(a) The Assistant Secretary-Policy, Budget and Administration shall make the determinations prescribed in FAR 25.202(a)(2) and FAR 25.203(a).

(b) The Director, Office of Acquisition and Property Management shall make the determination prescribed in FAR 25.202(a)(3) in accordance with the procedures in 1425.108.

(c) Determinations under paragraph (a) of this section shall be prepared by the contracting officer and submitted by the head of the contracting activity to the Director, Office of Acquisition and Property Management for further action.

(d) Determinations approved under FAR 25.202(a)(2) shall require listing of excepted material in the contract as prescribed in FAR 25.202(c).

1425.203 Evaluating offers.

(a) Unless the Assistant SecretaryPolicy, Budget and Administration determines otherwise, when the cost of a comparable domestic construction material exceeds by more than 6 percent the cost of a foreign construction material proposed in an offer, use of the domestic construction material would unreasonably increase the cost of the contract and use of the foreign construction material is authorized and acceptable. This evaluation shall be made for each foreign construction material proposed in an offer and not specifically excepted by the solicitation. The cost of construction material shall be computed to include all delivery costs to the construction site, and the cost of foreign construction material shall also include any applicable duty (whether or not a duty-free entry certificate may be issued).

(b) The provision at 1452.225–70, Buy American Act Notice—Department of the Interior, requires offerors proposing to use foreign construction materials to provide adequate information for Government evaluation under paragraph (a) of this section, and permits alternate offers for comparable domestic construction materials at stated prices. When a foreign construction material is not authorized under paragraph (a) of this section, evaluation of the offer shall be made on the basis of the stated price for comparable domestic construction material. If the offer does not state a price for comparable domestic construction material, and use of the foreign construction material is not authorized under paragraph (a) of this section, the offer shall be rejected.

(c) The acceptable offer that remains low after adding (for evaluation purposes only) 6 percent of the cost of all foreign construction materials authorized for use under paragraph (a) of this section shall be considered the successful offer. The contract awarded under these circumstances shall contain a list of the authorized foreign

construction materials as required by FAR 25.202(c) and the clause at FAR 52.225-5, Buy American Act-Construction Materials.

(d) Determinations for authorization to use evaluation methods other than those prescribed in this section shall be prepared by the contracting officer and submitted by the head of the contracting activity to the Director, Office of Acquisition and Property Management for further action. The determination shall specify particular domestic construction materials which are expected to unreasonably increase the cost or are impracticable, and the percentage differential to be used in evaluating such materials. If the determination is approved, the Director, Office of Acquisition and Property Management shall authorize appropriate revisions to the provision at 1452.225-70.

1425.204 Violations.

Failure of the contractor to comply with the clause at FAR 52.225-5, Buy American Act-Construction Materials, shall be documented in a report by the contracting officer and submitted to the head of the contracting activity for initiation of debarment action in accordance with Subpart 1409.4.

1425.205 Solicitation provision.

In addition to the requirements of FAR 25.205, the contracting officer shall insert the provision at 1452.22570, Buy American Act Notice Department of the Interior, in solicitations for construction inside the United States. For determinations made under FAR 25.202(a)(2) that use of a domestic construction material would be impracticable (see 1425.202), the material shall be listed under paragraph (a) of the provision at 1452.22570.

1428.101-70 Annual bid bonds.

1428.104 Annual performance bonds.

Subpart 1428.1-Bonds

1428.101 Bid guarantees. 1428.101-70 Annual bid bonds.

(a) Bidders shall submit annual bid bonds to the Office of Acquisition and Property Management, Office of the Secretary, U.S. Department of the Interior, Washington, DC 20240.

(b) The Office of Acquisition and Property Management will maintain and disseminate all information regarding annual bid bonds.

1428.104 Annual performance bonds.

Annual performance bonds shall be submitted to the location prescribed in 1428.101-70.

Subpart 1428.3-Insurance 1428.301 Policy.

It is the policy of the Department of the Interior to insure its own risks only when such action is in the best interest of the Government. Circumstances where contractors are required to carry insurance are listed under FAR 28.301 and 28.306. In these circumstances, the clause at 1452.228-70, Liability Insurance-Department of

the Interior, shall be inserted in the contract.

