[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30669]


[Federal Register: December 28, 1994]


_______________________________________________________________________

Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 1, et al.



Federal Acquisition Regulations; Rules
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 90-23; 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 with request 
for comment, and technical amendments.

-----------------------------------------------------------------------

SUMMARY: This document summarizes the FAR rules which follow it in the 
order listed below. The Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council are issuing Federal Acquisition 
Circular (FAC) 90-23 to amend the Federal Acquisition Regulation (FAR).

----------------------------------------------------------------------------------------------------------------
                                                                                FAR      DAR                    
           Item                                 Subject                         Case     Case        Analyst    
----------------------------------------------------------------------------------------------------------------
I........................  Training for contracting personnel...............   93-604           DeStefano.      
II.......................  Storage of contract files........................   91-101    91-46  Klein.          
III......................  National security................................     93-8           Scott.          
IV.......................  Acquisition of utility services..................    91-13   90-471  Loeb.           
V........................  Lease with option to purchase....................     91-6   90-413  DeStefano.      
VI.......................  Procurement from people who are blind or severely   93-610           Scott.          
                            disabled.                                                                           
VII......................  Acquisition of helium............................     91-9   90-415  Klein.          
VIII.....................  Paper and envelopes..............................   92-622           Klein.          
IX.......................  Debarment, suspension, and ineligibility.........    89-89    88-96  DeStefano.      
X........................  Revision to optional form 17, sealed bid label...   92-602           Scott.          
XI.......................  Notification of ownership changes................    91-20   89-117  Olson.          
XII......................  Certificates of competency.......................   91-107    91-88  Scott.          
XIII.....................  Small business competitiveness demonstration        92-302           Scott.          
                            program (interim).                                                                  
XIV......................  Small business concern representation............    91-61    90-46  Scott.          
XV.......................  Prohibition of DOL implementation/administration    93-618           O'Neill.        
                            of Davis-Bacon helper regulations pursuant to                                       
                            fiscal year 1994 appropriation act.                                                 
XVI......................  Walsh-Healey definitions.........................    92-36           O'Neill.        
XVII.....................  Section 4(c) price adjustments...................   93-609           O'Neill.        
XVIII....................  Collective Bargaining agreement, contingency          92-7           O'Neill.        
                            clauses.                                                                            
XIX......................  Cost accounting standards........................    92-18           Olson.          
XX.......................  CAS applicability and thresholds.................    93-27           Olson.          
XXI......................  Advance agreements, composition of total cost,       91-45    90-23  Olson.          
                            and accounting for unallowable costs.                                               
XXII.....................  Postretirement benefits-transition costs.........    91-42     91-5  Olson.          
XXIII....................  Advance payment reporting........................   93-309           Olson.          
XXIV.....................  Defense production act amendments (interim)......   93-304           O'Neill.        
XXV......................  Defense Technical Information Center.............    93-29           O'Neill.        
XXVI.....................  Construction contracting.........................    90-62   90-448  O'Neill.        
XXVII....................  Child care services (Interim)....................   91-106   91-328  Scott.          
XXVIII...................  Final indirect cost agreements...................   91-103    91-81  Olson.          
XXIX.....................  Consent to subcontract...........................    91-68   90-516  Klein.          
XXX......................  Contractors' purchasing systems reviews..........    90-53   90-453  Klein.          
XXXI.....................  Transfers of government property.................    90-34   90-454  Klein.          
XXXII....................  Commercial bills of lading under cost-               88-56   86-102  Klein.          
                            reimbursement contracts audit by GSA.                                               
XXXIII...................  Qualification requirements.......................   92-612           O'Neill.        
XXXIV....................  Small business and small disadvantaged              92-628           Scott.          
                            subcontracting plan.                                                                
XXXV.....................  Shipments to ports and air terminals.............    91-11   90-457  O'Such.         
XXXVI....................  Standard form 18, request for quotations.........    91-84    91-36  Scott.          
XXXVII...................  Revisions to standard forms 1414 and 1415........     92-9           O'Such.         
XXXVIII..................  Technical amendments.............................                                    
XXXIX....................  Looseleaf amendments.............................                                    
XL.......................  Annual notice of rates of inflation..............                    Olson.          
----------------------------------------------------------------------------------------------------------------

