[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39186-39188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18497]
[[Page 39185]]
_______________________________________________________________________
Part II
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Ch. I, et al.
Federal Acquisition Regulations (FAR); Final and Interim Rules
Federal Register / Vol. 61, No. 145 / Friday, July 26, 1996 / Rules
and Regulations
[[Page 39186]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 90-40; Introduction
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final and interim rules with request
for comment.
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SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules which follow it in the order listed below. The FAR Council
is issuing Federal Acquisition Circular (FAC) 90-40 to amend the
Federal Acquisition Regulation (FAR). A companion document, the Small
Entities Compliance Guide, follows this FAC and may be located on the
Internet at http://www.gsa.gov/far/compliance.
DATES: For effective dates and comment dates, see separate documents
which follow. Please cite FAC 90-40 and the appropriate FAR case
number(s) in all correspondence related to the following documents.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears (in the
table below) in relation to each FAR case or subject area. For general
information, contact the FAR Secretariat, Room 4037, GS Building,
Washington, DC 20405, (202) 501-4755. Please cite FAC 90-40 and
specific FAR case number(s).
SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-40 amends
the Federal Acquisition Regulation (FAR) as specified below:
------------------------------------------------------------------------
Item- Subject FAR case Analyst
------------------------------------------------------------------------
I.............. Contingent Fee 93-009 DeStefano.
Representation.
II............. Simplified Acquisition 94-770 Linfield.
Threshold/Federal 94-771
Acquisition Computer
Network; and Micro-
Purchase Procedures.
III............ Gratuities (Interim).. 96-300 DeStefano.
IV............. Disaster Relief Act... 93-303 Klein.
V.............. Responsibility 95-007 DeStefano.
Determinations.
VI............. Task and Delivery 94-711 McAndrew.
Orders.
VII............ Multiyear Contracting. 94-712 McAndrew.
VIII........... Small Business/ 94-782 Moss.
Simplified
Acquisition Threshold.
IX............. Indian-Owned Economic 91-028 DeStefano.
Enterprises.
X.............. General Agreement on 95-308 O'Neill.
Tariffs and Trade
Patent Authorization.
XI............. Performance and 91-027 O'Such.
Payment Bonds.
XII............ Employee Compensation 93-005 Olson.
Costs.
XIII........... Agency Procurement 95-309 O'Neill.
Protests (Interim).
XIV............ Value Engineering..... 96-315 O'Such.
XV............. Termination Inventory 94-003 Klein.
Schedules.
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Item I--Contingent Fee Representation (FAR Case 93-009)
This final rule amends FAR Subpart 3.4 to remove the requirement
for prospective contractors to provide certain information regarding
contingent fee arrangements. Accordingly, the provision at 52.203-4,
Contingent Fee Representation and Agreement, and Standard Form 119,
Statement of Contingent or Other Fees, are also removed. The underlying
policy pertaining to contingent fee arrangements, as set forth in
Subpart 3.4, remains the same.
Item II--Simplified Acquisition Threshold/Federal Acquisition Computer
Network; and Micro-Purchase Procedures (FAR Cases 94-770 and 94-771)
The interim rules published as Item II of FAC 90-24 and Item III of
FAC 90-29 are amended and adopted as final. The rules implement the
micro-purchase, simplified acquisition, and Federal Acquisition
Computer Network (FACNET) provisions of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103-355), and Section 4302(b) of
the Federal Acquisition Reform Act of 1996 (Public Law 104-106). The
final rules differ from the interim rules in that they (1) move
definitions pertaining to micro-purchases, simplified acquisition
procedures, and FACNET from Parts 4 and 13 to Part 2; (2) remove the
requirement for interim FACNET certification before a contracting
office may use simplified acquisition procedures for contract actions
exceeding $50,000; (3) remove the clause at 52.222-40, Service Contract
Act of 1965, as Amended--Contracts of $2,500 or Less, based upon a
change in Department of Labor regulations; and (4) provide a telephone
number for information regarding FACNET at 4.503.
Item III--Gratuities (FAR Case 96-300)
This interim rule amends FAR 3.202 and 52.203-3 to implement
Section 801 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106). Section 801 amends 10 U.S.C. 2207, generally
referred to as the Gratuities Act, to exempt contracts which do not
exceed the simplified acquisition threshold from application of the
Act. Therefore, the clause at 52.203-3, Gratuities, is now prescribed
for inclusion in only those contracts which exceed the simplified
acquisition threshold.
Item IV--Disaster Relief Act (FAR Case 93-303)
This final rule amends FAR 6.302-5, and adds FAR Subpart 26.2, to
implement the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5150). Section 5150 establishes a preference
for local sources in the award of contracts for major disaster or
emergency assistance activities.
Item V--Responsibility Determinations (FAR Case 95-007)
This final rule amends FAR Subpart 9.1 to emphasize the use of
commercial sources of information for determining the responsibility of
prospective contractors, and to clarify that preaward surveys normally
should be requested only when information on hand or readily available
is not sufficient.
Item VI--Task and Delivery Orders (FAR Case 94-711)
The interim rule published as Item III of FAC 90-33 is amended and
adopted as final. The interim rule added FAR
[[Page 39187]]
Section 16.500 to define the scope of the multiple award preference
established by Subpart 16.5 for indefinite-quantity contracts. The
final rule differs from the interim rule in that it amends Section
16.500 to clarify that the multiple award preference does not apply to
architect-engineer contracts subject to the procedures in Subpart 36.6.
