11 INTERIM CLAUSES.pdf

Attachment – Interim clauses April 2025

In accordance with the Executive Orders listed in Clause FAA0002 located in Section H of this document, the following clauses and provisions will be updated by amendment after system update. These clauses supersede the clauses that appear elsewhere in this document.

3.6.1-3 Utilization of Small, Small Disadvantaged, Women-Owned, Service-Disabled Veteran Owned, and HUBZone Small Business Concerns (INTERIM March 2025)

(a) It is the policy of the Federal Aviation Administration that small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals must be provided reasonable opportunities to participate in performing contracts it lets, including contracts and subcontracts for subsystems, assemblies, components, and related services for major systems. It is further the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals.

(b) The Contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with efficient contract performance. The Contractor further agrees to cooperate in any studies or surveys as may be conducted by the FAA as may be necessary to determine the extent of the Contractor's compliance with this clause.

(c) The terms "small disadvantaged business, and small business concern owned and controlled by socially and economically disadvantaged individuals" will mean a small business concern:

(1) Which is at least 51 percent unconditionally owned by one or more socially and economically disadvantaged individuals; or, in the case of any publicly owned business, at least 51 per centum of the stock of which is unconditionally owned by one or more socially and economically disadvantaged individuals; and

(2) Whose management and daily business operations are controlled by one or more of such individuals.

(d) The term ``small business concern owned and controlled by women” will mean a small business concern:

(1) Which is at least 51 percent owned by one or more women, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and

(2) Whose management and daily business operations are controlled by one or more women; and

(e) The term "service-disabled veteran owned small business concern" will mean a small business concern:

(1) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans;

(2) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran; and

(3) "Service-disabled veteran" will mean a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).

(f) The term “HUBZone small business concern” will mean a small business concern, certified by the Small Business Administration, that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration.

(g) Contractors acting in good faith may rely on written representations by their subcontractors regarding their status as a small business concern, a small disadvantaged business concern, a small business concern owned and controlled by socially and economically disadvantaged individuals, a small business concern owned and controlled by women or a service-disabled veteran owned small business concern.

(h) The Contractor must confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing the System for Award Management or by accessing HUBZone small business database search application web page at http://dsbs.sba.gov/dsbs/search/dsp_searchhubzone.cfm.

(End of clause)

3.6.1-4 Small Business Subcontracting Plan (INTERIM March 2025)

(a) Definitions. As used in this clause-

"Alaska Native Corporation (ANC)" means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended (43 U.S.C. 1601, et seq.) and which is considered a minority and economically disadvantaged concern under the criteria at 43 U.S.C. 1626(e)(1). This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2).

"Commercial item" means a product or service that satisfies the definition of commercial item in Appendix C of the FAA Acquisition Management System Policy.

"Commercial plan" means a subcontracting plan (including goals) that covers the offeror's fiscal year and that applies to the entire production of commercial items sold by either the entire company or a portion thereof (e.g., division, plant, or product line).

"Electronic Subcontracting Reporting System (eSRS)" means the Governmentwide, electronic, web-based system for small business subcontracting program reporting. The eSRS is located at:

http://www.esrs.gov/.

"Indian tribe" means any Indian tribe, band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act (43 U.S.C.A. 1601et seq.), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with 25 U.S.C.

1452(c). This definition also includes Indian-owned economic enterprises that meet the requirements of 25 U.S.C. 1452(e).

"Individual subcontracting plan" means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror's planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.

"Master subcontracting plan" means a subcontracting plan that contains all the required elements of an individual contract plan, except goals, and may be incorporated into individual contract plans, provided the master subcontracting plan has been approved.

“Reduced payment” means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.

"Subcontract" means any agreement (other than one involving an employer-employee relationship) entered into by a Federal Government prime Contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract.

“Total contract dollars” means the final anticipated dollar value, including the dollar value of all options.

“Untimely payment” means a payment to a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies and services for which the Government has paid the prime contractor.

(b)(1) Proposals submitted in response to this solicitation must include a subcontracting plan that separately addresses subcontracting with small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns.

If the offeror is submitting an individual subcontracting plan, the plan must separately address subcontracting with small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan must be included in and made a part of the resultant contract. The subcontracting plan must be negotiated within the time specified by the Contracting Officer. Failure to submit and negotiate the subcontracting plan designates the offeror as ineligible for award of a contract.

(2)(i) The Contractor may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, women-owned small business, or service-disabled veteran-owned small business, if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract.

