[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64912-64913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31813]



[[Page 64911]]

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Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Chapter I



Federal Acquisition Regulations (FAR); Final Rules

  Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 / 
Rules and Regulations  

[[Page 64912]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter I


Federal Acquisition Circular 97-03; Introduction

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 summarizes the Federal Acquisition Regulation 
(FAR) rules issued by the Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council in this Federal Acquisition 
Circular (FAC) 97-03. Each rule follows this document in the order 
listed below. A companion document, the Small Entity Compliance Guide, 
follows this FAC and may be located on the Internet at http://
www.arnet.gov/far.

DATES: For effective dates and comment dates, see separate documents 
which follow.

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 4035, GS Building, 
Washington, DC 20405, 202) 501-4755. Please cite FAC 97-03 and specific 
FAR case number(s).

SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 97-03 amends 
the Federal Acquisition Regulation (FAR) as specified below:

------------------------------------------------------------------------
       Item               Subject           FAR case         Analyst    
------------------------------------------------------------------------
I................  Part 30 Deviations...       97-014  Nelson.          
II...............  Information                 96-319  Nelson.          
                    Technology                                          
                    Management Reform                                   
                    Act of 1996.                                        
III..............  Final Overhead              95-017  Klein.           
                    Settlement.                                         
IV...............  Reorganization of FAR       94-772  Linfield.        
                    Part 13, Simplified                                 
                    Acquisition                                         
                    Procedures.                                         
V................  Reporting Trade             97-021  Linfield.        
                    Sanction Exemptions.                                
VI...............  New Mexico Gross            97-018  Moss.            
                    Receipts and                                        
                    Compensating Tax.                                   
VII..............  Compensation of             96-325  Nelson.          
                    Certain Contractor                                  
                    Personnel.                                          
VIII.............  Independent Research        95-032  Nelson.          
                    and Development/Bid                                 
                    and Proposal Costs                                  
                    for Fiscal Year 1996                                
                    and Beyond.                                         
IX...............  Travel Reimbursement        97-007  Nelson.          
                    (Interim).                                          
X................  Protests to GAO......       97-009  O'Neill.         
XI...............  Novation and Related        95-034  Klein.           
                    Agreements.                                         
XII..............  Commercial Bills of         97-017  Klein.           
                    Lading, Small                                       
                    Package Shipments.                                  
XIII.............  Standard Form 1406,         96-022  Klein.           
                    Preaward Survey of                                  
                    Prospective                                         
                    Contractor--Quality                                 
                    Assurance.                                          
XIV..............  Technical Amendments.                                
------------------------------------------------------------------------

Item I--Part 30 Deviations (FAR Case 97-014)

    This final rule amends FAR 1.402 to remove the prohibition against 
authorizing deviations from FAR part 30, Cost Accounting Standards 
Administration, except for subsections 30.201-3 and 30.201-4, or the 
Cost Accounting Standards Board rules and regulations.

Item II--Information Technology Management Reform Act of 1996 (FAR Case 
96-319)

    The interim rule published as Item I of FAC 90-41 is converted to a 
final rule. This rule implements the Information Technology Management 
Reform Act of 1996 (Division E of Pub. L. 104-106). The final rule 
differs from the interim rule in that it makes a clarifying revision to 
paragraph (c) of the definition of ``information technology'' at FAR 
2.101.

Item III--Final Overhead Settlement (FAR Case 95-017)

    This final rule amends FAR parts 4, 42, and 52 to improve the 
process of final settlement of contractor indirect cost rates under 
cost-reimbursement contracts by (1) extending the time period within 
which a contractor must submit an indirect cost rate proposal from 90 
days to 6 months after the end of the contractor's fiscal year, (2) 
permitting extensions to the 6-month time period for exceptional 
circumstances only, and (3) providing a specific reference to the 
Defense Contract Audit Agency pamphlet that contains guidance on what 
generally constitutes an adequate final indirect cost rate proposal and 
supporting data.

Item IV--Reorganization of FAR Part 13, Simplified Acquisition 
Procedures (FAR Case 94-772)

    This final rule revises FAR part 13 to reorganize its contents in a 
more process-oriented manner and to emphasize the use of electronic 
contracting and the Governmentwide commercial purchase card. FAR part 
52 is amended to permit agency provisions and clauses to be 
incorporated by reference in solicitations and contracts, if the full 
text of the provisions and clauses may be accessed electronically by 
prospective contractors. A new clause is added at FAR 52.213-4 for use 
in simplified acquisitions; the clause is a compilation of the required 
and most commonly used clauses that apply to simplified acquisitions, 
and may be used in lieu of individual clauses prescribed in the FAR.

