FAC 2001-04
[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]
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Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Chapter 1 et al.
Federal Acquisition Regulations; Final Rules
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 2001-04; 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.
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SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council in this Federal Acquisition
Circular (FAC) 2001-04. A companion document, the Small Entity
Compliance Guide (SECG), follows this FAC. The FAC, including the SECG,
is available via 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 2001-04 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.................... Definitions for 2000-404 DeStefano.
Classified
Acquisitions.
II................... Special Simplified 2002-002 Moss.
Procedures for
Purchases of
Commercial Items
in Excess of the
Simplified
Acquisition
Threshold.
III.................. Notification of 2001-013 Olson.
Noncompliance with
Cost Accounting
Standards.
IV................... Executive Order 2001-017 Nelson.
13204, Revocation
of Executive Order
on Nondisplacement
of Qualified
Workers Under
Certain Contracts.
V.................... Caribbean Basin 2000-306 Davis.
Country End
Products.
VI................... Final Contract 1999-026 Klein.
Voucher Submission.
VII.................. Technical ......... .................
Amendments.
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments to these FAR cases, refer to the
specific item number and subject set forth in the documents following
these item summaries.
FAC 2001-04 amends the FAR as specified below:
Item I--Definitions for Classified Acquisitions (FAR Case 2000-404)
This final rule amends the FAR to clarify definitions that are used
for classified procurements. The final rule--
Moves the definitions of ``classified acquisition,''
``classified contract,'' and ``classified information'' from FAR 4.401
to FAR 2.101, because the definitions apply to more than one FAR part;
Amends those definitions for clarity;
Amends the definition of ``classified information'' to
reflect classification of privately generated restricted data in
accordance with Department of Energy regulations; and
Amends the policy regarding bid openings for classified
acquisitions at FAR 14.402-2 for clarity.
Item II--Special Simplified Procedures for Purchases of Commercial
Items in Excess of the Simplified Acquisition Threshold (FAR Case
2002-002)
This rule amends FAR Subpart 13.5 to implement Section 823 of the
National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-
107). Section 823 amends Section 4202(e) of the Clinger-Cohen Act of
1996 (Divisions D and E of Pub. L. 104-106; 110 Stat. 654; 10 U.S.C.
2304 note) to extend, through January 1, 2003, the expiration of the
test of special simplified procedures for purchases of commercial items
greater than the simplified acquisition threshold, but not exceeding
$5,000,000.
Item III--Notification of Noncompliance With Cost Accounting
Standards (FAR Case 2001-013)
This final rule amends Table 15-2, Instructions for Submitting
Cost/Price Proposals When Cost or Pricing Data are Required, located at
FAR 15.4, Contract pricing. The rule removes the requirement for a
contractor to notify the contracting officer when there is a
noncompliance that has an immaterial cost impact. The rule affects
contracting officers that require cost or pricing data on cost
accounting standard-covered contracts.
Item IV--Executive Order 13204, Revocation of Executive Order on
Nondisplacement of Qualified Workers Under Certain Contracts (FAR
Case 2001-017)
The interim rule published in the Federal Register at 66 FR 27416,
May 16, 2001, is converted to a final rule without change. This rule
finalizes the implementation of Executive Order (E.O.) 13204,
Revocation of Executive Order on Nondisplacement of Qualified Workers
Under Certain Contracts, signed by the President on February 17, 2001.
The E.O. requires that any rules implementing E.O. 12933,
Nondisplacement of Qualified Workers Under Certain Contracts, be
promptly rescinded. As a result, Subpart 22.12 and the clause at
52.222-50 were removed and reserved. The clause at 52.212-5 was amended
by revising the date and removing paragraph (c)(6). Contracting
officers should not take any action on any complaint filed under former
FAR Subpart 22.12.
Item V--Caribbean Basin Country End Products (FAR Case 2000-306)
This interim rule amends FAR 25.003, 25.400, 25.404, and the clause
at 52.225-5, Trade Agreements, to implement the determination of the
United States Trade Representative (USTR) to renew the treatment of
Caribbean Basin country end products as eligible products under the
Trade Agreements Act (TAA), with the exception of end products from the
Dominican Republic, Honduras, and Panama. This rule applies only if an
acquisition is subject to the TAA (see FAR 25.403). The Dominican
Republic and Honduras were already removed from the definition of
Caribbean Basin countries in FAC 97-17, FAR case 2000-003, published in
the Federal Register at 65 FR 24321, April 25, 2000. This rule now
removes Panama. Offers of end products from these countries are
[[Page 6113]]
no longer acceptable under acquisitions subject to the TAA unless the
contracting officer does not receive any offers of U.S.-made end
products or eligible products (designated, Caribbean Basin, or NAFTA
country end products).
This interim rule also amends the definition of ``Caribbean Basin
country end product'' at FAR 25.003 and in the clause at 52.225-5,
Trade Agreements, to implement Section 211 of the United States--
Caribbean Basin Trade Partnership Act and the determinations of the
USTR as to which countries qualify for the enhanced trade benefits
under that Act. Offerors of end products from the Caribbean Basin must
understand the revised definition in order to certify whether the
products that they are offering qualify as Caribbean Basin country end
products. The definition of ``Caribbean Basin country end product''
excludes products that do not qualify for duty-free treatment.
Information provided in this rule helps offerors determine the duty-
free status of a product by review of the Harmonized Tariff Schedule of
the United States.
Item VI--Final Contract Voucher Submission (FAR Case 1999-026)
This final rule amends FAR 42.705, Final indirect cost rates, and
FAR 52.216-7, Allowable Cost and Payment, to explicitly state the right
of the contracting officer to unilaterally determine the final contract
payment amount when the contractor does not submit the final invoice or
voucher within the time specified in the contract. The rule is
applicable to contracting officers that administer contract closeout
procedures.
