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research or medical research or development as authorized by 38 U.S.C. 216 and 4101.

(b) The authority to indemnify the contractor under this subpart does not create any rights to third parties which would not otherwise exist by law.

(c) As used in this subpart the term “contractor" includes subcontractors of any tier under a contract in which an indemnification provision pursuant to 38 U.S.C. 216(b)(1) is contained.

tractor for death, bodily injury, or loss or damage to property; and

(2) Control of or assistance in the defense by the Government, at its election of any suit or claim for which indemnification is provided in the contract.

§ 8-10.5101 General.

(a) The approval for the indemnification of contractors will be made by the Administrator of Veterans Affairs.

(b) Contracting officers shall submit requests for approval, together with all available information, to the Chief Medical Director (134) for transmittal to the Administrator.

& 8-10.5103 Financial protection.

(a) The financial protection to cover liability to third persons and loss of or damage to the contractor's property which the contractor is required to have and maintain will normally be the maximum amount available from private sources; however, the Administrator may establish a lesser amount after taking into consideration the cost and terms of private insurance.

(b) The financial protection may include private insurance, private contractual indemnities, self-insurance other proof of financial responsibility or a combination of such forms to provide the maximum amount required. When the contractor elects to utilize self-insurance, proof of such financial responsibility up to the maximum amount required will be furnished the contracting officer prior to award.



Sec. 8-11.000 Scope of part.

Subpart 8-11.2—Exemptions from Federal

Excise Taxes

8 8-10.5102 Extent of indemnification.

(a) Any contract for research authorized by 38 U.S.C. 216 or medical research or development by 38 U.S.C. 4101, the performance of which involves a risk of an unusually hazardous nature, may provide that the Government will indemnify the contractor against either or both of the following, but only to the extent that they arise out of the direct performance of the contract and to the extent not covered by the financial protection required under $ 8-10.5103.

(1) Liability (including reasonable expenses of litigation or settlement) to third persons, except liability under State or Federal Workman's Compensation Acts to employees of the contractor employed at the site of and in connection with the contract for which indemnification is granted for death, bodily injury, or loss of or damage to property, from a risk that the contract defines as unusually hazardous.

(2) Loss of or damage to property of the contractor from a risk that the contract defines as unusually hazardous.

(b) A contract that provides for indemnification in accordance with this subpart will also provide for:

(1) Notice to the contracting officer of any claim or suit against the con

8-11.203 Supplies and services for the ex

clusive use of the United States. 8-11.250 Tax exempt tobacco products for

State institutions. 8-11.250-1 General. 8-11.250-2 Institution responsibilities. 8-11.250-3 Institution ordering procedures. 8-11.250-4 Processing of order by Veterans

Administration. 8-11.251 Tax exemptions for alcohol prod


Subpart 8-11.5—Tax Exemption Forms

8-11.501 Federal excise tax exemption

forms. 8-11.502 State and local tax exemption

forms. 8-11.502-1 (Reserved] 8-11.502-2 When evidence of exemption is

to be furnished.

AUTHORITY: 72 Stat. 1114, sec. 205(c), 63 Stat. 390; 38 U.S.C. 210, 40 U.S.C. 486(c).

§ 8-11.000 Scope of part.

The problems presented in connection with the administration of tax aspects of a contract or transaction are widely varied. These problems are essentially legal; therefore, when questions arise, the Contracting Officer will request, through channels, legal advice from the General Counsel.

the Veterans Administration in the purchase, storage, and distribution of these products.

(b) The product must be distributed on a gratuitous and equitable basis to all eligible recipients. Under no circumstances will these items be offered for sale.

(c) The Veterans Administration will neither accept nor handle donations or funds for institutions.

(d) Payment or nonpayment of State taxes on tobacco products is a matter between the concerned State and the institution.