DATES: For effective dates and comment dates, see separate documents 
which follow. Please cite FAC 90-23 and the appropriate FAR case 
number(s) in all correspondence related to the following documents.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears (in the 
table above) in relation to each FAR case or subject area. For general 
information, contact the FAR Secretariat, room 4037, GS Building, 
Washington, DC 20405, (202) 501-4755. Please cite FAC 90-23 and 
specific FAR case number(s).

SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-23 amends 
the Federal Acquisition Regulation (FAR) as specified below:

Item I--Training for Contracting Personnel (FAR Case 93-604)

    Subpart 1.6 is revised by, among other things, adding language at 
FAR 1.603-1, General, that addresses the requirements of the Office of 
Federal Procurement Policy (OFPP) Policy Letter No. 92-3, ``Procurement 
Professionalism Program Policy--Training for Contracting Personnel, 
dated June 24, 1992. OFPP Policy Letter No. 92-3, contains OFPP's 
standards for skill-based training in performing contracting and 
purchasing duties. The above changes will implement in the FAR, 
policies established by the OFPP Policy Letter.

Item II--Storage of Contract Files (FAR Case 91-101)

    This final rule revises FAR Subparts 4.7 and 4.8 to permit the use 
of various media (paper, electronic, microfilm, etc.) for the storage 
of official contract files by contractors and contracting and contract 
administration offices.

Item III--National Security (FAR Case 93-8)

    FAR 5.303(a) is revised to clarify that the requirement for public 
announcement of contract awards over $3 million does not apply to 
contracts exempted from synopsis in the Commerce Business Daily for 
reasons of national security.

Item IV--Acquisition of Utility Services (FAR Case 91-13)

    A new Part 41, Acquisition of Utility Services, is added and 
replaces the existing language now located at FAR Subpart 8.3. Part 41 
provides uniform language pertaining to the acquisition of utilities 
service which is applicable to all Executive agencies and will enable 
agencies to delete most of their regulatory guidance on utilities from 
their agency FAR supplements. The part includes additional guidance for 
contracting officers in acquiring and administering contracts for 
utility service and includes additional definitions applicable to 
utility service contracts. Language was added delineating existing 
statutory and delegated authority for utility service contracting and 
providing for use of the standard forms to acquire utility services. 
``Standard'' specification formats and annual utility service review 
formats have been established for use in acquiring utility services.

Item V--Lease with Option to Purchase (FAR Case 91-6)

    This final rule amends the FAR by adding paragraph 7.402(b)(4), 
section 7.404, and clause 52.207-5, based on the Defense Management 
Review, to include information required to support a contracting 
officer's decision to use a lease with an option to purchase, and to 
outline the Government's right to purchase at any time during the 
performance of the contract.

Item VI--Procurement From People Who Are Blind or Severely Disabled 
(FAR Case 93-610)

    FAR 8.001, 8.603, Subpart 8.7, and 9.107 are amended to reflect the 
Committee for Purchase From the Blind and Other Severely Handicapped 
name change and revisions to the Committee's regulations.

Item VII--Acquisition of Helium (FAR Case 91-9)

    The FAR is being revised at 8.002; a new subpart is being added at 
Subpart 8.5; and a new clause is being added at 52.208-8, to provide 
guidance on the acquisition of helium. The Helium Act (50 U.S.C. 167a 
et seq.; Pub. L. 86-777) requires that all major helium requirements be 
purchased from the Secretary of the Interior. The coverage will assist 
Government agencies and contractors in complying with the Helium Act by 
ensuring that contracting officers and contractors are aware of the 
requirements for using Bureau of Mines' helium in Government contracts.

