[Federal Register: December 18, 2001 (Volume 66, Number 243)]
[Rules and Regulations]
[Page 65347-65349]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18de01-12]
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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 Circular 2001-02; Introduction and Federal
Acquisition Regulation; Energy-Efficiency of Supplies and Services and
Prompt Payment and the Recovery of Overpayment, et al.; Final Rules
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 2001-02; Introduction
AGENCIES: Department of Defense (DoD), General ServicesAdministration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final 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) 2001-02. 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
that 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 2001-02 and specific FAR case number(s).
Interested parties may also visit our web site 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 Definitions of 2000-015 Davis
``Component'' and
``End Product''.
II Energy Efficiency of 1999-011 Smith
Supplies and Services.
III Prompt Payment and the 1999-023 Olson
Recovery of
Overpayment.
IV Javits-Wagner-O'Day 1999-017 Nelson
Act Subcontract
Preference Under
Service Contracts.
V Discussion 1999-022 DeStefano
Requirements.
VI Definition of 2000-017 Olson
Subcontract in FAR
Subpart 15.4.
VII North American 2000-604 Cundiff
Industry
Classification System.
VIII Iceland--Newly 2001-025 Davis
Designated Country
under Trade
Agreements Act.
IX Contractor Personnel 2000-609 Nelson
in the Procurement of
Information
Technology Services.
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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 2001-02 amends the FAR as specified below:
Item I--Definitions of ``Component'' and ``End Product'' (FAR Case
2000-015)
This final rule amends the FAR to restore the unique Part 25
definitions of ``component'' and ``end product'' for acquisition of
supplies. In addition, the Councils have made minor revisions to the
definitions of ``component'' and ``cost of components'' for acquisition
of construction. These definitions are used by offerors to determine
whether offered end products or construction material meet the
requirements of the Buy American Act and Balance of Payments Program or
trade agreements.
Item II--Energy Efficiency of Supplies and Services (FAR Case 1999-
011)
This final rule amends the FAR to implement Executive Order 13123,
Greening the Government through Efficient Energy Management. The rule--
Requires contracting officers, when acquiring energy-using
products, to buy energy-efficient products if life-cycle cost-effective
and available;
Directs contracting officers to Internet sources for more
detailed information on ENERGY STAR and other energy-efficient
products; and
Provides guidance on energy-savings performance contracts
(ESPCs), including--
An explanation of what they are and when they should be
used; and
Procedures for the solicitation and award of ESPCs, and
the evaluation of unsolicited proposals for ESPCs.
The rule will only affect contracting officers that--
Acquire energy-using products or services;
Contract for design, construction, renovation, or
maintenance of a public building that will include energy-using
products; or
Use an energy-savings performance contract to reduce
energy use and cost in an agency's facilities or operations.
Item III--Prompt Payment and the Recovery of Overpayment (FAR Case
1999-023)
This final rule revises prompt payment policies at FAR part 32,
Contract Financing, and related contract provisions at FAR part 52. The
rule is applicable to--
Government payment offices and contractors since it
revises the information that must be on an invoice for the document to
be considered a proper invoice with respect to the prompt payment
provisions of the FAR;
Contracting officers and contractors since it establishes
the requirement in the prompt payment clauses for contractors to notify
the contracting officer if the contractor becomes aware of an
overpayment of an invoice; and
All Government contracts (including contracts at or below
the simplified acquisition threshold) except contracts with payment
terms and late payment penalties established by other governmental
authority (e.g., tariffs).
Item IV--Javits-Wagner-O'Day Act Subcontract Preference under
Service Contracts (FAR Case 1999-017)
This final rule amends the FAR to add a new preference for award of
subcontracts under service contracts to nonprofit workshops designated
by the Committee for Purchase From People Who Are Blind or Severely
Disabled (Javits-Wagner-O'Day Act (JWOD) (41 U.S.C. 48)). The final
rule applies to all service contracts. The rule--
Requires that contractors that provide services for the
Government's use and subcontract for those services must give
preference in awarding subcontracts to nonprofit workshops, if the
services are on the Committee for Purchase From People Who Are Blind or
Severely Disabled procurement list;
Requires that contracting officers must consider the
preference for subcontracting with nonprofit workshops when reviewing a
subcontract for services that is subject to the procedures at FAR
Subpart 44.2, Consent to Subcontracts; and
Amends the clause at FAR 52.208-9, Contractor Use of
Mandatory Sources of Supply, to inform offerors and contractors that
certain services to be
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provided for use by the Government are required by law to be obtained
from the Committee for Purchase From People Who Are Blind or Severely
Disabled.