(e) Copies of all orders and other pertinent documents will be retained and be available to the Veterans Administration and the Bureau of Alcohol, Tobacco, and Firearms for inspection purposes. (31 FR 16312, Dec. 21, 1966, as amended at 45 FR 9266, Feb. 12, 1980]

(30 FR 4676, Apr. 10, 1965)

Subpart 8-11.2-Exemptions from

Federal Excise Taxes

§ 8-11.203 Supplies and services for the

exclusive use of the United States. The Veterans Administration is exempt from the Federal excise taxes imposed on tobacco and alcohol products when such items are purchased from factories and bonded warehouses by the Veterans Administration for use in its medical care program. (45 FR 9266, Feb. 12, 1980)

8 8-11.250 Tax exempt tobacco products

for State institutions. (45 FR 9266, Feb. 12, 1980)

8 8-11.250-1 General.

Bureau of Alcohol, Tobacco, and Firearms regulations (27 CFR 295.3137) permit the withdrawal of tax-free tobacco products by facilities and institutions owned or controlled by the Government of each of the several States, territories and the District of Columbia for gratuitous distribution to present and former members of the Armed Forces of the United States who are patients in such institutions. These arrangements will be effective only with institutions where the official-in-charge abides by the procedures and controls prescribed by the Veterans Administration. The unauthorized or illegal use of these products may result in the withdrawal of this privilege by the Veterans Administration. [45 FR 9266, Feb. 12, 1980)

& 8-11.250-3 Institution ordering proce

dures. Orders will be on the institution's regular order form made out to the manufacturer of the desired product. The original and two copies of the order, all signed, will be forwarded to the nearest Veterans Administration medical center. Orders shall be issued as shown in this § 8-11.250-3 to cover receipt of unsolicited shipments of these products intended for use of veteran-patients. All copies of these orders will be marked CONFIRMATION-DO NOT RESHIP. All orders shall bear a certificate as follows:

Tobacco products for free distribution to present and former members of the Armed Forces of the United States who are hospitalized or domiciled in this institution. [45 FR 9266, Feb. 12, 1980)

8 8-11.250-4 Processing of order by Veter.

ans Administration. (a) The station head (or designee) will approve the order by signing the original and one copy in ink over his/ her stamped or typed name and title. The approved original and copy shall be forwarded to the vendors, as noted in $ 8-11.501. (The copy is for retention at the shipping factory for review by the Bureau of Alcohol, Tobacco, and Firearms.) The additional copy

$ 8-11.250-2 Institution responsibilities.

(a) The official-in-charge of the institution will act as a representative of

shall be retained in the medical center's files.

(b) Full cooperation will be given institution representatives in implementing these procedures. (31 FR 16312, Dec. 21, 1966, as amended at 45 FR 9266, Feb. 12, 1980)

8 8-11.251 Tax exemptions for alcohol

products. The withdrawal of spirits free of tax for nonbeverage purposes is permitted to Governmental agencies by regulations of the Bureau of Alcohol, Tobacco, and

Firearms. (See 27 CFR 201.389-394, 211.231-237, 213.141-146, and 240.720-722.) The use of tax-free alcohol, whiskey, beer, wine, and denatured spirits for nonbeverage purposes shall include but not be limited to medicinal, mechanical, and scientific purposes and in the treatment of patients. Provisions for tax-free procurement are provided in § 8-1.501. [45 FR 9266, Feb. 12, 1980)

Subpart 8-11.5—Tax Exemption


(whiskey and alcohol). These are continuing permits to procure items tax free and they must be made available to the supplier in support of each procurement. Purchases for excise taxfree whiskey and alcohol, not available through the depots, can only be made from a distillery or a bonded premises. In accordance with 27 CFR 213.144, the vendor will also support each shipment with AFT 1473, Shipment and Receipt Specially Denatured TaxFree, or Recovered Spirits. The ATF 1473 will be completed by the accountable officer and the original copy will be forwarded to the Regional Regulatory Administrator whose address is shown in item 12 of the form. A copy of ATF 1473 will be retained in the purchase order file.

