[Federal Register Volume 73, Number 181 (Wednesday, September 17, 2008)]
[Rules and Regulations]
[Pages 53990-53992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21383]



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Part III





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1, Parts 2, 4, et al.



Federal Acquisition Regulations; Final Rules, Interim Rules, and Small 
Entity Compliance Guide

  Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket FAR 2008-0003, Sequence 2]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-27; Introduction

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

ACTION:  Summary presentation of rules.

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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) 2005-27. 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.regulations.gov.

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

FOR FURTHER INFORMATION CONTACT:  The analyst whose name appears in the 
table below in relation to each FAR case. Please cite FAC 2005-27 and 
the specific FAR case numbers. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.

                                          List of Rules in FAC 2005-27
----------------------------------------------------------------------------------------------------------------
      Item                          Subject                             FAR case                 Analyst
----------------------------------------------------------------------------------------------------------------
I..............  Correcting Statutory References Related to     2007-020                 Cundiff.
                  theHigher Education Act of 1965.
II.............  Changing the Name of the Office of Small       2008-001                 Cundiff.
                  andDisadvantaged Business Utilization for
                  DoD.
III............  Administrative Changes to the FPI Blanket      2007-015                 Clark.
                  Waiver and the JWOD Program Name.
IV.............  Local Community Recovery Act of 2006.........  2006-014                 Clark.
V..............  Additional Requirements for Competition        2007-007                 Woodson.
                  Advocate AnnualReports.
VI.............  Contract Debts...............................  2005-018                 Murphy.
VII............  Subcontractor Requests for Bonds.............  2007-022                 Jackson.
VIII...........  Extension of Authority for Use of Simplified   2008-002                 Jackson.
                  Acquisition Procedures for Certain
                  Commercial Items.
IX.............  Enhanced Competition for Task and Delivery     2008-006                 Clark.
                  OrderContracts--Section 843 of the Fiscal
                  Year 2008 National Defense Authorization
                  Act(Interim).
X..............  Online Representations and Certifications      2006-025                 Woodson.
                  ApplicationReview.
XI.............  Cost Accounting Standards (CAS)                2007-002                 Chambers.
                  Administration andAssociated Federal
                  Acquisition Regulation Clauses (Interim).
XII............  CAS Administration...........................  2006-004                 Chambers.
XIII...........  Accepting and Dispensing of $1 Coin..........  2006-027                 Jackson.
XIV............  Technical Amendments.........................  .......................  .......................
----------------------------------------------------------------------------------------------------------------


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 2005-27 amends the FAR as specified below:

Item I--Correcting Statutory References Related to the Higher Education 
Act of 1965 (FAR Case 2007-020)

    This final rule amends the Federal Acquisition Regulation to 
reflect the correct public law citations for the definitions of 
minority institution and Hispanic-serving institution. The citations 
changed when the Higher Education Act of 1965 was amended by the Higher 
Education Amendments of 1998.

Item II--Changing the Name of the Office of Small and Disadvantaged 
Business Utilization for DoD (FAR Case 2008-001)

    This final rule amends the Federal Acquisition Regulation to change 
the name of the ``Office of Small and Disadvantaged Business 
Utilization'' to the ``Office of Small Business Programs'' for the 
Department of Defense. Section 904 of the National Defense 
Authorization Act for Fiscal Year 2006, Pub. L. 109-163, re-designated 
the ``Office of Small and Disadvantaged Business Utilization''.

Item III--Administrative Changes to the FPI Blanket Waiver and the JWOD 
Program Name (FAR Case 2007-015)

    This final rule amends the language in the Federal Acquisition 
Regulation to increase the blanket waiver threshold for small dollar-
value purchases from Federal Prison Industries by Federal agencies and 
also changes the name of the JWOD Program to the AbilityOne Program. 
These changes are administrative in nature and any impact will be 
minimal.

Item IV--Local Community Recovery Act of 2006 (FAR Case 2006-014)

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council have adopted as final, with a minor change to the 
second interim rule, two interim rules amending the Federal Acquisition 
Regulation (FAR) to implement amendments to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act. The first interim rule 
was published in the Federal Register at 71 FR 44546, August 4, 2006. 
The second interim rule was published in the Federal Register at 72 FR 
63084, November 7, 2007.

