[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34057-34059]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn98-17]
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_______________________________________________________________________
Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Chapter 1
Federal Acquisition Regulation (FAR); Final Rule
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 97-05; 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, 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) 97-05. A companion document, the Small Entity Compliance
Guide (SECG), follows this FAC. The FAC, including the SECG, 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 97-05 and
specific FAR case number(s). Interested parties may also visit our
website at http://www.arnet.gov/far.
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Item Subject FAR case Analyst
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I Subcontract Consent.................... 95-011......... Klein
II Availability of Specifications.......... 97-034......... DeStefano
III Liquidated Damages...................... 89-042/97-300.. Moss
IV Limits on Fee for Cost-Plus-Incentive-Fee 97-042......... DeStefano
and Cost-Plus-Award-Fee Contracts.
V Rehabilitation Act, ..............96-610......... O'Neill
Workers With Disabilities (Interim).
VI Trade Agreements Thresholds...............97-044......... Linfield
VII Restrictions on Purchases from Sudan.... 97-301........ Linfield
VIII Software Copyrights..................... 97-614......... O'Neill
IX Travel Reimbursement.................... 97-007......... Nelson
X No-Cost Value Engineering ............. 96-011.. ...... Klein
Change Proposals (Interim).
XI.. Technical Amendments.
XII. Availability of FAR via Internet.
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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 97-05 amends the Federal Acquisition
Regulation (FAR) as specified below:
Item I--Subcontract Consent (FAR Case 95-011)
This final rule amends FAR Parts 4, 22, 35, 36, 44, and 52 to
reduce requirements for consent to subcontract. The rule eliminates
consent requirements for contractors that have an approved purchasing
system, except when specific contracts requiring consent are identified
by the contracting officer; eliminates consent requirements for fixed-
price incentive contracts and fixed-price redeterminable contracts; and
increases, to the simplified acquisition threshold, the dollar level at
which consent requirements are included in time-and-materials, labor-
hour, and letter contracts.
Item II--Availability of Specifications (FAR Case 97-034)
This final rule amends FAR Parts 9 and 11 and the provisions at
52.211-1, 52.211-2, and 52.212-1 to update addresses and other
information regarding the availability of specifications, standards,
and item descriptions that may be cited in Government solicitations and
contracts. In addition, the rule clarifies the pricing policy regarding
specifications, standards, and commercial item descriptions issued by
GSA.
Item III--Liquidated Damages (FAR Cases 89-042 and 97-300)
This final rule amends FAR Parts 11, 19, 52, and 53 to clarify
policy on liquidated damages and commercial subcontracting plans
pertaining to requirements for subcontracting with small, small
disadvantaged, and women-owned small business concerns. The rule
implements Section 304 of the Business Opportunity Development Reform
Act of 1988 (Pub. L. 100-656) and OFPP Policy Letter 95-1,
Subcontracting Plans for Companies Supplying Commercial Items. The
interim rule published in FAC 84-50, FAR case 89-042, 54 FR 30708, July
21, 1989, has been merged with this final rule.
Item IV--Limits on Fee for Cost-Plus-Incentive-Fee and Cost-Plus-
Award-Fee Contracts (FAR Case 97-042)
This final rule amends FAR Part 16 to clarify fee limitations
pertaining to cost-reimbursement contracts. The FAR Part 15 rewrite in
FAC 97-02 eliminated non-statutory fee limitations for cost-plus-
incentive-fee and cost-plus-award-fee contracts. This final rule makes
conforming changes to FAR Part 16.
Item V--Rehabilitation Act, Workers With Disabilities (FAR Case 96-
610)
This interim rule amends FAR Subpart 22.14 and the clauses at
52.212-5 and 52.222-36 to implement revised Department of Labor
regulations regarding affirmative action to employ and advance in
employment qualified individuals with disabilities. The dollar
threshold for use of the clause at 52.222-36 has been increased from
$2,500 to $10,000.
Item VI--Trade Agreements Thresholds (FAR Case 97-044)
This final rule amends FAR Part 25 to implement revised thresholds
for application of the Trade Agreements Act and the North American Free
Trade Agreement, as published by the Office of the United States Trade
Representative in the Federal Register on January 14, 1998 (63 FR
2295).
Item VII--Restrictions on Purchases from Sudan (FAR Case 97-301)
This final rule amends FAR 25.701 and the clause at 52.225-11 to
add Sudan to the list of countries whose products are banned from
importation into the United States. This rule implements Executive
Order 13067, dated November 3, 997.
[[Page 34059]]
Item VIII--Software Copyrights (FAR Case 97-614)
This final rule amends FAR 27.405 to add contracts for certain
computer software programs to the list of examples of contracts for
special works to which the Government may obtain copyrights.
Item IX--Travel Reimbursement (FAR Case 97-007)
The interim rule published as Item IX of FAC 97-03 is converted to
a final rule without change. The rule amends FAR 31.205-46 to increase
from $25.00 to $75.00 the threshold at which contractor personnel must
provide a receipt to support travel expenditures.
Item X--No-Cost Value Engineering Change Proposals (FAR Case 96-
011)
This interim rule revises FAR 48.104-3 to clarify that no-cost
value engineering change proposals (VECPs) may be used when, in the
contracting officer's judgment, reliance on other VECP approaches
likely would not be more cost-effective, and the no-cost settlement
would provide adequate consideration to the Government.
Item XI--Technical Amendments
Amendments are being made at FAR 5.201(b)(2), 8.404(a), 31.002, and
45.607-2(b) to update references and make editorial changes.
Item XII--Availability of FAR via Internet
The FAR, along with Federal Acquisition Circulars and other
informational items, is available on the Internet at http://
www.arnet.gov/far.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
June 22, 1998.
Federal Acquisition Circular (FAC) 97-05 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 97-05 are effective
August 21, 1998, except for Items V, X, and XI, which are effective
June 22, 1998.
Dated: June 11, 1998.
Eleanor R. Spector,
Director, Defense Procurement.
Dated: June 11, 1998.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General
Services Administration.
Dated: June 10, 1998.
Tom Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics
and Space Administration.
[FR Doc. 98-16111 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34059-34062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn98-18]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 22, 35, 36, 44, and 52
[FAC 97-05; FAR Case 95-011; Item I]
RIN 9000-AH57
Federal Acquisition Regulation; Subcontract Consent
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to reduce requirements for
consent to subcontract. The rule eliminates the consent requirements
for contractors that have an approved purchasing system, except when
specific subcontracts requiring consent are identified by the
contracting officer; eliminates consent requirements for fixed-price
incentive contracts and fixed-price redeterminable contracts; and
increases, to the simplified acquisition threshold, the dollar level at
which consent requirements are included in time-and-materials, labor-
hour, and letter contracts. This regulatory action was not subject to
Office of Management and Budget review under Executive Order 12866,
dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAC 97-05, FAR case 95-011.
SUPPLEMENTARY INFORMATION:
A. Background
A proposed rule was published in the Federal Register on April 21,
1997 (62 FR 19465). Comments were received from nine respondents. All
comments were considered in the development of this final rule.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because the consent to
subcontract requirement has a very small administrative cost that is
passed along to the Government as part of the contract price, and this
rule reduces the requirement for consent to subcontract.
C. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to
apply because the final rule contains information collection
requirements. Accordingly, a request for approval of the information
collection requirements was submitted to the Office of Management and
Budget (OMB) and approved through June 30, 2000, under OMB Control
Number 9000-0149. Public comments concerning this request were invited
through Federal Register notice 62 FR 19465, April 21, 1997, and no
comments were received.
List of Subjects in 48 CFR Parts 4, 22, 35, 36, 44, and 52
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 4, 22, 35, 36, 44, and 52 are amended as
set forth below:
1. The authority citation for 48 CFR Parts 4, 22, 35, 6, 44, and 52
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).
[[Page 34060]]
PART 4--ADMINISTRATIVE MATTERS
4.705-3 [Amended]
2. Section 4.705-3 is amended in paragraph (f) by revising the
parenthetical to read ``(see 52.244-2)''.
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.810 [Amended]
3. Section 22.810 is amended in paragraph (g) by removing the
phrase ``paragraph (a), (b), or (c) of 44.204'' and adding in its place
``44.204(a)''.
PART 35--RESEARCH AND DEVELOPMENT CONTRACTING
4. Section 35.009 is amended by revising the last sentence to read
as follows:
35.009 Subcontracting research and development effort.
* * * The clause at 52.244-2, Subcontracts, prescribed for certain
types of contracts at 44.204(a), requires the contracting officer's
prior approval for the placement of certain subcontracts.
PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
5. Section 36.606 is amended by revising paragraph (e) to read as
follows:
36.606 Negotiations.
* * * * *
(e) Because selection of firms is based upon qualifications, the
extent of any subcontracting is an important negotiation topic. The
clause prescribed at 44.204(b), Subcontractors and Outside Associates
and Consultants (Architect-Engineer Services) (see 52.244-4), limits a
firm's subcontracting to firms agreed upon during negotiations.
* * * * *
PART 44--SUBCONTRACTING POLICIES AND PROCEDURES
6. Section 44.000 is revised to read as follows:
44.000 Scope of part.
(a) This part prescribes policies and procedures for consent to
subcontracts or advance notification of subcontracts, and for review,
evaluation, and approval of contractors' purchasing systems.
(b) The consent and advance notification requirements of subpart
44.2 are not applicable to prime contracts for commercial items
acquired pursuant to part 12.
44.102 [Removed]
7. Section 44.102 is removed.
44.201 Consent and advance notification requirements.
8. The heading of section 44.201 is revised to read as set forth
above.
9. Sections 44.201-1 and 44.201-2 are revised to read as follows:
44.201-1 Consent requirements.
(a) If the contractor has an approved purchasing system, consent is
required for subcontracts specifically identified by the contracting
officer in the subcontracts clause of the contract. The contracting
officer may require consent to subcontract if the contracting officer
has determined that an individual consent action is required to protect
the Government adequately because of the subcontract type, complexity,
or value, or because the subcontract needs special surveillance. These
can be subcontracts for critical systems, subsystems, components, or
services. Subcontracts may be identified by subcontract number or by
class of items (e.g., subcontracts for engines on a prime contract for
airframes).
(b) If the contractor does not have an approved purchasing system,
consent to subcontract is required for cost-reimbursement, time-and-
materials, labor-hour, or letter contracts, and also for unpriced
actions (including unpriced modifications and unpriced delivery orders)
under fixed-price contracts that exceed the simplified acquisition
threshold, for--
(1) Cost-reimbursement, time-and-materials, or labor-hour
subcontracts; and
(2) Fixed-price subcontracts that exceed--
(i) For the Department of Defense, the Coast Guard, and the
National Aeronautics and Space Administration, the greater of the
simplified acquisition threshold or 5 percent of the total estimated
cost of the contract; or
(ii) For civilian agencies other than the Coast Guard and the
National Aeronautics and Space Administration, either the simplified
acquisition threshold or 5 percent of the total estimated cost of the
contract.
