[Federal Register Volume 63, Number 210 (Friday, October 30, 1998)]
[Rules and Regulations]
[Pages 58586-58587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28954]



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Part V





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1, et al.



Federal Acquisition Regulations; Final Rules

  Federal Register / Vol. 63, No. 210 / Friday, October 30, 1998 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 97-09; Introduction

AGENCIES: Department of Defense (DoD), General ServicesAdministration 
(GSA), and National Aeronautics and SpaceAdministration (NASA).

ACTION: Summary presentation of final and 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) 97-09. 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.

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 97-09 and 
specific FAR case number(s). Interested parties may also visit our 
website at http://www.arnet.gov/far.

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                  Item                                 Subject               FAR case            Analyst
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I.......................................  Taxpayer Identification Numbers       97-003  Olson.
                                           (Interim).
II......................................  Electronic Commerce in Federal        97-304  Nelson.
                                           Procurement (Interim).
III.....................................  Alternate Dispute Resolution--        97-015  O'Neill.
                                           1996.
IV......................................  Pay-As-You-Go Pension Costs.....      89-012  Olson.
V.......................................  Rehabilitation Act, Workers With      96-610  O'Neill.
                                           Disabilities.
VI......................................  Civil Defense Costs.............      97-036  Nelson.
VII.....................................  Costs Related to Legal/Other          95-020  Nelson.
                                           Proceedings.
VIII....................................  Service Contracts...............      97-302  Olson.
IX......................................  Payment Due Dates...............      97-609  Olson.
X.......................................  Technical Amendments............
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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 97-09 amends the Federal Acquisition 
Regulation (FAR) as specified below:

Item I--Taxpayer Identification Numbers (FAR Case 97-003)

    This interim rule amends FAR Parts 1, 4, 13, 14, 15, and 52 to 
implement Subsection (i) of the Debt Collection Improvement Act of 1996 
(Pub. L. 104-134) and Section 1022 of the Taxpayer Relief Act of 1997 
(Pub. L. 105-32). The rule clarifies requirements for obtaining 
Taxpayer Identification Number (TIN) information from contractors and 
forwarding the information to payment offices; specifies that TIN 
information may be used by the Government to collect and report on any 
delinquent amounts arising out of the contractor's relationship with 
the Government; and clarifies and updates requirements for reporting 
contract information and payment information to the Internal Revenue 
Service.
    (Orders under Federal Supply Schedule (FSS) contracts. Ordering 
officials are required to provide the FSS contractor's TIN (and other 
information) to the payment office for each order under an FSS 
contract. The General Services Administration is planning to establish 
an Internet based system by early 1999 that can be used by ordering 
officials to obtain this information. In the meantime, the information 
can be obtained from most FSS contract price lists or by requesting it 
directly from the FSS contractor prior to placing an order.)

Item II--Electronic Commerce in Federal Procurement (FAR Case 97-
304)

    This interim rule revises FAR Subpart 4.5 and makes associated 
changes to FAR Parts 2, 5, 13, and 14, to implement Section 850 of the 
National Defense Authorization Act for Fiscal Year 1998 (Pub. L. 105-
85) to eliminate the preference for electronic commerce within Federal 
agencies to be conducted on the Federal Acquisition Computer Network 
(FACNET) Architecture. In addition, this interim rule promotes the use 
of cost-effective procedures and processes that employ electronic 
commerce in the conduct and administration of Federal procurement 
systems. In order to facilitate access to Federal procurements, Section 
850 mandates that a single Governmentwide point of entry be used. Once 
the Administrator of the Office of Federal Procurement Policy (OFPP) 
designates the single Governmentwide point of entry, the FAR will be 
changed accordingly. FACNET qualifies as the single, Governmentwide 
point of entry until the Administrator of OFPP designates the single, 
Governmentwide point of entry. Federal procurement systems that employ 
electronic commerce shall apply nationally and internationally 
recognized standards that broaden interoperability and ease the 
electronic interchange of information.

