[Federal Register Volume 64, Number 185 (Friday, September 24, 1999)]
[Rules and Regulations]
[Pages 51850-51852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24426]


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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).


[[Page 51851]]


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) 97-14 which amend the 
FAR. The rules marked with an asterisk (*) indicate that a regulatory 
flexibility analysis has been prepared in accordance with 5 U.S.C. 604. 
Interested parties may obtain further information regarding these rules 
by referring to FAC 97-14 which precedes this document. These documents 
are also available via the Internet at http://www.arnet.gov/far.

FOR FURTHER INFORMATION CONTACT: Laurie Duarte, FAR Secretariat, (202) 
501-4225. For clarification of content, contact the analyst whose name 
appears in the table below.

                       List of Rules in FAC 97-14
------------------------------------------------------------------------
         Item and Subject            FAR case            Analyst
------------------------------------------------------------------------
I--Very Small Business Concerns..       98-013  Moss
II--* Historically Underutilized        97-307  Moss
 Business Zone (HUBZone)
 Empowerment Contracting Program.
III--Use of Competitive Proposals       99-001  DeStefano
IV--Javits-Wagner-O'Day Proposed        98-602  DeStefano
 Revisions.
V--OMB Circular A-119............       98-004  Moss
VI--* Determination of Price            98-300  Olson
 Reasonableness and Commerciality
 (Interim).
VII--Conforming Late Offer              97-030  DeStefano
 Treatment.
VIII--Evaluation of Proposals for       97-038  Olson
 Professional Services.
IX--Option Clause Consistency....       98-606  DeStefano
X--Compensation for Senior              98-301  Nelson
 Executives.
XI--Interest and Other Financial        98-006  Nelson
 Costs.
XII--Cost-Reimbursement Architect-      97-043  O'Neill
 Engineer Contracts.
XIII Conditionally Accepted Items       98-002  Klein
XIV--* Value Engineering Change         97-031  Klein
 Proposals/PAT.
XV--Cost Accounting Standards           98-003  Nelson
 Post-Award Notification.
------------------------------------------------------------------------

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

    This final rule converts the interim rule published as Item II of 
FAC 97-11 to a final rule with changes. The interim rule amended FAR 
5.207, 8.404, 12.303, 19.000, 19.001, 19.102, 19.502-2, 19.901 through 
19.904, 52.212-5, and 52.219-5, to implement the Small Business 
Administration's Very Small Business Pilot Program (13 CFR Parts 121 
and 125). This program became effective on January 4, 1999.

Item II--Historically Underutilized Business Zone (HUBZone) 
Empowerment Contracting Program (FAR Case 97-307)

    This final rule converts the interim rule published as Item I of 
FAC 97-10 to a final rule with amendments at FAR 6.201, 19.306, 19.307, 
19.800, 19.1303, and the provision at 52.219-1. This final rule amends 
the FAR to implement the Small Business Administration's Historically 
Underutilized Business (HUBZone) 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 III--Use of Competitive Proposals (FAR Case 99-001)

    This final rule amends FAR 6.401 to delete the requirement for 
contracting officers to explain in writing their rationale for choosing 
to use competitive proposals rather than sealed bidding.

Item IV--Javits-Wagner-O'Day Proposed Revisions (FAR Case 98-602)

    This final rule adds a new section, FAR 8.716, and amends paragraph 
(a) of FAR 42.1203 to provide procedures for recognizing a name change 
or a successor in interest for a Javits-Wagner-O'Day Act participating 
nonprofit agency providing supplies or services on the Procurement List 
maintained by the Committee for Purchase From People Who Are Blind or 
Severely Disabled.

Item V--OMB Circular A-119 (FAR Case 98-004)

    This final rule amends FAR 11.101, 11.107, 11.201, and adds a 
provision at 52.211-7 to address the use of voluntary consensus 
standards in accordance with the requirements of Office of Management 
and Budget (OMB) Circular A-119.

