[Federal Register Volume 64, Number 42 (Thursday, March 4, 1999)]
[Rules and Regulations]
[Pages 10530-10531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5202]



[[Page 10529]]

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Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Chapter 1 et al.



Federal Acquisition Regulations; Final Rules

  Federal Register / Vol. 64, No. 42 / Thursday, March 4, 1999 / Rules 
and Regulations  

[[Page 10530]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 97-11; 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.

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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) 97-11. 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 97-11 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
----------------------------------------------------------------------------------------------------------------
I......................................  Review of FAR Representations.       96-013  Linfield.
II.....................................  Very Small Business Concerns         98-013  Moss.
                                          (Interim).
III....................................  Variation in Quantity.........       98-612  Moss.
IV.....................................  Electronic Funds Transfer.....       91-118  Olson.
V......................................  Waiver of Cost or Pricing Data       98-302  De Stefano.
                                          for Subcontracts.
VI.....................................  Executive Order 12933,               94-610  O'Neill.
                                          Nondisplacement of Qualified
                                          Workers Under Certain
                                          Contracts.
VII....................................  Recruitment Costs Principle...       98-001  Nelson.
VIII...................................  Compensation for Senior              98-301  Nelson.
                                          Executives (Interim).
IX.....................................  Technical Amendments.
----------------------------------------------------------------------------------------------------------------

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 97-11 amends the Federal Acquisition 
Regulation (FAR) as specified below:

Item I--Review of FAR Representations (FAR Case 96-013)

    This final rule amends FAR parts 1, 4, 12, 14, 26, 27, 32, 41, and 
52 to reduce certain contractual requirements for representations or 
other affirmations that place an unnecessary burden on offerors or 
contractors.

Item II--Very Small Business Concerns (FAR Case 98-013)

    This interim rule amends Federal Acquisition Regulation (FAR) Parts 
5, 8, 12, 19, and 52 to implement the Small Business Administration's 
Very Small Business Pilot Program (13 CFR parts 121 and 125). The rule 
provides for the set-aside of certain acquisitions between $2,500 and 
$50,000 for very small business (VSB) concerns. The pilot VSB program 
is limited to buying activities and VSBs located in 10 geographic 
regions specified by the Small Business Administration and will run 
through September 30, 2000.

Item III--Variation in Quantity (FAR Case 98-612)

    This final rule revises the prescription in 11.703(a) for the 
clause at 52.211-16, Variation in Quantity, to require use of the 
clause only in solicitations and contracts where a variation in 
quantity is authorized. This change makes the clause prescription 
consistent with language in FAR 11.701(a).

Item IV--Electronic Funds Transfer (FAR Case 91-118)

    This final rule amends FAR Parts 13, 16, 32, and 52 to address the 
use of electronic funds transfer (EFT) for Federal contract payments, 
and to facilitate implementation of Public Law 104-134 which mandates 
payment by EFT in most situations. The final rule mainly differs from 
the interim rule by removing references to the ``phase one'' time 
period, which ended on January 1, 1999; by implementing applicable 
provisions of the Department of the Treasury's final rule at 31 CFR 
part 208 which addresses the ``phase two'' time period beginning 
January 2, 1999; by addressing the situation where contractors furnish 
EFT information by registering in the Central Contractor Registration 
database; and by permitting agencies to collect EFT banking information 
at various time periods ranging from prior to award (as a condition of 
award) to after award (concurrent with the initial invoice).

Item V--Waiver of Cost or Pricing Data for Subcontracts (FAR Case 
98-302)

    Section 805 of Public Law 105-261 clarifies that waivers of 
requirements for submittal of prime contractor cost or pricing data do 
not automatically waive requirements for subcontractors to submit cost 
or pricing data. Although this is consistent with the current 
requirements of FAR 15.403-1(c)(4), the final rule clarifies the 
requirement to provide rationale supporting any waiver of subcontracts.

Item VI--Executive Order 12933, Nondisplacement of Qualified 
Workers Under Certain Contracts (FAR Case 94-610)

    The interim rule published as Item III in FAC 97-01 is converted to 
a final rule with minor changes. The final rule makes changes to the 
definition of ``building service contract'' at FAR 22.1202, and 
paragraphs (c) and (j) of the clause at 52.222-50, Nondisplacement of 
Qualified Workers.

Item VII--Recruitment Costs Principle (FAR Case 98-001)

    This final rule amends FAR 31.205-1, Public relations and 
advertising costs, and FAR 31.205-34, Recruitment costs, to remove 
excessive wording and details for streamlining purposes.

[[Page 10531]]

Item VIII--Compensation for Senior Executives (FAR Case 98-301)

    This interim rule revises FAR section 31.205-6(p) to implement 
Section 804 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Pub. L. 105-261). Section 804 revises the 
definition of ``senior executive'' at 10 U.S.C. 2324(1)(5) and at 41 
U.S.C. 256(m)(2) to be ``the five most highly compensated employees in 
management positions at each home office and each segment of the 
contractor.'' This change applies to costs of compensation incurred 
after January 1, 1999, regardless of the date of contract award.

Item IX--Technical Amendments

    Amendments are being made at FAR 1.106, 25.402, 52.219-8, 53.228, 
and 53.301-1418 in order to update references and make editorial 
changes.

    Dated: February 25, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 97-11 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 97-11 are 
effective May 3, 1999, except for Items II, VIII, and IX, which are 
effective March 4, 1999.
Eleanor R. Spector,
Director, Defense Procurement.

Edward C. Loeb,
Acting Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.

Tom Luedtke,
Acting Associate Administrator for Procurement, National Aeronautics 
and Space Administration.
[FR Doc. 99-5202 Filed 3-3-99; 8:45 am]
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