[Federal Register Volume 63, Number 119 (Monday, June 22, 1998)]
[Rules and Regulations]
[Pages 34058-34059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16111]

[[Page 34057]]


Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Chapter 1

Federal Acquisition Regulation (FAR); Final Rule

Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 / Rules 
and Regulations

[[Page 34058]]





48 CFR Chapter 1

Federal Acquisition Circular 97-05; 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, and technical 
amendments and corrections.


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) 97-05. A companion document, the Small Entity Compliance 
Guide (SECG), follows this FAC. The FAC, including the SECG, may be 
located on the Internet at http://www.arnet.gov/far.

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

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 97-05 and 
specific FAR case number(s). Interested parties may also visit our 
website at http://www.arnet.gov/far.

     Item             Subject            FAR case           Analyst     
I............  Subcontract Consent.           95-011  Klein.            
II...........  Availability of                97-034  DeStefano.        
III..........  Liquidated Damages..    89-042/97-300  Moss.             
IV...........  Limits on Fee for              97-042  DeStefano.        
                Fee and Cost-Plus-                                      
                Award-Fee Contracts.                                    
V............  Rehabilitation Act,            96-610  O'Neill.          
                Workers With                                            
VI...........  Trade Agreements               97-044  Linfield.         
VII..........  Restrictions on                97-301  Linfield.         
                Purchases from                                          
VIII.........  Software Copyrights.           97-614  O'Neill.          
IX...........  Travel Reimbursement           97-007  Nelson.           
X............  No-Cost Value                  96-011  Klein.            
                Engineering Change                                      
                Proposals (Interim).                                    
XI...........  Technical                                                
XII..........  Availability of FAR                                      
                via Internet.                                           

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 97-05 amends the Federal Acquisition 
Regulation (FAR) as specified below:

Item I--Subcontract Consent (FAR Case 95-011)

    This final rule amends FAR Parts 4, 22, 35, 36, 44, and 52 to 
reduce requirements for consent to subcontract. The rule eliminates 
consent requirements for contractors that have an approved purchasing 
system, except when specific contracts requiring consent are identified 
by the contracting officer; eliminates consent requirements for fixed-
price incentive contracts and fixed-price redeterminable contracts; and 
increases, to the simplified acquisition threshold, the dollar level at 
which consent requirements are included in time-and-materials, labor-
hour, and letter contracts.

Item II--Availability of Specifications (FAR Case 97-034)

    This final rule amends FAR Parts 9 and 11 and the provisions at 
52.211-1, 52.211-2, and 52.212-1 to update addresses and other 
information regarding the availability of specifications, standards, 
and item descriptions that may be cited in Government solicitations and 
contracts. In addition, the rule clarifies the pricing policy regarding 
specifications, standards, and commercial item descriptions issued by 

Item III--Liquidated Damages (FAR Cases 89-042 and 97-300)

    This final rule amends FAR Parts 11, 19, 52, and 53 to clarify 
policy on liquidated damages and commercial subcontracting plans 
pertaining to requirements for subcontracting with small, small 
disadvantaged, and women-owned small business concerns. The rule 
implements Section 304 of the Business Opportunity Development Reform 
Act of 1988 (Pub. L. 100-656) and OFPP Policy Letter 95-1, 
Subcontracting Plans for Companies Supplying Commercial Items. The 
interim rule published in FAC 84-50, FAR case 89-042, 54 FR 30708, July 
21, 1989, has been merged with this final rule.

Item IV--Limits on Fee for Cost-Plus-Incentive-Fee and Cost-Plus-
Award-Fee Contracts (FAR Case 97-042)

    This final rule amends FAR Part 16 to clarify fee limitations 
pertaining to cost-reimbursement contracts. The FAR Part 15 rewrite in 
FAC 97-02 eliminated non-statutory fee limitations for cost-plus-
incentive-fee and cost-plus-award-fee contracts. This final rule makes 
conforming changes to FAR Part 16.

Item V--Rehabilitation Act, Workers With Disabilities (FAR Case 96-

    This interim rule amends FAR Subpart 22.14 and the clauses at 
52.212-5 and 52.222-36 to implement revised Department of Labor 
regulations regarding affirmative action to employ and advance in 
employment qualified individuals with disabilities. The dollar 
threshold for use of the clause at 52.222-36 has been increased from 
$2,500 to $10,000.

Item VI--Trade Agreements Thresholds (FAR Case 97-044)

    This final rule amends FAR Part 25 to implement revised thresholds 
for application of the Trade Agreements Act and the North American Free 
Trade Agreement, as published by the Office of the United States Trade 
Representative in the Federal Register on January 14, 1998 (63 FR 

Item VII--Restrictions on Purchases from Sudan (FAR Case 97-301)

    This final rule amends FAR 25.701 and the clause at 52.225-11 to 
add Sudan to the list of countries whose products are banned from 
importation into the United States. This rule implements Executive 
Order 13067, dated November 3, 997.

[[Page 34059]]

Item VIII--Software Copyrights (FAR Case 97-614)

    This final rule amends FAR 27.405 to add contracts for certain 
computer software programs to the list of examples of contracts for 
special works to which the Government may obtain copyrights.

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

    The interim rule published as Item IX of FAC 97-03 is converted to 
a final rule without change. The rule amends FAR 31.205-46 to increase 
from $25.00 to $75.00 the threshold at which contractor personnel must 
provide a receipt to support travel expenditures.

Item X--No-Cost Value Engineering Change Proposals (FAR Case 96-

    This interim rule revises FAR 48.104-3 to clarify that no-cost 
value engineering change proposals (VECPs) may be used when, in the 
contracting officer's judgment, reliance on other VECP approaches 
likely would not be more cost-effective, and the no-cost settlement 
would provide adequate consideration to the Government.

Item XI--Technical Amendments

    Amendments are being made at FAR 5.201(b)(2), 8.404(a), 31.002, and 
45.607-2(b) to update references and make editorial changes.

Item XII--Availability of FAR via Internet

    The FAR, along with Federal Acquisition Circulars and other 
informational items, is available on the Internet at http://

    Dated: June 11, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
June 22, 1998.
    Federal Acquisition Circular (FAC) 97-05 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 97-05 are effective 
August 21, 1998, except for Items V, X, and XI, which are effective 
June 22, 1998.

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

    Dated: June 11, 1998.
Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.

    Dated: June 10, 1998.
Tom Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics 
and Space Administration.
[FR Doc. 98-16111 Filed 6-19-98; 8:45 am]