[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67430-67431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31999]


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DEPARTMENT OF DEFENSE
48 CFR Chapter 1


Federal Acquisition Regulation; Small Entity Compliance Guide

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

ACTION: Notice.

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SUMMARY: This document is issued under the joint authority of the 
Secretary of Defense, the Administrator of General Services and the 
Administrator for the National Aeronautics and Space Administration as 
the Federal Acquisition Regulation (FAR) Council. This Small Entity 
Compliance Guide has been prepared in accordance with Section 212 of 
the Small Business Regulatory Enforcement Fairness Act of 1996 (Public 
Law 104-121). It consists of a summary of the rules appearing in 
Federal Acquisition Circular (FAC) 90-43 which amends the FAR. Further 
information regarding these rules may be obtained by referring to FAC 
90-43 which precedes this notice. This document may be obtained from 
the Internet at http://www.gsa.gov/far/SECG.

FOR FURTHER INFORMATION CONTACT: Beverly Fayson, FAR Secretariat, (202) 
501-4755.

Item I--FASA and the Walsh-Healey Public Contracts Act (FAR Case 
96-601)

    This interim rule amends the Federal Acquisition Regulation (FAR) 
to eliminate the requirement that covered contractors under the Walsh-
Healey Public Contracts Act must be either the manufacturer of or a 
regular dealer in the materials, supplies, articles, or equipment to be 
manufactured or used in the performance of the contract. Section 7201 
of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355) amended the Walsh-Healey Public Contracts Act to repeal the 
``manufacturer'' or ``regular dealer'' requirement.

[[Page 67431]]

Item II--Individual and Class Deviations (FAR Case 96-004)

    This final rule amends the FAR to eliminate the requirements for 
all agencies to submit copies of approved individual deviations to the 
FAR Secretariat and for DOD and NASA to submit copies of approved class 
deviations to the FAR Secretariat.

Item III--Use of Data Universal Numbering System as Primary 
Contractor Identification (FAR Case 95-307)

    This interim rule amends the FAR by adding a new solicitation 
provision at 52.204-6, and revising Standard Forms 294 and 295 to 
replace the Contractor Establishment Code with the Data Universal 
Numbering System number as the means of identifying contractors in the 
Federal Procurement Data System.

Item IV--Inapplicability of Cost Accounting Standards to Contracts 
and Subcontracts for Commercial Items (FAR Case 96-310)

    This final rule amends FAR Part 12 to implement Section 4205 of the 
Clinger-Cohen Act of 1996 (Public Law 104-106) (formerly the Federal 
Acquisition Reform Act (FARA)). Section 4205 amends 41 U.S.C. 422(f) to 
provide that the statutory requirement for mandatory use of Cost 
Accounting Standards (CAS) need not apply to contracts or subcontracts 
for the acquisition of commercial items. While CAS generally will not 
apply to acquisitions of commercial items, CAS requirements may be 
invoked as a matter of policy by the CAS Board, pursuant to the 
authority provided in 41 U.S.C. 422.

Item V--Allowable Cost and Payment Clause (FAR Case 93-024)

    This final rule amends the FAR to clarify that reimbursement of 
subcontract costs under cost-type contracts generally will not be made 
to a large business contractor until the contractor has made payment to 
the subcontractor.

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

    The interim rule published as Item X of FAC 90-37 is finalized with 
minor clarifying changes. The rule permits a mentor firm under the DOD 
Pilot Mentor-Protege Program to be granted credit toward subcontracting 
goals for certain costs incurred in providing developmental assistance 
to its protege firms, and to award subcontracts on a noncompetitive 
basis to its protege firms.

Item VII--Minority Small Business and Capital Ownership (FAR Case 
95-028)

    This interim rule amends the FAR to reflect revisions to the Small 
Business Administration's regulations at 13 CFR Parts 121 and 124, 
which address the Minority Small Business and Capital Ownership 
Development Program. The rule clarifies eligibility and procedural 
requirements for procurements under the 8(a) Program.

Item VIII--Extension of Small Business Competitiveness Demonstration 
Program (FAR Case 96-328)

    This final rule amends the FAR to implement Section 108, Title I 
(Amendments to Small Business Administration Act). Section 108 extends 
the Small Business Competitiveness Demonstration Program (15 U.S.C. 644 
note) until September 30, 1997.

Item IX--Morale, Health, Welfare Costs/Contractor Overhead 
Certification (FAR Case 92-613)

    This final rule amends the cost principle at FAR 31.205-1, Public 
Relations and Advertising Costs, by removing from paragraph (f)(5) the 
parenthetical reference to other cost principles to eliminate any 
confusion as to which cost principle governs.

Item X--Impairment of Long-Lived Assets (FAR Case 95-003)

    This final rule amends the FAR to clarify the cost allowability 
rules concerning the recognition of losses when carrying values of 
impaired assets are written down for financial reporting purposes.

Item XI--Local Government Lobbying Costs (FAR Case 96-003)

    This interim rule amends the FAR to make allowable the costs of 
lobbying activities to influence local legislation in order to directly 
reduce contract costs or to avoid material impairment of the 
contractor's authority to perform the contract.

Item XII--Clause Flowdown (FAR Case 92-035)

    This final rule amends the FAR by eliminating requirements for 
prime contractors to flow down clause provisions to their 
subcontractors or suppliers from FAR clauses 52.215-26, 52.216-5, 
52.216-6, 52.216-16, 52.216-17, 52.222-1, 52.236-21, 52.244-2(i), 
52.246-23, 52.246-24, and 52.246-25.

Item XIII--Collection of FASA-Related Information Within the Federal 
Procurement Data System (FAR Case 95-310)

    This final rule amends the FAR to change the Standard Form 279, 
Federal Procurement Data System (FPDS)--Individual Contract Action 
Report, and Standard Form 281, Federal Procurement Data System (FPDS)--
Summary Contract Action Report ($25,000 or Less), to incorporate new 
information categories required by the Federal Acquisition Streamlining 
Act of 1994.

    Dated: December 11, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 96-31999 Filed 12-19-96; 8:45 am]
BILLING CODE 6820-EP-P