[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.
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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.
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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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