(c) Beer procured from licensed breweries. The contracting officers specified in paragraph (b) of this section are hereby authorized to sign application permits to procure from licensed breweries, alcohol (beer) tax free, when such product is prescribed for therapeutic use of patients. The applications, in letter form, shall be submitted to the Director, Bureau of Alcohol, Tobacco, and Firearms, Washington, D.C. 20226 and contain the following information:

(1) Name and address of facility.

(2) Specific purpose for which it will be used.

(3) Quantity proposed to buy each month, year, etc.

(4) Name and address of the brewery.

(5) Copy of document authorizing contracting officer to sign request.

A new permit is needed only when beer is to be purchased from a different brewery than the one for which the original permit was requested.

(d) Wine. No tax exemption form or ATF permit is required for the taxfree procurement of wine. An extra copy of a properly executed purchase order or requisition document may be furnished to the supplier to facilitate record keeping. [45 FR 9266, Feb. 12, 1980)

8 8-11.501 Federal excise tax exemption

forms. (a) Tobacco products. No tax exemption form or certificate is required for the tax-free purchase of tobacco products. An extra copy of the purchase order will be provided the manufacturer to facilitate recordkeeping.

(b) Whiskey, alcohol, specially denatured alcohol. Authority is hereby delegated to the Chief, Marketing Division for Drugs and Chemicals, Veterans Administration Marketing Center, Hines, Ill., and to the Chiefs, Supply Service, Veterans Administration med. ical facilities, to sign applications for permits on Bureau of Alcohol, Tobacco, and Firearms prescribed forms. This authority is not to be redelegated. Application forms will be obtained from and submitted to the Director, Bureau of Alcohol, Tobacco, and Firearms, Washington, D.C. 20226. ATF Form 1486, Specially Denatured Spirits for Use of United States, is the application/permit required for specially denatured spirits, and AFT Form 1444, Tax-Free Spirits for Use of United States, is required for distilled spirits

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AUTHORITY: Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 486(c); sec. 210(c), 72 Stat. 1114, 38 U.S.C. 210 (c).

88-11.502-1 (Reserved)

Subpart 8-12.3—Contract Work Hours

and Safety Standards Act (Other
Than Construction Contracts)

88-11.502-2 When evidence of exemption

is to be furnished. (a) SF 1094, U.S. Government Tax Exemption Certificate, will be furnished the vendor to claim exemption from payment of State and local taxes when the purchase price excludes such taxes. This form will be used by the U.S. Government as the basis for billing taxing authorities for refund of taxes paid, when the vendor refuses to sell at a price exclusive of such taxes.

(b) SF 1094 will not be furnished the vendor or used by the United States Government to claim reimbursement from the taxing authority, where the total amount of tax (State or local), on any one purchase is $10 or less. (45 FR 9267, Feb. 12, 1980)


8 8-12.304 Variations and tolerances.

When a contract is for nursing home care, the clause prescribed by FPR 112.303 will be modified to reflect the variation set forth in

29 CFR 5.14(d)(3) as follows: “In the performance of any contract entered into pursuant to the provisions of 38 U.S.C. 620 to provide nursing home care of veterans, no contractor or subcontractor under such contract shall be deemed in violation of section 102 of the Contract Work Hours and Safety Standards Act by virtue of failure to pay the overtime wages required by such section for work in excess of 8 hours in any calendar day or 40 hours in the workweek to any individual employed by an establishment which is an institution primarily engaged in the care of the sick, the aged, or the mentally ill or defective who reside on the premises if, pursuant to an agreement or understanding arrived at between the employer and the employee before performance of the work, a work period of 14 consecutive days is accepted in lieu of the workweek of 7 consecutive days for the purpose of overtime compensation and if such insividual receives 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 142 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.” (43 FR 45363, Oct. 2, 1978)

Subpart 8-12.3—Contract Work Hours and

Safety Standards Act (Other Than Construction Contracts)

8-12.304 Variations and tolerances.

