[Federal Register Volume 68, Number 238 (Thursday, December 11, 2003)]
[Rules and Regulations]
[Pages 69226-69227]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30471]



[[Page 69225]]

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Part V





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1, et al.



Federal Acquisition Circular 2001-18; Final Rules

  Federal Register / Vol. 68, No. 238 / Thursday, December 11, 2003 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Circular 2001-18; Introduction

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

ACTION: Summary presentation of final rules and technical amendments 
and corrections.

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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 in this Federal Acquisition 
Circular (FAC) 2001-18. 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 at (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 2001-18 and specific FAR case number(s). Interested parties may 
also visit our Web site at http://www.arnet.gov/far.

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      Item                          Subject                             FAR case                 Analyst
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I..............  New Consolidated Form for Selection of         2000-608                 Davis.
                  Architect-Engineer Contractors.
II.............  Depreciation Cost Principle..................  2001-026                 Loeb.
III............  Federal Procurement Data System..............  2003-019                 Zaffos.
IV.............  Increased Federal Prison Industries, Inc.      2003-001                 Nelson.
                  Waiver Threshold.
V..............  Debarment and Suspension--Order Placement and  2002-010                 Goral.
                  Option Exercise.
VI.............  Insurance and Pension Costs..................  2001-037                 Loeb.
VII............  Debriefing--Competitive Acquisition..........  2002-014                 Wise.
VIII...........  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.
    FAC 2001-18 amends the FAR as specified below:

Item I--New Consolidated Form for Selection of Architect-Engineer 
Contractors (FAR Case 2000-608)

    This final rule amends the FAR to replace SF 254, Architect-
Engineer and Related Services Questionnaire, and SF 255, Architect-
Engineer and Related Services Questionnaire for Specific Projects, with 
SF 330, Architect-Engineer Qualifications. The SF 330 reflects current 
architect-engineer practices in a streamlined and updated format and is 
organized into data blocks that readily support automation. An 
interagency ad hoc committee developed the SF 330. It was based on the 
results of a joint Federal-industry survey of the existing SFs 254 and 
255 conducted by the Standing Committee on Procurement and Contracting 
of the Federal Facilities Council (FCC) in 1995 and published in 1996 
as FCC Report Number 130, entitled ``Survey on the Use of SFs 254 and 
255 for Architect-Engineer Qualifications.'' The survey's purpose was 
to evaluate the current use of the forms, which are used for the 
submission of qualifications by architect-engineer (A-E) firms 
interested in Federal contracts, and to identify possible improvements 
which would enable the existing forms to better serve the needs of 
Federal agencies and the A-E industry.
    The policies and the SF 330, Architect-Engineer Qualifications, of 
this final rule are effective for all agencies and their solicitations 
issued on or after January 12, 2004. However, agencies may delay 
implementation of this final rule until June 8, 2004, at which time it 
becomes mandatory for all agencies and their solicitations issued on or 
after that date. Use of the SF 330 becomes effective January 12, 2004. 
However, until June 8, 2004, agencies may authorize the continued use 
of the SFs 254 and 255 instead.

Item II--Depreciation Cost Principle (FAR Case 2001-026)

    This final rule amends FAR parts 2 and 31 to revise the 
depreciation cost principle (FAR 31.205-11) by improving clarity and 
structure and removing unnecessary and duplicative language. The case 
was initiated at the request of the Aerospace Industries Association. 
The rule does not change the allowability of depreciation costs. 
However, changes have been made that may effect the determination of 
depreciable costs for tangible personal property; for example, only 
residual values in excess of 10 percent need be used and residual 
values need not be recognized when certain depreciation methods are 
used. This rule is of particular interest to contractors and 
contracting officers who use cost analysis to price contracts and 
modifications, and who determine or negotiate reasonable costs in 
accordance with a clause of a contract, e.g., price revision of fixed-
price incentive contracts, terminated contracts, or indirect cost 
rates.

Item III--Federal Procurement Data System (FAR Case 2003-019)

    This final rule amends the FAR to revise FAR 4.602 to--
    [sbull] Reflect that the information in FPDS-NG is available to the 
general public;
    [sbull] Provide the website for FPDS-NG, which must be entered as 
https://www.fpds.gov;
    [sbull] Delete the physical address for the Federal Procurement 
Data Center;
    [sbull] Allow agencies to report all transactions between $2,500 
and $25,000 to FPDS-NG as either individual contract actions or summary 
contract actions until September 30, 2004;
    [sbull] Require all contract actions over $2,500 be reported to 
FPDS-NG as individual contract actions after September 30, 2004;
    [sbull] Require agencies to insert the provision at 52.204-6, Data 
Universal Numbering System (DUNS) Number, in solicitations when the 
expected award amount will result in the generation of an individual 
contract action report and the contract does not include FAR clause 
52.204-7, Central Contractor Registration; and
    [sbull] Eliminate the use of the SF 279, Federal Procurement Data 
System (FPDS)--Individual Contract Action

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Report, and the SF 281, Federal Procurement Data System (FPDS)--Summary 
Contract Action Report ($25,000 or Less).

