[Federal Register Volume 67, Number 54 (Wednesday, March 20, 2002)]
[Rules and Regulations]
[Pages 13053-13054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5821]



[[Page 13053]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 5, 6, 8, 17, 19, 32, and 52

[FAC 2001-06; FAR Case 2000-402; Item II]
RIN 9000-AI76


Federal Acquisition Regulation; Definitions for ``Contract 
Action'' and ``Contracting Action''

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed to amend the 
Federal Acquisition Regulation (FAR) to provide for consistent use of 
the term ``contract action'' and to make other editorial changes to 
clarify the text.

DATES: Effective Date: April 4, 2002.

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 Ms. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 2001-06, FAR case 2000-402.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule amends the FAR to provide for consistent use of the term 
``contract action.'' The rule changes the term ``contracting action'' 
to ``contract action'' throughout the FAR and makes other editorial 
changes to clarify the text.
    DoD, GSA, and NASA published a proposed rule in the Federal 
Register on May 31, 2000 (65 FR 34894). One respondent submitted 
comments on the proposed rule. Based on those comments, the rule was 
changed to provide for more consistent use of the term ``contract 
action'' and to place definitions in the proper FAR sections.
    This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because we are not 
substantively changing procedures for award and administration of 
contracts. We did not receive any comments regarding this determination 
as a result of publication of the proposed rule in the Federal Register 
on May 31, 2000 (65 FR 34894).

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
Office of Management and Budget approval under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 1, 5, 6, 8, 17, 19, 32, and 52

    Government procurement.

    Dated: March 6, 2002.
Al Matera,
Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 5, 6, 8, 17, 
19, 32, and 52 as set forth below:
    1. The authority citation for 48 CFR parts 1, 5, 6, 8, 17, 19, 32, 
and 52 continues to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

    2. Revise section 1.403 to read as follows:


1.403  Individual deviations.

    Individual deviations affect only one contract action, and, unless 
1.405(e) is applicable, may be authorized by the agency head. The 
contracting officer must document the justification and agency approval 
in the contract file.
    3. Revise the introductory paragraph of section 1.404 to read as 
follows:


1.404  Class deviations.

    Class deviations affect more than one contract action. When an 
agency knows that it will require a class deviation on a permanent 
basis, it should propose a FAR revision, if appropriate. Civilian 
agencies, other than NASA, must furnish a copy of each approved class 
deviation to the FAR Secretariat.
* * * * *


1.701  [Amended]

    4. Amend the first sentence of section 1.701 by removing the word 
``contracting'' and adding ``contract'' in its place.


1.703  [Amended]

    5. Amend section 1.703 in paragraph (a) by removing the word 
``contracting'' each time it appears (3 times) and adding ``contract'' 
in its place.

    6. Amend section 1.705 by revising paragraph (b) to read as 
follows:


1.705  Supersession and modification.

* * * * *
    (b) The contracting officer need not cancel the solicitation if the 
D&F, as modified, supports the contract action.

PART 5--PUBLICIZING CONTRACT ACTIONS

    7. Revise section 5.001 to read as follows:


5.001  Definition.

    Contract action, as used in this part, means an action resulting in 
a contract, as defined in subpart 2.1, including actions for additional 
supplies or services outside the existing contract scope, but not 
including actions that are within the scope and under the terms of the 
existing contract, such as contract modifications issued pursuant to 
the Changes clause, or funding and other administrative changes.

PART 6--COMPETITION REQUIREMENTS


6.502  [Amended]

    8. Amend section 6.502 in paragraph (b)(1)(iv) by removing the word 
``contracting'' and adding ``contract'' in its place.

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    9. Revise section 8.102 to read as follows:


8.102  Policy.

    When practicable, agencies must use excess personal property as the 
first source of supply for agency and cost-reimbursement contractor 
requirements. Agency personnel must make positive efforts to satisfy 
agency requirements by obtaining and using excess personal property 
(including that suitable for adaptation or substitution) before 
initiating a contract action.

[[Page 13054]]

PART 17--SPECIAL CONTRACTING METHODS


17.104  [Amended]

    10. Amend section 17.104 in the second sentence of paragraph (b) by 
removing the words ``contracting action'' and adding ``contract'' in 
their place.

    11. Amend section 17.503 by revising the introductory text of 
paragraph (b) to read as follows:


17.503  Determinations and findings requirements.

* * * * *
    (b) If the Economy Act order requires contract action by the 
servicing agency, the D&F must also include a statement that at least 
one of the following circumstances applies:
* * * * *

PART 19--SMALL BUSINESS PROGRAMS


19.302  [Amended]

    12. Amend section 19.302 in the first sentence of paragraph (h)(4) 
by removing the words ``contracting action'' and adding ``contract 
action'' in their place.

    13. Amend section 19.505 by revising paragraph (c) to read as 
follows:


19.505  Rejecting Small Business Administration recommendations.

* * * * *
    (c) If the head of the contracting activity agrees that the 
contracting officer's rejection was appropriate--
    (1) Within 1 working day, the SBA procurement center representative 
may request the contracting officer to suspend action on the 
acquisition until the SBA Administrator appeals to the agency head (see 
paragraph (f) of this section); and
    (2) The SBA must be allowed 15 working days after making such a 
written request, within which the Administrator of SBA--
    (i) May appeal to the Secretary of the Department concerned; and
    (ii) Must notify the contracting officer whether the further appeal 
has, in fact, been taken. If notification is not received by the 
contracting officer within the 15-day period, it is deemed that the SBA 
request to suspend the contract action has been withdrawn and that an 
appeal to the Secretary was not taken.
* * * * *

PART 32--CONTRACT FINANCING

    14. Revise the introductory paragraph of section 32.000 to read as 
follows:


32.000  Scope of part.

    This part prescribes policies and procedures for contract financing 
and other payment matters. This part addresses--
* * * * *

    15. Amend section 32.001 by revising the definition ``Contract 
action'' to read as follows:


32.001  Definitions.

* * * * *
    Contract action means an action resulting in a contract, as defined 
in subpart 2.1, including actions for additional supplies or services 
outside the existing contract scope, but not including actions that are 
within the scope and under the terms of the existing contract, such as 
contract modifications issued pursuant to the Changes clause, or 
funding and other administrative changes.
* * * * *


32.703-2  [Amended]

    16. Amend section 32.703-2 in the first sentence of the 
introductory text of paragraph (a) by removing the words ``contracting 
action'' and adding ``contract action'' in their place; by removing the 
semicolon after the word ``available'' and adding a comma in its place; 
and by removing the comma after the word ``provided''.

    17. Amend section 32.705-1 by revising paragraph (a) to read as 
follows:


32.705-1  Clauses for contracting in advance of funds.

    (a) Insert the clause at 52.232-18, Availability of Funds, in 
solicitations and contracts if the contract will be chargeable to funds 
of the new fiscal year and the contract action will be initiated before 
the funds are available.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    18. Amend section 52.232-18 by revising the introductory text to 
read as follows:


52.232-18  Availability of Funds.

    As prescribed in 32.705-1(a), insert the following clause:
* * * * *

[FR Doc. 02-5821 Filed 3-19-02; 8:45 am]
BILLING CODE 6820-EP-P