[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)]
[Rules and Regulations]
[Pages 38313-38314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16218]
[[Page 38313]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR 2015-0051, Sequence No. 3]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-83; Small Entity Compliance Guide
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), 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 rules
appearing in Federal Acquisition Circular (FAC) 2005-83, which amends
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a
rule indicates that a regulatory flexibility analysis has been
prepared. Interested parties may obtain further information regarding
these rules by referring to FAC 2005-83, which precedes this document.
These documents are also available via the Internet at http://www.regulations.gov.
DATES: July 2, 2015.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
the analyst whose name appears in the table below. Please cite FAC
2005-83 and the FAR case number. For information pertaining to status
or publication schedules, contact the Regulatory Secretariat at 202-
501-4755.
Rules Listed in FAC 2005-83
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Item Subject FAR Case Analyst
------------------------------------------------------------------------
I *............. Inflation Adjustment 2014-022 Jackson.
of Acquisition-
Related Thresholds.
II.............. Prohibition on 2015-006 Jackson.
Contracting With
Inverted Domestic
Corporations--Repre
sentation and
Notification.
III............. Update to Product 2015-008 Jackson.
and Service Codes.
*IV............. Clarification on 2014-020 Jackson.
Justification for
Urgent
Noncompetitive
Awards Exceeding
One Year.
V............... Prohibition on 2014-017 Jackson.
Contracting with
Inverted Domestic
Corporations.
VI.............. Permanent Authority 2015-010 Jackson.
for Use of
Simplified
Acquisition
Procedures for
Certain Commercial
Items.
VII............. Technical Amendments
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these rules, refer to the
specific item numbers and subjects set forth in the documents following
these item summaries. FAC 2005-83 amends the FAR as specified below:
Item I--Inflation Adjustment of Acquisition-Related Thresholds (FAR
Case 2014-022)
This final rule amends the FAR to implement 41 U.S.C. 1908, which
requires an adjustment every five years of acquisition-related
thresholds for inflation using the Consumer Price Index for all urban
consumers, except the Construction Wage Rate Requirements statute
(Davis-Bacon Act), Service Contract Labor Standards statute, and trade
agreements thresholds (see FAR 1.109). As a matter of policy, DoD, GSA,
and NASA also use the same methodology to adjust nonstatutory FAR
acquisition-related thresholds.
This is the third review of FAR acquisition-related thresholds. The
Councils published a proposed rule in the Federal Register at 79 FR
70141 on November 25, 2014.
There is no change in the final rule from the proposed frequently-
used thresholds identified in the proposed rule:
The micro-purchase base threshold of $3,000 (FAR 2.101) is
increased to $3,500.
The simplified acquisition threshold (FAR 2.101) of
$150,000 is unchanged.
The FedBizOpps preaward and post-award notices (FAR part
5) remain at $25,000 because of trade agreements.
The threshold for use of simplified acquisition procedures
for acquisition of commercial items (FAR 13.500) is raised from $6.5
million to $7 million.
The cost or pricing data threshold (FAR 15.403-4) and the
statutorily equivalent Cost Accounting Standard threshold are raised
from $700,000 to $750,000.
The prime contractor subcontracting plan (FAR 19.702)
floor is raised from $650,000 to $700,000, and the construction
threshold of $1.5 million stays the same.
The threshold for reporting first-tier subcontract
information including executive compensation will increase from $25,000
to $30,000 (FAR subpart 4.14 and 52.204-10).
Item II--Prohibition on Contracting With Inverted Domestic
Corporations--Representation and Notification (FAR Case 2015-006)
This final rule amends the provision and clause of the FAR that
address the continuing Government-wide statutory prohibition (in effect
since fiscal year 2008) on the award of contracts using appropriated
funds to any foreign incorporated entity that is an inverted domestic
corporation (under section 835 of the Homeland Security Act of 2002,
codified at 6 U.S.C. 395) or to any subsidiary of such entity. In
particular, this rule modifies the existing representation at FAR
52.209-2 and adds a requirement in the clause at 52.209-10 to notify
the contracting officer if the contractor becomes an inverted domestic
corporation, or a subsidiary of an inverted domestic corporation,
during performance of the contract.