(c) Consent may be required for subcontracts under prime contracts
for architect-engineer services.
(d) The contracting officer's written authorization for the
contractor to purchase from Government sources (see part 51)
constitutes consent.
44.201-2 Advance notification requirements.
Under cost-reimbursement contracts, even if the contractor has an
approved purchasing system and consent to subcontract is not required
under 44.201-1, the contractor is required by statute (10 U.S.C.
2306(e) or 41 U.S.C. 254(b)) to notify the agency before the award of--
(a) Any cost-plus-fixed-fee subcontract; or
(b) Any fixed-price subcontract that exceeds--
(1) For the Department of Defense, the Coast Guard, and the
National Aeronautics and Space Administration, the greater of the
simplified acquisition threshold or 5 percent of the total estimated
cost of the contract; or
(2) For civilian agencies other than the Coast Guard and the
National Aeronautics and Space Administration, either the simplified
acquisition threshold or 5 percent of the total estimated cost of the
contract.
44.201-3 and 44.201-4 [Removed]
10. Sections 44.201-3 and 44.201-4 are removed.
11. Section 44.202-1 is amended by revising paragraphs (b) and (c)
to read as follows:
44.202-1 Responsibilities.
* * * * *
(b) The contracting officer responsible for consent shall review
the contractor's notification and supporting data to ensure that the
proposed subcontract is appropriate for the risks involved and
consistent with current policy and sound business judgment.
(c) Designation of specific subcontractors during contract
negotiations does not in itself satisfy the requirements for advance
notification or consent pursuant to the clause at 52.244-2. However,
if, in the opinion of the contracting officer, the advance notification
or consent requirements were satisfied for certain subcontracts
evaluated during negotiations, the contracting officer shall identify
those subcontracts in paragraph (k) of the clause at 52.244-2.
44.202-2 [Amended]
12. Section 44.202-2 is amended in the introductory text of
paragraph (a) by adding ``, at a minimum,'' after the word ``shall''.
13. Section 44.204 is revised to read as follows:
44.204 Contract clauses.
(a)(1) The contracting officer shall insert the clause at 52.244-2,
Subcontracts, in solicitations and contracts when contemplating--
(i) A cost-reimbursement contract;
(ii) A letter contract that exceeds the simplified acquisition
threshold;
[[Page 34061]]
(iii) A fixed-price contract that exceeds the simplified
acquisition threshold under which unpriced contract actions (including
unpriced modifications or unpriced delivery orders) are anticipated;
(iv) A time-and-materials contract that exceeds the simplified
acquisition threshold; or
(v) A labor-hour contract that exceeds the simplified acquisition
threshold.
(2) If a cost-reimbursement contract is contemplated--
(i) For the Department of Defense, the Coast Guard, and the
National Aeronautics and Space Administration, the contracting officer
shall use the clause with its Alternate I; or
(ii) For civilian agencies other than the Coast Guard and the
National Aeronautics and Space Administration, the contracting officer
shall use the clause with its Alternate II.
(3) Use of this clause is not required in--
(i) Fixed-price architect-engineer contracts; or
(ii) Contracts for mortuary services, refuse services, or shipment
and storage of personal property, when an agency-prescribed clause on
approval of subcontractors' facilities is required.
(b) The contracting officer may insert the clause at 52.244-4,
Subcontractors and Outside Associates and Consultants (Architect-
Engineer Services), in fixed-price architect-engineer contracts.
(c) The contracting officer shall, when contracting by negotiation,
insert the clause at 52.244-5, Competition in Subcontracting, in
solicitations and contracts when the contract amount is expected to
exceed the simplified acquisition threshold, unless--
(1) A firm-fixed-price contract, awarded on the basis of adequate
price competition or whose prices are set by law or regulation, is
contemplated; or
(2) A time-and-materials, labor-hour, or architect-engineer
contract is contemplated.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.244-1 [Removed and Reserved]
14. Section 52.244-1 is removed and reserved.
15. Section 52.244-2 is revised to read as follows:
52.244-2 Subcontracts.
As prescribed in 44.204(a)(1), insert the following clause:
SUBCONTRACTS (AUG 1998)
(a) Definitions. As used in this clause--
Approved purchasing system means a Contractor's purchasing
system that has been reviewed and approved in accordance with Part
44 of the Federal Acquisition Regulation (FAR).
Consent to subcontract means the Contracting Officer's written
consent for the Contractor to enter into a particular subcontract.
Subcontract means any contract, as defined in FAR Subpart 2.1,
entered into by a subcontractor to furnish supplies or services for
performance of the prime contract or a subcontract. It includes, but
is not limited to, purchase orders, and changes and modifications to
purchase orders.
(b) This clause does not apply to subcontracts for special test
equipment when the contract contains the clause at FAR 52.245-18,
Special Test Equipment.
(c) When this clause is included in a fixed-price type contract,
consent to subcontract is required only on unpriced contract actions
(including unpriced modifications or unpriced delivery orders), and
only if required in accordance with paragraph (d) or (e) of this
clause.
(d) If the Contractor does not have an approved purchasing
system, consent to subcontract is required for any subcontract
that--
(1) Is of the cost-reimbursement, time-and-materials, or labor-
hour type; or
(2) Is fixed-price and exceeds--
(i) For a contract awarded by the Department of Defense, the
Coast Guard, or the National Aeronautics and Space Administration,
the greater of the simplified acquisition threshold or 5 percent of
the total estimated cost of the contract; or
(ii) For a contract awarded by a civilian agency other than the
Coast Guard and the National Aeronautics and Space Administration,
either the simplified acquisition threshold or 5 percent of the
total estimated cost of the contract.
(e) If the Contractor has an approved purchasing system, the
Contractor nevertheless shall obtain the Contracting Officer's
written consent before placing the following subcontracts:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(f)(1) The Contractor shall notify the Contracting Officer
reasonably in advance of placing any subcontract or modification
thereof for which consent is required under paragraph (c), (d), or
(e) of this clause, including the following information:
(i) A description of the supplies or services to be
subcontracted.
(ii) Identification of the type of subcontract to be used.
(iii) Identification of the proposed subcontractor.
(iv) The proposed subcontract price.
(v) The subcontractor's current, complete, and accurate cost or
pricing data and Certificate of Current Cost or Pricing Data, if
required by other contract provisions.
(vi) The subcontractor's Disclosure Statement or Certificate
relating to Cost Accounting Standards when such data are required by
other provisions of this contract.
(vii) A negotiation memorandum reflecting--
(A) The principal elements of the subcontract price
negotiations;
(B) The most significant considerations controlling
establishment of initial or revised prices;
(C) The reason cost or pricing data were or were not required;
(D) The extent, if any, to which the Contractor did not rely on
the subcontractor's cost or pricing data in determining the price
objective and in negotiating the final price;
(E) The extent to which it was recognized in the negotiation
that the subcontractor's cost or pricing data were not accurate,
complete, or current; the action taken by the Contractor and the
subcontractor; and the effect of any such defective data on the
total price negotiated;
(F) The reasons for any significant difference between the
Contractor's price objective and the price negotiated; and
(G) A complete explanation of the incentive fee or profit plan
when incentives are used. The explanation shall identify each
critical performance element, management decisions used to quantify
each incentive element, reasons for the incentives, and a summary of
all trade-off possibilities considered.
(2) The Contractor is not required to notify the Contracting
Officer in advance of entering into any subcontract for which
consent is not required under paragraph (c), (d), or (e) of this
clause.
(g) Unless the consent or approval specifically provides
otherwise, neither consent by the Contracting Officer to any
subcontract nor approval of the Contractor's purchasing system shall
constitute a determination--
(1) Of the acceptability of any subcontract terms or conditions;
(2) Of the allowability of any cost under this contract; or
(3) To relieve the Contractor of any responsibility for
performing this contract.
(h) No subcontract or modification thereof placed under this
contract shall provide for payment on a cost-plus-a-percentage-of-
cost basis, and any fee payable under cost-reimbursement type
subcontracts shall not exceed the fee limitations in FAR 15.404-
4(c)(4)(i).
(i) The Contractor shall give the Contracting Officer immediate
written notice of any action or suit filed and prompt notice of any
claim made against the Contractor by any subcontractor or vendor
that, in the opinion of the Contractor, may result in litigation
related in any way to this contract, with respect to which the
Contractor may be entitled to reimbursement from the Government.
(j) The Government reserves the right to review the Contractor's
purchasing system as set forth in FAR Subpart 44.3.
(k) Paragraphs (d) and (f) of this clause do not apply to the
following subcontracts, which were evaluated during negotiations:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(End of clause)
Alternate I (Aug 1998). As prescribed in 44.204(a)(2)(i),
substitute the following paragraph (f)(2) for paragraph (f)(2) of
the basic clause:
[[Page 34062]]
(f)(2) If the Contractor has an approved purchasing system and
consent is not required under paragraph (c), (d), or (e) of this
clause, the Contractor nevertheless shall notify the Contracting
Officer reasonably in advance of entering into any (i) cost-plus-
fixed-fee subcontract, or (ii) fixed-price subcontract that exceeds
the greater of the simplified acquisition threshold or 5 percent of
the total estimated cost of this contract. The notification shall
include the information required by paragraphs (f)(1)(i) through
(f)(1)(iv) of this clause.
Alternate II (Aug 1998). As prescribed in 44.204(a)(2)(ii),
substitute the following paragraph (f)(2) for paragraph (f)(2) of
the basic clause:
(f)(2) If the Contractor has an approved purchasing system and
consent is not required under paragraph (c), (d), or (e) of this
clause, the Contractor nevertheless shall notify the Contracting
Officer reasonably in advance of entering into any (i) cost-plus-
fixed-fee subcontract, or (ii) fixed-price subcontract that exceeds
either the simplified acquisition threshold or 5 percent of the
total estimated cost of this contract. The notification shall
include the information required by paragraphs (f)(1)(i) through
(f)(1)(iv) of this clause.
52.244-3 [Removed and reserved]
16. Section 52.244-3 is removed and reserved.
17. Section 52.244-4 is amended by revising the section heading,
introductory paragraph, and clause heading and date to read as follows:
52.244-4 Subcontractors and outside associates and consultants
(Architect-engineer services).
As prescribed in 44.204(b), insert the following clause:
SUBCONTRACTORS AND OUTSIDE ASSOCIATES AND CONSULTANTS (ARCHITECT-
ENGINEER SERVICES) (AUG 1998)
* * * * *
(End of clause)
52.244-5 [Amended]
18. Section 52.244-5 is amended in the introductory paragraph by
revising ``44.204(e)'' to read ``44.204(c)''.