Item VII--Technical Amendments
These amendments update sections and make editorial changes at
sections 3.807, 9.203, 12.301, 13.301, 14.205-2, 14.409-1, 15.404-4,
31.002, 31.205-17, 36.606, 42.705-1, 46.202-4, 51.101, 52.212-3,
52.213-4, 52.219-21, and 52.222-44.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2001-04 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and
Space Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 2001-04 is
effective February 20, 2002.
Dated: January 31, 2002.
Carolyn M. Balven,
Col., USAF Deputy Dir., Defense Procurement.
Dated: January 30, 2002.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy,
General Services Administration.
Dated: January 30, 2002.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and
Space Administration.
[FR Doc. 02-2912 Filed 2-7-02; 8:45 am]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 4, 14, and 32
[FAC 2001-04; FAR Case 2000-404;
Item I]
RIN 9000-AI81
Federal Acquisition Regulation; Definitions for Classified
Acquisitions
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 (Councils) have agreed to amend the
Federal Acquisition Regulation (FAR) to provide consistent definitions
for classified acquisitions.
DATES: Effective Date: February 20, 2002.
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 2001-04, FAR case 2000-404.
SUPPLEMENTARY INFORMATION:
A. Background
This rule amends the FAR to address perceived inconsistencies in
definitions that are used for classified acquisitions. The rule moves
the definitions of ``classified acquisition,'' ``classified contract,''
and ``classified information'' from FAR 4.401 to FAR 2.101, because the
definitions apply to more than one FAR part. Those definitions also
have been amended for clarity. The definition of ``classified
information'' has been further amended to reflect classification of
privately generated restricted data in accordance with Department of
Energy regulations at 10 CFR 1045.21. The rule also amends the policy
regarding bid openings for classified acquisitions at FAR 14.402-2 for
clarity.
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 65 FR 46558, July 28, 2000. Four respondents submitted
comments on the proposed rule. The Councils considered all comments in
the development of the final rule. The following issues merit noting:
Comment: Expand the definition of ``classified
information'' at FAR 2.101 to include privately generated Restricted
Data, which is established under the Atomic Energy Act of 1954, as
amended, and implemented in 10 CFR 1045.21. Response: Accepted.
Comment: Amend the ``classified contract'' definition at
FAR 2.101 to address only situations where the contract itself is
classified and add a new ``contracts involving access to classified''
definition at FAR 2.101. Commentor believed that the suggested change
was more in keeping with a ``plain language'' philosophy. Response: Not
accepted. The suggested change does not conform to the way the terms
are used in the FAR.
Comment: The rule at FAR 14.402-2 states ``the contracting
officer must not make a public record of the bids or the bid prices.''
The language is too narrow because it only restricts the contracting
officer from making a public record. Response: Accepted. The current
FAR language will be retained in lieu of the language in the proposed
rule. Keeping the present FAR language addresses the person opening the
bids.
This is not a significant regulatory action, and therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
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, while we have made
changes for clarity, we
[[Page 6114]]
have not substantively changed procedures for award and administration
of contracts.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 2, 4, 14, and 32
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 4, 14, and 32
as set forth below:
1. The authority citation for 48 CFR parts 2, 4, 14, and 32
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 2--DEFINITIONS OF WORDS AND TERMS
2. Amend section 2.101 by adding, in alphabetical order, the
definitions ``classified acquisition,'' ``classified contract,'' and
``classified information'' to read as follows:
2.101 Definitions.
* * * * *
Classified acquisition means an acquisition in which offerors must
have access to classified information to properly submit an offer or
quotation, to understand the performance requirements, or to perform
the contract.
Classified contract means any contract in which the contractor or
its employees must have access to classified information during
contract performance. A contract may be a classified contract even
though the contract document itself is unclassified.
Classified information means any knowledge that can be communicated
or any documentary material, regardless of its physical form or
characteristics, that--
(1)(i) Is owned by, is produced by or for, or is under the control
of the United States Government; or
(ii) Has been classified by the Department of Energy as privately
generated restricted data following the procedures in 10 CFR 1045.21;
and
(2) Must be protected against unauthorized disclosure according to
Executive Order 12958, Classified National Security Information, April
17, 1995, or classified in accordance with the Atomic Energy Act of
1954.
* * * * *
PART 4--ADMINISTRATIVE MATTERS
4.401 [Reserved]
3. Section 4.401 is removed and reserved.
PART 14--SEALED BIDDING
14.103-1 [Amended]
4. Amend section 14.103-1 in paragraph (c) by removing ``(see
4.401)''.
5. Revise section 14.402-2 to read as follows:
14.402-2 Classified bids.
The general public may not attend bid openings for classified
acquisitions. A bidder or its representative may attend and record the
results if the individual has the appropriate security clearance. The
contracting officer also may make the bids available at a later time to
properly cleared individuals who represent bidders. No public record
shall be made of bids or bid prices received in response to classified
invitations for bids.
PART 32--CONTRACT FINANCING
32.1103 [Amended]
6. Amend section 32.1103 in paragraph (d) by removing ``(see
4.401)''.
[FR Doc. 02-2913 Filed 2-7-02; 8:45 am]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 13
[FAC 2001-04; FAR Case 2002-002; Item II]
RIN 9000-AJ28
Federal Acquisition Regulation; Special Simplified Procedures for
Purchases of Commercial Items in Excess of the Simplified Acquisition
Threshold
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 (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to implement Section
823 of the National Defense Authorization Act for Fiscal Year 2000
(Pub. L. 107-107). Section 823 extends the test of the special
simplified procedures for purchases of commercial items greater than
the simplified acquisition threshold, but not exceeding $5,000,000,
until January 1, 2003.
DATES: Effective Date: February 20, 2002.
Applicability Date: FAR Subpart 13.5, as amended by this rule, is
applicable to solicitations issued on or after January 1, 2002.
