[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31612-31616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14515]
[[Page 31611]]
_______________________________________________________________________
Part II
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Ch. 1
Federal Acquisition Regulation (FAR); Final Rules
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules
and Regulations
[[Page 31612]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 90-39 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.
-----------------------------------------------------------------------
SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules which follow it in the order listed below. The Civilian
Agency Acquisition Council and the Defense Acquisition Regulations
Council are issuing Federal Acquisition Circular (FAC) 90-39 to amend
the FAR.
DATES: For effective dates and comment dates, see separate documents
which follow. Please cite FAC 90-39 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 90-39 and
specific FAR case number(s).
SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-39 amends
the Federal Acquisition Regulation (FAR) as specified below:
------------------------------------------------------------------------
Item- Subject- FAR case- Analyst
------------------------------------------------------------------------
I-......... Double-Sided Copying-.. 92-050- De Stefano. -
II-........ National Industrial 95-004- O'Neill. -
Security Program
Operating Manual
(NISPOM) -.
III-....... Justification and 96-302- De Stefano. -
Approval Thresholds-.
IV-........ Implementation of 93-606- O'Such. -
Memorandum of
Understanding Between
the United States of
America and the
European Economic
Community on
Government Procurement
and Sanctions Imposed
on the European
Community -.
V-......... Postponement of Bid 91-095- De Stefano.
Openings or Closing
Dates.
VI-........ Armed Services Pricing 95-027- Olson. -
Manual-.
VII-....... Predetermined Indirect 94-011- De Stefano. -
Cost Rates-.
VIII-...... Small Business Size 94-600- Klein. -
Standards-.
IX-........ Master Subcontracting 92-039- Klein. -
Plans-.
X-......... Small Business 92-302- Klein. -
Competitiveness
Demonstration Program -
.
XI-........ Use of Convict Labor-.. 93-615- O'Neill.
XII-....... Ozone Executive Order-. 93-307- De Stefano.
XIII-...... Uruguay Round (1996 95-304- O'Such. -
Code) -.
XIV-....... Implementation of the 93-310- O'Such. -
North American Free
Trade Agreement
Implementation Act -.
XV-........ Caribbean Basin 95-030- O'Such. -
Countries -.
XVI-....... Fluctuating Exchange 92-048- O'Such. -
Rates-.
XVII-...... Irrevocable Letters of 95-301- O'Neill. -
Credit and
Alternatives to Miller
Act Bonds-.
XVIII-..... Part 31 Agency 94-606- Olson. -
Supplements -.
XIX-....... Records Retention-..... 93-020- Olson.
XX-........ Legislative Lobbying 93-006- Olson. -
Costs -.
XXI-....... Travel Costs-.......... 93-022- Olson
XXII-...... Prompt Payment Overseas 92-046- Olson. -
-.
XXIII-..... Alternate Dispute 91-062/92-301- O'Neill. --
Resolution/Federal
Courts Administration
Act -.
XXIV-...... Defense Production Act 93-304- O'Neill. -
Amendments-.
XXV-....... Child Care Services-... 91-106- Klein.
XXVI-...... Quick-Closeout 95-009- Klein. -
Procedures-.
XXVII-..... Quality Assurance 92-031- Klein. -
Actions--Electronic -
Screening-.
XXVIII-.... Quality Assurance 92-027- Klein. -
Nonconformances -.
XXIX-...... Solicitation 95-603- O'Neill.
Provisions--Contract
Clauses-.
XXX-....... Contract Award--Sealed 91-031- O'Neill. -
Bidding--Construction -
.
XXXI-...... Small Business 93-305- O'Neill. -
Innovation Research
Rights in Data -.
XXXII-..... Inspection Clauses-- 92-001- Klein -
Fixed Price.
XXXIII-.... Termination for 91-102- Klein. -
Convenience -.
N/A-....... Corrections and
Technical Amendments
(1) Revision to FAR 92-617- O'Such. -
Utility Matrix (Loose-
leaf edition only) -.
(2) Table of Standard N/A- N/A.
Forms and OMB
Expiration Dates -.
------------------------------------------------------------------------
-Item I--Double-Sided Copying (FAR Case 92-050)
The interim rule published as Item I of FAC 90-27, and amended by
Item III of FAC 90-29, is revised and finalized. The interim rule added
FAR Subpart 4.3 and a clause at 52.204-4 to encourage offerors and
contractors to maximize the use of double-sided copying on recycled
paper, in accordance with Executive Order 12873. FAC 90-29 amended FAR
4.304 to eliminate the requirement for use of the clause at 52.204-4 in
acquisitions at or below the simplified acquisition threshold. The
final rule contains additional changes at 4.301 and 52.204-4 to
implement Executive Order 12995, which amended Executive Order 12873 to
revise the minimum recycled content standards for printing and writing
paper.
