Office of Acquisition and Logistics

Effective Date: October 1, 2026

PART 801—DEPARTMENT OF VETERANS AFFAIRS ACQUISITION REGULATION  

Subpart 801.1—Framework

801.101 Framework.
801.103 Authority.
801.106 Certifications.
801.107 VAAR conventions

Subpart 801.3—Deviations from the FAR and VAAR

801.303 Individual deviations.
801.304 Class deviations.

Subpart 801.4—Career Development, Contracting Authority, and Responsibilities

801.401 Contracting Functions

AUTHORITY: 5 U.S.C. 301; 38 U.S.C. 501, 8123, 8303; 40 U.S.C. 121(c); 41 U.S.C. 1304, 1702; 41 U.S.C. 1707; and 48 CFR chapter 1.

---

Subpart 801.1 – Framework

801.101  Framework.

The Department of Veterans Affairs (VA) Acquisition Regulation (VAAR) implements and supplements the Federal Acquisition Regulation (FAR) (48 CFR chapter 1) and is located at 48 CFR chapter 8. The FAR and VAAR apply to all VA acquisitions, except: 

• (a) Specific FAR or VAAR requirements do not apply to acquisitions that use General Post Funds to fulfill a testator’s or donor’s direction that a gift be devoted to a particular use, when compliance with those specific requirements would prevent carrying out the testator’s or donor’s direction. (38 U.S.C. 8303)
• (b) Prosthetic appliances, and services required in their fitting, supplying, training, and use. (38 U.S.C. 8123) 

801.103  Authority. 

The VAAR is issued by VA under the authorities of 5 U.S.C. 301 and 38 U.S.C. 501. 

801.106  Certifications. 

The VAAR may require certification from an offeror or contractor when the certification requirement is specifically imposed by statute, or when approved by the Senior Procurement Executive (SPE). (41 U.S.C. 1304, VAAR 801.401) 

801.107  VAAR conventions. 

The VAAR follows the same conventions as the FAR, to include words and terms, delegation of authority, dollar thresholds, application of VAAR changes, citations, and required actions. 

Subpart 801.3—Deviations from the FAR and VAAR  

801.303  Individual deviations. 

• (a) The SPE or the head of the contracting activity (HCA) may authorize individual deviations from the FAR in accordance with FAR part 1. 
• (b) The SPE or the HCA may authorize individual deviations from the VAAR when in the best interest of the VA. 

801.304  Class deviations. 

• (a) The SPE may authorize class deviations from the FAR in accordance with FAR part 1. 
• (b) The SPE may authorize class deviations from the VAAR when in the best interest of the VA. 

Subpart 801.4—Career Development, Contracting Authority, and Responsibilities 

801.401 Contracting Functions. 

• (a) Except as prohibited by law, FAR, or VAAR, the Secretary has delegated all FAR and VAAR agency-head functions, including responsibilities, approvals, and determinations, to the SPE, except for the acquisition management functions of the Chief Acquisition Officer (CAO) under 41 U.S.C. 1702 and any other functions expressly delegated to the CAO. 
• (b) Except as prohibited by law, FAR, or VAAR, the SPE may delegate responsibilities, authorities, or functions assigned to the SPE, including authority to select, appoint, and terminate contracting officers. 
• (c) The HCA has authority to manage the contracting activity, including authority to select, appoint, and terminate contracting officers. Except as prohibited by law, FAR, VAAR, or the SPE, the HCA may delegate responsibilities, authorities, or functions assigned to the HCA.

Effective Date: October 1, 2026

PART 803—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

Subpart 803.5—Other Improper Business Practices

803.570 Commercial advertising.
803.570-1 Policy.
803.570-2 Contract clause.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301–1.304.

---

PART 803—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 

Subpart 803.5—Other Improper Business Practices 

803.570 Commercial advertising.  

803.570-1 Policy. 

Contractors are prohibited from making references in its commercial advertising to VA contracts in a manner that states or implies VA approves or endorses the product or service or considers it superior to other products or services.  

803.570-2 Contract clause. 

The contracting officer must insert the clause at 852.203-70, Commercial advertising, in solicitations and contracts expected to equal or exceed the micro-purchase threshold.

Effective Date: October 1, 2026

PART 804—ADMINISTRATIVE AND INFORMATION MATTERS

Subpart 804.2 – Solicitation, Evaluation, and Award

804.205 Solicitation provisions and contract clauses.
804.205-70 Mandatory Clauses

Authority: 38 U.S.C. (5723-5724, 5725(a)–(c)); 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301-1.304

---

PART 804—ADMINISTRATIVE AND INFORMATION MATTERS 

Subpart 804.2 – Solicitation, Evaluation, and Award 

804.205  Solicitation provisions and contract clauses. 

804.205-70  Mandatory Clauses. 

• (a) In solicitations and contracts that require the contractor or contractor’s employees to have routine physical access to a VA facility, and/or logical access to VA information, and/or to VA information systems, the contracting officer must insert the following clauses:
  • 1) 852.204-70, Personal Identity Verification of Contractor Personnel and
  • 2) 852.204-72, Personnel Vetting and Credentialing.
• (b) These clauses are used in conjunction with FAR clause 52.204-9, Personal Identity Verification of Contractor Personnel. 

Effective Date: October 1, 2026

Subpart 805.3—Synopses of Contract Awards 

805.302 Public Announcement. 

AUTHORITY:  38 U.S.C 501; 40 U.S.C. 121(c); 41 U.S.C. 1707; 48 CFR 1.301-1.304.

---

PART 805—PUBLICIZING CONTRACT ACTIONS 

Subpart 805.3—Synopses of Contract Awards 

805.302  Public Announcement. 

• (a)  The public announcement mandated by FAR 5.302 is the award announcement posted in the GPE, as required by FAR 5.002. 

Effective Date: October 1, 2026

PART 806 — COMPETITION REQUIREMENTS

Sec.
806.003 Advocates for competition.

Subpart 806.1 — Presolicitation

806.103 Other than full and open competition.
806.103-5 Authorized or required by statute.
806.103-5-70 Authorized or required by statute—VA unique authorities.

Authority: 38 U.S.C. 513, 38 U.S.C. 8109, 38 U.S.C. 8123, 38 U.S.C. 8127, 38 U.S.C. 8153, 40 U.S.C. 121(c), 41 U.S.C. 1121(c)(3), 41 U.S.C. 1303, 41 U.S.C. 1702, 41 U.S.C. 3304, and 48 CFR 1.301-1.304.

---

PART 806—COMPETITION REQUIREMENTS

806.003 Advocates for competition.
Information on competition advocates, including a list of VA procuring activity competition advocates, is available on VA’s Competition Advocate website.

Subpart 806.1 — Presolicitation.

806.103 Other than full and open competition.

806.103-5 Authorized or required by statute.

806.103-5-70 Authorized or required by statute – VA unique authorities.

• (a) Prosthetic appliances and services sole-source award. Under 38 U.S.C. 8123, VA may procure prosthetic appliances and necessary services for fitting, supplying, training in, and using of prosthetic appliances by purchase, manufacture, contract, or in such other manner as determined to be proper, without regard to any other provision of law. An acquisition conducted under this authority is not subject to the competition requirements of FAR part 6, and a Justification and Approval (J&A) is not required.
• (b) Translator services sole-source award. Under 38 U.S.C. 513, VA may procure translator services without regard to any other law. An acquisition conducted under this authority is not subject to the competition requirements of FAR part 6, and a J&A is not required.
• (c) Laundry services, and other common services as specifically approved by the Secretary from nonprofit, tax-exempt educational, medical or community institutions sole sourced award. Under 38 U.S.C. 8122(c), VA may procure laundry services, and other common services as specifically approved by the Secretary from nonprofit, tax-exempt educational, medical or community institutions, whenever such services are not reasonably available from private commercial sources. A J&A is not required.
• (d) Commercial health-care resources, use of medical equipment or space, or research.
  • (1) VA Affiliates. Under 38 U.S.C. 8153(a)(3)(A), VA may procure a health-care resource requirement (including commercial services, use of medical equipment or space, or research) from an institution affiliated with the VA, in accordance with 38 U.S.C. 7302. This includes medical practice groups and other entities associated with affiliated institutions, blood banks, organ banks, or research centers. The procurement may be conducted without regard to any law or regulation (including any Executive order, circular, or other administrative policy) that would otherwise require the use of competitive procedures for acquiring the resource. An acquisition conducted under this authority is not subject to the competition requirements of FAR part 6, and a J&A is not required.
  • (2) Simplified Procedures. Under 38 U.S.C. 8153(a)(3)(B), VA may procure a health-care resource requirement (including commercial services, use of medical equipment or space, or research) from an entity or institution other than one described in 38 U.S.C. 8153(a)(3)(A). The procurement may be conducted without regard to any law or regulation that would otherwise require the use of FAR competitive procedures, provided that the procurement is conducted in accordance with the published simplified procedures prescribed by the VA Secretary. An acquisition conducted under this authority is not subject to the competition requirements of FAR part 6. Therefore, a J&A is not required.
  • (3) For acquisitions of health-care resources not covered by paragraphs (d)(1) or (2) of this section, contracting activities must comply with all relevant procurement laws and regulations, including preparation of a J&A for a sole-source award as applicable. A J&A must cite 38 U.S.C. 8153 together with the applicable FAR part 6 authority and satisfy all FAR part 6 requirements.

• (e) Certified SDVOSB or VOSB sole-source award. Under 41 U.S.C. 3304(a)(5) and 38 U.S.C. 8127, VA may award a sole-source contract to a certified service-disabled veteran owned small business (SDVOSB) or (VOSB), to meet SDVOSB and VOSB contracting goals, if the anticipated award price of the contract (including options) will not exceed $5,000,000. The contracting activity must first determine whether a certified SDVOSB can satisfy the requirement. If a certified SDVOSB cannot satisfy the requirement, the contracting activity may make an award to a certified VOSB. (See Part 819 for additional SDVOSB and VOSB hierarchy information.)
  • (1) Procurements with the anticipated award price of the contract (including options) not exceeding $5 million also require that
    • (i) the certified SDVOSB or VOSB has been determined to be a responsible source with respect to performance of the contract opportunity, and
    • (ii) award can be made at a fair and reasonable price that offers best value to the United States.
  • (2) A J&A, citing 41 U.S.C. 3304(a)(5), and as authorized by 38 U.S.C. 8127, is required for a sole-source award to a certified SDVOSB or VOSB.
• (f) Operation of parking facilities at medical facilities (by lease or otherwise) sole-source award. Under 41 U.S.C. 3304(a)(5) and 38 U.S.C. 8109, VA may procure operation of parking requirements, provided that the establishment, operation, and/or maintenance of such parking facilities have been authorized by the VA Secretary or designee, without regard to laws requiring full and open competition. A J&A, citing 41 U.S.C. 3304(a)(5), and as authorized by 38 U.S.C. 8109, is required for a sole-source award for the operation of parking facilities at medical facilities.

Effective Date: October 1, 2026

PART 808—REQUIRED SOURCES OF SUPPLIES AND SERVICES

Subpart 808.1 – Presolicitation

808.102 Mandatory source for services.
808.103 Mandatory source of supplies.
808.104 Use of existing contracts.

Subpart 808.4 – Ordering under the Federal Supply Schedule

808.401 General.

Subpart 808.5 – Acquisition of Government printing and related supplies

808.502 Policy.

Authority: 38 U.S.C. 8127-8128; 40 U.S.C. 121(c); 41 U.S.C. 85; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 44 U.S.C. 503; and 48 CFR 1.301-1.304.

---

PART 808—REQUIRED SOURCES OF SUPPLIES AND SERVICES 

Subpart 808.1  Presolicitation. 

Contracting officers may procure from any source instead of the mandatory sources prescribed in this subpart or in FAR part 8 when unusual and compelling urgency is justified. (41 U.S.C. 3304(a)(2)) 

808.102  Mandatory source for services. 

Contracting officers must procure services in the following order – 

• (a) When on the Procurement List maintained by the Committee, from an AbilityOne Participating Nonprofit Agency as prescribed in FAR 8.102, except when all of the following conditions are met, in which case the service must be procured from a service-disabled Veteran-owned small business (SDVOSB) or Veteran-owned small business (VOSB) when authorized under part 819:
  • (1) VA awarded a SDVOSB or VOSB contract for the same or essentially the same service after December 22, 2006;
  • (2) The contract or a replacement contract for the same or essentially the same service described in paragraph (1) was in effect on August 7, 2020;
  • (3) The contracting officer determines the service can be procured at a fair and reasonable price. (38 U.S.C. 8127)
• (b) The exception in paragraph (a) does not apply when the contract described in paragraphs (a)(1) through (2) has terminated or expired and the head of the contracting activity determines there is no reasonable expectation that two or more SDVOSBs or VOSBs will submit offers for a replacement contract at a fair and reasonable price. (38 U.S.C. 8127)
• (c) From a SDVOSB or VOSB, giving priority to SDVOSB first, in accordance with part 819. (38 U.S.C. 8127-8128)

 808.103  Mandatory source of supplies. 

Contracting officers must procure supplies in the following order – 

• (a) As prescribed by FAR 8.103(a)(1) through (a)(2).
• (b) From Federal Prison Industries as prescribed by FAR 8.103, except when an award can and will be made to a SDVOSB or VOSB. (18 U.S.C. 4124, 38 U.S.C. 8127-8128)
• (c) When on the Procurement List maintained by the Committee, from an AbilityOne Participating Nonprofit Agency as prescribed in FAR 8.103, except when all of the following conditions are met in which case the supply must be procured from a SDVOSB or VOSB when authorized under part 819:
  • (1) VA awarded a SDVOSB or VOSB contract for the same or essentially the same supply after December 22, 2006; 
  • (2) The contract or a replacement contract for the same or essentially the same supply described in paragraph (1) was in effect on August 7, 2020;
  • (3) The contracting officer determines the supply can be procured at a fair and reasonable price.
• (d) The exception in paragraph (c) does not apply when the contract described in paragraphs (c)(1) through (2) has terminated or expired and the head of the contracting activity determines there is no reasonable expectation that two or more SDVOSBs or VOSBs will submit offers for a replacement contract at a fair and reasonable price. (38 U.S.C. 8127)
• (e) From a SDVOSB or VOSB, giving priority to SDVOSB first, in accordance with part 819. (38 U.S.C. 8127-8128)

 808.104 Use of existing contracts. 

Contracting officers must consider strategic contract vehicles awarded by Veterans Affairs (VA) before considering contract vehicles awarded by other agencies. 

Subpart 808.4—Ordering under the Federal Supply Schedule 

808.401  General. 

Part 819 applies to Federal Supply Schedule orders. 

Subpart 808.5 – Acquisition of Government printing and related supplies 

808.502 Policy.  Government printing must be done by or through the Government Publishing Office in accordance with FAR 8.502, unless printing or binding equipment that the various VA hospitals and homes use for occupational therapy is used. (44 U.S.C. 503)

Effective Date: October 1, 2026

PART 809—CONTRACTOR QUALIFICATIONS 

Subpart 809.1—Framework 

809.101 Framework.
809.103 Authority.
809.106 Certifications.
809.107 VAAR conventions

Subpart 809.4—Debarment, Suspension, and Ineligibility

809.402 Policy.
809.405 Effect of listing.
809.405-1 Continuation of current contracts.
809.406 Debarment.
809.406-2 Causes for debarment.
809.406-270 Additional causes for debarment.
809.406-4 Period of debarment.
809.406-470 Period of debarment.
809.407 Suspension.
809.407-1 General.
809.407-3 Procedures.
809.407-370 Procedures.
809.407-70 Fact-finding procedures.

Subpart 809.5—Organizational and Consultant Conflicts of Interest

809.507 Solicitation provisions and contract clause.
809.507-1 Solicitation provisions.

Authority: 38 U.S.C. 8127 and 8128; 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 809—CONTRACTOR QUALIFICATIONS 

809.101 Framework. 

Part 809 provides U.S. Department of Veterans Affairs (VA) policies for deciding whether a contractor is qualified to do business with VA. It includes rules for responsibility, debarment, suspension, ineligibility, and organizational conflicts of interest. Veterans Affairs Acquisition Regulation (VAAR) Part 809 supplements the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1) and is located at 48 CFR Chapter 8. VA applies FAR and VAAR to all contractor qualification actions except when: 

• (a) A law requires VA to apply a specific penalty or remedy, such as mandatory debarment for willful and intentional misrepresentation of Service Disabled Veteran Owned Small Business (SDVOSB) or Veteran Owned Small Business (VOSB) status under 38 U.S.C. 8127(g).
• (b) Other VA specific authorities govern contractor eligibility and applying the FAR or VAAR would conflict with those statutory requirements. 

809.103 Authority. 

VA issues Part 809 under the authorities in 38 U.S.C. 8127 and 8128; 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301–1.304. These authorities allow VA to set rules for determining contractor responsibility, applying sanctions, and administering integrity related actions such as suspension and debarment. 

809.106 Certifications. 

VA may require a contractor to provide certifications when a statute requires it or when approved by the Senior Procurement Executive (SPE). Certifications may relate to responsibility, small business status, limitation on subcontracting compliance, integrity and conflict of interest matters. 

809.107 VAAR conventions. 

Part 809 follows the same structure and conventions as the FAR and other VAAR parts. This includes standardized terms, numbering, delegations of authority, thresholds, referencing format and application of updates. 

Subpart 809.4—Debarment, Suspension, and Ineligibility 

809.402  Policy. 

In addition to the discretionary remedies in FAR 9.402, debarment under 38 U.S.C. 8127(g) is mandatory when a business has willfully and intentionally misrepresented its SDVOSB or VOSB status for VA’s Veterans First contracting program. 

809.405  Effect of listing. 

The Agency Head delegates the authority in FAR 9.405 to the Senior Procurement Executive (SPE), who further delegates it to the Head of Contracting Activity (HCA). Further delegation below the HCA level is not allowed. 

809.405-1 Continuation of current contracts. 

• (a) If a contractor is suspended, proposed for debarment, or debarred under FAR part 9, VA may allow the contractor to finish work on contracts or subcontracts that already exist, unless the HCA decides those contracts should be stopped. 
• (b) When deciding whether to let an existing contract continue, the HCA will consider things like how serious the contractor’s conduct was, how stopping the contract would affect VA’s mission and Veterans, whether another contractor is readily available, and how much time and money it would take to end the contract and award it again. 
• (c) Only the HCA may decide whether an existing contract or subcontract may continue under this section. This authority may not be delegated below the HCA level. 

809.406  Debarment. 

809.406-2  Causes for debarment. 

809.406-270  Additional causes for debarment. 

1. (a) Discretionary Causes.
   • (1) In addition to the causes listed in FAR 9.406-2 the Suspending and Debarring Official (SDO) may debar contractors, based upon a preponderance of the evidence (as defined at FAR 2), for the Government’s protection, for—
     • (i) Any deliberate violation of the limitation on subcontracting clause requirements for acquisitions under part 819 or
     • (ii) Failure to observe the material provisions of a voluntary exclusion or an administrative agreement.
   • (2) The period of debarment will be equal to the seriousness of the action.

• (b) Statutory Causes.
  • (1) Pursuant to 38 U.S.C. 8127(g), Enforcement Penalties for Misrepresentation, the SDO will debar, from contracting with VA, for a period of not less than five years, any business concern that has willfully and intentionally misrepresented the status of that concern as a small business concern owned and controlled by Veterans or as a small business concern owned and controlled by service-disabled Veterans.
  • (2) Debarment of a business concern pursuant to 38 U.S.C. 8127(g) will include the debarment of all principals in the business concern. Debarment will be for a period of not less than five years. The period of debarment will be equal to the seriousness of the action.
  • (3) “Willful and intentional” misrepresentations, for the purpose of debarment actions taken pursuant to 38 U.S.C. 8127(g), are defined as deliberate misrepresentations concerning the status of the concern as a small business concern owned and controlled by Veterans or as a small business concern owned and controlled by service-disabled Veterans as supported by the preponderance of evidence. Examples of a preponderance of evidence for deliberate misrepresentation of SDVOSB and/or VOSB status include but are not limited to: Criminal convictions, plea agreements, deferred prosecution agreements, Board of Contract Appeals decisions, and admissions of guilt. 

809.406-4  Period of debarment. 

809.406-470  Period of debarment. 

• (a) The SDO will decide whether to grant relief on the period of debarment based on the facts and circumstances of the specific cause or causes for debarment. 
• (b) A debarred contractor may ask that the SDO remove the debarment, reduce its period, or amend its scope. The request must include documentary evidence supporting the grounds for relief, such as newly discovered material evidence, reversal of a conviction, a bona fide change in ownership or management, elimination of the cause for which debarment was imposed, or other grounds. The SDO will decide whether to grant relief based on the documented evidence. 
• (c) If a contractor is debarred for willful and intentional misrepresentation of SDVOSB or VOSB status under 809.406-2-70, the period of debarment will be at least 5 years. 

809.407  Suspension. 

809.407-1  General. 

For the purposes of FAR 9.407-1, the SPE, as the SDO, also serves as the suspending official for the purchase of Federal personal property under 41 CFR part 102-38. 

809.407-3  Procedures. 

809.407-370  Procedures. 

• (a) Referral. Any individual may refer a matter for suspension to the SDO or to the Suspension and Debarment Committee (S&D Committee). Referrals will include supporting evidence of a cause for suspension listed in FAR 9.407‑2. If a VA employee’s referral is based on possible criminal or fraudulent activity, the employee must also refer the matter to the VA Office of Inspector General.
• (b) Committee review and recommendation. When the S&D Committee determines there is adequate evidence of a cause for suspension under FAR 9.407‑2, the committee will prepare a written recommendation and draft notice of suspension for the SDO’s consideration.
• (c) The S&D Committee must send notices of suspension using the notice and delivery procedures in FAR 9.407‑3(c). At the same time, the S&D Committee will list the parties as excluded in SAM in accordance with FAR 9.404.
• (d) If any VA office/employee designated in the notice receives a reply within 30 days of the contractor’s receipt of the notice of suspension, they will forward the reply to the S&D Committee, and the S&D Committee must consider that information before making any further recommendation to the SDO. At the contractor’s request, the S&D Committee must offer an opportunity, as soon as practical, for the contractor to appear (in person or through a representative) to present information or argument. The S&D Committee must make a transcribed record of the proceedings and make it available at cost to the contractor upon request, unless the contractor and the agency, by mutual agreement, waive the requirement for a transcript.
• (e) Disputed material facts. For purposes of FAR 9.407‑3(b)(2), if the S&D Committee concludes that the contractor’s submission raises a genuine dispute of material fact, the disputed issue will be forwarded to the SDO. The S&D Committee may first coordinate with the Department of Justice (DOJ) or a state prosecuting authority. VA will not take further action to resolve disputed material facts if DOJ or the applicable State prosecuting authority recommends VA in writing that doing so would prejudice ongoing or contemplated legal proceedings.
• (f) Referral for fact‑finding. If the SDO agrees that a genuine dispute of material fact exists, the SDO refers the matter for resolution.

809.407-70 Fact-finding procedures. 

The procedures of this section will be used to resolve genuine disputes of material fact in accordance with 809.406 and 809.407. The SDO will appoint a designee to conduct the fact-finding. The Office of General Counsel (OGC) will represent VA at any fact-finding hearing and may present witnesses for VA and question any witnesses presented by the contractor. The proceedings before the fact-finder will be limited to a finding of the facts in dispute, as decided by the SDO. The fact-finder will establish the date for the fact-finding hearing, normally to held within 30 days after the S&D Committee notifies the contractor or individual that the SDO has established a genuine dispute of material fact(s) exists. 

• (a) OGC and the contractor will have an opportunity to present evidence relevant to the material fact(s) found by the SDO. The contractor or individual may appear in person or through a representative at the fact-finding hearing. The contractor or individual may send documentary evidence, present witnesses, and confront any person the agency presents.
• (b) Witnesses may testify in person. Witnesses will be reminded of the official nature of the proceedings and that any false testimony given is subject to criminal prosecution. Witnesses are subject to cross-examination. Hearsay evidence may be presented and will be given appropriate weight by the fact-finder. 
• (c) The proceedings will be transcribed, and a copy of the transcript will be made available at cost to the contractor upon request, unless the contractor and the fact-finder, by mutual agreement, waive the requirement for a transcript. 
• (d) The fact-finder will decide the disputed fact(s) by a preponderance of the evidence for proposed debarments, and by adequate evidence for suspensions.  Written findings of fact will be prepared by the fact-finder. A copy of the findings of fact will be provided to the SDO, the Government’s representative, and the contractor or individual. The SDO will consider the written findings of fact in the decision on the suspension or proposed debarment.

Subpart 809.5—Organizational and Consultant Conflicts of Interest 

809.507  Solicitation provisions and contract clause. 

809.507-1  Solicitation provisions. 

The solicitation must include a provision that, if award of a contract could create a future organizational conflict of interest under FAR 9.5, restrictions are placed on contractor’s eligibility for future awards. Specifically, VAAR 852.209‑70 must be inserted in any solicitation covered by FAR 9.502. 

Effective Date: October 1, 2026

PART 811—DESCRIBING AGENCY NEEDS

Subpart 811.4—Liquidated Damages

811.401 Policy.
811.403 Contract clauses.

AUTHORITY: 38 U.S.C. 5723-5725; 40 U.S.C. 121(c); 41 U.S.C. 1303, 1702; and 48 CFR 1.301-1.304.

---

PART 811—DESCRIBING AGENCY NEEDS 

Subpart 811.4—Liquidated Damages 

811.401 Policy. 

A liquidated damages clause is required in solicitations and contracts for the performance of any VA function that requires access to sensitive personal information (as defined in 852.211-76), including solicitations and contracts issued by another agency on behalf of VA. Liquidated damages are to be paid by the contractor to VA in the event of a data breach (as defined in 852.211-76) with respect to sensitive personal information processed or maintained by the contractor or any of its affiliates under or in connection with that contract. (38 U.S.C. 5725) 

811.403 Contract clauses. 

Insert the clause at 852.211-76, Liquidated Damages – Data Breach of Sensitive Personal Information, in all solicitations and contracts that require access to  sensitive personal information.

Effective Date: October 1, 2026

PART 812 – ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

Subpart 812.1 – Presolicitation

812.103 Small business.
812.103-70 Small business.

Subpart 812.2 – Solicitation, Evaluation, and Award

812.205 Solicitation provisions and contract clauses.
812.205-70 VA specific clauses.

Authority: 38 U.S.C. 8127-8128, 40 U.S.C. 121(c), 41 U.S.C. 1702, 41 U.S.C. 1901, and 48 CFR 1.301-1.304.

---

PART 812 – ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES 

Subpart 812.1 – Presolicitation 

812.103 Small business. 

812.103-70 Small business. 

• (a) The Veterans First Contracting Program applies to all VA contracts, orders, and blanket purchase agreements (BPAs) covered by this Part. Contracting officers must follow VA’s established hierarchy of small business program priorities, as identified in Part 819.
• (b) When conducting competitive procedures, contracting officers must set aside the acquisition in accordance with Part 819, if 
  • (1) market research indicates a reasonable expectation of receiving two or more offers/quotes from eligible, capable, and certified firms; and
  • (2) award can be made at a fair and reasonable price that provides best value to the Government.

 Subpart 812.2 – Solicitation, Evaluation, and Award. 

812.205 Solicitation provisions and contract clauses. 

Contracting officers have the authority to supplement solicitations or contracts for commercial products and services with any FAR or VAAR part provisions or clauses, in circumstances where it would serve the best interests of VA.   

812.205-70 VA specific clauses. 

• (a) Contracting officers must insert the clause at 852.212-71, Gray Market and Counterfeit Items, in any solicitation and contract for new medical supplies, new medical equipment, new information technology equipment or software, and maintenance of medical or information technology equipment that includes replacement parts when:
  • (1) used, refurbished, or remanufactured parts are unacceptable and 
  • (2) unauthorized resellers are unacceptable, and 
  • (3) the solicitation includes both: 
    • (i) FAR 52.212-1, Instruction to Offerors – Commercial Products and Commercial Services, and
    • (ii)FAR 52.212-2, Evaluation – Commercial Products and Commercial Services.
• (b) Contracting officers must insert the clause at 852.212-72, Gray Market and Counterfeit Items – Information Technology Maintenance Allowing Other-than-New Parts, in any solicitation and contract for the maintenance of information technology equipment that includes replacement parts when:
  • (1) used, refurbished, or remanufactured parts are acceptable, and
  • (2) the solicitation includes both:
    • (i) FAR 52.212-1, Instruction to Offerors – Commercial Products and Commercial Services, and
    • (ii) FAR 52.212-2, Evaluation – Commercial Products and Commercial Services.

Effective Date: October 1, 2026

PART 814—SEALED BIDDING

Subpart 814.2—Presolicitation

814.201 Preparation of invitations for bids.
814.202-1 Part I Schedule.
814.205 Bid samples.
814.207 Solicitation Provisions.

Subpart 814.3—Evaluation and award

814.301 Submission, modification, or withdrawal of bids.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C.1702; and 48 CFR 1.301-1.304

---

PART 814—SEALED BIDDING 

Subpart 814.2—Presolicitation 

814.201 Preparation of invitations for bids. 

814.202-1 Part I Schedule. 

• (b) Section B, Supplies or services and prices.
  • (1) When the contracting officer determines that it will be to the Government’s advantage to make an award on the basis of a summary bid, the IFB must include the following statement in Part I Schedule., Section B:
    • “The award will be made on either the bid price for individual items or the summary bid price summary for all items, whichever results in the lowest price to the Government. Therefore, to assure proper evaluation of all bids, a bidder quoting a summary bid price must also quote a price on each individual item included in the summary bid price”. 
  • (2) When a contracting officer determines that it will be to the Government’s advantage to make an award by group or groups of items, the IFB must include the following statement in Part I Schedule., Section B: 
    • Award must be made on the basis of the bid price for each identified group of items. The individual price of each line item in the group does not have to be the lowest bid received for that item. This may apply when the items in the group or groups are readily available from sources to be solicited; and one of the following applies:
      • (i) Furniture or fixtures are required for a single project and uniformity of design is desirable.
      • (ii) The articles required will be assembled and used as a unit.

 814.205 Bid samples. 

• (b) When bid samples are required, the contracting officer must include a notice in the contract Schedule that requires bidders to submit samples produced by the manufacturer whose products will be supplied under the contract.
• (e)
  • (1) Samples from successful bids must be retained for the period of contract performance. 
  • (2) If the contracting officer anticipates a claim regarding the contract, the contracting officer must require that the bid samples be retained until the claim is resolved. If there are no outstanding claims regarding the contract, the contracting officer may authorize disposal of the samples at the end of the contract term in accordance with the bidder’s instructions. 
  • (3) The contracting officer must require that samples from unsuccessful bids be retained until award. After award, these samples may be disposed of in accordance with the bidder’s instructions.

 814.207 Solicitation Provisions. 

• (a) In an invitation for bid for supplies, equipment, or services (other than construction), the contracting officer must define the extent to which VA will authorize and consider alternate bids.
  • (1) The contracting officer must include the provision at 852.214-71, Restrictions on Alternate Item(s), in the invitation when VA will consider an alternate item only where acceptable bids on a desired item are not received or the bids do not satisfy the total requirement. (For construction projects, VA will consider for acceptance an alternate specified only as a part of the basic item.)
  • (2) The contracting officer must include the provision at 852.214-72, Alternate Item(s), in the invitation when VA will consider an alternate item on an equal basis with the item specified. (For construction projects, VA will consider for acceptance an alternate specified only as a part of the basic item.)
  • (3) In addition to either of the provisions referenced in paragraphs (a)(1) or (2) of this section, the contracting officer must include the provision at 852.214-73, Alternate Packaging and Packing, in the invitation when bids will be allowed based on different packaging, unit designation, etc.
• (b) The contracting officer must include the provision at 852.214-74, Marking of Bid Samples, in the invitation, along with the provision at FAR 52.214-20, Bid Samples, when the contracting officer determines that samples are necessary to the proper awarding of a contract.

 Subpart 814.3—Evaluation and award 

814.301 Submission, modification, or withdrawal of bids. 

• (i) A notification to late bidders must specify the final date by which VA must receive evidence of timeliness. This date must be within five calendar days of the date an electronic notice is sent to the bidder, or within ten calendar days of receipt by the bidder of a notice sent by other than electronic means.

Effective Date: October 1, 2026

PART 815—CONTRACTING BY NEGOTIATION 

Subpart 815.1 – Presolicitation and Solicitation 

815.105-70 Tiered set-aside evaluation. 

AUTHORITY: 38 U.S.C. 8127 and 8128; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 815—CONTRACTING BY NEGOTIATION  

Subpart 815.1 – Source Selection Processes and Techniques  

815.105-70 Tiered set-aside evaluation.  

1. (a) Pursuant to the authority of 38 U.S.C. 8127 and under limited circumstances as set forth in this section, contracting officers may consider using a tiered set-aside evaluation approach to minimize delays in the resolicitation process.
2. (b) Tiered evaluation of offers is a procedure that may be used in competitive acquisitions when the VA Rule of Two determination indicates a set-aside is required in accordance with VAAR 802.101. Tiered evaluations can minimize delays associated with cancellation and resolicitation in the event that offers received from SDVOSB and VOSB are not acceptable. The contracting officer—
   • (1) Solicits and receives offers from targeted tiers of small business groups, with SDVOSB as the first tier and VOSB as the second tier;
   • (2) Establishes a tiered order of priority for evaluating offers that is specified in the solicitation; and  
   • (3) If no award can be made at the first tier, evaluates offers at the next lower tier, until award can be made.
3. (c) Market research, which must be conducted and documented in advance of issuing the solicitation, will inform which of the following types of tiers will be included in the solicitation—
   • (1) Tiered evaluations limited to certified SDVOSBs and VOSBs;
   • (2) Tiered evaluations including HUBZone and 8(a) small business;
   • (3) Tiered evaluations including all other small businesses; or
   • (4) Tiered evaluations including other than small businesses.
4. (d) The tiered order of priority must be consistent with VAAR 819.7004. Consideration must be given to HUBZone, 8(a), and women-owned small business concerns before evaluating offers from other small business concerns in accordance with VAAR 819.7004(b)(4).

Effective Date: October 1, 2026

PART 816—TYPES OF CONTRACTS

Subpart 816.2—Fixed-Price Contracts

816.203 Fixed-price contracts with economic price adjustment.
816.203-4 Contract clauses.

Subpart 816.5—Indefinite-Delivery Contracts

816.505-70 Requirements—supplement for mortuary services.
816.507 Additional ordering procedures for multiple-award contracts.
816.507-2 Fair opportunity procedures.

Subpart 816.7—Agreements

816.7-70 Consignment agreements.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 816—TYPES OF CONTRACTS 

Subpart 816.2—Fixed-Price Contracts 

816.203 Fixed-price contracts with economic price adjustment. 

816.203-4 Contract clauses. 

• (e) When contracting by negotiation, use the following clauses: 
  • (1) Insert the clause at 852.216-73, “Economic Price Adjustment—State Nursing Home Care for Veterans,” in solicitations and fixed price contracts subject to FAR 16.203-4(d)(1) and when changes to the Medicaid rate, as authorized by the State Medicaid Agency, will be used to calculate corresponding changes in the total contract price or the per diem prices of the agreement or contract.
  • (2) Insert the clause at 852.216-74, “Economic Price Adjustment—Medicaid Labor Rates,” in solicitations and fixed price contracts when the conditions specified in FAR 16.203-4(c)(1) apply. This clause does not apply to rates for non-Medicaid nursing homes. The clause can be modified for changes to the 10-percent maximum limit on aggregate increases, upon approval by the Head of the Contracting Activity (HCA) or designee. 
  • (3) Insert the clause at 852.216-75, “Economic Price Adjustment—Fuel Surcharge,” in solicitations and fixed price contracts that are subject to changes in the cost of fuel increases. The clause is subject to the conditions at FAR 16.203-4(d)(1). 
• (f) The contracting officer must follow procedures prescribed in FAR 16.203-4(c) and 38 CFR 51.41(b)(1) for EPA fixed price contracts based on Medicaid rates. These procedures must be used when contracting by negotiation between VA and the State Veteran Home for making payments under contracts for nursing home care for Veterans. 