(ii) The Contractor may accept a subcontractor's representations of its size and socioeconomic status as a small business, small disadvantaged business, women-owned small business, or service-disabled veteran-owned small business in the System for Award Management (SAM) if–

(A) The subcontractor is registered in SAM; and

(B) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract.

(iii) The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract.

(iv) For the reasons provided and under the circumstances described by the SBA in promulgating the regulations at 13 CFR 121.411, 124.1015, 126.900, and 127.700, the FAA has decided that a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor’s size or socioeconomic status.

(c) The offeror's subcontracting plan must include the following:

(1) Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns as subcontractors. For individual subcontracting plans, and if required by the Contracting Officer, goals must also be expressed in terms of percentage of total contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars. The offeror must include all sub-contracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs. In accordance with 43 U.S.C. 1626:

(i) Subcontracts awarded to an ANC or Indian tribe must be counted towards the subcontracting goals for small business and small disadvantaged business concerns, regardless of the size or Small Business Administration certification status of the ANC or Indian tribe; and

(ii) Where one or more subcontractors are in the subcontract tier between the prime contractor and the ANC or Indian tribe, the ANC or Indian tribe must designate the appropriate contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.

(A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the ANC or Indian tribe.

(B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward its goals, the ANC or Indian tribe must designate only a portion of the total subcontract award to each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total value of the subcontract.

(C) The ANC or Indian tribe must give a copy of the written designation to the Contracting Officer, the prime Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.

(D) If the Contracting Officer does not receive a copy of the ANC's or the Indian tribe's written designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated Contractor.

(2) A statement of:

(i) Total dollars planned to be subcontracted for an individual subcontracting plan; or the offeror's total projected sales, expressed in dollars, and the total value of projected subcontracts, including all indirect costs except as described in paragraph (f) of this clause, to support the sales for a commercial plan;

(ii) Total dollars planned to be subcontracted to small business concerns (including ANC and Indian tribes);

(iii) Total dollars planned to be subcontracted to small disadvantaged business concerns (including ANCs and Indian tribes);

(iv) Total dollars planned to be subcontracted to women-owned small business concerns;

(v) Total dollars planned to be subcontracted to service-disabled veteran-owned small business concerns;

and

(vi) Total dollars planned to be subcontracted to HUBZone small business concerns.

(3) A description of the principal types of supplies and services to be subcontracted, and an identification of the types planned for subcontracting to:

(i) Small business concerns;

(ii) Small disadvantaged business concerns;

(iii) Women-owned small business concerns;

(iv) Service-disabled veteran-owned small business concerns; and

(v) HUBZone small business concerns.

(4) A description of the method used to develop the subcontracting goals in paragraph (d)(1) of this clause.

(5) A description of the method used to identify potential sources for solicitation purposes (e.g., existing company source lists, SAM, veterans service organizations, the National Minority

Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce, or small, small disadvantaged, women-owned, and HUBZone small business trade associations). A firm may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, small disadvantaged, women-owned, service-disabled veteran-owned, and HUBZone small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities (e.g., outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.

(6) A statement as to whether or not the offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with:

(i) Small business concerns (including ANC and Indian tribes);

(ii) Small disadvantaged business concerns (including ANC and Indian tribes);

(iii) Women-owned small business concerns;

(iv) Service-disabled veteran-owned small business concerns; and

(v) HUBZone small business concerns.

(7) The name of the individual employed by the offeror who will administer the offeror's subcontracting program, and a description of the duties of the individual.

(8) A description of the efforts the offeror will make to assure that small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns have an equitable opportunity to compete for subcontracts.

(9) Assurances that the offeror will include the clause of this contract entitled "Utilization of Small, Small Disadvantaged, Women-Owned, Service-Disabled Veteran-Owned, and HUBZone Small Business

Concerns " in all subcontracts that offer further subcontracting opportunities, and that the offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of $750,000 ( $1,500,000 for construction of any public facility) with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.

(10) Assurances that the offeror will:

(i) Cooperate in any studies or surveys as may be required;

(ii) Submit periodic reports so that the Government can determine the extent of compliance by the offeror with the subcontracting plan;

(iii) Include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;

(iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at http://www.esrs.gov/. The reports must provide information on subcontract awards to small business concerns, small disadvantaged business concerns, women-owned small business concerns, service-disabled veteran-owned small business concerns, and HUBZone small business concerns.

