[Federal Register: January 10, 2001 (Volume 66, Number 7)]
[Rules and Regulations]
[Page 2115-2117]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10ja01-23]
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Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Ch. 1
Federal Acquisition Regulation (FAR); Final Rule
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Ch. 1
Federal Acquisition Circular 97-22; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(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 (Councils) in this Federal
Acquisition Circular (FAC) 97-22. 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 97-22 and
specific FAR case numbers. 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............ Definitions.............. 1999-403 Olson.
II........... Applicability, Thresholds 2000-301 Nelson.
and Waiver of Cost
Accounting Standards
Coverage.
III.......... Advance Payments for Non- 1999-016 Olson.
Commercial Items.
IV........... Part 12 and Assignment of 1999-021 Moss.
Claims.
V............ Clause Flowdown-- 1996-023 Moss.
Commercial Items.
VI........... 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 97-22 amends the FAR as specified
below:
Item I--Definitions (FAR Case 1999-403)
This final rule clarifies the applicability of definitions used in
the FAR, eliminates redundant or conflicting definitions, and makes
definitions easier to find. The rule--
Relocates definitions of terms that are used in more than
one FAR part with the same meaning to 2.101;
Relocates other definitions of terms to the
``Definitions'' section of the highest level FAR division (part,
subpart, or section) where the term as defined is used. For example, if
a term was defined in a FAR section, but the term is used as defined in
another section of that subpart, then the definition was moved to the
``Definitions'' section of that subpart;
Clarifies that a term, defined in FAR 2.101, has the same
meaning throughout the FAR unless the context in which the term is used
clearly requires a different meaning; or unless another FAR part,
subpart, or section provides a different definition for that particular
part, subpart, or section;
Adds cross-references to definitions of terms in FAR 2.101
that are defined differently in another part, subpart, or section of
the FAR; and
Makes technical corrections throughout the FAR.
Item II--Applicability, Thresholds and Waiver of Cost Accounting
Standards Coverage (FAR Case 2000-301)
The interim rule published as Item VIII of FAC 97-18 (65 FR 36028,
June 6, 2000) is converted to a final rule without change. This rule
amends FAR Subpart 30.2, CAS Program Requirements, and the FAR clause
at 52.230-1, Cost Accounting Standards Notices and Certification, to
implement Section 802 of the National Defense Authorization Act for
Fiscal Year 2000 (Pub. L. 106-65) and the Cost Accounting Standards
(CAS) Board's final rule, Applicability, Thresholds and Waiver of Cost
Accounting Standards Coverage. The FAR rule revises policies affecting
which contractors and subcontractors must comply with CAS by--
Removing the requirement at FAR 52.230-1, Cost Accounting
Standards Notices and Certification, that a contractor or subcontractor
must have received at least one CAS-covered contract exceeding $1
million (``trigger contract'') to be subject to ``full CAS coverage.''
The CAS Board added a new ``trigger contract'' dollar amount of $7.5
million at paragraph (b)(7) of 48 CFR 9903.201-1, CAS applicability,
which is already referenced at FAR 30.201-1;
Revising FAR 30.201-4(b), Disclosure and consistency of
cost accounting practices, and FAR 52.230-1 to increase the dollar
threshold for full CAS coverage from $25 million to $50 million; and
Revising the CAS waiver procedures and conditions at FAR
30.201-5.
Item III--Advance Payments for Non-Commercial Items (FAR Case 99-
016)
This final rule amends the FAR to permit federally insured credit
unions, in addition to banks, to participate in the maintenance of
special accounts for advance payments. The rule will only affect
contracting officers that provide contract financing using advance
payments for non-commercial items.
Item IV--Part 12 and Assignment of Claims (FAR Case 1999-021)
This final rule amends the FAR to correct an inconsistency between
two clauses related to the assignment of claims. FAR 52.232-36, Payment
by Third Party, prohibits a contractor from assigning its rights to
receive payment under the contract if payment is made by a third party,
such as when a Governmentwide commercial purchase card is used. This
clause is cited in the contract clause at FAR 52.212-5 that addresses
terms and conditions required to implement statutes or Executive orders
for commercial items.
FAR 52.212-4, Contract Terms and Conditions--Commercial Items,
addresses assignment of claims but does not include the third party
prohibition.
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This rule revises FAR 52.212-4(b) to add the prohibition.
Item V--Clause Flowdown--Commercial Items (FAR Case 1996-023)
This final rule amends the clause at FAR 52.244-6, Subcontracts for
Commercial Items, to revise the listing of clauses the contractor must
flow down to subcontractors. The rule revises the listing to add the
clause at FAR 52.219-8, Utilization of Small Business Concerns, when
specified circumstances have been met. In addition, the rule adds
language to inform contractors that they may flow down a minimal number
of additional clauses to subcontractors to satisfy their contractual
obligations.
Item VI--Technical Amendments
This document makes amendments to the Federal Acquisition
Regulation in order to update references and make editorial changes.
Dated: December 22, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 97-22 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.
All Federal Acquisition Regulation (FAR) changes and other
directive material contained in FAC 97-22 are effective March 12, 2001,
except for Items II and VI, which are effective January 10, 2001.
Dated: December 8, 2000
Deidre A. Lee,
Director, Defense Procurement.
Dated: December 8, 2000.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy,
General Services Administration.
Dated: December 7, 2000.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and
Space Administration.
[FR Doc. 01-282 Filed 1-9-01; 8:45 am]
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