[Federal Register Volume 60, Number 140 (Friday, July 21, 1995)]
[Rules and Regulations]
[Pages 37777-37779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17938]
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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 32 and 37
[FAC 90-30; FAR Case 94-766; Item V]
RIN 9000-AG56
Federal Acquisition Regulation; Service Contract Funding
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This final rule is issued pursuant to the Federal Acquisition
Streamlining Act of 1994 (the Act) to implement a new authority for
funding of service contracts of certain executive branch agencies. This
regulatory action was subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
EFFECTIVE DATE: August 21, 1995.
FOR FURTHER INFORMATION CONTACT:
Mr. John Galbraith, Finance and Payment Team Leader, at (703) 697-6710,
in reference to this FAR case. For general information, contact the FAR
Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-30, FAR case 94-766.
SUPPLEMENTARY INFORMATION:
A. Background
The Federal Acquisition Streamlining Act of 1994 (the Act), Pub. L.
103-355, provides authorities that streamline the acquisition process
and minimize burdensome Government-unique requirements. Major changes
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).
Section 1073 of the Federal Acquisition Streamlining Act of 1994
(Public Law 103-355) provided new authority for executive branch
agencies other than the Department of Defense, United States Coast
Guard, and National Aeronautics and Space Administration to write
service contracts that cross fiscal years, and to fund those contracts
with one fiscal year's funds. Consult agency supplements for similar
authorities that may exist for the Department of Defense, United States
Coast Guard, and the National Aeronautics and Space Administration.
This new authority will allow most agencies to simplify the contracting
for, and administration of, service contracts by allowing single, fully
funded contract actions, in lieu of multiple contracts or complex
obligation arrangements. This new authority significantly simplifies
and streamlines the contracting process in this area. To implement this
authority, the FAR Council is amending FAR sections 32.703-3 and
37.106.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Pub. L. 98-577 and public comment
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.
(FAC 90-30, FAR case 94-766), 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 Parts 32 and 37
Government procurement.
Dated: July 17, 1995.
Capt. Barry L. Cohen, SC, USN,
Project Manager for the Implementation of the Federal Acquisition
Streamlining Act of 1994.
Therefore, 48 CFR Parts 32 and 37 are amended as set forth below:
PART 32--CONTRACT FINANCING
1. The authority citation for 48 CFR Parts 32 and 37 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).
2. Section 32.703-3 is revised to read as follows:
32.703-3 Contracts crossing fiscal years.
(a) A contract that is funded by annual appropriations may not
cross fiscal years, except in accordance with statutory authorization
(see 41 U.S.C. 11a, 31 U.S.C. 1308, 42 U.S.C. 2459a and 41 U.S.C. 253l
(see paragraph (b) of this section)), or when the contract calls for an
end product that cannot feasibly be subdivided for separate performance
in each fiscal year (e.g., contracts for expert or consultant
services).
(b) 41 U.S.C. 253l, as amended by Section 1073 of the Federal
Acquisition Streamlining Act of 1994 (Pub. L. 103-355), authorizes
heads of executive agencies other than the Department of Defense,
United States Coast Guard, and the National Aeronautics and Space
Administration (41 U.S.C. 252(a)(1)), to enter into a basic contract,
options, or orders under that contract for procurement of severable
services for a period that begins in one fiscal year and ends in the
next fiscal year if the period of the basic contract, options or orders
under that contract does not exceed one year each. Funds made available
for a fiscal year may be obligated for the total amount of an action
entered into under this authority (see 37.106(b)). Consult agency
supplements for similar authorities that may exist for the Department
of Defense, United States Coast Guard, or the National Aeronautics and
Space Administration.
PART 37--SERVICE CONTRACTING
3. Section 37.106 is revised to read as follows:
37.106 Funding and term of service contracts.
(a) When contracts for services are funded by annual
appropriations, the term of contracts so funded shall not extend beyond
the end of the fiscal year of the appropriation except when authorized
by law (see paragraph (b) of this section for certain service
contracts, 32.703-2 for contracts conditioned upon availability of
funds, and 32.703-3 for contracts crossing fiscal years).
(b) 41 U.S.C. 253l, as amended by Section 1073 of the Federal
Acquisition Streamlining Act of 1994 (Pub. L. 103-355), authorizes the
head of any executive agency except the Department of Defense, United
States Coast Guard, and the National Aeronautics and Space
Administration (41 U.S.C. 252(a)(1)), to enter into a basic contract,
options, or orders under that contract for procurement of severable
services for a period that begins in one fiscal year and ends in the
next fiscal year if the period of the basic contract, options or orders
under that contract does not exceed one year each. Funds made available
for a fiscal year may be obligated for the total amount of an action
entered into under this authority (see 32.703-3(b)). Consult agency
supplements for similar authorities that may exist for the Department
of Defense, United States
[[Page 37779]]
Coast Guard, or the National Aeronautics and Space Administration.
[FR Doc. 95-17938 Filed 7-20-95; 8:45 am]
BILLING CODE 6820-EP-M
