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exempted by the Secretary or designee from this policy. (49 FR 12640, Mar. 29, 1984, as amended at 54 FR 40066, Sept. 29, 1989; 63 FR 69223, Dec. 16, 1998)

870.115 Food service equipment.

(a) All new food service equipment purchased for Nutrition and Food Service through other than the Defense General Supply Center (DGSC) sources must meet requirements set forth by the National Sanitation Foundation (NSF).

(b) The contracting officer will accept an affixed NSF label and/or documentation of the certification by NSF from the contractor as evidence that the subject equipment meets sanitation standards issued by the Foundation. (49 FR 12640, Mar. 29, 1984, as amended at 63 FR 69223, Dec. 16, 1998]

870.114-2 Background.

Exposure to asbestos is associated with chronic and debilitating lung disease and cancer. To reduce the health hazard related to the exposure to asbestos, the U.S. Environmental Protection Agency and the U.S. Department of Labor (Occupational Safety and Health Administration) have issued specific regulations on asbestos. Although these regulations do not call for a complete ban on the use of asbestos, they do impose strict requirements on its use, airborne contamination and disposal. 870.1143 Approving authority.

Asbestos products and equipment or materials containing asbestos products shall not be specified nor purchased for ase in the Department of Veterans Affairs if any suitable substitutes are available. If suitable substitutes are not available, specific authorization to purchase and use asbestos products and equipment or materials specifying asbestos products, must be granted by the Secretary or designee. Requests for authorization will be submitted through the Director, Network Program Support (10NB). The following information will be provided:

(a) The name of the product, source of supply, and physical form of asbestos as used in the product or equipment;

(b) A description of use, including purpose, urgency, methodology, qualities, and by whom; and

(c) Safeguards being employed, with particular emphasis on the identification of the asbestos products, and procedures to be taken to prevent airborne contamination and disposal. [49 FR 12640, Mar. 29, 1984, as amended at 54 FR 40066, Sept. 29, 1989; 63 FR 69223, Dec. 16, 1998]

PART 871-LOAN GUARANTY AND

VOCATIONAL REHABILITATION
AND COUNSELING PROGRAMS

Subpart 871.1-Loan Guaranty Program Sec. 871.100 Scope of subpart. 871.101 Policy. 871.102 Authorization for repairs to prop

erties. 871.104 Qualification of bidders. 871.106 Lien waivers. 871.107 Stipulations against liens.

Subpart 871.2—Vocational Rehabilitation

and Counseling Program 871.200 Scope of subpart. 871.201 General. 871.201–1 Requirements for the use of con

tracts. 871.201-2 Requirements when contracts are

not required. 871.201-3 Medical services. 871.201-4 Letter contracts. 871.202 Marking and release of supplies. 871.203 Renewals or supplements to con

tracts. 871.204 Guaranteed payment. 871.205 Proration of charges. 871.206 Other fees and charges. 871.207 Payment of tuition or fees. 871.208 Rehabilitation facilities. 871.209 Records and reports. 871.210 Correspondence courses.

870.1144 Exempted products con

taining asbestos. The Director, Network Program Support (10NB), VA Central Office, is responsible for maintaining a list of products containing asbestos which are

871.211 Information concerning correspond

ence courses.

Subpart 871.3-Education Program

[Reserved]

AUTHORITY: 10 U.S.C. ch. 106, 107, 1606; 38 U.S.C. 501, ch. 30, 31, 32, 35, 36, 37; 40 U.S.C. 486(c).

SOURCE: 49 FR 12641, Mar. 29, 1984, unless otherwise noted.

Subpart 871.1-Loan Guaranty

Program 871.100 Scope of subpart.

This subpart sets forth policy and procedure with respect to the loan guaranty and direct loan programs as it pertains to property management, including the acquisition, management, and disposition of property, real, personal, or mixed, which were secured by loans guaranteed, insured, or made pursuant to Title 38, United States Code. 871.101 Policy.

All acquisitions for the repair and maintenance of VA property acquired under 38 U.S.C. Chapter 37 shall be made in accordance with FAR Parts 14, 15, and 16; (VAAR) 48 CFR Parts 814, 815, and 816; and (VAAR) 48 CFR subpart 871.1.

(AUTHORITY: 10 U.S.C. ch. 106, 107, 1606; 38 U.S.C. 501, ch. 37; 40 U.S.C. 486(c)) (61 FR 20493, May 7, 1996)

to the Under Secretary for Benefits for approval.

(c) During the period when the Department of Veterans Affairs has assumed custody of the property from a holder and prior to its conveyance to the Deparment of Veterans Affairs pursuant to 38 CFR 36.4320, repairs are authorized not in excess of $3,500 when appropriate to make the property ready for sale at an earler date than would otherwise be possible if the repair program was delayed until such time as the Department of Veterans Affairs acquired absolute title. In those cases where the expenditure is known or estimated to exceed $3,500, the request, together with the loan guarantee folder, will be forwarded to the Under Secretary for Benefits for approval.

