SUBPART 239.74--TELECOMMUNICATIONS SERVICES
239.7400 Scope.
239.7401 Definitions.
239.7402 Policy.
239.7403 Regulatory bodies.
239.7404 Foreign carriers.
239.7405 Multiyear contracting
authority for telecommunications resources.
239.7406 Cost or pricing data
and information other than cost or pricing data.
239.7407 Type of contract.
239.7407-1 General.
239.7407-2 Communication
service authorizations (CSAs).
239.7408 Special construction.
239.7408-1 General.
239.7408-2 Applicability of
construction labor standards for special construction.
239.7409 Special assembly.
239.7410 Cancellation and
termination.
239.7411 Contract clauses.
239.7400 Scope.
This subpart prescribes
policy and procedures for acquisition of telecommunications services and
maintenance of telecommunications security.
Telecommunications services may also meet the definition of information
technology.
239.7401 Definitions.
As used in this subpart—
(a) “Common carrier”
means any entity engaged in the business of providing telecommunications
services which are regulated by the Federal Communications Commission or other
governmental body.
(b) “Foreign carrier”
means any person, partnership, association, joint-stock company, trust,
governmental body, or corporation not subject to regulation by a U.S.
governmental regulatory body and not doing business as a citizen of the United
States, providing telecommunications services outside the territorial limits of
the United States.
(c) “Governmental
regulatory body” means the Federal Communications Commission, any statewide
regulatory body, or any body with less than statewide jurisdiction when
operating under the State authority.
The following are not “governmental regulatory bodies”—
(1) Regulatory bodies whose decisions are not
subject to judicial appeal; and
(2) Regulatory bodies which regulate a company
owned by the same entity which creates the regulatory body.
(d) “Noncommon carrier”
means any entity other than a common carrier offering telecommunications
facilities, services, or equipment for lease.
(e) “Security,” “sensitive
information,” and “telecommunications systems” have the meaning given in the
clause at 252.239-7016, Telecommunications Security Equipment, Devices,
Techniques, and Services.
(f) “Telecommunications”
means the transmission, emission, or reception of signals, signs, writing, images,
sounds, or intelligence of any nature, by wire, cable, satellite, fiber optics,
laser, radio, or any other electronic, electric, electromagnetic, or
acoustically coupled means.
(g) “Telecommunications
services” means the services acquired, whether by lease or contract, to meet
the Government's telecommunications needs.
The term includes the telecommunications facilities and equipment
necessary to provide such services.
239.7402 Policy.
(a) Acquisition.
(1) DoD policy is to acquire telecommunications
services from common and noncommon telecommunications carriers—
(i) On a competitive basis, except when
acquisition using other than full and open competition is justified.
(ii)
Recognizing the regulations, practices, and decisions of the Federal
Communications Commission (FCC) and other governmental regulatory bodies on
rates, cost principles, and accounting practices;
(iii) Making provision in telecommunications services contracts for adoption of—
(A)
FCC approved practices; or
(B)
The generally accepted practices of the industry on those issues
concerning common carrier services where—
(1)
The governmental regulatory body has not expressed itself;
(2)
The governmental regulatory body has declined jurisdiction; or
(3) There is no governmental regulatory body to
decide.
(2) DoD's unique consumer needs in both volume
and technology require DoD to participate actively in the rule making process
of cognizant governmental regulatory bodies.
DoD also must work with the government regulatory bodies and common
carriers to be sure that in those areas in which the FCC cannot or will not
rule, sound regulatory practices are followed.
DoD should make every effort to avoid the time and expense of litigation
by full and fair disclosure of both the carrier's and the DoD's position in
advance.
(3) If actions do not produce reasonable or
lawful rates, or when there is a refusal to provide required services or file
appropriate tariffs, DoD should litigate.
All contracts with the regulatory bodies should be through counsel under
department/
agency and Defense Information Systems Agency procedures.
(b) Security.
(1) The contracting officer shall ensure, in
accordance with agency procedures, that purchase requests identify—
(i) The nature and extent of information
requiring security during telecommunications;
(ii)
The requirement for the contractor to secure telecommunications systems;
(iii)
The telecommunications security equipment, devices, techniques, or
services with which the contractor's telecommunications security equipment,
devices, techniques, or services must be interoperable; and
(iv)
The approved telecommunications security equipment, devices, techniques,
or services, such as found in the National Security Agency's Information
Systems Security Products and Services Catalogue.
(2) Contractors and subcontractors shall provide
all telecommunications security techniques or services required for performance
of Government contracts.
