[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
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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.
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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]
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