Subpart 816.5—Indefinite-Delivery Contracts 

816.505-70 Requirements—supplement for mortuary services. 

Insert the clause 852.216-76, Requirements—Supplement for Mortuary Services, in contracts for mortuary services containing FAR clause 52.216-21, Requirements. The contracting officer must insert activities authorized to place orders in paragraph (e) of the clause. 

816.507 Additional ordering procedures for multiple-award contracts. 

816.507-2 Fair opportunity procedures. 

• (b) Task-order and delivery-order ombudsman. The task-order contract and delivery-order ombudsman for VA is the Deputy Senior Procurement Executive. The ombudsman will notify the contracting officer of any complaints submitted to the ombudsman. 

Subpart 816.7—Agreements 

816.7-70 Consignment agreements. 

A consignment agreement is defined as a delivery method for a specified period in which the contractor provides an item for Government use and the contractor receives reimbursement only if the item is used by the Government. Consignment agreements are permitted when the requirement for an item is immediate, ongoing, impossible to predetermine the type or model of a particular item until the need is established, and, it is determined to be in the best interest of the VA. 

Effective Date: October 1, 2026 

PART 817—SPECIAL CONTRACTING METHODS 

Subpart 817.2—Options 

817.200               Scope of subpart. 

Subpart 817.5—Interagency Acquisitions 

817.501 General. 

AUTHORITY:  38 U.S.C. 8127-8128; 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 817—SPECIAL CONTRACTING METHODS 

Subpart 817.2—Options 

817.200  Scope of subpart. 

• (a) As permitted by FAR 17.200(b), VA contracting officers may include options, as appropriate, for contracts excluded in FAR 17.200(a).

Subpart 817.5—Interagency Acquisitions 

817.501  General. 

• (a) In accordance with FAR 17.501(b), any interagency acquisition(s) to acquire goods and services on behalf of VA must comply with the provisions of 38 U.S.C. 8127-8128, to the maximum extent feasible.

Effective Date: October 1, 2026

PART 819—SMALL BUSINESS PROGRAMS

819.002 General policy.

Subpart 819.1—Presolicitation

819.104 Small business set-asides.
819.108  Contracting with the Small Business Administration (the 8(a) Pro-gram)
819.108-1 General.
819.109 Small business subcontracting plans.

Subpart 819.70—The VA Veterans First Contracting Program

819.7001 General.
819.7002 Applicability.
819.7003 Eligibility.
819.7004 Contracting order of priority.
819.7005 VA service-disabled veteran-owned small business set-aside procedures.
819.7006 VA veteran-owned small business set-aside procedures.
819.7007 Sole source awards to service-disabled veteran-owned small businesses.
819.7008 Sole source awards to veteran-owned small businesses.
819.7009 Limitations on subcontracting compliance requirements.
819.7010 Contract Clauses

Authority: 15 U.S.C. 631, 15 U.S.C. 637(d)(4)(E); 38 U.S.C. 8127-8128; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 819—SMALL BUSINESS PROGRAMS 

819.002  General policy. 

• (a) It is VA policy that small business concerns owned and controlled by Service Disabled Veteran Owned Small Businesses (SDVOSB) and Veteran Owned Small Businesses (VOSB) must have maximum practicable opportunity to participate in VA acquisitions, consistent with the priorities and preferences prescribed in 819.70 under the Veterans First Contracting Program.

Subpart 819.1—Presolicitation 

819.104 Small business set-asides.

• (a) The following principles apply to VA acquisitions under this subpart:
  • (1) Before setting aside or reserving an acquisition for small businesses, contracting officers must comply with subpart 808.1 and subpart 819.70 for VA SDVOSB/VOSB priorities and preferences. 
  • (2) Pursuant to 38 U.S.C. 8127(d), set-asides for SDVOSBs/VOSBs are mandatory whenever a contracting officer has a reasonable expectation of receiving two or more offers/quotes from eligible, capable firms, and that an award can be made at a fair and reasonable price.  
• (b) The set-aside principles in this section apply to VA acquisitions even when a procuring activity is meeting its goals or is planning the use of an interagency agreement, Federal Supply Schedule, or a multiple award contract, including a Governmentwide contract vehicle. 
• (c) The requirements in this section apply to all VA acquisitions under this subpart, including reserves, orders, and BPAs under multiple award contracts, GSA Federal Supply Schedule contracts, and contracts awarded by another agency. A set-aside restricted to SDVOSBs/VOSBs pursuant to subpart 819.70 satisfies competition requirements in FAR part 6, as well as fair opportunity requirements for orders under multiple-award contracts. 

819.108 Contracting with the Small Business Administration (the 8(a) Program) 

819.108-1  General. 

• (a) The Small Business Administration (SBA) and the Department of Veterans Affairs (VA) have entered into a Partnership Agreement delegating SBA’s contract execution and administrative functions to VA.  Contracting officers must follow the alternate procedures in the Partnership Agreement and this subpart, as applicable, to award an 8(a) contract. In the event the Partnership Agreement ceases to be in effect, contracting officers must follow the procedures in FAR 19.108. 
• (b) The Partnership Agreement provides that SBA can release procurements already in the program whenever an SDVOSB or VOSB set-aside is feasible.  

819.109 Small business subcontracting plans. 

• (a) VA’s current subcontracting goals, at a minimum, must be inserted into all solicitations which contain FAR clause 52.219-9. 
• (b) Subcontracting goals should be expressed as a percentage of total dollars to be subcontracted unless otherwise stated in the solicitation. 
• (c) If an offeror proposes to use an SDVOSB/VOSB subcontractor for the purpose of receiving SDVOSB/VOSB evaluation factors credit, the contracting officer must ensure that the offeror, if awarded the contract, actually uses the proposed subcontractor or another SDVOSB/VOSB for that subcontract or for work of similar value, in accordance with clause 852.215-78, Subcontracting Commitments.  
• (d) The contracting officer must insert clause 852.219-70, Small Business Subcontracting Plan Minimum Requirements, in solicitations and contracts that include FAR clause 52.219-9, Small Business Subcontracting Plan. To the maximum extent possible, the contracting officer must ensure that individual subcontracting plans submitted by offerors subject to this clause include SDVOSB/VOSB goals that are commensurate with the annual VA SDVOSB/VOSB subcontracting goals. 
• (e) The contracting officer must insert the clause at 852.219-77, Service-Disabled Veteran-Owned Small Business and Veteran-Owned Small Business Subcontracting Plan Requirements, in solicitations and contracts that are not set aside for SDVOSBs or VOSBs.  
• (f) The contracting officer must insert the clause at 852.219-78, Subcontracting Commitments, in solicitations and contracts that include VAAR provision 852.219-77, Service-Disabled Veteran-Owned Small Business and Veteran-Owned Small Business Subcontracting Plan Requirements.  

Subpart 819.70—The VA Veterans First Contracting Program 

819.7001  General. 

• (a) Sections 502 and 503 of Public Law 109-461, the Veterans Benefits, Health Care, and Information Technology Act of 2006, as amended (38 U.S.C. 8127- 8128), authorizes a VA specific program to increase contracting opportunities for eligible small business concerns owned and controlled by SDVOSB and VOSB. 
• (b) Contracting officers must award contracts by restricting competition to eligible SDVOSBs/VOSBs. The contracting officer may use other preferences in this subpart as appropriate. 
• (c) The attainment of goals or the use of interagency vehicles or Governmentwide contract vehicles (i.e., Federal Supply Schedules (FSS)) does not relieve the contracting officer from using SDVOSB/VOSB set asides and other preferences as provided in subpart 819.70.  Moreover, if the VA enters into a contract, agreement, or other arrangement with any governmental entity to acquire goods or services, the entity acting on behalf of the VA through such an interagency acquisition or other agreement will comply, to the maximum extent feasible, with the provisions of the Veterans First Contracting Program as set forth in this subpart. 
• (d) When an offer of an SDVOSB/VOSB prime contractor includes a proposed team of small business subcontractors and specifically identifies the first-tier subcontractor(s) in the proposal, the contracting officer must consider the capabilities, past performance, and experience of the first-tier subcontractor as if it were the SDVOSB/VOSB own capabilities, past performance, and experience if the SDVOSB/VOSB does not independently demonstrate them. 
• (e) 38 U.S.C. 8128 provides the authority for VA to give SDVOSBs/VOSBs priority in the awarding of contracts and subcontracts using evaluation preferences. 

819.7002  Applicability. 

• (a) Unless otherwise exempted by law, this subpart applies to VA contracting activities and contracts including BPAs and orders under FAR part 8 and acquisition of commercial products or commercial services under FAR part 12. In addition, this subpart applies to VA contractors, their subcontractors and to any Government entity that has a contract, agreement, or other arrangement with the VA to acquire goods and services on behalf of the VA.  

819.7003  Eligibility. 

• (a) SDVOSB/VOSB certification, size eligibility, challenges, and appeals are governed by the Small Business Administration (SBA) regulations at 13 CFR parts 121, 128, and 134, except when directed otherwise by this part. 
• (b) At the time of submission of offers/quotes, and at the time of award of any contract, the offeror must represent to the contracting officer that it is a— 
  • (1) SDVOSB or VOSB eligible under this subpart; 
  • (2) Small business concern under the North American Industry Classification System (NAICS) code assigned to the acquisition; and 
  • (3) Listed as a SDVOSB/VOSB on the SBA’s Small Business Search (SBS). 
• (c) A joint venture is considered eligible if it meets the requirements in 13 CFR part 128, and the joint venture is listed in SBS. 
• (d) To receive a benefit under the Veterans First Contracting Program, an otherwise eligible SDVOSB/VOSB must also meet SBA requirements at 13 CFR parts 121 and 125 including nonmanufacturer rule requirements and limitations on subcontracting. The nonmanufacturer rule and the limitations on subcontracting requirements apply to all SDVOSB and VOSB set-aside and sole source contracts above the micro-purchase threshold. An offeror must submit a certification of compliance to be considered eligible for any award under this part. 
• (e) Any business concern that is determined by VA to have willfully and intentionally misrepresented a company’s SDVOSB/VOSB status is subject to debarment from contracting with the Department for a period of not less than five years. This includes the debarment of all principals in the business. 

819.7004  Contracting order of priority. 

• (a) In determining the acquisition strategy applicable to a procurement requirement not otherwise covered under subpart 808.1, the contracting officer must observe the order of contracting preferences in 38 U.S.C. 8127(h). 
• (b) Preferences for awarding contracts to small business concerns must be applied in the following order of priority:  
  • (1) Contracts awarded to small business concerns owned and controlled by Veterans with service-connected disabilities as provided in this subpart. 
  • (2) Contracts to small business concerns owned and controlled by Veterans that are not covered by paragraph (b)(1) of this section as provided in this subpart. 
  • (3) Contracts awarded pursuant to— 
    • (i) Section 8(a) of the Small Business Act (15 U.S.C. 637(a) as provided in FAR subpart 19.108; or 
    • (ii) Section 31 of the Small Business Act (15 U.S.C. 657a) as provided in FAR subpart 19.105. 
  • (4) Contracts awarded pursuant to any other small business set aside contracting preference. 

819.7005  VA service-disabled veteran-owned small business set-aside procedures.  

• (a) The contracting officer must consider SDVOSB set-asides before considering VOSB set-asides. Except as authorized by subpart 808.1 or 819.70, the contracting officer must set-aside contract actions for competition restricted to SBS-listed SDVOSB upon a reasonable expectation based on market research that— 
  • (1) Offers will be received from two or more SBS-listed SDVOSBs; and 
  • (2) Award can be made at a fair and reasonable price. 
• (b) When conducting SDVOSB set-asides, the contracting officer must ensure that— 
  • (1) Offerors are registered in the SBS database at the time of submission of offers and at time of award; and 
  • (2) Offerors affirmatively represent their SDVOSB and small business status based on the size standard corresponding to the North American Industry Classification System (NAICS) code assigned to the solicitation/contract. 
• (c) If the contracting officer receives only one acceptable offer at a fair and reasonable price from an SBS-listed SDVOSB, the contracting officer may make an award to that concern. If the contracting officer receives no acceptable offers from eligible SDVOSBs, the set-aside must be withdrawn and the requirement, if still valid, set aside for VOSB competition if warranted or otherwise procured using the most appropriate strategy based on the results of market research. 

819.7006  VA veteran-owned small business set-aside procedures. 

• (a) The contracting officer must consider SDVOSB set-asides before considering VOSB set-asides. Except as authorized by subpart 808.1 or 819.70, the contracting officer must set aside contract actions for competition restricted to SBS-listed VOSBs upon a reasonable expectation based on market research that— 
  • (1) Offers will be received from two or more SBS-listed VOSBs and; 
  • (2) Award can be made at a fair and reasonable price. 
• (b) When conducting VOSB set-asides, the contracting officer must ensure that— 
  • (1) Offerors are registered in the SBS database at the time of submission of offers and at time of award; and 
  • (2) Offerors affirmatively represent their VOSB and small business status based on the size standard corresponding to the NAICS code assigned to the solicitation/contract. 
• (c) If the contracting officer receives only one acceptable offer at a fair and reasonable price from an eligible SBS-listed VOSB, the contracting officer may make an award to that concern. If the contracting officer receives no acceptable offers from eligible VOSBs, the set-aside must be withdrawn and the requirement, if still valid, set aside for other small business programs in accordance with 819.7004 or otherwise procured using the most appropriate strategy based on the results of market research. 

819.7007  Sole source awards to service-disabled veteran-owned small businesses. 

• (a) A contracting officer may award a contract to an SBS-listed SDVOSB using other than competitive procedures provided— 
  • (1) The anticipated award price of the contract (including options) will not exceed $5 million; 
  • (2) The SDVOSB has been determined to be a responsible contractor with respect to performance; and 
  • (3) In the estimation of the contracting officer contract award can be made at a fair and reasonable price that offers best value to the Government. 
• (b) The decision to make a sole source award is a business decision wholly within the discretion of the contracting officer. To ensure that opportunities are available to the broadest number of SDVOSBs, this authority is to be used only when in the best interest of the Government and documented as required by Part 806. 
• (c) When conducting a SDVOSB sole source acquisition, the contractor must meet eligibility requirements in 819.7003. 
• (d) A procurement requirement estimated to exceed the legislative threshold of $5 million must not be split or subdivided to permit the use of this SDVOSB sole source authority.  

819.7008  Sole source awards to veteran-owned small businesses.  

• (a) A contracting officer may award a contract to a veteran-owned small business (VOSB) using other than competitive procedures provided— 
  • (1) The anticipated award price of the contract including options will not exceed $5 million; 
  • (2) The VOSB has been determined to be a responsible contractor with respect to performance; 
  • (3) In the estimation of the contracting officer contract award can be made at a fair and reasonable price that offers best value to the Government; and 
  • (4) No responsible SDVOSB has been identified. 
• (b) The decision to make a sole source award is a business decision wholly within the discretion of the contracting officer. To ensure that opportunities are available to the broadest number of VOSBs, this authority is to be used only when in the best interest of the Government and documented as required by Part 806. 
• (c) When conducting a VOSB sole source acquisition, the contractor must meet eligibility requirements in 819.7003. 
• (d) A procurement requirement estimated to exceed the legislative threshold of $5 million must not be split or subdivided to permit the use of this VOSB sole source authority. 

819.7009  Limitations on subcontracting compliance requirements. 

• (a) A contract awarded under this subpart is subject to the SBA limitations on subcontracting requirements in 13 CFR 125.6, provided that— 
  • (1) Only SBS-listed SDVOSBs are considered eligible and/or “similarly situated” under an SDVOSB sole source or set-aside. 
  • (2) A VOSB is subject to the same limitations on subcontracting that apply to an SDVOSB. 
  • (3) Any SBS-listed SDVOSB/VOSB is considered eligible and/or “similarly situated” under a VOSB sole source or set-aside. 
• (b) Pursuant to the authority of 38 U.S.C. 8127(l)(2), a contracting officer can award a contract under this subpart only after obtaining from the offeror a certification that the offeror will comply with the limitations on subcontracting requirement as provided in the solicitation and which must be included in the resultant contract in full text. 
  • (1) The applicable limitation on subcontracting certificate of compliance clause must be completed, executed, and returned by the offeror, preferably with the offeror’s bid, quotation, or proposal. 
  • (2) The Government cannot award a contract to offerors that do not return a properly completed and executed limitation on subcontracting certificate of compliance clause, which will be used to determine eligibility. A missing executed limitation on subcontracting certificate of compliance clause may be requested of the offeror any time prior to contract award, and any such request will not constitute the opening of negotiations. 
• (c) An otherwise eligible first-tier subcontractor must meet the NAICS size standard assigned by the prime contractor and be listed in SBS to count as similarly situated. Any work that a first-tier SBS-listed subcontractor further subcontracts will count towards the percent of subcontract amount that cannot be exceeded. 
• (d) An SDVOSB/VOSB awarded a contract on the basis of a set-aside, sole source, or an evaluation preference is required to comply with the limitations on subcontracting— 
  • (1) For a total or partial set-aside IDIQ contract awarded to and administered by a single agency, the period of time used to determine compliance with the limitations on subcontracting is generally the base term and each subsequent option period. The contracting officer retains discretion to require compliance measurement at the order level where circumstances warrant; or 
  • (2) For a multi-agency set-aside contract under which more than one agency may issue orders, the ordering agency must use the period of performance for each order to determine and monitor compliance with the limitations on subcontracting for that order. 
• (e) The contracting officer may also, at their discretion, require the contractor to demonstrate its compliance with the limitations on subcontracting at any time during performance of the contract, and upon completion of a contract if the information regarding such compliance is not already available to the contracting officer. Evidence of compliance includes, but is not limited to, invoices, copies of subcontracts, or a list of the value of tasks performed.  
• (f) Pursuant to Public Law 116-183, the Office of the Small and Disadvantaged Business Utilization (OSDBU) and Chief Acquisition Officer (CAO), will implement a process to monitor compliance with the requirement in this section. The OSDBU and CAO must jointly refer any violations or suspected violations to the VA Office of Inspector General.  This referral obligation does not relieve contracting officers of their obligation to report suspected violations of law to the Office of the Inspector General (OIG). 
  • (1) If the Secretary or designee determines in consultation with the Inspector General that an SDVOSB/VOSB awarded a contract pursuant to 38 U.S.C. 8127 did not act in good faith with respect to the requirements described in 819.7003, such SDVOSB/VOSB must be subject to any or all of the following— 
    • (i) Referral to the VA Suspension and Debarment Committee; 
    • (ii) A fine under section 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and 
    • (iii) Prosecution for violating 18 U.S.C. 1001. 
  • (2) The Inspector General must report to the Congress annually on the number of referred violations and suspected violations, and the disposition of such violations, including the number of small business concerns suspended or debarred from federal contracting or referred for Department of Justice prosecution. 

819.7010 Contract clauses. 

• (a) The contracting officer must insert clause 52.219-27, Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Eligible Under the SDVOSB Program, or clause 852.219-74, VA Notice of Total Set-Aside for Veteran-Owned Small Businesses, as applicable, in solicitations, orders and contracts that are set-aside, reserved, evaluated or awarded under this part. This includes sole source awards as well as multiple-award contracts when orders may be set aside for SDVOSBs/VOSBs as described in FAR part 8.  
• (b) The contracting officer must insert the clause at 852.219-75, VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction, in solicitations and contracts for services and construction, including BPAs, BOAs, and orders, for acquisitions that are evaluated, set-aside, or awarded on a sole source basis under this subpart. This includes orders awarded under multiple-award contracts to SDVOSBs/VOSBs. 
• (c) The contracting officer must insert the clause at 852.219-76, VA Notice of Limitations on Subcontracting—Certificate of Compliance for Supplies and Products, in solicitations and contracts for supplies or products, including BPAs, BOAs, and orders, for acquisitions that are to be awarded on the basis of an SDVOSB/VOSB set-aside, sole source, or an evaluation preference under this subpart. This includes orders awarded under multiple-award contracts to SDVOSBs/VOSBs. The contracting officer must tailor clause 852.219-76, and paragraph (a)(2)(iii) of the clause, as appropriate.  
  • (1) The contracting officer must use the alternate form of the clause at 852.219-76, VA Notice of Limitations on Subcontracting—Certificate of Compliance for Supplies and Products, if the acquisition is a multiple item acquisition pursuant to 13 CFR 121.406(d). 
    • (i) Orders issued under a single‑agency VA multiple‑award contract set aside or awarded under this subpart are exempt from separate order‑level limitations on subcontracting terms when the base contract already includes limitations on subcontracting requirements and measurement provisions. In such cases, the limitations on subcontracting established in the parent contract govern all orders issued under that contract, and no duplicative order‑specific limitations on subcontracting terms are required. 
• (d) Orders issued under a single‑agency VA multiple‑award contract set aside or awarded under this subpart are exempt from separate order‑level limitations on subcontracting terms when the base contract already includes limitations on subcontracting requirements and measurement provisions. In such cases, the limitations on subcontracting established in the parent contract govern all orders issued under that contract, and no duplicative order‑specific limitations on subcontracting terms are required.

Effective Date: October 1, 2026

PART 822—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Subpart 822.3—Contract Work Hours and Safety Standards Act

822.301-1 General.
822.301-2 Contract clause.

Subpart 822.22— Combating Anti-Semitism

822.2204 Solicitation provisions and contract clauses.

Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 29 CFR 5.15(d); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 822—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 

Subpart 822.3—Contract Work Hours and Safety Standards Act 

822.301-1  General 

• (e) For contracts providing nursing home care for veterans, the Secretary of Labor has allowed a variation to the requirements of Contract Work Hours and Safety Standards (40 U.S.C. 3701) regarding the payment of overtime (see 29 CFR 5.15(d)(2)). The variation provides that overtime may be calculated on a basis other than a 40-hour workweek (as an alternate work period) when—
  • (1) Due to operational necessity or convenience, a work period of 14 consecutive days may be accepted in lieu of the workweek of 7 consecutive days for the purpose of computing overtime compensation, pursuant to an agreement or understanding arrived at between the contractor and the contractor’s employees before performance of the work; and
  • (2) If the contractor’s employees receive overtime compensation for employment in excess of 8 hours in any workday and in excess of 80 hours in such 14-day period at a rate not less than 11/2 times the regular rate at which the individual is employed, computed in accordance with the requirements of the Fair Labor Standards Act of 1938, as amended.

822.301-2 Contract clause. 

The contracting officer must insert the clause at 852.222-70, Contract Work Hours and Safety Standards—Nursing Home Care for Veterans, in solicitations and contracts for nursing home care for veterans. The contractor must flow down this clause and insert in all subcontracts, at any tier. 

Subpart 822.22— Combating Anti-Semitism 

822.2204 Solicitation provisions and contract clauses. 

Contracting officers must insert the clause at 852.222-71, Combating Anti-Semitism, in solicitations and contracts that exceed the simplified acquisition threshold.

Effective Date: October 1, 2026

PART 823–SUSTAINABLE ACQUISITION, MATERIAL SAFETY, AND POLLUTION PREVENTION

Subpart 823.3—Material Safety

823.304-70 Contract clause.

Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 823— SUSTAINABLE ACQUISITION, MATERIAL SAFETY, AND POLLUTION PREVENTION 

Subpart 823.3—Material Safety 

823.304-70  Contract clause. 

The contracting officer must insert clause 852.223-71, Safety and Health, in solicitations and contracts that involve hazardous materials or hazardous operations for the following types of requirements: 

• (1) Research, development, or test projects.
• (2) Transportation of hazardous materials.
• (3) Construction.

Effective Date: October 1, 2026

PART 824 – PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Subpart 824.1 – Protection of Individual Privacy

824.101 Definitions.
824.103 Procedures.
824.103-70 Protection of privacy-Business Associate Agreements.

Subpart 824.2 – Freedom of Information Act

824.203 Policy

AUTHORITY: 5 U.S.C. 552, 38 CFR 1.550-1.562 and 1.575-1.584; and 48 CFR 1.301-1.304.

---

PART 824 – PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION  

Subpart 824.1 – Protection of Individual Privacy 

824.101 Definitions. 

As used in this subpart- 

Business associate means an entity or individual (excluding members of the Veterans Health Administration (VHA) workforce), company, organization, or another covered entity, as defined by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) (P.L. 104-191) Privacy Rule (45 CFR part 160), that: 1) Performs or assists in performing functions or activities on behalf of VA which involve the creation, receipt, maintenance, transmission, or access to, protected health information (PHI), or 2) Provides supporting services to or for VA where the provision of the service involves the disclosure of PHI to a contractor by VA. This also includes any subcontractor of a business associate that creates, receives, maintains, or transmits PHI or that stores, generates, accesses, exchanges, processes, or utilizes such PHI on behalf of the business associate. 

Business Associate Agreement (BAA) means the agreement, as dictated by the HIPAA Privacy Rule (45 CFR part 160), between VA and a business associate, which must be entered into in addition to the underlying contract for services and before any release of PHI can be made to the business associate, in order for the business associate to perform certain functions or activities on behalf of VA. 

824.103 Procedures. 

See 38 CFR 1.575 through 1.584 for VA regulations that implement Privacy Act of 1974. 

824.103-70 Protection of privacy—Business Associate Agreements (BAA).  

Contractors performing under VA contracts subject to HIPAA and/or PHI protections must comply with these requirements and the clause (852.240-76, Information and Information Systems Security) prescribed at 840.303-70. 

• (a) HIPAA Business Associate Agreement. Under HIPAA Privacy and Security Rules, PHI is safeguarded by having a BAA with contractors who handle PHI. This agreement ensures contractors use PHI for its intended purposes, provide necessary protections, and adhere to disclosure restrictions. 
• (b) HIPAA Covered Entity. VHA is the only HIPAA covered entity within the VA. 
• (c) Procedures and Requirements for Contractors. Contractors or entities that handle PHI must execute BAAs to become business associates. This includes: 
  • (1) VA components/staff that must access PHI to provide services.
  • (2) Contractors supporting VHA directly or indirectly via VA contracts and agreements that require a BAA.
  • (3) Prime contractors must ensure their subcontractors who handle PHI comply with HIPAA by also executing a BAA. Subcontractors must provide the same protections and follow the same disclosure restrictions as required by HIPAA.

Subpart 824.2—Freedom of Information Act 

824.203 Policy.  

See 38 CFR 1.550 through 1.562 for VA regulations that implement Freedom of Information Act.

Effective Date: May 12, 2026

PART 825 – FOREIGN ACQUISITION

Subpart 825.70 – Make PPE in America Act (DEVIATION)

825.7000 Scope of subpart.
825.7001 Definitions.
825.7002 Policy.
825.7003 Exceptions.
825.7004 Solicitation provision and contract clause.
825.7000 Scope of subpart.

AUTHORITY: 38 U.S.C. 8127-8128 and 8151-8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 825 – FOREIGN ACQUISITION

Subpart 825.70 – Make PPE in America Act (DEVIATION)

This subpart implements restrictions on the acquisition of certain PPE imposed by the Make PPE in America Act (Sections 70951 – 70953 of Division G, Title IX, Subtitle C of the Infrastructure Investment and Jobs Act (Pub. L. 117-58)).

825.7001 Definitions.

As used in this subpart –

• (a) Component, means an article, material, or supply incorporated directly into an end product of PPE.

• (b) Domestic PPE, means PPE, including the materials and components thereof, that is grown, reprocessed, reused, or produced in the United States.

• (c) Foreign -made domestic PPE, means PPE that is assembled outside the United States containing only materials and components that are grown, reprocessed, reused, or produced in the United States.
• (d) Foreign PPE, means PPE other than domestic PPE or foreign-made domestic PPE.

• (e) PPE means surgical masks, respirator masks and powered air purifying respirators and required filters, face shields and protective eyewear, gloves, disposable and reusable surgical and isolation gowns, head and foot coverings, and other gear or clothing used to protect an individual from the transmission of disease.

• (f) United States, means the 50 States, the District of Columbia, and the possessions of the United States.

825.7002 Policy.

The following restrictions apply to all contracts and orders for the purchase of PPE. Except as provided in subsection 825.7003, contracting officers must:

• (a) Purchase domestic PPE.

• (b) Any contract for PPE must have a duration of at least two years, plus any option periods necessary.

825.7003 Exceptions.

Acquisitions in the following categories are not subject to the restrictions in 825.7002:

• (a) Acquisitions of an item of PPE, or component thereof, otherwise covered in 825.7002, after maximizing to the extent feasible sources consistent with 825.7002, when the VA Senior Procurement Executive (SPE):
  • (1) Maximizes sources for foreign-made domestic PPE; and
  • (2) Certifies every 120 days that it is necessary to procure PPE under alternative procedures to respond to the immediate needs of a public health emergency.

• (b) Acquisitions of an item of PPE, or component thereof, including those described in paragraph (a) —
  • (1) That is, or that includes, a material listed in FAR 25.104 as one for which a nonavailability determination has been made; or
  • (2) As to which the SPE determines that a sufficient quantity of a satisfactory quality that is grown, reprocessed, reused, or produced in the United States cannot be procured as, and when, needed at United States market prices; and
  • The SPE certifies every 120 days that it is necessary to procure PPE to respond to the immediate needs of a public health emergency.

825.7004 Solicitation provision and contract clause.

• (a) Insert the clause at 852.225-70, Made in America—PPE, in solicitations and contracts, regardless of dollar value, when procuring any item covered under 825.7002.

• (b) Insert the provision at 852.225-71, Made in America—PPE, in solicitations containing the clause at 852.225-70.

Effective Date: October 1, 2026

PART 826–OTHER SOCIOECONOMIC PROGRAMS

Subpart 826.2—Major Disaster and Emergency Assistance Activities

826.202-1 Policy.

Authority: 38 U.S.C. 8127-8128; 40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 826–OTHER SOCIOECONOMIC PROGRAMS 

Subpart 826.2—Major Disaster and Emergency Assistance Activities 

826.202-1  Policy 

• (a)
  • (1) The contracting officer must determine whether a local area set-aside should be further restricted to verified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) or Veteran-Owned Small Businesses (VOSBs) in accordance with Part 819.

 

 

Effective Date: October 1, 2026

Part 827–PATENTS, DATA, AND COPYRIGHTS

Subpart 827.3—Patent Rights under Government Contracts

827.306 Licensing background patent rights to third parties.

Authority: 38 U.S.C. 8123; 38 U.S.C. 8153; 38 U.S.C. 8303; 40 U.S.C. 121(c); 41 U.S.C. 1702; 41 U.S.C. 1707; and 48 CFR 1.301-1.304.

---

Part 827–PATENTS, DATA, AND COPYRIGHTS 

Subpart 827.3 – Patent Rights under Government Contracts 

827.306 Licensing background patent rights to third parties. 

• (b) The contracting officer must notify the contractor of the determination by certified or registered mail, or by any other method that provides evidence of receipt, including electronic methods. 

Effective Date: October 1, 2026

PART 828—BONDS AND INSURANCE 

Subpart 828.1—Bonds and Other Financial Protections

828.106 Administration.
828.106-4 Contract clause.

Subpart 828.3—Insurance 

828.306 Insurance under fixed-price contracts. 

Subpart 828.70—Indemnification of Contractors for Medical Research or Development Contracts

28.7000 Scope of subpart.
828.7001 Extent of indemnification.
828.7002 Financial protection.
828.7003 Indemnification clause.

AUTHORITY: 38 U.S.C. 8127-8128 and 8151-8153; 40 U.S.C. 121(c); 41 U.S.C 1121; 41 U.S.C. 1702; and 48 CFR 1.301-1.304. 

---

Subpart 828.1—Bonds and Other Financial Protections 

828.106 Administration.

828.106-4 Contract clause.

• (c) The contracting officer must insert the clause at 852.228-70, Bond Premium Adjustment, in solicitations and contracts when performance and payment bonds or payment protection is required.

Subpart 828.3—Insurance

828.306 Insurance under fixed-price contracts.

• (a) The contracting officer must insert the provision at 852.228-71, Indemnification and Insurance, in solicitations when utilizing term contracts or contracts of a continuing nature for ambulance, automobile and aircraft service.

Subpart 828.70—Indemnification of Contractors for Medical Research or Development Contracts

828.7000 Scope of subpart.

• (a) As used in this subpart, the term “contractor” includes subcontractors of any tier under a contract containing the indemnification clause prescribed by 828.7003.
• (b) This subpart sets forth the policies and procedures concerning indemnification of contractors performing contracts involving medical research or research and development that involve risks of an unusually hazardous nature.
• (c) The authority to indemnify the contractor under this subpart does not create any rights to third parties that do not exist by law.

828.7001 Extent of indemnification.

• (a) A contract for medical research or development may provide that the Government will indemnify the contractor against losses or liabilities specified in paragraphs (b) and (c) of this section if all of the following apply:
  • (1) The contract work involves a risk of an unusually hazardous nature.
  • (2) The losses or liabilities arise out of the direct performance of the contract.
  • (3) The losses or liabilities are not covered by the financial protection required under 828.7002.
• (b) The Government may indemnify a contractor for liability (including reasonable expenses of litigation or settlement) to third persons for death, bodily injury, or loss of or damage to property from a risk that the contract defines as unusually hazardous. The indemnification will not cover liability under State or Federal worker’s injury compensation laws to employees of the contractor who are both:
  • (1) Employed at the site of the contract work; and
  • (2) Working on the contract for which indemnification is granted.
• (c) The Government may indemnify the contractor for loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous.
• (d) A contract that provides for indemnification in accordance with this subpart must also require that:
  • (1) The contractor must notify the contracting officer of any claim or suit against the contractor for death, bodily injury, or loss of or damage to property; and
  • (2) The Government may choose to control or assist in the defense of any suit or claim for which indemnification is provided in the contract.

828.7002 Financial protection.

• (a) A contractor must have and maintain an amount of financial protection to cover liability for third persons and loss of or damage to the contractor’s property that meets one of the following:
  • (1) The maximum amount of insurance available from private sources; or
  • (2) A lesser amount that the Secretary establishes after taking into consideration the cost and terms of private insurance.
• (b) Financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial capability, or a combination that provides the maximum amount required. If a contractor elects to self-insure, the contractor must provide the contracting officer, before award, proof of financial responsibility up to the maximum amount required.

823.7003 Indemnification clause.

The contracting officer must include the clause, 852.228-73, “Indemnification of Contractor—Hazardous Research Projects” in contracts and solicitations that indemnify a contractor for liability (including reasonable expenses of litigation or settlement) to third person for death, bodily injury, or loss of or damage to property from a risk that the contract defines in the performance work statement, the statement of work, or the statement of objectives as unusually hazardous.

Effective Date: October 1, 2026

PART 829—TAXES

829.000 Scope of part.

Subpart 829.2 – Federal Excise Taxes.

829.203 Other Federal tax exemptions.
829.203-70 Tax exemptions for alcohol products.

Authority: 26 U.S.C. 5214(a)(2), 7510; 40 U.S.C. 121(c); 41 U.S.C. 1303(a)(2); 1702; and 48 CFR 1.301-1.304.

---

PART 829—TAXES 

829.000 Scope of part. 

This part outlines the policies and procedures for exempting alcohol products purchased for VA use from federal taxation. 

Subpart 829.2 – Federal Excise Taxes. 

829.203 Other Federal tax exemptions. 

829.203-70 Tax exemptions for alcohol products. 

