[Federal Register Volume 62, Number 1 (Thursday, January 2, 1997)]
[Rules and Regulations]
[Pages 275-276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33220]


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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: Small Entity Compliance Guide.

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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 rules appearing in Federal 
Acquisition Circular (FAC) 90-45 which amend the FAR. The rules marked 
with an asterisk (*) are those for which a final regulatory flexibility 
analysis has been prepared in accordance with 5 U.S.C. 604. Further 
information regarding these rules may be obtained by referring to FAC 
90-45 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.

SUPPLEMENTARY INFORMATION: 

                                           List of Rules in FAC 90-45                                           
----------------------------------------------------------------------------------------------------------------
                 Item                               Subject                 FAR case            Analyst         
----------------------------------------------------------------------------------------------------------------
I*...................................  Procurement Integrity............       96-314  Linfield.                
II *.................................  Certification Requirements.......       96-312  O'Neill.                 
III..................................  Humanitarian Operations..........       96-323  Linfield.                
IV...................................  Freedom of Information Act.......       96-326  O'Neill.                 
V....................................  Exceptions to Requirements for          96-306  Olson.                   
                                        Certified Cost or Pricing Data.                                         
VI *.................................  Implementation of the North             93-310  Linfield                 
                                        American Free Trade Agreement                                           
                                        Implementation Act.                                                     
VII *................................  Application of Special Simplified       96-307  Moss.                    
                                        Procedures to Certain Commercial                                        
                                        Items.                                                                  
VIII.................................  Compliance with Immigration and         96-320  Linfield.                
                                        Nationality Act Provisions.                                             
IX...................................  Caribbean Basin and Designated          96-017  Linfield.                
                                        Countries.                                                              
X....................................  Caribbean Basin Country End             96-020  Linfield.                
                                        Products--Renewal of Treatment                                          
                                        as Eligible.                                                            
XI...................................  Compensation of Certain                 96-325  DeStefano.               
                                        Contractor Personnel (Interim).                                         
 XII *...............................  Agency Procurement Protests......       95-309  O'Neill.                 
XIII *...............................  Two-Phase Design Build Selection        96-305  O'Neill.                 
                                        Procedures.                                                             
XIV..................................  Year 2000 Compliance (Interim)...       96-607  O'Neill.                 
XV...................................  Limitation on Indirect Cost             96-324  Olson.                   
                                        Audits.                                                                 
----------------------------------------------------------------------------------------------------------------

Item I--Procurement Integrity (FAR Case 96-314)

    This final rule amends the FAR to implement the procurement 
integrity provisions of Section 27 of the Office of Federal Procurement 
Policy (OFPP) Act, as amended by Section 4304 of the 1996 National 
Defense Authorization Act. Section 4304 is part of the Clinger-Cohen 
Act of 1996. Section 3.104 is rewritten. Unlike the previous statute, 
some of the post-employment restrictions in the rewritten 3.104 apply 
to post-award activities. The final rule eliminates all of the 
procurement integrity certifications required by the previous statute.
    The final rule makes other significant changes. The new post-
employment restrictions apply to services provided or decisions made on 
or after January 1, 1997; the old restrictions apply for former 
officials whose employment ended before January 1, 1997. The clause at 
52.203-10 is revised. The clauses at 52.203-9 and 52.203-13, and the 
Optional Form 333 at 53.202-1, are removed. The solicitation provision 
at 52.203-8 is replaced with a new clause to provide the means to void 
or rescind contracts where there has been a violation of the 
procurement integrity restrictions.

Item II--Certification Requirements (FAR Case 96-312)

    This final rule amends FAR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19, 
23, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52, and 53 to remove 
certain certification requirements for contractors and offerors that 
are not specifically required by statute. The rule implements Section 
4301(b) of the Clinger-Cohen Act of 1996 (Public Law 104-106).

Item III--Humanitarian Operations (FAR Case 96-323)

    This final rule amends the definition of ``simplified acquisition 
threshold'' at FAR 2.101 to increase the threshold to $200,000 for 
contracts to be awarded and performed, or purchases to be made, outside 
the United States in support of a humanitarian or peacekeeping 
operation. The rule implements 10 U.S.C. 2302(7) and 41 U.S.C. 259(d) 
as amended by Section 807 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201).

Item IV--Freedom of Information Act (FAR Case 96-326)

    This final rule amends FAR Subpart 24.2 to implement Section 821 of 
the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201). Section 821 prohibits, with certain exceptions, Government 
release of competitive proposals under the Freedom of Information Act.

Item V--Exceptions to Requirements for Certified Cost or Pricing 
Data (FAR Case 96-306)

    This final rule implements Section 4201 of the Clinger-Cohen Act of 
1996 (Public Law 104-106). Section 4201: (1) Exempts suppliers of 
commercial items under Federal contracts from the requirement to submit 
costs or pricing

[[Page 276]]

data; (2) provides for the submission of information other than cost or 
pricing data to the extent necessary to determine price reasonableness; 
and (3) removes specific audit authorities pertaining to information 
provided by commercial suppliers. Accordingly, FAR 15.8, 52.215-26, 
52.215-41, and 52.215-42 are amended to revise requirements pertaining 
to the submission of information relating to commercial items; FAR 
52.215-43 is removed; and other associated changes are made in FAR 
Parts 4, 12, 15, 16, 25, 31, 46, and 52.

