[Federal Register Volume 73, Number 181 (Wednesday, September 17, 2008)]
[Rules and Regulations]
[Pages 54007-54008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21381]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 12

[FAC 2005-27; FAR Case 2007-022; Item VII; Docket 2008-0001; Sequence 
13]
RIN 9000-AL03


Federal Acquisition Regulation; FAR Case 2007-022, Subcontractor 
Requests for Bonds

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 on a final rule 
amending the Federal Acquisition Regulation (FAR) to clarify that the 
clause ``Prospective Subcontractor Requests for Bonds'' does not apply 
to commercial items.

DATES: Effective Date: September 17, 2008.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Jackson, Procurement 
Analyst, at (202) 208-4949 for clarification of content. For 
information pertaining to status or publication schedules, contact the 
FAR Secretariat at (202) 501-4755. Please cite FAC 2005-27, FAR case 
2007-022.

SUPPLEMENTARY INFORMATION:

A. Background

    The FAR clause at FAR 52.228-12, Prospective Subcontractor Requests 
for Bonds, implemented Section 806(a)(3) of Public Law 102-190, as 
amended, which specifies that, upon the request of a prospective 
subcontractor or supplier offering to furnish labor or material for the 
performance of a construction contract for which a payment bond has 
been furnished to the United States pursuant to the Miller Act, the 
contractor shall promptly provide a copy of such payment bond to the 
requestor. In conjunction with performance bonds, payment bonds are 
used in Government construction contracts to secure fulfillment of the 
contractor's obligations under the contract and to assure that the 
contractor makes all payments, as required by law, to persons 
furnishing labor or material in performance of the contract. The FAR 
clause at 52.228-12, which has an effective date of October 1, 1995, 
reflects the addition of Section 806(a)(3) of Pub L. 102-190, as 
amended by Sections 2091 and 8105 of Pub. L. 103-355, at FAR 12.503(a) 
and 12.504(a). When the implementation of FAR 28.106-4 occurred, the 
appropriate incorporation of the FAR clause at 52.228-12, Prospective 
Subcontractor Requests for Bonds, was accomplished, but not the 
incorporation of the associated statutory citation in FAR 12.503 and 
12.504.
    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 Regulatory Flexibility Act does not apply to this rule. This 
final rule does not constitute a significant FAR revision within the 
meaning of FAR 1.501 and Pub. L. 98-577, and publication for public 
comments is not required. However, the Councils will consider comments 
from small entities concerning the affected FAR Part 12 in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 601, et seq. (FAC 2005-27, FAR case 
2007-022), in correspondence.

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 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Part 12

    Government procurement.

    Dated: September 9, 2008.
Al Matera,
Director, Office of Acquisition Policy.

0
Therefore, DoD, GSA, and NASA amend 48 CFR part 12 as set forth below:

PART 12--ACQUISITION OF COMMERCIAL ITEMS

0
1. The authority citation for 48 CFR part 12 continues to read as 
follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).
0
2. Amend section 12.503 by revising the section heading and adding 
paragraph (a)(7) to read as follows:

[[Page 54008]]

12.503   Applicability of certain laws to Executive agency contracts 
for the acquisition of commercial items.

    (a) * * *
    (7) Section 806(a)(3) of Pub. L. 102-190, as amended by Sections 
2091 and 8105 of Pub. L. 103-355, Payment Protections for 
Subcontractors and Suppliers (see 28.106-6).
* * * * *
0
3. Amend section 12.504 by adding paragraph (a)(13) to read as follows:


12.504   Applicability of certain laws to subcontracts for the 
acquisition of commercial items.

    (a) * * *
    (13) Section 806(a)(3) of Pub. L. 102-190, as amended by Sections 
2091 and 8105 of Pub. L. 103-355, Payment Protections for 
Subcontractors and Suppliers (see 28.106-6).
* * * * *
[FR Doc. E8-21381 Filed 9-16-08; 8:45 am]
BILLING CODE 6820-EP-S