[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 9048-9049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4290]
[[Page 9047]]
_______________________________________________________________________
Part II
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Chapter 1 et al.
Federal Acquisition Regulations (FAR); Final Rules
Federal Register / Vol. 63, No. 35 / Monday, February 23, 1998 /
Rules and Regulations
[[Page 9048]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 97-04; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final rules, interim rules, and
technical amendments and corrections.
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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) 97-04. 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 FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact the analyst whose name appears in the table below in
relation to each FAR case or subject area. Please cite FAC 97-04 and
specific FAR case number(s).
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Item Subject FAR case Analyst
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I............. Use of Data Universal 95-307 Moss.
Numbering System as
the Primary
Contractor
Identification.
II............ Federal Compliance 92-054B Linfield.
With Right-To-Know
Laws and Pollution
Prevention
Requirements.
III........... Review of Procurement 97-601 Linfield.
Integrity Clauses.
IV............ Certificate of 96-002 Moss.
Competency.
V............. Applicability of Cost 97-020 Nelson.
Accounting Standards
(CAS) Coverage.
VI............ OMB Circular No. A-133 97-029 Olson.
VII........... SIC Code and Size 97-026 Moss.
Standard Appeals.
VIII.......... Small Business 97-305 Moss.
Competitiveness
Demonstration Program.
IX............ Special Disabled and 95-602 O'Neill.
Vietnam Era Veterans.
X............. Treatment of Caribbean 97-039 Linfield.
Basin Country End
Products.
XI............ Administrative Changes 97-025 Nelson.
to Cost Accounting
Standards (CAS)
Applicability.
XII........... Changes in Contract 95-022 Klein.
Administration and
Audit Cognizance.
XIII.......... Limitation on 97-303 Nelson.
Allowability of
Compensation for
Certain Contractor
Personnel (Interim).
XIV........... Transfer of Assets 96-006 Nelson.
Following a Business
Combination.
XV............ Modular Contracting... 96-605 Nelson.
XVI........... Technical Amendments.. ............... ...............
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. 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.
Federal Acquisition Circular 97-04 amends the Federal Acquisition
Regulation (FAR) as specified below:
Item I--Use of Data Universal Numbering System as the Primary
Contractor Identification (FAR Case 95-307)
This final rule amends FAR Subpart 4.6, Contract Reporting, and
52.212-1, Instructions to Offerors--Commercial Items; and adds a new
solicitation provision at 52.204-6, Data Universal Numbering System
(DUNS) Number; to replace the Contractor Establishment Code (CEC) with
the Data Universal Numbering System (DUNS) number as the means of
identifying contractors in the Federal Procurement Data System (FPDS).
It reflects Dun and Bradstreet procedures for offerors located
overseas.
Item II--Federal Compliance With Right-To-Know Laws and Pollution
Prevention Requirements (FAR Case 92-054B)
The interim rule published as Item V of FAC 90-46 is revised and
finalized. The rule implements Executive Order 12856 of August 3, 1993,
``Federal Compliance With Right-To-Know Laws and Pollution Prevention
Requirements.'' The final rule differs from the interim rule in that it
amends FAR 23.1004 and 52.223-5 to clarify the obligations of Federal
facilities to comply with the reporting and emergency planning
requirements of the Pollution Prevention Act of 1990 and the Emergency
Planning and Community Right-to-Know Act of 1986.
Item III--Review of Procurement Integrity Clauses (FAR Case 97-601)
This final rule amends FAR Parts 4 and 52 to revise the application
of procurement integrity requirements to contracts for commercial
items. The rule amends (1) 4.803 to remove an obsolete requirement for
maintenance of a record of persons having access to proprietary or
source selection information, (2) the clause at 52.212-4 to add the
procurement integrity provisions of 41 U.S.C. 423 to the list of laws
applicable to contracts for commercial items, and (3) the clause at
52.212-5 to remove 52.203-10, Price or Fee Adjustment for Illegal or
Improper Activity, from the list of FAR clauses required to implement
provisions of law or Executive orders. As amended by the Clinger-Cohen
Act of 1996, 41 U.S.C. 423 no longer requires that a contract clause
specify administrative remedies for procurement integrity violations.
Item IV--Certificate of Competency (FAR Case 96-002)
The interim rule published as Item IX of FAC 97-01 is converted to
a final rule with a minor change at 19.302(d). The rule implements
revisions made to the Small Business Administration's procurement
assistance programs contained in 13 CFR Part 125.