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 2001-04, FAR case 2002-002.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR Subpart 13.5 to implement section 823 of
the National Defense Authorization Act for Fiscal Year 2002 (Pub. L.
107-107). Section 823 amends section 4202(e) of the Clinger-Cohen Act
of 1996 (Divisions D and E of Pub. L. 104-106; 110 Stat. 654; 10 U.S.C.
2304 note) to extend, through January 1, 2003, the expiration of the
test of special simplified procedures for purchases of commercial items
greater than the simplified acquisition threshold, but not exceeding
$5,000,000.
This is not a significant regulatory action, and therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
This 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, the Councils will
consider comments from small entities concerning the affected FAR
Subpart 13.5 in accordance with 5 U.S.C. 610. Interested parties must
submit such comments separately and should cite 5 U.S.C. 601, et seq.
(FAC 2001-04, FAR case 2002-002), in correspondence.
[[Page 6115]]
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 13
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 13 as set forth
below:
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
1. The authority citation for 48 CFR part 13 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).
13.500 [Amended]
2. Amend section 13.500 in paragraph (d) by removing ``January 1,
2002'' and adding ``January 1, 2003'' in its place.
[FR Doc. 02-2914 Filed 2-7-02; 8:45 am]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 15
[FAC 2001-04; FAR Case 2001-013;
Item III]
RIN 9000-AJ29
Federal Acquisition Regulation; Notification of Noncompliance
With Cost Accounting Standards
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 (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to remove the
requirement for a contractor to notify the contracting officer when
there is a cost accounting standard (CAS) noncompliance that has an
immaterial cost impact.
DATES: Effective Date: February 20, 2002.
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. Jeremy Olson at (202) 501-3221. Please cite FAC
2001-04, FAR case 2001-013.
SUPPLEMENTARY INFORMATION:
A. Background
Contracting officers may require submission of cost or pricing data
in the format indicated in Table 15-2, Instructions for Submitting
Cost/Price Proposals When Cost or Pricing Data are Required, which is
included in FAR 15.408, Solicitation provisions and contract clauses.
This Table requires contractors to state whether they have been
notified that they are or may be in noncompliance with the CAS. When
there is a noncompliance and the cognizant Federal agency official
determines the noncompliance has an immaterial cost impact, it is not
necessary for the contractor to notify the contracting officer because
the noncompliance will not impact the contract price. If the
noncompliance is not corrected and it subsequently results in
materially increased costs to the Government, the provisions of the
applicable CAS clauses will continue to be enforced. Since the
notification requirement is an inefficient use of resources and may
cause an unnecessary delay, this rule deletes it.
This is not a significant regulatory action, and therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
This 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, the Councils will consider comments from small entities
concerning the affected FAR Part 15 in accordance with 5 U.S.C. 610.
Interested parties must submit such comments separately and should cite
5 U.S.C. 601, et seq. (FAC 2001-04, FAR case 2001-013), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 15
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 15 as set forth
below:
1. The authority citation for 48 CFR part 15 continues to read as
follows:
PART 15--CONTRACTING BY NEGOTIATION
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. In section 15.408, amend Table 15-2, which follows paragraph
(m)(4), by revising paragraph A.(8) of the General Instructions to read
as follows:
15.408 Solicitation provisions and contract clauses.
* * * * *
Table 15-2--Instructions for Submitting Cost/Price Proposals When
Cost or Pricing Data are Required
* * * * *
I. General Instructions
A. * * *
(8) Whether your organization is subject to cost accounting
standards; whether your organization has submitted a CASB Disclosure
Statement, and if it has been determined adequate; whether you have
been notified that you are or may be in noncompliance with your
Disclosure Statement or CAS (other than a noncompliance that the
cognizant Federal agency official has determined to have an immaterial
cost impact), and, if yes, an explanation; whether any aspect of this
proposal is inconsistent with your disclosed practices or applicable
CAS, and, if so, an explanation; and whether the proposal is consistent
with your established estimating and accounting principles and
procedures and FAR Part 31, Cost Principles, and, if not, an
explanation;
* * * * *
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22 and 52
[FAC 2001-04; FAR Case 2001-017;
Item IV]
RIN 9000-AJ13
Federal Acquisition Regulation; Executive Order 13204, Revocation
of Executive Order on Nondisplacement of Qualified Workers Under
Certain Contracts
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 (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to implement
Executive Order (E.O.) 13204, Revocation of Executive Order on
Nondisplacement of Qualified Workers Under Certain Contracts, signed by
the President on February 17, 2001. The E.O. requires that any rules
implementing E.O. 12933, Nondisplacement of Qualified Workers Under
Certain Contracts, be promptly rescinded.
DATES: Effective Date: February 20, 2002.
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 2001-04, FAR case 2001-017.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends the FAR to implement Executive Order (E.O.)
13204, Revocation of Executive Order on Nondisplacement of Qualified
Workers Under Certain Contracts. The E.O. required the prompt recession
of any orders, rules, regulations, guidelines, or policies implementing
or enforcing E.O. 12933, Nondisplacement of Qualified Workers Under
Certain Contracts, to the extent consistent with law.
DoD, GSA, and NASA published an interim rule in the Federal
Register at 66 FR 27416, May 16, 2001. No comments were received in
response to the notice. The interim rule is converted to a final rule
without change.
This is not a significant regulatory action, and therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
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 rule merely removes
requirements from the FAR that implemented regulations issued by the
Department of Labor (DoL) for which DoL certified would not have a
significant economic effect on a substantial number of small entities
(see Federal Register at 62 FR 28175, May 22, 1997).
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 22 and 52
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Interim Rule Adopted as Final Without Change
Accordingly, DoD, GSA, and NASA adopt the interim rule amending 48
CFR parts 22 and 52, which was published in the Federal Register at 66
FR 27416, May 16, 2001, as a final rule without change.
