[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Rules and Regulations]
[Pages 27551-27552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11152]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket FAR 2012-0081, Sequence 4]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-59; Small Entity Compliance Guide

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA),

[[Page 27552]]

and National Aeronautics and Space Administration (NASA).

ACTION: Small Entity Compliance Guide.

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SUMMARY: This document is issued under the joint authority of DOD, GSA, 
and NASA. This Small Entity Compliance Guide has been prepared in 
accordance with section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996. It consists of a summary of the rule 
appearing in Federal Acquisition Circular (FAC) 2005-59, which amends 
the Federal Acquisition Regulation (FAR). Interested parties may obtain 
further information regarding this rule by referring to FAC 2005-59, 
which precedes this document. These documents are also available via 
the Internet at http://www.regulations.gov.

DATES: May 10, 2012.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
the analyst whose name appears in the table below. Please cite FAC 
2005-59 and the FAR case number. For information pertaining to status 
or publication schedules, contact the Regulatory Secretariat at 202-
501-4755.

                      List of Rules in FAC 2005-59
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    Item              Subject             FAR Case          Analyst
------------------------------------------------------------------------
I            Prohition on Contracting        2012-013  Jackson.
              with Inverted Domestic
              Corporations.
II           Free Trade Agreement--          2012-012  Davis.
              Colombia.
III          Revision of Cost                2012-003  Chambers.
              Accounting Standards
              Threshold.
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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 
below:

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 
haven.

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 
2012-003)

    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.
[FR Doc. 2012-11152 Filed 5-9-12; 8:45 am]
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