[Federal Register: March 22, 2006 (Volume 71, Number 55)]
[Proposed Rules]
[Page 14445]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22mr06-36]
[[Page 14445]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 13
[FAR Case 2005-029; Docket 2006-0020]
RIN 9000-AK46
Federal Acquisition Regulation; FAR Case 2005-029, Termination or
Cancellation of Purchase Orders
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to correct the inadvertent
omission of appropriate references in the FAR pertaining to termination
for cause of those purchase orders that have been accepted in writing.
The Government is soliciting comments from interested parties to ensure
the language in this proposed rule is clear in stating the appropriate
termination coverage for commercial purchase orders that have been
accepted in writing by the contractor.
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before May 22, 2006 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2005-029 by any of
the following methods:
Federal eRulemaking Portal: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web Site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm.
Click on the FAR case number to submit comments. E-mail: farcase.2005-029@gsa.gov. Include FAR case 2005-
5-
029 in the subject line of the message.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2005-
029 in all correspondence related to this case. All comments received
will be posted without change to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm
, including any personal and/or business
confidential information provided.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Mr. Michael O. Jackson, Procurement Analyst, at (202) 208-4949. Please
cite FAR case 2005-029 for information pertaining to status or
publication schedules, contact the FAR Secretariat at (202) 501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
This rule proposes to amend FAR 13.302-4 by reinstating the
appropriate coverage for termination for cause of commercial purchase
orders.
For commercial purchase orders that have been accepted in writing
by the contractor, current references to FAR 12.403(d) and FAR 52.212-
4(l) as stated in 13.302-4(a) address termination for convenience. The
current FAR language at 13.302-4(a) was established in February 1998
under Federal Acquisition Circular 97-3. This change constituted a
complete rewrite/reorganization of FAR Part 13. Previously, FAR Part 13
identified both termination for cause as well as for convenience as the
termination methods available to contracting officers. Furthermore, FAR
12.403 permits the Government to terminate a contract for commercial
items either for the convenience of the Government or for cause, and
makes no distinction based on the dollar value of the commercial item
contract, nor the contractual method utilized to procure the commercial
item. Therefore, the proposed changes at FAR 13.302-4(a) reinstitute
references to procedures for termination for cause as well as
termination for convenience.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Councils do not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule does not change the Government's existing termination
rights but merely clarifies those rights by correcting an inadvertent
error in the FAR. An Initial Regulatory Flexibility Analysis has,
therefore, not been performed. We invite comments from small businesses
and other interested parties. The Councils will consider comments from
small entities concerning the affected FAR Part 13 in accordance with 5
U.S.C. 610. Interested parties must submit such comments separately and
should cite 5 U.S.C. 601, et seq. (FAR case 2005-029), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 13
Government procurement.
Dated: March 15, 2006.
Gerald Zaffos,
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 13 as
set forth below:
PART 13--SIMPLIFIED ACQUISITION METHODS
1. The authority citation for 48 CFR part 13 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. Amend section 13.302-4 by:
a. Revising paragraph (a)(1); and
b. Revising paragraph (b)(2) to read as follows:
13.302-4 Termination or cancellation of purchase orders.
(a) * * *
(1) 12.403 and 52.212-4(l) or (m) for commercial items; or
* * * * *
(b) * * *
(2) If the contractor does not accept the cancellation or claims
that costs were incurred as a result of beginning performance under the
purchase order, the contracting officer shall process the action as a
termination prescribed in paragraph (a) of this subsection.
[FR Doc. 06-2756 Filed 3-21-06; 8:45 am]
BILLING CODE 6820-EP-S