[[Page 31613]]
Item II--National Industrial Security Program Operating Manual
(NISPOM) (FAR Case 95-004)
This final rule amends FAR Subparts 4.4 and 27.2 and the clause at
52.204-2 to (1) replace references to the ``Defense Industrial Security
Program'' with references to the ``National Industrial Security
Program''; and (2) replace references to the ``DoD Industrial Security
Manual for Safeguarding Classified Information'' with references to the
``National Industrial Security Program Operating Manual.'' The National
Industrial Security Program has been established in accordance with
Executive Order 12829.
Item III--Justification and Approval Thresholds (FAR Case 96-302)
This final rule amends FAR 6.304 to implement Section 4102 of the
Fiscal Year 1996 Defense Authorization Act (Public Law 104-106).
Section 4102 amends 10 U.S.C. 2304(f)(1)(B) and 41 U.S.C. 253(f)(1)(B)
to raise the dollar thresholds at which approval for the use of other
than full and open competition must be obtained from the competition
advocate, the head of the procuring activity, or the senior procurement
executive. Section 4102 provides for approval of the justification for
other than full and open competition by (1) the competition advocate,
for proposed contracts over $500,000, but not exceeding $10,000,000;
(2) the head of the procuring activity, or designee, for proposed
contracts over $10,000,000, but not exceeding $50,000,000; and (3) the
senior procurement executive, for proposed contracts over $50,000,000.
Item IV--Implementation of Memorandum of Understanding Between the
United States of America and the European Economic Community on
Government Procurement and Sanctions Imposed on the European Community
(FAR Case 93-606)
The interim rule published in FAC 90-18, and amended in FACs 90-19
and 90-36, is converted to a final rule without change. The rule
amended FAR Parts 14, 15, 17, 25, and 52 to (1) implement Executive
Order 12849 which, based on a Memorandum of Understanding between the
United States and the European Community, waives the Buy American Act
in certain situations; and (2) implement certain trade sanctions
imposed on the European Community.
Item V--Postponement of Bid Openings or Closing Dates (FAR Case 91-
095)
This final rule amends FAR 14.402-3, and 15.412 and the provisions
at 52.214-7, 52.214-23, 52.214-32, 52.214-33, 52.215-10, and 52.215-36
to clarify policy regarding rescheduling of the time for receipt of
bids or proposals when an emergency or unanticipated event interrupts
normal processes at a Government installation. An editorial revision is
made at 15.411(a).
Item VI--Armed Services Pricing Manual (FAR Case 95-027)
This final rule amends FAR 15.805-1 to replace the Armed Services
Pricing Manual, as the reference guide for pricing and negotiation
personnel, with five desk references jointly prepared by the Air Force
Institute of Technology and the Federal Acquisition Institute.
Item VII--Predetermined Indirect Cost Rates (FAR Case 94-011)
This final rule amends FAR 42.705-3 and the clause at 52.216-15 to
implement revisions to OMB Circular A-21 that permit predetermined
indirect cost rates for educational institutions to be established for
periods of up to four years. An editorial revision is made at
16.307(i).
Item VIII--Small Business Size Standards (FAR Case 94-600)
This final rule revises the table at FAR 19.102 to reflect size
standards published by the Small Business Administration.
Item IX--Master Subcontracting Plans (FAR Case 92-039)
This final rule amends FAR 19.704 and the clause at 52.219-9 to
permit master subcontracting plans to be written for a three-year
period, and to emphasize that it is incumbent upon contractors to
maintain and update master plans.
Item X--Small Business Competitiveness Demonstration Program (FAR
Case 92-302)
The interim rule published as Item XIII of FAC 90-23 is converted
to a final rule without change. The rule amended FAR Subpart 19.10 to
(1) extend the Small Business Competitiveness Demonstration Program
through September 30, 1996; (2) specify that agencies may reinstate the
use of small business set-asides as necessary to meet assigned goals,
but only within the organizational unit(s) that failed to meet the
small business goals; and (3) revise the description of architectural
and engineering services as a designated industry group.
