[Federal Register Volume 71, Number 124 (Wednesday, June 28, 2006)]
[Rules and Regulations]
[Pages 36922-36923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-5712]



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Part IV





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1 et al.



Federal Acquisition Regulation; Final Rules

  Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Docket FAR--2006-0023


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-10; Introduction

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

ACTION: Summary presentation of final and interim 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) 2005-10. 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.acquisition.gov/far.

DATES: For effective dates and comment dates, see separate documents 
which follow.

FOR FURTHER INFORMATION CONTACT 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 2005-10 and specific FAR case 
number(s). Interested parties may also visit our Web site at http://www.acquisition.gov/far. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.

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      Item                          Subject                             FAR case                 Analyst
----------------------------------------------------------------------------------------------------------------
I..............  Central Contractor Registration --Taxpayer     2005-007                 Jackson.
                  Identification Number (TIN) Validation.
II.............  Procedures Related to Procurement Center       2006-003                 Cundiff.
                  Representatives.
III............  Submission of Cost or Pricing Data on          2004-035                 Olson.
                  Noncommercial Modifications of Commercial
                  Items.
IV.............  Implementation of Wage Determinations OnLine   2005-033                 Sochon.
                  (WDOL) (Interim).
V..............  Free Trade Agreements--El Salvador, Honduras,  2006-006                 Sochon.
                  and Nicaragua (Interim).
VI.............  Buy-Back of Assets...........................  2004-014                 Olson.
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 2005-10 amends the FAR as specified below:

Item I--Central Contractor Registration--Taxpayer Identification Number 
(TIN) Validation (FAR Case 2005-007)

    The rule adds the process of the government validating a Central 
Contractor Registration (CCR) registrant's taxpayer identification 
number (TIN) with the Internal Revenue Service (IRS) to improve the 
quality of data in the CCR and the federal procurement system. 
Additionally, the rule removes outdated language requiring 
modifications of contracts prior to December 31, 2003, regarding CCR.

Item II--Procedures Related to Procurement Center Representatives (FAR 
Case 2006-003)

    This final rule amends the Federal Acquisition Regulation (FAR) to 
provide internal procedures to cover situations when the FAR requires 
interaction with a procurement center representative and one has not 
been assigned to the procuring activity or contract administration 
office. It primarily impacts contracting officers and procurement 
center representatives.

Item III--Submission of Cost or Pricing Data on Noncommercial 
Modifications of Commercial Items (FAR Case 2004-035)

    This final rule amends the interim rule issued in FAC 2005-004 and 
implements an amendment to 10 U.S.C. 2306a. The policy requires that 
the exception from the requirement to obtain certified cost or pricing 
data for a commercial item does not apply to noncommercial 
modifications of a commercial item that are expected to cost, in the 
aggregate, more than $500,000 or 5 percent of the total price of the 
contract, whichever is greater. Section 818 of Public Law 108-375, the 
Ronald W. Reagan National Defense Authorization Act of Fiscal Year 2005 
applies to offers submitted, and to modifications of contracts or 
subcontracts made, on or after June 1, 2005. This new policy results 
from a statute which changed 10 U.S.C. 2306a. 10 U.S.C. 2306a applies 
only to contracts or task or delivery orders funded by DoD, NASA, and 
the Coast Guard. The new policy does, however, also apply to contracts 
awarded or task or delivery orders placed on behalf of DoD, NASA, or 
the Coast Guard by an official of the United States outside of those 
agencies, because the statutory requirement of Section 818 applies to 
the funds provided by DoD, NASA, or the Coast Guard.
    The change to the interim rule clarifies the policy to ensure it is 
applied properly. The threshold in the rule applies to an instant 
contract action, not to the total value of all contract actions and, as 
applicable to subcontractors, the threshold applies to the value of the 
subcontract, not the value of the prime contract.

Item IV--Implementation of Wage Determinations OnLine (WDOL) (FAR Case 
2005-033) (Interim)

    This interim rule implements the Department of Labor (DOL) Wage 
Determinations OnLine (WDOL) internet website as the source for Federal 
contracting agencies to obtain wage determinations issued by the DOL 
for service contracts subject to the McNamara-O'Hara Service Contract 
Act (SCA) and for construction contracts subject to the Davis-Bacon Act 
(DBA). The rule amends the FAR to direct Federal contracting agencies 
to obtain DBA and SCA wage determinations from the WDOL website.
    The Contracting Officer (CO) will be able to check the WDOL website 
(http://www.wdol.gov) to find the applicable wage determination for a 
contract action subject to the SCA or DBA. If the WDOL database does 
not contain the applicable wage determination for a SCA contract 
action, the CO must use the e98 process to request a wage determination 
from DOL. The e98 means a DOL approved electronic application, 
(available at http://www.wdol.gov), whereby a contacting officer 
submits pertinent information to the DOL and requests a wage 
determination directly from the Wage and Hour Division. With regard to 
DBA requirements, if the WDOL

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database does not contain the applicable wage determination for a DBA 
contract action, the CO must request a wage determination by submitting 
SF-308 to DOL.
    The WDOL and e98 processes replace the paper Standard Forms 98 and 
98a. In addition, Standard Forms 99, 98, and 98a are deleted from FAR 
Part 53. This interim rule also incorporates new geographical 
jurisdictions for DOL's Wage and Hour Regional Offices and eliminates 
FAR references to the Government Printing Office (GPO) publication of 
general wage determinations.

Item V--Free Trade Agreements--El Salvador, Honduras, and Nicaragua 
(FAR Case 2006-006) (Interim)

    This interim rule allows contracting officers to purchase the goods 
and services of El Salvador, Honduras, and Nicaragua without 
application of the Buy American Act, if the acquisition is subject to 
the Free Trade Agreements. The U.S. Trade Representative negotiated the 
Dominican Republic--Central America-United States Free Trade Agreement 
with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the 
Dominican Republic. However, the agreements will not all take effect at 
the same time. This agreement with El Salvador, Honduras, and Nicaragua 
joins the North American Free Trade Agreement (NAFTA) and the 
Australia, Chile, Morocco, and Singapore Free Trade Agreements which 
are already in the FAR. The threshold for applicability of the 
Dominican Republic--Central America--United States Free Trade Agreement 
is $64,786 for supplies and services (the same as other Free Trade 
Agreements to date except Morocco and Canada) and $7,407,000 for 
construction (the same as all other Free Trade Agreements to date 
except NAFTA).

Item VI--Buy-Back of Assets (FAR Case 2004-014)

    This final rule amends the Federal Acquisition Regulation (FAR) 
contract cost principle for depreciation costs. The final rule adds 
language which addresses the allowability of depreciation costs of 
reacquired assets involved in a sale and leaseback arrangement.

Item VII--Technical Amendments

    Editorial changes are made at FAR 8.714, 33.102, and52.225-11 in 
order to update references.

    Dated: June 20, 2006.
Ralph De Stefano,
Director, Contract Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2005-10 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 2005-10 is 
effective, July 28, 2006 except for Items IV, V, and VII which are 
effective June 28, 2006.

    Dated: June 19, 2006.
Shay D. Assad,
Director, Defense Procurement and Acquisition Policy.

    Dated: June 20, 2006.
Roger D. Waldron,
Acting Senior Procurement Executive, Office of the Chief Acquisition 
Officer, General Services Administration.

    Dated: June 19, 2006.
Tom Luedtke,
Assistant Administrator for Procurement, National Aeronautics and Space 
Administration.
[FR Doc. 06-5712 Filed 6-27-06; 8:45 am]
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