However, agencies are not precluded from making multiple awards for
architect-engineer services, provided the selection of contractors and
placement of orders is consistent with Subpart 36.6. The rule also
amends Section 16.504 to clarify procedures for determining if multiple
awards are appropriate.
Item VII--Multiyear Contracting (FAR Case 94-712)
This final rule revises FAR Subpart 17.1, removes the clause at
52.217-1, and revises the clause at 52.217-2 to implement Sections 1022
and 1072 of the Federal Acquisition Streamlining Act of 1994 (Public
Law 103-355). Sections 1022 and 1072 provide for use of multiyear
contracting in a manner that will encourage competition or promote
economy in administration, performance, and operation of an agency's
programs.
Item VIII--Small Business/Simplified Acquisition Threshold (FAR Case
94-782)
This final rule amends FAR Part 19 and the clauses at 52.219-6,
52.219-7, and 52.219-18 to implement Section 4004 of the Federal
Acquisition Streamlining Act of 1994 (Public Law 103-355). Section 4004
amends Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) to
reserve each contract for supplies or services that has an anticipated
value greater than $2,500, but not greater than $100,000, for exclusive
participation by small business concerns, unless the contracting
officer is unable to obtain offers from two or more small business
concerns that are competitive with regard to price, quality, and
delivery. This rule also reflects a final rule published by the Small
Business Administration at 13 CFR 121.406, which provides that, where
the procurement of a manufactured item is processed under FAR Part 13
procedures, set aside for small business concerns, and not expected to
exceed $25,000, an offeror need not supply the end product of a small
business concern as long as the product is manufactured or produced in
the United States.
Item IX--Indian-Owned Economic Enterprises (FAR Case 91-028)
The interim rule published as Item VIII of FAC 90-7 is amended and
adopted as final. The rule implements 25 U.S.C. 1544, which provides
for payment of incentives to prime contractors who use Indian
organizations or Indian-owned economic enterprises as subcontractors.
The principal difference between the interim rule and the final rule is
the method of incentive payment contained in each. The interim rule
permitted prime contractors to recover certain costs of subcontracting
with Indian organizations and Indian-owned economic enterprises based
on the difference in price between the acceptable low non-Indian
subcontractor and the acceptable low Indian subcontractor, when the
Indian subcontractor's price exceeded the price of the non-Indian
subcontractor. The final rule instead permits an incentive payment to
the prime contractor in an amount which equals 5 percent of the amount
of the subcontract awarded to the Indian organization or Indian-owned
economic enterprise. The applicable amendments are in Subpart 26.1 and
the clause at 52.226-1.
Item X--General Agreement on Tariffs and Trade Patent Authorization
(FAR Case 95-308)
This final rule adds FAR Section 27.209 to provide guidance
pertaining to the use of patented technology under the General
Agreement on Tariffs and Trade.
Item XI--Performance and Payment Bonds (FAR Case 91-027)
This final rule amends FAR Subpart 28.1 and the clause at 52.228-1,
and adds two clauses at 52.228-15 and 52.228-16, and new SF 1418 to
update, clarify, and standardize policy pertaining to bid guarantees
and performance and payment bonds.
Item XII--Employee Compensation Costs (FAR Case 93-005)
This final rule amends FAR Part 31 to clarify the allowability of
personal services compensation costs. The rule adds definitions at
31.001; clarifies the standard for reasonableness of labor-management
compensation agreements at 31.205-6(b); revises 31.205-6(b)(1)(i) to
clearly allow offsets of allowable elements of employee compensation
packages among jobs of the same grade or level; and revises 31.205-6(i)
to provide a general allowability rule pertaining to corporate
securities.
Item XIII--Agency Procurement Protests (FAR Case 95-309)
This interim rule revises FAR 33.103 to implement Executive Order
12979, Agency Procurement Protests. Executive Order 12979 provides for
inexpensive, informal, procedurally simple, and expeditious resolution
of agency protests, including, where appropriate and permitted by law,
the use of alternative dispute resolution techniques, third party
neutrals, and another agency's personnel.
Item XIV--Value Engineering (FAR Case 96-315)
This final rule amends FAR Part 48 to revise the definition of
value engineering and to require agencies to establish and maintain
cost-effective value engineering procedures and processes. The rule
implements Section 4306 of the Federal Acquisition Reform Act of 1996
(Public Law 104-106).
Item XV--Termination Inventory Schedules (FAR Case 94-003)
This final rule amends FAR Part 49 and the clauses at 52.249-2,
52.249-3, 52.249-5, 52.249-6, and 52.249-11 to require contractors
under terminated contracts to submit termination inventory schedules
within 120 days from the date of termination, unless this period is
extended by the contracting officer.
Dated: July 16, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
FEDERAL ACQUISITION CIRCULAR
Number 90-40
Federal Acquisition Circular (FAC) 90-40 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 90-40 are effective
September 24, 1996, except for Items III, VI thru VIII, and XIII, which
are effective July 26, 1996, and Items II and XIV, which are effective
August 26, 1996.
[[Page 39188]]
Dated: July 12, 1996.
Eleanor R. Spector,
Director, Defense Procurement.
Dated: July 8, 1996.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy, General Services
Administration.
Dated: July 15, 1996.
Tom Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics
and Space Administration.
[FR Doc. 96-18497 Filed 7-25-96; 8:45 am]
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