• (a) General. 
  • (1) VA is authorized to purchase alcohol products, including spirits and wine, without paying federal taxes when used for non-beverage purposes, in accordance with Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations outlined in 27 CFR parts 1 through 39. According to 27 CFR § 19.426, U.S. government agencies may obtain tax-free spirits by applying for a permit using TTB Form 5150.33 or by utilizing an existing permit issued on ATF Form 1444. This provision allows the VA to acquire alcohol products tax-free when following the procedures specified by the TTB and using the appropriate permit for approved non-beverage purposes such as research, laboratory analyses, or medicinal uses. 
  • (2) Contractors are required to establish a basis for tax exemption and obtain the necessary permit prior to purchasing spirits. Upon completion of the purchase, the permit must be returned in accordance with applicable regulations.

Effective Date: October 1, 2026

PART 831—CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 831.70–Contract Cost Principles and Procedures for Veterans Services

831.7000  Scope of subpart.
831.7000-1 Definitions.
831.7001 Allowable costs and negotiated prices under vocational rehabilitation and education contracts.
831.7001-1 Tuition.
831.7001-2 Special services or courses.
831.7001-3 Institution-purchased books, supplies, and equipment.
831.7001-4 Medical services and hospital care.
831.7001-5 Consumable instructional supplies.
831.7001-6 Reimbursement for other supplies and services.

AUTHORITY: 38 U.S.C. Ch. 31; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C 1702; and 48 CFR 1.301-1.304.

---

PART 831—CONTRACT COST PRINCIPLES AND PROCEDURES 

Subpart 831.70–Contract Cost Principles and Procedures for Veterans Services 

831.7000  Scope of subpart. 

This subpart contains general cost principles and procedures for the determination and allowance of costs or negotiation of prices under cost reimbursement or fixed-price contracts for providing vocational rehabilitation, education, and training to eligible Veterans under 38 U.S.C. chapter 31, (referred to as a “chapter 31 program”).  This subpart applies to contracts with educational institutions as well as to contracts with commercial and non-profit organizations. 

831.7000-1 Definitions. 

Chapter 31 refers to the vocational rehabilitation and employment (VR&E) program that provides training and rehabilitation for Veterans with service-connected disabilities under chapter 31 of Title 38 U.S.C. 

Consumable instructional supplies means those supplies which are required for instruction in the classroom, shop school, and laboratory of an educational institution, which are consumed, destroyed, or expended by either the student, instructor or both in the process of use and which have to be replaced at frequent intervals without adding to the value of the institution’s physical property. 

Similarly circumstanced non-Veteran student means a student in equal or like situations as a person who is neither receiving educational or training benefits under chapter 31 or chapter 33 of Title 38 U.S.C. or the savings provisions of section 12(a) of Public Law 85-857, nor having all or part of tuition fees or other charges paid by the educational institution. 

Work adjustment training means a specialized structure program that is facility or community based and designated to assist an individual in acquiring or improving work skills, work behaviors, work tolerance, interpersonal skills or work ethics. 

831.7001 Allowable costs and negotiated prices under vocational rehabilitation and education contracts.  

1.  Tuition. 
   1. (a) Tuition and enrollment fees will be paid at the institution’s customary amount that—
      1. (1) Does not exceed the tuition charged to similarly circumstanced non-Veteran students; and
      2. (2) Is equal to the lowest price offered or published for the entire course, semester, quarter, or term. 
   2. (b) The cost of the Veteran student’s tuition and fees under a contract must be offset by— 
      1. (1) Any amount of tuition and fees that are waived by a State or other government authority; or 
      2. (2) Any amounts the Veteran student receives from a fellowship, scholarship, grant-in-aid, assistantship, or similar award, that limits its use to payment of tuition, fees, or other charges that VA normally pays as part of a 38 U.S.C. chapter 31 program. 
   3. (c) VA will not pay tuition or incidental fees to institutions or establishments furnishing apprentice or on-the-job training. VA may elect to pay charges or expenses that fall into either of the following categories: 
      1. (1) Charges customarily made by a nonprofit workshop or similar establishment for providing work adjustment training to similarly circumstanced non-Veteran students even if the trainee receives an incentive wage as part of the training. 
      2. (2) Training expenses incurred by an employer who provides on-the-job training following rehabilitation to the point of employability when VA determines that the additional training is necessary. 

831.7001-2 Special services or courses. 

Special services or courses are those services or courses that VA requests that are supplementary to those the institution customarily provides for similarly circumstanced non-Veteran students and that the contracting officer considers to be necessary for the rehabilitation of the trainee. VA will negotiate the costs/prices of special services or courses prior to ordering them. 

831.7001-3 Institution-purchased books, supplies, and equipment. 

• (a) Reimbursement for books, supplies, and equipment. VA will provide reimbursement for books, equipment, or other supplies of the same variety, quality, or amount that all students taking the same course or courses are customarily required to own personally. VA will provide reimbursement for items the institution does not specifically require for pursuit of the course if VA determines that such items are needed because of the demands of the course, general possession by other students, and the disadvantage imposed on a Veteran student by not having the item. 
• (b) Partial payment agreements. Agreements in which VA would pay the institution a partial payment with the remainder to be paid by the Veteran student are not authorized.
• (c) Thesis expenses. The institution’s costs in connection with a Veteran student’s thesis are considered supplies and are therefore authorized for reimbursement if the Veteran student’s committee chairman, major professor, department head, or appropriate dean certifies that the thesis is a course requirement and the expenses are required to complete the thesis. These expenses may include research expenses, typing, printing, microfilming, or otherwise reproducing the required number of copies. 
• (d) Reimbursement for books, supplies, and equipment. Books, supplies, and equipment that the institution purchases specifically for trainees will be reimbursed at the net cost to the institution. VA will reimburse the institution for books, supplies, and equipment when these items are— 
  • (1) Issued to students from its own bookstore or supply store; 
  • (2) Issued to students from retail stores or other non-institutionally owned establishments not owned by the contractor/institution but arranged or designated by them in cooperation with VA; or 
  • (3) Rented or leased books, supplies and equipment and are issued to students for survey classes when it is customary that students are not required to own the books. 
• (e) Handling charges. VA will reimburse the institution for any handling charges not to exceed more than 10 percent of the allowable charge for the books, equipment or other supplies unless— 
  • (1) The tuition covers the charges for supplies or rentals or a stipulated fee is assessed to all students; or
  • (2) The handling charge is for Government-owned books that the contractor procures from the Library of Congress. 

831.7001-4 Medical services and hospital care. 

• (a) VA may pay the customary student health fee when payment of the fee is required for similarly circumstanced non-Veteran students. If payment of the fee is not required for similarly circumstanced non-Veteran students, payment may be made if VA determines that payment is in the best interest of the Veteran student and the Government. 
• (b) When the customary Veteran student’s health fee does not cover medical services or hospital care, but these medical services are available in an institution-operated facility or with doctors and hospitals in the immediate area through a prior arrangement, VA may provide reimbursement for these services in a contract for the services if— 
  • (1) An arrangement is necessary to provide timely medical services for Veteran students attending the facility under provisions of 38 U.S.C. chapter 31; and 
  • (2) The general rates established for medical services do not exceed the rates established by VA. 
• (c) VA may reimburse a rehabilitation facility for incidental medical services provided during a Veteran student’s program at the facility. 

5. Consumable instructional supplies. 

• (a) VA will provide reimbursement for consumable instructional supplies that the institution requires for the instruction of all students, Veteran or non-Veteran students, pursuing the same or comparable course or courses when— 
  • (1) The supplies are entirely consumed in the fabrication of a required project; or 
  • (2) The supplies are not consumed but are of such a nature that they cannot be salvaged from the end product for reuse by disassembling or dismantling the end product. 
• (b) VA will not provide reimbursement for consumable instructional supplies if any of the following apply: 
  • (1) The supplies can be salvaged for reuse. 
  • (2) The supplies are used in a project that the student has elected as an alternate class project to produce an end product of greater value than that normally required to learn the skills of the occupation, and the end product will become the Veteran’s property upon completion. 
  • (3) The supplies are used in a project that the institution has selected to provide the student with a more elaborate end product than is required to provide adequate instruction as an inducement to the Veteran student to elect a particular course of study. 
  • (4) The sale value of the end product is equal to or greater than the cost of supplies plus assembly, and the supplies have not been reasonably used so that the supplies are not readily salvaged from the end product to be reused for instructional purposes. 
  • (5) The end product is of permanent value and retained by the institution. 
  • (6) A third party loans the articles or equipment for repair or improvement and the third party would otherwise pay a commercial price for the repair or improvement. 
  • (7) The number of projects resulting in end products exceeds the number normally required to teach the recognized job operations and processes of the occupation stipulated in the approved course of study. 
  • (8) The cost of supplies is included in the charge for tuition or as a fee designated for such purpose. 

831.7001-6 Reimbursement for other supplies and services. 

VA will provide reimbursement for other services and assistance that may be authorized under applicable provisions of 38 U.S.C. chapter 31 regulations, including, but not limited to, employment and self-employment services, initial and extended evaluation services, and independent living services.

Effective Date: October 1, 2026

PART 832—CONTRACT FINANCING

832.001 Definitions.
832.006 Reduction or suspension of contract payments upon finding fraud.
832.006-1 General.
832.006-2 Procedures.

Subpart 832.2—Commercial Product and Commercial Service Purchase Financing

832.202 General.
832.202-1 Policy.

Subpart 832.4—Advance Payments for Other Than Commercial Acquisitions

832.402 General.
832.404 Exclusions.

Subpart 832.70—Electronic Invoicing Requirements

832.7000 General.
832.7001 Electronic payment requests.
832.7001-1 Data transmission.
832.7001-2 Contract clause.

Subpart 832.71—Contract Funding During a Continuing Resolution

832.7100 Scope of subpart.
832.7101 General.
832.7102 Policy.
832.7103 Limitations.
832.7104 Procedures.
832.7105 Contract clause.

Subpart 832.72—VA Contract Clauses

832.7200 Contract Clauses for all fixed-priced construction purchases.

AUTHORITY:  40 U.S.C. 121(c); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 832—CONTRACT FINANCING 

832.001  Definitions. 

As used in this part: 

• (a) Designated agency office means the office designated by the purchase order, agreement, or contract to first receive and review invoices. This office can be contractually designated as the receiving entity. This office may be different from the office issuing the payment. 
• (b) Electronic form means an automated system transmitting information electronically according to the accepted electronic data transmission methods identified in 832.7001-1. Facsimile, e-mail, and scanned documents are not acceptable electronic forms for submission of payment requests. 
• (c) Payment request means any request for contract financing payment or invoice payment submitted by a contractor under a contract. 

832.006  Reduction or suspension of contract payments upon finding of fraud. 

832.006-1  General. 

• (b) The Senior Procurement Executive (SPE) is granted authority to make the determinations and decisions under FAR 32.006. 

832.006-2  Procedures. 

• (a) The Remedy Coordination Official (RCO) for VA is the SPE, or designee, who will carry out the responsibilities of the Secretary or designee in the FAR 32.006. 
  • (1) The contractor may supplement the oral presentation with written information and argument. The proceedings will be conducted in an informal manner and without the requirement for a transcript. If the RCO does not receive a reply from the contractor within 30 calendar days, the RCO will base his or her recommendations on the information available.  
  • (2) In addition to following the procedures in FAR 32.006-4, the contracting officer will provide a copy of each final determination and the supporting documentation to the contractor, the RCO, and the Office of the Inspector General (OIG).  

Subpart 832.2—Commercial Product and Commercial Service Purchase Financing 

832.202 General. 

832.202-1  Policy. 

• (d) HCAs must report, no later than December 15th of each calendar year, to the SPE, on the number of contracts for commercial items with unusual contract financing or with commercial interim or advance payments approved for the previous fiscal year. The report must include the contract number and amount, the amount of the unusual contract financing or with commercial interim or advance payments approved, and the kind and amount of security obtained for the advance. 

Subpart 832.4—Advance Payments for Other Than Commercial Acquisitions 

832.402 General. 

• (c) (1) (iii) The authority to make the determination required by FAR 32.402(c)(1)(iii) and to approve contract terms is delegated to the HCA. The request for approval must include the information required by FAR 32.409-1 and must address the standards for advance payment in FAR 32.402(c)(2). HCAs must report, no later than December 15th of each calendar year, to the SPE, the number of contracts for non-commercial items with advance payments approved in the previous fiscal year. The report must include the contract number and amount, the amount of the advance payment, and the kind and amount of security obtained for the advance. 

832.404 Exclusions. 

• (b) (1) As permitted by 31 U.S.C. 3324(d)(2), VA allows advance payment for subscriptions or other charges for newspapers, magazines, periodicals, and other publications for official use, notwithstanding the provisions of 31 U.S.C. 3324(a). The term “other publications” includes any publication printed, microfilmed, photocopied or magnetically or otherwise recorded for auditory or visual use. 
  • (2) As permitted by 31 U.S.C. 1535, VA allows advance payment for services and supplies obtained from another Government agency. 
  • (3) As permitted by 5 U.S.C. 4109, VA allows advance payment for all or any part of the necessary expenses for training Government employees, including obtaining professional credentials under 5 U.S.C. 5757, in Government or non- Government facilities, including the purchase or rental of books, materials, and supplies or services directly related to the training of a Government employee. 

Subpart 832.70—Electronic Invoicing Requirements 

832.7000 General. 

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

832.7001 Electronic payment requests. 

• (a) The contractor must submit payment requests in electronic form unless directed by the contracting officer to submit payment requests by mail. Purchases paid with a Government-wide commercial purchase card are considered to be electronic transactions for purposes of this rule, and therefore no additional electronic invoice submission is required. 
• (b) The contracting officer may direct the contractor to submit payment requests by mail, through the United States Postal Service, to the designated agency office for— 
  • (1) Awards made to foreign vendors for work performed outside the United States; 
  • (2) Classified contracts or purchases when electronic submission and processing of payment requests could compromise the safeguarding of classified or privacy information; 
  • (3) Contracts awarded by contracting officers in the conduct of emergency operations, such as responses to national emergencies; 
  • (4) Solicitations or contracts in which the designated agency office is a VA entity other than the VA Financial Services Center in Austin, Texas; or 
  • (5) Solicitations or contracts in which the VA designated agency office does not have electronic invoicing capability as described above. 

832.7001-1 Data transmission. 

The contractor must submit electronic payment requests through— 

• (a) VA’s Electronic Invoice Presentment and Payment System at the current website address provided in the contract; or 
• (b) A system that conforms to the X12 electronic data interchange (EDI) formats established by the Accredited Standards Center (ASC) chartered by the American National Standards Institute (ANSI). 

832.7001-2 Contract clause. 

The contracting officer must insert the clause at 852.232-72, Electronic Submission of Payment Requests, in solicitations and contracts exceeding the micro-purchase threshold, except those for which the contracting officer has directed otherwise under 832.7001, and those paid with a Governmentwide commercial purchase card. 

Subpart 832.71—Contract Funding 

832.7100  Scope of subpart. 

This subpart prescribes policies for funding contracts when funds are provided to VA under a continuing resolution (CR).  

832.7101 General. 

The Anti-Deficiency Act, 31 U.S.C. 1341 prohibit any officer or employee of the Government from creating or authorizing an obligation in excess of funds available, or in advance of appropriations, unless otherwise authorized by law. Each CR is governed by its specific terms, including its duration, and in some cases the funding available under a CR is insufficient to support contract actions that would otherwise be authorized at their full value. 

When a contract action is funded to the ceiling of available CR authority and the clause at 852.232-73 limits the Government’s obligation to that amount, the Government’s legal obligation does not exceed available funds. Such an action does not constitute incremental funding in violation of 31 U.S.C. 1341.  

832.7102  Policy. 

• (a) When VA is operating under a CR, a fixed-price, time-and-materials, or labor- hour contract for supplies or services may be funded to the CR ceiling when: 
  • (1) Funds are provided to VA under a CR, including funds appropriated directly to VA, funds appropriated to another entity that will be directly obligated on a VA 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) The responsible financial authority provides confirmation that full funding is anticipated upon enactment of a regular appropriations act; and 
  • (6) The clause at 852.232-73 is incorporated into the contract or order. 
• (b) Funding may be applied at the contract line-item level or at the order level, as applicable. 

832.7103  Limitations. 

• (a) This subpart does not apply to contract actions using funds that are not covered by the CR. 
• (b) Unless a legislative exception applies, non-severable services or acquisitions for supplies generally must be fully funded at time of award. The contracting officer must assess the business risk to the Government if regular appropriations are not enacted and full funding does not become available. If the contracting officer determines that applying CR-ceiling funding to non-severable services or supplies is in the best interest of the Government, the contracting officer must ensure the contractor agrees to the limitations of the Government’s obligation under the contract and any potential impact on the contractor’s ability to perform within the prescribed contract schedule. 

832.7104  Procedures. 

• (a) A contract funded to the CR ceiling must be fully funded, up to the contract’s total authorized amount, once regular appropriations are enacted and funds are made available. 
• (b) The contracting officer must monitor the funded ceiling and must take appropriate action before the Government’s limitation of obligation is reached, to include obligating additional funds or terminating for the convenience of the Government, as appropriate. 

832.7105  Contract clause. 

The contracting officer must insert the clause at 852.232-73, Limitation of Government’s Obligation during a Continuing Resolution, in all applicable solicitations and resultant contracts for fixed-price, time-and-materials, and labor-hour contracts. The clause is only operative if VA is funded under a CR, as provided in paragraph (a) of clause 852.232-73. 

Subpart 832.72—VA Contract Clauses 

832.7200 VA contract clauses for all fixed priced construction purchases. 

• (a) (1) Insert the clause at 852.232-70, Payments Under Fixed-Price Construction Contracts (Without NAS-CPM) and the FAR clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, for all fixed price construction solicitations and contracts that does not require use of the “Network Analysis System–Critical Path Method (NAS-CPM)”, if in the best interest of VA. 
  • (2) If the solicitation or contract includes guarantee period services, the contracting officer must use the clause with its Alternate I. 
• (b) (1) Insert the clause at 852.232-71, Payments Under Fixed-Price Construction Contracts (Including NAS-CPM), and the FAR clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, if the solicitation or contract requires use of the “Network Analysis System–Critical Path Method (NAS-CPM)”, if in the best interest of VA. 
  • (2) If the solicitation or contract includes guarantee period services, the contracting officer must use the clause with its Alternate I. 

Effective Date: October 1, 2026

PART 833 – PROTESTS, DISPUTES, AND APPEALS

Subpart 833.1—Protests

833.106-70 Solicitation provision.

Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 41 U.S.C. Chapter 71; and 48 CFR 1.301-1.304.

---

PART 833 – PROTESTS, DISPUTES, AND APPEALS 

Subpart 833.1 – Protests 

833.106-70 Solicitation provision. 

The contracting officer must insert the provision at 852.233-70, Agency Protests, in solicitations expected to exceed the simplified acquisition threshold. 

Effective Date: October 1, 2026

PART 835—RESEARCH AND DEVELOPMENT CONTRACTING

Subpart 835.1—Pre-solicitation

835.101 Solicitations.
835.101-70 VA Research and development.

AUTHORITY: 38 U.S.C. 7303, 40 U.S.C. 121(c), 41 U.S.C. 1702 and 48 CFR 1.301-1.304.

---

PART 835—RESEARCH AND DEVELOPMENT CONTRACTING  

Subpart 835.1—Pre-solicitation 

835.101 Solicitations. 

835.101-70 VA Research and Development. 

The contracting officer must insert the clause at 852.235-76, VA Research and Development, in all research and development (R&D) solicitations and contracts. 

Effective Date: October 1, 2026

PART 836—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Subpart 836.1—Pre-solicitation.

836.101 Construction.
836.101-7 Clauses.
836.101-770 Performance of work by the contractor.
836.101-771 Subcontracts and work coordination.
836.101-772 A/E Conflicts of interest.
836.101-70 Provisions.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3), 1303(a)(2) and 1702; and 48 CFR 1.301-1.304.

---

PART 836—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS 

Subpart 836.1—Pre-solicitation. 

836.101 Construction.  

836.101-7 Clauses.  

The clauses and provisions prescribed in this subpart are set forth for use in fixed-price construction contracts in addition to those prescribed in FAR part 36. 

836.101-770 Performance of work by the contractor.  

The contracting officer must insert the clause at 852.236-72, Performance of Work by the Contractor, in solicitations and contracts for construction. When the solicitations or contracts include a section entitled “Network Analysis System Schedule (NAS),” the contracting officer must use the clause with its Alternate I. 

836.101-771 Subcontracts and work coordination. 

The contracting officer must insert the clause at 852.236-80, Subcontracts and Work Coordination, in solicitations and contracts for construction expected to exceed the micro-purchase threshold for construction. When the solicitations or contracts are for new construction work with complex mechanical-electrical work, the contracting officer must use the clause with its Alternate I. 

836.101-772 A/E Conflicts of interest.  

The contracting officer must insert the clause at 852.236-95, Architectural and Engineering Conflicts of Interest, in solicitations and contracts that include Architectural and Engineering design requirements. 

836.101-70    Provisions.  

• (a) Site Visit (Construction). The contracting officer must insert a provision substantially the same as the provision at 852.236-93, Site Visit (Construction), in solicitations which include the clauses at FAR parts 52.236-2, Differing Site Conditions, and 52.236-3, Site Investigations and Conditions Affecting the Work. 
• (b) Preparation of Proposals (Construction). The contracting officer must insert a provision substantially the same as the provision at 852.236-94, Preparation of Proposals (Construction) in all construction solicitations. 

Effective Date: October 1, 2026

PART 837—SERVICE CONTRACTING

Subpart 837.2—Personal Services

837.201-1 Policy.

Subpart 837.6—Nonpersonal Health Care Services

837.601-3 Contract clause.

Subpart 837.8—Other Service Considerations

837.802-1 Uncompensated Services
837.802-5 Solicitation provisions and contract clauses.

Subpart 837.70—Mortuary Services

837.7000 Policy.
837.7001 Solicitation provisions and contract clauses.

Authority: Pub. L. 101-647; 20 U.S.C. 7181-7183; 40 U.S.C. 121(c); 38 U.S.C 513; 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 837—SERVICE CONTRACTING 

Subpart 837.2—Personal Services 

837.201-1 Policy. 

VA is authorized by 38 U.S.C. 513. 

Subpart 837.6—Nonpersonal Health Care Services 

837.601-3 Contract clause. 

• (a) The contracting officer must insert the clause at 852.237-70, Indemnification and Medical Liability Insurance, in lieu of FAR clause 52.237-7, in solicitations and contracts for nonpersonal health-care services, including, but not limited to contracts awarded under the authority of 38U.S.C. 7409, 38 U.S.C. 8151-8153, and part 873.  
• (b) The contracting officer must insert the clause at 852.237-71, Nonsmoking Policy for Children’s Services, in solicitations, contracts, and orders that involve health or daycare services that are provided to children under the age of 18 on a routine or regular basis pursuant to the Nonsmoking Policy for Children’s Services (20 U.S.C. 6081–6084). 
• (c) The contracting officer must insert the clause at 852.237–72, Crime Control Act—Reporting of Child Abuse, in solicitations, contracts, and orders that require performance on Federal land or in a federally operated (or contracted) facility and involve the professions/activities performed by persons specified in the Crime Control Act of 1990 (42 U.S.C. 13031) including, but not limited to, teachers, social workers, physicians, nurses, dentists, health care practitioners, optometrists, psychologists, emergency medical technicians, alcohol or drug treatment personnel, child care workers and administrators, emergency medical technicians and ambulance drivers.
• (d) The contracting officer must insert the clause at 852.237–73, Crime Control Act—Requirement for Background Checks, in solicitations, contracts, and orders that involve providing child care services to children under the age of 18, including social services, health and mental health care, child- (day) care, education (whether or not directly involved in teaching), and rehabilitative programs covered under the Crime Control Act of 1990 (42 U.S.C. 13041). 

Subpart 837.8—Other Service Considerations 

837.802-1 Uncompensated Services 

VA is authorized by 38 U.S.C. 513.  

837.802-5  Solicitation provisions and contract clause. 

• (a) Contracting officers must include the clause at 852.237-74, Non-Discrimination in Service Delivery, in all solicitations and contracts covering services provided to eligible beneficiaries.
• (b) The contracting officer must insert the clause at 852.237–75, Key Personnel, in solicitations and contracts when the contracting officer will require the contractor to designate contractor key personnel. 

Subpart 837.70—Mortuary Services 

837.7000 Scope. 

This subpart applies to mortuary (funeral and burial) services for beneficiaries of VA as provided in 38 U.S.C. 2302, 2303, and 2308 when it is determined that a contract would be the most efficient and effective method.  

837.7001 Solicitation provisions and contract clauses. 

• (a) The contracting officer must insert the basic or the alternate of the provision at 852.237-76, Award to Single Offeror, in solicitations for mortuary services as follows: 
  • (1) Insert the provision in all sealed bid solicitations for mortuary services; and
  • (2) Insert the basic provision with its alternate I in all solicitations for mortuary services. 
• (b) The contracting officer must insert the following VA clauses in all mortuary service solicitations and contracts: 
  • (1) 852.237-77, Area of Performance.
  • (2) 852.237-78, Performance and Delivery.
  • (3) 852.237-79, Subcontracting.
  • (4) 852.237-80, Health Department and Transport Permits.

Effective Date: 10/1/2026

PART 839 – ACQUISITION OF INFORMATION AND COMMUNICATION TECHNOLOGY

Subpart 839.1 – Pre-solicitation

839.104-2 Policy.
839.104-2-70 Policy.
839.104-3  Applicability.
839.104-3-70  Applicability.

AUTHORITY: 36 CFR chapter 1; 40 U.S.C. 121(c), 41 U.S.C. 1121 (c)(3), 1303 and 1702, and 48 CFR chapter 1.

---

PART 839 – ACQUISITION OF INFORMATION AND COMMUNICATION TECHNOLOGY

Subpart 839.1 – Pre-solicitation

839.104-2 Policy.

839.104-2-70 Policy.

• (a) This policy implements Section 508 of the Rehabilitation Act of 1973, which pertains to accessibility requirements for information and communication technology (ICT) in contracts and acquisitions. When acquiring ICT or including it in service contracts, contracting officers and relevant departments must adhere to VA directives, policies, and procedures.
• (b) VA’s Cybersecurity Program applies to all ICT and ensures security requirements are included in all ICT associated acquisitions, solicitations, and contracts.
• (c) VA’s Security Requirements extend to all contractors, subcontractors, and their employees of ICT procurements and they apply regardless of the type of ICT being acquired, or whether the ICT is on VA or non-VA systems, including cloud services.
• (d) Contractors, subcontractors, and third-party ICT providers must use adequate security controls, when required, and follow National Institute of Standards and Technology (NIST) and United States Access Board (Access Board) standards as required by VA regulations, directives, and handbooks. They must also ensure that all VA ICT is protected from unauthorized access, use, disclosure, modification, or destruction to maintain its integrity, confidentiality, and availability, when associated with systems.

839.104-3  Applicability.

839.104-3-70 Applicability.

• (a) Information and communication technology accessibility standards-contract provision and clause.
  • (1) The contracting officer must insert the provision at 852.239-75, Information and Communication Technology Accessibility Notice, in all agreements and solicitations above the micro-purchase threshold.
  • (2) The contracting officer must insert the clause at 852.239-76, Information and Communication Technology Accessibility, in all agreements and contracts or orders above the micro-purchase threshold.

Effective Date: October 1, 2026

PART 840 – INFORMATION SECURITY AND SUPPLY CHAIN SECURITY

840.000 Scope of part.
840.002-70 General Contractor Responsibilities.

Subpart 840.2— Security Prohibitions and Exclusions

840.201 Definition.
840.202 Prohibitions.
840.202-70 Prohibitions.

Subpart 840.3— Safeguarding Information

840.303 Basic safeguarding of covered contractor information systems.
840.303-1 Applicability.
840.303-70 Contract Clause.

Authority: 38 U.S.C. 5721-5727, 5725(a)-(c); 40 U.S.C. 121(c); 41 U.S.C. 1303, 1702; 88 FR 4745, Jan. 25, 2023, P.L. 119-37 § 258, and 48 CFR 1.301-1.304.

---

PART 840 – INFORMATION SECURITY AND SUPPLY CHAIN SECURITY 

840.000 Scope of part. 

840.002-70 General contractor responsibilities. 

Contractors, subcontractors, business associates, as applicable, and their employees who interact with VA information or systems must: 

• (a) Adhere to all VA security personnel security, cybersecurity, and privacy policies, procedures, and relevant laws, including compliance with:
  • (1) VA privacy and confidentiality laws and regulations.
  • (2) Health Insurance Portability and Accountability Act (HIPAA).
  • (3) Privacy Act of 1974.
  • (4) Homeland Security Presidential Directive 12, as amended and VA Personal Vetting and Credentialing policies.
• (b) Complete annual VA security awareness training.
  • (1) Identities information security risks associated with user activities; 
  • (2) Details user responsibilities in complying with Departmental policies and procedures.
• (c) Complete annual Privacy and HIPAA training if they access protected health information (PHI).
• (d) Report any security/privacy incidents to the contracting officer and representative within one hour.
• (e) Follow specific directions issued during a security/privacy incident.
• (f) Annually sign an acknowledgment of understanding and agreement to VA Information Security Rules of Behavior.
• (g) Maintain HIPAA compliance records and reports and provide information to VA upon request.
• (h) Ensure these requirements are included in all subcontracts and Business Associate Agreements.

 Subpart 840.2 – Security Prohibitions and Exclusions. 

840.201 Definitions. 

Covered Information Technology (P.L. 5371): Means the following equipment used in an office environment: computers, printers, or interoperable videoconferencing equipment used in or by the Department of Veterans Affairs directly. ‘‘Covered information technology equipment’’ does not refer to services that use such equipment, including cloud services. 

840.202 Prohibitions. 

840.202-70 Prohibitions. 

• (a) The contracting officer must insert the clause at 852.240-70, Compliance with P.L.119-37, § 258 (XXX 20XX)(DEVIATION), in all VA solicitations and contracts that use appropriated funds or funds otherwise made available to procure “Covered Information Technology Equipment.” The clause must also be included in subcontracts, and any agreement binding on the VA.
  • (1) Offerors are required to submit the certification at clause 852.240-70, Compliance with P.L.119-37, § 258 (Mar 2026) (DEVIATION) with their quote or proposal.

 Subpart 840.3 – Safeguarding Information 

840.303 Basic safeguarding of covered contractor information systems. 

840.303-1 Applicability. 

This subpart applies to all VA acquisitions, including acquisitions of commercial products and commercial services other than commercially available off-the-shelf items, when a contractor’s information system may contain VA information. 

840.303-70 Contract clause. 

• (a) Contracting officers must insert the clause at 852.240-71, Security Requirements for Information Technology Resources, and the provision at 852.240-72, Information System Security Plan and Accreditation, in all solicitations, contracts, and orders exceeding the micro-purchase threshold that include information technology services.
• (b) Contracting officers must insert the clause at 852.240-73, Information System Design and Development, in solicitations, contracts, orders, and agreements where services to perform information system design and development are required.
• (c) Contracting officers must insert the clause at 852.240-74, Information System Hosting, Operation, Maintenance or Use, in solicitations, contracts, orders, and agreements where services to perform information system hosting, operation, maintenance, or use are required. 
• (d) Contracting officers must insert the clause at 852.240-75, Security Controls Compliance Testing, in solicitations, contracts, orders, and agreements, when the clause at 852.240-73 or 852.240-74 is inserted.
• (e) When the clause at FAR 52.240-93, Basic Safeguarding of Covered Contractor Information Systems is required, the contracting officer must insert the clause at 852.240-76, Information and Information Systems Security.

Effective Date October 1, 2026

PART 841—ACQUISITION OF UTILITY SERVICES

Subpart 841.1—General

841.102 Applicability.

Subpart 841.2—Acquiring Utility Services

841.201 Policy.
841.202 Procedures.
841.204 GSA areawide contracts.

Subpart 841.5—Solicitation Provision and Contract Clauses

841.501 Solicitation provision and contract clauses.
841.501-70 Disputes—Utility contracts.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1702; 48 CFR 1.301-1.304; and 85 FR 60077, September 24. 2020.

---

PART 841—ACQUISITION OF UTILITY SERVICES 

Subpart 841.1—General 

841.102 Applicability. 

• (a) This part applies to purchases of utility services from nonregulated and regulated utility suppliers. The acquisition of energy, such as electricity, and natural or manufactured gas, when purchased as a commodity is considered to be acquisitions of supplies rather than utility services as described in FAR part 41. 

Subpart 841.2—Acquiring Utility Services 

841.201 Policy. 

• (b) Notwithstanding the policy as set forth at FAR 41.201(b), VA is exempt from the requirement to acquire utility services by a bilateral written contract from regulated providers. 

 841.202 Procedures. 

VA is exempt from the procedures listed in FAR 41.202 when acquiring utility services. 

841.204 GSA areawide contracts. 

• (c)
  • (1) Notwithstanding the policy as set forth at FAR 41.204(c), VA is exempt from the requirement to utilize GSA areawide contracts on a mandatory basis.
• (e)
  • (1) If VA contracting officers elect to use GSA areawide contracts, VA is exempt from the requirement of completing the SF26 and must execute the Authorization along with any modifications such as connection charges, special facilities, or service arrangements.

 Subpart 841.5—Solicitation Provision and Contract Clauses 

841.501 Solicitation provision and contract clauses. 

841.501-70 Disputes—Utility contracts. 

The contracting officer must insert the clause at 852.241-70, Disputes—Utility Contracts, in solicitations and contracts for utility services subject to the jurisdiction and regulation of a utility rate commission.

Effective Date: October 1, 2026

PART 843—CONTRACT MODIFICATIONS

Subpart 843.3—Change Orders

843.305 Contract clauses.
843.305-70 Contract changes—supplement.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 843—CONTRACT MODIFICATIONS 

Subpart 843.3—Change Orders 

843.305 Contract clauses 

When using the Changes clauses prescribed at FAR 43.305, the contracting officer may extend the period within which the contractor must assert its right to an equitable adjustment under the applicable clause. However, any such extension cannot exceed 60 calendar days. 

843.305-70 Contract changes—supplement. 

The contracting officer will insert the clause at 852.243-70, Construction Contract Changes—Supplement, in solicitations and contracts for construction exceeding the construction micro-purchase threshold.

Effective Date: October 1, 2026

PART 844—SUBCONTRACTING POLICIES AND PROCEDURES

Subpart 844.4—Subcontracts for Commercial Products and Commercial Components

844.402 Policy requirements.

Authority: 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 29 CFR 5.15(d); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 844—SUBCONTRACTING POLICIES AND PROCEDURES 

Subpart 844.4—Subcontracts for Commercial Products and Commercial Components 

844.402 Policy requirements. 

• (a) Contracting officers are required to determine whether a particular subcontract item meets the definition of a commercial product. This requirement does not affect the contracting officer’s responsibilities or determinations made under FAR 15.403-2(c)(3).

 

Effective Date: October 1, 2026

PART 845—GOVERNMENT PROPERTY

Subpart 845.4—Title to Government Property

845.402 Title to contractor-acquired property.
845.402-70 Policy.

Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301-1.304.

---

PART 845—GOVERNMENT PROPERTY 

Subpart 845.4—Title to Government Property 

845.402 Title to contractor-acquired property. 

845.402-70 Policy. 

• (a) For contracts other than firm-fixed-price, contractor-acquired property items not anticipated at time of contract award, or not otherwise specified for delivery on an existing line item, must be specified for delivery to the Government on an added contract line item, through a contract modification. The value of each item must be recorded at purchase cost. Unless otherwise noted by the contractor at the time of delivery to the Government, the placed-in-service date is the date of acquisition or, for a fabricated item, the date manufacture is completed. 
• (b) After delivery to and acceptance by the Government, contractor-acquired property items retained by the contractor for continued use under a successor contract become Government-furnished property (GFP). The items must be added to the successor contract as GFP. 
• (c) Individual contractor-acquired property items must be recorded in the contractor’s property management system at purchase cost. 