Item VIII--Paper and Envelopes (FAR Case 92-622)

    Paragraph (c) of 8.802, Policy, has been revised to specify that 
paper and envelopes for use by Executive agencies outside the District 
of Columbia, and which are stocked by the General Services 
Administration (GSA), shall be requisitioned by agencies from GSA.

Item IX--Debarment, Suspension, and Ineligibility (FAR Case 89-89)

    This final rule revises Subpart 9.4 to clarify to what extent, 
absent a termination by the issuing agency, an individual may place 
orders against an existing contract notwithstanding a debarment, 
suspension, or proposed debarment of the contractor. The rule also 
clarifies that an optional (permissive) user may elect to place a 
delivery order; a compelling reason determination is not required.

Item X--Sealed Bid Label (FAR Case 92-602)

    FAR 14.202-3, 15.408, 53.214 and 53.215-1 are amended to permit use 
of the Optional Form 17, Offer Label, to identify offers for sealed bid 
and negotiated acquisitions. Use of the label is limited to envelopes 
larger than 6\1/8\ inches by 11\1/2\ inches to comply with U.S. Postal 
Service requirements for automation-compatible mail.

Item XI--Notification of Ownership Changes (FAR Case 91-20)

    FAR 15.804-8(g) and 52.215-40, Notification of Ownership Changes, 
are added to require contractors to notify the Government of changes in 
contractor ownership and their effects, and to emphasize existing 
recordkeeping requirements. These changes are intended to enable audit 
determinations that cost increases related to contractor ownership 
changes are not charged to Government contracts. The clause at 52.215-
40 requires contractors to: (i) Notify the contracting officer when a 
change in contractor ownership, or a change in asset valuation or in 
any other costs related to an ownership change, occurs or is pending; 
and (ii) retain and continue to maintain, through successive changes in 
company ownership, asset inventory records currently required under the 
FAR.

Item XII--Certificates of Competency (FAR Case 91-107)

    FAR 19.000(b) and 19.601 are revised to clarify the applicability 
of Certificate of Competency procedures, making it clear that the 
statutory requirement to refer nonresponsibility determinations to the 
Small Business Administration is unrelated to a contracting agency's 
location.

Item XIII--Small Business Competitiveness Demonstration Program 
(FAR Case 92-302)

    This interim rule implements Title II of Pub. L. 102-366, the Small 
Business Credit and Business Opportunity Enhancement Act of 1992, which 
revises Title VII of Pub. L. 100-656, the Small Business 
Competitiveness Demonstration Program. Editorial amendments are made to 
FAR 19.1001. FAR 19.1006(b)(2) is amended to specify that agencies may 
reinstate the use of small business set-asides as necessary to meet 
assigned goals, but only within the organizational unit(s) that failed 
to meet the small business goals. FAR 19.1005(a)(3) is amended to 
revise the description of Architect and Engineering services as a 
Designated Industry Group.

Item XIV--Small Business Concern Representation (FAR Case 91-61)

    FAR 19.502-4(b) is amended to clarify that questions regarding the 
size status of offerors are matters of eligibility--not 
responsiveness--and must be referred to the SBA. FAR 52.219-1 is 
amended to remove the requirement for offerors to certify that all 
supplies to be furnished will be manufactured by a small business in 
the United States and to add a sentence to clarify that set-aside 
clauses contain restrictions on the source of end items to be 
furnished.

Item XV--Prohibition of Department of Labor Implementation/
Administration of Davis-Bacon Helper Regulations Pursuant to Fiscal 
Year 1994 Appropriation Act (FAR Case 93-618)

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council are implementing in the FAR the Department of Labor 
(DOL) suspension of its Davis-Bacon Act ``Helper'' regulations. The DOL 
regulations were suspended on October 21, 1993. A notice of suspension 
was published in the Federal Register at 58 FR 58954, November 5, 1993.

Item XVI--Walsh-Healey Definitions (FAR Case 92-36)

    FAR 22.606-2(b) is revised to add a reference to the alternate 
``regular dealer'' qualification requirements for information systems 
integrators found in DOL regulations (41 CFR 50-201.101).