Item XI--Use of Convict Labor (FAR Case 93-615)
This final rule amends FAR Subpart 22.2 and the clause at 52.222-3
to reflect changes in the statutory restrictions on employment of
convict labor in the performance of Government contracts. The
amendments (1) remove all references to 18 U.S.C. 4082(c)(2), which now
only applies to offenses committed prior to November 1, 1987; (2)
reflect the addition of the Commonwealth of the Northern Mariana
Islands to the jurisdictions covered by Executive Order 11755; and (3)
include further information regarding the requirements of Executive
Order 11755, as amended by Executive Order 12608.
Item XII--Ozone Executive Order (FAR Case 93-307)
The interim rule published as Item III of FAC 90-27 is revised and
finalized. The rule implements Executive Order 12843 and Environmental
Protection Agency Clean Air Act regulations (40 CFR Part 82). The final
rule differs from the interim rule in that it (1) amends FAR Subpart
23.8 and the clause at 52.223-11 to replace the definitions of ``class
I substance'' and ``class II substance'' with a definition of ``ozone-
depleting substance''; and (2) amends the clause at 52.223-11 to
clarify that labeling of ozone-depleting substances shall be in
accordance with 42 U.S.C. 7671j and 40 CFR Part 82.
Item XIII--Uruguay Round (1996 Code) (FAR Case 95-304)
The interim rule published in FAC 90-36 is converted to a final
rule without further change. The rule amends FAR Parts 25 and 52 to
implement the renegotiated Government Procurement Agreement (1996 Code)
(Uruguay Round). This agreement is implemented in statute by the
Uruguay Round Agreement Act, Public Law 103-465, which amends the Trade
Agreements Act of 1979 (19 U.S.C. 2501-2582).
Item XIV--Implementation of the North American Free Trade Agreement
Implementation Act (FAR Case 93-310)
This interim rule amends the rule published in FAC 90-19 to
implement the North American Free Trade Agreement (NAFTA)
Implementation Act. This interim rule (1) adds language at FAR
25.402(g) to address the applicability of NAFTA to the acquisition of
services; (2) adds language at 27.208 to address the use of patented
technology when the patent holder is from a NAFTA country; (3) amends
the provision at 52.225- 20 to clarify procedures for evaluation of
[[Page 31614]]
offers; (4) adds an alternate to the provision at 52.225-20 and the
clause at 52.225-21 for use in acquisitions between $25,000 and
$50,000; and (5) adds a new clause at 52.225-22 for use in construction
contracts awarded outside the United States with an estimated value of
$6,500,000 or more.
Item XV--Caribbean Basin Countries (FAR Case 95-030)
This final rule amends FAR 25.402(b) to reflect the U.S. Trade
Representative's extension, through September 30, 1996, of the
designation of Caribbean Basin products as eligible products under the
Trade Agreements Act.
Item XVI--Fluctuating Exchange Rates (FAR Case 92-048)
This final rule revises FAR 25.501 and adds a new provision at
52.225-4 to address procedures for evaluation of offers priced in a
foreign currency.
Item XVII--Irrevocable Letters of Credit and Alternatives to Miller Act
Bonds (FAR Case 95-301)
This interim rule amends FAR Part 28 and the clause at 52.228-2,
and adds new clauses at 52.228-13 and 52.228-14 to (1) provide for use
of irrevocable letters of credit as an alternative to corporate or
individual sureties as security for Miller Act bonds on construction
contracts exceeding $100,000; and (2) provide alternative payment
protections for construction contracts between $25,000 and $100,000,
which are no longer subject to the Miller Act, in accordance with
Section 4104(b) of the Federal Acquisition Streamlining Act of 1994
(Public Law 103-355).
Item XVIII--Part 31 Agency Supplements (FAR Case 94-606)
This final rule amends FAR 31.101 to remove the requirement for
Civilian Agency Acquisition Council approval of agency supplements to
FAR Part 31. Approval requirements for class deviations from Part 31
remain unchanged.
Item XIX--Records Retention (FAR Case 93-020)
This final rule amends the cost principle at 31.201-2 to explicitly
state that contractors must maintain adequate cost records in order to
be reimbursed for costs claimed.
Item XX--Legislative Lobbying Costs (FAR Case 93-006)
This final rule amends FAR 31.205-22, and deletes 31.205-50, to
clarify the cost principle pertaining to legislative lobbying costs.
Item XXI--Travel Costs (FAR Case 93-022)
This final rule amends the cost principle at FAR 31.205- 46 to
specify the documentation required to support travel costs incurred by
contractors under Government contracts. These documentation
requirements are consistent with similar requirements already imposed
by Section 274 of the Internal Revenue Code for travel costs claimed
for Federal tax purposes.
