[Federal Register: September 30, 2005 (Volume 70, Number 189)]
[Rules and Regulations]
[Page 57447-57449]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30se05-37]
[[Page 57447]]
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Part V
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Chapter 1, Parts 1, 2, 3, et al.
Federal Acquisition Regulations; 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 2005-06; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of interim and 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) 2005-06. 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.acqnet.gov/far.
DATES: For effective dates and comment dates, see separate documents
which follow.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, at (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 2005-06 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.acqnet.gov/far.
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Item Subject FAR case Analyst
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I.............. Information Technology Security (Interim).... 2004-018 Davis.
II............. Improvements in Contracting for Architect- 2004-001 Davis.
EngineerServices.
III............ Title 40 of United States Code Reference 2005-010 Zaffos.
Corrections.
IV............. Implementation of the Anti-Lobbying Statute.. 1989-093 Woodson.
V.............. Increased Justification and Approval 2004-037 Jackson.
Threshold for DOD, NASA, and Coast Guard.
VI............. Addition of Landscaping and Pest Control 2004-036 Marshall.
Services to the Small Business
Competitiveness Demonstration Program.
VII............ Powers of Attorney for Bid Bonds............. 2003-029 Davis.
VIII........... Expiration of the Price Evaluation 2005-002 Cundiff.
Adjustment(Interim).
IX............. Accounting for Unallowable Costs............. 2004-006 Olson.
X.............. Reimbursement of Relocation Costs on a Lump- 2003-002 Olson.
Sum Basis.
XI............. Training and Education Cost Principle........ 2001-021 Olson.
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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 2005-06 amends the FAR as specified below:
Item I--Information Technology Security (FAR Case 2004-018)
This interim rule amends the FAR to implement the Information
Technology (IT) Security provisions of the Federal Information Security
Management Act of 2002 (FISMA) (Title III of the E-Government Act of
2002 (E-Gov Act)).
This interim rule focuses on the importance of system and data
security by contracting officials and other members of the acquisition
team. The intent of adding specific guidance in the FAR is to provide
clear, consistent guidance to acquisition officials and program
managers; and to encourage and strengthen communication with IT
security officials, chief information officers, and other affected
parties.
Item II--Improvements in Contracting for Architect-Engineer Services
(FAR Case 2004-001)
This final rule implements Section 1427(b) of the Services
Acquisition Reform Act of 2003, which prohibits architect-engineering
services from being offered under GSA multiple-award schedule contracts
or under Governmentwide task and delivery order contracts unless they
are awarded using the procedures of the Brooks Architect-Engineer Act
and the services are performed under the direct supervision of a
professional architect or engineer licensed, registered, or certified
in the State, Federal district or outlying area, in which the services
are to be performed. This rule is of interest to agencies and
contracting officers that use GSA schedules and Governmentwide task and
delivery order contracts.
Item III--Title 40 of United States Code Reference Corrections (FAR
Case 2005-010)
This final rule amends the FAR to reflect the most recent
codification of Title 40 of the United States Code. No substantive
changes are being made to the FAR.
Item IV--Implementation of the Anti-Lobbying Statute (FAR Case 1989-
093)
This final rule converts the interim rule published in the Federal
Register at 55 FR 3190, January 30, 1990 to a final rule with minor
changes amends the FAR to implement section 319 of the Department of
the Interior and Related Agencies Appropriations Act, Public Law 101-
121, which added a new section 1352 to Title 31 of the United States
Code, entitled ``Limitations on the use of funds to influence certain
Federal contracting and financial transactions.'' Section 319 generally
prohibits recipients of Federal contracts, grants, and loans from using
appropriated funds for lobbying the executive or legislative branches
of the Federal Government in connection with a specific contract, grant
or loan. It also requires that each person who requests or receives a
contract, grant or cooperative agreement in excess of $100,000 or a
Federal commitment to insure or guarantee a loan in excess of $150,000
must disclose lobbying with other than appropriated funds. The rule
requires contracting officers, in accordance with FAR 3.808, to insert
in all solicitations and contracts expected to exceed $100,000 the
provision at FAR 52.203-11, ``Certification and Disclosure Regarding
Payments to Influence Certain Federal Transaction,'' and the clause at
FAR 52.203-12, ``Limitations on Payments to Influence Certain Federal
Transactions.''
Item V--Increased Justification and Approval Threshold for DOD, NASA,
and Coast Guard (FAR Case 2004-037)
This final rule converts the interim rule published in the Federal
Register at 70 FR 11739, March 9, 2005, to a final rule with minor
changes. The rule
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amended the FAR by increasing the justification and approval thresholds
for DoD, NASA, and the U.S. Coast Guard from $50 million to $75
million. This change implemented section 815 of the Ronald W. Reagan
National Defense Authorization Act for Fiscal Year 2005, which amends
10 U.S.C. 2304(f)(1)(B). In addition, corresponding changes have been
made to FAR 13.501. The rule will reduce administrative burden for
ordering activities.
