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(End of clause)

(R 7-104.14(d) 1979 JUL)

(R FPR Temp. Reg. 50 1979 JUN)

52.219-11 Special 8(a) Contract Conditions.

As prescribed in 19.809-2(a), insert the following clause in contracts between the Small Business Administration (SBA) and a contracting agency when the acquisition is accomplished using 8(a) procedures:

SPECIAL 8(a) CONTRACT CONDITIONS (APR 1984)

The Small Business Administration (SBA) agrees to the following:

(a) To furnish the supplies or services set forth in this contract according to the specifications and the terms and conditions hereof by subcontracting with an eligible concern pursuant to the provisions of section 8(a) of the Small Business Act, as amended (15 U.S.C. 637(a)).

(b) That in the event SBA does not award a subcontract for all or a part of the work hereunder, this contract may be terminated either in whole or in part without cost to either party.

[insert

(c) Delegates to the name of contracting agency] the responsibility for administering the subcontract to be awarded hereunder with complete authority to take any action on behalf of the Government under the terms and conditions of the subcontract; provided, however, that the [insert name of contracting agency] shall give advance notice to the SBA before it issues a final notice terminating the right of a subcontractor to proceed with further performance, either in whole or in part, under the subcontract for default or for the convenience of the Government. (d) That payments to be made under any subcontract awarded under this contract will be made directly to the subcontractor by the [insert name of contracting agency].

(e) That the subcontractor awarded a subcontract hereunder shall have the right of appeal from decisions of the Contracting Officer cognizable under the "Disputes" clause of said subcontract.

(End of clause)

(AV FPR 1-1.713-3(d)(1))

52.219-12 Special 8(a) Subcontract Conditions.

As prescribed in 19.809-2(b), insert the following clause in contracts be

tween Small Business Administration and its 8(a) subcontractors:

SPECIAL 8(a) SUBCONTRACT
CONDITIONS (APR 1984)

(a) The Small Business Administration (SBA) has entered into Contract No. [insert number of contract] with the [insert name of contracting agency] to furnish the supplies or services as described therein. A copy of the contract is attached hereto and made a part hereof. (b) The [insert name of subcontractor), hereafter referred to as the subcontractor, agrees and acknowledges as follows:

(1) That it will, for and on behalf of the SBA, fulfill and perform all of the requirements of Contract No.

[insert

number of contract] for the consideration stated therein and that it has read and is familiar with each and every part of the contract.

(2) That the SBA has delegated responsibility for the administration of this subcontract to the [insert name of contracting agency) with complete authority to take any action on behalf of the Government under the terms and conditions of this subcontract.

(3) That it will not subcontract the performance of any of the requirements of this subcontract to any lower tier subcontractor without the prior written approval of the SBA and the designated Contracting Officer of the [insert name of contracting

agency].

(c) Payments, including any progress payments under this subcontract, will be made directly to the subcontractor by the [insert name of contracting agency].

52.219-13

(End of clause)

(AV 1-1.713-3(e)(1))

Utilization of Women-Owned Small Businesses.

As prescribed in 19.902, insert the following clause in solicitations and contracts:

UTILIZATION OF WOMEN-OWNED
SMALL BUSINESSES (AUG 1986)

(a) "Women-owned businesses," as used in this clause, means small business concerns that are at least 51 percent owned by women who are United States citizens and who also control and operate the business.

"Control," as used in this clause, means exercising the power to make policy decisions.

"Operate," as used in this clause, means being actively involved in the day-to-day management of the business.

"Small business concern," as used in this clause, means a concern including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria and size standards in 13 CFR 121.

(b) It is the policy of the United States that women-owned small businesses shall have the maximum practicable opportunity to participate in performing contracts awarded by any Federal agency.

(c) The Contractor agrees to use its best efforts to give women-owned small businesses the maximum practicable opportunity to participate in the subcontracts it awards to the fullest extent consistent with the efficient performance of its contract.

(d) The Contractor may rely on written representations by its subcontractors regarding their status as women-owned small businesses.

(End of clause)

[48 FR 42478, Sept. 19, 1983, as amended at 51 FR 31427, Sept. 3, 1986]

52.219-14 Limitations on Subcontracting. As prescribed in 19. 508(e), insert the following clause:

LIMITATIONS ON SUBCONTRACTING (OCTOBER 1987)

By submission of an offer and execution of a contract, the Offeror/Contractor agrees that in performance of the contract in the case of a contract for

(a) Services (except construction). At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern.

(b) Supplies (other than procurement from a regular dealer in such supplies). The concern shall perform work for at least 50 percent of the cost of manufacturing the supplies, not including the cost of materials.

(c) General construction. The concern will perform at least 15 percent of the cost of the contract, not including the cost of materials, with its own employees.

(d) Construction by special trade contractors. The concern will perform at least 25 percent of the cost of the contract, not including the cost of materials, with its own employees.

(End of clause)

[52 FR 38190, Oct. 14, 1988]

52.220-1 Preference for Labor Surplus Area Concerns.