[FR Doc. 98-16112 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34062-34063]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn98-19]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 9, 11, and 52
[FAC 97-05; FAR Case 97-034; Item II]
RIN 9000-AI00
Federal Acquisition Regulation; Availability of Specifications
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to update information
regarding the availability of specifications, standards, and item
descriptions cited in Government solicitations and contracts. This
regulatory action was not subject to Office of Management and Budget
review under Executive Order 12866, dated September 30, 1993, and is
not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Mr. Ralph DeStefano, Procurement Analyst, at (202)
501-1758. Please cite FAC 97-05, FAR case 97-034.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR Parts 9 and 11 and the provisions at
52.211-1, 52.211-2, and 52.212-1 to update information regarding the
availability of specifications, standards, and item descriptions that
may be cited in Government solicitations and contracts. New
organization names, addresses, and telephone numbers, and a new method
of obtaining information on the World Wide Web have been added. In
addition, the rule clarifies the pricing policy regarding
specifications, standards, and commercial item descriptions issued by
GSA.
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 publication for
public comments is not required. However, comments from small entities
concerning the affected FAR subparts will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and
should cite 5 U.S.C. 601, et seq. (FAC 97-05, FAR case 97-034), 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 9, 11, and 52
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 9, 11, and 52 are amended as set forth
below:
1. The authority citation for 48 CFR Parts 9, 11, and 52 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).
PART 9--CONTRACTOR QUALIFICATIONS
2. Section 9.203 is amended by revising paragraphs (c)(1) and (d)
to read as follows:
9.203 QPL's, QML's, and QBL's.
* * * * *
(c) * * *
(1) Federal Standardization Manual, FSPM-0001.
* * * * *
(d) The publications listed in paragraphs (b) and (c) of this
section are sold to the public. The publications in paragraphs (b)(1)
and (c)(1) of this section may be obtained from the addressee in
11.201(d)(1). The publications in paragraphs (b)(2) and (c)(2) of this
section may be obtained from the addressee in 11.201(d)(2).
PART 11--DESCRIBING AGENCY NEEDS
3. Section 11.102 is revised to read as follows:
11.102 Standardization program.
Agencies shall select existing requirements documents or develop
new requirements documents that meet the needs of the agency in
accordance
[[Page 34063]]
with the guidance contained in the Federal Standardization Manual,
FSPM-0001, and, for DoD components, DoD 4120.3-M, Defense
Standardization Program Policies and Procedures. The Federal
Standardization Manual may be obtained from the General Services
Administration (see address in 11.201(d)(1)). DoD 4120.3-M may be
obtained from DoD (see address in 11.201(d)(2)).
4. Section 11.201 is amended by revising paragraph (d) and the
first sentence of paragraph (e) to read as follows:
11.201 Identification and availability of specifications.
* * * * *
(d)(1) The GSA Index of Federal Specifications, Standards and
Commercial Item Descriptions, FPMR Part 101-29, may be purchased from
the--General Services Administration, Federal Supply Service,
Specifications Section, Suite 8100, 470 East L'Enfant Plaza, SW,
Washington, DC 20407, Telephone (202) 619-8925.
(2) The DoDISS may be purchased from the--Department of Defense
Single Stock Point (DoDSSP), Building 4, Section D, 700 Robbins Avenue,
Philadelphia, PA 19111-5094, Telephone (215) 697-2667/2179.
(e) Agencies may generally obtain from the GSA Specifications
Section or DoDSSP those nongovernment (voluntary) standards adopted for
use by Federal or Defense activities. * * *
5. Section 11.204 is amended by revising paragraphs (a) and (b) to
read as follows:
11.204 Solicitation provisions and contract clauses.
(a) The contracting officer shall insert the provision at 52.211-1,
Availability of Specifications Listed in the GSA Index of Federal
Specifications, Standards and Commercial Item Descriptions, FPMR Part
101-29, in solicitations that cite specifications listed in the Index
that are not furnished with the solicitation.
(b) The contracting officer shall insert the provision at 52.211-2,
Availability of Specifications Listed in the DoD Index of
Specifications and Standards (DoDISS) and Descriptions Listed in the
Acquisition Management Systems and Data Requirements Control List, DoD
5010.12-L, in solicitations that cite specifications listed in the
DoDISS or DoD 5010.12-L that are not furnished with the solicitation.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
6. Sections 52.211-1 and 52.211-2 are revised to read as follows:
52.211-1 Availability of Specifications Listed in the GSA Index of
Federal Specifications, Standards and Commercial Item Descriptions,
FPMR Part 101-29.
As prescribed in 11.204(a), insert the following provision:
AVAILABILITY OF SPECIFICATIONS LISTED IN THE GSA INDEX OF FEDERAL
SPECIFICATIONS, STANDARDS AND COMMERCIAL ITEM DESCRIPTIONS, FPMR PART
101-29 (AUG 1998)
(a) The GSA Index of Federal Specifications, Standards and
Commercial Item Descriptions, FPMR Part 101-29, and copies of
specifications, standards, and commercial item descriptions cited in
this solicitation may be obtained for a fee by submitting a request
to--GSA Federal Supply Service, Specifications Section, Suite 8100,
470 East L'Enfant Plaza, SW, Washington, DC 20407, Telephone (202)
619-8925, Facsimile (202) 619-8978.
(b) If the General Services Administration, Department of
Agriculture, or Department of Veterans Affairs issued this
solicitation, a single copy of specifications, standards, and
commercial item descriptions cited in this solicitation may be
obtained free of charge by submitting a request to the addressee in
paragraph (a) of this provision. Additional copies will be issued
for a fee.
(End of provision)
52.211-2 Availability of Specifications Listed in the DoD Index of
Specifications and Standards (DoDISS) and Descriptions Listed in the
Acquisition Management Systems and Data Requirements Control List, DoD
5010.12-L.
As prescribed in 11.204(b), insert the following provision:
AVAILABILITY OF SPECIFICATIONS LISTED IN THE DOD INDEX OF
SPECIFICATIONS AND STANDARDS (DODISS) AND DESCRIPTIONS LISTED IN THE
ACQUISITION MANAGEMENT SYSTEMS AND DATA REQUIREMENTS CONTROL LIST, DOD
5010.12-L (AUG 1998)
(a) Copies of specifications, standards, and data item
descriptions cited in this solicitation may be obtained for a fee by
submitting a request to the--Department of Defense Single Stock
Point (DoDSSP), Building 4, Section D, 700 Robbins Avenue,
Philadelphia, PA 19111-5094, Telephone (215) 697-2667/2179,
Facsimile (215) 697-1462.
(b) Order forms, pricing information, and customer support
information may be obtained--
(1) By telephone at (215) 697-2667/2179; or
(2) Through the DoDSSP Internet site at http://
www.dodssp.daps.mil.
(End of provision)
7. Section 52.212-1 is amended by revising the date of the
provision and paragraph (i) to read as follows:
52.212-1 Instructions to Offerors--Commercial Items.
* * * * *
INSTRUCTIONS TO OFFERORS--COMMERCIAL ITEMS (AUG 1998)
* * * * *
(i) Availability of requirements documents cited in the
solicitation. (1)(i) The GSA Index of Federal Specifications,
Standards and Commercial Item Descriptions, FPMR Part 101-29, and
copies of specifications, standards, and commercial item
descriptions cited in this solicitation may be obtained for a fee by
submitting a request to--GSA Federal Supply Service Specifications
Section, Suite 8100, 470 East L'Enfant Plaza, SW, Washington, DC
20407, Telephone (202) 619-8925, Facsimile (202) 619-8978.
(ii) If the General Services Administration, Department of
Agriculture, or Department of Veterans Affairs issued this
solicitation, a single copy of specifications, standards, and
commercial item descriptions cited in this solicitation may be
obtained free of charge by submitting a request to the addressee in
paragraph (i)(1)(i) of this provision. Additional copies will be
issued for a fee.
(2) The DoD Index of Specifications and Standards (DoDISS) and
documents listed in it may be obtained from the--Department of
Defense Single Stock Point (DoDSSP), Building 4, Section D, 700
Robbins Avenue, Philadelphia, PA 19111-5094, Telephone (215) 697-
2667/2179, Facsimile (215) 697-1462.
(i) Automatic distribution may be obtained on a subscription
basis.
(ii) Order forms, pricing information, and customer support
information may be obtained--
(A) By telephone at (215) 697-2667/2179; or
(B) Through the DoDSSP Internet site at http://
www.dodssp.daps.mil.
(3) Nongovernment (voluntary) standards must be obtained from
the organization responsible for their preparation, publication, or
maintenance.
* * * * *
(End of provision)
[FR Doc. 98-16113 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34064-34072]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn98-20]
[[Page 34064]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 11, 19, 52, and 53
[FAC 97-05; FAR Cases 89-042 and 97-300; Item III]
RINs 9000-AD20 and 9000-AH53
Federal Acquisition Regulation; Liquidated Damages
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed and interim rules adopted as final with changes.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed to convert the proposed and
interim rules to final with changes. This final rule amends the Federal
Acquisition Regulation (FAR) to clarify policy on liquidated damages
and commercial subcontracting plans and to implement OFPP Policy Letter
95-1, Subcontracting Plans for Companies Supplying Commercial Items.
The interim rule published as FAR case 89-042 at 54 FR 30708, July 21,
1989, has been merged with this final rule. This regulatory action was
not subject to Office of Management and Budget review under Executive
Order 12866, dated September 30, 1993, and is not a major rule under 5
U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Ms. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 97-05, FAR case 97-300.
SUPPLEMENTARY INFORMATION:
A. Background
An interim rule, under FAR Case 89-042 (Liquidated Damages), was
published on July 21, 1989 (54 FR 30708), to require a prime contractor
to pay liquidated damages upon a finding of a lack of good faith effort
to meet small business subcontracting goals. The rule implemented
Section 304 of the Business Opportunity Development Reform Act of 1988,
Pub. L. 100-656. The interim rule is hereby adopted as final with
changes and merged with this final rule.
A proposed rule containing revisions to the interim rule was
published on April 11, 1997 (62 FR 17960). The revisions in the
proposed rule resulted from the public comments received on the interim
rule, and from the requirements of OFPP Policy Letter 95-1,
Subcontracting Plans for Companies Supplying Commercial Items.
Eight sources submitted comments in response to the proposed rule.
All comments were considered in developing this final rule.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because small business concerns
are exempt from subcontracting plan requirements.
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 11, 19, 52, and 53
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Interim Rule Adopted as Final with Changes
Accordingly, the interim rule published as FAR Case 89-042 amending
48 CFR Parts 19 and 52, which was published at 54 FR 30708, July 21,
1989, is hereby adopted as final and merged with this final rule with
the following changes:
1. The authority citation for 48 CFR Parts 11, 19, 52, and 53
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).
PART 11--DESCRIBING AGENCY NEEDS
2. Section 11.501 is revised to read as follows:
11.501 General.
This subpart provides policies and procedures for the use of
liquidated damages clauses in solicitations and contracts for supplies,
services, and construction, except for the Liquidated Damages--
Subcontracting Plan clause at 52.219-16, which may be applied pursuant
to 19.705-7.
PART 19--SMALL BUSINESS PROGRAMS
3. Section 19.701 is revised to read as follows:
19.701 Definitions.
Commercial plan means a subcontracting plan (including goals) that
covers the offeror's fiscal year and that applies to the entire
production of commercial items sold by either the entire company or a
portion thereof (e.g., division, plant, or product line).
