[Federal Register Volume 62, Number 1 (Thursday, January 2, 1997)]
[Rules and Regulations]
[Pages 224-225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33198]
[[Page 223]]
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Part V
Department of Defense
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General Services Administration
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National Aeronautics and Space Administration
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48 CFR Ch. 1, et al.
Federal Acquisition Regulation (FAR); Final Rules
Federal Register / Vol. 62, No. 1 / Thursday, January 2, 1997 / Rules
and Regulations
[[Page 224]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Federal Acquisition Circular 90-45]
Federal Acquisition Regulation; Introduction of Miscellaneous
Amendments
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final and interim rules.
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SUMMARY: This document serves to introduce and relate together the
interim and final rule documents which follow and which comprise
Federal Acquisition Circular (FAC) 90-45. The Civilian Agency
Acquisition Council and the Defense Acquisition Regulations Council
have agreed to issue FAC 90-45 to amend the Federal Acquisition
Regulation (FAR) to implement changes in the following subject areas:
Item Subject FAR case Analyst
I Procurement Integrity. 96-314 Linfield
II Certification 96-312 O'Neill
Requirements.
III Humanitarian 96-323 Linfield
Operations.
IV Freedom of Information 96-326 O'Neill
Act.
V Exceptions to 96-306 Olson
Requirements for
Certified Cost or
Pricing Data.
VI Implementation of the 93-310 Linfield
North American Free
Trade Agreement
Implementation Act.
VII Application of Special 96-307 Moss
Simplified Procedures
to Certain Commercial
Items.
VIII Compliance with 96-320 Linfield
Immigration and
Nationality Act
Provisions.
IX Caribbean Basin and 96-017 Linfield
Designated Countries.
X Caribbean Basin 96-020 Linfield
Country End Products--
Renewal of Treatment
as Eligible.
XI Compensation of 96-325 DeStefano
Certain Contractor
Personnel (Interim).
XII Agency Procurement 95-309 O'Neill
Protests.
XIII Two-Phase Design Build 96-305 O'Neill
Selection Procedures.
XIV Year 2000 Compliance 96-607 O'Neill
(Interim).
XV Limitation on Indirect 96-324 Olson
Cost Audits.
DATES: For effective dates and comment dates, see individual documents
which appear elsewhere in this separate part.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in
relation to each FAR case or subject area. For general information,
contact the FAR Secretariat, Room 4035, GS Building, Washington, DC,
20405 (202) 501-4755. Please cite FAC 90-45 and FAR case number(s).
SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-45 amends
the Federal Acquisition Regulation (FAR) as specified below:
Case Summaries
For the actual revisions and/or amendments to these FAR cases,
refer to the specific item number and subject set forth in the
documents following these item summaries.
Item I--Procurement Integrity (FAR Case 96-314)
This final rule amends the FAR to implement the procurement
integrity provisions of Section 27 of the Office of Federal Procurement
Policy (OFPP) Act, as amended by Section 4304 of the 1996 National
Defense Authorization Act. Section 4304 is part of the Clinger-Cohen
Act of 1996. Section 3.104 is rewritten. Unlike the previous statute,
some of the post-employment restrictions in the rewritten 3.104 apply
to post-award activities. The final rule eliminates all of the
procurement integrity certifications required by the previous statute.
The final rule makes other significant changes. The new post-
employment restrictions apply to services provided or decisions made on
or after January 1, 1997; the old restrictions apply for former
officials whose employment ended before January 1, 1997. The clause at
52.203-10 is revised. The clauses at 52.203-9 and 52.203-13, and the
Optional Form 333 at 53.202-1, are removed. The solicitation provision
at 52.203-8 is replaced with a new clause to provide the means to void
or rescind contracts where there has been a violation of the
procurement integrity restrictions.
Item II--Certification Requirements (FAR Case 96-312)
This final rule amends FAR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19,
23, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52, and 53 to remove
certain certification requirements for contractors and offerors that
are not specifically required by statute. The rule implements Section
4301(b) of the Clinger-Cohen Act of 1996 (Public Law 104-106).
Item III--Humanitarian Operations (FAR Case 96-323)
This final rule amends the definition of ``simplified acquisition
threshold'' at FAR 2.101 to increase the threshold to $200,000 for
contracts to be awarded and performed, or purchases to be made, outside
the United States in support of a humanitarian or peacekeeping
operation. The rule implements 10 U.S.C. 2302(7) and 41 U.S.C. 259(d)
as amended by Section 807 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201).
Item IV--Freedom of Information Act (FAR Case 96-326)
This final rule amends FAR Subpart 24.2 to implement Section 821 of
the National Defense Authorization Act for Fiscal Year 1997 (Public Law
104-201). Section 821 prohibits, with certain exceptions, Government
release of competitive proposals under the Freedom of Information Act.
[[Page 225]]
Item V--Exceptions to Requirements for Certified Cost or Pricing Data
(FAR Case 96-306)
This final rule implements Section 4201 of the Clinger-Cohen Act of
1996 (Public Law 104-106). Section 4201: (1) Exempts suppliers of
commercial items under Federal contracts from the requirement to submit
costs or pricing data; (2) provides for the submission of information
other than cost or pricing data to the extent necessary to determine
price reasonableness; and (3) removes specific audit authorities
pertaining to information provided by commercial suppliers.
