[Federal Register Volume 64, Number 42 (Thursday, March 4, 1999)]
[Rules and Regulations]
[Pages 10552-10553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5212]



[[Page 10552]]

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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) 97-11 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 97-11 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 97-11
------------------------------------------------------------------------
        Item              Subject        FAR case          Analyst
------------------------------------------------------------------------
I...................  Review of FAR         96-013  Linfield.
                       Representation
                       s.
II..................  Very Small            98-013  Moss.
                       Business
                       Concerns
                       (Interim).
III.................  Variation in          98-612  Moss.
                       Quantity.
IV..................  * Electronic          91-118  Olson.
                       Funds Transfer.
V...................  Waiver of Cost        98-302  De Stefano.
                       or Pricing
                       Data for
                       Subcontracts.
VI..................  Executive Order       94-610  O'Neill.
                       12933,
                       Nondisplacemen
                       t of Qualified
                       Workers Under
                       Certain
                       Contracts.
VII.................  Recruitment           98-001  Nelson.
                       Costs
                       Principle.
VIII................  Compensation          98-301  Nelson.
                       for Senior
                       Executives
                       (Interim).
------------------------------------------------------------------------

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 the 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.

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

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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.

    Dated: February 25, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 99-5212 Filed 3-3-99; 8:45 am]
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