[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 9069-9071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4308]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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 the rules appearing in 
Federal Acquisition Circular (FAC) 97-04 which amends 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 97-04 which precedes this document. This document 
may be obtained from the Internet at http://www.arnet.gov/far.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, (202) 501-4755. 
For clarification of content, contact the analyst whose name appears in 
the table below.

                       List of Rules in FAC 97-04                       
------------------------------------------------------------------------
     Item               Subject             FAR case         Analyst    
------------------------------------------------------------------------
I.............  Use of Data Universal   95-307           Moss.          
                 Numbering System as                                    
                 the Primary                                            
                 Contractor                                             
                 Identification.                                        

[[Page 9070]]

                                                                        
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.        
------------------------------------------------------------------------

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 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.

[[Page 9071]]

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.

    Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 98-4308 Filed 2-20-98; 8:45 am]
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