Item VI--Implementation of the North American Free Trade Agreement 
Implementation Act (FAR Case 93-310)

    The interim rule published as FAC 90-19 and amended by FAC 90-39 is 
converted to a final rule with changes. The final rule amends FAR Part 
25. The final rule revisions result from public comments received on 
FAR Case 96-312 published as Item II in this FAC. Upon consideration of 
those public comments, certifications eliminated under the interim rule 
published in FAC 90-39 were reinstated.

Item VII--Application of Special Simplified Procedures to Certain 
Commercial Items (FAR Case 96-307)

    This final rule amends FAR Parts 5, 6, 11, 12, and 13 to implement 
section 4202 of the Clinger-Cohen Act of 1996 (Public Law 104-106). 
Section 4202 requires revisions to the FAR to incorporate special 
simplified procedures for the acquisition of certain commercial items 
with a value greater than the simplified acquisition threshold 
($100,000) but not greater than $5 million. The purpose of this 
revision is to vest contracting officers with additional procedural 
discretion and flexibility, so that commercial item acquisitions in 
this dollar range may be solicited, offered, evaluated, and awarded in 
a simplified manner that maximizes efficiency and economy and minimizes 
burden and administrative costs for both the Government and industry.

Item VIII--Compliance With Immigration and Nationality Act 
Provisions (FAR Case 96-320)

    The interim rule published as Item II of FAC 90-41 is converted to 
a final rule without change. The final rule amends FAR 9.406 to specify 
that a contractor may be debarred upon a determination by the Attorney 
General that the contractor is not in compliance with the employment 
provisions of the Immigration and Nationality Act. The rule implements 
Executive Order 12989, Economy and Efficiency in Government Procurement 
Through Compliance With Certain Immigration and Naturalization Act 
Provisions.

Item IX--Caribbean Basin and Designated Countries (FAR Case 96-017)

    This final rule amends FAR 25.401 to update the lists of countries 
included in the definitions of ``Caribbean Basin country'' and 
``Designated country''.

Item X--Caribbean Basin Country End Products--Renewal of Treatment 
as Eligible (FAR Case 96-020)

    This final rule amends FAR 25.402(b) to implement the extension by 
the U.S. Trade Representative of the date of eligibility under the 
Trade Agreements Act for products of Caribbean Basin countries.

Item XI--Compensation of Certain Contractor Personnel (FAR Case 96-
325)

    This interim rule adds a new requirement at FAR 31.205-6(p) to 
implement Section 809 of the Fiscal Year (FY) 1997 National Defense 
Authorization Act (Public Law 104-201). Section 809 places a 
Governmentwide ceiling of $250,000 per year on allowable compensation 
costs for contractor personnel in senior management positions under 
contracts awarded during FY 1997.

Item XII--Agency Procurement Protests (FAR Case 95-309)

    The interim rule published as Item XIII of FAC 90-40 is revised and 
finalized. The rule amends FAR 33.103 to implement Executive Order 
12979, Agency Procurement Protests. Executive Order 12979 provides for 
inexpensive, informal, procedurally simple, and expeditious resolution 
of agency protests, including the use of alternative dispute resolution 
techniques, third party neutrals, and another agency's personnel.

Item XIII--Two-Phase Design-Build Selection Procedures (FAR Case 
96-305)

    This final rule amends FAR Part 36 to implement Section 4105 of the 
Clinger-Cohen Act of 1996 (Public Law 104-106), which authorizes the 
use of two-phase design-build procedures for construction contracting. 
Two phase design-build construction contracting provides for the 
selection of a limited number of offerors (normally five or fewer), 
during Phase One of the solicitation process, to submit detailed 
proposals for Phase Two.

Item XIV--Year 2000 Compliance (FAR Case 96-607)

    This interim rule amends FAR Part 39 to increase awareness of Year 
2000 procurement issues and to ensure that solicitations and contracts 
address Year 2000 issues.

Item XV--Limitation on Indirect Cost Audits (FAR Case 96-324)

    This final rule amends FAR Part 42 to implement Section 808 of the 
FY 97 National Defense Authorization Act (Public Law 104-201). Section 
808 amends 10 U.S.C. 2313(d) and 41 U.S.C. 254d(d) to expand required 
audit reciprocity among Federal agencies to include post-award audits. 
10 U.S.C. 2313(d) and 41 U.S.C. 254d(d) were added by the Federal 
Acquisition Streamlining Act of 1994, Sections 2201(a)(1) and 2251(a) 
of Public Law 103-355, to include reciprocity on pre-award audits.

    Dated: December 24, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 96-33220 Filed 12-31-96; 8:45 am]
BILLING CODE 6820-EP-P