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
[FR Doc. 02-2916 Filed 2-7-02; 8:45 am]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2001-04; FAR Case 2000-306;
Item V]
RIN 9000-AJ27
Federal Acquisition Regulation; Caribbean Basin Country End
Products
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to implement the
determination of the United States Trade Representative (USTR) to
extend the treatment of certain end products, from countries designated
by the President as beneficiaries under the Caribbean Basin Economic
Recovery Act, as eligible products under the Trade Agreements Act, with
the exception of end products from the Dominican Republic, Honduras,
and Panama. This rule also implements Section 211 of the United
States--Caribbean Basin Trade Partnership Act and the determination of
the USTR as to which countries qualify for the enhanced trade benefits
under that Act.
DATES: Effective Date: February 20, 2002.
Comment Date: Interested parties should submit comments to the FAR
Secretariat at the address shown below on or before April 9, 2002, to
be considered in the formulation of a final rule.
ADDRESSES: Submit written comments to: General Services Administration,
FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, Attn: Ms. Laurie
Duarte, Washington, DC 20405.
Submit electronic comments via the Internet to: farcase.2000-
306@gsa.gov
Please submit comments only and cite FAC 2001-04, FAR case 2000-
306, 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
[[Page 6117]]
status or publication schedules. For clarification of content, contact
Ms. Cecelia L. Davis, Procurement Analyst, at (202) 219-0202. Please
cite FAC 2001-04, FAR case 2000-306.
SUPPLEMENTARY INFORMATION:
A. Background
The USTR published a notice in the Federal Register on December 14,
2001 (66 FR 64897), renewing the treatment of certain end products,
from countries designated by the President as beneficiaries under the
Caribbean Basin Economic Recovery Act, as eligible products under the
Trade Agreements Act, with the exception of end products from the
Dominican Republic, Honduras, and Panama. This rule implements that
determination.
This interim rule also amends the FAR to implement Section 211 of
the United States--Caribbean Basin Trade Partnership Act (Title II of
Pub. L. 106-200) and the determinations of the USTR under that Act. To
date, the USTR has published determinations in the Federal Register at
65 FR 60236, October 10, 2000; 65 FR 69988, November 21, 2000; 66 FR
9888, February 12, 2001, and 66 FR 31272, June 11, 2001. Section 211
amends the Caribbean Basin Economic Recovery Act at 19 U.S.C. 2703 to
provide enhanced trade benefits for Caribbean Basin countries that have
implemented and follow, or are making substantial progress toward
implementing and following, the customs procedures required by the
Caribbean Basin Trade Partnership Act. Certain products of those
countries now qualify for duty-free treatment, so they can be treated
as Caribbean Basin country end products. Offerors can find these
products, and the current list of countries, in the Harmonized Tariff
Schedule (HTS). The FAR gives information on the HTS in FAR clause
52.225-5, Trade Agreements. The USTR notices in the Federal Register
announced the determination that Barbados, Belize, Costa Rica,
Dominican Republic, El Salvador, Guatemala, Guyana, Haiti, Honduras,
Jamaica, Nicaragua, Panama, Saint Lucia, and Trinidad and Tobago
currently qualify for the enhanced trade benefits and modified the
Harmonized Tariff Schedule of the United States accordingly.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
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 it only
affects a limited number of products from a few Caribbean Basin
countries. The Berry Amendment (formerly at 10 U.S.C. 2241, note, but
recently enacted as 10 U.S.C. 2533a) still prohibits the Department of
Defense from buying most of the textile and apparel articles receiving
duty-free treatment under this Act. Therefore, an Initial Regulatory
Flexibility Analysis has not been performed. The Councils will consider
comments from small entities concerning the affected FAR parts in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 601, et seq. (FAC 2001-04,
FAR case 2000-306), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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, the Administrator of General Services, and the
Administrator of the National Aeronautics and Space Administration that
urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
because the determination of the USTR to provide enhanced benefits to
the products of certain countries under the Caribbean Basin Trade
Partnership Act became effective on October 2, 2000, and because the
USTR reinstated the expired Caribbean Basin program on December 14,
2001, effective immediately. However, pursuant to Public Law 98-577 and
FAR 1.501, the Councils will consider public comments received in
response to this interim rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 25 and 52
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 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. Amend section 25.003 in the definition ``Caribbean Basin
country'' by removing ``Panama,''; and by revising the definition
``Caribbean Basin country end product'' to read as follows:
25.003 Definitions.
* * * * *
Caribbean Basin country end product--
(1) Means an article that--
(i)(A) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(B) In the case of an article that consists in whole or in part of
materials from another country, has been substantially transformed in a
Caribbean Basin country into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed; and
(ii) Is not excluded from duty-free treatment for Caribbean
countries under 19 U.S.C. 2703(b).
(A) For this reason, the following articles are not Caribbean Basin
country end products:
(1) Tuna, prepared or preserved in any manner in airtight
containers.
(2) Petroleum, or any product derived from petroleum.
(3) Watches and watch parts (including cases, bracelets, and
straps) of whatever type including, but not limited to, mechanical,
quartz digital, or quartz analog, if such watches or watch parts
contain any material that is the product of any country to which the
Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates
of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and
Vietnam).
(4) Certain of the following: textiles and apparel articles;
footwear, handbags, luggage, flat goods, work gloves, and leather
wearing apparel; or handloomed, handmade, and folklore articles.
(B) Access to the HTSUS to determine duty-free status of articles
of the types listed in paragraph (1)(ii)(A)(4) of this definition is
available via the Internet at
[[Page 6118]]
http://www.customs.ustreas.gov/impoexpo/impoexpo.htm. In particular,
see the following:
(1) General Note 3(c), Products Eligible for Special Tariff
treatment.
(2) General Note 17, Products of Countries Designated as
Beneficiary Countries under the United States--Caribbean Basin Trade
Partnership Act of 2000.
