[Federal Register: July 27, 2005 (Volume 70, Number 143)]
[Rules and Regulations]
[Page 43586-43587]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jy05-29]
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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.
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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. It consists of a summary of rules appearing in Federal
Acquisition Circular (FAC) 2005-05 which amend the FAR. An asterisk (*)
next to a rule indicates that a regulatory flexibility analysis has
been prepared. Interested parties may obtain further information
regarding these rules by referring to FAC 2005-05 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.acqnet.gov/far
.
FOR FURTHER INFORMATION CONTACT Laurieann Duarte, FAR Secretariat,
(202) 501-4755. For clarification of content, contact the analyst whose
name appears in the table below.
List of Rules in FAC 2005-05
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Item Subject FAR case Analyst
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I.............. Definition of Information Technology 2004-030 Davis.
(Interim).
II............. Documentation Requirement for Limited Sources 2005-004 Nelson.
under Federal Supply Schedules.
III............ Payment Withholding.......................... 2004-003 Olson.
*IV............ Confirmation of HUBZone Certification 2005-009 Cundiff.
(Interim).
V.............. Government Property Rental and Special 2002-015 Parnell.
Tooling.
VI............. Technical Amendment..........................
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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 2005-05 amends the FAR as specified below:
Item I--Definition of Information Technology(FAR Case 2004-030)
This interim rule amends FAR 2.101(b) to revise the definition of
``information technology'' to reflect the recent changes to the
definition resulting from the enactment of Public Law 108-199.
The new language at Section 535(b) of Division F of Public law 108-
199 permanently revises the term ``information technology,'' which is
defined at 40 U.S.C. 11101, to add ``analysis'' and ``evaluation'' and
to clarify the term ``ancillary equipment.'' This permanent change to
the terminology necessitated this interim rule to amend the FAR.
[[Page 43587]]
Item II--Documentation Requirement for Limited Sources under Federal
Supply Schedules (FAR Case 2005-004)
On June 18, 2004, DoD, GSA, and NASA published FAR case 1999-603
(69 FR 34231) amending the FAR to incorporate ordering procedures for
orders against Federal Supply Schedules (FSS), including the
documentation requirements for justifying sole source orders. The rule
inadvertently established these justification and approval requirements
for sole source orders instead of when an ordering activity restricts
consideration of schedule contractors to less than the required number.
This rule corrects that oversight. The final rule also based the
content of the documentation requirements on that in FAR 6.303-2. By
doing so, the rule established some unintentional and inapplicable
content requirements, especially for orders under the simplified
acquisition threshold (SAT). This rule corrects those unintended
changes by establishing the standard for justifying restricted orders
under the SAT and accurately specifying the justification content for
restricted orders above the SAT. The rule will clarify the procedures
for ordering activities.
Item III--Payment Withholding (FAR Case 2004-003)
Contracting officers and contracting officer's representatives who
award or administer Time-and-Materials or Labor-Hour contracts or
orders should be familiar with this amendment. Also, contractor
personnel who are responsible for managing invoicing for those types of
contracts should be aware of this new requirement. The amendment
removes the mandatory requirement that a contracting officer withhold 5
percent of the payments due under a time-and-materials contract, unless
it is necessary to withhold payment to protect the Government's
interest or otherwise prescribed in the contract Schedule. It requires
the use of a contract modification in order to make payment withholding
and, in the event withholding is required, the contractor is
responsible to withhold the amounts from its billings.
Item IV--Confirmation of HUBZone Certification(FAR Case 2005-009)
This interim rule amends FAR 19.703 and the clause at 52.219-9 to
clarify that prime contractors must confirm that a subcontractor
representing itself as a Historically Underutilized Business Zone
(HUBZone) small business concern is certified, consistent with the
requirements of 15 U.S.C. 632 et seq., as amended. This change is
expected to increase subcontracting opportunities for certified HUBZone
small business concerns and ensure accurate reporting of awards to
HUBZone small business concerns under Government contracts.
Item V--Government Property Rental and Special Tooling(FAR Case 2002-
015)
This final rule amends FAR Parts 45 and 52 to clarify the basis for
determining rental charges for the use of Government property. The
change, which is intended to promote the dual use of such property,
will impact contracting officers and property administrators
responsible for the management of Government property and contractors
that desire to use Government property for commercial purposes.
Item VI--Technical Amendment
An editorial change is made at FAR 4.1102 in order to update a
reference.
Dated: July 20, 2005.
Julia B. Wise,
Director, Contract Policy Division.
[FR Doc. 05-14672 Filed 7-26-05; 8:45 am]
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