Reporting must be in accordance with this clause, or as provided in agency regulations;

(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS;

(vi) Provide its prime contract number, its Unique Entity Identifier (UEI), and the e-mail address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their reports; and

(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own UEI, and the e-mail address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to its subcontractors with subcontracting plans.

(11) A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror's efforts to locate small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns, and award subcontracts to them. The records must include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):

(i) Source lists (e.g., SAM), guides, and other data that identify small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns.

(ii) Organizations contacted in an attempt to locate sources that are small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, or HUBZone small business concerns.

(iii) Records on each subcontract solicitation resulting in an award of more than $250,000, indicating:

(A) Whether small business concerns were solicited and, if not, why not;

(B) Whether small disadvantaged business concerns were solicited and, if not, why not;

(C) Whether women-owned small business concerns were solicited and, if not, why not;

(D) Whether service-disabled veteran-owned small business concerns were solicited and, if not, why not;

(E) Whether HUBZone small business concerns were solicited and, if not, why not; and

(F) If applicable, the reason award was not made to a small business concern.

(iv) Records of any outreach efforts to contact:

(A) Trade associations;

(B) Business development organizations;

(C) Conferences and trade fairs to locate small, small disadvantaged, women-owned, service-disabled veteran-owned, and HUBZone small business sources; and

(D) Veterans service organizations.

(v) Records of internal guidance and encouragement provided to buyers through:

(A) Workshops, seminars, training, etc.; and

(B) Monitoring performance to evaluate compliance with the program's requirements.

(vi) On a contract-by-contract basis, records to support award data submitted by the offeror to the Government, including the name, address, and business size of each subcontractor. Contractors having commercial plans need not comply with this requirement.

(12) Assurances that the offeror will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The offeror used a small business concern in preparing the bid or proposal if:

(i) The offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract; or

(ii) The offeror used the small business concern's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the offeror is awarded the contract.

(13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (c)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.

(14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor.

(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (See AMS clause 3.6.1-5 Payments to Small Business Subcontractors).

(d) In order to effectively implement this plan to the extent consistent with efficient contract performance, the Contractor must perform the following functions:

(1) Assist small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. Where the Contractor's lists of potential small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business subcontractors are excessively long, reasonable effort must be made to give all such small business concerns an opportunity to compete over a period of time.

(2) Provide adequate and timely consideration of the potentialities of small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business concerns in all "make-or-buy" decisions.

(3) Counsel and discuss subcontracting opportunities with representatives of small business, small disadvantaged business, women-owned small business, service-disabled veteran-owned small business, and HUBZone small business firms.

(4) Confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern in accordance with AMS Clause 3.6.1-3.

(5) Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, small disadvantaged, women-owned small business, service-disabled veteran-owned small business, or HUBZone small business for the purpose of obtaining a subcontract that is to be included as part or all of a goal contained in the Contractor's subcontracting plan.

(6) For all competitive subcontracts over $250,000 in which a small business concern received a small business preference, upon determination of the successful subcontract offeror, prior to award of the subcontract the Contractor must inform each unsuccessful small business subcontract offeror in writing of the name and location of the apparent successful offeror and if the successful subcontract offeror is a small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern.

(7) Assign each subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract.

(e) A master subcontracting plan on a plant or division-wide basis that contains all the elements required by paragraph (c) of this clause, except goals, may be incorporated by reference as a part of the subcontracting plan required of the offeror by this clause; provided:

(1) The master subcontracting plan has been approved;

(2) The offeror ensures that the master subcontracting plan is updated as necessary and provides copies of the approved master subcontracting plan, including evidence of its approval, to the Contracting Officer; and

(3) Goals and any deviations from the master subcontracting plan deemed necessary by the Contracting Officer to satisfy the requirements of this contract are set forth in the individual subcontracting plan.

(f) A commercial plan is the preferred type of subcontracting plan for contractors furnishing commercial items. The commercial plan must relate to the offeror's planned subcontracting generally, for both commercial and Government business, rather than solely to the Government contract. Once the Contractor's commercial plan has been approved, the Government will not require another subcontracting plan from the same Contractor while the plan remains in effect, as long as the product or service being provided by the Contractor continues to meet the definition of a commercial item. A Contractor with a commercial plan must comply with the reporting requirements stated in paragraph (c)(10) of this clause by submitting one SSR in eSRS for all contracts covered by its commercial plan. A Contractor authorized to use a commercial subcontracting plan must include in its subcontracting goals and in its SSR all indirect costs, with the exception of those such as the following: Employee salaries and benefits;

payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees;

fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region;

and philanthropic contributions. This report must be acknowledged or rejected in eSRS by the Contracting Officer who approved the plan. This report must be submitted within 30 days after the end of the Government's fiscal year.