Item V--Applicability of Cost Accounting Standards (CAS) Coverage (FAR
Case 97-020)
This final rule amends FAR Parts 12 and 52 to exempt contracts and
subcontracts for the acquisition of commercial items from Cost
Accounting Standards requirements when these contracts and subcontracts
are firm-fixed-price or fixed-price with economic price adjustment
(provided that the
[[Page 9049]]
price adjustment is not based on actual costs incurred).
Item VI--OMB Circular No. A-133 (FAR Case 97-029)
This final rule amends FAR 15.209 and the associated clause at
52.215-2, Audits and Records--Negotiation, Alternate II, to implement
revisions to OMB Circular No. A-133. The circular has a new title,
``Audits of States, Local Governments, and Non-Profit Organizations,''
and now addresses audits of State and local governments as well as
audits of institutions of higher learning and other nonprofit
organizations.
Item VII--SIC Code and Size Standard Appeals (FAR Case 97-026)
This final rule amends FAR Subpart 19.3 to conform to the Small
Business Administration regulations at 13 CFR 121 and 134 pertaining to
protest of an offeror's small business representation, and appeal of a
contracting officer's standard industrial classification code
designation and related small business size standard.
Item VIII--Small Business Competitiveness Demonstration Program (FAR
Case 97-305)
This final rule amends FAR Subpart 19.10 to eliminate the
termination date of the Small Business Competitiveness Demonstration
Program, in accordance with Section 401 of the Small Business
Reauthorization Act of 1997 (Public Law 105-135).
Item IX--Special Disabled and Vietnam Era Veterans (FAR Case 95-
602)
This final rule amends FAR Subpart 22.13 and the clauses at 52.212-
5, 52.222-35, and 52.222-37 to implement revised Department of Labor
regulations regarding affirmative action for disabled veterans and
veterans of the Vietnam era.
Item X--Treatment of Caribbean Basin Country End Products (FAR Case 97-
039)
This final rule revises FAR 25.402(b) to extend the time period for
treatment of Caribbean Basin country end products as eligible products
under the Trade Agreements Act. The United States Trade Representative
has directed that such treatment continue through September 30, 1998.
Item XI--Administrative Changes to Cost Accounting Standards (CAS)
Applicability (FAR Case 97-025)
This final rule amends FAR 30.101 and the clauses at 52.230-1 and
52.230-5 to conform to changes made to the Cost Accounting Standards
(CAS) Board rules and regulations (FAR Appendix), pertaining to the
applicability of CAS to negotiated contracts and subcontracts.
Item XII--Changes in Contract Administration and Audit Cognizance (FAR
Case 95-022)
This final rule amends FAR Parts 31, 32, 42, 46, 47, and 52 to add
policies and procedures for assigning and performing contract audit
services, and to clarify the policy for assigning or delegating
responsibility for establishing forward pricing and billing rates and
final indirect cost rates.
Item XIII--Limitation on Allowability of Compensation for Certain
Contractor Personnel (FAR Case 97-303)
This interim rule revises FAR 31.205-6(p) to implement Section 808
of the National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85). Section 808 limits the allowable compensation costs for
senior executives of contractors to the benchmark compensation amount
determined applicable for each fiscal year by the Administrator for
Federal Procurement Policy.
Item XIV--Transfer of Assets Following a Business Combination (FAR Case
96-006)
This final rule revises FAR 31.205-10(a)(5) and 31.205-52 to
conform to changes made to the Cost Accounting Standards regarding the
treatment of gains and losses attributable to tangible capital assets
subsequent to business mergers or combinations.
Item XV--Modular Contracting (FAR Case 96-605)
This final rule amends FAR Part 39 to implement Section 5202 of the
Information Technology Management Reform Act of 1996 (Public Law 104-
106). Section 5202 encourages maximum practicable use of modular
contracting for acquisition of major systems of information technology.
Agencies may also use modular contracting to acquire non-major systems
of information technology.
Item XVI--Technical Amendments
Amendments are being made at FAR 1.201-1(b)(2), 44.204(b), and
52.219-1(b)(2) and (b)(3) to update references and make editorial
changes.
Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Federal Acquisition Circular
FAC 97-04
[Date]
Federal Acquisition Circular (FAC) 97-04 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 97-04 are effective
April 24, 1998, except for Items VIII, X, XIII, and XVI, which are
effective February 23, 1998.
Dated: February 11, 1998.
Eleanor R. Spector,
Director, Defense Procurement.
Dated: February 12, 1998.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General
Services Administration.
Dated: February 12, 1998.
Deidre A. Lee,
Associate Administrator for Procurement, National Aeronautics and Space
Administration.
[FR Doc. 98-4290 Filed 2-20-98; 8:45 am]
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