(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and
Returned, Advanced or Improved Abroad, U.S. Note 7(b).
(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for
Special Tariff Benefits under the United States-Caribbean Basin Trade
Partnership Act; and
(2) Refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the acquisition,
includes services (except transportation services) incidental to the
article, provided that the value of those incidental services does not
exceed that of the article itself.
* * * * *
25.400 [Amended]
3. Amend section 25.400 in paragraph (a)(2) by removing the words
``Republic and Honduras'' and adding ``Republic, Honduras, and
Panama,'' in its place.
25.404 [Amended]
4. Amend section 25.404 by removing the second and third sentences.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Amend section 52.225-5 by--
a. Removing ``Panama,'' from the definition ``Caribbean Basin
country''; and
b. Revising the definition ``Caribbean Basin country end product''
to read as follows:
52.225-5 Trade Agreements.
* * * * *
Trade Agreements (Feb 2002)
(a) * * *
* * * * *
Caribbean Basin country end product--
(1) Means an article that--
(i)(A) Is wholly the growth, product, or manufacture of a
Caribbean Basin country; or
(B) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Caribbean Basin country into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed; and
(ii) Is not excluded from duty-free treatment for Caribbean
countries under 19 U.S.C. 2703(b).
(A) For this reason, the following articles are not Caribbean
Basin country end products:
(1) Tuna, prepared or preserved in any manner in airtight
containers;
(2) Petroleum, or any product derived from petroleum;
(3) Watches and watch parts (including cases, bracelets, and
straps) of whatever type including, but not limited to, mechanical,
quartz digital, or quartz analog, if such watches or watch parts
contain any material that is the product of any country to which the
Harmonized Tariff Schedule of the United States (HTSUS) column 2
rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and
Vietnam); and
(4) Certain of the following: textiles and apparel articles;
footwear, handbags, luggage, flat goods, work gloves, and leather
wearing apparel; or handloomed, handmade, and folklore articles;
(B) Access to the HTSUS to determine duty-free status of
articles of these types is available at http://
www.customs.ustreas.gov/impoexpo/impoexpo.htm. In particular, see
the following:
(1) General Note 3(c), Products Eligible for Special Tariff
treatment.
(2) General Note 17, Products of Countries Designated as
Beneficiary Countries under the United States--Caribbean Basin Trade
Partnership Act of 2000.
(3) Section XXII, Chapter 98, Subchapter II, Articles Exported
and Returned, Advanced or Improved Abroad, U.S. Note 7(b).
(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for
Special Tariff Benefits under the United States--Caribbean Basin
Trade Partnership Act; and
(2) Refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the
acquisition, includes services (except transportation services)
incidental to the article, provided that the value of those
incidental services does not exceed that of the article itself.
* * * * *
[FR Doc. 02-2917 Filed 2-7-02; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]
[Page 6118-6119]
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[DOCID:fr08fe02-20]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 42 and 52
[FAC 2001-04; FAR Case 1999-026;
Item VI]
RIN 9000-AI86
Federal Acquisition Regulation; Final Contract Voucher Submission
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 (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to explicitly state
the right of the contracting officer to unilaterally determine the
final contract payment amount when the contractor does not submit the
final invoice or voucher within the time specified in the contract.
DATES: Effective Date: February 20, 2002.
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 2001-04, FAR case 1999-026.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 65 FR 46332, July 27, 2000, with a request for comment. The
proposed rule amended FAR 42.705, Final indirect cost rates, and FAR
52.216-7, Allowable Cost and Payment, to--
Explicitly state that the contracting officer may issue a
unilateral modification that reflects the contracting officer's
determination of the amounts due to the contractor under the contract.
The contracting officer may make this determination if the contractor
fails to submit a completion invoice or voucher within the time
specified (normally 120 days after settlement of the final indirect
cost rates but may be longer, if approved in writing by the contracting
officer); and
Make the contracting officer's determination not subject
to appeal under the Disputes clause of the contract.
Thirteen respondents submitted public comments to the proposed
rule. The Councils considered all comments when developing the final
rule, which was modified as a result. The following issues merit
noting:
1. Almost half of the respondents questioned the language in
paragraphs 42.705(c)(2) and 52.216-7(d)(6)(ii) of the proposed rule
that stated that the contracting officer's decision would not be
subject to appeal under the Disputes clause. The Councils agreed that
precluding the right to appeal is not equitable and may result in
inaccurate financial payment decisions. The rule has been revised by
making the contracting officer's decision final and
[[Page 6119]]
binding, but does not preclude contractor appeal under the Disputes
clause.
2. Several respondents disagreed with the conclusion that
contractor failure to submit a final voucher is the leading reason
contract closeouts are not accomplished in a timely manner. The
Councils agreed that there are many causes for delays in contract
closeout and that it would be helpful to list examples of circumstances
a contracting officer should consider in deciding whether or not to
extend the time for submission of a final voucher or to issue a final
decision regarding final payment. The rule has been revised at
42.705(b) by providing examples of extenuating circumstances that may
justify the contracting officer's extension of the 120-day due date for
submission of a completion invoice or voucher.
3. Several respondents indicated that the rule should define when
settlement of final indirect rates takes place. The Councils did not
concur since the actual date of settlement depends on the circumstances
of the negotiation. Establishing a universal definition of settlement
date is unnecessary and would reduce the flexibility of both
contractors and contracting officers.
4. One respondent stated that the rule should include a provision
requiring the contracting officer to provide written notice to the
contractor and to provide an opportunity to respond before the issuance
of a unilateral determination of amounts due. The Councils did not
agree. The requirement to submit a timely final invoice is already
stated in FAR 52.216-7, Allowable Cost and Payment. Therefore, the
contractor is already responsible for complying with this requirement
or communicating with the contracting officer if the requirement cannot
be met. It is unnecessary to repeat contract requirements in separate
notices.
