[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64912-64913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31813]
[[Page 64911]]
_______________________________________________________________________
Part II
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Chapter I
Federal Acquisition Regulations (FAR); Final Rules
Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 /
Rules and Regulations
[[Page 64912]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter I
Federal Acquisition Circular 97-03; 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.
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SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules issued by the Civilian Agency Acquisition Council and the
Defense Acquisition Regulations Council in this Federal Acquisition
Circular (FAC) 97-03. Each rule follows this document in the order
listed below. A companion document, the Small Entity Compliance Guide,
follows this FAC and may be located on the Internet at http://
www.arnet.gov/far.
DATES: For effective dates and comment dates, see separate documents
which follow.
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 4035, GS Building,
Washington, DC 20405, 202) 501-4755. Please cite FAC 97-03 and specific
FAR case number(s).
SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 97-03 amends
the Federal Acquisition Regulation (FAR) as specified below:
------------------------------------------------------------------------
Item Subject FAR case Analyst
------------------------------------------------------------------------
I................ Part 30 Deviations... 97-014 Nelson.
II............... Information 96-319 Nelson.
Technology
Management Reform
Act of 1996.
III.............. Final Overhead 95-017 Klein.
Settlement.
IV............... Reorganization of FAR 94-772 Linfield.
Part 13, Simplified
Acquisition
Procedures.
V................ Reporting Trade 97-021 Linfield.
Sanction Exemptions.
VI............... New Mexico Gross 97-018 Moss.
Receipts and
Compensating Tax.
VII.............. Compensation of 96-325 Nelson.
Certain Contractor
Personnel.
VIII............. Independent Research 95-032 Nelson.
and Development/Bid
and Proposal Costs
for Fiscal Year 1996
and Beyond.
IX............... Travel Reimbursement 97-007 Nelson.
(Interim).
X................ Protests to GAO...... 97-009 O'Neill.
XI............... Novation and Related 95-034 Klein.
Agreements.
XII.............. Commercial Bills of 97-017 Klein.
Lading, Small
Package Shipments.
XIII............. Standard Form 1406, 96-022 Klein.
Preaward Survey of
Prospective
Contractor--Quality
Assurance.
XIV.............. Technical Amendments.
------------------------------------------------------------------------
Item I--Part 30 Deviations (FAR Case 97-014)
This final rule amends FAR 1.402 to remove the prohibition against
authorizing deviations from FAR part 30, Cost Accounting Standards
Administration, except for subsections 30.201-3 and 30.201-4, or the
Cost Accounting Standards Board rules and regulations.
Item II--Information Technology Management Reform Act of 1996 (FAR Case
96-319)
The interim rule published as Item I of FAC 90-41 is converted to a
final rule. This rule implements the Information Technology Management
Reform Act of 1996 (Division E of Pub. L. 104-106). The final rule
differs from the interim rule in that it makes a clarifying revision to
paragraph (c) of the definition of ``information technology'' at FAR
2.101.
Item III--Final Overhead Settlement (FAR Case 95-017)
This final rule amends FAR parts 4, 42, and 52 to improve the
process of final settlement of contractor indirect cost rates under
cost-reimbursement contracts by (1) extending the time period within
which a contractor must submit an indirect cost rate proposal from 90
days to 6 months after the end of the contractor's fiscal year, (2)
permitting extensions to the 6-month time period for exceptional
circumstances only, and (3) providing a specific reference to the
Defense Contract Audit Agency pamphlet that contains guidance on what
generally constitutes an adequate final indirect cost rate proposal and
supporting data.
Item IV--Reorganization of FAR Part 13, Simplified Acquisition
Procedures (FAR Case 94-772)
This final rule revises FAR part 13 to reorganize its contents in a
more process-oriented manner and to emphasize the use of electronic
contracting and the Governmentwide commercial purchase card. FAR part
52 is amended to permit agency provisions and clauses to be
incorporated by reference in solicitations and contracts, if the full
text of the provisions and clauses may be accessed electronically by
prospective contractors. A new clause is added at FAR 52.213-4 for use
in simplified acquisitions; the clause is a compilation of the required
and most commonly used clauses that apply to simplified acquisitions,
and may be used in lieu of individual clauses prescribed in the FAR.
