[Federal Register Volume 66, Number 7 (Wednesday, January 10, 2001)]
[Rules and Regulations]
[Pages 2116-2117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-282]



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Part III





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Ch. 1



Federal Acquisition Regulation (FAR); Final Rule

  Federal Register / Vol. 66, No. 7 / Wednesday, January 10, 2001 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Ch. 1


Federal Acquisition Circular 97-22; Introduction

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final rules.

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SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by the Civilian Agency Acquisition Council and 
the Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 97-22. 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 97-22 and 
specific FAR case numbers. Interested parties may also visit our 
website at http://www.arnet.gov/far.

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     Item               Subject             FAR case        Analyst
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I............  Definitions..............     1999-403  Olson.
II...........  Applicability, Thresholds     2000-301  Nelson.
                and Waiver of Cost
                Accounting Standards
                Coverage.
III..........  Advance Payments for Non-     1999-016  Olson.
                Commercial Items.
IV...........  Part 12 and Assignment of     1999-021  Moss.
                Claims.
V............  Clause Flowdown--             1996-023  Moss.
                Commercial Items.
VI...........  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 97-22 amends the FAR as specified 
below:

Item I--Definitions (FAR Case 1999-403)

    This final rule clarifies the applicability of definitions used in 
the FAR, eliminates redundant or conflicting definitions, and makes 
definitions easier to find. The rule--
     Relocates definitions of terms that are used in more than 
one FAR part with the same meaning to 2.101;
     Relocates other definitions of terms to the 
``Definitions'' section of the highest level FAR division (part, 
subpart, or section) where the term as defined is used. For example, if 
a term was defined in a FAR section, but the term is used as defined in 
another section of that subpart, then the definition was moved to the 
``Definitions'' section of that subpart;
     Clarifies that a term, defined in FAR 2.101, has the same 
meaning throughout the FAR unless the context in which the term is used 
clearly requires a different meaning; or unless another FAR part, 
subpart, or section provides a different definition for that particular 
part, subpart, or section;
     Adds cross-references to definitions of terms in FAR 2.101 
that are defined differently in another part, subpart, or section of 
the FAR; and
     Makes technical corrections throughout the FAR.

Item II--Applicability, Thresholds and Waiver of Cost Accounting 
Standards Coverage (FAR Case 2000-301)

    The interim rule published as Item VIII of FAC 97-18 (65 FR 36028, 
June 6, 2000) is converted to a final rule without change. This rule 
amends FAR Subpart 30.2, CAS Program Requirements, and the FAR clause 
at 52.230-1, Cost Accounting Standards Notices and Certification, to 
implement Section 802 of the National Defense Authorization Act for 
Fiscal Year 2000 (Pub. L. 106-65) and the Cost Accounting Standards 
(CAS) Board's final rule, Applicability, Thresholds and Waiver of Cost 
Accounting Standards Coverage. The FAR rule revises policies affecting 
which contractors and subcontractors must comply with CAS by--
     Removing the requirement at FAR 52.230-1, Cost Accounting 
Standards Notices and Certification, that a contractor or subcontractor 
must have received at least one CAS-covered contract exceeding $1 
million (``trigger contract'') to be subject to ``full CAS coverage.'' 
The CAS Board added a new ``trigger contract'' dollar amount of $7.5 
million at paragraph (b)(7) of 48 CFR 9903.201-1, CAS applicability, 
which is already referenced at FAR 30.201-1;
     Revising FAR 30.201-4(b), Disclosure and consistency of 
cost accounting practices, and FAR 52.230-1 to increase the dollar 
threshold for full CAS coverage from $25 million to $50 million; and
     Revising the CAS waiver procedures and conditions at FAR 
30.201-5.

Item III--Advance Payments for Non-Commercial Items (FAR Case 99-
016)

    This final rule amends the FAR to permit federally insured credit 
unions, in addition to banks, to participate in the maintenance of 
special accounts for advance payments. The rule will only affect 
contracting officers that provide contract financing using advance 
payments for non-commercial items.

Item IV--Part 12 and Assignment of Claims (FAR Case 1999-021)

    This final rule amends the FAR to correct an inconsistency between 
two clauses related to the assignment of claims. FAR 52.232-36, Payment 
by Third Party, prohibits a contractor from assigning its rights to 
receive payment under the contract if payment is made by a third party, 
such as when a Governmentwide commercial purchase card is used. This 
clause is cited in the contract clause at FAR 52.212-5 that addresses 
terms and conditions required to implement statutes or Executive orders 
for commercial items.
    FAR 52.212-4, Contract Terms and Conditions--Commercial Items, 
addresses assignment of claims but does not include the third party 
prohibition.

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This rule revises FAR 52.212-4(b) to add the prohibition.

Item V--Clause Flowdown--Commercial Items (FAR Case 1996-023)

    This final rule amends the clause at FAR 52.244-6, Subcontracts for 
Commercial Items, to revise the listing of clauses the contractor must 
flow down to subcontractors. The rule revises the listing to add the 
clause at FAR 52.219-8, Utilization of Small Business Concerns, when 
specified circumstances have been met. In addition, the rule adds 
language to inform contractors that they may flow down a minimal number 
of additional clauses to subcontractors to satisfy their contractual 
obligations.

Item VI--Technical Amendments

    This document makes amendments to the Federal Acquisition 
Regulation in order to update references and make editorial changes.

    Dated: December 22, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 97-22 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.
    All Federal Acquisition Regulation (FAR) changes and other 
directive material contained in FAC 97-22 are effective March 12, 2001, 
except for Items II and VI, which are effective January 10, 2001.

Dated: December 8, 2000
Deidre A. Lee,
Director, Defense Procurement.

Dated: December 8, 2000.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.

Dated: December 7, 2000.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and 
Space Administration.
[FR Doc. 01-282 Filed 1-9-01; 8:45 am]
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