[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Rules and Regulations]
[Page 27086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07107]

[[Page 27085]]

Vol. 85


No. 88

May 6, 2020

Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Chapter 1

Federal Acquisition Regulations; Final Rules

Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules 
and Regulations

[[Page 27086]]





48 CFR Chapter 1

[Docket No. FAR-2020-0051, Sequence No. 2]

Federal Acquisition Regulation; Federal Acquisition Circular 
2020-06; Introduction

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

ACTION: Summary presentation of final 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) 2020-06. A companion document, the Small 
Entity Compliance Guide (SECG), follows this FAC.

DATES: For effective date see the separate documents, which follow.

ADDRESSES: The FAC, including the SECG, is available via the internet 
at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the 
table below in relation to the FAR case. For information pertaining to 
status or publication schedules, contact the Regulatory Secretariat 
Division at 202-501-4755.

                                           Rule Listed in FAC 2020-06
              Item                           Subject                 FAR case                 Analyst
I..............................  Revocation of Executive Order          2020-001  Delgado.
                                  on Nondisplacement of
                                  Qualified Workers.
II.............................  Applicability of Inflation             2018-007  Delgado.
                                  Adjustments of Acquisition-
                                  Related Thresholds.
III............................  Tax on Certain Foreign                 2016-013  Delgado.
IV.............................  Technical Amendments...........

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these FAR rules, refer to 
the specific item numbers and subjects set forth in the documents 
following these item summaries. FAC 2020-06 amends the FAR as follows:

Item I--Revocation of Executive Order on Nondisplacement of Qualified 
Workers (FAR Case 2020-001)

    This final rule removes subpart 22.12, entitled ``Nondisplacement 
of Qualified Workers Under Service Contracts'', and a related contract 
clause, from the FAR. The final rule applies to service contracts which 
succeed a contract for performance by service employees of the same or 
similar work at the same location. It removes a requirement for service 
contractors and their subcontractors to offer employees of the 
predecessor contractor and its subcontractors a right of first refusal 
of employment for positions for which they are qualified. It implements 
Executive Order 13897 of October 31, 2019, Improving Federal Contractor 
Operations by Revoking Executive Order 13495. This final rule will not 
have a significant impact on service contractors and their 
subcontractors. However, as a result of eliminating the language in FAR 
subpart 22.12, there will be fewer requirements imposed on contractors 
to keep records demonstrating compliance on successor contractors.

Item II--Applicability of Inflation Adjustments of Acquisition-Related 
Thresholds (FAR Case 2018-007)

    This final rule makes inflation adjustments of statutory 
acquisition-related thresholds under 41 U.S.C. 1908 applicable to 
existing contracts and subcontracts in effect on the date of the 
adjustment. It implements section 821 of the National Defense 
Authorization Act for Fiscal Year 2018.
    This final rule will not have a significant economic impact on a 
substantial number of small entities.

Item III--Tax on Certain Foreign Procurement (FAR Case 2016-013)

    This final rule withholds a 2 percent tax on contract payments made 
by the United States (U.S.) Government to foreign persons pursuant to 
certain contracts. This rule applies to Federal Government contracts 
for goods or services that are awarded to foreign persons. It 
implements the Department of the Treasury final regulations published 
in the Federal Register at 81 FR 55133 on August 18, 2016, under 
section 5000C of the Internal Revenue Code relating to the 2 percent 
tax on payments made by the U.S. Government to foreign entities 
pursuant to certain contracts.
    This final rule will not have a significant economic impact on a 
substantial number of small entities.

Item IV--Technical Amendments

    Editorial changes are made at FAR 4.1102, 19.102, 25.301-1, 25.301-
4, 52.219-28, 52.223-15, and 52.225-19.

    Federal Acquisition Circular (FAC) 2020-06 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator of National Aeronautics and Space 
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2020-06 is 
effective May 6, 2020 except for Items I, II, and III, which are 
effective June 5, 2020.

William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

Kim Herrington,
Acting Principal Director, Defense Pricing and Contracting, Department 
of Defense.

Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, 
U.S. General Services Administration.

William G. Roets, II,
Acting Assistant Administrator, Office of Procurement, National 
Aeronautics and Space Administration.
[FR Doc. 2020-07107 Filed 5-5-20; 8:45 am]