As prescribed in 20.103(b), insert the following clause in solicitations and contracts that (a) exceed the appropriate small purchase limitation in Part 13 and (b) are not set aside for labor surplus area concerns:

PREFERENCE FOR LABOR SURPLUS

AREA CONCERNS (APR 1984)

(a) This acquisition is not a set aside for labor surplus area (LSA) concerns. However, the offeror's status as such a concern may affect (1) entitlement to award in case of tie offers or (2) offer evaluation in accordance with the Buy American Act clause of this solicitation. In order to determine whether the offeror is entitled to a preference under (1) or (2) above, the offeror must identify, below, the LSA in which the costs to be incurred on account of manufacturing or production (by the offeror or the first-tier subcontractors) amount to more than 50 percent of the contract price.

(b) Failure to identify the locations as specified above will preclude consideration of the offeror as an LSA concern. If the offeror is awarded a contract as an LSA concern and would not have otherwise qualified for award, the offeror shall perform the contract or cause the contract to be performed in accordance with the obligations of an LSA concern.

(End of clause)

(R 7-2003.13 1978 JUN)

52.220-2 Notice of Total Labor Surplus Area Set-Aside.

As prescribed in 20.202, insert the following clause in solicitations and contracts estimated to exceed the appropriate small purchase limitation in Part 13 that are totally set aside for labor surplus area concerns:

NOTICE OF TOTAL LABOR SURPLUS AREA SET-ASIDE (APR 1984)

(a) General. Offers are solicited from concerns that will agree to perform as labor surplus area (LSA) concerns. This action is based on the Small Business Act (15 U.S.C. 644(d), (e), and (f)) and Defense Manpower Policy No. 4B (44 CFR 331). Offers received from concerns that do not agree to perform as LSA concerns will be considered nonresponsive.

(b) Definitions. "Labor surplus area," as used in this clause, means a geographical area identified by the Department of Labor in accordance with 20 CFR 654, Subpart A, as an area of concentrated unemployment or underemployment or an area of labor surplus.

"Labor surplus area concern," as used in this clause, means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price.

(c) Agreement. The offeror agrees that, if awarded a contract as an LSA concern, the offeror will

(1) Perform the contract, or cause it to be performed, substantially in areas classified as LSA's at the time of award or at the time of performance; and

(2) Submit to the Contracting Officer within 30 days after the award of the contract (if it exceeds the appropriate small purchase limitation in Part 13 of the Federal Acquisition Regulation) or such longer time as prescribed by the Contracting Officer, a report containing the following information:

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52.220-3

(End of clause)

(R 1-1.804-1(c))

Utilization of Labor Surplus Area Concerns.

As prescribed in 20.302(a), insert the following clause in solicitations and contracts when it is estimated that the contract will exceed the appropriate small purchase limitation in Part 13. See 20.302(a)(1) through (2) for exceptions:

UTILIZATION OF LABOR SURPLUS
AREA CONCERNS (APR 1984)

(a) Applicability. This clause is applicable if this contract exceeds the appropriate small purchase limitation in Part 13 of the Federal Acquisition Regulation.

(b) Policy. It is the policy of the Government to award contracts to concerns that agree to perform substantially in labor surplus areas (LSA's) when this can be done consistent with the efficient performance of the contract and at prices no higher than are obtainable elsewhere. The Contractor agrees to use its best efforts to place subcontracts in accordance with this policy.

(c) Order of preference. In complying with paragraph (b) above and with paragraph (c) of the clause of this contract entitled Utilization of Small Business Concerns and Small Disadvantaged Business Concerns, the Contractor shall observe the following order of preference in awarding subcontracts: (1) small business concerns that are LSA concerns, (2) other small business concerns, and (3) other LSA concerns.

(d) Definitions. "Labor surplus area," as used in this clause, means a geographical area identified by the Department of Labor in accordance with 20 CFR 654, Subpart A, as an area of concentrated unemployment or underemployment or an area of labor surplus.

"Labor surplus area concern," as used in this clause, means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price.

(End of clause)

(R 1-1.805-3(a))

(R 7-104.20(a) 1981 May)

52.220-4 Labor Surplus Area Subcontracting Program.

As prescribed in 20.302(b), insert the following clause in solicitations and contracts that (a) may exceed $500,000, (b) contain the clause at 52.220-3, Utilization of Labor Surplus Area Concerns, and (c) in the opinion of the contracting officer, offer substantial subcontracting possibilities. In addition, the contracting officer shall urge contractors, that will receive negotiated contracts that may not exceed $500,000 but that meet the criteria in (b) and (c) above, to accept this clause:

LABOR SURPLUS AREA SUBCONTRACTING PROGRAM (APR 1984)

(a) See the Utilization of Labor Surplus Area Concerns clause of this contract for applicable definitions.