Item XVII--Section 4c Price Adjustments (FAR Case 93-609)

    This final rule revises the FAR coverage at 22.1002-3, 22.1012-3, 
and 22.1012-5 to clarify that the requirement for successor contractors 
on contracts over $2,500, for substantially the same services performed 
in the same locality, to pay wages and fringe benefits at least equal 
to those contained in any bona fide collective bargaining agreement 
entered into under the predecessor contract, is self-executing. The 
requirement is not contingent upon incorporating a wage determination 
or the wage and fringe benefit terms of the predecessor contractor's 
collective bargaining agreement in the successor contract. However, the 
contracting officer shall incorporate the wage and fringe benefit terms 
of the collective bargaining agreement itself in contract solicitations 
and may incorporate the terms or the agreement itself in other contract 
actions.

Item XVIII--Collective Bargaining Agreement, Contingency Clauses 
(FAR Case 92-7)

    This final rule revises the coverage at FAR 22.1002-3, 22.1008-3, 
and 22.1021. These changes are necessary to implement the direction 
contained in DOL Memorandums No. 159 and 166 concerning contingencies 
in collective bargaining agreements subject to section 4(c) of the 
Service Contract Act and requests for substantial variance hearing. 
This rule also makes editorial changes to more accurately reflect DOL 
regulations on the Service Contract Act.

Item XIX--Cost Accounting Standards (FAR Case 92-18)

    The interim rule issued in FAC 90-12, which amended the FAR based 
on the Cost Accounting Standards Board's recodification of the Cost 
Accounting Standards in 48 CFR Chapter 99, is converted to a final rule 
with revisions.

Item XX--CAS Applicability and Thresholds (FAR Case 93-27)

    The revisions to the cost accounting standards made by the Cost 
Accounting Standards Board at 48 CFR Chapter 99 are incorporated into 
the FAR.

Item XXI--Advance Agreements, Composition of Total Cost, and Accounting 
for Unallowable Costs (FAR Case 91-45)

    This final rule amends FAR 31.109, Advance agreements; 31.201-1, 
Composition of total cost; and 31.201-6, Accounting for unallowable 
costs. Language is added at 31.109(a) to address the use of advance 
agreements to clarify allowability issues under the specific cost 
principles, in order to minimize subsequent disputes. The current 
phrase in 31.109(a), ``particularly for firms or their divisions that 
may not be under effective competitive constraints,'' is deleted 
because the determination of the reasonableness, allocability, or 
allowability of a cost under the specific cost principles is not 
significantly impacted by the business environment in which the 
industry operates. Changes in FAR 31.201-1 include deleting the word 
``allowable'' in its first sentence; redesignating the existing 
paragraph as ``(a)''; and inserting a new paragraph ``(b)'' which makes 
it clear that while the total cost of a contract includes all allocable 
costs, the total allowable costs on a Government contract are limited 
to those allocable costs which are allowable pursuant to Part 31 and 
agency supplements. FAR 31.201-6(c) is revised to clarify that there is 
no intended difference in the accounting and presentation of 
unallowable costs between contracts which are covered by the Cost 
Accounting Standards and those which are not.

Item XXII--Postretirement Benefits--Transition Costs (FAR Case 91-
42)

