[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2626-2627]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1014]




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Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Ch. I, et al.



Federal Acquisition Regulations; Final and Interim Rules

  Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules 
and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 90-37 Introduction

AGENCY: 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.

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

SUMMARY: This document summarizes the Federal Acquisition Regulation 
(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) 90-37 to amend 
the FAR.

DATES: For effective dates and comment dates, see separate documents 
which follow. Please cite FAC 90-37 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 below) 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 90-37 and specific FAR case number(s).
SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-37 amends 
the Federal Acquisition Regulation (FAR) as specified below:

----------------------------------------------------------------------------------------------------------------
          Item                             Subject                      FAR case              Analyst           
----------------------------------------------------------------------------------------------------------------
I......................  Inherently Governmental Functions..........       92-051  O'Such.                      
II.....................  Javits-Wagner-O'Day Program................       91-108  Klein.                       
III....................  Made in America Labels/Unfair Trade              93-301/  De Stefano.                  
                          Practices.                                       93-306                               
IV.....................  Debarment and Suspension Certificate.......       92-615  De Stefano.                  
V......................  Nonprofit Institutions Clause Prescription.       92-010  Olson.                       
VI.....................  Field Pricing Support Request..............       95-006  Olson.                       
VII....................  Subcontract Proposal Audits................       92-002  Olson.                       
VIII...................  Overhead Should--Cost Reviews..............       92-017  Olson.                       
IX.....................  SBA Responsibility, Certificate of                92-606  Klein.                       
                          Competency Requests.                                                                  
X......................  Mentor Protege Program (Interim)...........       93-308  Klein.                       
XI.....................  Subcontracting Plans.......................       92-019  Klein.                       
XII....................  Insurance--Liability to Third Persons             92-014  O'Such.                      
                          (under Cost Reimbursement Contracts).                                                 
XIII...................  Availability of Accounting Guide...........       94-002  Olson.                       
XIV....................  Nonallowability of Excise Taxes on                92-604  Olson.                       
                          Nondeductible Contributions to Deferred                                               
                          Compensation Plans.                                                                   
XV.....................  Contractors' Purchasing Systems Reviews and       92-040  Klein.                       
                          Subcontractor Consent.                                                                
----------------------------------------------------------------------------------------------------------------

Item I--Inherently Governmental Functions (FAR Case 92-051)

    This final rule amends FAR Parts 7, 11, and 37 to provide policy 
and procedures relating to inherently governmental functions. Subpart 
7.5 is added to provide a definition of ``inherently governmental 
functions'' and to provide a list of examples of functions considered 
to be inherently governmental, or which shall be treated as such, and a 
list of certain services and actions that are not considered to be 
inherently governmental functions.

Item II--Javits-Wagner-O'Day Program (JWOD) (FAR Case 91-108)

    This final rule amends FAR Parts 8, 51, and 52 to clarify that the 
Government's statutory obligation to purchase certain items from the 
Committee for Purchase from People Who Are Blind or Severely Disabled 
also applies when contractors purchase items for Government use.

Item III--Made in America Labels/Unfair Trade Practices (FAR Cases 93-
301 and 93-306)

    This final rule amends FAR 9.403, 9.406, and 9.407 to add language 
concerning suspension or debarment of contractors who engage in unfair 
trade practices and/or intentionally affix a label bearing a ``Made in 
America'' inscription (or any inscription having the same meaning) to a 
product sold in or shipped to the United States.

Item IV--Debarment and Suspension Certificate (FAR Case 92-615)

    This final rule amends FAR 9.406-2, 9.407-2, and 52.209-5 to add 
``tax evasion'' as a cause for debarment or suspension.

Item V--Nonprofit Institutions Clause Prescription (FAR Case 92-010)

    This final rule amends the prescriptions for use of the clauses at 
52.215-27, Termination of Defined Benefit Pension Plans, and 52.215-39, 
Reversion or Adjustment of Plans for Postretirement Benefits Other Than 
Pensions (PRB), and also clarifies the language of the clauses.

Item VI--Field Pricing Support Request (FAR Case 95-006)

    This final rule revises FAR 15.805-5(c)(1) to clarify that 
contracting officers may send audit requests directly to the cognizant 
audit office, if no other type of field pricing support is required.