Effective Date: October 1, 2026

PART 846—QUALITY ASSURANCE

Subpart 846.1—General

846.101 Definition.

Subpart 846.3—Contract Clauses

846.370 Clauses for supplies, equipment or perishable goods.
846.370-1 Rejected goods.
846.370-2 Frozen processed foods.
846.370-3 Noncompliance with packaging, packing and/or marking requirements.
846.370-4 Purchase of shellfish.

Subpart 846.4—Government Contract Quality Assurance

846.470 Inspection of subsistence.
846.471 Food service equipment.

Subpart 846.7—Warranties

846.702-70 Guarantee period services and specifications.

AUTHORITY: 40 U.S.C. 121(c); 41 U.S.C. 1121; 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 846—QUALITY ASSURANCE 

Subpart 846.1—General 

846.101 Definition. 

As used in this part— 

Rejected goods means supplies and/or equipment failing to meet contractual terms and conditions and/or generally accepted quality standards that may be returned by the Government at the contractor’s risk and expense. 

Subpart 846.3—Contract Clauses 

Source: 83 FR 48259, Sept. 24, 2018, unless otherwise noted. 

846.370 Clauses for supplies, equipment or perishable goods. 

846.370-1 Rejected goods. 

The contracting officer must insert the clause at 852.246-71, Rejected Goods, in solicitations and contracts for the acquisition of supplies, equipment or perishable goods. Perishable goods include such items as packing house and dairy products, bread and bakery products, fresh and frozen fruits, and vegetables. 

846.370-2 Frozen processed foods. 

• (a) The contracting officer must insert the clause at 852.246-72, Frozen Processed Foods, in solicitations and contracts for frozen processed foods. 
• (b) The following frozen processed food products must contain a label that complies with the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301), which requires all ingredients be listed in accordance with their predominance order: 
  • (1) Frozen processed food products that contain meat, poultry, or a significant proportion of eggs. 
  • (2) Frozen processed food products that contain fish or fish products.
  • (3) Frozen bakery products.
• (c) All procured frozen processed food products that contain meat, poultry or a significant proportion of eggs must meet the following requirements:
  • (1) The products must be processed or prepared in plants operating under the supervision of the Department of Agriculture (USDA).
  • (2) The product must be inspected and approved in accordance with USDA regulations governing meat, poultry, or egg inspection. A label or seal that indicates compliance with USDA regulations, affixed to the container, will be accepted as evidence of compliance. 
• (d) All procured frozen processed food products that contain fish or fish products must meet the following requirements: 
  • (1) The product must be processed or prepared in plants or vessels, sanitarily inspected, approved, and certified by the United States Department of Commerce (USDC). The products are listed in USDC’s publication “USDC Approved Establishments” under U.S. Establishments Approved for Sanitation and for Producing USDC Inspected Fishery Products. The inspected products packed under various labels bearing the brand names are produced in accordance with current U.S. Grade Standards or official product specifications, packed under optimum hygienic conditions, and must meet Federal, State, and city sanitation and health regulations. Such brand label or USDC seal indicating compliance with USDC regulations, affixed to a container, will be accepted as evidence of compliance. 
  • (2) If the conditions in paragraph (d)(1) of this section were not met (e.g., no seal), the shipment may be lot-inspected by the USDC and containers stamped to indicate acceptance or a Certification of Inspection issued to accompany the shipment. 
• (e) Producers of frozen bakery products that ship products in interstate commerce are required to comply with the Federal Food, Drug and Cosmetic Act. Therefore, the product must be verified as shipped interstate or that the producer ships products to other purchasers interstate.

846.370-3 Noncompliance with packaging, packing and/or marking requirements. 

The contracting officer must insert the clause at 852.246-73, Noncompliance with Packaging, Packing, and/or Marking Requirements, in non-commercial item solicitations and contracts for supplies or equipment where there are special packaging, packing and/or marking requirements. The clause may be used in commercial item acquisitions if a waiver is approved in accordance with FAR 12.205(d). 

846.370-4 Purchase of shellfish. 

• (a) The U.S. Food and Drug Administration (FDA) at http://www.fda.gov provides quality assurance seafood safety guidelines. 
• (b) The contracting officer must insert the clause at 852.246-76, Purchase of Shellfish, in solicitations and contracts for shellfish. 

Subpart 846.4—Government Contract Quality Assurance 

Source: 83 FR 48260, Sept. 24, 2018, unless otherwise noted. 

846.470 Inspection of subsistence. 

• (a) The contracting officer must indicate the time and place of inspection in the solicitation.
• (b) The contracting office must also provide in the solicitation that the contractor is responsible for all of the following: 
  • (1) Arranging and paying for inspection services.
  • (2) Obtaining from the inspectors a certificate indicating that the product complies with specifications.
  • (3) Assuring that the certificate, or copy, accompanies the shipment. 
  • (4) Furnishing samples for inspection at the contractor’s expense.
  • (5) Indicating the address where inspection will occur. 
• (c) The contracting officer must furnish a copy of the purchase document to the inspecting activity. 

846.471 Food service equipment. 

• (a) All new food service equipment purchased for Dietetic Service through other than the Defense General Supply Center sources must meet requirements set forth by NSF International (NSF) at http://www.nsf.org. 
• (b) The contracting officer will ensure that the following language is placed in the solicitation to assert that the equipment meets NSF standards:
• The Government will accept an affixed NSF label and/or documentation of the NSF Certification from the contractor as evidence that the subject equipment meets NSF Sanitation standards.

Subpart 846.7—Warranties 

846.702-70 Guarantee period services and specifications. 

• (a) Guarantee period of services are associated with preserving and protecting a specified piece of contractor-installed equipment that is guaranteed under a construction contract. Specifications for certain high-dollar or traditionally troublesome equipment are designed to allow for the original installer of the equipment to service the equipment throughout the guaranty period. 
• (b) Guarantee period services are not the same as the 1-year general construction guaranty clause found at FAR 52.246-21, Warranty of Construction. 
• (c) The contracting officer may determine, when in the best interest of VA that guarantee period services, not to exceed a period of 5 years, are appropriate to protect the integrity of the installed equipment and ensure that the equipment performs as guaranteed. 
• (d) When the determination is made under paragraph (c) of this section, the contracting officer must include the guarantee period of services as a separately priced contract line item number (CLIN) in solicitations and contracts. 
• (e) The contracting officer must insert the clause at 852.246-75, Warranty of Construction—Guarantee Period Services, in solicitations and contracts for construction that include the FAR 52.246-21, Warranty of Construction, and that also include guarantee period services.
• (f) In accordance with the approved VA specifications, the following types of equipment contain the guarantee period services specifications. The following represents a sampling of these specifications. 
  • (1) Division 14—Conveying Equipment.
    • (i) Electric Dumbwaiters Geared Traction and Winding Drum (VA 14 12 11).
    • (ii) Electric Traction Elevators (VA 14 21 00).
    • (iii) Traction Cartlift (VA 14 21 11). 
    • (iv) Hydraulic Elevators (VA 14 24 00). 
    • (v) Hydraulic Cartlift (VA 14 24 11).
  • (2) Division 27—Communications. 
    • (i) Public Address and Mass Notification Systems (VA 27 51 16).
    • (ii) Intercommunication and Program Systems (VA 27 51 23). 
• (g) The construction contractor must require the original installer of the equipment, which is normally a subcontractor, to provide the guarantee period services. 

Effective Date: October 1, 2026

PART 847—TRANSPORTATION

Subpart 847.2—Contracts for Transportation or for Transportation-Related Ser-vices

847.207 Contract clauses and special requirements.
847.207-70 VA Contract clauses and special requirements.

Subpart 847.3—Transportation in Supply Contracts

847.302 Place of delivery—f.o.b. point.
847.305 Solicitation provisions, contract clauses, and transportation factors.
847.305-70 Packing, marking, and consignment instructions.
847.305-71 Potential destinations known but quantities unknown.
847.305-72 VA contract clauses.

AUTHORITY: 38 U.S.C. 513; 40 U.S.C. 121(c); 41 U.S.C. 1303; 41 U.S.C. 1702; 41 CFR part 102-117; and 48 CFR 1.301-1.304.

---

PART 847—TRANSPORTATION 

Subpart 847.2—Contracts for Transportation or for Transportation-Related Services 

847.207 Contract clauses and special requirements. 

847.207-70 VA Contract clauses and special requirements. 

• (a) Insurance under patient transportation contracts. The contractor must submit all the proper certificates of insurance to perform on the contract as outlined in the solicitation. The clause at 852.228-71, Indemnification and Insurance must be included in solicitations when utilizing term contracts or contracts of a continuing nature for ambulance, automobile and aircraft service.  
• (b) Contractor personnel. The contractor must ensure that contractor personnel have the appropriate level of training, experience, certifications, licensure, and pertinent qualifications to perform contract services.  
• (c) Contractors must report vehicle accidents and incidents to the contracting officer with a formal accident report.
• (d) Contractors for ambulance services must meet Federal Specification KKK-A-1822E, “Star of Life Ambulance” standards. 

Subpart 847.3—Transportation in Supply Contracts 

847.302 Place of delivery—f.o.b. point. 

• (d) Insert a clause substantially the same as 852.247-71, Delivery Location, in supply contracts when it is necessary to specify delivery locations. If appropriate, the clause may reference an attachment which lists various delivery locations and other delivery details (e.g., quantities to be delivered to each location, etc.). 

847.305 Solicitation provisions, contract clauses, and transportation factors. 

847.305-70 Packing, marking, and consignment instructions. 

• (a)(1) Insert a clause substantially the same as 852.247-72 in solicitations and contracts if special markings on deliverables are required. 
  • (2) Insert the clause 852.247-73, Packing for Domestic Shipment, in contracts when item(s) will be delivered for immediate use to a destination in the continental United States; when the material specification or purchase description does not provide preservation, packaging, packing, and/or marking requirements; and/or when the requiring activity has not cited a specific specification for packaging. 

847.305-71 Potential destinations known but quantities unknown. 

When a contracting officer engages multiple bidders to supply items directly to VA field installations on an f.o.b. origin basis, they must follow set procedures for bid evaluation. In such cases, the contracting officer must include a clause substantially the same as 852.247-70 Determining Transportation Costs for Evaluation of Offers. Including this clause ensures that each bid is evaluated on an equal basis, despite the inability to predetermine the exact quantities required by each facility. The contracting officer should utilize an anticipated demand factor proportionate to the number of hospital beds or patient workload.  

847.305-72 VA contract clauses. 

• (a) Insert a clause substantially the same as 852.247-74, in solicitations and contracts when the f.o.b. point is destination, and special Government assistance is required in the delivery or receipt of the items.
• (b) Insert a clause substantially the same as 852.247-75, in f.o.b. origin solicitations and contracts.

   

Effective Date: October 1, 2026

PART 852—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 852.1—Instructions for Using Provisions and Clauses

852.101-70 Using part 852.
852.102 Incorporating provisions and clauses.

Subpart 852.2—Text of Provisions and Clauses

852.203-70 Commercial Advertising. 
852.204-70 Personal Identity Verification of Contractor Personnel.  
852.204-72 Personnel Vetting and Credentialing.  
852.209-70 Organizational Conflicts of Interest.
852.211-76 Liquidated Damages—Data Breach of Sensitive Personal Information.
852.212-71 Gray Market and Counterfeit Items.
852.212-72 Gray Market and Counterfeit Items—Information Technology Maintenance Allowing Other-Than-New Parts.
852.214-71 Restrictions on Alternate Item(s).
852.214-72 Alternate Item(s).
852.214-73 Alternate Packaging and Packing.
852.214-74 Marking of Bid Samples.
852.216-73 Economic Price Adjustment – State Nursing Home Care for Veterans.
852.216-74 Economic Price Adjustment – Medicaid Labor Rates.
852.216-75 Economic Price Adjustment – Fuel Surcharge.
852.216-76 Requirements – Supplement for Mortuary Services.
852.219-70 VA Small Business Subcontracting Plan Minimum Requirements.
852.219-74 VA Notice of Total Set-Aside for Veteran-Owned Small Businesses.
852.219-75 VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction.
852.219-76 VA Notice of Limitations on Subcontracting—Certificate of Compliance for Supplies and Products.
852.219-77 Service-Disabled Veteran-Owned and Veteran-Owned Small Business Sub-contracting Plan Requirements.
852.219-78 Subcontracting Commitments.
852.222-70 Contract Work Hours and Safety Standards – Nursing Home Care for Veterans. 
852.222-71 Combating Anti-Semitism.
852.223-71 Safety and Health. 
852.225-70 Made in America –PPE.
852.225-71 Made in America Certificate – PPE.
852.228-70 Bond Premium Adjustment.
852.228-71 Indemnification and Insurance.
852.228-73 Indemnification of Contractor – Hazardous Research Projects.
852.232-70 Payments Under Fixed-Price Construction Contracts (Without NAS-CPM).
852.232-71 Payments Under Fixed-Price Construction Contracts (Including NAS-CPM).
852.232-72 Electronic Submission of Payment Requests.
852.232-73 Limitation of Government’s Obligation.
852.233-70 Agency Protests.
852.235-76 Research and Development.
852.236-72 Performance of Work by the Contractor. 
852.236-80 Subcontracts and Work Coordination.
852.236-93 Site Visit (Construction).
852.236-94 Preparation of Proposals (Construction).
852.236-95 Architectural and Engineering Conflicts of Interest. 
852.237-70 Indemnification and Medical Liability Insurance. 
852.237-71 Nonsmoking Policy for Children’s Services. 
852.237-72 Crime Control Act – Reporting of Child Abuse. 
852.237-73 Crime Control Act – Requirement for Background Checks. 
852.237-74 Non-discrimination in Service Delivery. 
852.237-75 Key Personnel. 
852.237-76 Award to Single Offeror. 
852.237-77 Area of Performance. 
852.237-78 Performance and Delivery. 
852.237-79 Subcontracting. 
852.237-80 Health Department and Transport Permits. 
852.239-75 Information and Communication Technology Accessibility Notice.
852.239-76 Information and Communication Technology Accessibility.
852.240-70 Compliance with Public Law 119-37, Section 258.
852.240-71 Security Requirements for Information Technology Resources.
852.240-72 Information System Security Plan and Accreditation.
852.240-73 Information System Design and Development.
852.240-74 Information System Hosting, Operation, Maintenance, or Use.
852.240-75 Security Controls Compliance Testing.
852.240-76 Information and Information Systems Security 
852.241-70 Disputes—Utility Contracts.
852.243-70 Construction Contract Changes—Supplement.
852.246-71 Rejected Goods.
852.246-72 Frozen Processed Foods.
852.246-73 Noncompliance with Packaging, Packing, and/or Marking Requirements.
852.246-75 Warranty of Construction–Guarantee Period Services.
852.246-76 Purchase of Shellfish.
852.247-70 Determining Transportation Costs for Evaluation of Offers.
852.247-71 Delivery Location.
852.247-72 Marking Deliverables.
852.247-73 Packing for Domestic Shipment.
852.247-74 Advance Notice of Shipment.
852.247-75 Bills of Lading.
852.252-70 Solicitation Provisions or Clauses Incorporated by Reference.
852.271-72 Time Spent by Counselee in Counseling Process.
852.271-73 Use and Publication of Counseling Results.
852.271-74 Inspection of Instruction, Counseling or Testing Operations.
852.273-70 Late offers.
852.273-71 Alternative negotiation techniques.
852.273-72 Alternative evaluation.
852.273-73 Evaluation – Health-Care Resources.
852.273-74 Award without exchanges.

AUTHORITY: 38 U.S.C. 8127-8128 and 8151-8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 852—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 

852.101-70 Using part 852. 

Part 852 prescribes supplemental provisions and clauses to the FAR. Provision and clause numbering are as prescribed in FAR 52.101 (e.g., supplementary construction clauses under part 836 are numbered 852.236-71, 852.236-72, etc.). 

852.102 Incorporating provisions and clauses. 

• (a) As authorized by FAR 52.102(c), any 48 CFR chapter 8 (VAAR) provision or clause may be incorporated in a quotation, solicitation, or contract by reference, provided the contracting officer complies with the requirements stated in FAR 52.102(c)(1), (c)(2), and (c)(3). To ensure compliance with FAR 52.102(c) 
  • (1) and (c)(2), contracting officers shall insert the provision found at 852.252-70, Solicitation provisions or clauses incorporated by reference, in full text in a quotation, solicitation, or contract if the quotation, solicitation, or contract incorporates by reference a FAR or 48 CFR chapter 8 (VAAR) provision or clause that requires completion by the offeror or prospective contractor and submittal with the quotation or offer. 
• (b) For any FAR or 48 CFR chapter 8 (VAAR) provision or clause that requires completion by the contracting officer, the contracting officer shall, as a minimum, insert the title of the provision or clause and the paragraph that requires completion in full text in the quotation, solicitation, or contract. The balance of the provision or clause may be incorporated by reference. 
• (c) When one or more FAR or 48 CFR chapter 8 (VAAR) provisions, or portions thereof, are incorporated in a quotation or solicitation by reference, the contracting officer shall insert in the quotation or solicitation the provision found at FAR 52.252-1, Solicitation Provisions Incorporated by Reference. 
• (d) When one or more FAR or 48 CFR chapter 8 (VAAR) clauses, or portions thereof, are incorporated in a quotation, solicitation, or contract by reference, the contracting officer shall insert in the quotation, solicitation, or contract the clause found at FAR 52.252-2, Clauses Incorporated by Reference. 
• (e) If one or more FAR provisions or clauses, or portions thereof, are incorporated in a quotation, solicitation, or contract by reference, the contracting officer shall insert in the FAR provision or clause required by paragraph (c) or (d) of this section the following internet address:  https://www.acquisition.gov/browse/index/far. 
• (f) If one or more 48 CFR chapter 8 (VAAR) provisions or clauses, or portions thereof, are incorporated in a quotation, solicitation, or contract by reference, the contracting officer shall insert in the FAR provision or clause required by paragraph (c) or (d) of this section the following internet address: https://www.acquisition.gov/vaar. 

Subpart 852.2 - Text of Provisions and Clauses 

852.203-70  Commercial Advertising. 

As prescribed in 803.570-2, insert the following clause: 

COMMERCIAL ADVERTISING (MAY 2018) 

The Contractor must not make reference in its commercial advertising to Department of Veterans Affairs contracts in a manner that states or implies the Department of Veterans Affairs approves or endorses the Contractor’s products or services or considers the Contractor’s products or services superior to other products or services. 

(End of clause) 

852.204-70  Personal Identity Verification of Contractor Personnel.  

As prescribed in 804.205-70, insert the following clause:  

PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (OCT 2026)(DEVIATION) 

• (a) The Contractor must comply with current Department of Veterans Affairs policy for personal identity verification of all employees performing under this contract when frequent and continuing physical access to VA facilities, and/or logical access to VA information and VA information systems is required.  
• (b) The Contractor must insert this clause in all subcontracts when the subcontractor’s employees will require frequent and continuing physical access to VA facilities, and/or logical access to VA information and/or VA information systems.  

(End of clause) 

852.204-72  Personnel Vetting and Credentialing.  

As prescribed in 804.205-70, insert the following clause:  

PERSONNEL VETTING AND CREDENTIALING (OCT 2026)(DEVIATION) 

• (a) Definitions. As used in this clause – VA Information system is the same as information system and means, pursuant to 38 U.S.C. 5727, a discrete set of information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information whether automated or manual. VA sensitive information means all VA data, on any storage media or in any form or format, which requires protection due to the risk of harm that could result from inadvertent or deliberate disclosure, alteration, or destruction of the information and includes sensitive personal information. The term includes information where improper use or disclosure could adversely affect the ability of VA to accomplish its mission, proprietary information, records about individuals requiring protection under various confidentiality provisions such as the Privacy Act and the HIPAA Privacy Rule, and information that can be withheld under the Freedom of Information Act. Examples of VA sensitive information include the following: individually-identifiable medical, benefits, and personnel information; financial, budgetary, research, quality assurance, confidential commercial, critical infrastructure, investigatory, and law enforcement information; information that is confidential and privileged in litigation such as information protected by the deliberative process privilege, attorney work-product privilege, and the attorney-client privilege; and other information which, if released, could result in violation of law or harm or unfairness to any individual or group, or could adversely affect the national interest or the conduct of Federal programs.  
• (b) General. Contractor personnel assigned to work for or on behalf of VA must undergo a background investigation commensurate with the risk and sensitivity level designation associated with the work to be performed at the level indicated in the contract. The Contractor and subcontractors must comply with VA Directive/Handbook 0710, Personnel Security and Suitability Program, which can be accessed at: https://vaww.va.gov/vapubs/index.cfm  
• (c) Risk and Sensitivity Levels. The following table identifies the risk and sensitivity levels that apply to any personnel providing services under this contract. *VA Administrations, organizations and staff offices will use the OPM Position Designation Tool.  

Positions/Tasks Designated as Non-Sensitive Positions – Tier 1/Low Risk 
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 1/Low Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 1/Low Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 1/Low Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 1/Low Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 1/Low Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 1/Low Risk]

Positions/Tasks Designated as Non-Sensitive Positions – Tier 2/Mod Risk 
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 2/Mod Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 2/Mod Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 2/Mod Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 2/Mod Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 2/Mod Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 2/Mod Risk]

Positions/Tasks Designated as Non-Sensitive Positions – Tier 4/High Risk
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 4/High Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 4/High Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 4/High Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 4/High Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 4/High Risk]
[Contracting Officer to enter position or task number, if all positions fulfilling a task are Tier 4/High Risk

• Security clearances are granted to individuals with a specific requirement for access to classified material (for example, Confidential, Secret and Top Secret). Contractor personnel that are required to obtain a security clearance will be subject to a Tier 3 or Tier 5 investigation. The following sensitivity designations have been assigned for the identified Tier 3 and Tier 5 required by this contract: 
  • Tier 3: Contracting Officer to enter “Non-Critical” or “Not Applicable” if no positions are identified as Tier 3]  
  • Tier 5: Contracting Officer to enter either Critical Sensitive and/or Special Sensitive, or “Not Applicable” if no positions are identified as Tier 5]  

• (d) Fitness. The results from a background investigation are used to determine if an individual’s fitness is sufficient for that individual to perform work for or on behalf of VA in the position identified in this contract. Contractor fitness determinations are made in accordance with 5 CFR § 731.202. Fitness requirements for employment are separate and distinct from job qualifications. If a Contractor or subcontractor employee is found to be unsuitable or unfit to provide services under this contract, the Contractor must immediately remove the employee from working on this contract and take those necessary steps that restrict the employee’s logical access to VA data, information, VA sensitive information, or information technology or VA information systems containing such data or information.  
• The Contractor must advise the employee that they are not permitted to access any VA controlled building or real property in relation to this contract. The removal of an unfit Contractor or subcontractor employee does not alleviate the Contractor from satisfying the requirements of this contract. The Government will not reimburse the Contractor for any costs associated with the recruitment/replacement of an employee or subcontractor employee who is found to be unfit.  
• (e) Identification Cards. The Government will provide a Personal Identification Verification (PIV) card or other identification card, as necessary, to fit Contractor personnel who require physical access to VA facilities and/or logical access to VA data, information, VA sensitive information, or information technology or VA information systems containing such data or information. Contractor and subcontractor personnel must prominently display their PIV/identification card on their persons while working at a VA facility and must present their PIV/identification card for inspection upon request by a VA official. The Contractor must surrender the employee or subcontractor employee’s PIV/identification card in accordance with the requirements set forth in Directive/Handbook 0735 when any of the following events occur:  
  • 1. When no longer needed for contract performance.
  • 2. Upon completion of the Contractor/subcontractor employee’s employment. 
  • 3. Upon contract completion or termination. 
• (f) Lost/stolen. Immediately upon detection, the Contractor must report a lost or stolen PIV/identification card to the Government authorities as identified in Directive/Handbook 0735. Within 48 hours of reporting the lost/stolen PIV/identification card, the Contractor must submit to the Program Manager an incident report that describes the relevant facts and circumstances regarding the loss/theft. If the loss/theft was reported by the Contractor to the local police, the Contractor must further submit a copy of the final police report to the Program Manager within 48 hours of the report being made available by the local police department. The Government will not reimburse the Contractor for any costs that result from lost/stolen PIV/identification card(s).  
• (g) Regular Reporting. The Contractor must submit a status report to PIV Sponsor within 5 working days after the end of each calendar quarter and as requested by the Government in order to initiate contract closeout procedures. The report must provide the status of each contractor/subcontractor employee who is required to have a PIV/identification card during the performance of the contract. The report must identify the Contractor and the contract number, and list the following status for each contractor/subcontractor employee who holds a PIV/identification card under this contract: 
  • 1. Contractor/subcontractor employee name.  
  • 2. Name of VA facility where Contractor/subcontractor employee works, if applicable.  
  • 3. Date background check submitted for Contractor/subcontractor employee.  
  • 4. Date PIV/identification card issued to Contractor/subcontractor employee.  
  • 5. Contractor/subcontractor employee’s PIV/identification card number, as applicable.  
  • 6. Date Contractor/subcontractor employee no longer has need for PIV/identification card.  
  • 7. Date Contractor notified VA that PIV/identification card is no longer required.  
  • 8. Date Contractor returned PIV/identification card to VA.  
• (h) Flow down of clause. The Contractor must include the substance of this clause in subcontracts, third-party agreements, and BAA’s, in which subcontractors, third-party servicers/employees, and business associates will perform functions where they will have physical access to a VA facility or logical access to VA data, information, VA sensitive information, or information technology or VA information system containing such data or information.  

(End of clause) 

852.209-70 Organizational Conflicts of Interest. 

As prescribed in 809.507-1, insert the following provision:  

ORGANIZATIONAL CONFLICTS OF INTEREST (OCT 2026)(DEVIATION) 

• (a) It is in the best interest of the Government to avoid situations which might create an organizational conflict of interest or where the Offeror’s performance of work under the contract may provide the Contractor with an unfair competitive advantage. The term “organizational conflict of interest” means that because of other activities or relationships with other persons, a person is unable to render impartial assistance or advice to the Government, or the person’s objectivity in performing the contract work is or might be otherwise impaired, or the person has an unfair competitive advantage.  
• (b) The Offeror must provide a statement with its offer which describes, in a concise manner, all relevant facts concerning any past, present, or currently planned interest (financial, contractual, organizational, or otherwise) or actual or potential organizational conflicts of interest relating to the services to be provided under this solicitation. The Offeror must also provide statements with its offer containing the same information for any consultants and subcontractors identified in its proposal and which will provide services under the solicitation. The Offeror may also provide relevant facts that show how its organizational and/or management system or other actions would avoid or mitigate any actual or potential organizational conflicts of interest.  
• (c) Based on this information and any other information solicited or obtained by the Contracting Officer, the Contracting Officer may determine that an organizational conflict of interest exists which would warrant disqualifying the Contractor for award of the contract unless the organizational conflict of interest can be mitigated to the Contracting Officer’s satisfaction by negotiating terms and conditions of the contract to that effect. If the conflict of interest cannot be mitigated and if the Contracting Officer finds that it is in the best interest of the United States to award the contract, the Contracting Officer may request a waiver in accordance with FAR 9.503.  
• (d) Nondisclosure or misrepresentation of actual or potential organizational conflicts of interest at the time of the offer or arising as a result of a modification to the contract may result in the termination of the contract at no expense to the Government.  

(End of provision) 

852.211-76  Liquidated Damages—Data Breach of Sensitive Personal Information.  

As prescribed in 811.403, insert the following clause: 

LIQUIDATED DAMAGES – DATA BREACH OF SENSITIVE PERSONAL INFORMATION (OCT 2026)(DEVIATION) 

• (a) Definitions. As used in this clause – 
• Contract  has the same meaning as set forth in FAR part 2, and also includes any agreement, order, and other similar instruments.
• Data breach  means the loss, theft, or other unauthorized access, other than those incidental to the scope of employment, to data containing sensitive personal information, in electronic or printed form, that results in the potential compromise of the confidentiality or integrity of the data. 
• Sensitive personal information  means, with respect to an individual, any information about an individual, including: education, financial transactions, medical history, criminal or employment history; and information that can be used to distinguish or trace the individual’s identity, including name, social security number, date and place of birth, mother’s maiden name, or biometric records.  
• (b) Non-disclosure requirements. This contract may require access to sensitive personal information — 
  • (1) The Contractor is not permitted, directly or through its affiliates (subcontractors, business associates, and similar entities), to disclose this sensitive personal information to any other person or entity unless the disclosure is lawful and is expressly permitted under the contract. 
  • (2) The Contractor, or any of its subcontractors, is required to promptly notify the Contracting Officer and the Contracting Officer’s Representative of any data breach that occurs with respect to this sensitive personal information. 
• (c) Liquidated damages. In addition to any other damages and remedies available under this contract, liquidated damages must be paid by the Contractor to VA in the event of a data breach with respect to any sensitive personal information processed or maintained by the Contractor or any of its affiliates under or in connection with the contract. Liquidated damages will be calculated by VA to cover the costs to provide credit protection and related services in accordance with 38 U.S.C. 5725. 

(End of clause) 

852.212-71 Gray Market and Counterfeit Items. 

As prescribed in 812.205-70, insert the following clause in solicitations and contracts for new medical and information technology equipment:  

GRAY MARKET AND COUNTERFEIT ITEMS (OCT 2026)(DEVIATION) 

• (a) This procurement is restricted to new Original Equipment Manufacturer (OEM) items only. The contractor must furnish only new, authentic OEM goods, such as supplies or equipment/parts, or software licenses. The contractor is prohibited from providing used, refurbished, remanufactured, or gray market goods. Gray market goods refer to OEM goods sold, intentionally or unintentionally, outside of an authorized sales territory or through unauthorized dealers within authorized sales territory. 
• (b)The contractor must furnish only new, authentic, and unmodified goods from OEMs or authorized suppliers. The contractor is prohibited from providing counterfeit goods, including any unauthorized reproductions, substitutions, or alterations. This prohibition also applies to used items/goods that are misrepresented as new, as well as materials with falsified or misleading information about grade, serial number, lot number, date code, or performance specifications. 
• (c) The contractor must be an OEM, authorized dealer, authorized distributor, or authorized reseller for the proposed equipment/system, verified by an authorization letter or other documents from the OEM. All software licensing, warranties and services associated with the equipment/system must be in accordance with the OEM terms and conditions. 

(End of clause)

852.212-72 Gray Market and Counterfeit Items—Information Technology Maintenance Allowing Other-Than-New Parts. 

As prescribed in 812.205-70 insert the following clause: 

GRAY MARKET AND COUNTERFEIT ITEMS—INFORMATION TECHNOLOGY MAINTENANCE ALLOWING OTHER-THAN-NEW PARTS (OCT 2026)(DEVIATION) 

• (a) The contractor may furnish used, refurbished, or remanufactured parts; however, the contractor is strictly prohibited from providing gray market supplies or equipment. Gray market goods refer to Original Equipment Manufacturer (OEM) goods sold, intentionally or unintentionally, outside of an authorized sales territory or through unauthorized dealers within authorized sales territory. 
• (b) The contractor must furnish only authentic and unmodified supplies or equipment/parts from original manufacturers or authorized suppliers. Counterfeit supplies or equipment/parts are strictly prohibited. The contractor is prohibited from providing counterfeit supplies, equipment, or parts, including any unauthorized reproductions, substitutions, or alterations. This prohibition also applies to used items that are misrepresented as new, as well as materials with falsified or misleading information about grade, serial number, lot number, date code, or performance specifications. 
• (c) Contractor must be an OEM, authorized dealer, authorized distributor, or authorized reseller for the proposed equipment/system, verified by an authorization letter or other documents from the OEM. All software licensing, warranties and services associated with the equipment/system must be in accordance with the OEM terms and conditions. 

(End of clause) 

852.214-71 Restrictions on Alternate Item(s). 

As prescribed in 814.207(a)(1), insert the following provision:  

RESTRICTIONS ON ALTERNATE ITEM(S) (OCT 2026)(DEVIATION) 

Bids on [  ]* will be considered only if acceptable bids on [  ]** are not received or do not satisfy the total requirement.  

(End of provision) 

*Contracting officer will insert an alternate item that is considered acceptable.  
**Contracting officer will insert the required item and item number.  

852.214-72 Alternate Item(s). 

As prescribed in 814.207(a)(2), insert the following provision:  

ALTERNATE ITEM(S) (OCT 2026)(DEVIATION) 

Bids on [  ]* will be given equal consideration along with bids on [  ]** and any such bids received may be accepted if to the advantage of the Government.  Tie bids will be decided in favor of [  ].**  

(End of provision) 

*Contracting officer will insert an alternate item that is considered acceptable.  
**Contracting officer will insert the required item and item number.  

852.214-73 Alternate Packaging and Packing. 

As prescribed in 814.207(a)(3), insert the following provision:  

ALTERNATE PACKAGING AND PACKING (OCT 2026)(DEVIATION) 

The bidders offer must clearly indicate the quantity, package size, unit, or other different feature upon which the quote is made.  Evaluation of the alternate or multiple alternates will be made on a common denominator such as per ounce, per pound, etc., basis.  

(End of provision) 

852.214-74 Marking of Bid Samples. 

As prescribed in 814.207(b), insert the following provision:  

MARKING OF BID SAMPLES (OCT 2026)(DEVIATION) 

Any bid sample(s) furnished must be in the quantities specified in the solicitation.  Cases or packages containing any bid sample(s) must be plainly marked “Bid Sample(s)” with the complete lettering/numbering and description of the related bid item(s), the number of the Invitation for Bids, and the name of the bidder submitting the bid sample(s).  

(End of provision) 

852.216-73 Economic Price Adjustment – State Nursing Home Care for Veterans. 

As prescribed in 816.203-4(e)(1), insert the following clause: 

ECONOMIC PRICE ADJUSTMENT-STATE NURSING HOME CARE FOR VETERANS (MAR 2018) 

• (a) Rate Determination. The per diem rate is established by the current Medicaid rate for Medicaid approved nursing home care plus a fair market amount (percentage) to cover the costs of supplies, services, and equipment above that provided under Medicaid established by the local State Medicaid Agency (SMA). Rates established after the effective date of this contract will require a modification to the contract by the contracting officer. 
  • (1) The Medicaid rate covers room, board, and routine nursing care services. 
  • (2) For all levels of nursing care a percentage is added for routine ancillary services/supplies, such as drugs, nursing supplies, oxygen (occasional use), x-ray, laboratory, physician visits, and rental equipment. 
  • (3) Special equipment, e.g. Clinitron bed, is not considered routine ancillary services (and may not be provided by VA). 
  • (4) Drug costs which comprise more than eight and one-half percent (8.5%) of the per diem rate are generally not considered routine ancillary supplies (and may not be provided by VA). 
  • (5) Rehabilitation therapies will be provided as distinct levels of care, i.e., skilled, intermediate, and custodial care. Hospice Care and Dialysis are not included in the rate. Payment for Hospices and Dialysis services is provided by the VA or other payers as determined by the Veteran with VA’s approval. 
• (b) Economic Price Adjustment. This clause does not apply to ancillary services that may be added or deleted from the agreement. 
  • (1) The per diem rate(s) will apply throughout the term of this contract, including extension period(s). The rate(s) may be adjusted only to reflect a change in a Medicaid rate as authorized by the SMA. Normally, this will be on an annual basis. The negotiated percentage above the Medicaid rate, to cover the all-inclusive nature of the contract, will not be renegotiated, but will be applied and added to the new Medicaid rate for the adjusted per diem rate for each level of care item. In this regard, new rates will be negotiated requiring a modification to the contract. Each per diem price adjustment under this clause is subject to the following limitations: 
    • (i) Any adjustment will be limited to the effect of increases or decreases in the approved SMA’s patient care components within the affected Medicaid groups. 
    • (ii) Adjustments will occur no more frequently than those issued by the SMA. 
    • (iii) No adjustments are made until the contracting officer receives from the SMA an authenticated copy of the new rates signed and dated at the top right of the document by the authorized nursing home official. Within ten days after this occurs, the contracting officer will execute an approval signature and date at the approximate locations of the nursing home official’s signature, the action of which will serve as the effective date of the adjusted rate. A copy of the fully executed document will be sent to the nursing home official for record keeping purposes.