(g) Prior compliance of the offeror with other such subcontracting plans under previous contracts will be considered by the Contracting Officer in determining the responsibility of the offeror for award of the contract.

(h) A contract may have no more than one subcontracting plan. When a contract modification is over $750,000 (over $1,500,000 for construction of a public facility), or an option is exercised, the goals of the existing subcontracting plan must be amended to reflect any new subcontracting opportunities. When the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.

(i) Subcontracting plans are not required from subcontractors when the subcontractor provides a commercial item subject to AMS Clause 3.10.2-6, Subcontracts for Commercial Items and Commercial Components, under a prime contract.

(j) The failure of the Contractor or subcontractor to: (1) comply in good faith with AMS clause 3.6.1-3 Utilization of Small, Small Disadvantaged, Women-Owned, Service-Disabled Veteran-Owned, and HUBZone Small Business Concerns, or (2) provide an approved plan required by this clause, constitutes a material breach of the contract and may be considered in any past performance evaluation of the Contractor.

(k) The Contractor must submit ISRs and SSRs using the web-based eSRS at: http://www.esrs.gov/.

Purchases from a corporation, company, or subdivision that is an affiliate of the prime Contractor or subcontractor are not included in these reports. Subcontract award data reported by prime Contractors and subcontractors must be limited to awards made to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe. Only subcontracts involving performance in the United States or its outlying areas should be included in these reports.

(1) ISR. This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan and must be submitted to the Administrative Contracting Officer (ACO) or Contracting Officer, if no ACO is assigned.

(i) The report must be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer. Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When the Contracting Officer rejects an ISR, the Contractor must submit a corrected report within 30 days of receiving the notice of ISR rejection.

(ii) Options, Modifications and Size Status Changes.

(A) When a subcontracting plan contains separate goals for the basic contract and each option, the dollar goal inserted on this report must be the sum of the base period through the current option; for example, for a report submitted after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract, the first option, and the second option.

(B) If a subcontracting plan has been added to the contract as the result of contract modification or the prime Contractor’s size status changing, the Contractor's achievements must be reported in the ISR on a cumulative basis from the date of incorporation of the subcontracting plan into the contract.

(iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in this report.

(iv) The authority to acknowledge receipt or reject the ISR resides:

(A) In the case of the prime Contractor, with the Contracting Officer; and

(B) In the case of a subcontract with a subcontracting plan, with the entity that awarded the subcontract.

(2) SSR.

(i) Reports submitted under individual contract plans:

(A) Encompass all subcontracting under prime contracts and subcontracts with the awarding agency, regardless of the dollar value of the subcontracts. This report also includes indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting goals.

(B) May be submitted on a corporate, company or subdivision (e.g. plant or division operating as a separate profit center) basis, unless otherwise directed by the agency.

(C) If a prime Contractor and/or subcontractor is performing work for more than one executive agency, a separate report must be submitted to each executive agency covering only that agency's contracts, provided at least one of that agency's contracts is over $750,000 (over $1,500,000 for construction of a public facility) and contains a subcontracting plan.

(D) Must be submitted annually by October 30 for the twelve month period ending September 30. When the Government rejects an SSR, the Contractor must submit a revised report within 30 days of receiving the notice of SSR rejection.

(E) Must appropriately allocate subcontract work when performed for more than one executive agency.

(F) Unless otherwise stated in the contract, SSRs in eSRS and those submitted by subcontractors with subcontracting plans, will be approved/rejected by the Government agency awarding the prime contract.

(ii) Reports submitted under a commercial plan:

(A) Must include all subcontract awards under the commercial plan in effect during the Government's fiscal year and all indirect costs.

(B) Must be submitted annually, within thirty days after the end of the Government's fiscal year.

(C) If a Contractor has a commercial plan and is performing work for more than one executive agency, its report must specify the percentage of dollars attributable to each agency.

(D) Unless otherwise stated in the contract, the report will be approved/rejected by the Contracting Officer who approved the commercial plan. The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting Officer who approved the commercial plan.