(3) Except as provided in paragraph (b)(4) of
this subsection, contractors and subcontractors shall normally provide all
required telecommunications security equipment or devices as plant equipment in
accordance with FAR Part 45. In some
cases, such as for communications security (COMSEC) equipment designated as
controlled cryptographic item (CCI), contractors or subcontractors must also
meet ownership eligibility conditions.
(4) When the contractor or subcontractor does
not meet ownership eligibility conditions, the head of the agency may authorize
provision of the necessary facilities as Government-furnished property or
acquisition as contractor-acquired property, as long as conditions of FAR
45.303 are met.
239.7403 Regulatory bodies.
The FCC and other
governmental regulatory bodies publish rules and regulations on the operations
of common carriers and prescribe accounting principles to use to establish
rates.
239.7404 Foreign carriers.
(a) Frequently, foreign
carriers are owned by the government of the country in which they operate. The foreign governments often prescribe the
methods of doing business. In many
countries, an international agreement with the host country sets guidelines for
acquiring communication services. In
some countries, a corporate subsidiary of a carrier not indigenous to the
country (often a U.S. parent) is the sole source for telecommunications
services.
(b) Contracts for
telecommunications services in foreign countries should describe rates and
practices in as much detail as possible.
It is DoD policy not to pay discriminatory rates. DoD should pay a reasonable rate for
telecommunications services or the rate charged the military of that country,
whichever is less.
(c) Refer special
problems with telecommunications acquisition in foreign countries to higher
headquarters for resolution with appropriate State Department representatives.
239.7405 Multiyear contracting
authority for telecommunications resources.
(a) The General
Services Administration (GSA) has exclusive multiyear contracting authority for
telecommunications resources. However,
GSA may delegate this authority in certain instances (see Federal Property
Management Regulations (FPMR) 101-35.6).
(b)
In accordance with FPMR 101-35.6, executive agencies may enter into
multiyear contracts for telecommunications resources if—
(1) The agency notifies GSA prior to using GSA’s
multiyear contracting authority;
(2) The contract life, including options, does
not exceed 10 years; and
(3) The agency complies with OMB budget and
accounting procedures relating to appropriated funds.
239.7406 Cost or pricing data
and information other than cost or pricing data.
(a) Common carriers are
not required to submit cost or pricing data before award of contracts for
tariffed services. Rates or preliminary
estimates quoted by a common carrier for tariffed telecommunications services
are considered to be prices set by regulation within the provisions of 10
U.S.C. 2306a. This is true even if the
tariff is set after execution of the contract.
(b) Rates or
preliminary estimates quoted by a common carrier for nontariffed
telecommunications services or by a noncommon carrier for any
telecommunications service are not considered prices set by law or regulation.
(c) Contracting
officers shall obtain sufficient information to determine that the prices are
reasonable. For example, cost or
pricing data, if required in accordance with FAR 15.403-4, or information other
than cost or pricing data, if required in accordance with FAR 15.403-3, may be
necessary to support the reasonableness of—
(1) Nontariffed services;
(2) Special rates and charges not included in a tariff, whether filed or to be filed;
(3) Special assembly rates and charges;
(4) Special construction and equipment charges;
(5) Contingent liabilities that are fixed at the outset of the service;
(6) Proposed cancellation and termination charges under the clause at 252.239-7007, Cancellation or Termination of Orders¾Common Carriers, and reuse arrangements under the clause at 252.239-7008, Reuse Arrangements;
(7) Rates contained in voluntary tariffs filed by nondominant common carriers; or
(8) A tariff, whether filed or to be filed, for new services installed or developed primarily for Government use.
239.7407 Type of contract.
239.7407-1 General.
In addition to acquisition methods described in the FAR, the method described in this section may be used to acquire telecommunications services.
239.7407-2 Communication
service authorizations (CSAs).
Basic agreements (see FAR
16.702) are used widely in conjunction with communication service
authorizations to facilitate award of telecommunications services.
(a) Use DD Form 428,
Communication Service Authorization (CSA), or an electronic data processing
substitute to award, modify, cancel, or terminate telecommunications
services. The CSA shall—
(1) Refer to the basic agreement;
(2) Specify the types and quantities and
equipment to be provided as well as the tariff (or other price if a tariff is
not available) of those services and equipment;
(3) Specify the premises involved;
(4) Cite the address for billing;
(5) Identify the disbursing office; and
(6) Provide funding information.
(b) Before awarding a
CSA, comply with the requirements in FAR and DFARS, e.g., for competition,
reviews, approvals, and determinations and findings.