Subpart 8–12.8—Equal Opportunity in

Employment 8-12.800 Scope of subpart. 8-12.803 Basic requirements. 8-12.803-2 Equal Opportunity clause. 8-12.805 Administration. 8-12.805-1 Duties of agencies. 8-12.805-2 Educational responsibility. 8-12.805-4 Reports and other required in

formation. 8-12.805-5 Compliance reviews. 8-12.805-6 Complaints. 8-12.805-8 Assumption of jurisdiction by or

referrals to the Director. 8-12.805-9 Sanctions and penalties. 8-12.805-10 Disputed matters related to

the equal opportunity program.
8-12.805-11 Preaward notices.
8-12.807 Hearings.
8-12.807-1 General.
8-12.809 Intimidation and interference.
8-12.810 Affirmative action compliance

8-12.810-50 Philadelphia and other plans.
8-12.812 Rulings and interpretations.
8-12.813 Solicitations or advertisements for


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rules and regulations of the Secretary of Labor with respect to the Equal Employment Opportunity Program enunciated in Executive Orders 11246 (30 FR 12319) and 11375 (32 FR 14303). This Subpart 8-12.8 implements and supplements the provisions of FPR 1-12.8 and establishes the policies and procedures of the Veterans Administration with respect to the Equal Opportunity Program in Government contracts.

§ 8-12.803 Basic requirements.

8 8–12.803–2 Equal Opportunity clause.

The words “race, color, religion, sex, or national origin” will be used in lieu of the words “race, creed, color, or national origin” wherever they appear in the Equal Opportunity clause (FPR 112.803-2).

8 8-12.805 Administration.

8 8-12.805-1 Duties of agencies.

(a) The Director, Contract Compliance Service, Central Office is the VACCO (Veterans Administration Contract Compliance Officer). He is responsible for developing, causing to be published in this Chapter 8, Title 41, Code of Federal Regulations, and enforcing the Veterans Administration program and procedures necessary to carry out the provisions of the Executive orders and directives of the Director, Office of Federal Contract Compliance (OFCC), dealing with this program.

(b) Prior to awarding a nonexempt supply or service (excluding construction) contract ($10,000 or more), the contracting officer will, not less than 10 days prior to the date on which an award must be made, submit to the VACCO (09) by teletype the following:

(1) Name and complete address of the apparent low bidder.

(2) Name of the official signing bid or proposal.

(3) Date on which the bidder's or offeror's proposal will expire.

(4) Amount of the contract.

(5) Brief description of goods or services to be provided.

(6) Number of employees of bidder.

(7) Facility where contract work will be performed.

(8) Standard Industrial Classification Code of production facility.

(9) Prior Federal contracts held by bidder (agency, amount of contract, date of award) since July 1, 1968.

(10) Has bidder filed all compliance reports required by Executive Orders 10925, 11114 and 11246.

(11) Has bidder certified that he has no segregated facilities.

(12) In case bidder has 50 or more employees and the contract is for $50,000 or more, has the bidder developed written affirmative action programs (EEO) for each of his establishments.

(1 If this is initial Federal cor ct for bidder who has 50 or more employees and the contract for $50,000 or more, does the bidder agree to develop written affirmative action programs (EEO) for each of his establishments within 120 days of contract award.

(14) Date Equal Employment Opportunity clearance is required.

NOTE: Thirty days' advance request is required for contracts for supplies in case of contracts in excess of $1 million; as early notice as possible, and not less than 10 days where possible in all other cases.

(15) Names and addresses of identified subcontractors.

(c) On receipt of the information in paragraph (b) of this section, the VACCO will:

(1) Advise the contracting officer that the evidence available to him indicates that the apparent low bidder or offeror and his subcontractor(s), if any, can comply with the Equal Opportunity clause in the plants specified in the proposed contract and that a contract may be awarded. The teletype submitted by the contracting officer will be stamped "Awardable” and returned; or

(2) Furnish the contracting officer a teletype listing the deficiencies in the proposed contractor's or subcontractor's equal opportunity compliance status which must be corrected prior to an award.

(d) The contracting officer, on receipt of advice from the VACCO, will advise the prospective contractor in writing that:

(1) The award is being made; or

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