95-19857. Federal Acquisition Regulation; Introduction of Miscellaneous Amendments  

  • [Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
    [Rules and Regulations]
    [Pages 42648-42649]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-19857]
    
    
    
    
    [[Page 42647]]
    
    _______________________________________________________________________
    
    Part II
    
    Department of Defense
    
    General Services Administration
    
    National Aeronautics and Space Administration
    _______________________________________________________________________
    
    
    
    48 CFR Part 1, et al.
    
    
    
    Federal Acquisition Regulations; Final Rules
    
    Federal Register / Vol. 60, No. 158 / Wednesday, August 16, 1995 / 
    Rules and Regulations
    
    [[Page 42648]]
    
    
    DEPARTMENT OF DEFENSE
    
    GENERAL SERVICES ADMINISTRATION
    
    NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
    
    48 CFR Chapter 1
    
    [Federal Acquisition Circular 90-31]
    
    
    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 rules.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This document serves to introduce the final rules which follow 
    and which comprise Federal Acquisition Circular (FAC) 90-31. The 
    Federal Acquisition Regulatory Council has agreed to issue FAC 90-31 to 
    amend the Federal Acquisition Regulation (FAR).
    
    DATES: For effective dates, see individual documents following this 
    one.
    
    FOR FURTHER INFORMATION CONTACT:The team leader whose name appears 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 90-31 and FAR case number(s).
    
    SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-31 amends 
    the Federal Acquisition Regulation (FAR) as specified below:
    
    ------------------------------------------------------------------------
      Item            Subject             FAR case          Team leader     
    ------------------------------------------------------------------------
    I         Consolidation and        94-740         Tucciarone (703) 767- 
               Revision of the                         2270                 
               Authority to Examine                                         
               Records.                                                     
    II        Contract Award           94-701         Rider (703) 614-1634  
               Implementation.                                              
    III       Penalties on             94-751         Belton (703) 602-2357 
               Unallowable Indirect                                         
               Costs.                                                       
    IV        Implementation of        94-754         Belton (703) 602-2357 
               Various Cost Principle                                       
               Provisions.                                                  
    V         Entertainment, Gift,     94-750         Belton (703) 602-2357 
               and Recreation Costs                                         
               for Contractor                                               
               Employees.                                                   
    VI        Contractor Overhead      94-752         Belton (703) 602-2357 
               Certification.                                               
    VII       Technical Amendments...                                       
    ------------------------------------------------------------------------
    
    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--Consolidation and Revision of the Authority to Examine Records 
    (FAR Case 94-740)
    
        This final rule implements Sections 2201(a), 2251(a), 4102(c), and 
    4103(d) of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 
    103-355). The rule (1) permits contractors to store records in 
    electronic form; (2) restricts contracting officers from requesting a 
    preaward audit of indirect costs if the results of a recent audit are 
    available; (3) deletes the clause at 52.215-1, Examination of Records 
    by Comptroller General; (4) and revises the clauses at 52.214-26, Audit 
    and Records--Sealed Bidding, and 52.215-2, Audit and Records--
    Negotiation, to provide for examination of records by the Comptroller 
    General.
    
    Item II--Contract Award Implementation (FAR Case 94-701)
    
        This final rule implements Sections 1002, 1003, 1005, 1011, 1012, 
    1013, 1014, 1052, 1053, 1055, 1061, 1062, 1063, 1064, 1555, 7203, and 
    10004 of Pub. L. 103-355. The rule (1) requires agencies to report 
    additional information on procurements exceeding $25,000; (2) expands 
    the criteria for establishing or maintaining alternative sources of 
    supplies or services; (3) permits use of other than full and open 
    competition to acquire expert services for litigation; (4) places 
    limitations on the use of other than full and open competition when 
    authorized or required by statute; (5) clarifies approval requirements 
    for written justifications for other than full and open competition; 
    (6) revises procedures for specifying evaluation factors and subfactors 
    in solicitations, for conducting written or oral discussions, and for 
    providing postaward notices and debriefings to offerors; (7) requires a 
    written determination before providing for evaluation of options in 
    sealed bid procurements; (8) permits nonprofit agencies for the blind 
    or severely disabled to use Government supply sources in performing 
    contracts under the Javits-Wagner-O'Day Act; and (9) allows award 
    without discussion to other than the lowest overall cost offeror.
    
