[Federal Register Volume 65, Number 59 (Monday, March 27, 2000)]
[Rules and Regulations]
[Pages 16274-16275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7307]



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Part III





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1 and Part 19 et al.



Federal Acquisition Circular 97-16; Introduction; Federal Acquisition 
Regulation; Small Business Competiveness Demonstration Program; 
Progress Payments and Related Financing Policies; Technical Amendments; 
Small Entity Compliance Guide; Interim and Final Rules

  Federal Register / Vol. 65, No. 59 / Monday, March 27, 2000 / Rules 
and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 97-16; 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.

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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) 97-16. The Councils drafted these FAR rules using plain 
language in accordance with the White House memorandum, Plain Language 
in Government Writing, dated June 1, 1998. The Councils wrote all new 
and revised text using plain language. A companion document, the Small 
Entity Compliance Guide (SECG), follows this FAC. The FAC, including 
the SECG, is available via 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 97-16 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................................  Small Business             1999-012............                         Moss.
                                    Competitiveness
                                    Demonstration Program
                                    (Interim).
II...............................  Progress Payments and      1998-400 (98-400)...                        Olson.
                                    Related Financing
                                    Policies.
III..............................  Technical Amendments.....
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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 97-16 amends the FAR as specified 
below:

Item I--Small Business Competitiveness Demonstration Program (FAR 
Case 1999-012)

    This interim rule amends FAR Subpart 19.10 to clarify language 
pertaining to the Small Business Competitiveness Demonstration (Comp. 
Demo.) Program, consistent with revisions to the Program that were 
contained in an OFPP and SBA joint final policy directive dated May 25, 
1999.
    The interim rule--
     Advises the contracting officer to consider the 8(a) 
Program and HUBZone Program, in addition to small business set-asides, 
for acquisitions of $25,000 or less in one of the four designated 
industry groups that will not be set aside for emerging small business 
concerns.
     Adds FAR 19.1006, Exclusions, to specify acquisitions to 
which Subpart 19.10 does not apply. None of the Small Business Comp. 
Demo. policies and procedures apply to orders under the Federal Supply 
Schedule Program or to contracts awarded to educational and nonprofit 
institutions or governmental entities.
    This interim rule only will affect contracting officers at 
participating agencies when acquiring supplies or services subject to 
the procedures of the Small Business Comp. Demo. Program. The 
participating agencies are: Department of Agriculture; Department of 
Defense, except the National Imagery and Mapping Agency; Department of 
Energy; Department of Health and Human Services; Department of the 
Interior; Department of Transportation; Department of Veterans Affairs; 
Environmental Protection Agency; General Services Administration; and 
National Aeronautics and Space Administration.

Item II--Progress Payments and Related Financing Policies (FAR Case 
1998-400) (98-400)

    This final rule revises certain financing policies at FAR Part 32, 
Contract Financing, and related contract provisions at FAR Part 52. The 
rule--
     Emphasizes that performance-based payments are the 
preferred method of contract financing. Performance-based payments are 
contract financing payments made after achievement of predetermined 
goals, such as performance objectives or defined events. Contracting 
officers should consider performance-based payments and deem their use 
impracticable before deciding to provide customary progress payments;
     Permits contracting officers to provide contract financing 
on contracts awarded to large businesses if the individual contract is 
$2 million or more. Previously, the threshold in the FAR for financing 
a contract with a large business was $1 million;
     Permits a large business to bill the Government for 
subcontract costs that the large business has incurred but not actually 
paid, if certain conditions are met. Previously, the FAR permitted only 
small business concerns to bill for subcontract costs that have been 
incurred but not paid;
     Permits the contracting officer to use performance-based 
payments in contracts for research and development, and in contracts 
awarded through competitive negotiation procedures; and
     Is effective on March 27, 2000. However, it is mandatory 
only for solicitations issued on or after May 26, 2000. Contracting 
officers may, at their discretion, include the clauses and provisions 
in this rule in solicitations issued before that date.

Item III--Technical Amendments

    These amendments update references and make editorial changes at 
sections 1.106, 1.201-1, 1.304, 6.305, 9.404, 9.405, 15.404-1, 49.105-
2, 52.212-1, 52.217-9, and 52.219-23.

    Dated: March 20, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 97-16 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.

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    All Federal Acquisition Regulation (FAR) changes and other 
directive material contained in FAC 97-16 are effective March 27, 2000. 
For Item II, the rule is mandatory for solicitations issued on or after 
May 26, 2000, but contracting officers may, at their discretion, 
include the clauses and provisions in soliciations issued before May 
26, 2000. For Item I, the rule is applicable to solicitations issued on 
or after the rule's effective date.

    Dated: March 15, 2000.
R.D. Kerrins, Jr.,
Acting Director, Defense Procurement.

    Dated: March 20, 2000.
Sue McIver,
Acting Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.

    Dated: March 16, 2000.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and Space 
Administration.

[FR Doc. 00-7307 Filed 3-24-00; 8:45 am]
BILLING CODE 6820-EP-P