Item XXII--Prompt Payment Overseas (FAR Case 92-046)
The interim rule published as Item XIII of FAC 90-20, and further
amended by Item III of FAC 90-29, is converted to a final rule without
change. The rule amended FAR 32.901 and the clauses at 52.232-25,
52.232-26, and 52.232-27 to reflect the applicability of the Prompt
Payment Act to contracts awarded and performed outside the United
States.
Item XXIII--Alternate Dispute Resolution/Federal Courts Administration
Act (FAR Cases 91-062 and 92-301)
The interim rules are converted to final rules without change. The
rules were published as Item XIV of FAC 90-20 and Item III of FAC 90-
10. The rules amend the claim certification procedures and the
Alternative Means of Dispute Resolution (ADR) procedures in FAR Part
33, and implement section 907(a) of the Federal Courts Administration
Act of 1992 (Public Law 102-572).
Item XXIV--Defense Production Act Amendments (FAR Case 93-304)
The interim rule published as Item XXIV of FAC 90-23 is converted
to a final rule without change. The rule added FAR Subpart 34.1 and a
clause at 52.234-1 to provide policy and procedures for the testing,
qualification, and use of industrial resources manufactured or
developed with assistance provided under Title III of the Defense
Production Act of 1950.
Item XXV--Child Care Services (FAR Case 91-106)
The interim rule published as Item XXVII of FAC 90-23 is converted
to a final rule without change. The rule amended FAR Subpart 37.1 to
require contracting officers to ensure that contracts for child care
services include requirements for criminal history background checks of
employees in accordance with 42 U.S.C. 13041.
Item XXVI--Quick-Closeout Procedures (FAR Case 95-009)
This final rule amends FAR 42.708 and the clauses at 52.216-7 and
52.216-13 to permit maximum use of quick contract closeout procedures.
The rule (1) permits use of quick closeout procedures if total
unsettled indirect costs allocable to any one contract do not exceed
$1,000,000; (2) and permits contracting officers to waive the 15
percent restriction on unsettled indirect costs, based upon a risk
assessment that considers certain factors.
Item XXVII--Quality Assurance Actions--Electronic Screening (FAR Case
92-031)
This final rule amends FAR 46.101 to add definitions of ``latent
defect'' and ``patent defect.''
Item XXVIII--Quality Assurance Nonconformances (FAR Case 92-027)
This final rule amends FAR Subpart 46.1 to provide standard
terminology and guidance pertaining to supplies and services that do
not meet contract requirements.
Item XXIX--Solicitation Provisions--Contract Clauses (FAR Case 95-603)
This final rule amends the provision at FAR 52.211-1 to delete the
statement that copies of specifications may be obtained from General
Services Administration Business Service Centers. Specifications are no
longer available from these centers.
Item XXX--Contract Award--Sealed Bidding--Construction (FAR Case 91-
031)
This final rule amends the provision at FAR 52.214-19 to advise
offerors that, for construction solicitations, the Government may
reject bids as nonresponsive if the prices are materially unbalanced.
This amendment is consistent with the existing language in the
provisions at 52.214-10 and 52.215- 16, which are used in solicitations
for other than construction.
Item XXXI--Small Business Innovation Research Rights in Data (FAR Case
93-305)
The interim rule published as Item XIX of FAC 90-20 is converted to
a final rule without change. The rule amended the clause at FAR 52.227-
20 to increase a small business concern's data rights retention period
from two to four years, in accordance with the Small Business
Innovation Research Program Policy Directive published by the Small
Business Administration.
[[Page 31615]]
Item XXXII--Inspection Clauses--Fixed Price (FAR Case 92-001)
This final rule amends the clauses at FAR 52.246-2, 52.246-4,
52.246-7, 52.246-12, and 52.246-13 to replace the phrase ``without
additional charge'' with the phrase ``at no increase in contract
price'' for clarity.
Item XXXIII--Termination for Convenience (FAR Case 91-102)
This final rule amends the clause at 52.249-2 to clarify language
pertaining to settlement of contract termination costs and rights of
appeal under the Disputes clause.
Corrections and Technical Amendments (Loose-leaf edition only)
Revisions to FAR Utility Matrix (FAR Case 92-617)
Section 52.301, Solicitation provisions and contract clauses
(Matrix), is amended in the Utility Services column. The matrix is not
carried in the Code of Federal Regulations and, therefore, not
published in the Federal Register. Subscribers to the loose-leaf
edition will receive matrix changes in FAC 90-39.
