[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 9048-9049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4290]



[[Page 9047]]

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Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Chapter 1 et al.



Federal Acquisition Regulations (FAR); Final Rules

  Federal Register / Vol. 63, No. 35 / Monday, February 23, 1998 / 
Rules and Regulations  

[[Page 9048]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 97-04; Introduction

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

ACTION: Summary presentation of final rules, interim rules, and 
technical amendments and corrections.

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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) 97-04. 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 FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact the analyst whose name appears in the table below in 
relation to each FAR case or subject area. Please cite FAC 97-04 and 
specific FAR case number(s).

------------------------------------------------------------------------
     Item               Subject             FAR case         Analyst    
------------------------------------------------------------------------
I.............  Use of Data Universal   95-307           Moss.          
                 Numbering System as                                    
                 the Primary                                            
                 Contractor                                             
                 Identification.                                        
II............  Federal Compliance      92-054B          Linfield.      
                 With Right-To-Know                                     
                 Laws and Pollution                                     
                 Prevention                                             
                 Requirements.                                          
III...........  Review of Procurement   97-601           Linfield.      
                 Integrity Clauses.                                     
IV............  Certificate of          96-002           Moss.          
                 Competency.                                            
V.............  Applicability of Cost   97-020           Nelson.        
                 Accounting Standards                                   
                 (CAS) Coverage.                                        
VI............  OMB Circular No. A-133  97-029           Olson.         
VII...........  SIC Code and Size       97-026           Moss.          
                 Standard Appeals.                                      
VIII..........  Small Business          97-305           Moss.          
                 Competitiveness                                        
                 Demonstration Program.                                 
IX............  Special Disabled and    95-602           O'Neill.       
                 Vietnam Era Veterans.                                  
X.............  Treatment of Caribbean  97-039           Linfield.      
                 Basin Country End                                      
                 Products.                                              
XI............  Administrative Changes  97-025           Nelson.        
                 to Cost Accounting                                     
                 Standards (CAS)                                        
                 Applicability.                                         
XII...........  Changes in Contract     95-022           Klein.         
                 Administration and                                     
                 Audit Cognizance.                                      
XIII..........  Limitation on           97-303           Nelson.        
                 Allowability of                                        
                 Compensation for                                       
                 Certain Contractor                                     
                 Personnel (Interim).                                   
XIV...........  Transfer of Assets      96-006           Nelson.        
                 Following a Business                                   
                 Combination.                                           
XV............  Modular Contracting...  96-605           Nelson.        
XVI...........  Technical Amendments..  ...............  ...............
------------------------------------------------------------------------

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. 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.
    Federal Acquisition Circular 97-04 amends the Federal Acquisition 
Regulation (FAR) as specified below:

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

    This final rule amends FAR Subpart 4.6, Contract Reporting, and 
52.212-1, Instructions to Offerors--Commercial Items; and adds a new 
solicitation provision at 52.204-6, Data Universal Numbering System 
(DUNS) Number; to replace the Contractor Establishment Code (CEC) with 
the Data Universal Numbering System (DUNS) number as the means of 
identifying contractors in the Federal Procurement Data System (FPDS). 
It reflects Dun and Bradstreet procedures for offerors located 
overseas.

Item II--Federal Compliance With Right-To-Know Laws and Pollution 
Prevention Requirements (FAR Case 92-054B)

    The interim rule published as Item V of FAC 90-46 is revised and 
finalized. The rule implements Executive Order 12856 of August 3, 1993, 
``Federal Compliance With Right-To-Know Laws and Pollution Prevention 
Requirements.'' The final rule differs from the interim rule in that it 
amends FAR 23.1004 and 52.223-5 to clarify the obligations of Federal 
facilities to comply with the reporting and emergency planning 
requirements of the Pollution Prevention Act of 1990 and the Emergency 
Planning and Community Right-to-Know Act of 1986.

Item III--Review of Procurement Integrity Clauses (FAR Case 97-601)

    This final rule amends FAR Parts 4 and 52 to revise the application 
of procurement integrity requirements to contracts for commercial 
items. The rule amends (1) 4.803 to remove an obsolete requirement for 
maintenance of a record of persons having access to proprietary or 
source selection information, (2) the clause at 52.212-4 to add the 
procurement integrity provisions of 41 U.S.C. 423 to the list of laws 
applicable to contracts for commercial items, and (3) the clause at 
52.212-5 to remove 52.203-10, Price or Fee Adjustment for Illegal or 
Improper Activity, from the list of FAR clauses required to implement 
provisions of law or Executive orders. As amended by the Clinger-Cohen 
Act of 1996, 41 U.S.C. 423 no longer requires that a contract clause 
specify administrative remedies for procurement integrity violations.

Item IV--Certificate of Competency (FAR Case 96-002)

    The interim rule published as Item IX of FAC 97-01 is converted to 
a final rule with a minor change at 19.302(d). The rule implements 
revisions made to the Small Business Administration's procurement 
assistance programs contained in 13 CFR Part 125.