Item V--Discussion Requirements (FAR Case 1999-022)
The rule amends FAR 15.306(d) to clarify that, although the
contracting officer must discuss deficiencies, significant weaknesses,
and adverse past performance information to which the offeror has not
yet had an opportunity to respond and is encouraged to discuss other
aspects of the offeror's proposal, the contracting officer is not
required to discuss every area where the proposal could be improved.
This clarifies the existing policy that any discussions beyond the
minimum elements stated in the FAR are a matter of contracting officer
judgment.
Item VI--Definition of Subcontract in FAR Subpart 15.4 (FAR Case
2000-017)
This final rule amends FAR 15.401 to exclude section 15.407-2,
Make-or-buy programs, from application of the expanded definition of
``subcontract'' at FAR 15.401. This rule is a clarification and does
not change any policy in Subpart 15.4, Contract Pricing.
Item VII--North American Industry Classification System (FAR Case
2000-604)
This rule finalizes, with minor changes, the interim rule which
amended the FAR to convert size standards and other programs in the FAR
that were based on the Standard Industrial Classification (SIC) system
to the North American Industry Classification System (NAICS). NAICS is
a new system that classifies establishments according to how they
conduct their economic activity. It is a significant improvement over
the SIC system because it more accurately identifies industries. Since
October 1, 2000, NAICS is to be used to establish the size standards
for acquisitions. In addition, the designated industry groups in FAR
19.1005 have been converted to NAICS and contract actions will be
reported using the NAICS code rather than the SIC code.
Item VIII--Iceland Newly Designated Country under Trade Agreements
Act (FAR Case 2001-025)
This final rule amends the definition of ``Designated country'' at
FAR 25.003, and the clause at 52.225-5, Trade Agreements, and the
clause at 52.225-11, Buy American Act--Balance of Payments Program--
Construction Materials under Trade Agreements, to add Iceland to the
list of designated countries under the Trade Agreements Act (TAA).
Contracting officers may now consider offers of end products or
construction materials from Iceland in acquisitions subject to the TAA.
The current TAA threshold for acquisition of supplies is $177,000 and
for acquisition of construction is $6,806,000.
In addition, if the TAA applies, Executive Order 13126 of June 12,
1999, Prohibition of Acquisition of Products Produced by Forced or
Indentured Child Labor, does not apply to contracts for the acquisition
of products from foreign countries that are party to the Agreement on
Government Procurement. Therefore, this final rule also adds Iceland to
the list of excepted countries of origin at 22.1503(b)(4) and the
associated clause at 52.222-19, Child Labor--Cooperation with
Authorities and Remedies.
Item IX--Contractor Personnel in the Procurement of Information
Technology Services (FAR Case 2000-609)
This final rule converts the interim rule published in FAC 97-25,
in the Federal Register at 66 FR 22084, May 2, 2001, to a final rule
without change. The rule added a new section to subpart 39.1 to
implement section 813 of the Floyd D. Spence National Defense
Authorization Act for fiscal year 2001 (Pub. L. 106-398). Section 813
prohibits the use of minimum experience or education requirements for
contractor personnel in solicitations for the acquisition of
information technology services, unless (1) the contracting officer
first determines that the needs of the agency cannot be met without
such requirement; or (2) the needs of the agency require the use of a
type of contract other than a performance-based contract.
Dated: December 5, 2001.
Al Matera,
Director, Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2001-02 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 2001-02 is
effective February 19, 2002, except for Items VII through IX, which are
effective December 18, 2001.
Dated: December 5, 2001.
Carolyn M. Balven,
Deputy Director, Defense Procurement.
Patricia A. Brooks,
Acting Deputy Associate Administrator, Office of Acquisition Policy,
General Services Administration.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and Space
Administration.
[FR Doc. 01-30537 Filed 12-17-01; 8:45 am]
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