Item V--Reporting Trade Sanction Exemptions (FAR Case 97-021)
This final rule amends FAR Subpart 25.10 to eliminate requirements
for agencies to notify Congress when exercising the authority at FAR
25.1002(c) for exemption of certain procurements from trade sanctions
imposed by the President. The rule instead requires agencies to notify
the United States Trade Representative of such exemptions within 30
days after contract award.
Item VI--New Mexico Gross Receipts and Compensating Tax (FAR Case 97-
018)
This final rule amends FAR 29.401-6 to identify the Defense Special
Weapons Agency as an agency that has entered into an agreement with the
State of New Mexico regarding taxation.
Item VII--Compensation of Certain Contractor Personnel (FAR Case 96-
325)
The interim rule published as Item XI of FAC 90-45 is converted to
a final rule with a minor clarifying amendment at FAR 31.205-6(p)(1).
The rule implements Section 809 of the Fiscal
[[Page 64913]]
Year 1997 National Defense Authorization Act (Pub. L. 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 fiscal year 1997.
Item VIII--Independent Research and Development/Bid and Proposal Costs
for Fiscal Year 1996 and Beyond (FAR Case 95-032)
This final rule amends the cost principle at FAR 31.205-18,
Independent Research and Development (IR&D) and Bid and Proposal (B&P)
Costs, and deletes FAR subpart 42.10, Negotiating Advance Agreements
for Independent Research and Development/Bid and Proposal Costs. The
rule removes, for fiscal year 1996 and beyond, the requirements to
calculate or negotiate a ceiling for IR&D/B&P costs. In addition, the
rule clarifies that costs incurred in preparing, submitting, and
supporting offers on potential cooperative arrangements are allowable
to the extent they are allocable, reasonable, and not otherwise
unallowable.
Item IX--Travel Reimbursement (FAR Case 97-007)
This interim rule amends FAR 31.205-46 to raise, from $25 to $75,
the maximum travel expense amount that contractor personnel may claim
without providing a supporting receipt. This change is consistent with
a recent amendment to the Federal Travel Regulation.
Item X--Protests to GAO (FAR Case 97-009)
This final rule amends the protest procedures at FAR 33.101 and
33.104 to conform with revisions made to the General Accounting Office
Bid Protest Regulations.
Item XI--Novation and Related Agreements (FAR Case 95-034)
This final rule amends FAR subpart 42.12 to expand and clarify
procedures for processing novation agreements, and for determining when
use of a novation agreement is appropriate.
Item XII--Commercial Bills of Lading, Small Package Shipments (FAR Case
97-017)
This final rule amends FAR 47.303-17 to raise the threshold for
requiring receipted freight bills for small package shipments from $25
to $100, and the maximum amount that the Government may pay for
invoiced but unsupported transportation charges from $100 to $250.
These increased amounts are considered to more accurately reflect
shipping costs in today's business environment.
Item XIII--Standard Form 1406, Preaward Survey of Prospective
Contractor--Quality Assurance (FAR Case 96-022)
This final rule revises Standard Form 1406, Preaward Survey of
Prospective Contractor--Quality Assurance, to delete references to
canceled specifications, and to conform the language in the form to the
current language in FAR part 46.
Item XIV--Technical Amendments
This document makes technical corrections to FAR 1.201-1, 19.811-1,
and 42.203. Standard Forms 33, 1435, 1436, and 1437 are reissued to
reflect changes to internal references as a result of the rewrite of
FAR part 15. Standard Form 279 is reissued to provide accounting for
purchases under the commercial test.
Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 97-03 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 97-03 is effective
February 9, 1998, except for Items VI, IX, and XIV, which are effective
December 9, 1997.
Dated: November 22, 1997.
Eleanor R. Spector,
Director, Defense Procurement.
Dated: November 28, 1997.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General
Services Administration.
Dated: November 18, 1997.
Tom Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics
and Space Administration.
[FR Doc. 97-31813 Filed 12-8-97; 8:45 am]
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