[49 FR 14264, Apr. 10, 1984, as amended at 51 FR 41966, Nov. 20, 1986]

1428.306 Insurance under fixed-price contracts.

1428.306-70 Insurance for aircraft services contracts.

(a) Policy. In accordance with FAR 28.306(a), it is the policy of the Department of the Interior to establish minimum insurance requirements for certain types of aircraft services contracts in order to protect the Government and its contractors.

(b) Applicability. The clauses prescribed by paragraph (c) of this section are applicable to all fixed-price contracts involving use of aircraft with either contractor-furnished or Government-furnished pilot except for onetime charters when Government exposure is minimal and time limitations are present.

(c) Clauses. The following clauses shall be used as prescribed:

(1) The contracting officer shall insert the clause at 1452.228-71, Aircraft and General Liability Insurance-Department of the Interior, in all fixed-price contracts for operation of aircraft with contractor-furnished pilot.

(2) The contracting officer shall insert the clause at 1452.228-72, Liability for Loss or Damage-Department of the Interior, in all fixed-price contracts involving the use of aircraft with Government-furnished pilot where the Government does not have a property interest in the aircraft.

(3) The contracting officer shall insert the clause at 1452.228-73, Liability for Loss or Damage-Department of the Interior, (Property Interest), in all fixed-price controls involving the use of aircraft with Government-furnished pilot where the Government has a property interest in the aircraft (e.g., lease with purchase option).

[49 FR 14264, Apr. 10, 1984, as amended at 54 FR 10989, Mar. 16, 1989]

1432. 404, the Chief, Division of Acquisition and Grants, Office of Acquisition and Property Management, is authorized to approve findings and determinations and contract terms for advance payments as prescribed in FAR Subpart 32.4.

(b) The Assistant Secretary for Indian Affairs is authorized to approve findings and determinations and contract terms for advance payments as prescribed in FAR Subpart 32.4 for

(1) Contracts with States or similar public bodies for foster home care of Indian children for periods not in excess of 90 days;

(2) Contracts with state universities or similar public bodies for surveys of physical resources and the development of studies of social and economic factors affecting Indian tribes without specific security for periods not in excess of 90 days; or

(3) Contracts with Indian tribal contractors which are totally Indianowned and controlled nonprofit businesses and which qualify for contracts with the Bureau of Indian Affairs. The amount of the advance payments authorized shall not exceed $250,000.

(c) The contracting officer shall review and analyze the contractor's application for advance payments to determine if it meets the information requirements of FAR 32.408. Applications which do not contain the required information shall not be processed until it is obtained from the contractor.

(d) The contracting officer shall submit a recommendation for approval or disapproval of the contractor's request through the head of the bureau finance office (see FAR 32.402(e)(2)) to the head of the contracting activity for transmittal to the Chief, Division of Acquisition and Grants under paragraph (a) above. Recommendations which do not contain the information required by FAR 32.409-1 or FAR 32.409-2 will not be processed by the Division of Acquisition and Grants.

(e) The Assistant Secretary for Indian Affairs is required to make a detailed report to the Assistant Secretary-Policy, Budget and Administration on all advance payments authorized under paragraphs (b)(1) and

1433.104 Protests to the GAO.

(a) General. A protestor shall furnish a copy of its complete protest simultaneously to the officials designated in the provision at 1452.233-2, Service of Protest, as prescribed in 1433.106.

(b) Notice of protest. Upon being telephonically advised by the GAO of the receipt of a protest before or after award, the Office of the Solicitor shall inform the appropriate contracting activity which shall immediately notify the contracting officer and request preparation of the protest report required by FAR 33.104(a)(2). For protests concerning ADP acquisitions, the Office of the Solicitor shall also inform the Director, Office of Information Resources Management, who, in turn, shall notify the appropriate bureau Information Resources Management (IRM) contact and GSA official. As required by FAR 33.104(a)(3) and 4 CFR 21.3, the contracting officer shall promptly notify all interested parties, including offerors (or the contractor if the protest is after award) involved in or affected by the protest, that a protest has been filed with the GAO and the basis for the protest. A written record of such notification shall be placed in the contract file. After receiving a copy of the protest