5. Several respondents requested that the rule explicitly preclude
the application of the proposed revised closeout procedures to existing
contracts. The Councils did not concur. Contracting officers already
have the authority to determine final voucher payment amounts and issue
final decisions. While the new language in this rule makes that
authority explicit, it does not, and should not, impact the contracting
officer's authority under existing contracts.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
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 this rule does not
change the current policies at FAR 42.705 that require the contractor
to submit a completion invoice or voucher within 120 days (or longer
period, if approved in writing by the contracting officer) after
settlement of the final indirect costs rates. The rule simply makes it
explicit that if the contractor fails to submit the completion invoice
or voucher within the time required, the contracting officer may
determine the amounts due the contractor and record this determination
in a unilateral modification.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 42 and 52
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 42 and 52 as set
forth below:
1. The authority citation for 48 CFR parts 42 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 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
2. Amend section 42.705 by revising paragraph (b) and by adding
paragraph (c) to read as follows:
42.705 Final indirect cost rates.
* * * * *
(b) Within 120 days (or longer period, if approved in writing by
the contracting officer,) after settlement of the final annual indirect
cost rates for all years of a physically complete contract, the
contractor must submit a completion invoice or voucher reflecting the
settled amounts and rates. To determine whether a period longer than
120 days is appropriate, the contracting officer should consider
whether there are extenuating circumstances, such as the following:
(1) Pending closeout of subcontracts awaiting Government audit.
(2) Pending contractor, subcontractor, or Government claims.
(3) Delays in the disposition of Government property.
(4) Delays in contract reconciliation.
(5) Any other pertinent factors.
(c)(1) If the contractor fails to submit a completion invoice or
voucher within the time specified in paragraph (b) of this section, the
contracting officer may--
(i) Determine the amounts due to the contractor under the contract;
and
(ii) Record this determination in a unilateral modification to the
contract.
(2) This contracting officer determination must be issued as a
final decision in accordance with 33.211.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Amend section 52.216-7 in paragraph (d) by redesignating
paragraph (d)(4) as (d)(5) and paragraph (d)(5) as (d)(4),
respectively; revising the newly designated (d)(5); adding paragraph
(d)(6); and by amending paragraph (h)(1) by removing ``paragraph
(d)(4)'' and adding ``paragraph (d)(5)'' in its place. The revised text
reads as follows:
52.216-7 Allowable cost and payment
* * * * *
Allowable Cost and Payment (Feb 2002)
* * * * *
(d) * * *
(5) Within 120 days (or longer period if approved in writing by
the Contracting Officer) after settlement of the final annual
indirect cost rates for all years of a physically complete contract,
the Contractor shall submit a completion invoice or voucher to
reflect the settled amounts and rates.
(6)(i) If the Contractor fails to submit a completion invoice or
voucher within the time specified in paragraph (d)(5) of this
clause, the Contracting Officer may--
(A) Determine the amounts due to the Contractor under the
contract; and
(B) Record this determination in a unilateral modification to
the contract.
(ii) This determination constitutes the final decision of the
Contracting Officer in accordance with the Disputes clause.
* * * * *
[FR Doc. 02-2918 Filed 2-7-02; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]
[Page 6120-6121]
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[DOCID:fr08fe02-21]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 3, 9, 12, 13, 14, 15, 31, 36, 42, 46, 51, and 52
[FAC 2001-04; Item VII]
Federal Acquisition Regulation; Technical Amendments
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This document makes amendments to the Federal Acquisition
Regulation in order to update references and make editorial changes.
DATES: Effective Date: February 8, 2002.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755. Please cite FAC 2001-
04, Technical Amendments.
List of Subjects in 48 CFR Parts 3, 9, 12, 13, 14, 15, 31, 36, 42,
46, 51, and 52
Government procurement.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 3, 9, 12, 13, 14,
15, 31, 36, 42, 46, 51, and 52 as set forth below:
1. The authority citation for 48 CFR parts 3, 9, 12, 13, 14, 15,
31, 36, 42, 46, 51, 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 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
3.807 [Amended]
2. Amend section 3.807 by removing ``3804-3408,'' and adding
``3804-3808,'' in its place.
PART 9--CONTRACTOR QUALIFICATIONS
3. Amend section 9.203 by revising paragraph (c)(2) to read as
follows:
9.203 QPL's, QML's, and QBL's.
* * * * *
(c) * * *
(2) Defense Standardization Manual 4120.24-M, Appendix 2, as
amended by Military Standards 961 and 962.
* * * * *
PART 12--ACQUISITION OF COMMERCIAL ITEMS
12.301 [Amended]
4. Amend section 12.301 in paragraph (e)(1) by removing ``16.505''
and adding ``16.506'' in its place.
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
13.301 [Amended]
5. Amend section 13.301 in the first sentence of paragraph (b) by
removing ``GSA Federal Supply Service Contract Guide for Governmentwide
Commercial Purchase Card Service'' and adding ``current GSA credit card
contract'' in its place.
PART 14--SEALED BIDDING
14.205-2 [Amended]
6. Amend section 14.205-2 in paragraph (b) by adding ``or
suspended'' after the word ``debarred''.
14.409-1 [Amended]
7. Amend section 14.409-1 in the introductory text of paragraph
(a)(2) by removing ``(see 25.408(a)(4)),'' and adding ``(see
25.408(a)(5)),'' in its place.
PART 15--CONTRACTING BY NEGOTIATION
15.404-4 [Amended]
8. Amend section 15.404-4 in the introductory text of paragraph
(c)(4)(i) by removing ``10 U.S.C. 2306(e)'' and adding ``10 U.S.C.
2306(d)'' in its place.
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
9. Revise section 31.002 to read as follows:
31.002 Availability of accounting guide.
Contractors needing assistance in developing or improving their
accounting systems and procedures may request a copy of the Defense
Contract Audit Agency Pamphlet No. 7641.90, Information for
Contractors. The pamphlet is available via the Internet at http://
www.dcaa.mil.