(End of clause) 

852.216-74 Economic Price Adjustment – Medicaid Labor Rates. 

As prescribed in 816.203-4(e)(2), insert the following clause: 

ECONOMIC PRICE ADJUSTMENT-MEDICAID LABOR RATES (MAR 2018) 

• (a) The contractor must notify the contracting officer if, at any time during contract performance, the Medicaid rate set by the State Medicaid Agency (SMA) for contract line item increases or decreases in the Schedule. The contractor must furnish this notice within 60 days after the increase or decrease, or within any additional period that the contracting officer may approve in writing, but not later than the date of final payment under this contract. The notice must include the contractor’s proposal for an adjustment in the contract unit prices to be negotiated under paragraph (b) of this clause, and must include, in the form required by the contracting officer, supporting data explaining the cause, effective date, and the amount of the increase or decrease and the amount of the contractor’s adjustment proposal. 
• (b) The contracting officer and the Contractor must negotiate a price adjustment to the contract’s unit prices and its effective date upon receipt of the notice and data under paragraph (a) of this clause. However, the contracting officer may postpone the negotiations until an accumulation of increases and decreases of the Medicaid labor rates (including fringe benefits) shown in the Schedule results in an adjustment allowable under paragraph (c)(3) of this clause. The contracting officer must modify this contract as follows: 
  • (1) Include the price adjustment and its effective date; 
  • (2) Revise the Medicaid labor rates (including fringe benefits) as shown in the Schedule to reflect the increases or decreases resulting from the SMA adjustment. The Contractor must continue performance pending agreement on, or determination of, any adjustment and its effective date. 
• (c) Any price adjustment under this clause is subject to the following limitations: 
  • (1) Adjustment will be limited to the effect on unit prices of the increases or decreases of the Medicaid rates of pay for labor (including fringe benefits) shown in the Schedule. There will be no adjustment for changes in rates or unit prices other than those shown in the Schedule. 
  • (2) No upward adjustment will apply to supplies or services that are required to be delivered or performed before the effective date of the adjustment, unless the Contractor’s failure to deliver or perform according to the delivery schedule results from causes beyond the Contractor’s control and without its fault or negligence, within the meaning of the Default clause. 
  • (3) There will be no adjustment for any change in rates of pay for labor (including fringe benefits) or unit prices for material which would not result in a net change of at least three percent of the then-current total contract price. This limitation will not apply, however, if, after final delivery of all contract line items, either party requests an adjustment under paragraph (b) of this clause. 
  • (4) The aggregate of the increases in any contract unit price made under this clause must not exceed 10 percent of the original unit price. There is no percentage limitation on the amount of decreases made under this clause. 
• (d) The contracting officer, precluding certified cost and pricing data may examine the Contractor’s books, records, and other supporting data relevant to the cost of labor (including fringe benefits) and material during all reasonable times until the end of 3 years after the date of final payment under this contract or the time periods specified in Subpart 4.7 of the Federal Acquisition Regulation (FAR), whichever is earlier. 

(End of clause) 

852.216-75 Economic Price Adjustment – Fuel Surcharge. 

As prescribed in 816.203-4(e)(3), insert the following clause: 

ECONOMIC PRICE ADJUSTMENT-FUEL SURCHARGE (NOV 2021) 

• (a) To the extent that contract fuel cost increases are provided for by this economic price adjustment clause, the Contractor warrants that the prices in this contract for any option periods do not include any amount to protect against such contingent fuel cost increases. 
• (b) The fuel cost index, for the purpose of price adjustment under this clause, is the “Weekly Retail On-Highway Diesel Prices Index.” The Base Fuel Cost, for the purpose of price adjustments under this clause, is the most recent Index Weekly Average Diesel Fuel Price per gallon published prior to the closing date for receipt of offers, or the due date for receipt of final proposal revisions if discussions are held. 
• (c) For purposes of this clause, it will be conclusively presumed that ___%[contracting officer insert number] increase or decrease of the Base Fuel Cost represents a reasonable fluctuation of diesel fuel prices. The Base Fuel Cost (±) ___%[contracting officer insert number] price range will be determined for the base contract year and will remain constant throughout the life of the contract, including option years. Base Fuel Cost price range is documented at time of contract award. 
• (d) Increases (or decreases) in the diesel fuel costs (Base Fuel Cost (±) ___%) [contracting officer insert number] as listed on the Index two weeks prior to the end of each calendar quarter can trigger a request from the Contractor to the Government (or from the Government to the Contractor) for cost adjustments. Notice must be in writing to the Subsistence Prime Vendor (SPV) contracting officer (or contracting officer’s representative) no less than ten days prior to the beginning of the next quarter. 
• (e) Since fuel cost is only a part of the SPV Contracted distribution cost, the adjustment will be made as a penny per delivered case for every ten cent fuel price per gallon increase or decrease to the Base Fuel Cost (±) ___% [contracting officer insert number]. The difference is rounded down to the nearest whole cent and will be added to last line of each invoice noted as “Fuel Adjustment”. 

Example calculation of fuel price change:	Price $2.50 Base (+ or −) 15% Average National Diesel Fuel $2.88−$2.13.
3rd QTR (3rd week June) first year. Fuel Price $3.05 Calculation:	$3.05−2.88 = $.17 (rounded down to 10 cents) Add one cent per delivered case to each invoice, starting first Monday of July.
3rd QTR Diesel Fuel Price decrease	$2.13−1.80 = $ .33 (rounded down to $.30 cents) Credit each invoice.
$1.80 Calculation:	$.03 cents per delivered case.

• (f) Once approved, the date for contract fuel price adjustment will be the first Monday of the first month of each quarter unless otherwise designated at time of contract award. 
• (g) The contracting officer must retain a copy of the Base Fuel Index establishing the Base Fuel Cost and the calculation of the price range incorporating the (±) ___% [contracting officer insert number] adjustment in the contract file. All subsequent changes will be documented within the contract file and communicated to the Contractor and VA SPV customers via email one week prior to the fuel price adjustment implementation. 
• (h) Any adjustments for fuel price changes will only be implemented if requested in writing, reviewed by both parties, and provided within the designated time frames. No retroactive cost adjustments will be made. A contract modification will be issued at inception of first increase or decrease detailing Base Fuel Cost, price range, and calculation of first fuel adjustment charge. Adjustment will remain in effect with quarterly calculation changes as needed until price falls within Base Fuel Cost price range. A contract modification will be issued to terminate the adjustment when price returns to Base Fuel Cost (±) x% [contracting officer insert number] price range. 
• (i) In the event that “the Energy Information Administration, Department of Energy” discontinues, or substantially alters its method of calculating the national average diesel fuel prices, the parties must mutually agree upon an appropriate substitute for determining the price adjustment. If the contracting officer determines the Index consistently and substantially fails to reflect market conditions, the contracting officer may modify the contract to specify use of an appropriate substitute Index, effective on the date the Index begins to consistently and substantially fail to reflect market conditions. 
• (j) Any dispute arising under this clause will be determined in accordance with and subject to the “Disputes” clause of the contract. 

(End of clause) 

852.216-76 Requirements – Supplement for Mortuary Services. 

As prescribed in 816.505-70, insert the following clause: 

REQUIREMENTS – SUPPLEMENT FOR MORTUARY SERVICES (OCT 2019) 

• (a) Except as provided in paragraphs (c) and (d) of this clause, the Government will order from the Contractor all of its requirements in the area of performance for the supplies and services listed in the schedule of this contract. 
• (b) Each order will be issued as a delivery order and will list – 
  • (1) The supplies or services being ordered; 
  • (2) The quantities to be furnished; 
  • (3) Delivery or performance dates; 
  • (4) Place of delivery or performance; 
  • (5) Packing and shipping instructions; 
  • (6) The address to send invoices; and 
  • (7) The funds from which payment will be made. 
• (c) The Government may elect not to order supplies and services under this contract in instances where the body is removed from the area for medical, scientific, or other reason. 
• (d) In an epidemic or other emergency, the contracting activity may obtain services beyond the capacity of the Contractor’s facilities from other sources. 
• (e) Contracting officers of the following activities may order services and supplies under this contract: ____________ [contracting officer insert activities] 

(End of clause) 

852.219-70 VA Small Business Subcontracting Plan Minimum Requirements. 

As prescribed in 819.109(d), insert the following clause: 

VA SMALL BUSINESS SUBCONTRACTING PLAN MINIMUM REQUIREMENTS (OCT 2026)(DEVIATION) 

• (a) This clause does not apply to small business concerns. 
• (b) If the offeror is required to submit an individual subcontracting plan, the minimum goals for award of subcontracts to Service Disabled Veteran Owned Small Business and Veteran Owned Small Business (SDVOSB/VOSB) must be at least commensurate with the Department’s annual SDVOSB/VOSB subcontracting goals. 
• (c) For a commercial plan, the minimum goals for award of subcontracts to SDVOSB/VOSB must be at least commensurate with the Department’s annual service-disabled veteran-owned small business and veteran-owned small business subcontracting goals for the total value of projected subcontracts to support the sales for the commercial plan. 
• (d) To be credited toward goal achievements, SDVOSB/VOSBs must be listed in SBS. 

(End of clause) 

852.219-74 VA Notice of Total Set-Aside for Veteran-Owned Small Businesses. 

As prescribed in 819.7010, insert the following clause: 

VA Notice of Total Set-Aside for Veteran-Owned Small Businesses (OCT 2026)(DEVIATION) 

• (a) Definitions. 

Veteran-owned small business (VOSB) concern means a small business concern— 

• (1)(i) Not less than 51 percent of which is owned and controlled by one or more 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 veterans; and 
  • (ii) The management and daily business operations of which are controlled by one or more veterans; or 
• (2) Veteran, as used in this definition, is defined as a person who served in the active military, naval, air, or space service and was discharged or released under conditions other than dishonorable in accordance with 38 U.S.C. 101(2). 
• (b) Applicability. This clause applies only to— 
  • (1) Contracts that have been set aside for, or awarded on a sole-source basis to VOSB; 
  • (2) Part or parts of a multiple-award contract that have been set aside for VOSB; and 
  • (3) Orders set aside for VOSB under multiple-award contracts as described in 8.4 and 16.5. 
• (c) General. 
  • (1) Offers are solicited only from concerns designated in SAM as VOSB concerns certified by SBA. Offers received from concerns that are not VOSB concerns certified by SBA will not be considered. 
  • (2) Any award resulting from this solicitation will be made only to a concern designated in SAM as VOSB certified by SBA. 
• (d) A joint venture may be considered an VOSB concern if the managing partner of the joint venture complies with the criteria defined in paragraph (a) of this clause and 13 CFR 128.402. 
• (e) In a joint venture that complies with paragraph (d) of this clause, the VOSB party or parties to the joint venture must perform at least 40 percent of the work performed by the joint venture. Work performed by the VOSB party or parties to the joint venture must be more than administrative functions. 

(End of clause) 

852.219-75 VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction.  

As prescribed in 819.7010, insert the following clause in full text. The Contracting Officer must select the appropriate box in paragraph (a)(1) as appropriate:  

VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—CERTIFICATE OF COMPLIANCE FOR SERVICES AND CONSTRUCTION (OCT 2026)(DEVIATION) 

• (a) Pursuant to 38 U.S.C. 8127(l)(2), the offeror certifies that— 
  • (1) If awarded a contract, it will comply with the limitations on subcontracting requirement as provided in the solicitation and the resultant contract, as follows: [Contracting Officer must select the appropriate box below based on the predominant NAICS code assigned to the instant acquisition as set forth in FAR 19.102. [Contracting officers should delete these instructions from the clause after selecting the appropriate box below.] 
    • (i) [ ] Services. In the case of a contract for services (except construction), the contractor will not pay more than 50% of the amount paid by the government to it to firms that are not listed in SBS as SDVOSBs or VOSBs. Any work that a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. Other direct costs may be excluded to the extent they are not the principal purpose of the acquisition and small business concerns do not provide the service as set forth in 13 CFR 125.6. 
    • (ii) [ ] General construction. In the case of a contract for general construction, the contractor will not pay more than 85% of the amount paid by the government to it to firms that are not certified as SDVOSBs or VOSBs listed in SBS. Any work that a similarly situated  SDVOSB/VOSB subcontractor further subcontracts will count towards the 85% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted. 
    • (iii) [ ] Special trade construction contractors. In the case of a contract for special trade contractors, the contractor will not pay more than 75% of the amount paid by the government to it to firms that are not listed in SBS as SDVOSBs/VOSBs. Any work that a similarly situated SDVOSB/VOSB subcontractor further subcontracts will count towards the 75% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted. 
  • (2) The offeror acknowledges that this certification concerns a matter within the jurisdiction of an Agency of the United States. The offeror further acknowledges that this certification is subject to Title 18, United States Code, Section 1001, and, as such, a false, fictitious, or fraudulent certification may render the offeror subject to criminal, civil, or administrative penalties, including prosecution. 
  • (3) If VA determines that an SDVOSB/VOSB awarded a contract pursuant to 38 U.S.C. 8127 did not act in good faith, such SDVOSB/VOSB must be subject to any or all of the following: 
    • (i) Referral to the VA Suspension and Debarment Committee; 
    • (ii) A fine under section 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and 
    • (iii) Prosecution for violating section 1001 of title 18. 
• (b) The offeror represents and understands that by submission of its offer and award of a contract it may be required to provide copies of documents or records to VA that VA may review to determine whether the offeror complied with the limitations on subcontracting requirement specified in the contract. Contracting officers may, at their discretion, require the contractor to demonstrate its compliance with the limitations on subcontracting at any time during performance and upon completion of a contract if the information regarding such compliance is not already available to the contracting officer. Evidence of compliance includes, but is not limited to, invoices, copies of subcontracts, or a list of the value of tasks performed. 
• (c) The offeror further agrees to cooperate fully and make available any documents or records as may be required to enable VA to determine compliance with the limitations on subcontracting requirement. The offeror understands that failure to provide documents as requested by VA may result in remedial action as the Government deems appropriate. 
• (d) This full clause (paragraphs (a) through (d)) should be returned with the offeror’s bid, quotation, or proposal and the certification provided in this paragraph (d) must be completed and executed. The Government cannot award a contract to any offeror without this completed and executed clause. 
• The offeror certifies that if awarded the contract, it will comply with the limitations on subcontracting specified in this clause and in the resultant contract. The undersigned certifies that they are authorized to execute this certificate on behalf of the offeror. 
  • Printed Name of Signee:  _________________________________________ 
  • Printed Title of Signee:  __________________________________________ 
  • Signature:  _____________________________________________________ 
  • Date:  _________________________________________________________ 

(End of clause) 

852.219-76 VA Notice of Limitations on Subcontracting—Certificate of Compliance for Supplies and Products.  

As prescribed in 819.7010, insert the following clause in full text:  

VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—CERTIFICATE OF COMPLIANCE FOR SUPPLIES AND PRODUCTS (OCT 2026)(DEVIATION) 

• (a) Pursuant to 38 U.S.C. 8127(l)(2), the offeror certifies that— 
  • (1) If awarded a contract, it will comply with the limitations on subcontracting requirement as provided in the solicitation and the resultant contract, as follows: [Offeror must identify itself as either a manufacturer or nonmanufacturer by selecting the appropriate boxes below.] 
    • (i) [ ]  Manufacturer or producer. The offeror certifies that it is the manufacturer or producer of the end item being procured, and the end item is manufactured or produced in the United States. 
      • (A) [ ] In the case of a contract for supplies or products (other than from a non-manufacturer of such supplies), the offeror certifies that it will not pay more than 50% of the amount paid by the government to it to firms that are not listed in SBS as SDVOSBs or VOSBs. Any work that a similarly situated SDVOSB/VOSB subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted. 
    • (ii) [ ]Nonmanufacturer. The offeror certifies that it qualifies as a nonmanufacturer in accordance with the requirements of 13 CFR 121.406(b). The offeror further certifies it meets each element below, as required, in order to qualify as a nonmanufacturer. [The offeror must select the appropriate boxes below that apply to the offeror.] 
      • A. [ ] The offeror certifies that it does not exceed 500 employees (or  150 employees for the Information Technology Value Added Reseller exception to NAICS code 541519, which is found at 13 CFR 121.201, footnote 18). 
      • B. [ ] The offeror certifies that it is primarily engaged in the retail or wholesale trade and normally sells the type of item being supplied. 
      •  C. [ ] The offeror certifies that it will take ownership or possession of the item(s) with its personnel, equipment, or facilities in a manner consistent with industry practice.  
      • D. [ ] The offeror certifies that it will supply the end item of a small business manufacturer, processor, or producer made in the United States. 
        • (1) If this acquisition is utilizing a waiver or waivers SBA has granted for the end items being acquired, the offeror understands that, as provided in 13 CFR 121.406(b)(7), such a waiver has no effect on requirements external to the Small Business Act, such as the Buy American statute or the Trade Agreements Act. 
        • (2) The offeror acknowledges that this certification concerns a matter within the jurisdiction of an Agency of the United States. The offeror further acknowledges that this certification is subject to Title 18, United States Code, Section 1001, and, as such, a false, fictitious, or fraudulent certification may render the offeror subject to criminal, civil, or administrative penalties, including prosecution.  
        • (3) If the government determines that an SDVOSB/VOSB awarded a contract pursuant to 38 U.S.C. 8127 did not act in good faith, such SDVOSB/VOSB must be subject to any or all of the following:  
          • (i) Referral to the VA Suspension and Debarment Committee;  
          • (ii) A fine under section 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and  
          • (iii) Prosecution for violating 18 U.S.C. 1001. 
•  (b) The offeror represents and understands that by submission of its offer and award of a contract it may be required to provide copies of documents or records to VA that VA may review to determine whether the offeror complied with the limitations on subcontracting requirement specified in the contract or to determine whether the offeror qualifies as a manufacturer or nonmanufacturer in compliance with the limitations on subcontracting requirement. The government may, at their discretion, require the contractor to demonstrate its compliance with the limitations on subcontracting at any time during performance and upon completion of a contract if the information regarding such compliance is not already available to the contracting officer. Evidence of compliance includes, but is not limited to, invoices, copies of subcontracts, or a list of the value of tasks performed.  
• (c) The offeror further agrees to cooperate fully and make available any documents or records as may be required to enable VA to determine compliance. The offeror understands that failure to provide documents as requested by VA may result in remedial action as the Government deems appropriate.  
• (d) This full clause (paragraphs (a) through (d)) should be returned with the offeror’s bid, quotation, or proposal and the certification provided in this paragraph (d) must be completed and executed. The Government cannot award a contract to any offeror without this completed and executed clause. 
• The offeror certifies that if awarded the contract, it will comply with the limitations on subcontracting specified in this clause and in the resultant contract. The undersigned certifies that they are authorized to execute this certification on behalf of the offeror. 
  • Printed Name of Signee:  ________________________________________ 
  • Printed Title of Signee:  _________________________________________ 
  • Signature:  ____________________________________________________ 
  • Date:  _________________________________________________________ 

(End of clause) 

Alternate I (OCT 2026)(DEVIATION) As prescribed in 819.7010, the contracting officer must use this alternate paragraph (a)(1)(ii)(D) if the acquisition is a multiple item acquisition pursuant to 13 CFR 121.406(d). 

• (D) [ ] This is a multiple item acquisition. The offeror certifies that at least 50% of the estimated contract value is composed of items that are manufactured by small business concerns and/or subject to an SBA waiver. 
  • (1) If this acquisition is utilizing a waiver or waivers SBA has granted for the end items being acquired, the offeror understands that, as provided in 13 CFR 121.406(b)(7), such a waiver has no effect on requirements external to the Small Business Act, such as the Buy American statute or the Trade Agreements Act. 

(End of clause) 

852.219-77 Service-Disabled Veteran-Owned and Veteran-Owned Small Business Subcontracting Plan Requirements  

As prescribed in 819.109(e), insert the following clause: 

SERVICE-DISABLED VETERAN-OWNED AND VETERAN-OWNED SMALL BUSINESS SUBCONTRACTING PLAN REQUIREMENTS (OCT 2026)(DEVIATION) 

• (a) In an effort to achieve socioeconomic small business goals, VA must evaluate offerors based on their service-disabled Veteran-owned or Veteran-owned small business certification status and their proposed use of Service Disabled Veteran Owned Small Businesses (SDVOSB) and Veteran Owned Small Businesses (VOSB) as subcontractors. 
• (b) Evaluation of SDVOSB and VOSB must be rated according to the terms and conditions of the solicitation.
• (c) Offerors must state in their proposals the names of the SDVOSBs and VOSBs with whom they intend to subcontract. Offerors must also provide a brief description of the proposed subcontracts and the approximate dollar values of the proposed subcontracts. In order to qualify as SDVOSB or VOSB, the proposed subcontractors must be listed in SBS as SDVOSB/VOSB at the time of submission of offers and at time of award. 

(End of clause) 

852.219-78 Subcontracting Commitments.  

As prescribed in 819.109(f), insert the following clause:  

SUBCONTRACTING COMMITMENTS (OCT 2026)(DEVIATION) 

              (a) The offeror agrees, if awarded a contract, to use the service-disabled veteran-owned small businesses (SDVOSBs) or veteran-owned small businesses (VOSBs) proposed as subcontractors in accordance with 852.219-77 Service-Disabled Veteran-Owned and Veteran-Owned Small Business Subcontracting Plan Requirements, or to substitute one or more SDVOSBs or VOSBs for subcontract work of the same or similar value.  

(End of clause) 

852.222-70 Contract Work Hours and Safety Standards – Nursing Home Care for Veterans. 

As prescribed in 822.301-2, insert the following clause: 

CONTRACT WORK HOURS AND SAFETY STANDARDS – NURSING HOME CARE FOR VETERANS (MAY 2018) 

• (a) No contractor and subcontractor under this contract is allowed to prohibit the payment of overtime wages to their employees for work in excess of 40 hours in any workweek, which would otherwise be a violation of Contract Work Hours and Safety Standards (40 U.S.C. 3701), provided – 
  • (1) The Contractor or subcontractor is primarily engaged in the care of nursing home patients residing on the contractor’s or subcontractor’s premises; 
  • (2) There is an agreement or understanding between the Contractor or subcontractor and their employees, before performance of work, that a work period of 14 consecutive days is acceptable in lieu of a work period of 7 consecutive days for the purpose of overtime compensation; 
  • (3) Employees receive overtime compensation at a rate no less than 1 1/2 times the employees’ regular hourly rate of pay for work in excess of 80 hours in any 14-day period; and 
  • (4) Pay is otherwise computed in accordance with the requirements of the Fair Labor Standards Act of 1938, as amended. 
• (b) Subcontracts. The Contractor must insert the text of this clause, including this paragraph (b), in subcontracts at any tier. The Contractor must be responsible for compliance by any subcontractor or lower-tier subcontractor with the provisions set forth in paragraphs (a) through (b) of this clause. 

(End of clause) 

852.222-71 Combating Anti-Semitism 

As prescribed in 822.2204, insert the following clause:  

COMBATING ANTI-SEMITISM (OCT 2026)(DEVIATION) 

• a. The contractor must comply with Executive Order 13899, Combating Anti-Semitism, pursuant to Title VI of the Civil Rights Act of 1964 (Title VI), 42 U.S.C. 2000d et seq.  
• b. The contractor must timely disclose, in writing, to the Contracting Officer, whenever, in connection with the award, performance, or closeout of this contract or any subcontract thereunder, the Contractor has credible evidence that a principal, employee, agent, or subcontractor of the Contractor has committed a violation under Executive Order 13899, Combating Anti-Semitism pursuant to the Civil Rights Act of 1964 (Title VI), 42 U.S.C. 2000d et seq.  
• c. The contractor must include the terms and conditions of this clause in every subcontract or purchase order so that these terms will be binding on every subcontractor or vendor.  

(End of clause) 

852.223-71 Safety and Health. 

As prescribed in 823.304-70, the contracting officer must insert the following clause: 

SAFETY AND HEALTH (SEP 2019) 

• (a) To help ensure the protection of the life and health of all persons, and to help prevent damage to property, the Contractor must comply with all Federal, State, and local laws and regulations applicable to the work being performed under this contract. These laws are implemented or enforced by the Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA) and other regulatory/enforcement agencies at the Federal, State, and local levels. 
  • (1) Additionally, the Contractor must comply with the following regulations when developing and implementing health and safety operating procedures and practices for both personnel and facilities involving the use or handling of hazardous materials and the conduct of research, development, or test projects: 
    • (i) 29 CFR 1910.1030, Blood-borne pathogens; 29 CFR 1910.1450, Occupational exposure to hazardous chemicals in laboratories. These regulations are available at https://www.osha.gov/. 
    • (ii) Nuclear Regulatory Commission Standards and Regulations, pursuant to the Energy Reorganization Act of 1974 (42 U.S.C. 5801 et seq.) Copies are available from the U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. 
  • (2) The following Government guidelines are recommended for developing and implementing health and safety operating procedures and practices for both personnel and facilities: 
    • (i) Biosafety in Microbiological and Biomedical Laboratories, Centers for Disease Control and Prevention (CDC), available at http://www.cdc.gov/biosafety/publications/index.htm. 
    • (ii) Prudent Practices in the Laboratory, National Research Council, National Academy Press, Washington, DC 20001, available at http://www.nap.edu. 
• (b)
  • (1) The Contractor must maintain an accurate record of, and promptly report to the contracting officer, all accidents or incidents resulting in the exposure of persons to toxic substances, hazardous materials or hazardous operations; the injury or death of any person; or damage to property incidental to work performed under the contract resulting from toxic or hazardous materials and resulting in any or all violations for which the Contractor has been cited by any Federal, State or local regulatory/enforcement agency. 
  • (2) The report must include a copy of the notice of violation and the findings of any inquiry or inspection, and an analysis addressing the impact these violations may have on the work remaining to be performed. The report must also state the required action(s), if any, to be taken to correct any violation(s) noted by the Federal, State, or local regulatory/enforcement agency and the time frame allowed by the agency to accomplish the necessary corrective action. 
• (c) If the Contractor fails or refuses to comply with the Federal, State or local regulatory/enforcement agency’s directive(s) regarding any violation(s) and prescribed corrective action(s), the contracting officer may issue an order stopping all or part of the work until satisfactory corrective action (as approved by the Federal, State, or local regulatory/enforcement agencies) has been taken and documented to the contracting officer. No part of the time lost due to any such stop work order must form the basis for a request for extension or costs or damages by the Contractor. 
• (d) The Contractor must insert this clause in each subcontract involving toxic substances, hazardous materials, or hazardous operations. The Contractor is responsible for the compliance of its subcontractors with the provisions of this clause. 

(End of clause) 

852.225-70 Made in America – Personal Protective Equipment (PPE).  

As prescribed in 825.7004(a), insert the following clause:  

MADE IN AMERICA-PERSONAL PROTECTIVE EQUIPMENT (PPE) (MAY 2026) (DEVIATION) 

• (a) Definitions. As used in this clause—  
• Component, as applied to an item described in subsection (b) of this clause, means an article, material, or supply incorporated directly into PPE. 
• Domestic PPE, as applied to an item described in subsection (b) of this clause, means PPE, including the materials and components thereof, that is grown, reprocessed, reused, or produced in the United States. 
• Foreign-made domestic PPE, as applied to an item described in subsection (b) of this clause, means PPE that is assembled outside the United States containing only materials and components that are grown, reprocessed, reused, or produced in the United States. 
• Foreign PPE means PPE other than domestic PPE or foreign-made domestic PPE.  
• Personal protective equipment (PPE), as applied to an item described in subsection (b) of this clause, means surgical masks, respirator masks and powered air purifying respirators and required filters, face shields and protective eyewear, gloves, disposable and reusable surgical and isolation gowns, head and foot coverings, and other gear or clothing used to protect an individual from the transmission of disease. 
• United States, as applied to an item described in subsection (b) of this clause, means the 50 States, the District of Columbia, and the possessions of the United States.  
• (b) The Contractor must deliver only domestic PPE, unless it specified delivery of foreign-made domestic or foreign PPE in the provision of the solicitation entitled “Made in America Certificate – Personal Protective Equipment (PPE).” 
• (c) The Buy American Act or Trade Agreement Act will be applicable if neither domestic PPE nor foreign made domestic PPE is available or is of unreasonable cost. 

(End of clause) 

852.225-71 Made in America Certificate – Personal Protective Equipment (PPE).  

As prescribed in 825.7004(b), insert the following provision:  

MADE IN AMERICA CERTIFICATE – PERSONAL PROTECTIVE EQUIPMENT (PPE) (MAY 2026) (DEVIATION)

• (a)(1) The Offeror certifies that each item of PPE is either domestic, foreign-made domestic, or foreign.  
  • (2) The Offeror must list all offered PPE in the table in paragraph (b) below and indicate the category of PPE (domestic, foreign-made domestic, or foreign).  
  • (3) The terms “domestic PPE,” “foreign-made domestic PPE,” foreign PPE,” and “PPE,” are defined in the clause of this solicitation entitled “Made in America—Personal Protective Equipment.”  
  • (4) The Offeror understands that the Buy American Act or Trade Agreement Act will be applicable if neither domestic PPE nor foreign made domestic PPE is available or is of unreasonable cost. 
• (b):

Line Item No.	Country of Origin	Domestic PPE, Foreign-made Domestic PPE, Foreign PPE
_________________	_____________________	_____________________
_________________	_____________________	_____________________
_________________	_____________________	_____________________

• (c) In the event the Department of Veterans Affairs determines both domestic personal protective equipment and foreign-made domestic personal protective equipment are not available due to nonavailability or unreasonable cost, the Contractor shall comply with the clauses at Federal Acquisition Regulation (FAR) 52.225-1 Buy American – Supplies or 52.225-3 Buy American – Free Trade Agreements – Israeli Trade Act and the provisions at FAR 52.225-2 Buy American Certificate or 52.225-4 Buy American – Free Trade Agreements – Israeli Trade Act Certificate or the clause at FAR 52.225-5 Trade Agreements and the provision at FAR 52.225-6 Trade Agreements Certificate, as identified in the solicitation.  

(End of provision) 

852.228-70 Bond Premium Adjustment. 

As prescribed in 828.106-4(c), insert the following clause:  

BOND PREMIUM ADJUSTMENT (OCT 2026)(DEVIATION) 

When net changes in original contract price affect the premium of a Corporate   

Surety Bond by $5 or more, the Government, in determining the basis for final settlement, will provide for bond premium adjustment computed at the rate shown in the bond.  

(End of clause) 

852.228-71 Indemnification and Insurance. 

As prescribed in 828.306, insert the following provision:  

INDEMNIFICATION AND INSURANCE (OCT 2026)(DEVIATION) 

• (a) Indemnification.  The contractor expressly agrees to indemnify and hold the Government, its officers, agents, servants, and employees harmless from and against any and all claims, loss, damage, injury, and liability, however caused, resulting from, arising out of, or in any way connected with the performance of work under this contract.  Further, it is agreed that any negligence or alleged negligence of the Government, its officers, agents, servants, and employees, must not be a bar to a claim for indemnification unless the act or omission of the Government, its officers, agents, servants, and employees is the sole, competent, and producing cause of such claims, loss, damage, injury, and liability.  At the option of the contractor, and subject to the approval by the contracting officer, insurance coverage may be employed as guaranty of indemnification.  
• (b) Insurance.  Satisfactory insurance coverage is a condition precedent to award of this contract.  In general, a successful contractor must present satisfactory evidence of full compliance with State and local requirements, or those below stipulated, whichever are the greater.  More specifically, workers’ compensation and employer’s liability coverage will conform to applicable State law requirements for the service defined, whereas general liability and automobile liability of comprehensive type must, in the absence of higher statutory minimums, be required in the amounts per vehicle used of not less than $200,000 per person and $500,000 per occurrence for bodily injury and $20,000 per occurrence for property damage.  State-approved sources of insurance coverage ordinarily will be deemed acceptable to the Department of Veterans Affairs, subject to timely certifications by such sources of the types and limits of the coverages afforded by the sources to the contractor.  [Contracting Officer’s Note:  In those instances where airplane service is to be used, substitute the word “aircraft” for “automobile” and “vehicle” and modify coverage to require aircraft public and passenger liability insurance of at least $200,000 per passenger and $500,000 per occurrence for bodily injury, other than passenger liability, and $200,000 per occurrence for property damage.  Coverage for passenger liability bodily injury must be at least $200,000 multiplied by the number of seats or passengers, whichever is greater.]  

  (End of clause) 

852.228-73 Indemnification of Contractor – Hazardous Research Projects. 

As prescribed in 828.7003, insert the following clause:  

INDEMNIFICATION OF CONTRACTOR—HAZARDOUS RESEARCH PROJECTS (OCT 2026)(DEVIATION) 

• (a) This contract involves work with a risk of an unusually hazardous nature as specifically defined in the contract.  The government must indemnify the Contractor,  including subcontractors of any tier, against losses or liability specified in paragraphs (b) and (c) of this clause if: 
  • (1) The losses or liability arise out of or results from a risk defined in this contract as unusually hazardous, and. 
  • (2) The losses or liability are not covered by the financial protection required by paragraph (c).  
• (b) The Government must indemnify a Contractor for:  
  • (1) Liability (including reasonable expenses of litigation or settlement) to third persons for death, bodily injury, or loss of or damage to property from a risk that the contract defines as unusually hazardous.  This indemnification must not cover liability under State or Federal worker’s injury compensation laws to employees of the Contractor who are both:  
    • (i) Employed at the site of the contract work; and  
    • (ii) Working on the contract for which indemnification is granted. 
  • (2) The Government must also indemnify the Contractor for loss of or damage to property of the Contractor from a risk that the contract defines as unusually hazardous.  
• (c) A Contractor must have and maintain an amount of financial protection to cover liability to third persons and loss of or damage to the Contractor’s property.  Financial protection may include private insurance, private contractual indemnities, self-insurance, other proof of financial responsibility, or a combination that provides the maximum amount required.  The financial protection provided must meet one of the following:  
  • (1) The maximum amount of insurance available from private sources, or  
  • (2) A lesser amount that the Secretary establishes after taking into consideration the cost and terms of private insurance.  
• (d) Actions in event of a claim:  
  • (1) The Contractor must notify the Contracting Officer of any claim or suit against the Contractor for death, bodily injury, or loss of or damage to property; and  
  • (2) The Government may elect to control or assist in the defense of any suit or claim for which indemnification is provided in the contract.  

(End of clause) 

852.232-70  Payments Under Fixed-Price Construction Contracts (Without NAS-CPM). 

