[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Rules and Regulations]
[Pages 45832-45833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16244]
[[Page 45831]]
Vol. 81
Thursday,
No. 135
July 14, 2016
Part IV
Department of Defense
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General Services Administration
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National Aeronautics and Space Administration
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48 CFR Chapter 1
Federal Acquisition Regulation; Federal Acquisition Circular 2005-89;
Introduction, Small Business Improvements, OMB Circular Citation
Update, FPI Blanket Waiver, Revision to Standard Forms for Bonds,
Technical Amendments, and Federal Acquisition Circular 2005-89; Small
Entity Compliance Guide; Final Rules
Federal Register / Vol. 81 , No. 135 / Thursday, July 14, 2016 /
Rules and Regulations
[[Page 45832]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR 2016-0051, Sequence No. 3]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-89; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final 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 (Councils) in this Federal
Acquisition Circular (FAC) 2005-89. 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 see the separate documents, which follow.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. Please cite FAC 2005-89 and
the specific FAR case number. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755.
Rules Listed in FAC 2005-89
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Item Subject FAR Case Analyst
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I............................... Small Business Subcontracting 2014-003 Uddowla.
Improvements.
II.............................. OMB Circular Citation Update.. 2014-023 Hopkins.
III............................. FPI Blanket Waiver Threshold.. 2016-008 Uddowla.
IV.............................. Revision to Standard Forms for 2015-025 Hopkins.
Bonds.
V............................... 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 2005-89 amends the FAR as follows:
Item I--Small Business Subcontracting Improvements (FAR Case 2014-003)
This final rule amends the FAR to implement SBA's final rule
published at 78 FR 42391 on July 16, 2013. The rule will implement the
statutory requirements set forth in section 1321 and 1322 of the Small
Business Jobs Act of 2010, (Pub. L. 111-240), as well as other
requirements aimed at improving subcontracting regulations to increase
small business opportunities. This rule accomplishes the following:
(1) Requires prime contractors to make good faith efforts to
utilize their proposed small business subcontractors during performance
of a contract to the same degree the prime contractor relied on the
small business in preparing and submitting its bid or proposal. To the
extent a prime contractor is unable to make a good faith effort to
utilize its small business subcontractors as described above, the prime
contractor is required to explain, in writing, within 30 days of
contract completion, to the contracting officer the reasons why it was
unable to do so.
(2) Authorizes contracting officers to calculate subcontracting
goals in terms of total contract dollars in addition to the required
goals in terms of total subcontracted dollars.
(3) Provides contracting officers with the discretion to require a
subcontracting plan in instances where a small business rerepresents
its size as an other than small business.
(4) Requires subcontracting plans even for modifications under the
subcontracting plan threshold if said modifications would cause the
contract to exceed the plan threshold.
(5) Requires prime contractors to assign (North American Industry
Classification System (NAICS)) codes to subcontracts.
(6) Restricts prime contractors from prohibiting a subcontractor
from discussing payment or utilization matters with the contracting
officer.
(7) Requires prime contractors to resubmit a corrected
subcontracting report within 30 days of receiving the contracting
officer's notice of report rejection.
(8) Requires prime contractors to provide the socioeconomic status
of the subcontractor in the notification to unsuccessful offerors for
subcontracts.
(9) Requires prime contracts with subcontracting plans on task and
delivery order contracts to report order level subcontracting
information after November 2017.
(10) Facilitates funding agencies receiving small business
subcontracting credit.
(11) On indefinite-delivery, indefinite-quantity contracts, allows
the contracting officer to establish subcontracting goals at the order
level (but not a new subcontracting plan).
This rule may have a positive economic impact on any small business
entity that wishes to participate in the Federal procurement arena as a
subcontractor.
Item II--OMB Circular Citation Update (FAR Case 2014-023)
This final rule amends the FAR to update outdated OMB Circular
citation references. On December 26, 2013, the Office of Management and
Budget (OMB) published new guidance at 2 CFR part 200 entitled Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, adopted by Federal agencies as a set of binding
regulations that became effective December 26, 2014. This new guidance
supersedes and streamlines requirements from OMB Circulars A-21, A-87,
A-89, A-102, A-110, A-122, and A-133, as well as the guidance in
Circular A-50 on Audit Followup. As such, this final rule replaces OMB
citations in the FAR to the circulars cited above that have been
superseded. The replacement of these outdated OMB citations in the FAR
will have no impact on small businesses since the intent of the OMB
guidance remains unchanged.
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Item III--FPI Blanket Waiver Threshold (FAR Case 2016-008)
This final rule amends the FAR to increase the blanket waiver
threshold for small dollar-value purchases from Federal Prison
Industries (FPI) by Federal agencies from $3,000 to $3,500. No waiver
is required to buy from an alternative source below $3,500. Customers
may, however, still purchase from FPI at, or below, this threshold, if
they so choose.
Item IV--Revision to Standard Forms for Bonds (FAR Case 2015-025)
This rule amends the FAR to revise five Standard Forms prescribed
for contracts involving bonds and other financial protections. The
revisions, aimed at clarifying liability limitations and expanding the
options for organization types, are made to Standard Forms 24, 25, 25A,
34, and 35. These changes will minimize questions from industry to the
contracting officer.
This final rule does not place any new requirements on small
entities.
Item V--Technical Amendments
Editorial changes are made at FAR 4.1801, 4.1803, 52.204-16,
52.204-17, 52.204-18, 52.204-20, and 52.212-3.
Dated: June 30, 2016.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2005-89 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 2005-89 is
effective July 14, 2016 except for item I which is effective November
1, 2016, and items II, III, and IV, which are effective August 15,
2016.
Dated: July 1, 2016.
Claire M. Grady,
Director, Defense Procurement and Acquisition Policy
Dated: July 1, 2016.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy,
U.S. General Services Administration.
Dated: June 29, 2016.
William G. Roets,
Acting Assistant Administrator, Office of Procurement National
Aeronautics and Space Administration.
[FR Doc. 2016-16244 Filed 7-13-16; 8:45 am]
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