Item VI--Addition of Landscaping and Pest Control Services to the Small
Business Competitiveness Demonstration Program (FAR Case 2004-036)
This final rule finalizes, without change, the interim rule
published in the Federal Register at 70 FR 11740, March 9, 2005. The
rule implements Section 821 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005. Section 821 amended Section 717
of the Small Business Competitiveness Demonstration Program Act of 1988
by adding landscaping and pest control services to the program. As a
result, agencies are precluded from considering acquisitions for
landscaping and pest control services over the emerging small business
reserve amount, currently $25,000, for small business set-asides unless
the set-asides are needed to meet their assigned goals. The change may
impact small businesses because these awards were previously set-aside
for small businesses.
Item VII--Powers of Attorney for Bid Bonds (FAR Case 2003-029)
This final rule is of particular interest to contracting officers
and offerors in acquisitions of construction that require a bid bond.
This rule was initiated at the request of the Office of Federal
Procurement Policy to resolve the controversy surrounding contracting
officers' decisions regarding the evaluation of bid bonds and
accompanying powers of attorney. This rule amends the FAR to revise the
policy relating to acceptance of copies of powers of attorney
accompanying bid bonds. This revision to FAR parts 19 and 28 removes
the matter of authenticity and enforceability of powers of attorney
from a contracting officer's responsiveness determination, which is
based solely on documents available at the time of bid opening.
Instead, the rule instructs contracting officers to address these
issues after bid opening.
Item VIII--Expiration of the Price Evaluation Adjustment (FAR Case
2005-002)
This interim rule cancels the authority for civilian agencies,
other than NASA and the U.S. Coast Guard, to apply the price evaluation
adjustment to certain small disadvantaged business concerns in
competitive acquisitions. The change is required because the statutory
authority for the adjustments has expired. As a result, certain small
disadvantaged business concerns will no longer benefit from the
adjustments. DoD, NASA, and the U.S. Coast Guard are authorized to
continue applying the price evaluation adjustment.
Item IX--Accounting for Unallowable Costs (FAR Case 2004-006)
This final rule amends FAR 31.201-6, Accounting for unallowable
costs, by adding paragraphs (c)(2) through (c)(5) to provide specific
criteria on the use of statistical sampling as an acceptable practice
to identify unallowable costs, including the applicability of penalties
for failure to exclude certain projected unallowable costs. The final
rule also amends FAR 31.109, Advance agreements, by adding
``statistical sampling methods'' as an example of the type of item for
which an advance agreement may be appropriate. The case was initiated
by the Director, Defense Procurement and Acquisition Policy, who
established an interagency ad hoc committee to perform a comprehensive
review of FAR Part 31, Contract Cost Principles and Procedures. The
rule is of particular importance to contracting officers and
contractors who negotiate contracts and modifications, and determine
costs in accordance with FAR Part 31.
Item X--Reimbursement of Relocation Costs on a Lump-Sum Basis (FAR Case
2003-002)
This final rule amends FAR 31.205-35 to permit contractors the
option of being reimbursed on a lump-sum basis for three types of
employee relocation costs: (1) costs of finding a new home, (2) costs
of travel to the new location, and (3) costs of temporary lodging.
These three types of costs are in addition to the miscellaneous
relocation costs for which lump-sum reimbursements are already
permitted.
Item XI--Training and Education Cost Principle (FAR Case 2001-021)
This final rule amends the FAR by revising the contract cost
principle at FAR 31.205-44, Training and education costs. The amendment
streamlines the cost principle and increases clarity by eliminating
restrictive and confusing language, and by restructuring the rule to
list only specifically unallowable costs.
Dated: September 22, 2005.
Julia B. Wise,
Director,Contract Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2005-06 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 2005-06 is
effective October 31, 2005, except for Items I, II, III, IV, V, VI,
VII, and VIII, which are effective September 30, 2005.
Dated: September 15, 2005.
Vincent J. Feck, Lt Col, USAF
Acting Director, Defense Procurement and Acquisition Policy.
Dated: September 22, 2005.
David A. Drabkin,
Senior Procurement Executive, Office of the Chief Acquisition Officer,
General Services Administration.
Dated: September 14, 2005.
Anne Guenther,
Acting Assistant Administrator for Procurement, National Aeronautics
and Space Administration.
[FR Doc. 05-19467 Filed 9-29-05; 8:45 am]
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