Item V--Additional Requirements for Competition Advocate Annual Reports 
(FAR Case 2007-007)

    This final rule amends the Federal Acquisition Regulation 6.502 to 
require that annual reviews by executive agency competition advocates 
be provided in writing to both the agency senior procurement executive 
and the agency chief acquisition officer, and ensure task and delivery 
orders over $1,000,000 issued under multiple award contracts are 
properly planned, issued, and comply with 8.405 and 16.505. The rule 
provides for one of several initiatives by the Administrator, Office of 
Federal

[[Page 53991]]

Procurement Policy, to reinforce the use of competition and related 
practices for achieving a competitive environment. The rule 
reinvigorates the role of agencies' competition advocates, strengthens 
agencies' competition practices, and ensures best value for the 
taxpayer.

Item VI--Contract Debts (FAR Case 2005-018)

    This final rule amends and reorganizes FAR Subpart 32.6, Contract 
Debts, and amends associated other FAR coverage, based on the 
recommendations of the Department of Defense Contract Debt Integrated 
Process Team, to improve contract debt controls and procedures and to 
ensure consistency within and between existing regulations. FAR Subpart 
32.6 prescribes policies and procedures for identifying, collecting, 
and deferring collection of contract debts (including interest, if 
applicable). Throughout, the term ``responsible official'' has been 
replaced with the specific individual/organization responsible for 
fulfilling the FAR requirement. FAR 32.601 is revised to specify what 
constitutes a contract debt, rather than how a contract debt may arise. 
All discussions of contract debt determinations are consolidated in FAR 
32.603, including the responsibility of the contracting officer in 
making debt determinations. All discussions of the demand for payment 
are consolidated in FAR 32.604, including the requirements for demand 
letters. All discussions of final decisions are consolidated in FAR 
32.605. FAR 32.606 includes all coverage on debt collections, including 
when responsibility should be transferred to the Department of 
Treasury. All discussions of interest are consolidated at FAR 32.608, 
including how to compute interest. The Government's right to make a 
demand for payment and start the interest clock running under the 
contract is ensured, as is the Government's right to make a demand for 
payment without first issuing a final decision of the contracting 
officer. A final decision is required only if the contractor disagrees 
with the demand for payment.

Item VII--Subcontractor Requests for Bonds (FAR Case 2007-022)

    This final rule amends the list of laws inapplicable to commercial 
items, to clarify that the existing regulations at FAR 28.106-4, 
Contract clause, and 52.228-12, Prospective Subcontractor Requests for 
Bonds, do not apply to commercial items. Section 806(a)(3) of Pub. L. 
102-190, as amended by Sections 2091 and 8105 of Pub. L. 103-355 will 
be included in the list at FAR 12.503(a) and 12.504(a).

Item VIII--Extension of Authority for Use of Simplified Acquisition 
Procedures for Certain Commercial Items (FAR Case 2008-002)

    This final rule amends the Federal Acquisition Regulation to 
implement Section 822 of the National Defense Authorization Act for 
Fiscal Year 2008 (Pub. L. 110-181). Section 822 amends Section 4202(e) 
of the Clinger-Cohen Act of 1996 (division D of Pub. L. 104-106; 110 
Stat. 652; 10 U.S.C. 2304 note) by extending until January 1, 2010, the 
timeframe in which an agency may use simplified procedures to purchase 
commercial items in amounts greater than the simplified acquisition 
threshold, but not exceeding $5,500,000 ($11 million for acquisitions 
as described in 13.500(e)).