(d) No repairs may be made to property by the holder when it has continued custody except for emergeny repairs not in excess of $500 unless adequate notice has been given the Director, VA Regional Office. Emergency repairs as applied in this paragraph will be deemed to mean those requiring immediate action to preserve the property from serious damage or to correct a situation imminently dangerous to life or limb, and includes the initial cleanup of the property in order to prevent the risk of damage by fire or vandalism.

(e) An approved management broker may be authorized, at the time a property is assigned, to incur expenses for fuel and utilities or other recurring items which are required to be furnished by the Department of Veterans Affairs to its tenants or are required in the maintenance of the property. Advance blanket authorizations to management brokers will be limited to repairs not in excess of $500 in any transaction, (the management broker will either submit receipts with the invoice or maintain such receipts for inspection). Expenditures in excess of $500 require prior approval of the Director, Regional Office, having jurisdiction of the property. Repair jobs may not be split to circumvent this restriction. [49 FR 12641, Mar. 29, 1984, as amended at 55 FR 31600, Aug. 3, 1990; 61 FR 20493, 20494. May 7, 1996; 63 FR 69223, Dec. 16, 1998]

871.102 Authorization for repairs to

properties. (a) Except as provided in this subpart, Directors, Loan Guaranty Officers, and Assistant Loan Guaranty Officers, VA Regional Offices, are authorized to approve a repair program for any Department of Veterans Affairs property acquired under Chapter 37, Title 38, United States Code, where the cost does not exceed $25,000. A repair program means the aggregate amount of the proposed contracts which are contemplated in a property analysis by the Loan Guaranty activity.

(b) In those cases where the expenditure is known or estimated to exceed $25,000, the request, together with the loan guaranty folder, will be forwarded

871.104 Qualification of bidders

in an amount less than $2,500 may con

tain the following: (a) Qualification of bidders shall be established in accordance with proce The contractor expressly waives any and dures outlined in FAR Subpart 9.1 and all rights to file or maintain any mechanics subpart 809.1 of this chapter.

lien or claim against the aforesaid premises. (b) Management brokers are not con- (b) Contracts in the amount of $2,500 sidered acceptable bidders for repair or more where there is doubt as to the contracts due to their close association final responsibility of the contractor on a fee basis with the Department of will provide maximum potection to the Veterans Affairs. This restriction Government by including such requirewould apply equally to any contracting ments as are available under local law. firm in which the management broker Advice and approval of any contract has an interest and in which it could be stipulation or legal stipulations presumed that such firm would have an against liens will be obtained from the advantage over the other bidders. This District Counsel. does not preclude the performance of work by management brokers of a rou

Subpart 871.2-Vocational Rehatine recurring maintenance category or

bilitation and Counseling Prominor repairs by personnel employed directly on the payroll of the broker.

gram In these cases, it must be established

871.200 Scope of subpart. that any charges for such services are not in excess of the prevailing fees for This subpart establishes policy and like services in the area.

procedures for the vocational rehabili

tation and counseling program as it 871.106 Lien waivers.

pertains to contracts for training and

rehabilitation services, approval of in(a) Contracts in the amount of $2,500

stitutions (including rehabilitation faor more will contain a requirement that the contractor will sign a formal

cilities), training establishments, and

employers under 38 U.S.C. Chapter 31, release in full or a lien waiver before payment may be made. The release or

and contracts for counseling services waiver will accompany the contractor's

under 38 U.S.C. Chapters 30, 31, 32, 35, invoice.

and 36 and 10 U.S.C. Chapters 106, 107,

and 1606. (b) Contractors will be required to notify the Director, Regional Office, of

(AUTHORITY: 10 U.S.C. ch. 106, 107, 1606; 38 any subcontractors for services or ma

U.S.C. 501, ch. 30, 31, 32, 35, 36; 40 U.S.C. terials in excess of $2,500. Such sub

486(c)) contractors will be required to sign the (61 FR 20494, May 7, 1996] release or waiver jointly with the prime contractor or to execute release

871.201 General. or waiver in the subcontractor's own

871.201-1 Requirements for the use of name.

contracts. (c) Prior to any authorized partial payment the contractor will be re

Contracts will be negotiated for tuiquired to execute a release or waiver.

tion, fees, books, supplies and other al(d) Due to the variations of local law,

lowable expenses incurred by the instino standard release or waiver is pre

tution, training establishment or emscribed. Each release or waiver will be

ployer for the training and rehabilitaprepared in accordance with local law

tion of eligible veterans under Chapter and will be in form acceptable by the

31, Title 38, United States Code, under District Counsel.

the following conditions:

(a) With institutions offering courses (49FR 12641, Mar. 29, 1984, as amended at 61 of instruction by correspondence. FR 20494, May 7, 1996)

Courses of instruction by correspond

ence is deemed to mean a course of 871.107 Stipulations against liens.

education or training conducted by (a) Where determined necessary by mail consisting of regular lessons or the Director, Regional Office, contracts reading assignments, the preparation

of required written work which in- 871.201-3 Medical services. volves the application of principles

