[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Rules and Regulations]
[Pages 70306-70307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33523]



[[Page 70306]]

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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 97-10 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.

SUPPLEMENTARY INFORMATION:

                       List of Rules in FAC 97-10
------------------------------------------------------------------------
       Item               Subject           FAR case        Analyst
------------------------------------------------------------------------
I................  Historically                97-307  Moss
                    Underutilized
                    Business Zone
                    (HUBZone)
                    Empowerment
                    Contracting Program
                    (Interim).
II...............  Limits for Indefinite-      98-016  DeStefano
                    Quantity Contracts.
III..............  Office of Federal           98-607  O'Neill
                    Contract Compliance
                    Programs National
                    Pre-Award Registry.
IV...............  Limitation on               97-303  Nelson
                    Allowability of
                    Compensation for
                    Certain Contractor
                    Personnel.
V................  Contractor Purchasing       97-016  Klein
                    System Review
                    Exclusions.
VI...............  Contract Quality            96-009  Klein
                    Requirements.
VII..............  Mandatory Government        97-027  Klein
                    Source Inspection *.
VIII.............  No-Cost Value               96-011  Klein
                    Engineering Change
                    Proposals *.
IX...............  Evidence of Shipment        97-011  Nelson
                    in Electronic Data
                    Interchange
                    Transactions.
------------------------------------------------------------------------

    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 97-10 amends the Federal Acquisition 
Regulation (FAR) as specified below:

Item I--Historically Underutilized Business Zone (HUBZone) 
Empowerment Contracting Program

[FAR Case 97-307]

    This interim rule amends FAR Parts 5, 6, 7, 8, 12, 13, 14, 15, 19, 
26, 52, and 53 to implement the Small Business Administration 
Historically Underutilized Business Zone (HUBZone) Empowerment 
Contracting Program. The purpose of the program is to provide Federal 
contracting assistance for qualified small business concerns located in 
historically underutilized business zones in an effort to increase 
employment opportunities, investment, and economic development in these 
areas. The program provides for set-asides, sole source awards, and 
price evaluation preferences for HUBZone small business concerns and 
establishes goals for awards to such concerns.

Item II--Limits for Indefinite-Quantity Contracts

[FAR Case 98-016]

    This final rule amends FAR 16.504(a) to clarify that maximum and 
minimum limits for indefinite-quantity contracts may be expressed as a 
number of units or dollar value.

Item III--Office of Federal Contract Compliance Programs National 
Pre-Award Registry

[FAR Case 98-607]

    This final rule amends FAR part 22 and related clauses to (1) 
inform the procurement community of the availability of the Department 
of Labor's Office of Federal Contract Compliance Programs (OFCCP) 
National Pre-Award Registry (Registry), accessible through the 
Internet, that contains contractor establishments who have received a 
preaward clearance within the preceding 24 months, and the option to 
use the information in the Registry in lieu of submitting a written 
request for a preaward clearance; and (2) implement revised Department 
of Labor (DoL) regulations pertaining to equal employment opportunity 
and affirmative action requirements for Federal contractors and 
subcontractors.

Item IV--Limitation on Allowability of Compensation for Certain 
Contractor Personnel

[FAR Case 97-303]

    The interim rule published as Item XIII of FAC 97-04 is converted 
to a final rule with minor clarifying amendments at FAR 31.205-6(p)(2). 
The rule implements Section 808 of the National Defense Authorization 
Act for Fiscal Year 1998 (Pub. L. 105-85). Section 808 limits allowable 
compensation costs for senior executives of contractors to the 
benchmark year by the Administrator, Office of Federal Procurement 
Policy (OFPP). The benchmark compensation amount is $340,650 for 
contractor fiscal year 1998, and subsequent contractor fiscal years, 
unless and until revised by OFPP.

Item V--Contractor Purchasing System Review Exclusions

[FAR Case 97-016]

    This final rule amends FAR 44.302 and 44.303 to exclude 
competitively awarded firm-fixed-price and competitively awarded fixed-
price contracts with economic price adjustment, and sales of commercial 
items pursuant to FAR part 12, from the dollar amount used to determine 
if a contractor's level of sales to the Government warrants the conduct 
of a CPSR; and to exclude subcontracts awarded by a contractor 
exclusively in

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support of Government contracts that are competitively awarded firm-
fixed-price, competitively awarded fixed-price with economic price 
adjustment, or awarded for commercial items pursuant to FAR part 12, 
from evaluation during a CPSR.

Item VI--Contract Quality Requirements

[FAR Case 96-009]

    This final rule amends FAR 46.202-4, 46.311, and 52.246-11 to 
replace references to Government specifications with references to 
commercial quality standards as examples of higher-level contract 
quality requirements; to require the contracting officer to indicate in 
the solicitation which higher-level quality standards will satisfy the 
Government's requirement; and, if more than one standard is listed in 
the solicitation, to require the offeror to indicate its selection by 
checking a block.

Item VII--Mandatory Government Source Inspection

[FAR Case 97-027]

    This final rule amends FAR 46.402 to facilitate the elimination of 
unnecessary requirements for Government contract quality assurance at 
source. This rule deletes the mandatory requirements for Government 
contract quality assurance at source on all contracts that include a 
higher-level contract quality requirement, and for supplies requiring 
inspection that are destined for overseas shipment.

Item VIII--No-Cost Value Engineering Change Proposals

[FAR Case 96-011]

    The interim rule published as Item X of FAC 97-05 is converted to a 
final rule without change. The 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 IX--Evidence of Shipment in Electronic Data Interchange (EDI) 
Transactions

[FAR Case 97-011]

    This final rule revises the clause at FAR 52.247-48 to facilitate 
the use of electronic data interchange (EDI) transactions and to 
streamline the payment process when supplies are purchased on a free on 
board (f.o.b.) destination basis with inspection and acceptance at 
origin.

    Dated: December 14, 1998.
Ralph DeStefano,
Acting Director, Federal Acquisition Policy Division.
[FR Doc. 98-33523 Filed 12-16-98; 8:45 am]
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