Item III--Alternative Dispute Resolution--1996 (FAR Case 97-015)

    This final rule amends FAR 6.302-3, 24.202, 33.2, and the clause at 
52.233-1 to implement the Administrative Dispute Resolution Act of 1996 
(Pub. L. 104-320) and Section 4321(a)(7) of the Clinger-Cohen Act of 
1996 (Pub. L. 104-106). The rule makes clear the authority to contract 
with a neutral person as an exception to requirements for full and open 
competition; revises requirements for certification of a claim under 
the Administrative Dispute Resolution Act to conform to the 
requirements under the Contract Disputes Act; and specifies that 
certain dispute resolution communications are exempt from disclosure 
under the Freedom of Information Act.

Item IV--Pay-As-You-Go Pension Costs (FAR Case 89-012)

    The interim rule published as Item I of FAC 84-44 is converted to a 
final rule with amendments at FAR 15.408, 31.001, 31.205-6, and the 
clause at 52.215-15. The rule amends the FAR for

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consistency with 48 CFR 9904.412, Cost accounting standard for 
composition and measurement of pension cost (CAS 412), and 48 CFR 
9904.413, Adjustment and allocation of pension cost (CAS 413). CAS 412 
and CAS 413 relate to accounting for pension costs under negotiated 
Government contracts.

Item V--Rehabilitation Act, Workers With Disabilities (FAR Case 96-
610)

    The interim rule published as Item V of FAC 97-05 is converted to a 
final rule without change. The rule implements Department of Labor 
regulations at 41 CFR 60-741 regarding affirmative action to employ, 
and advance in employment, qualified individuals with disabilities.

Item VI--Civil Defense Costs (FAR Case 97-036)

    This final rule deletes the civil defense cost principle at FAR 
31.205-5, as this guidance is no longer deemed necessary. The 
acceptability of civil defense costs will remain governed by the 
allocability, allowability, and reasonableness criteria discussed in 
FAR Part 31.

Item VII--Costs Related to Legal/Other Proceedings (FAR Case 95-
020)

    This final rule amends FAR 31.205-47, Costs related to legal and 
other proceedings, to clarify the allowability of costs incurred for 
qui tam suits in which the Government does not intervene. This rule is 
consistent with audit guidance issued by the Defense Contract Audit 
Agency on August 24, 1995. Certain Government contracting personnel and 
contractors may have had common misinterpretations of the language at 
FAR 31.205-47 prior to August 24, 1995. For qui tam legal fees incurred 
prior to August 24, 1995, if the Government contracting personnel and 
the contractor shared a common misinterpretation of the language at FAR 
31.205-47, the contracting officer, in consultation with his or her 
legal advisors, should determine the appropriate treatment of those 
costs on a case-by-case basis.

Item VIII--Service Contracts (FAR Case 97-302)

    This final rule revises FAR 32.703-3 and amends 37.106 to implement 
Section 801 of the National Defense Authorization Act for Fiscal Year 
1998 (Pub. L. 105-85). Section 801 provides that the Secretary of 
Defense, the Secretary of a military department, or the Secretary of 
Transportation with respect to the Coast Guard, when it is not 
operating as a service in the Navy, may enter into a contract for 
procurement of severable services for a period that begins in one 
fiscal year and ends in the next fiscal year. This authority remains 
the same for civilian agencies other than NASA.

Item IX--Payment Due Dates (FAR Case 97-609)

    This final rule amends FAR Subpart 32.9 to clarify that agencies 
may amend the clauses at FAR 52.232-25, Prompt Payment, and 52.232-26, 
Prompt Payment for Fixed-Price Architect-Engineer Contracts, to specify 
a period shorter than 30 days (but not less than 7 days) for making 
contract invoice payments.

Item X--Technical Amendments

    Amendments are being made at sections 1.106, 6.302-3, 14.205-1, 
14.407-4, 15.404-1, 19.102, 19.1004, 32.705-1, 33.104, 36.601-4, 
41.103, 52.212-5, 52.244-6, and 53.228 in order to update references 
and make editorial changes.

    Dated: October 22, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

FAC 97-09
    Federal Acquisition Circular (FAC) 97-09 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 97-09 are effective 
December 29, 1998, except for Items I, II, V, and X which are effective 
October 30, 1998.

    Dated: October 23, 1998.
Eleanor R. Spector,
Director, Defense Procurement.

Ida M. Ustad,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.

    Dated: October 16, 1998.
Tom Luedtke,
Acting Associate Administrator for Procurement, National Aeronautics 
and Space Administration.
[FR Doc. 98-28954 Filed 10-29-98; 8:45 am]
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