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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: February 20, 2002

SUBJECT: Environmental Protection Agency Acquisition Regulation (EPAAR); Contractor Performance Evaluations

SOURCE: Federal Register, February 20, 2002, Vol. 67, No. 34, page 7657

AGENCIES: Environmental Protection Agency (EPA)

ACTION: Proposed Rule

SYNOPSIS: EPA is proposing to amend EPAAR 1509.170 and EPAAR 1552.209-76, both entitled "Contractor Performance Evaluations," to allow contracting officers to use the National Institutes of Health (NIH) Contractor Performance System to record contractor performance system for construction-type acquisitions in place of the Federal Acquisition Regulation (FAR) prescribed Standard Form (SF) 1420, Performance Evaluation (Construction Contracts).

EDITOR'S NOTE: The EPA Acquisition Regulation (EPAAR) is Chapter 15 of Title 48 of the Code of Federal Regulations. It is available on the Internet at http://www.epa.gov/oamrfp12/ptod/epaar.pdf.

DATES: Comments must be submitted no later than March 22, 2002.

ADDRESSES: Submit comments on the proposed rule to Frances Smith at the U.S. Environmental Protection Agency, Office of Acquisition Management, Mail Code 3802R, 1200 Pennsylvania Avenue, NW, Ariel Rios Building, Washington, DC 20460, or by e-mail to Smith.Frances@epa.gov.

FOR FURTHER INFORMATION CONTACT: Frances Smith, U.S. Environmental Protection Agency, Office of Acquisition Management, 202-564-4368.

SUPPLEMENTAL INFORMATION: EPA contracting officers are required by EPAAR 1509.170-5, Policy, to use the services module of the NIH system to evaluate the performance of contractors that are awarded EPA contracts in excess of $100,000. However, EPA does not use the construction module of the NIH system because FAR 36.201, Evaluation of Contractor Performance, requires that an SF 1420 be prepared upon completion of all construction contracts over $500,000.

NIH obtained approval from the Civilian Agency Acquisition Council regarding the use of its construction module in place of the SF 1420. Therefore, EPA proposes to make the following revisions to the EPAAR to authorize the use of the NIH construction module for contractor performance evaluation instead of the SF 1420:

• Paragraph (a) of EPAAR 1509.170-3, Applicability, currently states that EPAAR 1509.170 does not apply to construction contracts, and that EPA contracting officers are to follow the guidance in FAR 36.201. The exemption of construction contracts from EPAAR 1509.170 coverage would be removed, and a new paragraph (d) would be added requiring use of the NIH construction module for construction contracts in accordance with EPAAR 1509.170-5.
  
  
• To the list of performance categories in paragraph (f) of 1509.170-4, Definitions ("quality, cost control, timeliness of performance, and business relations") would be added "compliance with labor standards, compliance with safety standards, and meeting Small Disadvantaged Business subcontracting requirements."
  
  
• To paragraph (b) of EPAAR 1509.170-5 would be added, "For construction type acquisitions, contracting officers shall use the NIH system to record evaluations for all contract performance periods expiring after [the effective date of the final rule]."
  
  
• Paragraph (b) of EPAAR 1509.170-8, Contractor Performance Report, would be revised by deleting the requirement that a copy of the NIH Contractor Performance Report be provided with each solicitation and contract in excess of $100,000, and replacing it with a reference to EPAAR 1552.209-76 and the statement, "The NIH system provides instructions to assist contracting officers and project officers with completing evaluations."
  
  
• EPAAR 1552.209-76 would be revised as follows:
  
  
  • The undesignated text between the section heading and paragraph (a), which provides separate ratings schemes for the quality, cost control, timeliness of performance, and business relations, would be revised to provide a single ratings scheme for those performance categories and for compliance with labor standards, compliance with safety standards, and meeting small disadvantaged business subcontracting requirements.
    
    
  • In paragraph (a)(2), the project officer would be required to evaluate a contractor's compliance with labor standards and compliance with safety standards performance in addition to the contractor's quality, cost control, and timeliness of performance, which the project officer is already required to evaluate.
    
    
  • In paragraph (b)(2), the contracting officer would be required to evaluate how well the contractor met small disadvantaged business subcontracting requirements in addition to the contractor's business relations, which the contracting officer is already required to evaluate.
    
    
  • In paragraph (b)(4), the contracting officer would be required to evaluate a contractor's compliance with labor standards and compliance with safety standards performance in addition to the contractor's quality, cost control, and timeliness of performance, which the contracting officer is already required to evaluate.

EDITOR'S NOTE: EPAAR 1536.201, Evaluation of Contractor Performance, requires the preparation of a SF 1420 within two weeks after final acceptance of contract work or contract termination. This should be removed for consistency with these proposed changes.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

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