31.205-17 [Amended]
10. Amend section 31.205-17 by designating the undesignated
introductory paragraph as ``(a) Definitions.''; and in the definition
``Idle facilities'' by redesignating paragraphs (1), (i), (ii), (2),
and (3) as (b), (b)(1), (b)(2), (c), and (d), respectively.
PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
36.606 [Amended]
11. Amend section 36.606 in the first sentence of paragraph (f) by
removing ``best and final offer'' and adding ``final proposal
revision'' in its place.
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
12. Amend section 42.705-1 by revising paragraph (b)(1) to read as
follows:
42.705-1 Contracting officer determination procedure.
* * * * *
(b) Procedures. (1) In accordance with the Allowable Cost and
Payment clause at 52.216-7 or 52.216-13, the contractor shall submit to
the contracting officer (or cognizant Federal agency official) and to
the cognizant auditor a final indirect cost rate proposal. The required
content of the proposal and supporting data will vary depending on such
factors as business type, size, and accounting system capabilities. The
contractor, contracting officer, and auditor must work together to make
the proposal, audit, and negotiation process as efficient as possible.
Accordingly, each contractor shall submit an adequate proposal to the
contracting officer (or cognizant Federal agency official) and auditor
within the 6-month period following the expiration of each of its
fiscal years. Reasonable extensions, for exceptional circumstances
only, may be requested in writing by the contractor and granted in
writing by the contracting officer. A contractor shall support its
proposal with adequate supporting data. For guidance on what generally
constitutes an adequate final indirect cost rate proposal and
supporting data, contractors should refer to the Model Incurred Cost
Proposal in Chapter 6 of the Defense Contract Audit Agency Pamphlet No.
7641.90, Information for Contractors, available via the Internet at
http://www.dcaa.mil.
* * * * *
PART 46--QUALITY ASSURANCE
13. Amend section 46.202-4 by revising the last sentence of
paragraph (b) to read as follows:
46.202-4 Higher-level contract quality requirements.
* * * * *
(b) * * * Examples of higher-level quality standards are ISO 9001,
9002, or 9003; ANSI/ISO/ASQ Q9001-2000;
[[Page 6121]]
ANSI/ASQC Q9001, Q9002, or Q9003; QS-9000; AS-9000; ANSI/ASQC E4; and
ANSI/ASME NQA-1.
PART 51--CONTRACTOR USE OF GOVERNMENT SUPPLY SOURCES
51.101 [Amended]
14. Amend section 51.101 in paragraph (b) by removing ``(see 41 CFR
101-26.407)'' and adding ``(see 41 CFR 101-26.507)'' in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
15. Amend section 52.212-3 by--
a. Revising the date of the provision;
b. Removing the reference ``(c)(7)(i)'' from paragraph (c)(9)(ii)
and adding ``(c)(9)(i)'' in its place;
c. Revising paragraph (h); and
d. Removing from Alternate I ``(Oct 2000)'' and adding ``(Feb
2002)'' in its place; and by removing ``(c)(2)'' from paragraph (10) of
Alternate I and adding ``(c)(4)'' in its place. The revised text reads
as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
Offeror Representations and Certifications--Commercial Items (Feb
2002)
* * * * *
(h) Certification Regarding Debarment, Suspension or Ineligibility
for Award (Executive Order 12549). (Applies only if the contract value
is expected to exceed the simplified acquisition threshold.) The
offeror certifies, to the best of its knowledge and belief, that the
offeror and/or any of its principals--
(1) [ ] Are, [ ] are not presently debarred, suspended, proposed
for debarment, or declared ineligible for the award of contracts by any
Federal agency; and
(2) [ ] Have, [ ] have not, within a three-year period preceding
this offer, been convicted of or had a civil judgment rendered against
them for: Commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a Federal, state or
local government contract or subcontract; violation of Federal or state
antitrust statutes relating to the submission of offers; or Commission
of embezzlement, theft, forgery, bribery, falsification or destruction
of records, making false statements, tax evasion, or receiving stolen
property; and
(3) [ ] Are, [ ] are not presently indicted for, or otherwise
criminally or civilly charged by a Government entity with, commission
of any of these offenses.
* * * * *
16. Amend section 52.213-4 by revising paragraph (a)(2)(vi); and in
paragraph (b)(1)(viii), by removing ``(Jan 2001)'' and adding ``(Dec
2001)'' in its place. The revised text reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items) (Feb 2002)
(a) * * *
(2) * * *
(vi) 52.244-6, Subcontracts for Commercial Items (Dec 2001).
* * * * *
52.219-21 [Amended]
17. Amend section 52.219-21 in the prescription by removing
``19.1007(c)'' and adding ``19.1008(c)'' in its place.
52.222-44 [Amended]
18. Amend section 52.222-44 by revising the date of the clause to
read ``(Feb 2002)''; and in paragraph (d) by removing ``paragraph (b)''
and adding ``paragraph (c)'' in its place.
[FR Doc. 02-2919 Filed 2-7-02; 8:45 am]
BILLING CODE 6820-EP-P
[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]
[Page 6121-6122]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe02-22]
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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.
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 rules
appearing in Federal Acquisition Circular (FAC) 2001-04 which amend the
FAR. An asterisk (*) next to a rule indicates that a regulatory
flexibility analysis has been prepared in accordance with 5 U.S.C. 604.
Interested parties may obtain further information regarding these rules
by referring to FAC 2001-04 which precedes this document. These
documents are also available via the Internet at http://www.arnet.gov/
far.
FOR FURTHER INFORMATION CONTACT: Laurie Duarte, FAR Secretariat, (202)
501-4225. For clarification of content, contact the analyst whose name
appears in the table below.
