warranty provided under paragraph (b)(2) of this section
shall provide that in the event the line items or any components
thereof fails to meet the terms of the warranty provided, the
contracting officer may--
    (i) Require the contractor to promptly take such corrective action
as the contracting officer determines to be necessary at no additional
cost to the Government, including repairing or replacing all parts
necessary to achieve the requirements set forth in the contract;
    (ii) Require the contractor to pay costs reasonably incurred by the
United States in taking necessary corrective action; or
    (iii) Equitably reduce the contract price.
    (4) Inserting remedies, exclusions, limitations and durations,
provided these are consistent with the specific

requirements of this subpart and FAR 46.706.
    (5) Excluding from the terms of the warranty certain defects for
specified supplies (exclusions) and limiting the contractor's liability
under the terms of the warranty (limitations), as appropriate, if
necessary to derive a cost-effective warranty considering the technical
risk, contractor financial risk, or other program uncertainties.
    (6) Structuring of a broader and more comprehensive warranty where
such is advantageous. Likewise, the contracting officer may narrow the
scope of a warranty when appropriate (e.g., where it would be
inequitable to require a warranty of all performance requirements
because a contractor had not designed the system).
    (c) Any contract that contains a warranty clause must contain
warranty implementation procedures, including warranty notification
content and procedures, and identify the individuals responsible for
implementation of warranty provisions. The contract may also permit the
contractor's participation in investigation of system failures, if the
contractor is reimbursed at established rates for fault isolation work,
and that the Government receive credit for any payments where equipment
failure is covered by warranty provisions.

PART 1247--TRANSPORTATION

Subpart 1247.5--Ocean Transportation by U.S.-Flag Vessels
Sec.
1247.506 Procedures.

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

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

1247.506  Procedures.

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

Subchapter H--Clauses and Forms

PART 1252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 1252.1--Instructions for Using Provisions and Clauses
Sec.
1252.101-70 Using this part.
Subpart 1252.2--Text of Provisions and Clauses
1252.201-70 Contracting Officer's Representative.
1252.204-70 Contractor Personnel Security and Agency Access.
1252.209-70 Organizational and Consultant Conflicts of Interest.
1252.209-71 Limitation of Future Contracting.
1252.211-70 Index for Specifications.
1252.216-70 Evaluation of Offers Subject to an Economic Price
Adjustment Clause.
1252.216-71 Determination of Award Fee.
1252.216-72 Award Fee Plan.
1252.216-73 Distribution of Award Fee.
1252.216-74 Settlement of Letter Contract.
1252.217-70 Guarantee.
1252.217-71 Delivery and Shifting of Vessel.
1252.217-72 Performance.
1252.217-73 Inspection and Manner of Doing Work.
1252.217-74 Subcontracts.
1252.217-75 Lay Days.
1252.217-76 Liability and Insurance.
1252.217-77 Title.
1252.217-78 Discharge of Liens.
1252.217-79 Delays.
1252.217-80 Department of Labor Safety and Health Regulations for
Ship Repair.
1252.222-70 Strikes or Picketing Affecting Timely Completion of the
Contract Work.
1252.222-71 Strikes or Picketing Affecting Access to a DOT Facility.
1252.222-72 Contractor Cooperation in Equal Employment Opportunity
and Anti-Harassment Investigations.
1252.223-70 Removal or Disposal of Hazardous Substances--Applicable
Licenses and Permits.
1252.223-71 Accident and Fire Reporting.
1252.223-72 Protection of Human Subjects.
1252.223-73 Seat Belt Use Policies and Programs.
1252.228-70 Loss of or Damage to Leased Aircraft.
1252.228-71 Fair Market Value of Aircraft.
1252.228-72 Risk and Indemnities.
1252.228-73 Command of Aircraft.
1252.228-74 Notification of Payment Bond Protection.
1252.231-70 Date of Incurrence of Costs.
1252.232-70 Electronic Submission of Payment Requests.
1252.232-71 Limitation of Government's Obligation.
1252.235-70 Research Misconduct.
1235.235-71 Technology Transfer.
1252.236-70 Special Precautions for Work at Operating Airports.
1252.237-70 Qualifications of Contractor Employees.
1252.237-71 Certification of Data.
1252.237-72 Prohibition on Advertising.
1252.237-73 Key Personnel.
1252.239-70 Security Requirements for Unclassified Information
Technology Resources.
1252.239-71 Information Technology Security Plan and Accreditation.
1252.239-72 Compliance with Safeguarding DOT Sensitive Data
Controls.
1252.239-73 Limitations on the Use or Disclosure of Third-Party
Contractor Reported Cyber Incident Information.
1252.239-74 Safeguarding DOT Sensitive Data and Cyber Incident
Reporting.
1252.239-75 DOT Protection of Information About Individuals, PII,
and Privacy Risk Management Requirements.
1252.239-76 Cloud Computing Services.
1252.239-77 Data Jurisdiction.
1252.239-78 Validated Cryptography for Secure Communications.
1252.239-79 Authentication, Data Integrity, and Non-Repudiation.
1252.239-80 Audit Record Retention for Cloud Service Providers.
1252.239-81 Cloud Identification and Authentication (Organizational
Users) Multi-Factor Authentication.
1252.239-82 Identification and Authentication (Non-Organizational
Users).
1252.239-83 Incident Reporting Timeframes.
1252.239-84 Media Transport.
1252.239-85 Personnel Screening--Background Investigations.
1252.239-86 Boundary Protection--Trusted internet Connections.
1252.239-87 Protection of Information at Rest.
1252.239-88 Security Alerts, Advisories, and Directives.
1252.239-89 Technology Modernization.
1252.239-90 Technology Upgrades/Refreshment.
1252.239-91 Records Management.
1252.239-92 Information and Communication Technology Accessibility
Notice.
1252.239-93 Information and Communication Technology Accessibility.
1252.242-70 Dissemination of Information--Educational Institutions.
1252.242-71 Contractor Testimony.
1252.242-72 Dissemination of Contract Information.

1252.242-74 Contract Audit Support.
Subpart 1252.3--Provisions and Clauses Matrix
1252.301 Solicitation provisions and contract clauses (matrix).

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

Subpart 1252.1--Instructions for Using Provisions and Clauses

1252.101-70  Using this part.

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

Subpart 1252.2--Text of Provisions and Clauses

1252.201-70  Contracting Officer's Representative.

    As prescribed in 1201.604-70, insert the following clause:

Contracting Officer's Representative (NOV 2022)

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

1252.204-70  Contractor Personnel Security and Agency Access.

    As prescribed in 1204.1303, insert the following clause:

Contractor Personnel Security and Agency Access (NOV 2022)

    (a) Definitions. As used in this clause--