[Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
[Rules and Regulations]
[Pages 42648-42649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19857]




[[Page 42647]]

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Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
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48 CFR Part 1, et al.



Federal Acquisition Regulations; Final Rules

  Federal Register / Vol. 60, No. 158 / Wednesday, August 16, 1995 / 
Rules and Regulations  

[[Page 42648]]


DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Federal Acquisition Circular 90-31]


Federal Acquisition Regulation; Introduction of Miscellaneous 
Amendments

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final rules.

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

SUMMARY: This document serves to introduce the final rules which follow 
and which comprise Federal Acquisition Circular (FAC) 90-31. The 
Federal Acquisition Regulatory Council has agreed to issue FAC 90-31 to 
amend the Federal Acquisition Regulation (FAR).

DATES: For effective dates, see individual documents following this 
one.

FOR FURTHER INFORMATION CONTACT:The team leader whose name appears 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 90-31 and FAR case number(s).

SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-31 amends 
the Federal Acquisition Regulation (FAR) as specified below:

------------------------------------------------------------------------
  Item            Subject             FAR case          Team leader     
------------------------------------------------------------------------
I         Consolidation and        94-740         Tucciarone (703) 767- 
           Revision of the                         2270                 
           Authority to Examine                                         
           Records.                                                     
II        Contract Award           94-701         Rider (703) 614-1634  
           Implementation.                                              
III       Penalties on             94-751         Belton (703) 602-2357 
           Unallowable Indirect                                         
           Costs.                                                       
IV        Implementation of        94-754         Belton (703) 602-2357 
           Various Cost Principle                                       
           Provisions.                                                  
V         Entertainment, Gift,     94-750         Belton (703) 602-2357 
           and Recreation Costs                                         
           for Contractor                                               
           Employees.                                                   
VI        Contractor Overhead      94-752         Belton (703) 602-2357 
           Certification.                                               
VII       Technical Amendments...                                       
------------------------------------------------------------------------

Case Summaries

    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.

Item I--Consolidation and Revision of the Authority to Examine Records 
(FAR Case 94-740)

    This final rule implements Sections 2201(a), 2251(a), 4102(c), and 
4103(d) of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 
103-355). The rule (1) permits contractors to store records in 
electronic form; (2) restricts contracting officers from requesting a 
preaward audit of indirect costs if the results of a recent audit are 
available; (3) deletes the clause at 52.215-1, Examination of Records 
by Comptroller General; (4) and revises the clauses at 52.214-26, Audit 
and Records--Sealed Bidding, and 52.215-2, Audit and Records--
Negotiation, to provide for examination of records by the Comptroller 
General.

Item II--Contract Award Implementation (FAR Case 94-701)

    This final rule implements Sections 1002, 1003, 1005, 1011, 1012, 
1013, 1014, 1052, 1053, 1055, 1061, 1062, 1063, 1064, 1555, 7203, and 
10004 of Pub. L. 103-355. The rule (1) requires agencies to report 
additional information on procurements exceeding $25,000; (2) expands 
the criteria for establishing or maintaining alternative sources of 
supplies or services; (3) permits use of other than full and open 
competition to acquire expert services for litigation; (4) places 
limitations on the use of other than full and open competition when 
authorized or required by statute; (5) clarifies approval requirements 
for written justifications for other than full and open competition; 
(6) revises procedures for specifying evaluation factors and subfactors 
in solicitations, for conducting written or oral discussions, and for 
providing postaward notices and debriefings to offerors; (7) requires a 
written determination before providing for evaluation of options in 
sealed bid procurements; (8) permits nonprofit agencies for the blind 
or severely disabled to use Government supply sources in performing 
contracts under the Javits-Wagner-O'Day Act; and (9) allows award 
without discussion to other than the lowest overall cost offeror.

Item III--Penalties on Unallowable Indirect Costs (FAR Case 94-751)

    This final rule implements Sections 2101 and 2151 of Pub. L. 103-
355. The rule contains procedures for the assessment of penalties on 
unallowable indirect costs under contracts exceeding $500,000. These 
procedures are essentially the same as those contained in the Defense 
FAR Supplement.

Item IV--Implementation of Various Cost Principle Provisions (FAR Case 
94-754)

    This final rule implements Section 2101 of Pub. L. 103-355. The 
rule adds the costs of lobbying the legislative body of a political 
subdivision of a state to the list of unallowable costs; adds the cost 
of ``conventions'' to the costs to be clarified in the cost principles; 
and expands the coverage to the Coast Guard and the National 
Aeronautics and Space Administration. Section 2151 amends 41 U.S.C. 256 
to include all the provisions of 10 U.S.C. 2324, as amended by Section 
2101. Therefore, the provisions are made generally applicable to all 
other executive agencies. The new FAR language, with only minor 
variations, was transferred from the current coverage in the Defense 
Federal Acquisition Regulation Supplement.

Item V--Entertainment, Gift, and Recreation Costs for Contractor 
Employees (FAR Case 94-750)

    This rule finalizes the interim rule published in FAC 90-25. The 
rule implements Section 2192 of Pub. L. 103-355 to revise the cost 
principles governing entertainment, gift, and recreation costs for 
contractor employees. The final rule differs from the interim rule in 
that it (1) clarifies that gifts do not include certain employee 
performance and achievement awards; (2) clarifies the restrictions 

[[Page 42649]]
pertaining to entertainment and recreation costs; and (3) eliminates 
the requirement that certain costs are allowable only if the net amount 
per employee is reasonable. This final rule replaces the interim rule 
in its entirety for any contracts containing the interim rule. Thus, 
the provisions of the interim rule will not apply to costs incurred 
under any contract under any circumstances.

Item VI--Contractor Overhead Certification (FAR Case 94-752)

    This final rule implements Section 2151 of Pub. L. 103-355. The 
rule contains procedures for obtaining contractor certification of a 
proposal to establish or modify billing rates or to establish final 
indirect cost rates. These procedures are essentially the same as those 
contained in the Defense FAR Supplement.

    Dated: August 7, 1995.
Edward C. Loeb,
Deputy Project Manager for the Implementation of the Federal 
Acquisition Streamlining Act of 1994.
Federal Acquisition Circular

[Number 90-31]
    Federal Acquisition Circular (FAC) 90-31 is issued under the 
authority of 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 90-31 is effective 
October 1, 1995, except for Item VII which is effective August 16, 
1995. FAC Items I through VI are applicable for solicitations issued on 
or after October 1, 1995. Contracting officers may, at their 
discretion, include the provisions and clauses in FAC Items I through 
VI in solicitations issued before October 1, 1995, for contracts 
expected to be awarded on or after October 1, 1995.

    Dated: August 3, 1995.
Eleanor R. Spector,
Director, Defense Procurement.

    Dated: August 3, 1995.
Ida M. Ustad,
Associate Administrator for Acquisition Policy, General Services 
Administration.

    Dated: August 7, 1995.
Deidre A. Lee,
Associate Administrator for Procurement, National Aeronautics & Space 
Administration.
[FR Doc. 95-19857 Filed 8-15-95; 8:45 am]
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