Item V--Reporting Trade Sanction Exemptions (FAR Case 97-021)

    This final rule amends FAR Subpart 25.10 to eliminate requirements 
for agencies to notify Congress when exercising the authority at FAR 
25.1002(c) for exemption of certain procurements from trade sanctions 
imposed by the President. The rule instead requires agencies to notify 
the United States Trade Representative of such exemptions within 30 
days after contract award.

Item VI--New Mexico Gross Receipts and Compensating Tax (FAR Case 97-
018)

    This final rule amends FAR 29.401-6 to identify the Defense Special 
Weapons Agency as an agency that has entered into an agreement with the 
State of New Mexico regarding taxation.

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

    The interim rule published as Item XI of FAC 90-45 is converted to 
a final rule with a minor clarifying amendment at FAR 31.205-6(p)(1). 
The rule implements Section 809 of the Fiscal

[[Page 64913]]

Year 1997 National Defense Authorization Act (Pub. L. 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 fiscal year 1997.

Item VIII--Independent Research and Development/Bid and Proposal Costs 
for Fiscal Year 1996 and Beyond (FAR Case 95-032)

    This final rule amends the cost principle at FAR 31.205-18, 
Independent Research and Development (IR&D) and Bid and Proposal (B&P) 
Costs, and deletes FAR subpart 42.10, Negotiating Advance Agreements 
for Independent Research and Development/Bid and Proposal Costs. The 
rule removes, for fiscal year 1996 and beyond, the requirements to 
calculate or negotiate a ceiling for IR&D/B&P costs. In addition, the 
rule clarifies that costs incurred in preparing, submitting, and 
supporting offers on potential cooperative arrangements are allowable 
to the extent they are allocable, reasonable, and not otherwise 
unallowable.

Item IX--Travel Reimbursement (FAR Case 97-007)

    This interim rule amends FAR 31.205-46 to raise, from $25 to $75, 
the maximum travel expense amount that contractor personnel may claim 
without providing a supporting receipt. This change is consistent with 
a recent amendment to the Federal Travel Regulation.

Item X--Protests to GAO (FAR Case 97-009)

    This final rule amends the protest procedures at FAR 33.101 and 
33.104 to conform with revisions made to the General Accounting Office 
Bid Protest Regulations.

Item XI--Novation and Related Agreements (FAR Case 95-034)

    This final rule amends FAR subpart 42.12 to expand and clarify 
procedures for processing novation agreements, and for determining when 
use of a novation agreement is appropriate.

Item XII--Commercial Bills of Lading, Small Package Shipments (FAR Case 
97-017)

    This final rule amends FAR 47.303-17 to raise the threshold for 
requiring receipted freight bills for small package shipments from $25 
to $100, and the maximum amount that the Government may pay for 
invoiced but unsupported transportation charges from $100 to $250. 
These increased amounts are considered to more accurately reflect 
shipping costs in today's business environment.

Item XIII--Standard Form 1406, Preaward Survey of Prospective 
Contractor--Quality Assurance (FAR Case 96-022)

    This final rule revises Standard Form 1406, Preaward Survey of 
Prospective Contractor--Quality Assurance, to delete references to 
canceled specifications, and to conform the language in the form to the 
current language in FAR part 46.

Item XIV--Technical Amendments

    This document makes technical corrections to FAR 1.201-1, 19.811-1, 
and 42.203. Standard Forms 33, 1435, 1436, and 1437 are reissued to 
reflect changes to internal references as a result of the rewrite of 
FAR part 15. Standard Form 279 is reissued to provide accounting for 
purchases under the commercial test.

    Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 97-03 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 97-03 is effective 
February 9, 1998, except for Items VI, IX, and XIV, which are effective 
December 9, 1997.

    Dated: November 22, 1997.
Eleanor R. Spector,
Director, Defense Procurement.
    Dated: November 28, 1997.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.
    Dated: November 18, 1997.
Tom Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics 
and Space Administration.
[FR Doc. 97-31813 Filed 12-8-97; 8:45 am]
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