[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67408-67409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32000]



[[Page 67407]]

_______________________________________________________________________

Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Chapter 1



Federal Acquisition Regulations; Final Rules

  Federal Register / Vol. 61, No. 246 / December 20, 1996 / Rules and 
Regulations  

[[Page 67408]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Federal Acquisition Circular 90-43]


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 and interim rules.

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

SUMMARY: This document serves to introduce and relate together the 
interim and final rule documents which follow and which comprise 
Federal Acquisition Circular (FAC) 90-43. The Civilian Agency 
Acquisition Council and the Defense Acquisition Regulations Council 
have agreed to issue FAC 90-43 to amend the Federal Acquisition 
Regulation (FAR) to implement changes in the areas listed below. All 
references, in this FAC, to the Federal Acquisition Reform Act of 1996 
(FARA) also include the Clinger/Cohen Act which FARA was subsequently 
named.

------------------------------------------------------------------------
     Item              Subject          FAR case          Analyst       
------------------------------------------------------------------------
I              FASA and the Walsh-        96-601  O'Neill.              
                Healey Public                                           
                Contracts Act                                           
                (Interim).                                              
II             Individual and Class       96-004  O'Neill.              
                Deviations.                                             
III            Use of Data Universal      95-307  Klein.                
                Numbering System as                                     
                Primary Contractor                                      
                Identification                                          
                (Interim).                                              
IV             Inapplicability of         96-310  Olson.                
                Cost Accounting                                         
                Standards to                                            
                Contracts and                                           
                Subcontracts for                                        
                Commercial Items.                                       
V              Allowable Cost and         93-024  Olson.                
                Payment Clause.                                         
VI             Mentor/Protege Program     93-308  Klein.                
VII            Minority Small             95-028  Klein.                
                Business and Capital                                    
                Ownership (Interim).                                    
VIII           Extension of Small         96-328  Moss.                 
                Business                                                
                Competitiveness                                         
                Demonstration Program.                                  
IX             Morale, Health,            92-613  Olson.                
                Welfare Costs/                                          
                Contractor Overhead                                     
                Certification.                                          
X              Impairment of Long-        95-003  Olson.                
                Lived Assets.                                           
XI             Local Government           96-003  Olson.                
                Lobbying Costs                                          
                (Interim).                                              
XII            Clause Flowdown.......     92-035  Olson.                
XIII           Collection of FASA-        95-310  Klein.                
                Related Information                                     
                within the Federal                                      
                Procurement Data                                        
                System.                                                 
XIV            Technical Amendments..        N/A  N/A.                  
------------------------------------------------------------------------

DATES: For effective dates and comment dates, see individual documents 
which appear elsewhere in this separate part.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in 
relation to each FAR case or subject area. For general information, 
contact the FAR Secretariat, Room 4035, GS Building, Washington, DC, 
20405 (202) 501-4755. Please cite FAC 90-43 and FAR case number(s).

SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-43 amends 
the Federal Acquisition Regulation (FAR) as specified below:

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--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.

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 (Pub. L. 104-106) (formerly 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.

[[Page 67409]]

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 FAR Subpart 19.10 to implement Section 108, 
Title I (Amendments to Small Business Administration Act), of the 
National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-
208). 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.

Item XIV--Technical Amendments

    These technical amendments have been made to correct typographical 
errors, FAR citations, and clause dates.

    Dated: December 11, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

Number 90-43

    Federal Acquisition Circular (FAC) 90-43 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.
    FAR cases 96-601, 93-308, 95-307, 96-328, 95-310, 95-028 and 96-003 
are effective December 20, 1996. FAR case 96-310 is effective January 
1, 1997. FAR cases 96-004, 93-024, 92-613, 95-003 and 92-035 are 
effective February 18, 1997.

    Dated: December 10, 1996.
Eleanor R. Spector,
Director, Defense Procurement.
    Dated: December 10, 1996.
Ada M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy.
    Dated: December 10, 1996.
Tom Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics 
and Space Administration.
[FR Doc. 96-32000 Filed 12-19-96; 8:45 am]
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