95-1259. Federal Acquisition Regulation; Assignment of Claims

[Federal Register Volume 60, Number 12 (Thursday, January 19, 1995)]
[Proposed Rules]
[Pages 3988-3989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1259]




[[Page 3987]]

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Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 32



Federal Acquisition Regulation; Assignment of Claims; Proposed Rule

Federal Register / Vol. 60, No. 12 / Thursday, January 19, 1995 / 
Proposed Rules 

[[Page 3988]]


DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 32

[FAR Case 94-761]
RIN 9000-XXXX


Federal Acquisition Regulation; Assignment of Claims

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: This proposed rule is issued pursuant to the Federal 
Acquisition Streamlining Act of 1994 to implement revisions which 
expand the authority to prohibit setoffs against assignees when 
contractors assign a contract to a financial institution. This 
regulatory action is not subject to Office of Management and Budget 
review under Executive Order 12866, dated September 30, 1993.

DATES: Comments should be submitted on or before March 20, 1995 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: -
General Services Administration, FAR Secretariat (VRS),-18th & F 
Streets, NW., Room 4037, Washington, DC 20405.
    Please cite FAR case 94-761 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Mr. John Galbraith, Finance/Payment 
Team Leader, at [phone], in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GSA 
Building, Washington, DC 20405 [phone]. Please cite FAR case 94-
761.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Acquisition Streamlining Act of 1994, Public Law 103-
355, (the Act) provides authorities that streamline the acquisition 
process and minimize burdensome government-unique requirements. Major 
changes that can be expected in the acquisition process as a result of 
the Act's implementation include changes in the areas of Commercial 
Item Acquisition, Simplified Acquisition Procedures, the Truth in 
Negotiations Act, and introduction of the Federal Acquisition Computer 
Network (FACNET). In order to promptly achieve the benefits of the 
provisions of the Act, the government is issuing implementing 
regulations on an expedited basis. We believe prompt publication of 
proposed rules provides the public the opportunity to participate more 
fully in the process of developing regulations.
    The FAR Council is interested in an exchange of ideas and opinions 
with respect to the regulatory implementation of the Act. For that 
reason, the FAR Council is conducting a series of public meetings. 
However, the FAR Council has not scheduled a public meeting on this 
rule (FAR case 94-761) because of the clarity and non-controversial 
nature of the rule. If the public believes such a meeting is needed 
with respect to this rule, a letter requesting a public meeting and 
outlining the nature of the requested meeting shall be submitted to and 
received by the FAR Secretariat, Room 4037, GSA Building, Washington, 
DC 20405 [phone], on or before February 21, 1995. Please cite 
FAR case 94-761. The FAR Council will consider such requests in 
determining whether a public meeting on this rule should be scheduled.

FAR Case 94-761

    This notice announces FAR revisions developed under FAR case 94-
761. The language in FAR 32.803(d) is changed to expand the 
authorization of a no-setoff commitment in contracts which are assigned 
under the Act. Prior to the Act, the no-setoff commitment could only be 
included in a contract during time of war or national emergency. Under 
the Act, the inclusion of the no-setoff commitment is based solely on 
whether the President makes a determination of need. The Act further 
states that each determination of need by the President shall be 
published in the Federal Register.
    The Act also resulted in a reorganization of the United States Code 
(U.S.C.) to improve the reading format. Some parts of the U.S.C. were 
deleted as a result of obsolescence, such as the inclusion of the 
Atomic Energy Commission as a designated agency which may utilize the 
no-setoff commitment in contracts. Further, the U.S.C. reference to 
contracts awarded prior to October 9, 1940, was deleted. These changes 
to 41 U.S.C. 15 did not affect the current FAR language at Subpart 
32.8.
    The FAR has also been revised to reflect the micro-purchase 
threshold, in lieu of the previous floor of $1,000, for use of the 
Assignment of Claims clause.

B. Regulatory Flexibility Act

    This proposed rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. Therefore, the Regulatory 
Flexibility Act does not apply. However, comments from small entities 
concerning the affected subpart will be considered in accordance with 5 
U.S.C. 610. Such comments must be submitted separately and cite 5 
U.S.C. 601, et seq. (FAR case 94-761), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 32

    Government procurement.

    Dated: January 12, 1995.
Edward Loeb,
Deputy Project Manager for the Implementation of the Federal 
Acquisition Streamlining Act of 1994.

    Therefore, it is proposed that 48 CFR Part 32 be amended as set 
forth below:
    1. The authority citation for 48 CFR Part 32 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 32--CONTRACT FINANCING


32.801  [Amended]

    2. Section 32.801 is amended in the definition of ``Designated 
agency'' by inserting ``the Department of Energy,'' following ``Federal 
Aviation Administration,''.
    3. Section 32.803(d) is revised to read as follows:


32.803  Policies.

* * * * *
    (d) Any contract of a designated agency (see 32.801), except a 
contract under which full payment has been made, may include a no-
setoff commitment only when a determination of need is made by the 
President. Each such determination of need will be published in the 
Federal Register.
* * * * *
    4. Section 32.806(a) is revised to read as follows:


32.806  Contract clauses.

    (a)(1) The contracting officer shall insert the clause at 52.232-
23, 

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Assignment of Claims, in solicitations and contracts expected to be 
above the micro-purchase threshold, unless the contract will prohibit 
the assignment of claims (see 32.803(b)). The use of the clause is not 
required for purchase orders. However, the clause may be used in 
purchase orders expected to be above the micro-purchase threshold, that 
are accepted in writing by the contractor, if such use is consistent 
with agency policies and regulations.
    (2) If a no-setoff commitment is to be included in the contract 
(see 32.801 and 32.803(d)), the contracting officer shall use the 
clause with its Alternate I.
* * * * *
[FR Doc. 95-1259 Filed 1-18-95; 8:45 am]
BILLING CODE 6820-34-P