Item VI--Determination of Price Reasonableness and Commerciality 
(FAR Case 98-300)

    This interim rule revises FAR 12.209, 13.106-3(a)(2), and amends 
Subpart 15.4 to implement Section 803 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Pub. L. 105-261). 
Section 803 requires amending the FAR to provide specific guidance 
concerning--
     The appropriate application and precedence of various 
price analysis tools;
     The circumstances under which contracting officers should 
require offerors of exempt commercial items to provide information 
other than cost or pricing data; and
     The role and responsibility of support organizations in 
determining price reasonableness.
    This interim rule also revises FAR 15.403-3(a) to implement Section 
808 of the Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (Pub. L. 105-261). Section 808 requires amending the FAR to--
     Clarify procedures associated with obtaining information 
other than cost or pricing data when acquiring commercial items;
     Establish that offerors who fail to comply with 
requirements to provide the information shall be ineligible for award; 
and
     Establish exceptions, as appropriate.

[[Page 51852]]

Item VII--Conforming Late Offer Treatment (FAR Case 97-030)

    This final rule amends FAR 14.201-6, 14.304, and 15.208, the 
provisions at 52.212-1, 52.214-7, 52.214-23, and 52.215-1, and removes 
52.214-32 and 52.214-33 to provide uniform guidance regarding receipt 
of late offers for commercial, sealed bid, and negotiated acquisitions.

Item VIII--Evaluation of Proposals for Professional Services (FAR 
Case 97-038)

    This final rule amends FAR 15.305(a)(1) and 37.115-2(c) to provide 
guidance on the evaluation of proposals that include uncompensated 
overtime hours.

Item IX--Option Clause Consistency (FAR Case 98-606)

    This final rule amends FAR 17.208(g) to clarify that the time 
period for providing a preliminary notice of the Government's intent to 
exercise a contract option in the clause at FAR 52.217-9 may be 
tailored and amends the clause at FAR 52.217-8 to make the format of 
the Option to Extend Services clause consistent with the format of 
other option clauses in the FAR.

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

    This final rule coverts the interim rule published as Item VIII of 
FAC 97-11 to a final rule without change. The rule amends FAR Part 31 
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'' even though the home office or segment might not 
report directly to the contractor's headquarters.

Item XI--Interest and Other Financial Costs (FAR Case 98-006)

    This final rule amends FAR 31.205-20 to make minor changes to the 
cost principle concerning ``interest and other financial costs.''

Item XII--Cost-Reimbursement Architect-Engineer Contracts (FAR Case 
97-043)

    This final rule amends the clause prescriptions at FAR 36.609, 
44.204, 49.503, and the clause preface at 52.236-25, Requirements for 
Registration of Designers, to include application of certain clauses to 
cost-reimbursement architect-engineer contracts.

Item XIII--Conditionally Accepted Items (FAR Case 98-002)

    This final rule amends FAR 46.101 to add a definition of 
conditional acceptance; and FAR 46.407 to require that, when 
conditionally accepting nonconforming items, amounts withheld from 
payments should be at least sufficient to cover the cost and related 
profit to correct deficiencies and complete unfinished work. FAR 46.407 
has also been revised to require that the basis for the amounts 
withheld be documented in the contract file.

Item XIV--Value Engineering Change Proposals/PAT (FAR Case 97-031)

    This final rule amends the value engineering change proposal (VECP) 
guidance in FAR 48.001, 48.102, 48.104, 48.201, and the FAR clause at 
52.248-1 to allow the contracting officer to increase the sharing 
period from 36 to a range of 36 to 60 months; increase the contractor's 
share of instant, concurrent and future savings under the incentive/
voluntary sharing arrangement from 50 to a range of 50 to 75 percent; 
and increase the contractor's share of collateral savings from 20 to a 
range of 20 to 100 percent on a case-by-case basis for each VECP.

Item XV--Cost Accounting Standards Post-Award Notification (FAR 
Case 98-003)

    This final rule revises paragraph (e) of the clause at FAR 52.230-
6, Administration of Cost Accounting Standards, to reduce the 
subcontractor information that a contractor is required to provide to 
its cognizant contract administration office (CAO) when requesting the 
CAO to perform administration for Cost Accounting Standards matters.

    Dated: September 14, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 99-24426 Filed 9-23-99; 8:45 am]
BILLING CODE 6820-EP-P