[Federal Register Volume 66, Number 204 (Monday, October 22, 2001)]
[Rules and Regulations]
[Pages 53500-53501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26302]


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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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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) 2001-01 which amend the 
FAR. An asterisk (*) next to a rule 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 2001-01 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 2001-01
----------------------------------------------------------------------------------------------------------------
                  Item                               Subject                FAR case            Analyst
----------------------------------------------------------------------------------------------------------------
I......................................  *Application of the Davis-Bacon     1997-613  Nelson.
                                          Act to Construction Contracts
                                          With Options to Extend the
                                          Term of the Contract.
II.....................................  Acquisition of Commercial Items     2000-303  Moss.
III....................................  Prompt Payment Under Cost-          2000-308  Olson.
                                          Reimbursement Contracts for
                                          Services (Interim).
IV.....................................  Veterans' Employment...........     1998-614  Nelson.
V......................................  *Veterans Entrepreneurship and      2000-302  Cundiff.
                                          Small Business Development Act
                                          of 1999 (Interim).

[[Page 53501]]

 
VI.....................................  Very Small Business Pilot           2001-001  Cundiff
                                          Program.
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Item I--Application of the Davis-Bacon Act to Construction 
Contracts With Options To Extend the Term of the Contract

[FAR Case 1997-613]

    This final rule implements the Department of Labor's requirement to 
incorporate a current Davis-Bacon Act wage determination at the 
exercise of each option to extend the term of a contract for 
construction.

Item II--Acquisition of Commercial Items

[FAR Case 2000-303]

    This final rule amends the FAR to clarify the definition of 
``commercial item.'' The revised language will help contracting 
officers make commerciality determinations. The rule also alerts 
contracting officers to be aware of customary commercial terms and 
conditions that may affect the contract price when pricing commercial 
items. The rule also clarifies that subpart 46.8, Contractor Liability 
for Loss of or Damage to Property of the Government, does not apply to 
acquisitions of commercial items. Contracting officers should use 
standard commercial practices instead of the policies in subpart 46.8. 
Finally, the rule amends the clause at 52.212-4, Limitation of 
liability, to conform it to standard commercial practice.

Item III--Prompt Payment Under Cost-Reimbursement Contracts for 
Services

[FAR Case 2000-308]

    This interim rule implements changes in the Office of Management 
and Budget's (OMB) Prompt Payment Act regulations at 5 CFR 1315 that 
implemented Section 1010 of the NationalDefense Authorization Act for 
Fiscal Year 2001. Those changes were published by OMB as an interim 
final rule and became effective on December 15, 2000 (65 FR 78403) and 
were applicable to all covered contracts awarded on or after December 
15, 2000. Section 1010 of the National DefenseAuthorization Act for 
Fiscal Year 2001 requires agencies to pay an interest penalty, in 
accordance with regulations issued, whenever an interim payment under a 
cost-reimbursement contract for services is paid more than 30 days 
after the agency receives a proper invoice from a contractor. The Act 
does not permit payment of late payment penalty interest for any period 
prior to December 15, 2000.
    This FAR amendment eliminates the prior policy and contract clause 
prohibitions on payment of late payment penalty interest for late 
interim finance payments under cost-reimbursement contracts for 
services. It adds new policy and contract clause coverage to provide 
for those penalty payments.

Item IV--Veterans' Employment

[FAR Case 1998-614]

    This final rule amends the FAR to implement statutory and 
regulatory changes relating to veterans' employment opportunities and 
reporting. Most significantly for contracting officers, the rule amends 
the FAR to prohibit contracting officers from obligating or expending 
appropriated funds to enter into a contract with a contractor that has 
not met its veterans' employment reporting requirements (VETS--100 
Report). This prohibition does not apply to contracts for commercial 
items or contracts valued at or below the simplified acquisition 
threshold. The rule adds a new solicitation provision that requires 
each offeror to represent, by submission of its offer, that it is in 
compliance with the VETS--100 reporting requirements. The contracting 
officer may verify compliance by checking with the Department of Labor.

Item V--Veterans Entrepreneurship and Small Business Development 
Act of 1999

[FAR Case 2000-302]

    This interim rule amends the FAR to implement section 803 of the 
Small Business Reauthorization Act of 2000, part of the Consolidated 
Appropriations Act, 2001 (Pub. L. 106-554) that was enacted on December 
21, 2000.
    This rule requires a contractor that is required to submit a 
subcontracting plan to report as a separate subcontracting plan goal 
requirement, subcontracting activity pertaining to service-disabled 
veteran-owned small business concerns. The rule also changes the 
Standard Form (SF) 294, ``Subcontracting Report for Individual 
Contracts,'' and the SF 295, ``Summary Subcontract Report,'' to capture 
this category of information for the contracting officer.

Item VI--Very Small Business Pilot Program

[FAR Case 2001-001]

    This final rule amends FAR Subpart 19.9 to implement Section 503(c) 
of the Small Business Reauthorization Act of 2000 (part of Public Law 
106-554). Section 503(c) extends, for three additional years, the Very 
Small Business Pilot Program until September 30, 2003. The purpose of 
the program is to improve access to Government contract opportunities 
for concerns that are substantially below SBA's size standards by 
reserving certain acquisitions for competition among such concerns.

    Dated: October 12, 2001.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 01-26302 Filed 10-19-01; 8:45 am]
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