[Federal Register: October 22, 2001 (Volume 66, Number 204)]
[Rules and Regulations]
[Page 53500-53501]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22oc01-16]
-----------------------------------------------------------------------
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) 2001-01 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 2001-01 which precedes this document. These
documents are also 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.
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 2001-01
----------------------------------------------------------------------------------------------------------------
Item Subject FAR case Analyst
----------------------------------------------------------------------------------------------------------------
I...................................... *Application of the Davis-Bacon 1997-613 Nelson.
Act to Construction Contracts
With Options to Extend the
Term of the Contract.
II..................................... Acquisition of Commercial Items 2000-303 Moss.
III.................................... Prompt Payment Under Cost- 2000-308 Olson.
Reimbursement Contracts for
Services (Interim).
IV..................................... Veterans' Employment........... 1998-614 Nelson.
V...................................... *Veterans Entrepreneurship and 2000-302 Cundiff.
Small Business Development Act
of 1999 (Interim).
[[Page 53501]]
VI..................................... Very Small Business Pilot 2001-001 Cundiff
Program.
----------------------------------------------------------------------------------------------------------------
Item I--Application of the Davis-Bacon Act to Construction
Contracts With Options To Extend the Term of the Contract
[FAR Case 1997-613]
This final rule implements the Department of Labor's requirement to
incorporate a current Davis-Bacon Act wage determination at the
exercise of each option to extend the term of a contract for
construction.
Item II--Acquisition of Commercial Items
[FAR Case 2000-303]
This final rule amends the FAR to clarify the definition of
``commercial item.'' The revised language will help contracting
officers make commerciality determinations. The rule also alerts
contracting officers to be aware of customary commercial terms and
conditions that may affect the contract price when pricing commercial
items. The rule also clarifies that subpart 46.8, Contractor Liability
for Loss of or Damage to Property of the Government, does not apply to
acquisitions of commercial items. Contracting officers should use
standard commercial practices instead of the policies in subpart 46.8.
Finally, the rule amends the clause at 52.212-4, Limitation of
liability, to conform it to standard commercial practice.
Item III--Prompt Payment Under Cost-Reimbursement Contracts for
Services
[FAR Case 2000-308]
This interim rule implements changes in the Office of Management
and Budget's (OMB) Prompt Payment Act regulations at 5 CFR 1315 that
implemented Section 1010 of the NationalDefense Authorization Act for
Fiscal Year 2001. Those changes were published by OMB as an interim
final rule and became effective on December 15, 2000 (65 FR 78403) and
were applicable to all covered contracts awarded on or after December
15, 2000. Section 1010 of the National DefenseAuthorization Act for
Fiscal Year 2001 requires agencies to pay an interest penalty, in
accordance with regulations issued, whenever an interim payment under a
cost-reimbursement contract for services is paid more than 30 days
after the agency receives a proper invoice from a contractor. The Act
does not permit payment of late payment penalty interest for any period
prior to December 15, 2000.
This FAR amendment eliminates the prior policy and contract clause
prohibitions on payment of late payment penalty interest for late
interim finance payments under cost-reimbursement contracts for
services. It adds new policy and contract clause coverage to provide
for those penalty payments.
Item IV--Veterans' Employment
[FAR Case 1998-614]
This final rule amends the FAR to implement statutory and
regulatory changes relating to veterans' employment opportunities and
reporting. Most significantly for contracting officers, the rule amends
the FAR to prohibit contracting officers from obligating or expending
appropriated funds to enter into a contract with a contractor that has
not met its veterans' employment reporting requirements (VETS--100
Report). This prohibition does not apply to contracts for commercial
items or contracts valued at or below the simplified acquisition
threshold. The rule adds a new solicitation provision that requires
each offeror to represent, by submission of its offer, that it is in
compliance with the VETS--100 reporting requirements. The contracting
officer may verify compliance by checking with the Department of Labor.
Item V--Veterans Entrepreneurship and Small Business Development
Act of 1999
[FAR Case 2000-302]
This interim rule amends the FAR to implement section 803 of the
Small Business Reauthorization Act of 2000, part of the Consolidated
Appropriations Act, 2001 (Pub. L. 106-554) that was enacted on December
21, 2000.
This rule requires a contractor that is required to submit a
subcontracting plan to report as a separate subcontracting plan goal
requirement, subcontracting activity pertaining to service-disabled
veteran-owned small business concerns. The rule also changes the
Standard Form (SF) 294, ``Subcontracting Report for Individual
Contracts,'' and the SF 295, ``Summary Subcontract Report,'' to capture
this category of information for the contracting officer.
Item VI--Very Small Business Pilot Program
[FAR Case 2001-001]
This final rule amends FAR Subpart 19.9 to implement Section 503(c)
of the Small Business Reauthorization Act of 2000 (part of Public Law
106-554). Section 503(c) extends, for three additional years, the Very
Small Business Pilot Program until September 30, 2003. The purpose of
the program is to improve access to Government contract opportunities
for concerns that are substantially below SBA's size standards by
reserving certain acquisitions for competition among such concerns.
Dated: October 12, 2001.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 01-26302 Filed 10-19-01; 8:45 am]
BILLING CODE 6820-EP-P