[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Rules and Regulations]
[Pages 27545-27546]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11147]

[[Page 27545]]

Vol. 77


No. 91

May 10, 2012

Part II

Department of Defense


General Services Administration


National Aeronautics and Space Administration


48 CFR Chapter 1

Federal Acquisition Regulations; Final Rules

Federal Register / Vol. 77, No. 91 / Thursday, May 10, 2012 / Rules 
and Regulations

[[Page 27546]]





48 CFR Chapter 1

[Docket FAR 2012-0080, Sequence 4]

Federal Acquisition Regulation; Federal Acquisition Circular 
2005-59; Introduction

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

ACTION: Summary presentation of final and interim rules.


SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by the Civilian Agency Acquisition Council and 
the Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 2005-59. 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 2005-59 and 
the specific FAR case numbers. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat at 202-501-

                      List of Rules in FAC 2005-59
     Item             Subject           FAR Case           Analyst
I.............  Prohibition on             2012-013  Jackson.
                 Contracting With
                 Inverted Domestic
II............  Free Trade                 2012-012  Davis.
III...........  Revision of Cost           2012-003  Chambers.

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these FAR cases, refer to 
the specific item numbers and subject set forth in the documents 
following these item summaries. FAC 2005-59 amends the FAR as specified 

Item I--Prohibition on Contracting With Inverted Domestic Corporations 
(FAR Case 2012-013) (Interim)

    This interim rule implements section 738 of Division C of the 
Consolidated Appropriations Act, 2012 (Pub. L. 112-74), which prohibits 
the award of contracts using Fiscal Year 2012 appropriated funds to any 
foreign incorporated entity that is treated as an inverted domestic 
corporation or to any subsidiary of such an entity. This interim rule 
extends an existing prohibition that applied to use of Fiscal Years 
2008 through 2010 funds. Contracting officers are prohibited from 
awarding contracts using appropriated funds to any foreign incorporated 
entity that is treated as an inverted domestic corporation or to any 
subsidiary of such entity, unless an exception applies. The exceptions 
are at FAR 9.108-2. This rule is not expected to have an effect on 
small business because this rule will only impact an offeror that is an 
inverted domestic corporation and wants to do business with the 
Government. Small business concerns are unlikely to have been 
incorporated in the United States and then reincorporated in a tax 

Item II--Free Trade Agreement--Colombia (FAR Case 2012-012)

    This interim rule implements a new Free Trade Agreement with 
Colombia (see the United States--Colombia Trade Promotion Agreement 
Implementation Act (Pub. L. 112-42) (19 U.S.C. 3805 note)).
    This Trade Promotion Agreement is a free trade agreement that 
provides for mutually non-discriminatory treatment of eligible products 
and services from Colombia. This interim rule is not expected to have a 
significant economic impact on a substantial number of small entities.

Item III--Revision of Cost Accounting Standards Threshold (FAR Case 

    This final rule revises the cost accounting standards (CAS) 
threshold in order to implement in the FAR a recent rule of the Cost 
Accounting Standards Board and statutory requirements. The threshold 
now equals the Truth in Negotiations Act (TINA) threshold, currently 
$700,000. There is no impact on small businesses as they are exempt 
from CAS pursuant to 48 CFR 9903.201-1(b).

Dated: May 3, 2012.

Laura Auletta,

Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Federal Acquisition Circular (FAC) 2005-59 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2005-59 is 
effective May 10, 2012, except for Item II which is effective May 15, 

    Dated: May 3, 2012.
Richard Ginman,
Director, Defense Procurement and Acquisition Policy.
    Dated: May 2, 2012.
Joseph A. Neurauter,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, 
U.S. General Services Administration.
    Dated: May 3, 2012.
William P. McNally,
Assistant Administrator for Procurement, National Aeronautics and Space 
[FR Doc. 2012-11147 Filed 5-9-12; 8:45 am]