(End of clause)

3.6.2-18 Davis Bacon Act (INTERIM March 2025)

(a) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (d) of this clause; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period are deemed to be constructively made or incurred during such period. Such laborers and mechanics must be paid not less than the appropriate wage rate and fringe benefits in the wage determination for the classification of work actually performed, without regard to skill. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein; provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classifications and wage rates conformed under paragraph (b) of this clause) and the Davis-Bacon poster (WH-1321) must be posted at all times by the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.

(b) Additional wage classifications.

(1) The Contracting Officer may require that any class of laborers or mechanics, , which is not listed in the wage determination and which is to be employed under the contract must be classified in conformance with the wage determination. The Contracting Officer may approve an additional classification, and wage rate and fringe benefits; therefore, only when all the following criteria have been met:

(B) The classification is utilized in the area by the construction industry.

(C) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

(2) If the Contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the Contracting Officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken must be sent by the Contracting Officer to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC

20210. The Administrator or an authorized representative will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the Contracting Officer or will notify the Contracting Officer within the 30-day period that additional time is necessary.

(3) In the event the Contractor, the laborers or mechanics to be employed in the classification, or their representatives, and the Contracting Officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the Contracting Officer may refer the questions, including the views of all interested parties and the recommendation of the Contracting Officer, to the Administrator of the Wage and Hour Division for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and advise the Contracting Officer or will notify the Contracting Officer within the 30-day period that additional time is necessary.

(4) The wage rate (including fringe benefits, where appropriate) determined pursuant to subparagraphs (b)(2) or (b)(3) of this clause must be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.

(c) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the Contractor must either pay the benefit as stated in the wage determination or must pay another bona fide fringe benefit or an hourly cash equivalent thereof.

(d) If the Contractor does not make payments to a trustee or other third person, the Contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program; provided that the Secretary of Labor has found, upon the written request of the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.

(e) The FAA reserves the unilateral right to modify this contract to incorporate changes to the wage rates issued by the Department of Labor. If such changes cause an increase or decrease in the contractor's cost of performance, the Contracting Officer may equitably adjust the contract price.

(f) The Contractor must comply with the requirements of the Copeland ("Anti-Kickback") Act (18 U.S.C.

874 and 40 U.S.C. 276c) and its implementing regulations (29 CFR Part 3), which prohibit inducing or intimidating employees to accept lessor compensation than they are entitled to under a contract of employment.

(End of clause)

3.6.2-22 Subcontracts (Labor Standards) (INTERIM March 2025)

(a) The Contractor or subcontractor must include in any subcontracts the clauses entitled "Davis-Bacon Act," "Payrolls and Basic Records," 'Withholding -- Labor Violations," "Subcontracts (Labor Standards)," and "Certificate of Eligibility." The Contractor must include a clause requiring its subcontractors to include these clauses in any lower-tier subcontracts. The Prime Contractor must be responsible for compliance by any subcontractor or lower tier subcontractor with all the contract clauses cited in this paragraph.

(b) Notification of subcontracting.

(1) Within 14 days after award of the contract, the Contractor must deliver to the Contracting Officer a completed Statement and Acknowledgment Form (SF 1413) for each subcontract, including the subcontractor's signed and dated acknowledgment that the clauses set forth in paragraph (a) of this clause have been included in the subcontract.

(2) Within 14 days after the award of any subsequently awarded subcontract the Contractor must deliver to the Contracting Officer an updated completed SF 1413 for such additional subcontract.

(End of clause)

3.6.3-8 Alternatives to Products Containing Ozone Depleting Substances and High Global Warming Potential Hydrofluorocarbons (INTERIM March 2025)

(a) In accordance with the Clean Air Act Section 612, the Contractor must ensure that products that are purchased as a direct result of this contract will contain no ozone depleting substances or high global warming potential hydrofluorocarbons, wherever such alternatives exist as identified by the Significant New Alternative Policy (SNAP).

(b) A list of SNAP chemicals can be found on the EPA SNAP website at http://www.epa.gov/ozone/snap/lists/index.html or visit the Green Procurement Compilation, a centralized resource to assist federal agencies with sustainable acquisition that is searchable by product or service type, at https://sftool.gov/GreenProcurement.

(End of clause)

The following list of provisions and clauses are made Reserved to implement the Executive Orders referenced in clause FAA0002 of this document.

Procurement Contract Clauses

3.6.3-14 Use of Environmentally Preferable Products

3.6.3-20 Electronic Products Environmental Assessment Tool (EPEAT)

3.6.3-23 Delivery of Electronic and Paper Documents