Table of Standard Forms and OMB Expiration Dates
Under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the Federal Acquisition Regulation (FAR)
Secretariat has obtained Office of Management and Budget (OMB)
clearance of all information collection requirements contained in the
FAR. In lieu of reissuing Standard and Optional Forms to reflect
extended OMB approval dates, and to reduce costs of reprinting forms,
FAR users should make appropriate pen-and-ink changes on any listed
forms containing expiration dates that differ from the entries
published below:
Table of Standard Forms and OMB Expiration Dates
------------------------------------------------------------------------
OMB
Standard form Edition control Expiration
No. date
------------------------------------------------------------------------
SF 24.............. Rev. 1/90.................. 9000-0045 9/30/98
SF 25.............. Rev. 1/90.................. 9000-0045 9/30/98
SF 25A............. Rev. 1/90.................. 9000-0045 9/30/98
SF 25B............. Rev. 10/83................. 9000-0045 9/30/98
SF 28.............. Rev. 1/90.................. 9000-0001 9/30/98
SF 34.............. Rev. 1/90.................. 9000-0045 9/30/98
SF 35.............. Rev. 1/90.................. 9000-0045 9/30/98
SF 119............. Rev. 1/90.................. 9000-0003 9/30/98
SF 129............. Rev. 6/90.................. 9000-0002 10/31/97
SF 254............. Rev. 11/92................. 9000-0004 3/31/99
SF 255............. Rev. 11/92................. 9000-0005 4/30/99
SF 273............. Rev. 8/90.................. 9000-0045 9/30/98
SF 274............. Rev. 8/90.................. 9000-0045 9/30/98
SF 275............. Rev. 8/90.................. 9000-0045 9/30/98
SF 294............. Rev. 10/95................. 9000-0006 3/31/98
SF 295............. Rev. 10/95................. 9000-0007 3/31/98
SF 1403............ Rev. 9/88.................. 9000-0011 10/31/97
SF 1404............ Rev. 9/88.................. 9000-0011 10/31/97
SF 1405............ Rev. 9/88.................. 9000-0011 10/31/97
SF 1406............ Rev. 9/88.................. 9000-0011 10/31/97
SF 1407............ Rev. 9/88.................. 9000-0011 10/31/97
SF 1408............ Rev. 9/88.................. 9000-0011 10/31/97
SF 1411............ Rev. 10/95................. 9000-0013 9/30/98
SF 1413............ Rev. 6/89.................. 9000-0014 4/30/98
SF 1416............ Rev. 1/90.................. 9000-0045 9/30/98
SF 1417............ Rev. 8/90.................. 9000-0037 9/30/98
SF 1423............ Rev. 12/88................. 9000-0015 5/31/98
SF 1424............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1426............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1427............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1428............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1429............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1430............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1431............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1432............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1433............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1434............ Rev. 7/89.................. 9000-0015 5/31/98
SF 1435............ Rev. 7/89.................. 9000-0012 5/31/98
SF 1436............ Rev. 7/89.................. 9000-0012 5/31/98
SF 1437............ Rev. 7/89.................. 9000-0012 5/31/98
SF 1438............ Rev. 7/89.................. 9000-0012 5/31/98
SF 1439............ Rev. 7/89.................. 9000-0012 5/31/98
SF 1440............ Rev. 7/89.................. 9000-0012 5/31/98
SF 1443............ Rev. 10/82................. 9000-0010 8/31/96
SF 1444............ Rev. 10/87................. 9000-0089 4/30/99
SF 1445............ Rev. 10/87................. 9000-0089 4/30/99
SF 1446............ Rev. 10/87................. 9000-0089 4/30/99
SF 1448............ 10/95 edition.............. 9000-0013 9/30/98
SF 1449............ 10/95 edition.............. 9000-0136 9/30/98
------------------------------------------------------------------------
[[Page 31616]]
Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Federal Acquisition Circular Number 90-39
Federal Acquisition Circular (FAC) 90-39 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 90-39 is effective
August 19, 1996, except for Item XV which was effective September 30,
1995, and Items I, IV, VI, VIII, X, XII through XIV, XVII, XXII through
XXV, and XXXI, which are effective June 20, 1996.
Dated: May 16, 1996.
Eleanor R. Spector,
Director, Defense Procurement.
Dated: May 16, 1996.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy, General Services
Administration.
Dated: May 6, 1996.
L.W. Bailets,
Acting Associate Administrator for Procurement National Aeronautics and
Space Administration.
[FR Doc. 96-14515 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P