Failure to make a good faith effort to comply with the
subcontracting plan means willful or intentional failure to perform in
accordance with the requirements of the subcontracting plan, or willful
or intentional action to frustrate the plan.
Individual contract plan means a subcontracting plan that covers
the entire contract period (including option periods), applies to a
specific contract, and has goals that are based on the offeror's
planned subcontracting in support of the specific contract, except that
indirect costs incurred for common or joint purposes may be allocated
on a prorated basis to the contract.
Master plan means a subcontracting plan that contains all the
required elements of an individual contract plan, except goals, and may
be incorporated into individual contract plans, provided the master
plan has been approved.
Small business subcontractor means any concern that--
(a) In connection with subcontracts of $10,000 or less, has a
number of employees, including its affiliates, that does not exceed 500
persons; and
(b) In connection with subcontracts exceeding $10,000, has a number
of employees or average annual receipts, including its affiliates, that
does not exceed the size standard under 19.102 for the product or
service it is providing on the subcontract.
Subcontract means any agreement (other than one involving an
employer-employee relationship) entered into by a Government prime
contractor or subcontractor calling for supplies and/or services
required for performance of the contract, contract modification, or
subcontract.
4. Section 19.702 is amended by revising paragraph (a) introductory
text,
[[Page 34065]]
the first sentences of (a)(1) and (a)(2); and paragraph (b)(4) to read
as follows:
19.702 Statutory requirements.
* * * * *
(a) Except as stated in paragraph (b) of this section, Section 8(d)
of the Small Business Act (15 U.S.C. 637(d)) imposes the following
requirements regarding subcontracting with small businesses and small
business subcontracting plans:
(1) In negotiated acquisitions, each solicitation of offers to
perform a contract or contract modification, that individually is
expected to exceed $500,000 ($1,000,000 for construction) and that has
subcontracting possibilities, shall require the apparently successful
offeror to submit an acceptable subcontracting plan. * * *
(2) In sealed bidding acquisitions, each invitation for bids to
perform a contract or contract modification, that individually is
expected to exceed $500,000 ($1,000,000 for construction) and that has
subcontracting possibilities, shall require the bidder selected for
award to submit a subcontracting plan. * * *
(b) * * *
(4) For modifications to contracts within the general scope of the
contract that do not contain the clause at 52.219-8, Utilization of
Small, Small Disadvantaged and Women-Owned Small Business Concerns (or
equivalent prior clauses, e.g., contracts awarded before the enactment
of Pub. L. 95-507).
* * * * *
5. Section 19.703 is amended in paragraph (a)(2) by removing ``13
CFR 124.601--124.610'' and inserting in its place ``13 CFR 124.601
through 124.610''; and in paragraph (b) by revising the first sentence
to read as follows:
19.703 Eligibility requirements for participating in the program.
* * * * *
(b) A contractor acting in good faith may rely on the written
representation of its subcontractor regarding the subcontractor's
status as a small business concern, a small disadvantaged business
concern, or a women-owned small business concern. * * *
6. Section 19.704 is amended--
(a) By redesignating paragraphs (a)(2) through (a)(6) as (a)(7)
through (a)(11), respectively, and adding new paragraphs (a)(2) through
(a)(6);
(b) In newly designated (a)(8) by removing the word ``will'' the
second time it appears;
(c) By revising newly designated paragraphs (a)(9), 10) and (11),
the first sentence of paragraph (b), and (c); and
(d) By adding paragraph (d). The revised and added text reads as
follows:
19.704 Subcontracting plan requirements.
(a) * * *
(2) A statement of the total dollars planned to be subcontracted
and a statement of the total dollars planned to be subcontracted to
small, small disadvantaged and women-owned small business concerns;
(3) A description of the principal types of supplies and services
to be subcontracted and an identification of the types planned for
subcontracting to small, small disadvantaged and women-owned small
business concerns;
(4) A description of the method used to develop the subcontracting
goals;
(5) A description of the method used to identify potential sources
for solicitation purposes;
(6) A statement as to whether or not the offeror included indirect
costs in establishing subcontracting goals, and a description of the
method used to determine the proportionate share of indirect costs to
be incurred with small, small disadvantaged and women-owned small
business concerns;
* * * * *
(9) Assurances that the offeror will include the clause at 52.219-
8, Utilization of Small, Small Disadvantaged and Women-Owned Small
Business Concerns (see 19.708(a)), in all subcontracts that offer
further subcontracting opportunities, and that the offeror will require
all subcontractors (except small business concerns) that receive
subcontracts in excess of $500,000 ($1,000,000 for construction) to
adopt a plan that complies with the requirements of the clause at
52.219-9, Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan (see 19.708(b));
(10) Assurances that the offeror will--
(i) Cooperate in any studies or surveys as may be required;
(ii) Submit periodic reports so that the Government can determine
the extent of compliance by the offeror with the subcontracting plan;
(iii) Submit Standard Form (SF) 294, Subcontracting Report for
Individual Contracts, and SF 295, Summary Subcontract Report, following
the instructions on the forms or as provided in agency regulations; and
(iv) Ensure that its subcontractors agree to submit SF 294 and SF
295; and
(11) A description of the types of records that will be maintained
concerning procedures adopted to comply with the requirements and goals
in the plan, including establishing source lists; and a description of
the offeror's efforts to locate small, small disadvantaged and women-
owned small business concerns and to award subcontracts to them.
(b) Contractors may establish, on a plant or division-wide basis, a
master plan (see 19.701) that contains all the elements required by the
clause at 52.219-9, Small, Small Disadvantaged and Women-Owned Small
Business Subcontracting Plan, except goals. * * *
(c) For multiyear contracts or contracts containing options, the
cumulative value of the basic contract and all options is considered in
determining whether a subcontracting plan is necessary (see 19.705-
2(a)). If a plan is necessary and the offeror is submitting an
individual contract plan, the plan shall contain all the elements
required by paragraph (a) of this section and shall contain separate
statements and goals for the basic contract and for each option.
(d) A commercial plan (as defined in 19.701) is the preferred type
of subcontracting plan for contractors furnishing commercial items. The
contractor shall--
(1) Submit the commercial plan to either the first contracting
officer awarding a contract subject to the plan during the contractor's
fiscal year, or, if the contractor has ongoing contracts with
commercial plans, to the contracting officer responsible for the
contract with the latest completion date. The contracting officer shall
negotiate the commercial plan for the Government. The approved
commercial plan shall remain in effect during the contractor's fiscal
year for all Government contracts in effect during that period; and
(2) Submit a new commercial plan, 30 working days before the end of
the fiscal year, to the contracting officer responsible for the
uncompleted Government contract with the latest completion date. The
contractor must provide to each contracting officer responsible for an
ongoing contract subject to the plan, the identity of the contracting
officer that will be negotiating the new plan. When the new commercial
plan is approved, the contractor shall provide a copy of the approved
plan to each contracting officer responsible for an ongoing contract
that is subject to the plan.
19.705-1 [Amended]
7. Section 19.705-1 is amended in the first sentence by removing
``award fee'' and inserting ``award-fee'' in its place.
[[Page 34066]]
8. Section 19.705-4 is amended--
(a) By revising the first and second sentences of paragraph (b);
(b) By revising paragraph (c);
(c) By revising paragraph (d)(1); and
(d) By redesignating paragraphs (d)(3) through (d)(6) as (d)(4)
through (d)(7), respectively, and adding a new paragraph (d)(3); and by
revising newly designated (d)(5). The new and revised text reads as
follows:
19.705-4 Reviewing the subcontracting plan.
* * * * *
(b) If, under a sealed bid solicitation, a bidder submits a plan
that does not cover each of the 11 required elements (see 19.704), the
contracting officer shall advise the bidder of the deficiency and
request submission of a revised plan by a specific date. If the bidder
does not submit a plan that incorporates the required elements within
the time allotted, the bidder shall be ineligible for award. * * *
(c) In negotiated acquisitions, the contracting officer shall
determine whether the plan is acceptable based on the negotiation of
each of the 11 elements of the plan (see 19.704). Subcontracting goals
should be set at a level that the parties reasonably expect can result
from the offeror expending good faith efforts to use small, small
disadvantaged, and women-owned small business subcontractors to the
maximum practicable extent. The contracting officer shall take
particular care to ensure that the offeror has not submitted
unreasonably low goals to minimize exposure to liquidated damages and
to avoid the administrative burden of substantiating good faith
efforts. Additionally, particular attention should be paid to the
identification of steps that, if taken, would be considered a good
faith effort. No goal should be negotiated upward if it is apparent
that a higher goal will significantly increase the Government's cost or
seriously impede the attainment of acquisition objectives. An incentive
subcontracting clause (see 52.219-10, Incentive Subcontracting
Program), may be used when additional and unique contract effort, such
as providing technical assistance, could significantly increase
subcontract awards to small, small disadvantaged or women-owned small
businesses.
(d) * * *
(1) Obtain information available from the cognizant contract
administration office, as provided for in 19.706(a), and evaluate the
offeror's past performance in awarding subcontracts for the same or
similar products or services to small, small disadvantaged and women-
owned small business concerns. If information is not available on a
specific type of product or service, evaluate the offeror's overall
past performance and consider the performance of other contractors on
similar efforts.
* * * * *
(3) Ensure that the subcontracting goals are consistent with the
offeror's cost or pricing data or information other than cost or
pricing data.
* * * * *
(5) Evaluate subcontracting potential, considering the offeror's
make-or-buy policies or programs, the nature of the supplies or
services to be subcontracted, the known availability of small, small
disadvantaged and women-owned small business concerns in the
geographical area where the work will be performed, and the potential
contractor's long-standing contractual relationship with its suppliers.
* * * * *
9. Section 19.705-6 is amended by revising the introductory text
and paragraphs (b) and (g) to read as follows:
19.705-6 Postaward responsibilities of the contracting officer.
After a contract or contract modification containing a
subcontracting plan is awarded, the contracting officer who approved
the plan is responsible for the following:
* * * * *
(b) Forwarding a copy of each commercial plan and any associated
approvals to the Assistant Regional Administrator for Procurement
Assistance in the SBA region where the contractor's headquarters is
located.
* * * * *
(g) Taking action to enforce the terms of the contract upon receipt
of a notice under 19.706(f).
10. Section 19.705-7 is amended by revising paragraphs (b) and (c);
the last sentence of paragraph (d) and paragraph (f); and by adding
paragraph (h) to read as follows:
19.705-7 Liquidated damages.
* * * * *
(b) The amount of damages attributable to the contractor's failure
to comply shall be an amount equal to the actual dollar amount by which
the contractor failed to achieve each subcontracting goal.
(c) If, at completion of the basic contract or any option, or in
the case of a commercial plan, at the close of the fiscal year for
which the plan is applicable, a contractor has failed to meet its
subcontracting goals, the contracting officer shall review all
available information for an indication that the contractor has not
made a good faith effort to comply with the plan. If no such indication
is found, the contracting officer shall document the file accordingly.
