[Federal Register: March 27, 2000 (Volume 65, Number 59)]
[Rules and Regulations]
[Page 16273-16275]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27mr00-14]
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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 and Part 19 et al.
Federal Acquisition Circular 97-16; Introduction; Federal Acquisition
Regulation; Small Business Competiveness Demonstration Program;
Progress Payments and Related Financing Policies; Technical Amendments;
Small Entity Compliance Guide; Interim and Final Rules
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 97-16; 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.
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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) 97-16. The Councils drafted these FAR rules using plain
language in accordance with the White House memorandum, Plain Language
in Government Writing, dated June 1, 1998. The Councils wrote all new
and revised text using plain language. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC. The FAC, including
the SECG, is available via the Internet at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=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 97-16 and
specific FAR case number(s). Interested parties may also visit our
website at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.arnet.gov/far.
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Item Subject FAR case Analyst
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I................................ Small Business 1999-012............ Moss.
Competitiveness
Demonstration Program
(Interim).
II............................... Progress Payments and 1998-400 (98-400)... Olson.
Related Financing
Policies.
III.............................. 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.
Federal Acquisition Circular 97-16 amends the FAR as specified
below:
Item I--Small Business Competitiveness Demonstration Program (FAR
Case 1999-012)
This interim rule amends FAR Subpart 19.10 to clarify language
pertaining to the Small Business Competitiveness Demonstration (Comp.
Demo.) Program, consistent with revisions to the Program that were
contained in an OFPP and SBA joint final policy directive dated May 25,
1999.
The interim rule--
Advises the contracting officer to consider the 8(a)
Program and HUBZone Program, in addition to small business set-asides,
for acquisitions of $25,000 or less in one of the four designated
industry groups that will not be set aside for emerging small business
concerns.
Adds FAR 19.1006, Exclusions, to specify acquisitions to
which Subpart 19.10 does not apply. None of the Small Business Comp.
Demo. policies and procedures apply to orders under the Federal Supply
Schedule Program or to contracts awarded to educational and nonprofit
institutions or governmental entities.
This interim rule only will affect contracting officers at
participating agencies when acquiring supplies or services subject to
the procedures of the Small Business Comp. Demo. Program. The
participating agencies are: Department of Agriculture; Department of
Defense, except the National Imagery and Mapping Agency; Department of
Energy; Department of Health and Human Services; Department of the
Interior; Department of Transportation; Department of Veterans Affairs;
Environmental Protection Agency; General Services Administration; and
National Aeronautics and Space Administration.
Item II--Progress Payments and Related Financing Policies (FAR Case
1998-400) (98-400)
This final rule revises certain financing policies at FAR Part 32,
Contract Financing, and related contract provisions at FAR Part 52. The
rule--
Emphasizes that performance-based payments are the
preferred method of contract financing. Performance-based payments are
contract financing payments made after achievement of predetermined
goals, such as performance objectives or defined events. Contracting
officers should consider performance-based payments and deem their use
impracticable before deciding to provide customary progress payments;
Permits contracting officers to provide contract financing
on contracts awarded to large businesses if the individual contract is
$2 million or more. Previously, the threshold in the FAR for financing
a contract with a large business was $1 million;
Permits a large business to bill the Government for
subcontract costs that the large business has incurred but not actually
paid, if certain conditions are met. Previously, the FAR permitted only
small business concerns to bill for subcontract costs that have been
incurred but not paid;
Permits the contracting officer to use performance-based
payments in contracts for research and development, and in contracts
awarded through competitive negotiation procedures; and
Is effective on March 27, 2000. However, it is mandatory
only for solicitations issued on or after May 26, 2000. Contracting
officers may, at their discretion, include the clauses and provisions
in this rule in solicitations issued before that date.
Item III--Technical Amendments
These amendments update references and make editorial changes at
sections 1.106, 1.201-1, 1.304, 6.305, 9.404, 9.405, 15.404-1, 49.105-
2, 52.212-1, 52.217-9, and 52.219-23.
Dated: March 20, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 97-16 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.
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All Federal Acquisition Regulation (FAR) changes and other
directive material contained in FAC 97-16 are effective March 27, 2000.
For Item II, the rule is mandatory for solicitations issued on or after
May 26, 2000, but contracting officers may, at their discretion,
include the clauses and provisions in soliciations issued before May
26, 2000. For Item I, the rule is applicable to solicitations issued on
or after the rule's effective date.
Dated: March 15, 2000.
R.D. Kerrins, Jr.,
Acting Director, Defense Procurement.
Dated: March 20, 2000.
Sue McIver,
Acting Deputy Associate Administrator, Office of Acquisition Policy,
General Services Administration.
Dated: March 16, 2000.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and Space
Administration.
[FR Doc. 00-7307 Filed 3-24-00; 8:45 am]
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