[Federal Register Volume 63, Number 210 (Friday, October 30, 1998)]
[Rules and Regulations]
[Pages 58608-58609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28965]



[[Page 58608]]

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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. 
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 rules 
appearing in Federal Acquisition Circular (FAC) 97-09 which amend the 
FAR. The rules marked with an asterisk (*) are those for which a 
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 97-09 which precedes this document. This document 
may be obtained from the Internet at http://www.arnet.gov/far.

FOR FURTHER INFORMATION CONTACT: Laurie Duarte, FAR Secretariat, (202) 
501-4225.

                                           List of Rules in FAC 97-09
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                  Item                                Subject                FAR case            Analyst
----------------------------------------------------------------------------------------------------------------
I.......................................  Taxpayer Identification Numbers       97-003  Olson.
                                           (Interim).
II......................................  * Electronic Commerce in              97-304  Nelson.
                                           Federal 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           96-610  O'Neill.
                                           With 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.
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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 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.

[[Page 58609]]

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.

    Dated: October 22, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 98-28965 Filed 10-29-98; 8:45 am]
BILLING CODE 6820-EP-U