[Federal Register: March 27, 2000 (Volume 65, Number 59)]
[Rules and Regulations]
[Page 16286-16287]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27mr00-18]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Regulation; 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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[[Page 16287]]
SUMMARY: This document is issued under the joint authority of the
Secretary of Defense, the Administrator of General Services and the
Administrator for the National Aeronautics and Space Administration.
This Small Entity Compliance Guide has been prepared in accordance with
Section 212 of the Small Business Regulatory Enforcement Fairness Act
of 1996 (Public Law 104-121). It consists of a summary of rules
appearing in Federal Acquisition Circular (FAC) 97-16 which amend the
FAR. The rule marked with an asterisk (*) indicates that a regulatory
flexibility analysis has been prepared in accordance with 5 U.S.C. 604.
Interested parties may obtain further information regarding these rules
by referring to FAC 97-16 which precedes this document. These documents
are also available via the Internet at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.arnet.gov/far.
FOR FURTHER INFORMATION CONTACT: Laurie Duarte, FAR Secretariat, (202)
501-4225. For clarification of content, contact the analyst whose name
appears in the table below.
List of Rules in FAC 97-16
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Item Subject FAR case Analyst
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I............... Small Business 1999-012 Moss.
Competitiveness
Demonstration Program
(Interim).
II.............. Progress Payments and 1998-400 Olson.
Related Financing (98-400)
Policies *.
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Item I--Small Business Competitiveness Demonstration Program (FAR
Case 1999-012)
This interim rule amends FAR Subpart 19.10 to clarify language
pertaining to the Small Business Competitiveness Demonstration (Comp.
Demo.) Program, consistent with revisions to the Program that were
contained in an OFPP and SBA joint final policy directive dated May 25,
1999.
The interim rule--
Advises the contracting officer to consider the 8(a)
Program and HUBZone Program, in addition to small business set-
asides, for acquisitions of $25,000 or less in one of the four
designated industry groups that will not be set aside for emerging
small business concerns.
Adds FAR 19.1006, Exclusions, to specify acquisitions to
which Subpart 19.10 does not apply. None of the Small Business Comp.
Demo. policies and procedures apply to orders under the Federal Supply
Schedule Program or to contracts awarded to educational and nonprofit
institutions or governmental entities.
This interim rule only will affect contracting officers at
participating agencies when acquiring supplies or services subject to
the procedures of the Small Business Comp. Demo. Program. The
participating agencies are: Department of Agriculture; Department of
Defense, except the National Imagery and Mapping Agency; Department of
Energy; Department of Health and Human Services; Department of the
Interior; Department of Transportation; Department of Veterans Affairs;
Environmental Protection Agency; General Services Administration; and
National Aeronautics and Space Administration.
Item II--Progress Payments and Related Financing Policies (FAR Case
1998-400) (98-400)
This final rule revises certain financing policies at FAR Part 32,
Contract Financing, and related contract provisions at FAR Part 52. The
rule--
Emphasizes that performance-based payments are the
preferred method of contract financing. Performance-based payments are
contract financing payments made after achievement of predetermined
goals, such as performance objectives or defined events. Contracting
officers should consider performance-based payments and deem their use
impracticable before deciding to provide customary progress payments;
Permits contracting officers to provide contract financing
on contracts awarded to large businesses if the individual contract is
$2 million or more. Previously, the threshold in the FAR for financing
a contract with a large business was $1 million;
Permits a large business to bill the Government for
subcontract costs that the large business has incurred but not actually
paid, if certain conditions are met. Previously, the FAR permitted only
small business concerns to bill for subcontract costs that have been
incurred but not paid;
Permits the contracting officer to use performance-based
payments in contracts for research and development, and in contracts
awarded through competitive negotiation procedures; and
Is effective on March 27, 2000. However, it is mandatory
only for solicitations issued on or after May 26, 2000. Contracting
officers may, at their discretion, include the clauses and provisions
in this rule in solicitations issued before that date.
Dated: March 20, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 00-7311 Filed 3-24-00; 8:45 am]
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