(b) The Contractor agrees to establish and conduct a program to encourage labor surplus area (LSA) concerns to compete for subcontracts within their capabilities when the subcontracts are consistent with the efficient performance of the contract at prices no higher than obtainable elsewhere. The Contractor shall

(1) Designate a liaison officer who will (i) maintain liaison with authorized representatives of the Government on LSA matters, (ii) supervise compliance with the Utilization of Labor Surplus Area Concerns clause, and (iii) administer the Contractor's labor surplus area subcontracting program;

(2) Provide adequate and timely consideration of the potentialities of LSA concerns in all make-or-buy decisions;

(3) Ensure that LSA concerns have an equitable opportunity to compete for subcontracts, particularly by arranging solicitations, time for the preparation of offers, quantities, specifications, and delivery schedules so as to facilitate the participation of LSA concerns;

(4) Include the Utilization of Labor Surplus Area Concerns clause in subcontracts that offer substantial LSA subcontracting opportunities; and

(5) Maintain records showing (i) the procedures adopted and (ii) the Contractor's performance, to comply with this clause. The records will be kept available for review by the Government until the expiration of 1 year after the award of this contract, or for such longer period as may be required by

any other clause of this contract or by ap plicable law or regulations.

(c) The Contractor further agrees to insert in any related subcontract that may exceed $500,000 and that contains the Utili zation of Labor Surplus Area Concerns clause, terms that conform substantially to the language of this clause, including this paragraph (c), and to notify the Contracting Officer of the names of subcontractors.

(End of clause)

(R1-1.805-3(b))

(R 7-104.20(b) 1978 JUN)

52.221 [Reserved]

52.222-1 Notice to the Government of Labor Disputes.

As prescribed in 22.103-5(a), insert the following clause in solicitations and contracts that involve programs or requirements that have been designated under 22.101-1(e):

NOTICE TO THE GOVERNMENT OF

LABOR DISPUTES (APR 1984)

(a) If the Contractor has knowledge that any actual or potential labor dispute is de laying or threatens to delay the timely per formance of this contract, the Contractor shall immediately give notice, including all relevant information, to the Contracting Of ficer.

(b) The Contractor agrees to insert the substance of this clause, including this para graph (b), in any subcontract to which a labor dispute may delay the timely perform. ance of this contract; except that each subcontract shall provide that in the event its timely performance is delayed or threatened by delay by any actual or potential labor dispute, the subcontractor shall immediately notify the next higher tier subcontractor or the prime Contractor, as the case may be. of all relevant information concerning the dispute.

(End of clause)

(R 7-203.27 1967 JUN)
(AV 7-104.4 1958 SEP)
(AV 7-603.1 1958 SEP)

52.222-2 Payment for Overtime Premi

ums.

As prescribed in 22.103-5(b), insert the following clause in solicitations and contracts when a cost-reimburse ment contract is contemplated and the contract amount is expected to be over

$100,000; unless (a) a cost-reimbursement contract for operation of vessels is contemplated, or (b) a cost-plus-incentive-fee contract that will provide a swing from the target fee of at least plus or minus 3 percent and a contractor's share of at least 10 percent is contemplated.

PAYMENT FOR OVERTIME PREMIUMS (APR 1984)

(a) The use of overtime is authorized under this contract if the overtime premium cost does not exceed *. In addition to this dollar ceiling, overtime is permitted only for work

(1) Necessary to cope with emergencies such as those resulting from accidents, natural disasters, breakdowns of production equipment, or occasional production bottlenecks of a sporadic nature;

(2) By indirect-labor employees such as those performing duties in connection with administration, protection, transportation, maintenance, standby plant protection, operation of utilities, or accounting;

(3) To perform tests, industrial processes, laboratory procedures, loading or unloading of transportation conveyances, and operations in flight or afloat that are continuous in nature and cannot reasonably be interrupted or completed otherwise; or

(4) That will result in lower overall costs to the Government.

(b) Any request for estimated overtime premiums that exceeds the amount specified above shall include all estimated overtime for contract completion and shall

(1) Identify the work unit; e.g., department or section in which the requested overtime will be used, together with present workload, staffing, and other data of the affected unit sufficient to permit the Contracting Officer to evaluate the necessity for the overtime;

(2) Demonstrate the effect that denial of the request will have on the contract delivery or performance schedule;

(3) Identify the extent to which approval of overtime would affect the performance or payments in connection with other Government contracts, together with identification of each affected contract; and

(4) Provide reasons why the required work cannot be performed by using multishift operations or by employing additional personnel.

*Insert either "zero" or the dollar amount agreed to during negotiations.

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As prescribed in 22.202, insert the following clause in solicitations and contracts when the contract is to be performed in any State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, or the Trust Territory of the Pacific Islands; unless

(a) The contract will be subject to the Walsh-Healey Public Contracts Act (see Subpart 22.6), which contains a separate prohibition against the employment of convict labor;

(b) The supplies or services are to be purchased from Federal Prison Industries, Inc. (see Subpart 8.6); or

(c) The acquisition involves the purchase, from any State prison, of finished supplies that may be secured in the open market or from existing stocks, as distinguished from supplies requiring special fabrication.

CONVICT LABOR (APR 1984)

The Contractor agrees not to employ any person undergoing sentence of imprisonment in performing this contract except as provided by 18 U.S.C. 4082(c)(2) and Executive Order 11755, December 29, 1973.

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