As prescribed in 832.7200, insert the following clause in contracts that do not contain a section entitled “Network Analysis System-Critical Path Method (NAS-CPM)”, if in the best interest of VA: 

PAYMENTS UNDER FIXED-PRICE CONSTRUCTION CONTRACTS (WITHOUT NAS-CPM) (OCT 2026)(DEVIATION) 

The clause FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, is implemented as follows: 

• (a) Retainage: 
  • (1) The Contracting Officer may retain funds— 
    • (i) Where performance under the contract has been determined to be deficient or the Contractor has performed in an unsatisfactory manner in the past; or 
    • (ii) As the contract nears completion, to ensure that deficiencies will be corrected and that completion is timely. 
  • (2) Examples of deficient performance justifying a retention of funds include, but are not restricted to, the following— 
    • (i) Unsatisfactory progress as determined by the Contracting Officer; 
    • (ii) Failure to meet schedule in Schedule of Work Progress; 
    • (iii) Failure to present submittals in a timely manner; or 
    • (iv) Failure to comply in good faith with approved subcontracting plans, certifications, or contract requirements. 
  • (3) Any level of retention shall not exceed 10 percent either where there is determined to be unsatisfactory performance, or when the retainage is to ensure satisfactory completion.  Retained amounts shall be paid promptly upon completion of all contract requirements, but nothing contained in this paragraph (a)(3) shall be construed as limiting the Contracting Officer’s right to withhold funds under other provisions of the contract or in accordance with the general law and regulations regarding the administration of Government contracts. 
• (b) The Contractor shall submit a schedule of cost to the Contracting Officer for approval within 30 calendar days after date of receipt of notice to proceed.  Such schedule will be signed and submitted in triplicate.  The approved cost schedule will be one of the bases for determining progress payments to the Contractor for work completed.  This schedule shall show cost by the work activity/event for each building or unit of the contract, as instructed by the resident engineer. 
  • (1) The work activities/events shall be subdivided into as many sub-activities/events as are necessary to cover all component parts of the contract work. 
  • (2) Costs as shown on this schedule must be true costs and the resident engineer may require the Contractor to submit the original estimate sheets or other information to substantiate the detailed makeup of the schedule. 
  • (3) The sums of the sub-activities/events, as applied to each work activity/event, shall equal the total cost of such work activity/event.  The total cost of all work activities/events shall equal the contract price. 
  • (4) Insurance and similar items shall be prorated and included in the cost of each branch of the work. 
  • (5) The cost schedule shall include separate cost information for the systems listed in the table in this paragraph (b)(5).  The percentages listed below are proportions of the cost listed in the Contractor’s cost schedule and identify, for payment purposes, the value of the work to adjust, correct and test systems after the material has been installed.  Payment of the listed percentages will be made only after the Contractor has demonstrated that each of the systems is substantially complete and operates as required by the contract. 

VALUE OF ADJUSTING, CORRECTING, AND TESTING SYSTEM 

(End of clause) 

• Alternate I (OCT 2026)(DEVIATION).  If the specifications include guarantee period services, the Contracting Officer shall include the following paragraphs as additions to paragraph (b) of the basic clause: 
  • (6)(i) The Contractor shall at the time of contract award furnish the total cost of the guarantee period services in accordance with specification section(s) covering guarantee period services.  The Contractor shall submit, within 15 calendar days of receipt of the notice to proceed, a guarantee period performance program that shall include an itemized accounting of the number of work-hours required to perform the guarantee period service on each piece of equipment.  The Contractor shall also submit the established salary costs, including employee fringe benefits, and what the Contractor reasonably expects to pay over the guarantee period, all of which will be subject to the Contracting Officer’s approval. 
    • (ii) The cost of the guarantee period service shall be prorated on an annual basis and paid in equal monthly payments by VA during the period of guarantee.  In the event the installer does not perform satisfactorily during this period, all payments may be withheld and the Contracting Officer shall inform the Contractor of the unsatisfactory performance, allowing the Contractor 10 days to correct deficiencies and comply with the contract.  The guarantee period service is subject to those provisions as set forth in the Payments and Default clauses. 

852.232-71  Payments Under Fixed-Price Construction Contracts (Including NAS-CPM). 

As prescribed in 832.7200, insert the following clause in contracts that contain a section entitled “Network Analysis System-Critical Path Method (NAS-CPM)” if in the best interest of VA: 

PAYMENTS UNDER FIXED-PRICE CONSTRUCTION CONTRACTS (INCLUDING NAS-CPM) (OCT 2026) (DEVIATION) 

The clause entitled “Payments Under Fixed-Price Construction Contracts” in FAR 52.232-5 is implemented as follows: 

• (a) Retainage:
  • (1) The Contracting Officer may retain funds— 
    • (i) Where performance under the contract has been determined to be deficient or the Contractor has performed in an unsatisfactory manner in the past; or 
    • (ii) As the contract nears completion, to ensure that deficiencies will be corrected and that completion is timely.
  • (2) Examples of deficient performance justifying a retention of funds include, but are not restricted to, the following— 
    • (i) Unsatisfactory progress as determined by the Contracting Officer; 
    • (ii) Failure to meet schedule in Schedule of Work Progress; 
    • (iii) Failure to present submittals in a timely manner; or 
    • (iv) Failure to comply in good faith with approved subcontracting plans, certifications, or contract requirements. 
  • (3) Any level of retention shall not exceed 10 percent either where there is determined to be unsatisfactory performance, or when the retainage is to ensure satisfactory completion.  Retained amounts shall be paid promptly upon completion of all contract requirements, but nothing contained in this paragraph (a)(3) shall be construed as limiting the Contracting Officer’s right to withhold funds under other provisions of the contract or in accordance with the general law and regulations regarding the administration of Government contracts. 
• (b) The Contractor shall submit a schedule of costs in accordance with the requirements of section “Network Analysis System—Critical Path Method (NAS-CPM)” to the Contracting Officer for approval within 90 calendar days after date of receipt of notice to proceed.  The approved cost schedule will be one of the bases for determining progress payments to the Contractor for work completed. 
  • (1) Costs as shown on this schedule must be true costs and the resident engineer may require the Contractor to submit its original estimate sheets or other information to substantiate the detailed makeup of the cost schedule. 
  • (2) The total costs of all work activities/events shall equal the contract price. 
  • (3) Insurance and similar items shall be prorated and included in each work activity/event cost of the critical path method (CPM). 
  • (4) The CPM shall include a separate cost loaded activity for adjusting and testing of the systems listed in the table in paragraph (b)(5) of this section.  The percentages listed below will be used to determine the cost of adjust and test work activities/events and identify, for payment purposes, the value of the work to adjust, correct and test systems after the material has been installed. 
  • (5) Payment for adjust and test activities will be made only after the Contractor has demonstrated that each of the systems is substantially complete and operates as required by the contract. 

VALUE OF ADJUSTING, CORRECTING, AND TESTING SYSTEM 

System	Percent
Pneumatic tube system	10
Incinerators (medical waste and trash)	5
Sewage treatment plant equipment	5
Water treatment plant equipment	5
Washers (dish, cage, glass, etc.)	5
Sterilizing equipment	5
Water distilling equipment	5
Prefab temperature rooms (cold, constant temperature)	5
Entire air-conditioning system (Specified under 600 Sections)	5
Entire boiler plant system (Specified under 700 Sections)	5
General supply conveyors	10
Food service conveyors	10
Pneumatic soiled linen and trash system	10
Elevators and dumbwaiters	10
Materials transport system	10
Engine-generator system	5
Primary switchgear	5
Secondary switchgear	5
Fire alarm system	5
Nurse call system	5
Intercom system	5
Radio system	5
TV (entertainment) system	5

• (c) In addition to this cost schedule, the Contractor shall submit such unit costs as may be specifically requested.  The unit costs shall be those used by the Contractor in preparing its bid and will not be binding as pertaining to any contract changes. 
• (d) The Contracting Officer will consider for monthly progress payments material and/or equipment procured by the Contractor and stored on the construction site, as space is available, or at a local approved location off the site, under such terms and conditions as the Contracting Officer approves, including but not limited to the following— 
  • (1) The materials or equipment are in accordance with the contract requirements and/or approved samples and shop drawings; 
  • (2) The materials and/or equipment are approved by the resident engineer; 
  • (3) The materials and/or equipment are stored separately and are readily available for inspection and inventory by the resident engineer; 
  • (4) The materials and/or equipment are protected against weather, theft and other hazards and are not subjected to deterioration; and 
  • (5) The Contractor obtains the concurrence of its surety for off-site storage. 
• (e) The Government reserves the right to withhold payment until samples, shop drawings, engineer’s certificates, additional bonds, payrolls, weekly statements of compliance, proof of title, nondiscrimination compliance reports, or any other requirements of this contract, have been submitted to the satisfaction of the Contracting Officer. 
• (f) The Contracting Officer will notify the Contractor in writing within 10 calendar-days of exercising retainage against any payment in accordance with FAR clause 52.232-5(e).  The notice shall disclose the amount of the retainage in value and percent retained from the payment, and provide explanation for the retainage. 

(End of clause) 

• Alternate I (OCT 2026)(DEVIATION).  If the specifications include guarantee period services, the Contracting Officer shall include the following paragraphs as additions to paragraph (b) of the basic clause: 
  • (6)(i) The Contractor shall show on the critical path method (CPM) the total cost of the guarantee period services in accordance with the guarantee period service section(s) of the specifications.  This cost shall be priced out when submitting the CPM cost loaded network.  The cost submitted shall be subject to the approval of the Contracting Officer. The activity on the CPM shall have money only and not activity time. 
    • (ii) The Contractor shall submit with the CPM a guarantee period performance program which shall include an itemized accounting of the number of work-hours required to perform the guarantee period service on each piece of equipment.  The Contractor shall also submit the established salary costs, including employee fringe benefits, and what the Contractor reasonably expects to pay over the guarantee period, all of which will be subject to the Contracting Officer’s approval. 
    • (iii) The cost of the guarantee period service shall be prorated on an annual basis and paid in equal monthly payments by VA during the period of guarantee.  In the event the installer does not perform satisfactorily during this period, all payments may be withheld and the Contracting Officer shall inform the Contractor of the unsatisfactory performance, allowing the Contractor 10 days to correct and comply with the contract.  The guarantee period service is subject to those provisions as set forth in the Payments and Default clauses. 

852.232-72  Electronic Submission of Payment Requests. 

As prescribed in 832.7001-2, insert the following clause: 

ELECTRONIC SUBMISSION OF PAYMENT REQUESTS (OCT 2026)(DEVIATION) 

• (a)  Definitions.  As used in this clause- 
  • (1)  Contract financing payment has the meaning given in FAR 32.001. 
  • (2)  Designated agency office means the office designated by the purchase order, agreement, or contract to first receive and review invoices.  This office can be contractually designated as the receiving entity.  This office may be different from the office issuing the payment; 
  • (3)  Electronic form means an automated system transmitting information electronically according to the accepted electronic data transmission methods and formats identified in paragraph (c) of this clause.  Facsimile, e-mail, and scanned documents are not acceptable electronic forms for submission of payment requests; 
  • (4)  Invoice payment has the meaning given in FAR 32.001; and 
  • (5)  Payment request means any request for contract financing payment or invoice payment submitted by the Contractor under this contract. 
• (b)  Electronic payment requests.  Except as provided in paragraph (e) of this clause, the Contractor shall submit payment requests in electronic form.  Purchases paid with a Government-wide commercial purchase card are considered to be an electronic transaction for purposes of this rule, and therefore no additional electronic invoice submission is required. 
• (c)  Data transmission.  A Contractor must ensure that the data transmission method and format are through one of the following: 
  • (1)  VA’s Electronic Invoice Presentment and Payment System at the current website address provided in the contract. 
  • (2)  Any system that conforms to the X12 electronic data interchange (EDI) formats established by the Accredited Standards Center (ASC) and chartered by the American National Standards Institute (ANSI) 
• (d)  Invoice requirements.  Invoices shall comply with FAR 32.905.
• (e)  Exceptions.  If, based on one of the circumstances below, the Contracting Officer directs that payment requests be made by mail, the Contractor shall submit payment requests by mail through the United States Postal Service to the designated agency office.  Submission of payment requests by mail may be required for— 
  • (1)  Awards made to foreign vendors for work performed outside the United States; 
  • (2)  Classified contracts or purchases when electronic submission and processing of payment requests could compromise the safeguarding of classified or privacy information; 
  • (3)  Contracts awarded by contracting officers in the conduct of emergency operations, such as responses to national emergencies; 
  • (4)  Solicitations or contracts in which the designated agency office is a VA entity other than the VA Financial Services Center in Austin, Texas; or 
  • (5)  Solicitations or contracts in which the VA designated agency office does not have electronic invoicing capability as described above. 

(End of clause) 

852.232-73  Limitation of Government’s Obligation. 

As prescribed in 832.7105, insert the following clause in all applicable solicitations and contracts: 

LIMITATION OF GOVERNMENT’S OBLIGATION (OCT 2026)(DEVIATION) 

• (a) Operative status. This clause is incorporated into this contract as a standard term. It is not operative and has no legal effect unless and until the Department of Veterans Affairs is operating under a continuing resolution (CR). Upon enactment of a CR applicable to VA appropriations, this clause becomes operative by its own terms without further contract modification. Upon enactment of regular appropriations applicable to this contract, this clause returns to dormancy. If a subsequent CR is enacted, this clause reactivates automatically on the same terms. 
• (b) Funded amount under a CR.  When this clause is operative, the Government’s obligation under the contract is limited to the CR ceiling.  The contracting officer must allot funds to the contract by modification.  Funds allotted to the contract by modification are available for payment and obligated as of the effective date of the modification.  The Government may allot additional funds by modification as they become available. 
• (c) Contractor performance limit. For the work funded under paragraph (b) of this clause, the Contractor agrees to perform up to the point at which the total amount payable by the Government, including any invoice payments to which the Contractor is entitled and reimbursement of authorized termination costs in the event of termination of the work funded under this clause for the Government’s convenience, does not exceed the total amount currently obligated under the contract.  The Contractor is not authorized to continue that work beyond that point. The Government will not be obligated in any event to reimburse the Contractor in excess of the amount allotted to this contract, regardless of anything to the contrary in any other clause, including but not limited to the clause entitled “Termination for Convenience of the Government” or the termination for convenience provision of the clause at 52.212-4, Contract Terms and Conditions, Commercial Products and Commercial Services. 
• (d) Government right to allot additional funds. The Government may at any time prior to termination allot additional funds for performance under this contract.
• (e) Termination rights preserved. The termination provisions of this clause do not limit the rights of the Government under any clause entitled “Default” or “Termination for Cause.” The provisions of this clause are limited to the work and allotment of funds under paragraph (b) of this clause.  When this contract is fully funded under regular appropriations, this clause returns to dormancy as provided in paragraph (a). 
• (f) Termination for convenience rights preserved. Nothing in this clause affects the right of the Government to terminate this contract pursuant to the termination for convenience terms set forth in this contract. 
• (g) voluntary services. Nothing in this clause must be construed as authorization for the acceptance of voluntary services whose acceptance is otherwise prohibited under 31 U.S.C. 1342. 
• (h) Schedule for additional funds. The parties contemplate that the Government will allot funds to this contract from time to time as the need arises and as funds become available under a CR. There is no fixed schedule for providing additional funds. 

(End of clause) 

852.233-70 Agency Protests. 

As prescribed in 833.106-70, insert the following provision: 

AGENCY PROTESTS (OCT 2026)(DEVIATION) 

• (a) Protests to the agency must meet the content requirements in FAR 33.104-4(a)(3). 
• (b) The protester may file an agency protest with the Contracting Officer identified in the solicitation. 
• (c) As an alternative, the protester may file an agency protest with the agency’s independent review official as either an initial protest or as an appeal of a protest decision by the Contracting Officer. Protests and appeals to the independent review official may be filed electronically at EDProtests@va.gov. 
• (d) A redacted source selection decision (SSD) of the protested procurement will be provided if requested in an agency protest filed with the independent review official. A redacted SSD will not be provided if an SSD was not required by FAR 15.205 or if the protest will be dismissed. 

(End of provision) 

852.235-76 Research and Development.  

As prescribed at 835.101-70, insert the following clause: 

RESEARCH AND DEVELOPMENT (OCT 2026)(DEVIATION) 

• (a) Definitions. As used in this clause –  
• Human Subject means a living individual from whom data is obtained via intervention, interaction, or identifiable private information. 
• Research means a systematic investigation, including research development, testing and evaluation, designed to develop or contribute to generalized knowledge. 
• Research impropriety refers to noncompliance with the laws, regulations, and policies regarding human subject protections, laboratory animal welfare, research safety, research laboratory security, research information security, and research misconduct.  It does not encompass improper procedures or conduct in areas outside of the mandate of the Office of Research Oversight (ORO) (e.g., waste, fraud, abuse, or fiscal mismanagement). 
• Research misconduct means fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results.  
• (b) Research Misconduct. 
  • (1) The Contractor must— 
    • (i) Maintain the integrity of research, including the prevention, detection, and remediation of research misconduct, and ensuring compliance with the Federal Policy for the Protection of Human Subjects, Animal Welfare Regulations, and other applicable VA regulations.  
    • (ii) Notify the Contracting Officer within 7 business days of allegations of research misconduct, conducting inquiries, and investigations as necessary. This notification should include; 
      • (A) All details associated with the initial inquiry and plan of action; 
      • (B) Provide a full investigative report that establishes a full   factual record, leading to either a determination of research misconduct with suitable remedies or a determination of no research misconduct. 
      • (C) Evidence that research misconduct findings are adjudicated by an uninvolved and independent official, with a review of the investigation record and recommendations for corrective actions. Upon completing the investigation, forward the entire evidentiary record, the investigative report, recommendations, adjudication findings, proposed corrective actions, and the subject’s written response (if any) to the Contracting Officer for review and determination of the next steps. 
    • (iii) Implement safeguards to protect informants, witnesses, and respondents of research misconduct allegations. These include, at a minimum, ensuring individuals report allegations without fear of retribution by protecting against retaliation and maintaining fair and objective procedures; protecting the rights of respondents by providing timely written notice of allegations, access to evidence, and opportunities to respond; and maintaining diligence in protecting positions and reputations. 
    • (iv) Acknowledge Government support in published materials and submit scientific and technical reports to the National Technical Information Service. Non-compliance may result in suspension of work and payments or termination of the contract. 
    • (v) Be advised that VA reserves the right to conduct its own inquiries and investigations in any potential instance of research misconduct. 
• (c) Protection of Human Subjects. 
  • (1) The contractor must— 
    • (i) Ensure compliance with the prohibition against human subject’s research under this contract unless expressly authorized in writing by the Contracting Officer. Approved details will be incorporated by reference into this contract. 
    • (ii) Adhere to the Federal Policy for the Protection of Human Subjects, adopted by VA (38 CFR Part 16). 
    • (iii) Submit the following information, at a minimum, to the Contracting Officer in instances when the research of human subjects is proposed; 
      • (A) Proof of a relationship with a U.S.-based, community-appropriate Institutional Review Board (IRB). 
      • (B) Verification of the IRB’s valid registration with the Office for Human Research Protections (OHRP). 
      • (C) Verification of the Contractor’s valid Federal-wide Assurance (FWA) issued by OHRP. 
    • (iv) Submit the following documentation to the Contracting Officer, before starting any research involving human subjects, then for review and approval: 
      • (A) Copies of the IRB-approved research protocol, questionnaires, surveys, advertisements, and informed consent forms; 
      • (B) Documentation of IRB approval for these materials; 
      • (C) Proof of continuing IRB approval at least annually; 
      • (D) Documentation supporting an exemption from the Common Rule, if applicable (except for activities under 45 CFR part 46 subpart C). 
    • (v) The Contracting Officer must ensure that if the Contractor modifies any IRB-approved research materials, the modified materials and IRB approval documentation are submitted to the Contracting Officer for review. The Contractor must receive written approval from the Contracting Officer before implementing any modifications. 
• (d) Animal Welfare. 
  • (1) The Contractor must use the VA Office of Research Oversight (ORO) Laboratory Animal Welfare Checklist and comply with USDA Animal Welfare regulations. They must develop and submit a written plan for veterinary care, including visit frequency and after-hours coverage, to the Contracting Officer. 
• (e) Facility. 
  • (1) The Contractor must— 
    • (i) Ensure that the facilities specified in the contract are essential for the work.  
    • (ii) Notify the Contracting Officer in writing and provide justification, including proposed substitutions, before removing, replacing, or diverting any facilities. No changes can be made without the Contracting Officer’s written consent. 
• (f) Scientific and Technical Reports. 
  • (1) The Contractor must submit an electronic copy of the approved scientific technical reports, not a summary, delivered under this contract to the National Technical Informative Service as delineated at FAR 35.301. 
• (g) Acknowledgement of Support and Disclaimer. 
  • (1) The Contractor must acknowledge Government support in any publication based on this contract, stating: “This material is based upon work supported by [name of contracting agency] under this VA contract.” Additionally, all materials (except scientific articles or papers) must include the disclaimer: “Any opinions, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the VA.” 

(End of clause) 

852.236-72 Performance of Work by the Contractor. 

As prescribed in 836.101-770, insert the following clause:  

PERFORMANCE OF WORK BY THE CONTRACTOR (OCT 2026)(DEVIATION) 

• (a) The Contractor must submit, simultaneously with the schedule required by the specifications of the contract, a statement designating the portions of contract work to be performed with the Contractor’s own forces.  The approved schedule must be used in determining the value of a work activity/event, or portions thereof, of the work for the purpose of this article. 
• (b) Changes to established activity/event identifiers or responsibility codes for Contractor activities must not be made without approval from the Contracting Officer. 

(End of clause) 

Alternate I (OCT 2026)(DEVIATION) 

For requirements which include a Network Analysis Schedule, substitute the following paragraph (a) for paragraph (a) of the basic clause above: 

• (a) The Contractor must submit, simultaneously with the cost per activity of the construction schedule required by the specifications of the contract, a responsibility code for all activities of the network for which the Contractor’s forces must perform the work. The cost of these activities must be used in determining the portions of the total contract work to be executed by the Contractor’s forces for the purpose of this article. 

852.236-80 Subcontracts and Work Coordination. 

As prescribed in 836.101-771, insert the following clause: 

SUBCONTRACTS AND WORK COORDINATION (OCT 2026)(DEVIATION) 

• (a) Nothing contained in this contract is to be construed as creating any contractual relationship between any subcontractor and the Government.  Divisions or sections of specifications are not intended to control the Contractor in dividing work among subcontractors, or to limit work performed by any trade.
• (b) The Contractor is responsible to the Government for acts and omissions of his/her own employees, and of the subcontractors and their employees.  The Contractor is also responsible for coordination of the work of the trades, subcontractors, and material suppliers. 
• (c) The Government or its representatives must not undertake to settle any differences between the Contractor and subcontractors or between subcontractors. 
• (d) The Government reserves the right to refuse to permit employment on the work, or require dismissal from the work, of any subcontractor or subcontractor employee who, by reason of previous unsatisfactory work on Department of Veterans Affairs projects or for any other reason, is considered by the Contracting Officer to be incompetent, careless, or otherwise objectionable. 

(End of clause) 

Alternate I (OCT 2026)(DEVIATION) 

For requirements that include new construction work with complex mechanical-electrical work substitute the following paragraph (b) for paragraph (b) of the basic clause above: 

• (b) The Contractor is responsible to the Government for acts and omissions of his/her own employees, and subcontractors and their employees.  The Contractor is also responsible for coordination of the work of the trades, subcontractors, and material suppliers.   
  • (1) The Contractor must, in advance of the work, prepare coordination drawings showing the location of openings through slabs, the pipe sleeves and hanger inserts, as well as the location and elevation of utility lines, including, but not limited to, conveyor systems, pneumatic tubes, ducts, and conduits and pipes 2 inches and larger in diameter.   
    • (i) These drawings, including plans, elevations, and sections as appropriate, must clearly show the manner in which the utilities fit into the available space and relate to each other and to existing building elements.  
    • (ii) Drawings must be of appropriate scale to satisfy the previously stated purposes, but not smaller than 3/8-inch scale.   
    • (iii) Drawings may be composite (with distinctive colors for the various trades) or may be separate but fully coordinated drawings (such as sepias or photographic paper reproducible) of the same scale.  
    • (iv) Separate drawings must depict identical building areas or sections and must be capable of being overlaid in any combination.   
    • (v) The submitted drawings for a given area of the project must show the work of all trades that must be involved in that particular area.   
  • (2) Six complete composite drawings or six complete sets of separate reproducible drawings must be received by the Government not less than 20 days prior to the scheduled start of the work in the area illustrated by the drawings, for the purpose of showing the Contractor’s planned methods of installation.
  • (3 The objectives of such drawings are to promote carefully planned work sequence and proper trade coordination, in order to assure the expeditious solutions of problems and the installation of lines and equipment as contemplated by the contract documents while avoiding or minimizing additional costs to the Contractor and to the Government.   
  • (4) If the Contractor discovers a conflict in the location or elevation of any utilities—either with each other, with structural elements, or with other construction items—the Contractor must notify the Contracting Officer within one business day.  
  • (5) The Contractor must also provide a proposed solution to resolve the issue or request further instructions if adjustments beyond standard trade coordination are required.  
  • (6) Utilities installation work must not proceed in any area prior to the submission and completion of the Government review of the coordinated drawings for that area, nor in any area in which conflicts are disclosed by the coordination drawings, until the conflicts have been corrected to the satisfaction of the Contracting Officer.   
  • (7) The Contractor is responsible for submitting all required drawings promptly, in accordance with the project requirements, to ensure completion of the work within the contract’s specified time frame. 

852.236-93 Site Visit (Construction) 

As prescribed in 836.101-70(a) Site Visit (Construction), insert a provision substantially the same as the following: 

SITE VISIT (CONSTRUCTION) (OCT 2026)(DEVIATION) 

• (a) The clauses at FAR parts 52.236-2, Differing Site Conditions, and 52.236-3, Site Investigations and Conditions Affecting the Work, must be included in any contract awarded as a result of this solicitation.  
• (b) Accordingly, offerors or quoters are urged and expected to inspect the site where the work must be performed. Contact the Contracting Officer or the referenced point of contact in the solicitation to obtain further information regarding a site visit.  

(End of provision) 

852.236-94 Preparation of Proposals (Construction) 

As prescribed in 836.101-70(b) Preparation of Proposals (Construction), insert a provision substantially the same as the following: 

PREPARATION OF PROPOSALS (CONSTRUCTION) (OCT 2026)(DEVIATION) 

• (a) Proposals must be (1) submitted on the forms furnished by the Government or on copies of those forms; and (2) manually signed. The person signing a proposal must initial each erasure or change appearing on any proposal form. 
• (b) The proposal form may require offerors to submit proposed prices for one or more items on various bases, including- 
  • (1) Lump sum price; 
  • (2) Alternate prices; 
  • (3) Units of construction; or 
  • (4) Any other construction related format. 
• (c) If the solicitation requires submission of a proposal on all items, failure to do so may result in the proposal being rejected without further consideration. If a proposal on all items is not required, offerors should insert the words “no proposal” in the space provided for any item on which no price is submitted. 
• (d) Alternate proposals must not be considered unless this solicitation authorizes their submission. 

(End of provision)

852.236-95 Architectural and Engineering Conflicts of Interest 

As prescribed in 836.101-772 A/E Conflicts of Interest, insert a clause substantially the same as the following: 

ARCHITECTURAL AND ENGINEERING CONFLICTS OF INTEREST (OCT 2026)(DEVIATION) 

• (a) No contract for the construction of a project must be awarded to the firm that designed the project or its subsidiaries or affiliates, except with the approval of the head of the agency or authorized representative.  
• (b) The A/E and its subcontractors, subsidiaries, affiliates, employees, consultants and/or all other related entities are prohibited from submitting proposals or bids on the construction effort anticipated by this contract. This prohibition applies to all subcontracts, purchase orders, consulting agreements, and/or joint ventures for services related to the anticipated construction project. 

(End of clause) 

852.237-70 Indemnification and Medical Liability Insurance. 

As prescribed in 837.601-3(a), insert the following clause: 

INDEMNIFICATION AND MEDICAL LIABILITY INSURANCE (OCT 2026)(DEVIATION) 

• (a) It is expressly agreed and understood that this is a non-personal services contract, and does not meet the characteristics defined in Federal Acquisition Regulation (FAR) 37.201-2, under which the professional services rendered by the Contractor or its health-care providers are rendered in its capacity as an independent contractor. The Government may evaluate the quality of professional and administrative services provided but retains no control over professional aspects of the services rendered including, by example, the Contractor’s or its health-care providers’ professional medical judgment, diagnosis, or specific medical treatments. The Contractor and its healthcare providers must be liable for their liability-producing acts or omissions. The Contractor must maintain or require all health-care providers performing under this contract to maintain, during the term of this contract, professional liability insurance issued by a responsible insurance carrier of not less than the following amount(s) per specialty per occurrence: [Contracting Officer’s Note: Insert the dollar amount value(s) of standard coverage(s) prevailing within the local community as to the specific medical specialty, or specialties, concerned, or such higher amount as the Contracting Officer deems necessary to protect the Government’s interests.] However, if the Contractor is an entity or a subdivision of a State that either provides for self-insurance or limits the liability or the amount of insurance purchased by State entities, then the insurance requirement of this contract must be fulfilled by incorporating the provisions of the applicable State law. 
• (b) An apparently successful offeror, upon request of the Contracting Officer, must, prior to contract award, furnish evidence of the insurability of the offeror and/or of all health-care providers who will perform under this contract. The submission must provide evidence of insurability concerning the medical liability insurance required by paragraph (a) of this clause or the provisions of State law as to self-insurance, or limitations on liability or insurance. 
• (c) The Contractor must, prior to commencement of services under the contract, provide to the Contracting Officer Certificates of Insurance or insurance policies evidencing the required insurance coverage and an endorsement stating that any cancellation or material change adversely affecting the Government’s interest must not be effective until 30 days after the insurer or the Contractor gives written notice to the Contracting Officer. Certificates or policies must be provided for the Contractor and/or each health-care provider who will perform under this contract. 
• (d) The Contractor must notify the Contracting Officer within 5 days of becoming aware of a change in insurance providers during the performance period of this contract for all health-care providers performing under this contract. The notification must provide evidence that the Contractor and/or health-care providers will meet all the requirements of this clause, including those concerning liability insurance and endorsements. These requirements may be met either under the new policy, or a combination of old and new policies, if applicable. 
• (e) The Contractor must insert the substance of this clause, including this paragraph (e), in all subcontracts for health-care services under this contract. The Contractor must be responsible for compliance by any subcontractor or lower-tier subcontractor with the provisions set forth in paragraph (a) of this clause. At least 5 days before the commencement of work by any subcontractor, the Contractor must furnish to the Contracting Officer evidence of such insurance. 

(End of clause) 

852.237-71 Nonsmoking Policy for Children’s Services. 

As prescribed in 837.601-3(b), insert the following clause: 

NONSMOKING POLICY FOR CHILDREN’S SERVICES (OCT 2019) 

• (a) Smoking in facilities where certain federally funded children’s services are provided must be prohibited. The Pro-Children Act of 2001 (20 U.S.C. 7181-7183) prohibits smoking within any indoor facility (or portion thereof), whether owned, leased, or contracted for, that is used for the routine or regular provision of health or day care services that are provided to children under the age of 18. The statutory prohibition also applies to indoor facilities that are constructed, operated, or maintained with Federal funds. 
• (b) By acceptance of this contract or order, the Contractor agrees to comply with the requirements of the Act. The Act also applies to all subcontracts awarded under this contract for the specified children’s services. Accordingly, the Contractor must ensure that each of its employees, and any subcontractor staff, is made aware of, understands, and complies with the provisions of the Act. Failure to comply with the Act may result in the imposition of a civil monetary penalty in an amount not to exceed $1,000 for each violation and/or the imposition of an administrative compliance order on the responsible entity. Each day a violation continues constitutes a separate violation. 

(End of clause) 

852.237-72 Crime Control Act – Reporting of Child Abuse. 

As prescribed in 837.601-3(c), insert the following clause: 

CRIME CONTROL ACT – REPORTING OF CHILD ABUSE (OCT 2019) 

• (a) Public Law 101-647, also known as the Crime Control Act of 1990 (Act), imposes responsibilities on certain individuals who, while engaged in a professional capacity or activity, as defined in the Act, on Federal land or in a federally-operated (or contracted) facility, learn of facts that give the individual reason to suspect that a child has suffered an incident of child abuse. 
• (b) The Contractor must comply with the requirements of the Act. The Act also applies to all applicable subcontracts awarded under this contract. Accordingly, the Contractor must ensure that each of its employees, and any subcontractor staff, is made aware of, understands, and complies with the provisions of the Act. 

(End of clause) 

852.237-73 Crime Control Act – Requirement for Background Checks. 

As prescribed in 837.601-3(d), insert the following clause: 

CRIME CONTROL ACT – REQUIREMENT FOR BACKGROUND CHECKS (OCT 2019) 

• (a) Public Law 101-647, also known as the Crime Control Act of 1990 (Act), requires that all individuals involved with the provision of child care services, as defined in the Act, to children under the age of 18 undergo a criminal background check. 
• (b) The Contracting Officer will provide the necessary information to the Contractor regarding the process for obtaining the background check. The Contractor may hire a staff person provisionally prior to the completion of a background check, if at all times prior to the receipt of the background check during which children are in the care of the newly-hired person, the person is within the sight and under the supervision of a previously investigated staff person. 
• (c) The Contractor must comply with the requirements of the Act. The Act also applies to all applicable subcontracts awarded under the contract. Accordingly, the Contractor must ensure that each of its employees, and any subcontractor staff, is made aware of, understands, and complies with the provisions of the Act. 

(End of clause) 

852.237-74 Non-discrimination in Service Delivery. 

As prescribed in 837.802-5(a), the Contracting Officer must insert the following clause in solicitations and contracts: 

NON-DISCRIMINATION IN SERVICE DELIVERY (OCT 2019) 

It is the policy of the Department of Veterans Affairs that no person otherwise eligible will be excluded from participation in, denied the benefits of, or subjected to discrimination in the administration of VA programs and services based on non-merit factors such as race, color, national origin, religion, sex, gender identity, sexual orientation, or disability (physical or mental). By acceptance of this contract, the Contractor agrees to comply with this policy in supporting the program and in performing the services called for under this contract. The Contractor must include this clause in all subcontracts awarded under this contract for supporting or performing the specified program and services. Accordingly, the Contractor must ensure that each of its employees, and any subcontractor staff, is made aware of, understands, and complies with this policy. 

(End of clause) 

852.237-75 Key Personnel. 

As prescribed in 837.802-5(b), insert the following clause: 

KEY PERSONNEL (OCT 2019) 

The key personnel specified in this contract are considered to be essential to work performance. At least 30 days prior to the Contractor voluntarily diverting any of the specified individuals to other programs or contracts the Contractor must notify the Contracting Officer and must submit a justification for the diversion or replacement and a request to replace the individual. The request must identify the proposed replacement and provide an explanation of how the replacement’s skills, experience, and credentials meet or exceed the requirements of the contract. If the employee of the Contractor is terminated for cause or separates from the contractor voluntarily with less than 30 days notice, the Contractor must provide the maximum notice practicable under the circumstances. The Contractor must not divert, replace, or announce any such change to key personnel without the written consent of the Contracting Officer. The contract will be modified to add or delete key personnel as necessary to reflect the agreement of the parties. 

(End of clause) 

852.237-76 Award to Single Offeror. 

As prescribed in 837.7001(a)(1), insert the following provision: 

AWARD TO SINGLE OFFEROR (OCT 2019) 

• (a) Award must be made to a single offeror. 
• (b) Offerors must include unit prices for each item. Failure to include unit prices for each item will be cause for rejection of the entire offer. 
• (c) The Government will evaluate offers on the basis of the estimated quantities shown. 
• (d) Award will be made to that responsive, responsible offeror whose total aggregate offer is the lowest price to the Government. 

(End of provision) 

Alternate I (OCT 2019). As prescribed in 837.7001(a)(2), insert the following paragraph (d) in lieu of paragraph (d) of the basic provision: 

• (d) Award will be made to that responsive, responsible offeror whose total aggregate offer is in the best interest of the Government. 

852.237-77 Area of Performance. 