    This item converts the interim rule concerning the treatment of 
costs for postretirement benefits other than pensions (PRB) which are 
attributable to employees' past service to a final rule. The interim 
rule was published in the Federal Register at 56 FR 41738, August 22, 
1991, as Item IX of FAC 90-7. The interim rule changed FAR 31.205-6 to 
add a new paragraph (j)(3)(v), revised the first sentence of paragraph 
(j)(4), redesignated the existing paragraph (o)(4) as (o)(5), and added 
a new paragraph (o)(4). The final rule differs from the interim rule in 
that it amends FAR 31.205-6(o)(2) to allow costs generated using the 
terminal funding method permitted for CAS-covered contractors. Both 
terminal funding method and cash basis (pay-as-you-go) accounting are 
allowable assignment methods under CAS but are not sanctioned by 
Generally Accepted Accounting Principles. It is intended that the 
methods allowed by CAS for prefunding retiree insurance programs be 
allowable for all contractors. Subsequent paragraphs are redesignated 
as (o)(3) through (o)(6) with minor clarifications made in paragraphs 
(o)(3) and (5). A change is made in the clause at 52.215-39, Reversion 
or Adjustment of Plans for Postretirement Benefits Other Than Pensions 
(PRB), to reflect the change in paragraph numbering at 31.205-6(o).
    The amended cost principle provides guidance for any transfer of 
pension funds to another employee benefit fund. In effect, the cost 
principle requires any increase in current or future Government costs 
for the pension fund due to such a withdrawal to be offset by 
equivalent decreases in Government costs for the employee benefit fund 
receiving the transfer. Transfers made without an advance agreement 
shall be treated as if the contractor withdrew the funds and are 
subject to 31.205-6(j)(4), and the deposit to the receiving fund is 
subject to the cost allowability rules governing the receiving fund in 
regards to measurement and assignment of costs. Under 31.205-6(j)(4), 
the Government is entitled to its equitable share of the gross amount 
withdrawn from pension fund assets. FAR 31.205-6(o)(5) limits the 
allowable amount of contractor PRB transition costs for any fiscal year 
to the amount which would be assigned to that year using the 
amortization method described in Financial Accounting Standards Board 
Statement 106. This limitation is necessary because Government fiscal 
policy dictates that the past service cost element be amortized rather 
than immediately recognized.

Item XXIII--Advance Payment Reporting (FAR Case 93-309)

    FAR 32.402(a) is revised to delete the requirement for submitting 
an advance notice to Congress prior to making an advance payment 
exceeding $25 million.

Item XXIV--Defense Production Act Amendments (FAR Case 93-304)

    This interim rule amends the FAR by adding FAR Subpart 34.1, 
Testing, qualification and use of industrial resources developed under 
Title III, Defense Production Act (DPA), to implement pertinent 
provisions of the Defense Production Act Amendments of 1992 (Public Law 
102-558). Title III of the DPA of 1950 authorizes various forms of 
Government assistance to encourage expansion of production capacity and 
supply of industrial resources essential to national defense. The DPA 
Amendments of 1992 provide for the testing, qualification, and use of 
industrial resources manufactured or developed with assistance provided 
under Title III of the DPA. This rule expresses Government policy to 
pay for such testing, and provides definitions, procedures, and a 
contract clause to implement the policy.

Item XXV--Defense Technical Information Center (FAR Case 93-29)

    FAR 35.010, Scientific and technical reports, is revised to delete 
address information and language instructing DoD contractors to send 
copies of scientific and technical reports resulting from DoD contracts 
to Defense Technical Information Center (DTIC). In addition, the 
address for the National Technical Information Service is updated.

Item XXVI--Construction Contracting (FAR Case 90-62)

    This final rule revises FAR Parts 36 and 52 by including a new 
section at 36.212, Preconstruction orientation, inserting a new clause 
at 52.236-26, Preconstruction conference, and a new provision at 
52.236-27, Site Visit (Construction). The new clause and provision have 
previously been used by military activities and are considered to be 
beneficial to contractors as well as civilian and defense agencies.

Item XXVII--Child Care Services (FAR Case 91-106)

    This interim rule amends FAR Part 37 to implement 42 U.S.C. 13041 
by adding a definition of ``child care services'' at 37.101 and adding 
language at 37.103(d) requiring contracting officers to ensure that 
contracts for child care services include requirements for criminal 
history background checks on employees who will perform child care 
services.