If the contracting officer decides in accordance with paragraph (d) of
this subsection that the contractor failed to make a good faith effort
to comply with its subcontracting plan, the contracting officer shall
give the contractor written notice specifying the failure, advising the
contractor of the possibility that the contractor may have to pay to
the Government liquidated damages, and providing a period of 15 working
days (or longer period as necessary) within which to respond. The
notice shall give the contractor an opportunity to demonstrate what
good faith efforts have been made before the contracting officer issues
the final decision, and shall further state that failure of the
contractor to respond may be taken as an admission that no valid
explanation exists.
(d) * * * However, when considered in the context of the
contractor's total effort in accordance with its plan, the following,
though not all inclusive, may be considered as indicators of a failure
to make a good faith effort: a failure to attempt to identify, contact,
solicit, or consider for contract award small, small disadvantaged or
women-owned small business concerns; a failure to designate and
maintain a company official to administer the subcontracting program
and monitor and enforce compliance with the plan; a failure to submit
Standard Form (SF) 294, Subcontracting Report for Individual Contracts,
or SF 295, Summary Subcontract Report, in accordance with the
instructions on the forms or as provided in agency regulations; a
failure to maintain records or otherwise demonstrate procedures adopted
to comply with the plan; or the adoption of company policies or
procedures that have as their objectives the frustration of the
objectives of the plan.
* * * * *
(f) With respect to commercial plans approved under the clause at
52.219-9, Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan, the contracting officer that approved the plan
shall--
(1) Perform the functions of the contracting officer under this
subsection on behalf of all agencies with contracts covered by the
commercial plan;
(2) Determine whether or not the goals in the commercial plan were
achieved and, if they were not achieved, review all available
information for an indication that the contractor has not
[[Page 34067]]
made a good faith effort to comply with the plan, and document the
results of the review;
(3) If a determination is made to assess liquidated damages, in
order to calculate and assess the amount of damages, the contracting
officer shall ask the contractor to provide--
(i) Contract numbers for the Government contracts subject to the
plan;
(ii) The total Government sales during the contractor's fiscal
year; and
(iii) The amount of payments made under the Government contracts
subject to that plan that contributed to the contractor's total sales
during the contractor's fiscal year; and
(4) When appropriate, assess liquidated damages on the Government's
behalf, based on the pro rata share of subcontracting attributable to
the Government contracts. For example: The contractor's total actual
sales were $50 million and its actual subcontracting was $20 million.
The Government's total payments under contracts subject to the plan
contributing to the contractor's total sales were $5 million, which
accounted for 10 percent of the contractor's total sales. Therefore,
the pro rata share of subcontracting attributable to the Government
contracts would be 10 percent of $20 million, or $2 million. To
continue the example, if the contractor failed to achieve its small
business goal by 1 percent, the liquidated damages would be calculated
as 1 percent of $2 million, or $20,000. The contracting officer shall
make similar calculations for each category of small business where the
contractor failed to achieve its goal and the sum of the dollars for
all of the categories equals the amount of the liquidated damages to be
assessed. A copy of the contracting officer's final decision assessing
liquidated damages shall be provided to other contracting officers with
contracts subject to the commercial plan.
* * * * *
(h) Every contracting officer with a contract that is subject to a
commercial plan shall include in the contract file a copy of the
approved plan and a copy of the final decision assessing liquidating
damages, if applicable.
11. Section 19.706 is amended in paragraph (a) by removing the
paragraph designation ``(a)''; by removing paragraph (b); by
redesignating (a)(1) through (a)(6) as (a) through (f), respectively;
in newly designated (e) by removing ``and'' at the end; in newly
designated (f) by removing the period at the end and inserting ``;
and''; and by adding (g) to read as follows:
19.706 Responsibilities of the cognizant administrative contracting
officer.
* * * * *
(g) Immediate notice that performance under a contract is complete,
that the goals were or were not met, and, if not met, whether there is
any indication of a lack of a good faith effort to comply with the
subcontracting plan.
12. Section 19.708 is amended by revising paragraph (b)(2); in the
first sentence of (c)(1) by removing ``(see 19.702(a)(1))'' and
inserting in its place ``(see 19.702)''; and in the second sentence of
(c)(2) by removing ``award fee'' and inserting in its place ``award-
fee''. The revised text reads as follows:
19.708 Solicitation provisions and contract clauses.
* * * * *
(b) ** * *
(2) The contracting officer shall insert the clause at 52.219-16,
Liquidated Damages--Subcontracting Plan, in all solicitations and
contracts containing the clause at 52.219-9, Small, Small Disadvantaged
and Women-Owned Small Business Subcontracting Plan, or the clause with
its Alternate I or II.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
13. Section 52.219-9 is amended by revising the clause date and
paragraphs (b), (d)(2)(i), (d)(9), (d)(10), the first sentence of
(d)(11) introductory text, and the second sentence of (d)(11)(vi); in
the second sentence of (e)(1) by revising ``contractor's'' to read
``Contractor's''; and by revising (f) introductory text and (g). The
revised text reads as follows:
52.219-9 Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan.
* * * * *
SMALL, SMALL DISADVANTAGED AND WOMEN-OWNED SMALL BUSINESS
SUBCONTRACTING PLAN (AUG 1998)
* * * * *
(b) Definitions. As used in this clause--
Commercial item means a product or service that satisfies the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation.
Commercial plan means a subcontracting plan (including goals)
that covers the offeror's fiscal year and that applies to the entire
production of commercial items sold by either the entire company or
a portion thereof (e.g., division, plant, or product line).
Individual contract plan means a subcontracting plan that covers
the entire contract period (including option periods), applies to a
specific contract, and has goals that are based on the offeror's
planned subcontracting in support of the specific contract, except
that indirect costs incurred for common or joint purposes may be
allocated on a prorated basis to the contract.
Master plan means a subcontracting plan that contains all the
required elements of an individual contract plan, except goals, and
may be incorporated into individual contract plans, provided the
master plan has been approved.
Subcontract means any agreement (other than one involving an
employer-employee relationship) entered into by a Federal Government
prime Contractor or subcontractor calling for supplies or services
required for performance of the contract or subcontract.
* * * * *
(d) * * *
(2) * * *
(i) Total dollars planned to be subcontracted for an individual
contract plan; or the offeror's total projected sales, expressed in
dollars, and the total value of projected subcontracts to support
the sales for a commercial plan;
* * * * *
(9) Assurances that the offeror will include the clause in this
contract entitled ``Utilization of Small, Small Disadvantaged and
Women-Owned Small Business Concerns'' in all subcontracts that offer
further subcontracting opportunities, and that the offeror will
require all subcontractors (except small business concerns) that
receive subcontracts in excess of $500,000 ($1,000,000 for
construction of any public facility) to adopt a subcontracting plan
that complies with the requirements of this clause.
(10) Assurances that the offeror will--
(i) Cooperate in any studies or surveys as may be required;
(ii) Submit periodic reports so that the Government can
determine the extent of compliance by the offeror with the
subcontracting plan;
(iii) Submit Standard Form (SF) 294, Subcontracting Report for
Individual Contracts, and/or SF 295, Summary Subcontract Report,
following the instructions on the forms or as provided in agency
regulations; and
(iv) Ensure that its subcontractors agree to submit SF 294 and
SF 295.
(11) A description of the types of records that will be
maintained concerning procedures that have been adopted to comply
with the requirements and goals in the plan, including establishing
source lists; and a description of the offeror's efforts to locate
small, small disadvantaged and women-owned small business concerns
and award subcontracts to them. * * *
* * * * *
(vi) * * * Contractors having commercial plans need not comply
with this requirement.
* * * * *
(f) A master plan on a plant or division-wide basis that
contains all the elements required by paragraph (d) of this clause,
except goals, may be incorporated by reference as a part of the
subcontracting plan
[[Page 34068]]
required of the offeror by this clause; provided--
* * * * *
(g) A commercial plan is the preferred type of subcontracting
plan for contractors furnishing commercial items. The commercial
plan shall relate to the offeror's planned subcontracting generally,
for both commercial and Government business, rather than solely to
the Government contract. Commercial plans are also preferred for
subcontractors that provide commercial items under a prime contract,
whether or not the prime contractor is supplying a commercial item.
* * * * *
(End of clause)
* * * * *
14. Section 52.219-16 is amended by revising the clause date,
paragraph (b), the first sentence of (c), and paragraph
(d) to read as follows:
52.219-16 Liquidated Damages--Subcontracting Plan.
* * * * *
LIQUIDATED DAMAGES--SUBCONTRACTING PLAN (AUG 1998)
* * * * *
(b) Performance shall be measured by applying the percentage
goals to the total actual subcontracting dollars or, if a commercial
plan is involved, to the pro rata share of actual subcontracting
dollars attributable to Government contracts covered by the
commercial plan. If, at contract completion or, in the case of a
commercial plan, at the close of the fiscal year for which the plan
is applicable, the Contractor has failed to meet its subcontracting
goals and the Contracting Officer decides in accordance with
paragraph (c) of this clause that the Contractor failed to make a
good faith effort to comply with its subcontracting plan,
established in accordance with the clause in this contract entitled
``Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan,'' the Contractor shall pay the Government
liquidated damages in an amount stated. The amount of probable
damages attributable to the Contractor's failure to comply shall be
an amount equal to the actual dollar amount by which the Contractor
failed to achieve each subcontract goal.
(c) Before the Contracting Officer makes a final decision that
the Contractor has failed to make such good faith effort, the
Contracting Officer shall give the Contractor written notice
specifying the failure and permitting the Contractor to demonstrate
what good faith efforts have been made and to discuss the matter. *
* *
(d) With respect to commercial plans, the Contracting Officer
who approved the plan will perform the functions of the Contracting
Officer under this clause on behalf of all agencies with contracts
covered by the commercial plan.
* * * * *
(End of clause)
PART 53--FORMS
53.219 [Amended]
15. Section 53.219 is amended in paragraphs (a) and (b) by removing
``(REV. 10/96)'' and inserting ``(Rev. 8/98)'', and by revising the
citation ``19.704(a)(5)'' to read ``19.704(a)(10)''
16. Section 53.301-294 is revised to read as follows:
53.301-294 Standard Form 294, Subcontracting Report for Individual
Contracts.
BILLING CODE 6820-EP-P
[[Page 34069]]
[GRAPHIC] [TIFF OMITTED] TR22JN98.011
[[Page 34070]]
[GRAPHIC] [TIFF OMITTED] TR22JN98.012
17. Section 53.301-295 is revised to read as follows:
[[Page 34071]]
53.301-295 Standard Form 295, Subcontract Report.
