[Federal Register Volume 67, Number 226 (Friday, November 22, 2002)]
[Rules and Regulations]
[Pages 70522-70523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29094]


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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) 2001-10 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 2001-10 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 2001-10
------------------------------------------------------------------------
      Item                Subject            FAR case        Analyst
------------------------------------------------------------------------
I..............  General Records Schedule     2002-016  Nelson
II.............  Executive Order 13202,       2001-016  Nelson
                  Preservation of Open
                  Competition and
                  Government Neutrality
                  Towards Government
                  Contractors' Labor
                  Relations on Federal
                  And Federally Funded
                  Construction Projects.
III............  Caribbean Basin Country      2000-306  Davis
                  End Products.
IV.............  Financing Policies......     2000-007  Olson
V..............  Technical Amendments....
------------------------------------------------------------------------

Item I--General Records Schedule (FAR Case 2002-016)

    This final rule amends the FAR to reflect the previous language of 
FAR 4.705-2 exactly as it was written prior to revision of this 
subsection by FAC 97-18, Item IV, General Records Schedule (FAR case 
1999-615) published in the Federal Register on June 6, 2000 (65 FR 
36012). It was brought to the attention of the Councils that the prior 
change to FAR 4.705-2 made in FAC 97-18 inadvertently resulted in 
longer record retention periods for contractors and subcontractors. 
This final rule--
    [sbull] Revises the subsection title of FAR 4.705-2 to read ``Pay 
administration records'' instead of ``Construction contract pay 
administration records,'' thus, making all record retention 
requirements in the entire subsection applicable to all contracts 
rather than limiting it to construction contracts;
    [sbull] Revises FAR 4.705-2(a) to change from a record retention 
period of 3 years after completion of contract unless

[[Page 70523]]

contract performance is the subject of enforcement action, to 4 years 
after generation of the records.
    For the period from June 6, 2000, through the effective date of 
this final rule, compliance with either the record retention 
requirements contained in this rule or the requirements published in 
FAC 97-18 is acceptable.

Item II--Executive Order 13202, Preservation of Open Competition and 
Government Neutrality Towards Government Contractors' Labor Relations 
on Federal and Federally Funded Construction Projects (FAR Case 2001-
016)

    This final rule terminates the stay and adopts the May 16, 2001, 
interim rule as final without change. The rule amends FAR parts 17, 22, 
and 36 to implement Executive Order 13202, as amended by Executive 
Order 13208. Contracting officers, or any construction manager acting 
on behalf of the Government, may not require or prohibit offerors, 
contractors, or subcontractors from entering into or adhering to 
project labor agreements with one or more labor organizations. It also 
permits agency heads to exempt a project from the requirements of the 
Executive order under special circumstances, but the exemption may not 
be related to the possibility of, or an actual, labor dispute.

Item III--Caribbean Basin Country End Products (FAR Case 2000-306)

    The interim rule published in the Federal Register as Item V of FAC 
2001-04 (67 FR 6116, February 8, 2002), is converted to a final rule 
with changes. The interim rule implemented the determination of the 
United States Trade Representative (USTR) to extend the treatment of 
certain end products, from countries designated by the President as 
beneficiaries under the Caribbean Basin Economic Recovery Act, as 
eligible products under the Trade Agreements Act, with the exception of 
end products from the Dominican Republic, Honduras, and Panama. It also 
implemented Section 211 of the United States--Caribbean Basin Trade 
Partnership Act and the determination of the USTR as to which countries 
qualify for the enhanced trade benefits under that Act. However, on 
July 12, 2002, the USTR published a notice in the Federal Register to 
reinstate the treatment on Government procurement of products from 
Honduras. The notice stated that products of Honduras shall be treated 
as eligible products for purposes of section 1-101 of Executive Order 
12260. Such treatment shall not apply to products originating in 
Honduras that are excluded from duty-free treatment under 19 U.S.C. 
2703(b). The determination to reinstate Honduras as published by the 
USTR has been incorporated in this final rule.

Item IV--Financing Policies (FAR Case 2000-007)

    This final rule revises certain financing policies at FAR part 32, 
Contract Financing, and related contract provisions at FAR part 52. The 
rule--
    [sbull] Removes the restriction on use of performance-based 
payments on fixed-price contracts prior to definitization; and
    [sbull] Permits large businesses, in their billings to the 
Government, to include certain vendor and subcontractor costs that have 
been incurred, but not actually paid, provided that, ordinarily, they 
pay the subcontractor within 30 days.

Item V--Technical Amendments

    These amendments update references and make editorial changes at 
FAR 7.105(b)(4)(i) and 19.502-2(a).

    Dated: November 12, 2002.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 02-29094 Filed 11-21-02; 8:45 am]
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