Accordingly, FAR 15.8, 52.215-26, 52.215-41, and 52.215-42 are amended
to revise requirements pertaining to the submission of information
relating to commercial items; FAR 52.215-43 is removed; and other
associated changes are made in FAR Parts 4, 12, 15, 16, 25, 31, 46, and
52.
Item VI--Implementation of the North American Free Trade Agreement
Implementation Act (FAR Case 93-310)
The interim rule published as FAC 90-19 and amended by FAC 90-39 is
converted to a final rule with changes. The final rule amends FAR Part
25. The final rule revisions result from public comments received on
FAR Case 96-312 published as Item II in this FAC. Upon consideration of
those public comments, certifications eliminated under the interim rule
published in FAC 90-39 were reinstated.
Item VII--Application of Special Simplified Procedures to Certain
Commercial Items (FAR Case 96-307)
This final rule amends FAR Parts 5, 6, 11, 12, and 13 to implement
section 4202 of the Clinger-Cohen Act of 1996 (Public Law 104-106).
Section 4202 requires revisions to the FAR to incorporate special
simplified procedures for the acquisition of certain commercial items
with a value greater than the simplified acquisition threshold
($100,000) but not greater than $5 million. The purpose of this
revision is to vest contracting officers with additional procedural
discretion and flexibility, so that commercial item acquisitions in
this dollar range may be solicited, offered, evaluated, and awarded in
a simplified manner that maximizes efficiency and economy and minimizes
burden and administrative costs for both the Government and industry.
Item VIII--Compliance With Immigration and Nationality Act Provisions
(FAR Case 96-320)
The interim rule published as Item II of FAC 90-41 is converted to
a final rule without change. The final rule amends FAR 9.406 to specify
that a contractor may be debarred upon a determination by the Attorney
General that the contractor is not in compliance with the employment
provisions of the Immigration and Nationality Act. The rule implements
Executive Order 12989, Economy and Efficiency in Government Procurement
Through Compliance With Certain Immigration and Naturalization Act
Provisions.
Item IX--Caribbean Basin and Designated Countries (FAR Case 96-017)
This final rule amends FAR 25.401 to update the lists of countries
included in the definitions of ``Caribbean Basin country'' and
``Designated country''.
Item X--Caribbean Basin Country End Products--Renewal of Treatment as
Eligible (FAR Case 96-020)
This final rule amends FAR 25.402(b) to implement the extension by
the U.S. Trade Representative of the date of eligibility under the
Trade Agreements Act for products of Caribbean Basin countries.
Item XI--Compensation of Certain Contractor Personnel (FAR Case 96-325)
This interim rule adds a new requirement at FAR 31.205-6(p) to
implement Section 809 of the Fiscal Year (FY) 1997 National Defense
Authorization Act (Public Law 104-201). Section 809 places a
Governmentwide ceiling of $250,000 per year on allowable compensation
costs for contractor personnel in senior management positions under
contracts awarded during FY 1997.
Item XII--Agency Procurement Protests (FAR Case 95-309)
The interim rule published as Item XIII of FAC 90-40 is revised and
finalized. The rule amends 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 the use of alternative dispute resolution
techniques, third party neutrals, and another agency's personnel.
Item XIII--Two-Phase Design-Build Selection Procedures (FAR Case 96-
305)
This final rule amends FAR Part 36 to implement Section 4105 of the
Clinger-Cohen Act of 1996 (Public Law 104-106), which authorizes the
use of two-phase design-build procedures for construction contracting.
Two phase design-build construction contracting provides for the
selection of a limited number of offerors (normally five or fewer),
during Phase One of the solicitation process, to submit detailed
proposals for Phase Two.
Item XIV--Year 2000 Compliance (FAR Case 96-607)
This interim rule amends FAR Part 39 to increase awareness of Year
2000 procurement issues and to ensure that solicitations and contracts
address Year 2000 issues.
Item XV--Limitation on Indirect Cost Audits (FAR Case 96-324)
This final rule amends FAR Part 42 to implement Section 808 of the
FY 97 National Defense Authorization Act (Public Law 104-201). Section
808 amends 10 U.S.C. 2313(d) and 41 U.S.C. 254d(d) to expand required
audit reciprocity among Federal agencies to include post-award audits.
10 U.S.C. 2313(d) and 41 U.S.C. 254d(d) were added by the Federal
Acquisition Streamlining Act of 1994, Sections 2201(a)(1) and 2251(a)
of Public Law 103-355, to include reciprocity on pre-award audits.
Dated: December 24, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 90-45 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 90-45 is effective
January 1, 1997, except for Item XII, which is effective March 3, 1997.
Dated: December 24, 1996.
Charles A. Zuckerman,
Director, Defense Procurement (Acting).
Dated: December 23, 1996.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General
Services Administration.
Dated: December 23, 1996.
L.W. Bailets,
Associate Administrator for Procurement (Acting), National Aeronautics
and Space Administration.
[FR Doc. 96-33198 Filed 12-31-96; 8:45 am]
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