(c) Include an
expiration date in each CSA.
(d) Modify CSAs to reflect any price increases.
239.7408 Special construction.
239.7408-1 General.
(a) “Special
construction” normally involves a common carrier giving a special service or
facility related to the performance of the basic telecommunications service
requirements. This may include—
(1) Moving or relocating equipment;
(2) Providing temporary facilities;
(3) Expediting provision of facilities; or
(4) Providing specially constructed channel
facilities to meet Government requirements.
(b) Use this subpart instead of FAR Part 36 for
acquisition of “special construction.”
(c) Special
construction costs may be—
(1) A contingent liability for using telecommunications services for a shorter time than the minimum to reimburse the contractor for unamortized nonrecoverable costs. These costs are usually expressed in terms of a termination liability, as provided in the contract or by tariff;
(2) A onetime special construction charge;
(3) Recurring charges for constructed
facilities;
(4) A minimum service charge;
(5) An expediting charge; or
(6) A move or relocation charge.
(d) When a common
carrier submits a proposal or quotation which has special construction
requirements, the contracting officer shall require a detailed special
construction proposal. Analyze all
special construction proposals to—
(1) Determine the adequacy of the proposed
construction;
(2) Disclose excessive or duplicative
construction; and
(3) When different forms of charge are possible,
provide for the form of charge most advantageous to the Government.
(e) When possible,
analyze and approve special construction charges before receiving the
service. Impose a ceiling on the
special construction costs before authorizing the contractor to proceed, if
prior approval is not possible. Do not
make final payment for special construction charges unless the charges are
approved by the contracting officer.
239.7408-2 Applicability of
construction labor standards for special construction.
(a) The construction
labor standards in FAR 22.4 ordinarily do not apply to special
construction. However, if the special
construction includes construction (as defined in FAR 36.102) of a public
building or public work, the construction labor standards may apply. Determine applicability under FAR 22.402.
(b) Each CSA or other
type contract which is subject to construction labor standards under FAR 22.402
shall cite that fact.
239.7409 Special assembly.
(a) Special assembly is
the designing, manufacturing, arranging, assembling, or wiring of equipment to
provide telecommunications services that cannot be provided with general use
equipment.
(b)
Special assembly rates and charges shall be based on estimated
costs. The contracting officer shall
negotiate special assembly rates and charges before starting service whenever
possible. When it is not possible to
negotiate in advance, use provisional rates and charges subject to adjustment,
until final rates and charges are negotiated.
The CSAs authorizing the special assembly shall be modified to reflect
negotiated final rates and charges.
239.7410 Cancellation and
termination.
(a)(1) Cancellation is
stopping a requirement after placing of an order but before service starts.
(2) Termination is stopping a requirement after
placing an order and after service starts.
(b) Determine
cancellation or termination charges under the provisions of the applicable
tariff or agreement/contract.
239.7411 Contract clauses.
(a) In addition to
other appropriate FAR and DFARS clauses, use the following clauses in
solicitations, contracts, and basic agreements for telecommunications
services. Modify the clauses only if
necessary to meet the requirements of a governmental regulatory agency—
(1) 252.239-7002, Access;
(2) 252.239-7003, Facilities and Services to be
Furnished--Common Carriers;
(3) 252.239-7004, Orders for Facilities and
Services--Common Carriers;
(4) 252.239-7005, Rates, Charges, and Services--Common
Carriers;
(5) 252.239-7006, Tariff Information;
(6) 252.239-7007, Cancellation or Termination of
Orders--Common Carriers;
(7) 252.239-7008, Reuse Arrangements.
(b) Use the following
clauses in solicitations, contracts, and basic agreements for
telecommunications services when the acquisition includes or may include
special construction. Modify the
clauses only if necessary to meet the requirements of a governmental regulatory
agency—
(1) 252.239-7011, Special Construction and
Equipment Charges; and
(2) 252.239-7012, Title to Telecommunication
Facilities and Equipment.
(c) Use the following
clauses in basic agreements for telecommunications services—
(1) 252.239-7013, Obligation of the Government;
(2) 252.239-7014, Term of Agreement, and insert
the effective date of the agreement in paragraph (a) of the clause; and
(3) 252.239-7015, Continuation of Communication
Service Authorizations, as appropriate, and insert in paragraph (a) of the
clause, the name of the contracting office and the basic agreement or contract
number which is being superseded.
(d) Use the clause at 252.239-7016, Telecommunications Security Equipment, Devices, Techniques, and Services, in solicitations and contracts when performance of a contract requires a securing telecommunications.