The medical services provided trainstudied in each lesson, the correction of assigned work with such suggestions

ees under vocational rehabilitation and or recommendation as may be nec

education contracts, agreements, or aressary to instruct the student, the

rangements are separate and distinct keeping of student achievement

from any other medical service under records and issuance of a diploma, cer

the jurisdiction of the Veterans Health tificate, or other evidence to the stu

Administration to which the veteran dent upon satisfactorily completing

may be entitled and no certificate of the requirements of the course.

eligibility is required from that admin(b) With institutions, training estab istration. lishments, employers, or individuals

(49 FR 12641, Mar. 29, 1984, as amended at 54 approved to provide training and reha

FR 40066, Sept. 29, 1989; 61 FR 20494, May 7, bilitation services under Chapter 31,

1996] Title 38, United States Code, for whom special services or special courses are 871.201-4 Letter contracts. furnished at the request of the Depart

Letter contracts are authorized for ment of Veterans Affairs. The terms

use in accordance with the provision of "special services" or "special courses"

FAR 16.603 and in those cases in which have the same meaning as under 831.7001–2.

it is not possible to complete a formal

contract with an approved educational [49 FR 12641, Mar. 29, 1984; 50 FR 798, Jan. 7, institution prior to the enrollment of 1985]

eligible veterans for training. 871.201-2 Requirements when con- 871.202 Marking and release of suptracts are not required.

plies. (a) When a contract is not required, a

Supplies will not be marked to indisigned statement of charges will be ob

cate ownership by the United States tained from the educational institution

and will be deemed released to the or training establishment for courses

trainee at the time they are furnished. to be offered, including the rate of tuition, fees, and separate charges, if any,

871.203 Renewals or supplements to for books, supplies, and equipment han

contracts. dling charges, refund policy and such

Except for contracts for educational other provisions as are required to determine proper payment. The state

and vocational counseling, contracts ment of charges may be in the form of

may be renewed from year to year, proa statement on VA Form 22–1905, Au

viding there is no change in the schedthorization and Certification of En

ule or provisions as originally contrance or Reentrance into Training,

summated by completion of a renewal that charges will be in accordance with agreement no later than 30 days prior catalog or other published document to the expiration of the contract. (identify publication). The statement (a) Supplements may be negotiated of charges may not exceed those at any time during the contract period charges paid by nonveterans or that is upon the completion of the supplepublished in the school catalog or mental agreement. other published document.

(b) Contracts for educational and vo(b) For the purpose of this section a cational counseling may provide for contract will not be required when all automatic extension from year to year. tuition, fees, books, supplies, or services necessary to train, or educate an 871.204 Guaranteed payment. eligible veteran under Chapter 31, Title

No contract or agreement may be en38, United States Code, are published in

tered into with any institution or the school catalog or other published

training establishment whereby the document.

Department of Veterans Affairs will be [49 FR 12641, Mar. 29, 1984; 50 FR 798, Jan. 7, required to pay a minimum charge, or 1985)

required to enroll a minimum number

of participants per quarter, semester, term, course, or other period. [49 FR 12641, Mar. 29, 1984; 50 FR 798, Jan. 7, 1985)

871.205 Proration of charges.

The contract will include the exact formula agreed on for the proration of charges in the event that the veteran's program is interrupted or discontinued prior to 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.

Fees and other charges which are not prescribed by law but are 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 Chapter 31 participant, may be paid provided there are no facilities feasibly available whereby the necessary training can be feasibly accomplished or employment obtained without paying such charges. Payment for such fees will be made in accordance with part 813. (49 FR 12641, Mar. 29, 1984, as amended at 54 FR 40066, Sept. 29, 1989)

tional or regional educational accrediting associations, and those which, although not members of such accrediting associations, grant standard units of credit acceptable at full value without examination by collegiate institutions which are members of national or regional accrediting associations).

(ii) Public tax supported institutions.

(iii) Institutions operated and controlled by State, county, or local boards of education.

(2) Institutions coming within the exceptions of paragraph (a)(1) of this section which have a refund policy providing for a graduated scale of charges for purposes of determining refunds may be paid part or all such tuitions or fees for a term, quarter, or other period of enrollment immediately following the date on which the refund expires.

(3) Proration of charges will not apply to a fee which is for noncontinuing service such as registration fee, etc.

(b) The period for which payment of charges may be made will be the period of actual enrollment and subject to the following:

(1) The effective date will be 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 will not set a date acceptable to the Department of Veterans Affairs, payment may be prorated on the basis of attendance regardless of the refund policy.

(3) If an institution customarily charges for the amount of 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.

(c) The terminal date to which payment will be made is the day following:

(1) The end of the semester, term or quarter during which the training is furnished.

(2) The date of interruption or discontinuance of training.

871.207 Payment of tuition or fees.

(a) Contracts, agreements, or arrangements requiring the payment of tuition or fees will provide for the following:

(1) Payment for tuition or fees will be made in arrears and will be prorated in installments over the school year or the length of the course except that institutions may be paid in accordance with the provision of paragraph (a)(2) of this section, provided such institutions operate on a regular term, quarter, or semester basis and normally accept students only at the beginning of the term, quarter, or semester and provided for further such institutions are either:

(i) Institutions of higher learning that use a standard unit of credit recognized by accrediting associations (such institutions will include those which are members of recognized na

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