[Federal Register Volume 69, Number 243 (Monday, December 20, 2004)]
[Rules and Regulations]
[Pages 76340-76341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27632]



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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 2001-26; Introduction, Federal Acquisition 
Regulation; Electronic Representations and Certifications, et al.; 
Final Rules

  Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / 
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 2001-26; Introduction

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

ACTION: Summary presentation of final rules and a technical amendment.

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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) 2001-26. 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.acqnet.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 2001-26 and specific FAR case number(s). Interested parties 
may also visit our website at http://www.acqnet.gov/far.

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      Item                          Subject                             FAR case                 Analyst
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I..............  Electronic Representations and Certifications  2002-024                 Zaffos.
II.............  Excluded Parties List System Enhancement.....  2002-023                 Goral.
III............  Special Emergency Procurement Authority......  2003-022                 Zaffos.
IV.............  Notification of Employee Rights Concerning     2004-010                 Goral.
                  Payment of Union Dues or Fees (Interim).
V..............  Mentor Prot[eacute]g[eacute] Program--         2003-010                 Cundiff.
                  Delegation of Approval Authority for Mentor
                  Prot[eacute]g[eacute] Agreements.
VI.............  Applicability of the Cost Principles and       2001-018                 Loeb.
                  Penalties for Unallowable Costs.
VII............  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 2001-26 amends the FAR as specified below:

Item I--Electronic Representations and Certifications (FAR Case 2002-
024)

    This final rule requires offerors to provide representations and 
certifications electronically via the BPN website; to update the 
representations and certifications as necessary, but at least annually, 
to keep them current, accurate and complete; and to make changes that 
affect only one solicitation by completing the appropriate sections of 
either paragraph (j) of FAR provision 52.212-3 or FAR provision 52.204-
8, whichever is included in the solicitation. This change represents a 
conversion of a paper-based process to a more efficient electronic 
process to obtain offerors' representations and certifications. It will 
also significantly reduce the paperwork burden for both offerors and 
contracting officers.

Item II--Excluded Parties List System Enhancement (FAR Case 2002-023)

    This final rule amends the FAR to incorporate the Excluded Parties 
List System (EPLS), GSA's new searchable on-line electronic list of 
parties excluded from doing business with the Federal Government. The 
EPLS enables agencies to directly input data into this system and 
obviates the need for the hard copy List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs. The EPLS will provide 
more up-to-date and readily accessible information to the contracting 
officer on parties excluded from doing business with the Federal 
Government.

Item III--Special Emergency Procurement Authority (FAR Case 2003-022)

    This rule finalizes the interim rule 2003-022 by including under 
FAR subpart 13.5 the acquisition of supplies and services that meet the 
definition of a commercial item in FAR 2.101, and which, as determined 
by the head of the agency, are to be used to support a contingency 
operation. This final rule implements Section 1443 of the Services 
Acquisition Reform Act of 2003 (41 U.S.C. 428a) and also incorporates 
the higher thresholds authorized by Section 822 of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005. This rule 
allows the contracting officer expanded use of Simplified Acquisition 
and Commercial Items procedures when acquiring supplies or services 
that, as determined by the head of the agency, are to be used in 
support of a contingency operation or to facilitate the defense against 
or the recovery from nuclear, biological, chemical or radiological 
attack.

Item IV--Notification of Employee Rights Concerning Payment of Union 
Dues or Fees (FAR Case 2004-010) (Interim)

    This interim rule amends FAR Parts 2, 22, and 52 to implement 
Executive Order (E.O.) 13201, Notification of Employee Rights 
Concerning Payment of Union Dues or Fees, and Department of Labor 
regulations at 29 CFR part 470. The rule requires Government 
contractors and subcontractors to post notices informing their 
employees that under Federal law they cannot be required to join a 
union or maintain membership in a union to retain their jobs. The 
required notice also advises employees who are not union members that 
they can object to the use of their union dues for certain purposes. 
This rule applies to Federal contractors and subcontractors with 
contracts or subcontracts that exceed the simplified acquisition 
threshold, unless covered by an exemption granted by the Secretary of 
Labor.

Item V--Mentor Prot[eacute]g[eacute] Program--Delegation of Approval 
Authority for Mentor Prot[eacute]g[eacute] Agreements (FAR Case 2003-
010)

    This final rule amends FAR 19.702, Statutory Requirements, to 
change the approval authority of the Mentor Prot[eacute]g[eacute] 
Agreements to the DoD Military Departments or Defense Agencies and to 
make some minor changes for clarification. This change is being made in 
order for DoD to streamline and

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transform itself to more effectively achieve its mission.

Item VI--Applicability of the Cost Principles and Penalties for 
Unallowable Costs (FAR Case 2001-018)

    This final rule increases the threshold at FAR 42.709(b) and FAR 
42.709-6 from $500,000 to $550,000 for contracts subject to penalties 
if a contractor includes expressly unallowable costs in a claim for 
reimbursement. The threshold was increased to reflect inflation and is 
authorized by 10 U.S.C. 2324(l) and 41 U.S.C. 256(l).
    The rule is of importance to contracting officers and contractors 
who negotiate contracts and modifications, and determine costs in 
accordance with FAR Part 31 contract cost principles.

Item VII--Technical Amendments

    Editorial changes are made at FAR 11.201(d)(2)(i), 41.301(a), 
44.203(b)(1), 51.102(c)(1), and in the introductory text of FAR 
provision 52.219-1 in order to update references.

    Dated: December 9, 2004.
Laura Auletta,
Director, Contract Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2001-26 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 2001-26 is 
effective December 20, 2004, except for Item I, which is effective 
January 1, 2005, and Items II, III, V, and VI, which are effective 
January 19, 2005.

    Dated: December 6, 2004.
Deidre A. Lee,
Director, Defense Procurement and Acquisition Policy.

    Dated: December 8, 2004.
David A. Drabkin,
 Senior Procurement Executive, Office of the Chief Acquisition Officer, 
General Services Administration.

    Dated: December 2, 2004.
Tom Luedtke,
Deputy Chief Acquisition Officer, National Aeronautics and Space 
Administration.
[FR Doc. 04-27632 Filed 12-17-04; 8:45 am]
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