[Federal Register Volume 78, Number 19 (Tuesday, January 29, 2013)]
[Rules and Regulations]
[Pages 6192-6193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01752]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2013-0078, Sequence 1]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-65; Small Entity Compliance Guide
AGENCY: 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 DOD, GSA,
and NASA. 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 the rule
appearing in Federal Acquisition Circular (FAC) 2005-65, which amends
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a
rule indicates that a regulatory flexibility analysis has been
prepared. Interested parties may obtain further information regarding
this rule by referring to FAC 2005-65, which precedes this document.
These documents are also available via the Internet at http://www.regulations.gov.
DATES: January 29, 2013.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
the analyst whose name appears in the table below. Please cite FAC
2005-65 and the FAR case number. For information pertaining to status
or publication schedules, contact the Regulatory Secretariat at 202-
501-4755.
List of Rules in FAC 2005-65
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Item Subject FAR Case Analyst
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I.................. Prohibition on 2012-013 Jackson.
Contracting
with Inverted
Domestic
Corporations.
II *............... Extension of 2012-007 Lague.
Sunset Date for
Protests of
Task and
Delivery Orders.
III................ Free Trade 2012-012 Davis.
Agreement---
Colombia.
IV *............... Unallowability 2011-011 Chambers.
of Costs
Associated with
Foreign
Contractor
Excise Tax.
V.................. Technical
Amendments.
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these FAR cases, refer to
the specific item numbers and subjects set forth in the documents
following these item summaries. FAC 2005-65 amends the FAR as specified
below:
Item I--Prohibition on Contracting With Inverted Domestic Corporations
(FAR Case 2012-013)
This rule adopts as final an interim rule implementing section 738
of Division C of the Consolidated Appropriations Act, 2012 (Pub. L.
112-74), which prohibits the award of contracts using Fiscal Year 2012
appropriated funds to any foreign incorporated entity that is treated
as an inverted domestic corporation or to any subsidiary of such an
entity. The interim rule extended an existing prohibition that applied
to the use of Fiscal Year 2008 through 2010 funds. Contracting officers
are prohibited from awarding contracts using appropriated funds to any
foreign incorporated entity that is treated as an inverted domestic
corporation or to any subsidiary of such entity, unless an exception
applies. This rule will not have any significant economic impact on
small businesses because this rule only applies to an offeror that is
an inverted domestic corporation and wants to do business with the
Government. Small business concerns are unlikely to have been
incorporated in the United States and then reincorporated in a tax
haven.
Item II--Extension of Sunset Date for Protests of Task and Delivery
Orders (FAR Case 2012-007)
This final rule amends the FAR to implement section 825 of the Ike
Skelton National Defense Authorization Act for Fiscal Year 2011 (Pub.
L. 111-383) and section 813 of the National Defense Authorization Act
for Fiscal Year 2012 (Pub. L. 112-81). These statutes extend the sunset
date for protests against awards of task or delivery orders to
September 30, 2016. There is no effect on Government automated systems.
Item III--Free Trade Agreement--Colombia (FAR Case 2012-012)
This final rule adopts, with minor change, the interim rule
published in the Federal Register at 77 FR 27548 on May 10, 2012, to
implement the United States-Colombia Trade Promotion Agreement. This
Trade Promotion Agreement is a free trade agreement (FTA) that provides
for mutually non-discriminatory treatment of eligible products and
services from Colombia.
The Colombia FTA covers acquisition of supplies and services equal
to or exceeding $77,494. The threshold for the Colombia FTA is
$7,777,000 for construction. The excluded services for the Colombia FTA
are the same as for the Bahrain FTA, Dominican Republic-Central
American FTA, Chile FTA, NAFTA, Oman FTA, and Peru FTA.
Item IV--Unallowability of Costs Associated With Foreign Contractor
Excise Tax (FAR Case 2011-011)
This final rule amends the FAR to implement certain requirements of
section 301 of the James Zadroga 9/11 Health and Compensation Act of
2010, which imposes a 2 percent excise tax on certain Federal
procurement payments to foreign persons. First, the statute disallows
the cost of the 2 percent excise tax on certain foreign procurements as
part of a payment, or as part of a cost-based negotiated price. Second,
the statute stipulates that no funds are to be disbursed to any foreign
contractor in order to reimburse the tax imposed. This rule will have a
minimal economic impact on small businesses because the 2 percent
excise tax is
[[Page 6193]]
applied only to foreign persons that receive Federal procurement
payments pursuant to a contract with the Government of the United
States for the provision of goods or services, if the goods are
manufactured or produced in, or the services are performed in, a
country that is not a party to an international procurement agreement
with the United States.
Item V--Technical Amendments
Editorial changes are made at FAR 1.106, 2.000, and 31.205-6.
Dated: January 23, 2013.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
[FR Doc. 2013-01752 Filed 1-28-13; 8:45 am]
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