List of Rules in FAC 2001-04
------------------------------------------------------------------------
Item Subject FAR case Analyst
------------------------------------------------------------------------
I................. Definitions for 2000-404 DeStefano.
Classified
Acquisitions.
II................ Special Simplified 2002-002 Moss.
Procedures for
Purchases of
Commercial Items in
Excess of the
Simplified
Acquisition
Threshold.
III............... Notification of 2001-013 Olson.
Noncompliance with
Cost Accounting
Standards.
IV................ Executive Order 2001-017 Nelson.
13204, Revocation
of Executive Order
on Nondisplacement
of Qualified
Workers Under
Certain Contracts.
V................. Caribbean Basin 2000-306 Davis.
Country End
Products.
VI................ Final Contract 1999-026 Klein.
Voucher Submission.
------------------------------------------------------------------------
[[Page 6122]]
VII Technical Amendments
Item I--Definitions for Classified Acquisitions (FAR Case 2000-404)
This final rule amends the FAR to clarify definitions that are used
for classified procurements. The final rule--
Moves the definitions of ``classified acquisition,''
``classified contract,'' and ``classified information'' from FAR 4.401
to FAR 2.101, because the definitions apply to more than one FAR part;
Amends those definitions in accordance for clarity;
Amends the definition of ``classified information'' to
reflect classification of privately generated restricted data in
accordance with Department of Energy regulations; and
Amends the policy regarding bid openings for classified
acquisitions at FAR 14.402-2 for clarity.
Item II--Special Simplified Procedures for Purchases of Commercial
Items in Excess of the Simplified Acquisition Threshold (FAR Case
2002-002)
This rule amends FAR Subpart 13.5 to implement Section 823 of the
National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-
107). Section 823 amends Section 4202(e) of the Clinger-Cohen Act of
1996 (Divisions D and E of Pub. L. 104-106; 110 Stat. 654; 10 U.S.C.
2304 note) to extend, through January 1, 2003, the expiration of the
test of special simplified procedures for purchases of commercial items
greater than the simplified acquisition threshold, but not exceeding
$5,000,000.
Item III--Notification of Noncompliance with Cost Accounting
Standards (FAR Case 2001-013)
This final rule amends Table 15-2, Instructions for Submitting
Cost/Price Proposals When Cost or Pricing Data are Required, located at
FAR 15.4, Contract pricing. The rule removes the requirement for a
contractor to notify the contracting officer when there is a
noncompliance that has an immaterial cost impact. The rule affects
contracting officers that require cost or pricing data on cost
accounting standard-covered contracts.
Item IV--Executive Order 13204, Revocation of Executive Order on
Nondisplacement of Qualified Workers Under Certain Contracts (FAR
Case 2001-017)
The interim rule published in the Federal Register at 66 FR 27416,
May 16, 2001, is converted to a final rule without change. This rule
finalizes the implementation of Executive Order (E.O.) 13204,
Revocation of Executive Order on Nondisplacement of Qualified Workers
Under Certain Contracts, signed by the President on February 17, 2001.
The E.O. requires that any rules implementing E.O. 12933,
Nondisplacement of Qualified Workers Under Certain Contracts, be
promptly rescinded. As a result, Subpart 22.12 and the clause at
52.222-50 was removed and reserved. The clause at 52.212-5 was amended
by revising the date and removing paragraph (c)(6). Contracting
officers should not take any action on any complaint filed under former
FAR Subpart 22.12.
Item V--Caribbean Basin Country End Products (FAR Case 2000-306)
This interim rule amends FAR 25.003, 25.400, 25.404, and the clause
at 52.225-5, Trade Agreements, to implement the determination of the
United States Trade Representative (USTR) to renew the treatment of
Caribbean Basin country end products as eligible products under the
Trade Agreements Act (TAA), with the exception of end products from the
Dominican Republic, Honduras, and Panama. This rule applies only if an
acquisition is subject to the TAA (see FAR 25.403). The Dominican
Republic and Honduras were already removed from the definition of
Caribbean Basin countries in FAC 97-17, FAR case 2000-003, published in
the Federal Register at 65 FR 24321, April 25, 2000. This rule now
removes Panama. Offers of end products from these countries are no
longer acceptable under acquisitions subject to the TAA unless the
contracting officer does not receive any offers of U.S.-made end
products or eligible products (designated, Caribbean Basin, or NAFTA
country end products).
This interim rule also amends the definition of ``Caribbean Basin
country end product'' at FAR 25.003 and in the clause at 52.225-5,
Trade Agreements, to implement Section 211 of the United States--
Caribbean Basin Trade Partnership Act and the determinations of the
USTR as to which countries qualify for the enhanced trade benefits
under that Act. Offerors of end products from the Caribbean Basin must
understand the revised definition in order to certify whether the
products that they are offering qualify as Caribbean Basin country end
products. The definition of ``Caribbean Basin country end product''
excludes products that do not qualify for duty-free treatment.
Information provided in this rule helps offerors determine the duty-
free status of a product by review of the Harmonized Tariff Schedule of
the United States.
Item VI--Final Contract Voucher Submission (FAR Case 1999-026)
This final rule amends FAR 42.705, Final indirect cost rates, and
FAR 52.216-7, Allowable Cost and Payment, to explicitly state the right
of the contracting officer to unilaterally determine the final contract
payment amount when the contractor does not submit the final invoice or
voucher within the time specified in the contract. The rule is
applicable to contracting officers that administer contract closeout
procedures.
Item VII--Technical Amendments
These amendments update sections and make editorial changes at
sections 3.807, 9.203, 12.301, 13.301, 14.205-2, 14.409-1, 15.404-4,
31.002, 31.205-17, 36.606, 42.705-1, 46.202-4, 51.101, 52.212-3,
52.213-4, 52.219-21, and 52.222-44.
Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 02-2920 Filed 2-7-02; 8:45 am]
BILLING CODE 6820-EP-P