[Federal Register: January 10, 2001 (Volume 66, Number 7)]
[Rules and Regulations]
[Page 2141-2142]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10ja01-30]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Ch. 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.
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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) 97-22 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 97-22 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.
[[Page 2142]]
List of Rules in FAC 97-22
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Item Subject FAR Case Analyst
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I....................................... Definitions................. 1999-403 Linfield.
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--Commercial 1996-023 Moss.
Items.
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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. 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.
Dated: December 22, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.
[FR Doc. 01-17 Filed 1-9-01; 8:45 am]
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