Item VII--Subcontract Proposal Audits (FAR Case 92-002)

    This final rule amends FAR 15.806-3, Field pricing reports, to add 
two additional examples of when field pricing support audits of 
subcontract proposals may be appropriate. The first example is when the 
contractor or higher tier subcontractor has been cited for having 
significant estimating system deficiencies in the area of subcontract 
pricing. The second example is when a lower tier subcontractor has been 
cited as having significant estimating system deficiencies.

Item VIII--Overhead Should-Cost Reviews (FAR Case 92-017)

    This final rule amends FAR 15.810 to add guidance on overhead 
should-cost reviews.

Item IX--SBA Responsibility, Certificate of Competency Requests (FAR 
Case 92-606)

    This final rule amends FAR 19.602-2 to reflect the approval of 
Small Business Administration regional offices to issue Certificate of 
Competency (COC) Determinations as provided in 13 CFR Part 125.

[[Page 2627]]


Item X--Mentor Protege Program (FAR Case 93-308)

    This interim rule amends FAR 19.702, Statutory requirements, to 
allow mentor firms participating in the Department of Defense (DOD) 
Mentor-Protege Program to be granted credit toward subcontracting goals 
under small business subcontracting plans entered into with any 
executive agency. FAR 52.244-5, Competition in Subcontracting, is 
amended to permit DOD mentor firms to award subcontracts on a 
noncompetitive basis to protege firms under DOD and other contracts.

Item XI--Subcontracting Plans (FAR Case 92-019)

    This final rule amends FAR 19.705-2(d) to expand the circumstances 
when subcontracting plans may be required from and negotiated with more 
than the apparently successful offeror. The clause prescription at 
19.708(b)(1) and Alternate II for the clause at 52.219-9 are added for 
use when subcontracting plans are required with initial proposals.

Item XII--Insurance--Liability to Third Persons (under Cost 
Reimbursement Contracting) (FAR Case 92-014)

    This final rule deletes the provision at FAR 52.228-6 and makes 
related changes at 28.311, 52.228-7, 52.245-7, and 52.245-10 to remove 
obsolete language pertaining to liability insurance under cost-
reimbursement contracts.

Item XIII--Availability of Accounting Guide (FAR Case 94-002)

    This final rule amends FAR Part 31 to add a new section 31.001 
advising contractors on how to obtain a copy of an informational guide 
entitled ``Guidance for New Contractors.''

Item XIV--Nonallowability of Excise Taxes on Nondeductible 
Contributions to Deferred Compensation Plans (FAR Case 92-604)

    This final rule amends FAR 31.205-41 to designate excise taxes at 
subtitle D, chapter 43 of the Internal Revenue Code, as unallowable 
costs.

Item XV--Contractors' Purchasing Systems Reviews and Subcontractor 
Consent (FAR Case 92-40)

    This final rule amends FAR Parts 44 and 52 to increase the 
thresholds for Contractors' Purchasing Systems Reviews (CPSR's) and 
subcontract consent. The threshold at 44.302(a) for performing CPSR's 
is raised from $10 million to $25 million. The threshold at 52.244-2(a) 
for consent to subcontract under cost-reimbursement and letter prime 
contracts for fabrication, purchase, rental, installation, or other 
acquisition for special test equipment is raised from $10,000 to 
$25,000. The threshold at 52.244-2(b)(1) requiring additional 
information on certain subcontracts is raised from $10,000 to $25,000.

    Dated: January 11, 1996.

Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

Federal Acquisition Circular

Number 90-37
    Federal Acquisition Circular (FAC) 90-37 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 90-37 is effective 
March 26, 1996, except for Item X which is effective January 26, 1996.

    Dated: January 4, 1996.
Eleanor R. Spector,
Director, Defense Procurement.

    Dated: January 17, 1996.
Ada M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.

    Dated: January 12, 1996.
Deidre A. Lee,
Associate Administrator for Procurement, National Aeronautics and Space 
Administration.
[FR Doc. 96-1014 Filed 1-25-96; 8:45 am]
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