As prescribed in 837.7001(b)(1), insert the following clause: 

AREA OF PERFORMANCE (OCT 2019) 

• (a) The area of performance is as specified in the contract. 
• (b) The Contractor must take possession of the remains at the place where they are located, transport them to the Contractor’s place of preparation, and later transport them to a place designated by the Contracting Officer. 
• (c) The Contractor will not be reimbursed for transportation when both the place where the remains were located and the delivery point are within the area of performance. 
• (d) If remains are located outside the area of performance, the Contracting Officer may place an order with the Contractor under this contract or may obtain the services elsewhere. If the Contracting Officer requires the Contractor to transport the remains into the area of performance, the Contractor must be paid the amount per mile in the schedule for the number of miles required to transport the remains by a reasonable route from the point where located to the boundary of the area of performance. 
• (e) The Contracting Officer may require the Contractor to deliver remains to any point within 100 miles of the area of performance. In this case, the Contractor must be paid the amount per mile in the schedule for the number of miles required to transport the remains by a reasonable route from the boundary of the area of performance to the delivery point. 

(End of clause) 

852.237-78 Performance and Delivery. 

As prescribed in 837.7001(b)(2), insert the following clause: 

PERFORMANCE AND DELIVERY (OCT 2019) 

• (a) The Contractor must furnish the material ordered and perform the services specified as promptly as possible, but not later than 36 hours after receiving notification to remove the remains, excluding the time necessary for the Government to inspect and check results of preparation. 
• (b) The Government may, at no additional charge, require the Contractor to hold the remains for an additional period not to exceed 72 hours from the time the remains are casketed and final inspection is completed. 

(End of clause) 

852.237-79 Subcontracting. 

As prescribed in 837.7001(b)(3), insert the following clause: 

SUBCONTRACTING (OCT 2019) 

The Contractor must not subcontract any work under this contract without the Contracting Officer’s written approval. This clause does not apply to contracts of employment between the Contractor and its personnel.

(End of clause) 

852.237-80 Health Department and Transport Permits. 

As prescribed in 837.7001(b)(4), insert the following clause: 

HEALTH DEPARTMENT AND TRANSPORT PERMITS (OCT 2019) 

The Contractor must meet all State and local licensing requirements and obtain and furnish all necessary health department and shipping permits at no additional cost to the Government. The Contractor must ensure that all necessary health department permits are in order for disposition of the remains. 

(End of clause) 

852.239-75 Information and Communication Technology Accessibility Notice. 

As prescribed in 839.104-370(a)(1) insert the following provision:  

INFORMATION AND COMMUNICATION TECHNOLOGY ACCESSIBILITY NOTICE (OCT 2026)(DEVIATION) 

• (a) All offerors responding to this solicitation must comply with the appropriate VA Section 508 accessibility standards and submit applicable checklists, in accordance with the checklist completion instructions. See  https://digital.va.gov/section-508/checklists/.  
• (b) All offerors must identify exceptions to Section 508 requirements during the solicitation phase. Offerors who fail to submit a Section 508 checklist or exception to Section 508 requirements may be deemed non-responsive. If an offeror claims its supplies or services meet applicable Section 508 accessibility standards, and it is later determined by the Government that supplies or services delivered do not meet the described accessibility standards, remediation of the supplies or services to the appropriate level of the Section 508 accessibility standard will be the responsibility of the Contractor at its expense.   

(End of provision) 

852.239-76 Information and Communication Technology Accessibility. 

As prescribed in 839.104-370(a)(2), insert the following clause:  

INFORMATION AND COMMUNICATION TECHNOLOGY ACCESSIBILITY (OCT 2026)(DEVIATION) 

• (a) The Contractor must ensure that all deliverables comply with Section 508 of the Rehabilitation Act (29 U.S.C. § 794d), as amended, and all applicable implementing regulations, in consultation with VA’s Office of General Counsel. The Contractor must deliver all ICT products in a manner that ensures accessibility for individuals with disabilities, meeting the technical and functional performance criteria as established in 36 CFR § 1194.   
• (b) Contractor agrees to promptly respond to and resolve any complaints regarding accessibility of its products or services. Should the Contractor fail to comply with these requirements, the government reserves the right to take corrective action, including but not limited to, requiring the Contractor to make the necessary modifications to ensure compliance, remediation of supplies or services to ensure compliance at the Contractors expense.   
• (c) Modifications or additions of ICT products or services to this contract, any order, Indefinite-Delivery contract, Blanket Purchase Agreement or Basic Ordering Agreement, which adds new ICT supplies or revises the type of, or specifications for, supplies or services, will require the Contractor to comply with the appropriate Section 508 accessibility standards and submit applicable checklists.
• See https://digital.va.gov/section-508/checklists. The Contractor must ensure that their submissions comply with the technical and functional performance criteria as established in 36 CFR1194. 

  (End of clause) 

852.240-70 Compliance with Public Law 119-37, Section 258. 

As prescribed in 840.202-70(a), insert the following clause: 

COMPLIANCE WITH P.L.119-37, § 258 (OCT 2026)(DEVIATION) 

• (a) Definitions. As used in this clause –  
• Covered Information Technology means the following equipment used in an office environment: computers, printers, or interoperable videoconferencing equipment used in or by the Department of Veterans Affairs directly. ‘‘Covered information technology equipment’’ does not refer to services that use such equipment, including cloud services. 
• (b) The contractor must adhere to the following requirements set forth in Public Law 119 37, Section 258 regarding the procurement of Covered Information Technology Equipment: 
  • 1. A manufacturer, bidder, or offeror, or a subsidiary or parent entity of a manufacturer, bidder, or offeror of procured or purchased covered information technology equipment cannot be an entity or parent company of an entity listed on any of the following: 
    • (i) Department of Defense’s Chinese Military Company List; 
    • (ii) Department of the Treasury’s Non-SDN Chinese Military Industrial Complex Companies List; 
    • (iii) Department of Commerce’s Denied Persons List, Entity List, or Military End User List, if the entity is— 
      • (A) An agency or instrumentality of the People’s Republic of China; 
      • (B) An entity headquartered in the People’s Republic of China; or 
      • (C) directly or indirectly owned or controlled by an agency, instrumentality, or entity described in subparagraph (A) or (B); or 
    • (iv) Department of Homeland Security’s Uyghur Forced Labor Prevention Act Entity List. 
  • 2. The contractor must include the terms and conditions of this clause in every subcontract or purchase order so that these disclosures will be binding on every subcontractor, third party, or vendor. 
  • 3. The following certification must be completed, signed, and returned with the contractor/offeror’s bid, quotation, or proposal. The Government will not consider offers for award from contractors/offerors that do not complete the certification, and any incomplete responses may be deemed ineligible for evaluation and award.  

Certification: 

I certify that [insert name of offeror]:  

[  ] Is in compliance with the VAAR clause 852.240-70, Compliance with P.L.119-37 § 258 (OCT 2026)(DEVIATION).  

I further certify that if awarded this contract, [insert name of offeror] will monitor the entity lists within this clause to ensure continued compliance for [insert name of offeror] and all of its subcontractors and will notify the Contracting Officer immediately with any change that may result in noncompliance. I further certify that I am authorized to execute this certification on behalf of [insert name of offeror]. 

Printed Name: ________________________________________ 

Printed Title: _________________________________________ 

Signature: ___________________________________________________ 

Date: _____________________ 

Company Name: ______________________________________ 

(End of clause) 

852.240-71 Security Requirements for Information Technology Resources. 

As prescribed in 840.303-70(a), insert the following clause: 

SECURITY REQUIREMENTS FOR INFORMATION TECHNOLOGY RESOURCES (FEB 2023) 

• (a) Definitions. As used in this clause – 
• Information technology has the same meaning in FAR 2.101 and also means Information and Communication Technology (ICT). 
• Information system security plan means a formal document that provides an overview of the security requirements for an information system and describes the security controls in place or planned for meeting those requirements. 
• (b) Responsibilities. The Contractor must be responsible for information system security for all systems connected to a Department of Veterans Affairs (VA) network or operated by the Contractor for VA, regardless of location. This clause is applicable to all or any part of the contract that includes information technology resources or services in which the Contractor has physical or other system access to VA information that directly supports the mission of VA. Examples of tasks that require security provisions include – 
  • (1) Hosting of VA e-Government sites or other information technology operations; 
  • (2) Acquisition, transmission, or analysis of data owned by VA with significant replacement cost should the contractor’s copy be corrupted; and 
  • (3) Access to VA general support systems/major applications at a level beyond that granted the general public, e.g., bypassing a firewall. 
• (c) Information system security plan. The Contractor must develop, provide, implement, and maintain an Information System Security Plan. VA information systems must have an information system security plan that provides an overview of the security requirements for the system and describes the security controls in place or the plan for meeting those requirements. This plan must describe the processes and procedures that the Contractor will follow to ensure appropriate security of information system resources developed, processed, or used under this contract. The information system security plan should include implementation status, responsible entities, resources, and estimated completion dates. Information system security plans may also include, but are not limited to, a compiled list of system characteristics, and key security-related documents such as a risk assessment, PIA, system interconnection agreements, contingency plan, security configurations, configuration management plan, and incident response plan. The plan must address the specific contract requirements regarding information systems related support or services included in the contract, to include the performance work statement (PWS) or statement of work (SOW). The Contractor’s Information System Security Plan must comply with applicable Federal Laws that include, but are not limited to, 40 U.S.C. 11331, the Federal Information Security Modernization Act (FISMA) of 2014 and the E-Government Act of 2002. The plan must meet information system security requirements in accordance with Federal and VA policies and procedures, and as amended during the term of this contract, and include, but are not limited to the following. 
  • (1) OMB Circular A-130, Managing Information as a Strategic Resource; 
  • (2) National Institute of Standards and Technology (NIST) Guidelines; and 
  • (3) VA Directive 6500, VA Cybersecurity Program, and the directives and handbooks in the VA 6500 series related to VA information (including VA sensitive information and sensitive personal information and information systems security and privacy), as well as those set forth in the contract specifications, statement of work, or performance work statement. These include, but are not limited to, VA Handbook 6500.6, Contract Security; and VA Directive and Handbook 0710, Personnel Security and Suitability Program, which establishes VA’s procedures, responsibilities, and processes for complying with current Federal law, Executive Orders, policies, regulations, standards and guidance for protecting VA information, information systems (see 802.101, Definitions) security and privacy, and adhering to personnel security requirements when accessing VA information or information systems. 
• (d) Submittal of plan. Within 90 days after contract award, the Contractor must submit the Information System Security Plan to the Contracting Officer for review and approval. 
• (e) Security accreditation. As required by current VA policy, the Contractor must submit written proof of information system security accreditation to the Contracting Officer for non-VA owned systems. Such written proof may be furnished either by the Contractor or by a third party. Accreditation must be in accordance with VA policy available from the Contracting Officer upon request. The Contractor must submit for acceptance by the Contracting Officer along with this accreditation a final information system security plan, such as a risk assessment, security test and evaluation, and disaster recovery plan/continuity of operations plan. The accreditation and the final information system security plan and the accompanying documents, such as a risk assessment, security test and evaluation, and disaster recovery/continuity of operations plan. 
• (f) Annual validation. On an annual basis, the Contractor must verify in writing to the Contracting Officer that the Information System Security Plan remains valid. 
• (g) Banners. The Contractor must ensure that the official VA banners are displayed on all VA systems (both public and private) operated by the Contractor that contain Privacy Act information before allowing anyone access to the system. The Office of Information Technology will make official VA banners available to the Contractor. 
• (h) Screening and access. The Contractor must screen all personnel requiring privileged access or limited privileged access to systems operated by the Contractor for VA or interconnected to a VA network in accordance with VA Directives and Handbooks referenced in paragraph (c) of this clause. 
• (i) Training. The Contractor must ensure that its employees performing services under this contract complete VA security awareness training on an annual basis. This includes signing an acknowledgment that they have read, understand, and agree to abide by the VA Information Security Rules of Behavior (VA National Rules of Behavior) as required by 38 U.S.C. 5723; FAR 39.105, Privacy; clause 852.204-71, Information and Information Systems Security, and this clause on an annual basis. 
• (j) Government access. The Contractor must provide the Government access to the Contractor’s and subcontractors’ facilities, installations, operations, documentation, databases, and personnel used in performance of the contract. The Contractor must provide access to enable a program of information system inspection (to include vulnerability testing), investigation and audit (to safeguard against threats and hazards to the integrity, availability and confidentiality of VA data or to the function of information systems operated on behalf of VA), and to preserve evidence of computer crime. 
• (k) Notification of termination of employees. The Contractor must immediately notify the Contracting Officer when an employee who has access to VA information systems or data terminates employment. 
• (l) Subcontractor flow down requirement. The Contractor must incorporate and flow down the substance of this clause to all subcontracts that meet the conditions in paragraph (a) of this clause. 

(End of clause) 

852.240-72 Information System Security Plan and Accreditation. 

As prescribed in 840.303-70(a), insert the following provision: 

INFORMATION SYSTEM SECURITY PLAN AND ACCREDITATION (FEB 2023) 

All offers submitted in response to this solicitation or request for quotation must address the approach for completing the security plan and accreditation requirements in clause 852.240-71, Security Requirements for Information Technology Resources. 

(End of provision) 

852.240-73 Information System Design and Development. 

As prescribed in 840.303-70(b), insert the following clause: 

INFORMATION SYSTEM DESIGN AND DEVELOPMENT (FEB 2023) 

• (a) Design or development at non-VA facilities. Information systems that are designed or developed for or on behalf of VA at non-VA facilities must comply with all VA directives developed in accordance with the Federal Information Security Modernization Act (FISMA), Health Insurance Portability and Accountability Act (HIPAA) regulations, NIST, and related VA security and privacy control requirements for Federal information systems. This includes standards for the protection of electronic protected health information (PHI), outlined in 45 CFR part 164, subpart C, information and system security categorization level designations in accordance with FIPS 199 and FIPS 200 with implementation of all baseline security controls commensurate with the FIPS 199 system security categorization and the Trusted Internet Connections (TIC) Reference Architecture). 
• (b) Privacy Impact Assessment. During the development cycle a Privacy Impact Assessment (PIA) must be completed, provided to the COR, and approved by the VA Privacy Service in accordance with VA Directive 6508, Implementation of Privacy Threshold Analysis and Privacy Impact Assessment. 
• (c) Security of procured or developed systems and technologies. The Contractor must ensure the security of all procured or developed systems and technologies, including their subcomponents (hereinafter referred to as “Systems”), throughout the life of the contract and any extension, warranty, or maintenance periods. This includes, but is not limited to, workarounds, patches, hotfixes, upgrades, and any physical components (hereafter referred to as Security Fixes) which may be necessary to fix all security vulnerabilities published or known to the Contractor anywhere in the Systems, including Operating Systems and firmware. The Contractor must ensure that Security Fixes must not negatively impact the Systems. 
• (d) Subcontract flow down requirements. The Contractor must include the clause at 52.224-1, Privacy Act Notification, in every solicitation and/or subcontract awarded by the Contractor when the clause FAR 52.224-1 is included in its contract. 

(End of clause) 

852.240-74 Information System Hosting, Operation, Maintenance, or Use. 

As prescribed in 840.303-70(c), insert the following clause: 

INFORMATON SYSTEM HOSTING, OPERATION, MAINTENANCE, OR USE (FEB 2023) 

• (a) Definitions. As used in this clause – 
• Assessment and Authorization (A&A) means the process used to ensure information systems including Major Applications and General Support Systems have effective security safeguards which have been implemented, planned for, and documented in an Information Technology Security Plan. The A&A process per applicable VA policies and procedures is the mechanism by which VA provides an Authorization to Operate (ATO), the official management decision given by the VA to authorize operation of an information system (see VA Handbook 6500 for additional details). 
• Information system security plan means a formal document that provides an overview of the security requirements for an information system and describes the security controls in place or planned for meeting those requirements. 
• (b) Hosting, operation, maintenance, or use at non-VA facilities. For information systems that are hosted, operated, maintained, or used on behalf of VA at non-VA facilities, Contractors/subcontractors are fully responsible and accountable for ensuring compliance with the applicable Health Insurance Portability and Accountability (HIPAA) Act of 1996 (HIPAA) Privacy and Security Rules, the Privacy Act and other required VA confidentiality statutes included in VA’s mandatory yearly training and privacy handbooks, Federal Information Security Modernization Act (FISMA), National Institute of Standards and Technology (NIST), Federal Information Processing Standards (FIPS), and VA security and privacy directives and handbooks. This includes conducting compliant risk assessments, routine vulnerability scanning, system patching and change management procedures, and the completion of an acceptable contingency plan for each system. The Contractor’s security control procedures must be equivalent to or exceed, those procedures used to secure VA systems. A Privacy Impact Assessment (PIA) must also be provided to the COR and approved by VA Privacy Service prior to approval to operate. All external internet connections to VA’s network involving VA information must be in accordance with the Trusted internet Connections (TIC) Reference Architecture and reviewed and approved by VA prior to implementation. For Cloud Services hosting, the Contractor must also ensure compliance with the Federal Risk and Authorization Management Program (FedRAMP). 
• (c) Collecting, processing, transmitting, and storing of VA sensitive information.  Adequate security controls for collecting, processing, transmitting, and storing of VA sensitive information, must be in place, tested, and approved by VA prior to hosting, operation, maintenance, or use of the information system, or systems by or on behalf of VA. These security controls are to be assessed and stated within the Information System Security Plan and if these controls are determined not to be in place, or inadequate, a Plan of Action and Milestones (POA&M) must be submitted and approved prior to the collection, processing, transmitting, and storing of VA sensitive information. 
• (d) Annual FISMA security controls assessment. The Contractor/subcontractor’s system must adhere to all FISMA, FIPS, and NIST standards related to the annual FISMA security controls assessment and review and update the Privacy Impact Assessment. Any deficiencies noted during this assessment must be provided to the Contracting Officer for entry into VA’s POA&M management process. The Contractor/subcontractor must use VA’s POA&M process to document planned remedial actions to address any deficiencies in information security policies, procedures, and practices, and the completion of those activities. Security deficiencies must be corrected within the timeframes specified by the VA in the performance work statement (PWS) or statement of work (SOW), or in the approved remediation plan through the VA POA&M process. Contractor/subcontractor procedures are subject to periodic, unannounced assessments by VA officials, including the VA Office of Inspector General. The physical security aspects associated with Contractor/subcontractor activities must also be subject to such assessments. The results of an annual review or a major change in the cybersecurity posture at any time may indicate the need for reassessment and reauthorization of the system. If major changes to the system occur that may affect the privacy or security of the data or the system, the A&A of the system may need to be reviewed, retested and re-authorized per VA Handbook 6500. This may require reviewing and updating all of the documentation as described in VA Handbook 6500.6 (e.g., System Security Plan, Contingency Plan). See VA Handbook 6500.6 for a list of documentation. The VA Information System Risk Management (ISRM) office can provide guidance on whether a new A&A would be necessary. 
• (e) Annual self-assessment. The Contractor/subcontractor must conduct an annual self-assessment on all systems and outsourced services as required. Both hard copy and electronic copies of the assessment must be provided to the COR. VA reserves the right to conduct such an assessment using government personnel or another Contractor/subcontractor. The Contractor/subcontractor must take appropriate and timely action, as may be specifically addressed in the contract, to correct or mitigate any weaknesses discovered during such testing, at no additional cost to the Government to correct Contractor/subcontractor systems and outsourced services. 
• (f) Prohibition of installation and use of personally-owned or Contractor-owned equipment or software on VA networks. VA prohibits the installation and use of personally-owned or Contractor/subcontractor-owned equipment or software on VA networks. If non-VA owned equipment must be used to fulfill the requirements of a contract, it must be stated in the service agreement, PWS, SOW or contract. All of the security controls required for government furnished equipment (GFE) must also be utilized in approved other equipment (OE) at the Contractor’s expense. All remote systems must be equipped with, and use, a VA-approved antivirus (AV) software and a personal (host-based or enclave based) firewall that is configured with a VA-approved configuration. Software must be kept current, including all critical updates and patches. Owners of approved OE are responsible for providing and maintaining the anti-viral software and the firewall on the non-VA owned OE. 
• (g) Disposal or return of electronic storage media on non-VA leased or non-VA owned IT equipment. All electronic storage media used on non-VA leased or non-VA owned IT equipment that is used to store, process, or access VA information must be handled in adherence with NIST 800-88, Rev. 1, “Guidelines for Media Sanitization,” and VA Directive 6500, VA Cybersecurity Program, paragraph 2(b)(5), Media Sanitization including upon – 
  • (1) Completion or termination of the contract; or 
  • (2) Disposal or return of the IT equipment by the Contractor/subcontractor or any person acting on behalf of the Contractor/subcontractor, whichever is earlier. Media (e.g., hard drives, optical disks, CDs, back-up tapes) used by the Contractors and/or subcontractors that contain VA information must be returned to the VA for sanitization or destruction or the Contractor and/or subcontractor must self-certify that the media has been disposed of per VA Handbook 6500.1 requirements. This must be completed within 30 days of termination of the contract. 
• (h) Bio-Medical devices and other equipment or systems. Bio-Medical devices and other equipment or systems containing media (e.g., hard drives, optical disks) with VA sensitive information will not be returned to the Contractor at the end of lease, for trade-in, or other purposes. For purposes of these devices and protection of VA sensitive information the devices may be provided back to the Contractor under one of three scenarios – 
  • (1) The Contractor must accept the system without the drive; 
  • (2) A spare drive must be installed in place of the original drive at time of turn-in if VA’s initial medical device purchase included a spare drive; or 
  • (3) The Contractor may request reimbursement for the drive at a reasonable open market replacement cost to be separately negotiated by the Contracting Officer and the Contractor at time of contract closeout. 

(End of clause) 

852.240-75 Security Controls Compliance Testing. 

As prescribed in 840.303-70(d), insert the following clause: 

SECURITY CONTROLS COMPLIANCE TESTING (FEB 2023) 

On a periodic basis, VA, including the Office of Inspector General, reserves the right to evaluate any or all of the security and privacy controls implemented by the Contractor under the clauses contained within the contract. With 10 working-days’ notice, at the request of the government, the Contractor must fully cooperate and assist in a government-sponsored security controls assessment at each location wherein VA information is processed or stored, or information systems are developed, operated, maintained, or used on behalf of VA, including those initiated by the Office of Inspector General. The government may conduct a security control assessment on shorter notice, to include unannounced assessments, as determined by VA in the event of a security incident or at any other time. 

(End of clause) 

852.240-76, Information and Information Systems Security 

As prescribed in 840.303-70(e), insert the following clause: 

INFORMATION AND INFORMATION SYSTEMS SECURITY (FEB 2023) 

• (a) Definitions. As used in this clause – 
• Business Associate means an entity, including an individual (other than a member of the workforce of a covered entity), company, organization or another covered entity, as defined by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy Rule, that performs or assists in the performance of a function or activity on behalf of the Veterans Health Administration (VHA) that involves the creating, receiving, maintaining, transmitting of, or having access to, protected health information (PHI). The term also includes a subcontractor of a business associate that creates, receives, maintains, or transmits PHI on behalf of the business associate. 
• Business Associate Agreement (BAA) means the agreement, as dictated by the Privacy Rule, between VHA and a business associate, which must be entered into in addition to the underlying contract for services and before any release of PHI can be made to the business associate, in order for the business associate to perform certain functions or activities on behalf of VHA. 
• Information system means a discrete set of information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information whether automated or manual. 
• Information technology  (see FAR 2.101) also means Information and Communication Technology (ICT). 
• Information technology-related contracts means those contracts which include services (including support services), and related resources for information technology as defined in 802.101. 
• Privacy officer means the VA official with responsibility for implementing and oversight of privacy related policies and practices that impact a given VA acquisition. 
• Sensitive personal information means, with respect to an individual, any information about the individual maintained by VA, including but not limited to the following: 
  • (1) Education, financial transactions, medical history, and criminal or employment history. 
  • (2) Information that can be used to distinguish or trace the individual’s identity, including but not limited to name, social security number, date and place of birth, mother’s maiden name, or biometric records. 
• Security plan means a formal document that provides an overview of the security requirements for an information system or an information security program and describes the security controls in place or planned for meeting those requirements. 
• VA Information Security Rules of Behavior for Organizational Users (VA National Rules of Behavior) means a set of VA rules that describes the responsibilities and expected behavior of users of VA information or information systems. 
• VA sensitive information means all VA data, on any storage media or in any form or format, which requires protection due to the risk of harm that could result from inadvertent or deliberate disclosure, alteration, or destruction of the information and includes sensitive personal information. The term includes information where improper use or disclosure could adversely affect the ability of VA to accomplish its mission, proprietary information, records about individuals requiring protection under various confidentiality provisions such as the Privacy Act and the HIPAA Privacy Rule, and information that can be withheld under the Freedom of Information Act. Examples of VA sensitive information include the following: individually-identifiable medical, benefits, and personnel information; financial, budgetary, research, quality assurance, confidential commercial, critical infrastructure, investigatory, and law enforcement information; information that is confidential and privileged in litigation such as information protected by the deliberative process privilege, attorney work-product privilege, and the attorney-client privilege; and other information which, if released, could result in violation of law or harm or unfairness to any individual or group, or could adversely affect the national interest or the conduct of Federal programs. 
• (b) General. Contractors, subcontractors, their employees, third-parties, and business associates with access to VA information, information systems, or information technology (IT) or providing and accessing IT-related goods and services, must adhere to VA Directive 6500, VA Cybersecurity Program, and the directives and handbooks in the VA 6500 series related to VA information (including VA sensitive information and sensitive personal information and information systems security and privacy), as well as those set forth in the contract specifications, statement of work, or performance work statement. These include, but are not limited to, VA Handbook 6500.6, Contract Security; and VA Directive and Handbook 0710, Personnel Security and Suitability Program, which establishes VA’s procedures, responsibilities, and processes for complying with current Federal law, Executive Orders, policies, regulations, standards and guidance for protecting VA information, information systems (see 802.101, Definitions) security and privacy, and adhering to personnel security requirements when accessing VA information or information systems. 
• (c) Access to VA information and VA information systems.  
  • (1) Contractors are limited in their request for logical or physical access to VA information or VA information systems for their employees, subcontractors, third parties and business associates to the extent necessary to perform the services or provide the goods as specified in the contracts, agreements, task, delivery or purchase orders. 
  • (2) All Contractors, subcontractors, third parties, and business associates working with VA information are subject to the same investigative requirements as those of VA appointees or employees who have access to the same types of information. The level and process of background security investigations for contractors to access VA information and VA information systems must be in accordance with VA  Directive and Handbook 0710, Personnel Security and Suitability Program. 
  • (3) Contractors, subcontractors, third parties, and business associates who require access to national security programs must have a valid security clearance. 
  • (4) HIPAA Business Associate Agreement requirement. Contractors must enter into a Business Associate Agreement (BAA) with VHA, VA’s Covered Entity, when contract requirements and access to protected health information is required and when requested by the Contracting Officer, or the Contracting Officer’s Representative (COR) (see VAAR 824.103-70). Under the HIPAA Privacy and Security Rules, a Covered Entity (VHA) must have a satisfactory assurance that its PHI will be safeguarded from misuse. To do so, a Covered Entity enters into a BAA with a contractor (now the business associate), which obligates the business associate to only use the Covered Entity’s PHI for the purposes for which it was engaged, provide the same protections and safeguards as is required from the Covered Entity, and agree to the same disclosure restrictions to PHI that is required of the Covered Entity in situations where a contractor— 
    • (i) Creates, receives, maintains, or transmits VHA PHI or that will store, generate, access, exchange, process, or utilize such PHI in order to perform certain health care operations activities or functions on behalf of the Covered Entity; or 
    • (ii) Provides one or more of the services specified in the Privacy Rule to or for the Covered Entity. 
      • (A) Contractors or entities required to execute BAAs for contracts and other agreements become VHA business associates. BAAs are issued by VHA or may be issued by other VA programs in support of VHA. The HIPAA Privacy Rule requires VHA to execute compliant BAAs with persons or entities that create, receive, maintain, or transmit VHA PHI or that will store, generate, access, exchange, process, or utilize such PHI in order to perform certain activities, functions or services to, for, or on behalf of VHA. There may be other VA components or staff offices which also provide certain services and support to VHA and must receive PHI in order to do so. If these components award contracts or enter into other agreements, purchase/delivery orders, modifications and issue governmentwide purchase card transactions to help in the delivery of these services to VHA, they will also fall within the requirement to obtain a satisfactory assurance from these contractors by executing a BAA. 
      • (B) BAA requirement flows down to subcontractors. A prime Contractor required to execute a BAA must also obtain a satisfactory assurance, in the form of a BAA, that any of its subcontractors who will also create, receive, maintain, or transmit VHA PHI or that will store, generate, access, exchange, process, or utilize such PHI will comply with HIPAA requirements to the same degree as the Contractor. Contractors employing a subcontractor who creates, receives, maintains, or transmits VHA PHI or that will store, generate, access, exchange, process, or utilize such VHA PHI under a contract or agreement is required to execute a BAA with each of its subcontractors which also obligates the subcontractor (i.e., also a business associate) to provide the same protections and safeguards and agree to the same disclosure restrictions to VHA’s PHI that is required of the Covered Entity and the prime Contractor. 
• (d) Contractor operations required to be in United States. Custom software development and outsourced operations must be located in the U.S. to the maximum extent practicable. If such services are proposed to be performed outside the continental United States, and are not otherwise disallowed by other Federal law, regulations or policy, or other VA policy or other mandates as stated in the contract, specifications, statement of work or performance work statement (including applicable Business Associate Agreements), the Contractor/subcontractor must state in its proposal where all non-U.S. services are provided. At a minimum, the Contractor/subcontractor must include a detailed Information Technology Security Plan, for review and approval by the Contracting Officer, specifically to address mitigation of the resulting problems of communication, control, and data protection. 
• (e) Contractor/subcontractor employee reassignment and termination notification. Contractors and subcontractors must provide written notification to the Contracting Officer and Contracting Officer’s Representative (COR) immediately, and not later than four (4) hours, when an employee working on a VA information system or with access to VA information is reassigned or leaves the Contractor or subcontractor’s employment on the cognizant VA contract. The Contracting Officer and COR must also be notified immediately by the Contractor or subcontractor prior to an unfriendly termination. 
• (f) VA information custodial requirements. 
  • (1) Release, publication, and use of data. Information made available to a Contractor or subcontractor by VA for the performance or administration of a contract or information developed by the Contractor/subcontractor in performance or administration of a contract must be used only for the stated contract purpose and must not be used in any other way without VA’s prior written approval. This clause expressly limits the Contractor’s/subcontractor’s rights to use data as described in Rights in Data—General, FAR 52.227-14(d). 
  • (2) Media sanitization. VA information must not be co-mingled with any other data on the Contractors/subcontractor’s information systems or media storage systems in order to ensure federal and VA requirements related to data protection, information segregation, classification requirements, and media sanitization can be met (see VA Directive 6500, VA Cybersecurity Program).VA reserves the right to conduct scheduled or unscheduled on-site inspections, assessments, or audits of Contractor and subcontractor IT resources, information systems and assets to ensure data security and privacy controls, separation of data and job duties, and destruction/media sanitization procedures are in compliance with Federal and VA requirements. The Contractor and subcontractor will provide all necessary access and support to VA and/or GAO staff during periodic control assessments or audits. 
  • (3) Data retention, destruction, and contractor self-certification. The Contactor and its subcontractors are responsible for collecting and destroying any VA data provided, created, or stored under the terms of this contract, to a point where VA data or materials are no longer readable or reconstruct able to any degree, in accordance with VA Directive 6371, Destruction of Temporary Paper Records, or subsequent issue. Prior to termination or completion of this contract, the Contractor/subcontractor must provide its plan for destruction of all VA data in its possession according to VA Directive 6500, and VA Cybersecurity Program, including compliance with National Institute of Standards and Technology (NIST) 800-88, Guidelines for Media Sanitization, for the purposes of media sanitization on all IT equipment. The Contractor must certify in writing to the Contracting Officer within 30 days of termination of the contract that the data destruction requirements in this paragraph have been met. 
  • (4) Return of VA data and information. When information, data, documentary material, records and/or equipment are no longer required, it must be returned to the VA (as stipulated by the Contracting Officer or the COR) or the Contractor/subcontractor must hold it until otherwise directed. Items returned will be hand carried, securely mailed, emailed, or securely electronically transmitted to the Contracting Officer or to the address as provided in the contract or by the assigned COR, and/or accompanying BAA. Depending on the method of return, Contractor/subcontractor must store, transport, or transmit VA sensitive information, when permitted by the contract using VA-approved encryption tools that are, at a minimum, validated under Federal Information Processing Standards (FIPS) 140-3 (or its successor). If mailed, Contractor/subcontractor must send via a trackable method (USPS, UPS, Federal Express, etc.) and immediately provide the Contracting Officer with the tracking information. No information, data, documentary material, records or equipment will be destroyed unless done in accordance with the terms of this contract and the VHA Records Control Schedule 10-1. 
  • (5) Use of VA data and information. The Contractor/subcontractor must receive, gather, store, back up, maintain, use, disclose and dispose of VA information only in compliance with the terms of the contract and applicable Federal and VA information confidentiality and security laws, regulations and policies. If Federal or VA information confidentiality and security laws, regulations and policies become applicable to the VA information or information systems after execution of the contract, or if the National NIST issues or updates applicable FIPS or Special Publications (SP) after execution of this contract, the parties agree to negotiate in good faith to implement the information confidentiality and security laws, regulations and policies for this contract as a result of any updates, if required. 
  • (6) Copying VA data or information. The Contractor/subcontractor must not make copies of VA information except as authorized and necessary to perform the terms of the contract or to preserve electronic information stored on Contractor/subcontractor electronic storage media for restoration in case any electronic equipment or data used by the Contractor/subcontractor needs to be restored to an operating state. If copies are made for restoration purposes, after the restoration is complete, the copies must be appropriately destroyed. 
  • (7) Violation of information custodial requirements. If VA determines that the Contractor has violated any of VA’s information confidentiality, privacy, or security provisions, it must be sufficient grounds for VA to withhold payment to the Contractor or third-party or terminate the contract for default in accordance with FAR part 49 or terminate for cause in accordance with FAR 12.403. 
  • (8) Encryption. The Contractor/subcontractor must store, transport, or transmit VA sensitive information, when permitted by the contract, using cryptography, and VA-approved encryption tools that are, at a minimum, validated under FIPS 140-3 (or its successor). 
  • (9) Firewall and web services security controls. The Contractor/subcontractor’s firewall and web services security controls, if applicable, must meet or exceed VA’s minimum requirements. VA Configuration Guidelines are available upon request. 
  • (10) Disclosure of VA data and information. Except for uses and disclosures of VA information authorized in a cognizant contract for performance of the contract, the Contractor/subcontractor may use and disclose VA information only in two other situations: (i) subject to paragraph (f)(10) of this section, in response to a court order from a court of competent jurisdiction, or (ii) with VA’s prior written approval. The Contractor/subcontractor must refer all requests for demands for production of, or inquiries about, VA information and information systems to the Contracting Officer for response. If the Contractor/subcontractor is in receipt of a court order or other request or believes it has a legal requirement to disclose VA information, that Contractor/subcontractor must immediately refer such court order or other request to the Contracting Officer for response. If the Contractor or subcontractor discloses information on behalf of VHA, the Contractor and/or subcontractor must maintain an accounting of disclosures. Accounting of Disclosures documentation maintained by the Contractor/subcontractor will include the name of the individual to whom the information pertains, the date of each disclosure, the nature or description of the information disclosed, a brief statement of the purpose of each disclosure or, in lieu of such statement, a copy of a written request for a disclosure, and the name and address of the person or agency to whom the disclosure was made. The Contractor/subcontractor will provide its Accounting of Disclosures upon request and within 15 calendar days to the assigned COR and Privacy Officer. Accounting of disclosures should be provided electronically via encrypted email to the COR and designated VA facility Privacy Officer as provided in the contract, BAA, or by the Contracting Officer. If providing the Accounting of Disclosures electronically cannot be done securely, the Contractor/subcontractor will provide copies via trackable methods (UPS, USPS, Federal Express, etc.) immediately, providing the designated COR and Privacy Officer with the tracking information. 
  • (11) Compliance with privacy statutes and applicable regulations. The Contractor/subcontractor must not disclose VA information protected by any of VA’s privacy statutes or applicable regulations including but not limited to: the Privacy Act of 1974, 38 U.S.C. 5701, confidential nature of claims, 38 U.S.C. 5705, confidentiality of medical quality assurance records and/or 38 U.S.C. 7332, confidentiality of certain health records pertaining to drug addiction, sickle cell anemia, alcoholism or alcohol abuse, or infection with human immunodeficiency virus or the HIPAA Privacy Rule. If the Contractor/subcontractor is in receipt of a court order or other requests for VA information or has questions if it can disclose information protected under the above-mentioned confidentiality statutes because it is required by law, that Contractor/subcontractor must immediately refer such court order or other request to the Contracting Officer for response. 
• (g) Report of known or suspected security/privacy incident. The Contractor, subcontractor, third-party affiliate or business associate, and its employees must notify VA immediately via the Contracting Officer and the COR or within one (1) hour of an incident which is an occurrence (including the discovery or disclosure of successful exploits of system vulnerability) that (A) actually or imminently jeopardizes, without lawful authority, the integrity, confidentiality, or the availability of its data and operations, or of its information or information system(s); or (B) constitutes a violation or imminent threat of violation of law, security policies, security procedures, or acceptable use policies. The initial notification may first be made verbally but must be followed up in writing within one (1) hour. See VA Data Breach Response Service at https://www.oprm.va.gov/dbrs/about_dbrs.aspx. Report all actual or suspected security/privacy incidents and report the information to the Contracting Officer and the COR as identified in the contract or as directed in the contract, within one hour of discovery or suspicion. 
  • (1) Such issues must be remediated as quickly as is practical, but in no event longer than __________ days [Fill in: Contracting Officer fills in the number of days]. The Contractor must notify the Contracting Officer in writing. 
  • (2) When the security fixes involve installing third party patches (e.g., Microsoft OS patches or Adobe Acrobat), the Contractor will provide written notice to VA that the patch has been validated as not affecting the systems within 10 working days. When the Contractor is responsible for operations or maintenance of the systems, they must apply the security fixes within ____ [Fill in: Contracting Officer fills in the number of days in consultation with requiring activity]. 
  • (3) All other vulnerabilities must be remediated in a timely manner based on risk, but within 60 days of discovery or disclosure. Contractors must notify the Contracting Officer, and COR within 2 business days after remediation of the identified vulnerability. Exceptions to this paragraph (e.g., for the convenience of VA) must be requested by the Contractor through the COR and must only be granted with approval of the Contracting Officer and the VA Assistant Secretary for Office of Information and Technology. These exceptions will be tracked by the Contractor in concert with the Government in accordance with VA Directive 6500 and related VA Handbooks. 
• (h) Security and privacy incident investigation.  
  • (1) The term “privacy incident” means the unauthorized disclosure or use of VA information protected under a confidentiality statute or regulation. 
  • (2) The term “security incident” means an occurrence that (A) actually or imminently jeopardizes, without lawful authority, the integrity, confidentiality, or availability of information systems; or (B) constitutes a violation or imminent threat of violation of law, security policies, security procedures, or acceptable policies. The Contractor/ subcontractor must immediately notify the Contracting Officer and COR for the contract of any known or suspected security or privacy incident, or any other unauthorized disclosure of sensitive information, including that contained in system(s) to which the Contractor/subcontractor has access. 
  • (3) To the extent known by the Contractor/subcontractor, the Contractor/ subcontractor’s notice to VA must identify the information involved, the circumstances surrounding the incident (including to whom, how, when, and where the VA information or assets were placed at risk or compromised), and any other information that the Contractor/subcontractor considers relevant. 
  • (4) With respect to unsecured PHI, the Business Associate is deemed to have discovered a security incident as defined above when the Business Associate either knew, or by exercising reasonable diligence should have been known to an employee of the Business Associate. Upon discovery, the Business Associate must notify VHA of the security incident immediately within one hour of discovery or suspicion as agreed to in the BAA. 
  • (5) In instances of theft or break-in or other criminal activity, the Contractor/subcontractor must concurrently report the incident to the appropriate law enforcement entity (or entities) of jurisdiction, including the VA OIG and the VA Office of Security and Law Enforcement. The Contractor, its employees, and its subcontractors and their employees must cooperate with VA and any law enforcement authority responsible for the investigation and prosecution of any possible criminal law violations associated with any incident. The Contractor/subcontractor must cooperate with VA in any civil litigation to recover VA information, obtain monetary or other compensation from a third party for damages arising from any incident, or obtain injunctive relief against any third party arising from, or related to, the incident. 
• (i) Data breach notification requirements. 
  • (1) This contract may require access to sensitive personal information. If so, the Contractor is liable to VA for liquidated damages in the event of a data breach involving any VA sensitive personal information the Contractor/Subcontractor processes or maintains under the contract as set forth in clause 852.211-76, Liquidated Damages—Reimbursement for Data Breach Costs. 
  • (2) The Contractor/subcontractor must provide notice to VA of a privacy or security incident as set forth in the Security and Privacy Incident Investigation section of this clause. The term ‘data breach’ means the loss, theft, or other unauthorized access, or any access other than that incidental to the scope of employment, to data containing sensitive personal information, in electronic or printed form, that results in the potential compromise of the confidentiality or integrity of the data. The Contractor must fully cooperate with VA or third-party entity performing an independent risk analysis on behalf of VA. Failure to cooperate may be deemed a material breach and grounds for contract termination. 
  • (3) The Contractor/subcontractor must fully cooperate with VA or any Government agency conducting an analysis regarding any notice of a data breach or potential data breach or security incident which may require the Contractor to provide information to the Government or third-party performing a risk analysis for VA, and must address all relevant information concerning the data breach, including the following: 
    • (i) Nature of the event (loss, theft, unauthorized access). 
    • (ii) Description of the event, including— 
      • (A) Date of occurrence; 
      • (B) Date of incident detection; 
      • (C) Data elements involved, including any PII, such as full name, social security number, date of birth, home address, account number, disability code. 
      • (D) Number of individuals affected or potentially affected. 
      • (E) Names of individuals or groups affected or potentially affected. 
      • (F) Ease of logical data access to the lost, stolen or improperly accessed data in light of the degree of protection for the data, e.g., unencrypted, plain text. 
      • (G) Amount of time the data has been out of VA control. 
      • (H) The likelihood that the sensitive personal information will or has been compromised (made accessible to and usable by unauthorized persons). 
      • (I) Known misuses of data containing sensitive personal information, if any. 
      • (J) Assessment of the potential harm to the affected individuals. 
      • (K) Data breach analysis as outlined in 6500.2 Handbook, Management of Breaches Involving Sensitive Personal Information, as appropriate. 
      • (L) Whether credit protection services may assist record subjects in avoiding or mitigating the results of identity theft based on the sensitive personal information that may have been compromised. 
      • (M) Steps taken in response to mitigate or prevent a repetition of the incident. 
• (j) Training.  
  • (1) All Contractor employees and subcontractor employees requiring access to VA information or VA information systems must complete the following before being granted access to VA information and its systems: 
    • (i) On an annual basis, successfully complete the VA Privacy and Information Security Awareness and VA Information Security Rules of Behavior training. 
    • (ii) On an annual basis, sign and acknowledge (either manually or electronically) understanding of and responsibilities for compliance with the VA Information Security Rules of Behavior for Organizational Users, relating to access to VA information and information systems. 
    • (iii) Successfully complete any additional cyber security or privacy training, as required for VA personnel with equivalent information system access. 
  • (2) The Contractor must provide to the Contracting Officer and/or the COR a copy of the training certificates and affirmation that VA Information Security Rules of Behavior for Organizational Users signed by each applicable employee have been completed and submitted within five (5) days of the initiation of the contract and annually thereafter, as required. 
  • (3) Failure to complete the mandatory annual training and acknowledgement of the VA Information Security Rules of Behavior, within the timeframe required, is grounds for suspension or termination of all physical or electronic access privileges and removal from work on the contract until such time as the training and documents are complete. 
• (k) Subcontract flow down. The Contractor must include the substance of this clause, including this paragraph (k), in subcontracts, third-party agreements, and BAAs, of any amount and in which subcontractor employees, third-party servicers/employees, and business associates will perform functions where they will have access to VA information (including VA sensitive information, i.e., sensitive personal information and protected health information), information systems, information technology (IT) or providing and accessing information technology-related contract services, support services, and related resources (see VAAR 802.101 definition of information technology-related contracts). 