Item V--Applicability of Cost Accounting Standards (CAS) Coverage (FAR 
Case 97-020)

    This final rule amends FAR Parts 12 and 52 to exempt contracts and 
subcontracts for the acquisition of commercial items from Cost 
Accounting Standards requirements when these contracts and subcontracts 
are firm-fixed-price or fixed-price with economic price adjustment 
(provided that the

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price adjustment is not based on actual costs incurred).

Item VI--OMB Circular No. A-133 (FAR Case 97-029)

    This final rule amends FAR 15.209 and the associated clause at 
52.215-2, Audits and Records--Negotiation, Alternate II, to implement 
revisions to OMB Circular No. A-133. The circular has a new title, 
``Audits of States, Local Governments, and Non-Profit Organizations,'' 
and now addresses audits of State and local governments as well as 
audits of institutions of higher learning and other nonprofit 
organizations.

Item VII--SIC Code and Size Standard Appeals (FAR Case 97-026)

    This final rule amends FAR Subpart 19.3 to conform to the Small 
Business Administration regulations at 13 CFR 121 and 134 pertaining to 
protest of an offeror's small business representation, and appeal of a 
contracting officer's standard industrial classification code 
designation and related small business size standard.

Item VIII--Small Business Competitiveness Demonstration Program (FAR 
Case 97-305)

    This final rule amends FAR Subpart 19.10 to eliminate the 
termination date of the Small Business Competitiveness Demonstration 
Program, in accordance with Section 401 of the Small Business 
Reauthorization Act of 1997 (Public Law 105-135).

Item IX--Special Disabled and Vietnam Era Veterans (FAR Case 95-
602)

    This final rule amends FAR Subpart 22.13 and the clauses at 52.212-
5, 52.222-35, and 52.222-37 to implement revised Department of Labor 
regulations regarding affirmative action for disabled veterans and 
veterans of the Vietnam era.

Item X--Treatment of Caribbean Basin Country End Products (FAR Case 97-
039)

    This final rule revises FAR 25.402(b) to extend the time period for 
treatment of Caribbean Basin country end products as eligible products 
under the Trade Agreements Act. The United States Trade Representative 
has directed that such treatment continue through September 30, 1998.

Item XI--Administrative Changes to Cost Accounting Standards (CAS) 
Applicability (FAR Case 97-025)

    This final rule amends FAR 30.101 and the clauses at 52.230-1 and 
52.230-5 to conform to changes made to the Cost Accounting Standards 
(CAS) Board rules and regulations (FAR Appendix), pertaining to the 
applicability of CAS to negotiated contracts and subcontracts.

Item XII--Changes in Contract Administration and Audit Cognizance (FAR 
Case 95-022)

    This final rule amends FAR Parts 31, 32, 42, 46, 47, and 52 to add 
policies and procedures for assigning and performing contract audit 
services, and to clarify the policy for assigning or delegating 
responsibility for establishing forward pricing and billing rates and 
final indirect cost rates.

Item XIII--Limitation on Allowability of Compensation for Certain 
Contractor Personnel (FAR Case 97-303)

    This interim rule revises FAR 31.205-6(p) to implement Section 808 
of the National Defense Authorization Act for Fiscal Year 1998 (Public 
Law 105-85). Section 808 limits the allowable compensation costs for 
senior executives of contractors to the benchmark compensation amount 
determined applicable for each fiscal year by the Administrator for 
Federal Procurement Policy.

Item XIV--Transfer of Assets Following a Business Combination (FAR Case 
96-006)

    This final rule revises FAR 31.205-10(a)(5) and 31.205-52 to 
conform to changes made to the Cost Accounting Standards regarding the 
treatment of gains and losses attributable to tangible capital assets 
subsequent to business mergers or combinations.

Item XV--Modular Contracting (FAR Case 96-605)

    This final rule amends FAR Part 39 to implement Section 5202 of the 
Information Technology Management Reform Act of 1996 (Public Law 104-
106). Section 5202 encourages maximum practicable use of modular 
contracting for acquisition of major systems of information technology. 
Agencies may also use modular contracting to acquire non-major systems 
of information technology.

Item XVI--Technical Amendments

    Amendments are being made at FAR 1.201-1(b)(2), 44.204(b), and 
52.219-1(b)(2) and (b)(3) to update references and make editorial 
changes.

    Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

FAC 97-04
[Date]
    Federal Acquisition Circular (FAC) 97-04 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 97-04 are effective 
April 24, 1998, except for Items VIII, X, XIII, and XVI, which are 
effective February 23, 1998.

    Dated: February 11, 1998.
Eleanor R. Spector,
Director, Defense Procurement.

    Dated: February 12, 1998.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.

    Dated: February 12, 1998.
Deidre A. Lee,
Associate Administrator for Procurement, National Aeronautics and Space 
Administration.
[FR Doc. 98-4290 Filed 2-20-98; 8:45 am]
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