Authority
10 U.S.C. ยง 2688, Utility Systems: Conveyance Authority
Summary
This deviation allows the Head of the Contracting Activity to waive Federal Acquisition Regulation (FAR) Part 31 cost principles for qualified utility privatization contracts. Eligible contracts must be fixed-price types and meet CAS exemption or waiver conditions. It replaces the prior deviation issued under CPF Tracking Number 2007-000007.
Contracting Officer Actions
1
Determine whether the contract qualifies under Attachment A conditions before applying the deviation.
2
Document in writing any waivers of FAR 31.205-20 (Interest) or FAR 31.205-41 (Taxes) per Attachment A Sections 2 and 3.
3
Report quarterly to Defense Procurement and Acquisition Policy/CPF on all contracts awarded using this deviation within 30 days of each quarter's end.
4
Include contract number, contractor name, award date, award amount and CAS waiver indication in each quarterly report.
5
Ensure FPPPR contracts include FAR 52.215-2 and the clause specified in Attachment B condition 6.
Retroactive Applicability
This deviation applies to all qualified contracts awarded as of August 31, 2010. COs should review prior awards for compliance.
CAS Waiver
The CAS Board waiver dated September 2, 2004 is a separate document at Attachment B. Contracts must meet all conditions in that waiver to qualify under Section 1.b.(ii).
Duration
The deviation remains in effect until incorporated into the DFARS or rescinded. No expiration date is set.
Interest Rate Cap
Allowable interest costs under FAR 31.205-20 are capped at 600 basis points above the Contract Disputes Act rate. COs must verify this at the time of capital expenditure.
CIAC Tax
Contracts should be structured to avoid Contribution in Aid of Construction taxes where practical. The HCA must document in writing the basis for allowing CIAC as an allowable cost.