Item IX--Enhanced Competition for Task and Delivery Order Contracts--
Section 843 of the Fiscal Year 2008 National Defense Authorization Act 
(FAR Case 2008-006) (Interim)

    This interim rule amends Federal Acquisition Regulation Subpart 
16.5 to implement Section 843 of the Fiscal Year 2008 National Defense 
Authorization Act (Pub. L. 110-181). The provisions of Section 843 
include: (1) Limitation on single award task or delivery order 
(Indefinite-Delivery Requirements, and Indefinite-Quantity) type 
contracts greater than $100 million; (2) Enhanced competition for task 
and delivery orders in excess of $5 million; and (3) Protest on orders 
on the grounds that the order increases the scope, period, maximum 
value of the contract under which the order is issued; or valued in 
excess of $10 million. FAR sections 16.503 and 16.504, as amended by 
this rule, are applicable to single award task or delivery order 
contracts awarded on or after May 27, 2008. FAR section 16.505, as 
amended by this rule, is applicable to orders awarded on or after May 
27, 2008 on existing contracts as well as new contracts.

Item X--Online Representations and Certifications Application Review 
(FAR Case 2006-025)

    This final rule adopts as final, without change, the interim rule 
published in the Federal Register at 72 FR 46359, August 17, 2007. The 
rule amends FAR 23.406 and 23.906 to revise the prescriptions for the 
use of 52.223-9 and 52.223-14 to provide for their use under the same 
circumstances as the prescription for use of their associated 
provisions. These revisions ensure compliance with the requirements of 
40 CFR part 247 and 42 U.S.C. 11023.

Item XI--Cost Accounting Standards (CAS) Administration and Associated 
Federal Acquisition Regulation Clauses (FAR Case 2007-002) (Interim)

    The subject case is revising the Federal Acquisition Regulation 
(FAR) clauses concerning the administration of Cost Accounting 
Standards (CAS) to maintain consistency between the CAS rules and the 
FAR.

Item XII--CAS Administration (FAR Case 2006-004)

    This final rule adopts, with minor changes, the proposed rule 
published in the Federal Register at 71 FR 58338, October 3, 2006, 
amending the Federal Acquisition Regulation to implement revisions to 
the regulations related to the administration of the Cost Accounting 
Standards as they pertain to contracts with foreign concerns, including 
United Kingdom concerns.

Item XIII--Accepting and Dispensing of $1 Coin (FAR Case 2006-027)

    This final rule adopts, with change, the interim rule published in 
the Federal Register at 72 FR 46361, August 17, 2007. This final rule 
implements the Presidential $1 Coin Act of 2005 (Pub. L. 109-145). The 
Presidential $1 Coin Act of 2005 requires the Secretary of the Treasury 
to mint and issue annually four new $1 coins bearing the likenesses of 
the Presidents of the United States in the order of their service and 
to continue to mint and issue ``Sacagawea-design'' coins for 
circulation. In order to promote circulation of the coins, Section 104 
of the Public Law also requires that Federal agencies take action so 
that, by January 1, 2008, entities that operate any business, including 
vending machines, on any premises owned by the United States or under 
the control of any agency or instrumentality of the United States, are 
capable of accepting and dispensing $1 coins and that the entities 
display notices of this capability on the business premises. Pub. L. 
110-147 was enacted to amend Section 5112(p)(1)(A) of Title 31, United 
States Code, to allow an exception from the $1 coin dispensing 
capability requirement for those vending machines that do not receive 
currency denominations greater than $1. Contracting officers have been 
instructed in the Applicability Date of the preamble to modify 
contracts upon request of the contractor, to change the older version 
of the clause to the newer version without requiring consideration from 
the contractor.

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Item XIV--Technical Amendments

    Editorial changes are made at FAR 15.404-1 and 52.212-5.

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

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2005-27 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 2005-27 is 
effective October 17, 2008, except for Items VII, VIII, IX, X, XIII, 
and XIV which are effective September 17, 2008.

    Dated: September 5, 2008.
Shay D. Assad,
Director, Defense Procurement and Acquisition Policy.

    Dated: September 8, 2008.
David A. Drabkin,
 Senior Procurement Executive & Deputy Chief Acquisition Officer, 
Office of the Chief Acquisition Officer, U.S. General Services 
Administration.

    Dated: August 26, 2008.
William P. McNally,
Assistant Administrator for Procurement, National Aeronautics and Space 
Administration.
[FR Doc. E8-21383 Filed 9-16-08; 8:45 am]
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