Item XXVIII--Final Indirect Cost Agreements (FAR Case 91-103)

    FAR 42.705-2 and 52.216-13 are amended to eliminate the 
requirements for contractors to execute a Certificate of Current Cost 
or Pricing Data in conjunction with final indirect cost agreements on 
facilities contracts and for auditors to obtain a certificate under 
auditor determination procedures for final indirect cost rates.

Item XXIX--Consent to Subcontract (FAR Case 91-68)

    FAR 44.201, 44.204, 52.244-1, and 52.244-2 are revised to eliminate 
the exception for contracting officer consent for major systems and 
subsystems. Instead, contracting officers are allowed to specify in the 
contract schedule all subcontracts for major systems, subsystems, or 
components needing special surveillance, for which consent to 
subcontract must be obtained by the prime contractor.

Item XXX--Contractors' Purchasing Systems Reviews (FAR Case 90-53)

    This final rule provides revisions to 44.302(b) and paragraphs (a) 
and (b) of 44.304. These revisions are in keeping with efforts to 
streamline the acquisition process and eliminate regulatory burdens on 
both contracting officers and contractors.

Item XXXI--Transfers of Government Property (FAR Case 90-34)

    This final rule revises the FAR at 45.311 and 45.603 to ensure that 
Government property is transferred and documented properly.

Item XXXII--Commercial Bills of Lading Under Cost-Reimbursement 
Contracts Audit by GSA (FAR Case 88-56)

    FAR 47.104-4 is amended to prescribe the added clause at 52.247-67, 
Submission of Commercial Transportation Bills to the General Services 
Administration for Audit, in solicitations and contracts when a cost-
reimbursement contract is contemplated and the contract or a first-tier 
cost-reimbursement subcontract thereunder will authorize reimbursement 
of transportation as a direct charge to the contract or subcontract.

Item XXXIII--Qualification Requirements (FAR Case 92-612)

    FAR 52.209-1(e) is revised to allow offerors to submit evidence of 
qualification prior to award of the contract, rather than with their 
offers. This change corrects an inconsistency between paragraphs (b) 
and (e) of the clause highlighted by the decision in Gardner Zemke 
Company, Comptroller General Decision B-238334, April 5, 1990.

Item XXXIV--Small Business and Small Disadvantaged Business 
Subcontracting Plan (FAR Case 92-628)

    FAR 52.219-9 is amended to state that a firm may rely on the 
information contained in the SBA Procurement Automated Source System 
(PASS) as an accurate representation of a concern's size and ownership 
characteristics for purposes of maintaining a small business source 
list and as its source list.

Item XXXV--Shipments to Ports and Air Terminals (FAR Case 91-11)

    The provision at 52.247-51, Evaluation of Export Offers, now 
requires contracting officers to publish, with the solicitation, any 
available information on port handling and ocean charges for DoD water 
terminals. Several editorial and minor technical changes were also made 
to the provision.

Item XXXVI--Standard Form 18, Request for Quotation (FAR Case 91-
84)

    Standard Form 18, Request for Quotations, at 53.301-18, is revised 
by deleting the Small Business Concern Representation and the Notice of 
Small Business Small Purchase Set-Aside from the reverse of the form, 
and by adding the Standard Industrial Classification Code and small 
business size standard to the face of the form. Corresponding changes 
were made to the face of the form for the contracting officer to 
indicate whether the Request for Quotations is a small business small 
purchase set-aside and whether additional provisions and 
representations are attached. Current versions of the two provisions 
should be attached, when appropriate.

Item XXXVII--Revisions to Standard Form 1414 and 1415 (FAR Case 92-
9)

    Standard Form 1414, Consent of Surety, and Standard Form 1415, 
Consent of Surety and Increase of Penalty, are revised to accommodate 
consents by individual sureties and to provide space for dates of 
execution.

Item XXXVIII--Technical Amendments

    Technical amendments have been made to FAR 1.105 to update the list 
of OMB approvals under the Paperwork Reduction Act.

