[Federal Register: January 3, 2006 (Volume 71, Number 1)]
[Rules and Regulations]
[Page 197-200]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ja06-11]
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Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Chapter 1 et al.
Federal Acquisition Regulations; Final Rules and Interm Rules
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 2005-07; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final and interim rules, and technical
amendments.
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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) 2005-07. 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: 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 2005-07 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.
For information pertaining to status or publication
schedules, contact the FAR Secretariat at (202) 501-4755.
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Item Subject FAR case FAR Analyst
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I.......... Transportation: Standard Industry 2002-005 Parnell.
Practices.
II......... Common Identification Standard for 2005-015 Jackson.
Contractors(Interim).
III........ Change to Performance-based Acquisition.. 2003-018 Jackson.
IV......... Free Trade Agreements-Australia and 2004-027 Marshall.
Morocco.
V.......... Deletion of the Very Small Business Pilot 2005-013 Cundiff.
Program.
VI......... Purchases From Federal Prison Industries- 2003-023 Nelson.
Requirement for MarketResearch.
VII........ Exception from Buy American Act for 2005-022 Marshall.
CommercialInformation Technology
(Interim).
VIII....... Removal of Sanctions Against Libya....... 2005-026 Marshall.
IX......... Elimination of Certain Subcontract 2003-024 Cundiff.
NotificationRequirements.
X.......... Annual Representations and Certifications- 2005-006 Zaffos.
NAICSCode/Size.
XI......... 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.
FAC 2005-07 amends the FAR as specified below:
Item I--Transportation: Standard Industry Practices (FAR Case 2002-005)
This final rule amends FAR Parts 1, 42, 46, 47, 52, and 53 to
clarify and update the FAR coverage to reflect the latest changes to
the Federal Management Regulation and statutes that require use of
commercial bills of lading for domestic shipments. This final rule
amends the FAR to--
Move FAR Subpart 42.14, Traffic and Transportation
Management, to FAR Part 47, Transportation;
Delete the clauses at FAR 52.242-10 and FAR 52.242-11 and
revise and relocate FAR clause 52.242-12 to FAR 52.247-68;
Add definitions of ``bill of lading,'' ``commercial bill
of lading,'' and ``Government bill of lading'' and clarify the usage of
each term throughout FAR Part 47;
Add definitions of ``Government rate tenders,''
``household goods,'' ``noncontiguous domestic trade,'' and ``released
or declared value'';
Require the use of commercial bills of lading for domestic
shipments;
Revise the references to ``49 U.S.C. 10721'' to read ``49
U.S.C. 10721 and 13712'' throughout FAR Part 47 to make it clear that
Government rate tenders can be used in certain situations for the
transportation of household goods by rail carrier (authorized by 49
U.S.C. 10721), as well as by motor carrier, water carrier, and freight
forwarder (authorized by 49 U.S.C. 13712 and the definition of
``carrier'' at 49 U.S.C. 13102); and
Update the fact that the Federal Motor Carrier Safety
Administration prescribes commercial zones at 49 CFR 372 Subpart B.
Item II--Common Identification Standard for Contractors (FAR Case 2005-
015)
This interim rule amends the FAR by addressing the contractor
personal identification requirements in Homeland Security Presidential
Directive (HSPD-12), ``Policy for a Common Identification Standard for
Federal Employees and Contractors,'' and Federal Information Processing
Standards Publication (FIPS PUB) Number 201, ``Personal Identity
Verification (PIV) of Federal Employees and Contractors.'' The primary
objectives of HSPD-12 are to establish a process to enhance security,
increase Government efficiency, reduce identity fraud, and protect
personal privacy by establishing a mandatory, Governmentwide standard
for secure and reliable forms of identification issued by the Federal
Government to its employees and contractors.