[GRAPHIC] [TIFF OMITTED] TR22JN98.013
[[Page 34072]]
[GRAPHIC] [TIFF OMITTED] TR22JN98.014
[FR Doc. 98-16114 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-C
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34073]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn98-21]
[[Page 34073]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 16
[FAC 97-05; FAR Case 97-042; Item IV]
RIN 9000-AI01
Federal Acquisition Regulation; Limits on Fee for Cost-Plus-
Incentive-Fee and Cost-Plus-Award-Fee Contracts
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to clarify fee limitations
pertaining to cost-reimbursement contracts. This regulatory action was
not subject to Office of Management and Budget review under Executive
Order 12866, dated September 30, 1993, and is not a major rule under 5
U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Mr. Ralph DeStefano, Procurement Analyst, at (202)
501-1758. Please cite FAC 97-05, FAR case 97-042.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR Part 16 to clarify fee limitations
pertaining to cost-reimbursement contracts. Federal Acquisition
Circular 97-02, FAR Part 15 Rewrite, published as a final rule on
September 30, 1997 (62 FR 51224), eliminated non-statutory fee
limitations for cost-plus-incentive-fee and cost-plus-award-fee
contracts. This final rule makes conforming amendments to FAR Part 16.
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 publication for
public comments is not required. However, comments from small entities
concerning the affected FAR subparts will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and
should cite 5 U.S.C. 601, et seq. (FAC 97-05, FAR case 97-042), 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 Part 16
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 16 is amended as set forth below:
PART 16--TYPES OF CONTRACTS
1. The authority citation for 48 CFR Part 16 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).
16.301-3 [Amended]
2. Section 16.301-3 is amended by removing paragraph (a)(3).
3. Section 16.306 is amended by revising paragraph (c) to read as
follows:
16.306 Cost-plus-fixed-fee contracts.
* * * * *
(c) Limitations. No cost-plus-fixed-fee contract shall be awarded
unless the contracting officer complies with all limitations in 15.404-
4(c)(4)(i) and 16.301-3.
* * * * *
16.405-2 [Amended]
4. Section 16.405-2 is amended at the end of paragraph (c)(1) by
adding ``and''; by removing paragraph (c)(2) and redesignating
paragraph (c)(3) as (c)(2).
[FR Doc. 98-16115 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34073-34075]
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[DOCID:fr22jn98-22]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22 and 52
[FAC 97-05; FAR Case 96-610; Item V]
RIN 9000-AH99
Federal Acquisition Regulation; Rehabilitation Act, Workers With
Disabilities
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on an interim rule amending
the Federal Acquisition Regulation (FAR) to implement revised
Department of Labor regulations regarding affirmative action to employ
and advance in employment qualified individuals with disabilities. This
regulatory action was not subject to Office of Management and Budget
review under Executive Order 12866, dated September 30, 1993, and is
not a major rule under 5 U.S.C. 804.
DATES: Effective June 22, 1998.
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before August 21, 1998 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVR), Attn: Ms.
Laurie Duarte, 1800 F Street, NW, Room 4035, Washington, DC 20405.
E-Mail comments submitted over the Internet should be addressed to:
farcase.96-610@gsa.gov.
Please cite FAC 97-05, FAR case 96-610 in all correspondence
related to this case.
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 Mr. Jack O'Neill, rocurement Analyst, at (202) 501-
3856. Please cite FAC 97-05, FAR case 96-610.
SUPPLEMENTARY INFORMATION:
[[Page 34074]]
A. Background
On May 1, 1996, the Department of Labor (DoL) issued a final rule
(61 FR 19335) to revise its regulations (41 CFR 60-741) that implement
Section 503 of the Rehabilitation Act of 1973 (29 U.S.C. 793). The rule
was effective August 29, 1996. This interim rule amends FAR Subpart
22.14 and the clauses at 52.212-5 and 52.222-36 to conform to the DoL
regulations.
B. Regulatory Flexibility Act
The interim rule is not expected to have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule
merely implements existing Department of Labor regulations, and imposes
no new requirements. An Initial Regulatory Flexibility Analysis has,
therefore, not been performed. Comments are invited. Comments from
small entities concerning the affected FAR subparts also will be
considered in accordance with 5 U.S.C. 610. Such comments must be
submitted separately and should cite 5 U.S.C. 601, et seq. (FAR Case
96-610), 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 collection 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.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This rule
amends the FAR to conform to Department of Labor regulations at 41 CFR
60-741 that implement Section 503 of the Rehabilitation Act of 1973 (29
U.S.C. 793). Immediate publication is necessary to ensure that
Government contractors take affirmative action required by statute to
employ, and advance in employment, qualified individuals with
disabilities. However, pursuant to Public Law 98-577 and FAR 1.501,
public comments received in response to this interim rule will be
considered in the formation of the final rule.
List of Subjects in 48 CFR Parts 22 and 52
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 22 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 22 and 52 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).
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
Subpart 22.14--Employment of Workers With Disabilities
2. The heading of Subpart 22.14 is revised to read as set forth
above.
3. Sections 22.1401 and 22.1402 are revised to read as follows:
22.1401 Policy.
Government contractors, when entering into contracts subject to the
Act, are required to take affirmative action to employ, and advance in
employment, qualified individuals with disabilities, without
discrimination based on their physical or mental disability.
22.1402 Applicability.
(a) Section 503 of the Act applies to all Government contracts in
excess of $10,000 for supplies and services (including construction)
except as waived by the Secretary of Labor. The clause at 52.222-36,
Affirmative Action for Workers with Disabilities, implements the Act.
(b) The requirements of the clause at 52.222-36, Affirmative Action
for Workers with Disabilities, in any contract with a State or local
government (or any agency, instrumentality, or subdivision) shall not
apply to any agency, instrumentality, or subdivision of that government
that does not participate in work on or under the contract.
4. Section 22.1403 is amended by revising paragraph (a)
introductory text; in (b)(1) by revising ``Director of OFCCP'' to read
``Deputy Assistant Secretary''; in (b)(2) and the first sentence of (d)
by revising ``Director'' to read ``Deputy Assistant Secretary''; and in
the last sentence of (d) by removing the word ``calendar''. The revised
text reads as follows:
22.1403 Waivers.
(a) The agency head, with the concurrence of the Deputy Assistant
Secretary for Federal Contract Compliance of the U.S. Department of
Labor (Deputy Assistant Secretary), may waive any or all of the terms
of the clause at 52.222-36, Affirmative Action for Workers with
Disabilities, for--
* * * * *
5. Section 22.1404 is revised to read as follows:
22.1404 Department of Labor notices.
The contracting officer shall furnish to the contractor appropriate
notices that state the contractor's obligations and the rights of
individuals with disabilities. The contracting officer may obtain these
notices from the Office of Federal Contract Compliance Programs (OFCCP)
regional office.
22.1405 [Amended]
6. Section 22.1405 is amended in the first sentence by replacing
``Handicapped Workers'' with ``Workers with Disabilities''.
22.1406 [Amended]
7. Section 22.1406 is amended by revising ``OFCCP'' to read
``Deputy Assistant Secretary for Federal Contract Compliance'' the
first time it appears.
8. Section 22.1407 is amended by revising the introductory
paragraph to read as follows:
22.1407 Actions because of noncompliance.
The contracting officer shall take necessary action, as soon as
possible upon notification by the appropriate agency official, to
implement any sanctions imposed on a contractor by the Department of
Labor for violations of the clause at 52.222-36, Affirmative Action for
Workers with Disabilities. These sanctions (see 41 CFR 60-741.66) may
include--
* * * * *
9. Section 22.1408 is amended by revising paragraph (a)
introductory text and (a)(1) to read as follows:
22.1408 Contract clause.
(a) The contracting officer shall insert the clause at 52.222-36,
Affirmative Action for Workers with Disabilities, in solicitations and
contracts that exceed $10,000 or are expected to exceed $10,000, except
when--
(1) Work is to be performed outside the United States by employees
recruited outside the United States (for the purpose of this subpart,
United States includes the several states, the District of Columbia,
the Virgin Islands, the Commonwealth of Puerto Rico, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, and Wake
Island); or
* * * * *
[[Page 34075]]
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
10. Section 52.212-5 is amended by revising the date of the clause
and paragraphs (b)(8) and (e)(3) to read as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
Contract Terms and Conditions Required to Implement Statutes or
Executive Orders--Commercial Items (Jun 1998)
* * * * *
(b) * * *
(8) 52.222-36, Affirmative Action for Workers with Disabilities
(29 U.S.C. 793).
* * * * *
(e) * * *
(3) 52.222-36, Affirmative Action for Workers with Disabilities (29
U.S.C. 793); and
* * * * *
(End of clause)
11. Section 52.213-4 is amended by revising the clause date and
paragraph (b)(1)(iv) of the clause to read as follows:
52.213-4 Terms and Conditions Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items) (Jun 1998)
* * * * *
(b)(1) * * *
(iv) 52.222-36, Affirmative Action for Workers with Disabilities
(Jun 1998) (29 U.S.C. 793) (Applies to contracts over $10,000).
* * * * *
12. Section 52.222-36 is revised to read as follows:
52.222-36 Affirmative Action for Workers With Disabilities.
As prescribed in 22.1408(a), insert the following clause:
Affirmative Action for Workers With Disabilities (Jun 1998)
(a) General. (1) Regarding any position for which the employee
or applicant for employment is qualified, the Contractor shall not
discriminate against any employee or applicant because of physical
or mental disability. The Contractor agrees to take affirmative
action to employ, advance in employment, and otherwise treat
qualified individuals with disabilities without discrimination based
upon their physical or mental disability in all employment practices
such as--
(i) Recruitment, advertising, and job application procedures;
(ii) Hiring, upgrading, promotion, award of tenure, demotion,
transfer, layoff, termination, right of return from layoff, and
rehiring;
(iii) Rates of pay or any other form of compensation and changes
in compensation;
(iv) Job assignments, job classifications, organizational
structures, position descriptions, lines of progression, and
seniority lists;
(v) Leaves of absence, sick leave, or any other leave;
(vi) Fringe benefits available by virtue of employment, whether
or not administered by the Contractor;
(vii) Selection and financial support for training, including
apprenticeships, professional meetings, conferences, and other
related activities, and selection for leaves of absence to pursue
training;
(viii) Activities sponsored by the Contractor, including social
or recreational programs; and
(ix) Any other term, condition, or privilege of employment.
(2) The Contractor agrees to comply with the rules, regulations,
and relevant orders of the Secretary of Labor (Secretary) issued
under the Rehabilitation Act of 1973 (29 U.S.C. 793) (the Act), as
amended.
(b) Postings. (1) The Contractor agrees to post employment
notices stating--
(i) The Contractor's obligation under the law to take
affirmative action to employ and advance in employment qualified
individuals with disabilities; and
(ii) The rights of applicants and employees.
(2) These notices shall be posted in conspicuous places that are
available to employees and applicants for employment. The Contractor
shall ensure that applicants and employees with disabilities are
informed of the contents of the notice (e.g., the Contractor may
have the notice read to a visually disabled individual, or may lower
the posted notice so that it might be read by a person in a
wheelchair). The notices shall be in a form prescribed by the Deputy
Assistant Secretary for Federal Contract Compliance of the U.S.
