[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Rules and Regulations]
[Pages 45868-45869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16250]


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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; Small Entity Compliance Guide

AGENCY: 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) 2005-89, 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 2005-89, which precedes this document. 
These documents are also available via the Internet at http://www.regulations.gov.

DATES: July 14, 2016.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
the analyst whose name appears in the table below. Please cite FAC 
2005-89 and the 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

[[Page 45869]]

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.

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.
[FR Doc. 2016-16250 Filed 7-13-16; 8:45 am]
 BILLING CODE 6820-EP-P