Item III--Change to Performance-based Acquisition (FAR Case 2003-018)
This final rule amends the FAR by changing the terms ``performance-
based contracting (PBC)'' and ``performance-based service contracting
(PBSC)'' to ``performance-based acquisition (PBA)'' throughout the FAR;
adding applicable PBA definitions of ``Performance Work Statement
(PWS)'' and ``Statement of Objectives (SOO)'', and describing their
uses; clarifying the order of precedence for requirements; eliminating
redundancy where found; modifying the regulation to broaden the scope
of PBA and give agencies more flexibility in applying PBA methods to
contracts and orders of varying complexity; and reducing the burden of
force-fitting contracts and orders into PBA, when it is not
appropriate.
Item IV--Free Trade Agreements--Australia and Morocco (FAR Case 2004-
027)
This final rule converts the interim rule published at 69 FR 77870,
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December 28, 2004, to a final rule with changes. It allows contracting
officers to purchase the products of Australia without application of
the Buy American Act if the acquisition is subject to the Free Trade
Agreements. The U.S. Trade Representative negotiated Free Trade
Agreements with Australia and Morocco, which were scheduled to go into
effect on or after January 1, 2005, according to Public Laws 108-286
and 108-302. However, the Morocco Free Trade Agreement has not yet
entered into force and, therefore, the implementation of the Morocco
Free Trade Agreement has been removed from the final rule. The
Australian Free Trade Agreement joins the North American Free Trade
Agreement (NAFTA) and the Chile and Singapore Free Trade Agreements
which are already in the FAR. The threshold for applicability of the
Australian Free Trade Agreement is $58,550 (the same as other Free
Trade Agreements to date).
Item V--Deletion of the Very Small Business Pilot Program (FAR Case
2005-013)
This final rule amends the FAR to delete the Very Small Business
Pilot Program. Under the pilot program, contracting officers were
required to set-aside for very small business concerns certain
acquisitions with an anticipated dollar value between $2,500 and
$50,000. The Councils are removing the FAR coverage because the
legislative authority for the program terminated on September 30, 2003.
Acquisitions previously set aside for pilot program vendors will now be
open to other small businesses.
Item VI--Purchases From Federal Prison Industries-Requirement for
Market Research (FAR Case 2003-023)
This final rule converts the interim rule published in FAC 2001-21
at 69 FR 16148, March 26, 2004, and the interim rule published as Item
I of FAC 2005-03 at 70 FR 18954, April 11, 2005, to a final rule with
amendments at FAR 8.602 to clarify the applicability of the rule. The
rule implements Section 637 of Division H of the Consolidated
Appropriations Act, 2005. Section 637 provides that no funds made
available under the Consolidated Appropriations Act for fiscal year
2005, or under any other Act for fiscal year 2005 and each fiscal year
thereafter, shall be expended for purchase of a product or service
offered by Federal Prison Industries, Inc., unless the agency making
the purchase determines that the offered product or service provides
the best value to the buying agency, pursuant to Governmentwide
procurement regulations issued pursuant to 41 U.S.C. 421(c)(1) that
impose procedures, standards, and limitations of 10 U.S.C. 2410n.
Item VII--Exception from Buy American Act for Commercial Information
Technology (FAR Case 2005-022)
This interim rule amends FAR 25.103 and FAR Subpart 25.11 to
implement Section 517 of Division H, Title V of the Consolidated
Appropriations Act, 2005 (Pub. L. 108-447). Section 517 authorizes
exemption from the Buy American Act for acquisitions of information
technology that are commercial items. This applies only to the use of
FY 2005 funds. This same exemption appeared last year in section 535(a)
of Division F, Title V, Consolidated Appropriations Act, 2004 (Pub. L.
108-199). The FY 04 exemption was implemented through deviations by the
individual agencies.
The interim rule is based on the estimation that the exemption of
commercial information technology is likely to continue. If the
exception does not appear in a future appropriations act, a prompt
change to the FAR will be made to limit applicability of the exemption
to the fiscal years to which it applies. The effect of this exemption
is that the following clauses are no longer applicable in acquisition
of commercial information technology:
FAR 52.225-1, Buy American Act--Supplies.