Department of Labor (Deputy Assistant Secretary) and shall be
provided by or through the Contracting Officer.
(3) The Contractor shall notify each labor union or
representative of workers with which it has a collective bargaining
agreement or other contract understanding, that the Contractor is
bound by the terms of Section 503 of the Act and is committed to
take affirmative action to employ, and advance in employment,
qualified individuals with physical or mental disabilities.
(c) Noncompliance. If the Contractor does not comply with the
requirements of this clause, appropriate actions may be taken under
the rules, regulations, and relevant orders of the Secretary issued
pursuant to the Act.
(d) Subcontracts. The Contractor shall include the terms of this
clause in every subcontract or purchase order in excess of $10,000
unless exempted by rules, regulations, or orders of the Secretary.
The Contractor shall act as specified by the Deputy Assistant
Secretary to enforce the terms, including action for noncompliance.
(End of clause)
Alternate I (Jun 1998). As prescribed in 22.1408(b), add the
following as a preamble to the clause:
Notice: The following term(s) of this clause are waived for this
contract: ____________________ [List term(s)].
[FR Doc. 98-16116 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34075-34076]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn98-23]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 25
[FAC 97-05; FAR Case 97-044; Item VI]
RIN 9000-AI02
Federal Acquisition Regulation; Trade Agreements Thresholds
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to implement revised
thresholds for application of the Trade Agreements Act and the North
American Free Trade Agreement. This regulatory action was not subject
to Office of Management and Budget review under Executive Order 12866,
dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAC 97-05, FAR case 97-044.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR Part 25 to implement revised thresholds
for application of the Trade Agreements Act and the North American Free
Trade Agreement, as published by the Office of the United States Trade
Representative in the Federal Register on January 14, 1998 (63 FR
2295).
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the
[[Page 34076]]
meaning of FAR 1.501 and Public Law 98-577, and publication for public
comments is not required. However, comments from small entities
concerning the affected FAR subparts will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and
should cite 5 U.S.C. 601, et seq. (FAC 97-05, FAR case 97-044), 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 Part 25
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 25 is amended as set forth below:
PART 25--FOREIGN ACQUISITION
1. The authority citation for 48 CFR Part 25 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 25.105 is amended by revising paragraph (e) to read as
follows:
25.105 Evaluating offers.
* * * * *
(e) The evaluation in paragraph (a) of this section shall not be
applied to offers of Canadian end products above $25,000 or Mexican end
products above $53,150 (see 25.402(a)(3)(ii)). For the definitions of
``Canadian end product'' and ``Mexican end product,'' see 25.401.
25.202, 25.207, 25.305, 25.402, 25.408, 25.1002, and 25.1003 [Amended]
3. In the list below, for each section listed in the left column,
remove the dollar amount indicated in the middle column, and add the
dollar amount indicated in the right column:
----------------------------------------------------------------------------------------------------------------
Section Remove Add
----------------------------------------------------------------------------------------------------------------
25.202(d)..................... $6,500,000......................................... $6,909,500
7,311,000 (twice).................................. 7,143,000 (twice)
25.207(d)(1).................. 7,311,000.......................................... 7,143,000
25.207(d)(2).................. 6,500,000.......................................... 6,909,500
7,311,000.......................................... 7,143,000
25.305(c)(2).................. 6,500,000.......................................... 6,909,500
25.402(a)(1).................. 190,000............................................ 186,000
7,311,000.......................................... 7,143,000
25.402(a)(3)(i)............... 6,500,000.......................................... 6,909,500
25.402(a)(3)(ii).............. 50,000............................................. 53,150
25.402(g)..................... 50,000............................................. 53,150
6,500,000.......................................... 6,909,500
25.408(a)(3).................. 50,000............................................. 53,150
25.408(a)(4).................. 50,000............................................. 53,150
25.1002(a)(1)................. 190,000............................................ 186,000
25.1002(a)(2)................. 7,311,000.......................................... 7,143,000
25.1002(a)(3)(i).............. 190,000............................................ 186,000
25.1003(a).................... 190,000............................................ 186,000
25.1003(b)(1)................. 190,000............................................ 186,000
----------------------------------------------------------------------------------------------------------------
[FR Doc. 98-16117 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34076-34077]
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[DOCID:fr22jn98-24]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 97-05; FAR Case 97-301; Item VII]
RIN 9000-AI03
Federal Acquisition Regulation; Restrictions on Purchases From
Sudan
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to add Sudan to the list of
countries from which Government acquisition of supplies and services is
restricted. This regulatory action was not subject to Office of
Management and Budget review under Executive Order 12866, dated
September 30, 1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAC 97-05, FAR case 97-301.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR 25.701 and 52.225-11 by adding Sudan to
the list of countries whose products are banned from importation into
the United States. This rule implements Executive Order 13067, dated
November 3, 1997 (62 FR 59989, November 5, 1997).
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. However, comments from small
entities concerning the affected FAR subpart will be considered in
accordance with 5 U.S.C. 610. Such comments must be submitted
separately and should cite 5 U.S.C. 601, et seq. (FAC 97-05, FAR case
97-301), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the
[[Page 34077]]
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 25 and 52
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 25 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 25 and 52 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).
PART 25--FOREIGN ACQUISITION
2. Section 25.701 is amended in paragraph (a)(4) by removing
``or''; in (a)(5) by removing the period and inserting ``; or'' in its
place; and by adding (a)(6) to read as follows:
25.701 Restrictions.
(a) * * *
(6) Sudan (Executive Order 13067).
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.213-4 [Amended]
3. Section 52.213-4 is amended by revising the date of the clause
to read ``(Aug 1998)''; and in paragraph (a)(2)(i) of the clause by
removing ``(Oct 1996)'' and inserting ``(Aug 1998)'' in its place.
4. Section 52.225-11 is amended by revising the date of the clause
and paragraph (a) to read as follows:
52.225-11 Restrictions on Certain Foreign Purchases.
* * * * *
Restrictions on Certain Foreign Purchases (Aug 1998)
(a) Unless advance written approval of the Contracting Officer
is obtained, the Contractor shall not acquire, for use in the
performance of this contract, any supplies or services originating
from sources within, or that were located in or transported from or
through, countries whose products are banned from importation into
the United States by Executive order or regulations of the Office of
Foreign Assets Control, Department of the Treasury. Those countries
include Cuba, Iran, Iraq, Libya, North Korea, and Sudan.
* * * * *
[FR Doc. 98-16118 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34077]
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[DOCID:fr22jn98-25]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 27
[FAC 97-05; FAR Case 97-614; Item VIII]
RIN 9000-AI04
Federal Acquisition Regulation; Software Copyrights
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) to clarify that computer
software produced under Government contracts may be special works to
which the Government may obtain copyright. This regulatory action was
not subject to Office of Management and Budget review under Executive
Order 12866, dated September 30, 1993, and is not a major rule under 5
U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Mr. Jack O'Neill, Procurement Analyst, at (202) 501-
3856. Please cite FAC 97-05, FAR case 97-614.
SUPPLEMENTARY INFORMATION:
A. Background
The definition of ``data'' to which the FAR clause at 52.227-17,
Rights in Data--Special Works, applies includes computer software.
However, FAR 27.405, which provides guidance for use of the clause,
does not include computer software among its examples of special works.
This final rule clarifies that the Government may use the clause to
retain copyright to certain computer software produced under Government
contracts, when appropriate.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. However, comments from small
entities concerning the affected FAR subpart will be considered in
accordance with 5 U.S.C. 610. Such comments must be submitted
separately and should cite 5 U.S.C. 601, et seq. (FAC 97-05, FAR case
97-614), 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 Part 27
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 27 is amended as set forth below:
PART 27--PATENTS, DATA, AND COPYRIGHTS
1. The authority citation for 48 CFR Part 27 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 27.405 is amended in paragraph (a)(1)(vii) by removing
``or'' at the end of (a)(1)(viii) by removing the period and inserting
``; or'' in its place; and adding paragraph (a)(1)(ix) to read as
follows:
27.405 Other data rights provisions.
(a) Production of special works. (1) * * *
(ix) The development of computer software programs, where the
program--
(A) May give a commercial advantage; or;
(B) Is agency mission sensitive, and release could prejudice agency
mission, programs, or follow-on acquisitions.
* * * * *
[FR Doc. 98-16119 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34078]
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[DOCID:fr22jn98-26]
[[Page 34078]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAC 97-05; FAR Case 97-007; Item IX]
RIN 9000-AH76
Federal Acquisition Regulation; Travel Reimbursement
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule adopted as final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed to convert the interim rule
published as Item IX of Federal Acquisition Circular 97-03 at 62 FR
64932, December 9, 1997, to a final rule without change. The rule
amends the Federal Acquisition Regulation (FAR) to increase from $25 to
$75 the threshold at which contractor personnel must provide a receipt
to support travel expenditures. This regulatory action was not subject
to Office of Management and Budget review under Executive Order 12866,
dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: August 21, 1998.
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 Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 97-05, FAR case 97-007.
SUPPLEMENTARY INFORMATION:
A. Background
An interim rule was published in the Federal Register on December
9, 1997 (62 FR 64932). The interim rule amended FAR 31.205-46 to
increase from $25 to $75 the threshold at which contractor personnel
must provide a receipt to support travel expenditures. Public comments
were received from one source. All comments were considered in
developing the final rule. The interim rule is converted to a final
rule without change.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because most contracts awarded
to small entities use simplified acquisition procedures or are awarded
on a competitive, fixed-price basis, and do not require application of
the cost principle contained in this rule.
C. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to
apply because the final rule contains information collection
requirements. Since the threshold at which contractor personnel must
provide a receipt to support travel expenditures has been increased, a
request to decrease the burden hours previously approved under Office
of Management and Budget (OMB) Control Number 9000-0088 was submitted
to OMB under 44 U.S.C. 3501, et seq. Public comments concerning this
request were invited through Federal Register notice dated December 9,
1997 (62 FR 64932). No public comments were received.
List of Subjects in 48 CFR Part 31
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Interim Rule Adopted as Final Without Change
Accordingly, the interim rule amending 48 CFR Part 31, which was
published at 62 FR 64932, December 9, 1997, is adopted as a final rule
without change.
The authority citation for 48 CFR Part 31 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).
[FR Doc. 98-16120 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34078-34079]
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[DOCID:fr22jn98-27]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 48
[FAC 97-05; FAR Case 96-011; Item X]
RIN 9000-AH37
Federal Acquisition Regulation; No-Cost Value Engineering Change
Proposals
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on an interim rule amending
the Federal Acquisition Regulation (FAR) to clarify that no-cost value
engineering change proposals (VECPs) may be used when, in the
contracting officer's judgment, reliance on other VECP approaches
likely would not be more cost-effective, and the no-cost settlement
would provide adequate consideration to the Government. This regulatory
action was not subject to Office of Management and Budget review under
Executive Order 12866, dated September 30, 1993, and is not a major
rule under 5 U.S.C. 804.
