[Federal Register Volume 65, Number 59 (Monday, March 27, 2000)]
[Rules and Regulations]
[Pages 16286-16287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7311]


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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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[[Page 16287]]

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) 97-16 which amend the 
FAR. The rule marked with an asterisk (*) indicates 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 97-16 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 97-16
------------------------------------------------------------------------
      Item                Subject            FAR case        Analyst
------------------------------------------------------------------------
I...............  Small Business              1999-012  Moss.
                   Competitiveness
                   Demonstration Program
                   (Interim).
II..............  Progress Payments and       1998-400  Olson.
                   Related Financing          (98-400)
                   Policies *.
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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.

    Dated: March 20, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 00-7311 Filed 3-24-00; 8:45 am]
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