Item XXXIX--Looseleaf Amendments

    The following amendments are to the looseleaf edition of the FAR:
    1. In 52.301, the Provision and Clause Matrix is reissued in its 
entirety with the following amendments:

------------------------------------------------------------------------
       Provision or clause                  Amendment to matrix         
------------------------------------------------------------------------
52.215-30-.......................  In ``UCF'' Column , remove ``I'',    
                                    insert ``L'.                        
52.216-1-........................  In ``IBR column'' remove ``Yes'',    
                                    insert ``No''.                      
52.219-15-.......................  In ``IBR column'' remove ``Yes'',    
                                    insert ``No''.                      
52.219-22-.......................  In ``UCF'' column, remove ``K'',     
                                    insert ``L''.                       
Alternate I following 52.222-35-.  In ``Prescribed In'' column, remove  
                                    ``22.1308(c)'' and insert           
                                    ``22.1308(a)''.                     
52.225-8 and 52.225-9-...........  In ``Prescribed In'' columns, remove 
                                    ``25.407(a)(1)'' and                
                                    ``25.407(a)(2)'', and insert        
                                    ``25.408(a)(1) and 25.408(a)(2),    
                                    respectively.                       
52.225-16 -......................  In ``P or C'' column, remove ``C'',  
                                    insert ``P''; and in ``UCF'' column,
                                    remove ``I'', insert ``k''.         
52.225-18 and 52.225-19-.........  In ``SP'' column, remove ``A'' both  
                                    times it appears.                   
52.227-2-........................  In ``FP Con'' column, add ``A''.     
52.232-1.........................  In ``LMV'' column, remove ``R''.     
52-233-1-........................  In ``Prescribed in'' column remove   
                                    ``33.214'' and insert'' 33.215''.   
------------------------------------------------------------------------

    2. The Corrections and Subscriptions Problems page found at the end 
of the FAR is reissued due to revisions in references and format.

Item XL--Annual Notice of Rates of Inflation

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council have agreed to publish as an information item, the 
rates of inflation which are used in conjunction with other factors to 
determine the allowability of IR&D/B&P costs for major contractors 
under 31.205-18(c)(2)(i)(C)(2). These rates were issued by the 
Department of Defense Principal Deputy Comptroller in January 1994.
    Federal Acquisition Circular 90-13, FAR Case 91-37, Item VII, 
published in the Federal Register at 57 FR 44264, September 24, 1992, 
provided the rates of inflation which were to be used to determine the 
allowability of IR&D/B&P costs for major contractors during the 3-year 
transition period FY 1993 through 1995. FAR 31.205-18(c)(2)(i)(C)(2) 
states that the annual rates of inflation will be published in the 
Federal Register on an annual basis.
    FAC 90-20, published in the Federal Register at 59 FR 11370, March 
10, 1994, provided the rates of inflation for FY 1993 through 1996. The 
following rates of inflation are effective immediately, supersede those 
published in the Federal Register on March 10, 1994, and shall remain 
in effect until superseded by the next publication:

------------------------------------------------------------------------
                                                             Annual     
                      Fiscal year                        percentage rate
------------------------------------------------------------------------
1993..................................................  2.6             
1994..................................................  2.7             
1995..................................................  2.9             
1996..................................................  3.0             
1997..................................................  3.0             
------------------------------------------------------------------------

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

Federal Acquisition Circular

Number 90-23
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 90-23 are effective 
February 27, 1995, except for the following items:
    Items XIII, XXIV, XXVII, and XXXVIII, which are effective December 
28, 1994; and
    Item XX, which is effective February 27, 1995, except for specific 
amendments, effective November 4, 1993, which are noted in the 
EFFECTIVE DATE.

    Dated: September 19, 1994.
Arthur E. Ronkovich,
Acting Associate Administrator, Office of Acquisition Policy, (GSA).
    Dated: September 16, 1994.
Deidre A. Lee,
Associate Administrator for Procurement, NASA.
    Dated: October 4, 1994.
Eleanor R. Spector,
Director, Defense Procurement.
[FR Doc. 94-30669 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P