DATES: Effective June 22, 1998.
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before August 21, 1998 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVR), 1800 F Street,
NW, Room 4035, Attn: Ms. Laurie Duarte, Washington, DC 20405.
E-Mail comments submitted over the Internet should be addressed to:
farcase.96-011@gsa.gov.
Please cite FAC 97-05, FAR case 96-011 in all correspondence
related to this case.
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 Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAC 97-05, FAR case 96-011.
[[Page 34079]]
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule clarifies that the no-cost VECP guidance at FAR
48.104-3 permits the use of no-cost settlements when the contracting
officer has balanced the administrative costs of negotiating a
settlement against the anticipated savings, and when, in the
contracting officers judgment, reliance on other VECP approaches likely
would not be more cost-effective, and the no-cost settlement would
provide adequate consideration to the Government. The no-cost VECP
alternative was not intended for use when significant cost savings are
anticipated on the instant contract.
B. Regulatory Flexibility Act
The changes may have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., because the rule could reduce
the number of no-cost VECP settlements negotiated between the
Government and private entities. An Initial Regulatory Flexibility
Analysis (IRFA) has been prepared and is summarized as follows:
This interim rule clarifies that the guidance at FAR 48.104-3,
Sharing alternative--no-cost settlement method, permits use of no-
cost VECPs settlements when the contracting officer has balanced the
administrative costs of negotiating a settlement against the
anticipated savings; and, in the contracting officer's judgment,
reliance on other VECP approaches likely would not be more cost-
effective, and the no-cost settlement would provide adequate
consideration to the Government. The no-cost VECP alternative was
not intended for use when significant cost savings are anticipated
on the instant contract.
A copy of the IRFA has been submitted to the Chief Counsel for Advocacy
of the Small Business Administration and may be obtained from the FAR
Secretariat at the address above. Comments are invited. Comments from
small entities concerning the affected FAR subpart also will be
considered in accordance with 5 U.S.C. 610. Such comments must be
submitted separately and should cite 5 U.S.C 601, et seq. (FAR Case 96-
011), 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 collection 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.
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary to preclude misinterpretation and misuse of existing
guidance and resulting VECP settlements that do not provide the
Government with appropriate consideration. However, pursuant to Pub. L.
98-577 and FAR 1.501, public comments received in response to this
interim rule will be considered in the formation of the final rule.
List of Subjects in 48 CFR Part 48
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 48 is amended as set forth below:
PART 48--VALUE ENGINEERING
1. The authority citation for 48 CFR Part 48 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 48.104-3 is revised to read as follows:
48.104-3 Sharing alternative--no-cost settlement method.
In selecting an appropriate mechanism for incorporating a VECP into
a contract, the contracting officer shall analyze the different
approaches available to determine which one would be in the
Government's best interest. Contracting officers should balance the
administrative costs of negotiating a settlement against the
anticipated savings. A no-cost settlement may be used if, in the
contracting officer's judgment, reliance on other VECP approaches
likely would not be more cost-effective, and the no-cost settlement
would provide adequate consideration to the Government. Under this
method of settlement, the contractor would keep all of the savings on
the instant contract, and all savings on its concurrent contracts only.
The Government would keep all savings resulting from concurrent
contracts placed with other sources, savings from all future contracts,
and all collateral savings. Use of this method must be by mutual
agreement of both parties for individual VECPs.
[FR Doc. 98-16121 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34079-34080]
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[DOCID:fr22jn98-28]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 5, 8, 31, 45, and 53
[FAC 97-05; Item XI]
Federal Acquisition Regulation; Technical Amendments
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Technical amendments.
-----------------------------------------------------------------------
SUMMARY: This document makes amendments to the Federal Acquisition
Regulation in order to update references and make editorial changes.
EFFECTIVE DATE: June 22, 1998.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755.
List of Subjects in 48 CFR Parts 5, 8, 31, 45, and 53
Government procurement.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 5, 8, 31, 45, and 53 are amended as set
forth below:
1. The authority citation for 48 CFR Parts 5, 8, 31, 45, and 53
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).
PART 5--PUBLICIZING CONTRACT ACTIONS
5.201 [Amended]
2. Section 5.201 is amended in paragraph (b)(2) by revising ``(see
5.205(d))'' to read ``(see 5.205(e))''.
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
8.404 [Amended]
3. Section 8.404 is amended in the first sentence of paragraph (a)
by revising ``13.202(c)(3)'' to read ``13.303-2(c)(3)''.
[[Page 34080]]
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
31.002 [Amended]
4. Section 31.002 is amended by revising ``Guidance for New
Contractors'' to read ``Information for Contractors''.
PART 45--GOVERNMENT PROPERTY
45.607-2 [Amended]
5. Section 45.607-2 is amended in the third sentence of paragraph
(b) by revising ``DLA:SIP'' to read ``DLSC-LC''.
PART 53--FORMS
6. Section 53.101 is amended by revising the last sentence to read
as follows:
Sec. 53.101 Requirements for use of forms.
* * * The specific location of each requirement is identified in
subpart 53.2.
[FR Doc. 98-16122 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: June 22, 1998 (Volume 63, Number 119)]
[Rules and Regulations]
[Page 34080-34081]
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[DOCID:fr22jn98-29]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Regulation; Small Entity Compliance Guide
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Small Entity Compliance Guide.
-----------------------------------------------------------------------
SUMMARY: This document is issued under the joint authority of the
Secretary of Defense, the Administrator of General Services, and the
Administrator for the National Aeronautics and Space Administration as
the Federal Acquisition Regulation (FAR) Council. This Small Entity
Compliance Guide has been prepared in accordance with Section 212 of
the Small Business Regulatory Enforcement Fairness Act of 1996 (Public
Law 104-121). It consists of a summary of the rules appearing in
Federal Acquisition Circular (FAC) 97-05 which amends the FAR. Further
information regarding these rules may be obtained by referring to FAC
97-05 which precedes this document. The FAC, including this document,
may be obtained from the Internet at http://www.arnet.gov/far.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, (202) 501-4755.
SUPPLEMENTARY INFORMATION:
List of Rules in FAC 97-05
----------------------------------------------------------------------------------------------------------------
Item Subject Far case Analyst
----------------------------------------------------------------------------------------------------------------
I Subcontract Consent.................... 95-011........ Klein
II Availability of Specifications.......... 97-034........ DeStefano
III Liquidated Damages...................... 89-042/97-300. Moss
IV Limits on Fee for Cost-Plus-Incentive-Fee 97-042........ DeStefano
and Cost-Plus-Award-Fee Contracts.
V Rehabilitation Act, ..............96-610........ O'Neill
Workers With Disabilities (Interim).
VI Trade Agreements Thresholds...............97-044........ Linfield
VII Restrictions on Purchases from Sudan.... 97-301........ Linfield
VIII Software Copyrights..................... 97-614........ O'Neill
IX Travel Reimbursement.................... 97-007........ Nelson
X No-Cost Value Engineering ............. 96-011........ Klein
Change Proposals (Interim).
----------------------------------------------------------------------------------------------------------------
Item I--Subcontract Consent (FAR Case 95-011)
This final rule amends FAR Parts 4, 22, 35, 36, 44, and 52 to
reduce requirements for consent to subcontract. The rule eliminates
consent requirements for contractors that have an approved purchasing
system, except when specific contracts requiring consent are identified
by the contracting officer; eliminates consent requirements for fixed-
price incentive contracts and fixed-price redeterminable contracts; and
increases, to the simplified acquisition threshold, the dollar level at
which consent requirements are included in time-and-materials, labor-
hour, and letter contracts.
Item II--Availability of Specifications (FAR Case 97-034)
This final rule amends FAR Parts 9 and 11 and the provisions at
52.211-1, 52.211-2, and 52.212-1 to update addresses and other
information regarding the availability of specifications, standards,
and item descriptions that may be cited in Government solicitations and
contracts. In addition, the rule clarifies the pricing policy regarding
specifications, standards, and commercial item descriptions issued by
GSA.
Item III--Liquidated Damages (FAR Cases 89-042 and 97-300)
This final rule amends FAR Parts 11, 19, 52, and 53 to clarify
policy on liquidated damages and commercial subcontracting plans
pertaining to requirements for subcontracting with small, small
disadvantaged, and women-owned small business concerns. The rule
implements Section 304 of the Business Opportunity Development Reform
Act of 1988 (Pub. L. 100-656) and OFPP Policy Letter 95-1,
Subcontracting Plans for Companies Supplying Commercial Items. The
interim rule published in FAC 84-50, FAR case 89-042, 54 FR 30708, July
21, 1989, has been merged with this final rule.
Item IV--Limits on Fee for Cost-Plus-Incentive-Fee and Cost-Plus-
Award-Fee Contracts (FAR Case 97-042)
This final rule amends FAR Part 16 to clarify fee limitations
pertaining to cost-reimbursement contracts. The FAR Part 15 rewrite in
FAC 97-02 eliminated non-statutory fee limitations for cost-plus-
incentive-fee and cost-plus-award-fee contracts. This final rule makes
conforming changes to FAR Part 16.
Item V--Rehabilitation Act, Workers With Disabilities (FAR Case 96-
610)
This interim rule amends FAR Subpart 22.14 and the clauses at
52.212-5 and 52.222-36 to implement revised Department of Labor
regulations regarding affirmative action to employ and advance in
employment qualified individuals with disabilities. The dollar
threshold for use of the clause at 52.222-36 has been increased from
$2,500 to $10,000.
[[Page 34081]]
Item VI--Trade Agreements Thresholds (FAR Case 97-044)
This final rule amends FAR Part 25 to implement revised thresholds
for application of the Trade Agreements Act and the North American Free
Trade Agreement, as published by the Office of the United States Trade
Representative in the Federal Register on January 14, 1998 (63 FR
2295).
Item VII--Restrictions on Purchases From Sudan (FAR Case 97-301)
This final rule amends FAR 25.701 and the clause at 52.225-11 to
add Sudan to the list of countries whose products are banned from
importation into the United States. This rule implements Executive
Order 13067, dated November 3, 1997.
Item VIII--Software Copyrights (FAR Case 97-614)
This final rule amends FAR 27.405 to add contracts for certain
computer software programs to the list of examples of contracts for
special works to which the Government may obtain copyrights.
Item IX--Travel Reimbursement (FAR Case 97-007)
The interim rule published as Item IX of FAC 97-03 is converted to
a final rule without change. The rule amends FAR 31.205-46 to increase
from $25.00 to $75.00 the threshold at which contractor personnel must
provide a receipt to support travel expenditures.
Item X--No-Cost Value Engineering Change Proposals (FAR Case 96-
011)
This interim rule revises FAR 48.104-3 to clarify that no-cost
value engineering change proposals (VECPs) may be used when, in the
contracting officer's judgment, reliance on other VECP approaches
likely would not be more cost-effective, and the no-cost settlement
would provide adequate consideration to the Government.
Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 98-16123 Filed 6-19-98; 8:45 am]
BILLING CODE 6820-EP-P