(End of clause)

852.241-70 Disputes—Utility Contracts. 

As prescribed in 841.501-70, insert the following clause:  

DISPUTES—UTILITY CONTRACTS (OCT 2026)(DEVIATION) 

• (a) Definition. As used in this clause, Independent regulatory body means the Federal Energy Regulatory Commission, a state-wide agency, or an agency with less than state-wide jurisdiction when operating pursuant to state authority. The body has the power to fix, establish, or control the rates and services of utility suppliers.  
• (b) Independent Regulatory Body determinations. The requirements of the Disputes clause at FAR 52.233-1 are supplemented to provide that matters involving the interpretation of tariffed retail rates, tariff rate schedules, and tariffed terms provided under this contract are subject to any determinations by the independent regulatory body having jurisdiction.  

(End of clause) 

852.243-70 Construction Contract Changes—Supplement. 

As prescribed in 843.305-70, insert the following clause: 

CONSTRUCTION CONTRACT CHANGE—SUPPLEMENT (OCT 2026)(DEVIATION) 

• (a) The FAR clauses 52.236-2, Differing Site Conditions; 52.243-4, Changes; and 52.243-5, Changes and Changed Conditions, are supplemented as follows. 
• (b) Submission of request for equitable adjustment proposals. The contractor must submit proposals for changes in the work in writing to the contracting officer or administrative contracting officer (ACO), and to the resident engineer. 
• (c) Time for asserting right to equitable adjustment. The contracting officer requires the contractor to assert its right to an equitable adjustment under the applicable Changes clause within __ days [30 days unless a different number of days is inserted by the contracting officer] from the date the change order is issued or the basis for the request is known or should have been known, consistent with 843.305. 

(End of clause) 

852.246-71 Rejected Goods. 

As prescribed in 846.370-1, insert the following clause: 

REJECTED GOODS (OCT 2018) 

• (a) Supplies and equipment.  Rejected goods will be held subject to Contractor’s order for not more than 15 days, after which the rejected merchandise will be returned to the Contractor’s address at the Contractor’s risk and expense.  Expenses incident to the examination and testing of materials or supplies that have been rejected will be charged to the Contractor. 
• (b) Perishable supplies.  The Contractor must remove rejected perishable supplies within 48 hours after notice of rejection.  Supplies determined to be unfit for human consumption will not be removed without permission of the local health authorities.  Supplies not removed within the allowed time may be destroyed.  The Department of Veterans Affairs will not be responsible for, nor pay for, products rejected.  The Contractor will be liable for costs incident to examination of rejected products. 

(End of clause) 

852.246-72 Frozen Processed Foods. 

As prescribed in 846.370-2, insert the following clause: 

FROZEN PROCESSED FOODS (OCT 2018) 

The products delivered under this contract must be in excellent condition, must not show evidence of defrosting, refreezing, or freezer burn and must be transported and delivered to the consignee at a temperature of 0 degrees Fahrenheit or lower. 

(End of clause) 

852.246-73 Noncompliance with Packaging, Packing, and/or Marking Requirements. 

As prescribed in 846.370-3, insert the following clause: 

NONCOMPLIANCE WITH PACKAGING, PACKING AND/OR MARKING REQUIREMENTS (OCT 2018) 

Failure to comply with the packaging, packing and/or marking requirements indicated herein, or incorporated herein by reference, may result in rejection of the merchandise and request for replacement or repackaging, repacking, and/or marking.  The Government reserves the right, without obtaining authority from the contractor, to perform the required repackaging, repacking, and/or marking services and charge the contractor at the actual cost to the Government for the same or have the required repackaging, repacking, and/or marking services performed commercially under Government order and charge the contractor at the invoice rate.  In connection with any discount offered, time will be computed from the date of completion of such repackaging, repacking and/or marking services. 

(End of clause) 

852.246-75 Warranty of Construction–Guarantee Period Services. 

As prescribed in 846.702-70(e), insert the following clause: 

WARRANTY OF CONSTRUCTION–GUARANTEE PERIOD SERVICES (OCT 2018) 

The clause 52.246-21, Warranty of Construction, is supplemented as follows: Should the contractor fail to complete the work or fail to proceed promptly to provide guarantee period services after notification by the Contracting Officer, the Government may, subject to the default clause contained at FAR 52.249-10, Default (Fixed-Price Construction), and after allowing the Contractor 10 days to correct and comply with the contract, terminate the right to proceed with the work (or the separable part of the work) that has been delayed or unsatisfactorily performed.  In this event, the Government may take over the work and complete it by contract or otherwise, and may take possession of and use any materials, appliances, and plant on the work site necessary for completing the work.  The Contractor and its sureties must be liable for any damages to the Government resulting from the Contractor’s refusal or failure to complete the work within this specified time, whether or not the Contractor’s right to proceed with the work is terminated.  This liability includes any increased costs incurred by the Government in completing the work. 

(End of clause) 

852.246-76 Purchase of Shellfish. 

As prescribed in 846.370-4, insert the following clause: 

PURCHASE OF SHELLFISH (OCT 2018) 

The supplier certifies that oysters, clams, and mussels will be furnished only from plants approved by and operated under the supervision of shellfish authorities of States whose certifications are endorsed currently by the U.S. Public Health Service, and the names and certificate numbers of those shellfish dealers must appear on current lists published by the U.S. Public Health Service.  These items must be packed and delivered in approved containers, sealed in such manner that tampering is easily discernible, and marked with packer’s certificate number impressed or embossed on the side of such containers and preceded by the State abbreviation.  Containers must be tagged or labeled to show the name and address of the approved producer or shipper, the name of the State of origin, and the certificate number of the approved producer or shipper. 

(End of clause) 

852.247-70 Determining Transportation Costs for Evaluation of Offers. 

As prescribed in 847.305-71, insert the following provision: 

DETERMINING TRANSPORTATION COSTS FOR EVALUATION OF OFFERS (OCT 2026)(DEVIATION) 

For the purpose of evaluating bids and for no other purpose, the delivered price per unit will be determined by adding the nationwide average transportation charge to the f.o.b. origin bid prices.  The nationwide average transportation charge will be determined by applying the following formula: Multiply the guaranteed shipping weight by the freight, parcel post, or express rate, whichever is proper, to each destination shown below and then multiply the resulting transportation charges by the anticipated demand factor shown for each destination.  Total the resulting weighted transportation charges for all destinations and divide the total by 20 to give the nationwide average transportation charge. 

Anticipated demand

Area destination	Factor
Oakland, California	3
Dallas, Texas	2
Omaha, Nebraska	3
Fort Wayne, Indiana	4
Atlanta, Georgia	3
New York, New York	5
Total of factors	20

(End of provision) 

852.247-71  Delivery Location. 

As prescribed in 847.302, insert a clause substantially the same as: 

DELIVERY LOCATION (OCT 2026)(DEVIATION) 

Shipment of deliverable items, other than reports, shall be to:  ________ [Contracting Officer shall insert appropriate identifying data]. 

(End of clause) 

852.247-72  Marking Deliverables. 

As prescribed in 847.305-70(a)(1), insert a clause substantially the same as: 

MARKING DELIVERABLES (OCT 2026)(DEVIATION) 

• (a) The contract number shall be placed on or adjacent to all exterior mailing or shipping labels of deliverable items called for by the contract. 
• (b) Mark deliverables, except reports, for:  _______ [Contracting Officer shall insert appropriate identifying data]. 

(End of clause) 

852.247-73  Packing for Domestic Shipment. 

As prescribed in 847.305-70(a)(2), insert the following clause: 

PACKING FOR DOMESTIC SHIPMENT (OCT 2026)(DEVIATION) 

Material shall be packed for shipment in such a manner that will ensure acceptance by common carriers and safe delivery at destination.  Containers and closures shall comply with regulations of carriers as applicable to the mode of transportation. 

(End of clause) 

852.247-74  Advance Notice of Shipment. 

As prescribed in 847.305-72(a), insert the following clause: 

ADVANCE NOTICE OF SHIPMENT (OCT 2026)(DEVIATION) 

_____ [Insert number of work days] work days prior to shipping item(s) ______ [Insert items to be shipped], the Contractor shall furnish the anticipated shipment date, bill of lading number (if applicable), and carrier identity to __________ [Insert individual(s) to receive notification] and to the Contracting Officer. 

(End of clause) 

852.247-75  Bills of Lading. 

As prescribed in 847.305-72(b), insert the following clause: 

BILLS OF LADING (OCT 2026)(DEVIATION) 

The purpose of this clause is to define when a commercial bill of lading or a Government bill of lading is to be used when shipments of deliverable items under this contract are f.o.b. origin. 

• (a) Commercial bills of lading.  All domestic shipments shall be made via commercial bills of lading (CBLs). The Contractor shall prepay domestic transportation charges.  The Government shall reimburse the Contractor for these charges if they are added to the invoice as a separate line item supported by the paid freight receipts. If paid receipts in support of the invoice are not obtainable, a statement as described below must be completed, signed by an authorized company representative, and attached to the invoice. 
  • “I certify that the shipments identified below have been made, transportation charges have been paid by [company name], and paid freight or comparable receipts are not obtainable. 
  • Contract or Order Number: ___________ 
  • Destination:____________.” 
• (b) Government bills of lading. 
  • (1) International (export) and domestic overseas shipments of items deliverable under this contract shall be made by Government bills of lading (GBLs).  As used in this clause, “domestic overseas” means non-continental United States, i.e. Hawaii, Commonwealth of Puerto Rico, and possessions of the United States. 
  • (2) At least 15 days before shipment, the Contractor shall request in writing GBLs from:  ________ [Insert name, title, and mailing address of designated transportation officer or other official delegated responsibility for GBLs].  If time is limited, requests may be by telephone:  ________ [Insert appropriate telephone number].  Requests for GBLs shall include the following information. 
    • (i) Item identification/ description. 
    • (ii) Origin and destination. 
    • (iii) Individual and total weights. 
    • (iv) Dimensional Weight. 
    • (v) Dimensions and total cubic footage. 
    • (vi) Total number of pieces. 
    • (vii) Total dollar value. 
    • (viii) Other pertinent data. 

(End of clause) 

852.252-70 Solicitation Provisions or Clauses Incorporated by Reference. 

As prescribed in 852.102(a), insert the following provision: 

SOLICITATION PROVISIONS OR CLAUSES INCORPORATED BY REFERENCE (JAN 2008) 

The following provisions or clauses incorporated by reference in this solicitation must be completed by the offeror or prospective contractor and submitted with the quotation or offer. Copies of these provisions or clauses are available on the Internet at the Web sites provided in the provision at FAR 52.252-1, Solicitation Provisions Incorporated by Reference, or the clause at FAR 52.252-2, Clauses Incorporated by Reference. Copies may also be obtained from the contracting officer. 

[Contracting officer shall list all FAR and 48 CFR Chapter 8 (VAAR) provisions and clauses incorporated by reference that must be completed by the offeror or prospective contractor and submitted with the quotation or offer.] 

(End of provision) 

852.271-72 Time Spent by Counselee in Counseling Process. 

As prescribed in 871.210, insert the following clause:  

TIME SPENT BY COUNSELEE IN COUNSELING PROCESS (NOV 2021) 

The Contractor agrees that no counselee referred under the provisions of this agreement will be required to participate or engage in additional sessions or expend any extra time in connection with the counseling process, to supply test results or other information, for purposes other than those specified in this contract.  

(End of clause) 

852.271-73 Use and Publication of Counseling Results. 

As prescribed in 871.210, insert the following clause:  

USE AND PUBLICATION OF COUNSELING RESULTS (NOV 2021) 

The Contractor agrees that none of the information or data gathered in connection with the services specified in this contract, or studies or materials based thereon or relating thereto, will be publicized without the prior approval of the Under Secretary for Benefits or his/her designee.  

(End of clause) 

852.271-74 Inspection of Instruction, Counseling or Testing Operations. 

As prescribed in 871.210, insert the following clause:  

INSPECTION OF INSTRUCTION, COUNSELING OR TESTING OPERATIONS (NOV 2021) 

The Contractor must permit the duly authorized representative of the Department of Veterans Affairs to visit the place of instruction or the counseling and testing operations as may be necessary and to examine the training facilities, the work of the Veterans in training under this contract, and the records of these operations, along with any other rights to examine records and conduct inspections in accordance with the Federal Acquisition Regulation and clauses contained in the  contract or order.  

(End of clause) 

852.273-70 Late offers. 

As prescribed in 873.106 (a), insert the following provision:   

LATE QUOTES OR PROPOSALS (OCT 2026)(DEVIATION) 

This provision replaces paragraph (c) of FAR provision 52.212-1, Instructions to Offerors—Commercial Items. Responses to solicitations or revisions of responses to solicitations received after the time set forth in a request for quotations or request for proposals may be considered, at the discretion of the Contracting Officer, if determined to be in the best interest of the Government.   

(End of provision) 

852.273-71 Alternative negotiation techniques. 

As prescribed in 873.107(d), insert the following provision:  

ALTERNATIVE NEGOTIATION TECHNIQUES (OCT 2026)(DEVIATION) 

The Contracting Officer may elect to use the alternative negotiation techniques described in 873.107(d) in conducting this procurement. If used, interested vendors may respond by maintaining the solicitation response as originally submitted, revising the response, or submitting an alternative solution. The Government may consider initial solicitation responses (unless revised or withdrawn), revised solicitation responses, and alternative solicitation responses, in making the award. Revising the solicitation response does not guarantee the vendor an award.  

(End of provision) 

852.273-72 Alternative evaluation. 

As prescribed in 873.107(b), insert the following provision:  

ALERNATIVE EVALUATION (OCT 2026)(DEVIATION) 

• (a) During the specified period for receipt of solicitation responses, the amount of the lowest solicitation response may be posted and may be viewed by Contracting Officer insert description of how the information may be viewed electronically or otherwise. Interested vendors may revise solicitation responses anytime during the specified period. At the end of the specified time period for receipt of solicitation responses, the Government will award a contract resulting from this solicitation to the responsible interested vendor whose solicitation response will be most advantageous to the Government, price and other factors considered.  
• (b) Except when it is determined not to be in the Government’s best interest, the Government will evaluate solicitation responses for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that the solicitation response is unacceptable if the option prices are materially unbalanced. Evaluation of options must not obligate the Government to exercise the option(s).  

(End of provision) 

852.273-73 Evaluation – Health-Care Resources. 

As prescribed in 873.106(d), in lieu of FAR provision 52.212-2, the Contracting Officer may insert a provision substantially as follows:  

EVALUATION – HEALTH-CARE RESOURCES (OCT 2026)(DEVIATION) 

• (a) The Government will award a contract resulting from this solicitation to the responsible vendor whose proposal, conforming to the solicitation, will be most advantageous to the Government, price and other factors considered. The following information or factors must be used to evaluate solicitation responses:  
• (b) Contracting Officer insert evaluation information or factors, such as technical capability to meet the Government’s requirements, past performance, or such other evaluation information or factors as the Contracting Officer deems necessary to evaluate solicitation responses. Price must be evaluated in every acquisition.  
• (c) Except when it is determined not to be in the Government’s best interest, the Government will evaluate solicitation responses for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that a solicitation response is unacceptable if the option prices are materially unbalanced. Evaluation of options should not obligate the Government to exercise the option(s). The Government may reject any or all proposals if such action is in the Government’s interest. Additionally, the Government may waive informalities and minor irregularities in proposals received.  
• (d) If this solicitation is a request for proposals (RFP), a written notice of award or acceptance of a proposal, mailed or otherwise furnished to the successful Offeror within the time for acceptance specified in the offer, must result in a binding contract without further action by either party. Before the offer’s specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received by the Contracting Officer before award.  

(End of provision) 

852.273-74 Award without negotiations. 

As prescribed in 873.106(e), insert the following provision:  

AWARD WITHOUT NEGOTIATIONS (OCT 2026)(DEVIATION) 

The Government intends to evaluate solicitation responses and award a contract without negotiations with interested vendors. Therefore, the submitted solicitation response must contain the interested vendor’s best terms from a cost or price and technical standpoint. The interested vendor must also structure their solicitation response so that the Government may make partial awards, and subsequent awards, if deemed to be in the best interest of the Government. The Government reserves the right to conduct negotiations in the Government’s best interest.  

(End of provision)

Effective Date: October 1, 2026

PART 871—VETERAN READINESS AND EMPLOYMENT PROGRAMS

Subpart 871.2 – Veteran Readiness and Employment Programs

871.200 Scope of subpart.
871.201 General.
871.201-1 Requirements for the use of contracts.
871.201-2 Definitions
871.205 Proration of charges.
871.206 Other fees and charges.
871.207 Payment of tuition or fees.
871.208 Rehabilitation facilities.
871.209 Prohibition on advertising – training of Veterans
871.210 Contract clauses.

Authority: 38 U.S.C. Ch.30; 38 U.S.C. Ch.31; 38 U.S.C. Ch. 32; 38 U.S.C. Ch. 35; 38 U.S.C. Ch. 36; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.

---

PART 871—VETERAN READINESS AND EMPLOYMENT PROGRAMS 

Subpart 871.2 – Veteran Readiness and Employment Programs 

871.200  Scope of subpart. 

This subpart establishes policy and procedures for the Veteran Readiness and Employment (VR&E) Services as it pertains to the following: 

• (a) Contracts for training and rehabilitation services. 
• (b) Approval of institutions (including rehabilitation facilities), training establishments, and employers under 38 U.S.C. Ch. 31. 
• (c) Contracts for counseling services under 38 U.S.C. Chapters 30, 31, 32, 35, and 36.

 871.201  General. 

871.201-1  Requirements for the use of contracts. 

The costs for tuition, fees, books, supplies, and other expenses are allowable under a contract with an institution, training establishment, or employer for the training and rehabilitation of eligible Veterans under 38 U.S.C. Ch. 31. 

871.201-2 Definitions. 

• (a) Courses of instruction by correspondence means a course of education or training conducted by mail consisting of regular lessons or reading assignments, the preparation of required written work that involves the application of principles studied in each lesson, the correction of assigned work with such suggestions or recommendation as may be necessary to instruct the student, the keeping of student achievement records, and issuance of a diploma, certificate, or other evidence to the student upon satisfactorily completing the requirements of the course. (38 U.S.C. Ch. 31)
• (b) Special services or special courses means those services or courses that VA requests that are supplementary to those the institution customarily provides for similarly circumstanced non-Veteran students and that the contracting officer considers to be necessary for the rehabilitation of the trainee. (38 U.S.C. Ch. 31)

871.205 Proration of charges.

 A contract must include the exact formula agreed on for the proration of charges if the Veteran’s program is interrupted or discontinued before the end of the term, semester, quarter, or other period, or the program is completed in less time than stated in the contract.

871.206 Other fees and charges.

 VA may pay fees and other charges that are not prescribed by law but are required by nongovernmental organizations, such as initiation fees required to become a member of a labor union and the dues necessary to maintain membership incidental to training on the job or to obtaining employment during a period in which the Veteran is a participant pursuant to 38 U.S.C. Ch. 31, provided there are no facilities feasibly available where the necessary training can be feasibly accomplished or employment obtained without paying such charges.

871.207 Payment of tuition or fees.

• (a)Contracts, agreements, or arrangements requiring the payment of tuition or fees must provide either of the following:
  • (1) Payment for tuition or fees must be made in arrears and must be prorated in installments over the school year or the length of the course.
  • (2) An institution may be paid in accordance with paragraph (b) of this section, if the institution operates on a regular term, quarter, or semester basis and normally accepts students only at the beginning of the term, quarter, or semester and if the institution is one of the following:
    • (i) An institution of higher learning that uses a standard unit of credit recognized by accrediting associations associations. Such institutions include those that are members of recognized national or regional educational accrediting associations, and those that, although not members of such accrediting associations, grant standard units of credit acceptable at full value without examination by collegiate institutions that are members of national or regional accrediting associations.
    • (ii) A public tax-supported institution.
    • (iii) An institution operated and controlled by a State, county, or local board of education.
• (b) An institution that meets the exceptions of paragraph (a)(2) of this section and that has a refund policy providing for a graduated scale of charges for purposes of determining refunds may be paid part or all such tuition or fees for a term, quarter, or other period of enrollment immediately following the date on which the refund expires. 
• (c) Proration of charges does not apply to a fee for noncontinuing service, such as a registration fee, etc.
• (d) The period for which payment of charges may be made is the period of actual enrollment and is subject to the following:
  • (1) The effective date is the date of the trainee’s entrance into training status, except that payment may be made for an entire semester, quarter, or term in institutions operating on that basis if the trainee enters no later than the final date set by the institution for enrolling for full credit.
  • (2) In those cases where the institution has not set a final date for enrolling for full credit or does not set a date acceptable to VA, payment may be prorated based on attendance, regardless of the refund policy. 
  • (3) If an institution customarily charges credit or number of hours of attendance for which a trainee enrolls, payment may be made on that basis when a trainee enrolls after the final date permitted for carrying full credit for the semester or term.

871.208 Rehabilitation facilities.

 Charges by rehabilitation facilities for the rehabilitation services provided under 38 U.S.C. Ch. 31 are paid in the same manner as charges for educational and vocational services through contract, agreement, or other arrangement. 

 871.209  Prohibition on advertising – training of Veterans. 

• (a) The training of persons under a VA contract or the fact that the United States is using the facilities of the institution for training Veterans must not be used in any way to advertise the institution.
• (b) References in the advertising media or correspondence of the institution must be limited to a list of courses under 38 U.S.C. Ch.31 and must not be directed or pointed specifically to Veterans. 

871.210  Contract clauses. 

• (a) Contracting officers must use the following clauses, as applicable to the benefits program, in solicitations and contracts for vocational rehabilitation and employment services as they pertain to training and rehabilitation services and contracts for counseling services:
  • (1) 852.271-72, Time Spent by Counselee in Counseling Process.
  • (2) 852.271-73, Use and Publication of Counseling Results.
  • (3) 852.271-74, Inspection of Instruction, Counseling or Testing Operations. 
• (b) See 837.110-70(a) for clause 852.237-74, Non-Discrimination in Service Delivery.

Effective Date: October 1, 2026

PART 873—SIMPLIFIED PROCEDURES FOR HEALTH-CARE RESOURCES 

873.101 Policy.
873.102 Definitions.
873.103 Competition requirements.
873.104 Publicizing contract actions.
873.105 General requirements for acquisition of health-care resources.
873.106 Solicitation provisions.
873.107 Acquisition strategies for health-care resources.
873.108 Solicitation submission revisions.
873.109 Award to successful respondent.

Authority: 38 U.S.C. 8127-8128; 38 U.S.C. 8151, 8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304. 

---

PART 873—SIMPLIFIED PROCEDURES FOR HEALTH-CARE RESOURCES 

873.101 Policy. 

• (a) General. In accordance with 38 U.S.C. § 8153, to secure health-care resources which otherwise might not be feasibly available, or to effectively utilize certain other health-care resources, the Department of Veterans Affairs (VA) may make arrangements by contract for the mutual use, or exchange of use, of health-care resources between VA health-care facilities and any health-care provider, or other entity or individual. This part prescribes authority for and simplified procedures for contracts with entities affiliated and not affiliated with VA under 38 U.S.C. § 7302 to secure health-care resources that are a commercial service, or the use of medical equipment or space. VA may enter into such a contract if such resources are not, or would not, used to their maximum effective capacity.
• (b) Simplified Procedures for Procurement of Healthcare Resource. VA contracting officers must abide by the requirements of this part for acquisition of healthcare resources. The procedures in this part must be used in conjunction with the Federal Acquisition Regulation (FAR), the VA Acquisition Regulation (VAAR), and any other VA policies, guidance, or directives. This part takes precedence when there is an inconsistency.

873.102 Definitions.

Health-care providers include health-care plans and insurers and any organizations, institutions, or other entities or individuals who furnish health-care resources.

Health-care resource includes hospital care and medical services (as defined in 38 U.S.C. § 1701 and services under 38 U.S.C. §§ 1782,1783), any other health-care service, and any health-care support or administrative resource.

873.103 Competition requirements.

Competition requirements for affiliated and non-affiliated institutes must comply with VAAR 806.

873.104 Publicizing contract actions.

Publicity for contract actions under this part is governed by VAAR 806.

873.105 General requirements for acquisition of health-care resources.

• (a) Time for receipt of quotations or offers. The contracting officer must set a reasonable time for receipt of quotations or proposals in the solicitations.
• (b) Cancellation of procurements. VA reserves the right to cancel the acquisition at any time, if in the best interest of the Government.

873.106 Solicitation provisions.

• (a) The contracting officer must insert the provision at 852.273-70, Late Quotes or Proposals, in all RFQs and RFPs exceeding the micro-purchase threshold, if late responses are to be considered.
• (b) The contracting officer must insert a provision in RFQs and solicitations, substantially the same as the provision at 852.273-71, Alternative Negotiation Techniques, when alternative negotiation techniques will be used.
• (c) The contracting officer must insert the provision at 852.273-72, Alternative Evaluation, in lieu of FAR provision 52.212-2, Evaluation – Commercial Items, when the alternative negotiation technique described in 873.107(d) (1) will be used.
• (d) The contracting officer must insert the provision at 852.273-73, Evaluation – Health-Care Resources, in the RFQ or RFP in lieu of FAR provision 52.212-2 when simplified evaluation procedures are used.
• (e) The contracting officer must include the provision at 852.273-74, Award Without Negotiations in the RFQ or RFP if award may be made without negotiations.

873.107 Acquisition strategies for health-care resources.

• (a) Request for quotations (RFQ) or Requests for Proposals (RFP). Without regard to the limitations set forth in FAR Parts 12 and 15, simplified procedures in this part may be utilized for the procurement of health-care resources at any dollar value.
• (b) Evaluation-Evaluation factors or other evaluation information that apply to an acquisition, and their relative importance, are within the broad discretion of the CO as long as the evaluation information is determined to be in the best interest of the Government.
• (c) Negotiations-
  • (1) Negotiations need not be conducted with all interested vendors.
  • (2) When establishing a competitive range, the contracting officer may limit the competitive range to a single interested vendor.
  • (3) The Contracting Officer may determine that all proposals should be rejected if it is in the best interest of the Government.
• (d) Alternative negotiation techniques. Contracting officers may utilize alternative negotiation techniques including but are not limited to:
  • (1) Indicating to interested vendor(s) a price, contract term or condition, commercially available feature, and/or requirement (beyond any requirement or target specified in the solicitation) that the interested vendor(s) must improve upon or meet, as appropriate, to remain competitive.
  • (2) Posting offered prices electronically or otherwise (without disclosing the identity of the interested vendor) and permitting revisions of the submitted response based on this information.
• (e) Except for acquisitions based on alternative negotiation techniques, the contracting officer and other Government personnel involved in the acquisition must not disclose information regarding one interested vendor’s proposal to other interested vendor without consent of the interested vendor.

873.108 Solicitation submission revisions.

The contracting officer may request solicitation submission revisions as often as needed during the evaluation phase, and at any time, prior to award.

873.109 Award to successful respondent.

Award may be made for less than all the items submitted in response to the solicitation. VA reserves the right to make award for the additional items at a later time. The solicitation notice must state that VA may make partial and subsequent awards on additional items within the offer acceptance period. If the solicitation notice includes this statement, interested vendors must structure their solicitation submission accordingly to allow for partial and subsequent awards, without negotiations.