FAR 52.225-2, Buy American Act Certificate.
FAR 52.225-3, Buy American Act--Free Trade Agreements--
Israeli Trade Act.
FAR 52.225-4, Buy American Act--Free Trade Agreements--
Israeli Trade Act Certificate.
This is because the Buy American Act no longer applies; and the
Free Trade Agreement non-discriminatory provisions are no longer
necessary, since all products now are treated without the restrictions
of the Buy American Act.
Item VIII--Removal of Sanctions Against Libya (FAR Case 2005-026)
This final rule removes Libya from the list of prohibited sources
at FAR Subpart 25.7 and the associated clause at 52.225-13, Restriction
on Certain Foreign Purchases. Acquisitions of products from Libya may
still be subject to restrictions of the Buy American Act, trade
agreements, or other domestic source restrictions. The Department of
State has not yet removed Libya from the list of state sponsors of
terrorism.
Item IX--Elimination of Certain Subcontract Notification Requirements
(FAR Case 2003-024)
This final rule converts, with minor changes, the Federal
Acquisition Regulation (FAR) interim rule published in the Federal
Register at 70 FR 11761, March 9, 2005. The rule impacts contractors
with Department of Defense (DoD), National Aeronautics and Space
Administration (NASA), or Coast Guard cost-reimbursement contracts and
Government personnel who award and administer those contracts. The
interim rule amended FAR 44.201-2, Advance Notification Requirements,
and 52.244-2, Subcontracts, to implement Section 842 of the National
Defense Authorization Act for Fiscal Year 2004, in Public Law 108-136.
Section 842 removed the requirement under cost-reimbursement contracts
with DoD, Coast Guard, and NASA for contractors to notify the agency
before the award of any cost-plus-fixed-fee subcontract or any fixed-
price subcontract that exceeds the greater of the simplified
acquisition threshold or 5 percent of the total estimated cost of the
contract if the contractor maintains a purchasing system approved by
the contracting officer for the contract. The final rule makes two
changes that resulted from one of the public comments. The final rule
deletes Alternate I from FAR 44.204, Contract clauses for the
Department of Defense, the Coast Guard, and the National Aeronautics
and Space Administration, and deletes the current Alternate I from
52.244-2, Subcontracts.
Item X--Annual Representations and Certifications--NAICS Code/Size (FAR
Case 2005-006)
This final rule amends the FAR provision at 52.204-8 to provide a
place for contracting officers to inform prospective offerors of the
NAICS code and small business size standard applicable to the
procurement.
Item XI--Technical Amendments
Editorial changes are made at FAR 9.203(b)(2), 11.102, 11.201(a),
11.201(b), 11.201(d)(2), 11.201(d)(3), 11.201(d)(4), 11.204(b),
25.1101(e)(2), and the provisions at 52.211-2 and 52.212-1 in order to
update references.
The authority citation for FAR parts 27, 34, 38, 39, 43, 46, 48,
and 50 is revised.
Dated: December 22, 2005.
Gerald Zaffos,
Director, Contract Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2005-07 is issued under the
authority of
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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 2005-07 is
effective February 2, 2006 except for Items II, IV, V, VI, VII, IX, X
and XI which are effective January 3, 2006
Dated: December 21, 2005.
Domenic C. Cipicchio,
Acting Director, Defense Procurement and Acquisition Policy.
Dated: December 16, 2005.
Roger D. Waldron,
Acting Senior Procurement Executive, Office of the Chief Acquisition
Officer, General Services Administration.
Dated: December 14, 2005.
Tom Luedtke,
Assistant Administrator for Procurement, National Aeronautics and Space
Administration.
[FR Doc. 05-24545 Filed 12-30-05; 8:45 am]
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