Item IV--Increased Federal Prison Industries, Inc. Waiver Threshold 
(FAR Case 2003-001)

    The interim rule published as Item V of FAC 2001-014 is adopted as 
final without change. The interim rule amended the FAR to increase the 
Federal Prison Industries, Inc.'s (FPI) clearance exception threshold 
at FAR 8.606(e) from $25 to $2,500, and deleted the criterion that 
delivery is required within 10 days. Federal agencies are not required 
to make purchases from FPI of products on FPI's Schedule that are at or 
below this threshold. Federal agencies, however, may continue to 
consider and purchase products from FPI that are at or below $2,500.

Item V--Debarment and Suspension--Order Placement and Option Exercise 
(FAR Case 2002-010)

    This final rule amends FAR part 9 to address the placement of 
orders under existing contracts and agreements with contractors that 
have been debarred, suspended, or proposed for debarment.

Item VI--Insurance and Pension Costs (FAR Case 2001-037)

    This final rule amends the FAR to revise the Insurance and 
Indemnification cost principle (FAR 31.205-19), and the portion of the 
Compensation for Personal Services cost principle relating to pension 
costs (FAR 31.205-6(j)). The rule revises both cost principles by 
improving clarity and structure, and removing unnecessary and 
duplicative language. Changes to FAR 31.205-6(j) include: Use of 
terminology consistent with Cost Accounting Standard (CAS) 412, 
Measurement of Pension Costs, and CAS 413, Adjustment and Allocation of 
Pension Cost; how the Government receives pension cost adjustment 
amounts for CAS-covered and non-CAS-covered contracts; revision of the 
allowability limitation on employee stock ownership plan (ESOP) 
contributions; and removal of the requirement for the contracting 
officer to approve the ESOP contribution rate. Changes to FAR 31.205-19 
include the elimination of the U.S. Treasury discount rate provision 
for computing actual losses. The case was initiated as a result of 
comments and recommendations received from industry and Government 
representatives during a series of public meetings. This rule is of 
particular interest to contractors and contracting officers who use 
cost analysis to price contracts and modifications, and who determine 
or negotiate reasonable costs in accordance with a clause of a 
contract, e.g., price revision of fixed-price incentive contracts, 
terminated contracts, or indirect cost rates.

Item VII--Debriefing--Competitive Acquisition (FAR Case 2002-014)

    This rule amends the FAR to include requirements for debriefing 
unsuccessful offerors under competitive proposals, as required by 
Sections 1014 and 1064 of the Federal Acquisition Streamlining Act of 
1994, as amended, 10 U.S.C. 2305(b) and 41 U.S.C. 253b, respectively. 
Specifically, 10 U.S.C. 2305(b)(5)(D) and 41 U.S.C. 253b(e)(4) requires 
each solicitation for competitive proposals to include a statement that 
prescribes minimal information that shall be disclosed in postaward 
debriefings. This rule also amends FAR 52.212-1 and 52.215-1 to 
implement the statutory requirements, and the past performance 
debriefing requirement at FAR 15.506(d)(2), by listing all the 
prescribed minimal information that shall be disclosed in postaward 
debriefings.

Item VIII--Technical Amendments

    This amendment makes editorial changes at FAR 1.201-1(b)(1); 6.302-
7(c)(1)(i); 13.500(d); 25.701(b); 52.204-7, Alternate I; 52.211-2(a) 
and (b); and 52.225-13(b).

    Dated: December 4, 2003.
Laura Auletta,
Director, Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2001-18 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.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2001-18 are 
effective January 12, 2004, except for Items III, IV, and VIII which 
are effective December 11, 2003.

    Dated: December 1, 2003.
Domenic C. Cipicchio,
Acting Director, Defense Procurement and Acquisition Policy.
    Dated: December 1, 2003.
Joseph A. Neurauter,
Acting Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.
    Dated: November 24, 2003.
Tom Leudtke,
Assistant Administrator for Procurement, National Aeronautics and Space 
Administration.
[FR Doc. 03-30471 Filed 12-10-03; 8:45 am]
BILLING CODE 6820-EP-P