This rule will not have any significant effect on most contractors,
because few contractors are expected to become an inverted domestic
corporation or a subsidiary of an inverted domestic corporation during
contract performance. Small business concerns are particularly unlikely
to have been incorporated in the United States and then reincorporated
in a tax haven.
Item III--Update to Product and Service Codes (FAR Case 2015-008)
DoD, GSA, and NASA are revising the FAR to update the descriptions
of the Federal product and service codes to conform to the Federal
Procurement Data System Product and Service Codes Manual, August 2011
Edition. There is no change to the groups covered, and
[[Page 38314]]
the new descriptions better reflect product coverage.
This final rule is not required to be published for public comment,
because it does not change the Federal Supply Groups covered, but just
updates the descriptions of the listed product service groups to
reflect the current Product and Service Codes Manual. It does not
impact which products are subject to the service contract labor
standards or trade agreements.
Item IV--Clarification on Justification for Urgent Noncompetitive
Awards Exceeding One Year (FAR Case 2014-020)
DoD, GSA, and NASA are issuing a final rule amending the FAR to
clarify when a justification for noncompetitive contracts based on
urgency, exceeding one year, is needed. The rule comes as a response to
Government Accountability Office (GAO) report GAO-14-304, entitled
Federal Contracting: Noncompetitive Contracts Based on Urgency Need
Additional Oversight, dated March 2014.
This rule is not expected to have a significant impact on small
businesses. Contracting officers will benefit from this rule because it
clarifies when determinations of exceptional circumstances are needed
when awarding a noncompetitive contract on the basis of unusual and
compelling urgency, exceeding one year, either at time of award or
modified after contract award.
Item V--Prohibition on Contracting With Inverted Domestic Corporations
(FAR Case 2014-017)
This rule converts to a final rule, without change, an interim rule
that amended the provisions of the FAR that address the continuing
Governmentwide statutory prohibition (in effect since fiscal year 2008)
on the award of contracts using appropriated funds to any foreign
incorporated entity that is an inverted domestic corporation (under
section 835 of the Homeland Security Act of 2002, codified at 6 U.S.C.
395) or to any subsidiary of such entity. The interim rule amended FAR
9.108 to revise the FAR coverage, including the language of
solicitation provisions and contract clauses, so that it more clearly
reflects the ongoing, continuing nature of the statutory prohibition on
contracting with inverted domestic corporations and their subsidiaries.
This rule does not have an effect on small business because this
rule will only impact an offeror that is a foreign incorporated entity
that is treated as 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 VI--Permanent Authority for Use of Simplified Acquisition
Procedures for Certain Commercial Items (FAR Case 2015-010)
This is a final rule to amend FAR subparts 13.5 and 18.2 to
implement section 815 of the Carl Levin and Howard P. `Buck' McKeon
National Defense Authorization Act for Fiscal Year 2015 (Pub. L. 113-
291). Section 815 amends section 4202(e) of the Clinger-Cohen Act of
1996 (Divisions D and E of Pub. L. 104-106; 10 U.S.C. 2304 note) to
make permanent the test program for special simplified procedures for
purchases of commercial items greater than the simplified acquisition
threshold, but not exceeding $6.5 million ($12 million for certain
acquisitions). This final rule is not required to be published for
public comment because it makes permanent a statutory authority that
currently exists within the FAR. The rule will not have a significant
impact on small business or on Government contracting officers.
Item VII--Technical Amendments
Editorial changes are made at FAR 15.404-2(b)(2), 52.204-16(b)(3),
52.204-18(d), and 52.212-5(e)(1)(ii)(E).
Dated: June 18, 2015.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
[FR Doc. 2015-16218 Filed 7-1-15; 8:45 am]
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