    Item III--Penalties on Unallowable Indirect Costs (FAR Case 94-751)
    
        This final rule implements Sections 2101 and 2151 of Pub. L. 103-
    355. The rule contains procedures for the assessment of penalties on 
    unallowable indirect costs under contracts exceeding $500,000. These 
    procedures are essentially the same as those contained in the Defense 
    FAR Supplement.
    
    Item IV--Implementation of Various Cost Principle Provisions (FAR Case 
    94-754)
    
        This final rule implements Section 2101 of Pub. L. 103-355. The 
    rule adds the costs of lobbying the legislative body of a political 
    subdivision of a state to the list of unallowable costs; adds the cost 
    of ``conventions'' to the costs to be clarified in the cost principles; 
    and expands the coverage to the Coast Guard and the National 
    Aeronautics and Space Administration. Section 2151 amends 41 U.S.C. 256 
    to include all the provisions of 10 U.S.C. 2324, as amended by Section 
    2101. Therefore, the provisions are made generally applicable to all 
    other executive agencies. The new FAR language, with only minor 
    variations, was transferred from the current coverage in the Defense 
    Federal Acquisition Regulation Supplement.
    
    Item V--Entertainment, Gift, and Recreation Costs for Contractor 
    Employees (FAR Case 94-750)
    
        This rule finalizes the interim rule published in FAC 90-25. The 
    rule implements Section 2192 of Pub. L. 103-355 to revise the cost 
    principles governing entertainment, gift, and recreation costs for 
    contractor employees. The final rule differs from the interim rule in 
    that it (1) clarifies that gifts do not include certain employee 
    performance and achievement awards; (2) clarifies the restrictions 
    
    [[Page 42649]]
    pertaining to entertainment and recreation costs; and (3) eliminates 
    the requirement that certain costs are allowable only if the net amount 
    per employee is reasonable. This final rule replaces the interim rule 
    in its entirety for any contracts containing the interim rule. Thus, 
    the provisions of the interim rule will not apply to costs incurred 
    under any contract under any circumstances.
    
    Item VI--Contractor Overhead Certification (FAR Case 94-752)
    
        This final rule implements Section 2151 of Pub. L. 103-355. The 
    rule contains procedures for obtaining contractor certification of a 
    proposal to establish or modify billing rates or to establish final 
    indirect cost rates. These procedures are essentially the same as those 
    contained in the Defense FAR Supplement.
    
        Dated: August 7, 1995.
    Edward C. Loeb,
    Deputy Project Manager for the Implementation of the Federal 
    Acquisition Streamlining Act of 1994.
    Federal Acquisition Circular
    
    [Number 90-31]
        Federal Acquisition Circular (FAC) 90-31 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 90-31 is effective 
    October 1, 1995, except for Item VII which is effective August 16, 
    1995. FAC Items I through VI are applicable for solicitations issued on 
    or after October 1, 1995. Contracting officers may, at their 
    discretion, include the provisions and clauses in FAC Items I through 
    VI in solicitations issued before October 1, 1995, for contracts 
    expected to be awarded on or after October 1, 1995.
    
        Dated: August 3, 1995.
    Eleanor R. Spector,
    Director, Defense Procurement.
    
        Dated: August 3, 1995.
    Ida M. Ustad,
    Associate Administrator for Acquisition Policy, General Services 
    Administration.
    
        Dated: August 7, 1995.
    Deidre A. Lee,
    Associate Administrator for Procurement, National Aeronautics & Space 
    Administration.
    [FR Doc. 95-19857 Filed 8-15-95; 8:45 am]
    BILLING CODE 6820-EP-M
    
    

Document Information

Published:
08/16/1995
Department:
National Aeronautics and Space Administration
Entry Type:
Rule
Action:
Summary presentation of final rules.
Document Number:
95-19857
Dates:
For effective dates, see individual documents following this one.
Pages:
42648-42649 (2 pages)
Docket Numbers:
Federal Acquisition Circular 90-31
PDF File:
95-19857.pdf
CFR: (3)
48 CFR None
48 CFR None
48 CFR 1