[Federal Register: October 22, 2001 (Volume 66, Number 204)]
[Rules and Regulations]
[Page 53477-53479]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22oc01-9]
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Part II
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Chapter 1, et al.
Federal Acquisition Regulations (FAR); Final Rules
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 2001-01; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final and interim 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 in this Federal Acquisition
Circular (FAC) 2001-01. A companion document, the Small Entity
Compliance Guide (SECG), follows this FAC. The FAC, including the SECG,
is 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.
DATES: For effective dates and comment dates, see separate documents
which follow.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact the analyst whose name appears in the table below in
relation to each FAR case or subject area. Please cite FAC 2001-01 and
specific FAR case number(s). Interested parties may also visit our Web
site at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.arnet.gov/far.
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Item Subject FAR case Analyst
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I Application of the Davis-Bacon 1997-613 Nelson.
Act to Construction Contracts
With Options to Extend the
Term of the Contract.
II Acquisition of Commercial 2000-303 Moss.
Items.
III Prompt Payment Under Cost- 2000-308 Olson.
Reimbursement Contracts for
Services (Interim).
IV Veterans' Employment.......... 1998-614 Nelson.
V Veterans Entrepreneurship and 2000-302 Cundiff.
Small Business Development
Act of 1999 (Interim).
VI Very Small Business Pilot 2001-001 Cundiff.
Program.
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments to these FAR cases, refer to the
specific item number and subject set forth in the documents following
these item summaries.
Federal Acquisition Circular 2001-01 amends the FAR as specified
below:
Item I--Application of the Davis-Bacon Act to Construction
Contracts With Options To Extend the Term of the Contract
[FAR Case 1997-613]
This final rule implements the Department of Labor's requirement to
incorporate a current Davis-Bacon Act wage determination at the
exercise of each option to extend the term of a contract for
construction.
Item II--Acquisition of Commercial Items
[FAR Case 2000-303]
This final rule amends the FAR to clarify the definition of
``commercial item.'' The revised language will help contracting
officers make commerciality determinations. The rule also alerts
contracting officers to be aware of customary commercial terms and
conditions that may affect the contract price when pricing commercial
items. The rule also clarifies that Subpart 46.8, Contractor Liability
for Loss of or Damage to Property of the Government, does not apply to
acquisitions of commercial items. Contracting officers should use
standard commercial practices instead of the policies in Subpart 46.8.
Finally, the rule amends the clause at 52.212-4, Limitation of
liability, to conform it to standard commercial practice.
Item III--Prompt Payment Under Cost-Reimbursement Contracts for
Services
[FAR Case 2000-308]
This interim rule implements changes in the Office of Management
and Budget's (OMB) Prompt Payment Act regulations at 5 CFR 1315 that
implemented Section 1010 of the National Defense Authorization Act for
Fiscal Year 2001. Those changes were published by OMB as an interim
final rule and became effective on December 15, 2000 (65 FR 78403) and
were applicable to all covered contracts awarded on or after December
15, 2000. Section 1010 of the National Defense Authorization Act for
Fiscal Year 2001 requires agencies to pay an interest penalty, in
accordance with regulations issued, whenever an interim payment under a
cost-reimbursement contract for services is paid more than 30 days
after the agency receives a proper invoice from a contractor. The Act
does not permit payment of late payment penalty interest for any period
prior to December 15, 2000.
This FAR amendment eliminates the prior policy and contract clause
prohibitions on payment of late payment penalty interest for late
interim finance payments under cost-reimbursement contracts for
services. It adds new policy and contract clause coverage to provide
for those penalty payments.
Item IV--Veterans' Employment
[FAR Case 1998-614]
This final rule amends the FAR to implement statutory and
regulatory changes relating to veterans' employment opportunities and
reporting. Most significantly for contracting officers, the rule amends
the FAR to prohibit contracting officers from obligating or expending
appropriated funds to enter into a contract with a contractor that has
not met its veterans' employment reporting requirements (VETS-100
Report). This prohibition does not apply to contracts for commercial
items or contracts valued at or below the simplified acquisition
threshold. The rule adds a new solicitation provision that requires
each offeror to represent, by submission of its offer, that it is in
compliance with the VETS-100 reporting requirements. The contracting
officer may verify compliance by checking with the Department of Labor.
Item V--Veterans Entrepreneurship and Small Business Development
Act of 1999
[FAR Case 2000-302]
This interim rule amends the FAR to implement section 803 of the
Small Business Reauthorization Act of 2000, part of the Consolidated
Appropriations Act, 2001 (Pub. L. 106-554) that was enacted on December
21, 2000.
This rule requires a contractor that is required to submit a
subcontracting plan to report as a separate subcontracting plan goal
requirement, subcontracting
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activity pertaining to service-disabled veteran-owned small business
concerns. The rule also changes the Standard Form (SF) 294,
``Subcontracting Report for Individual Contracts,'' and the SF 295,
``Summary Subcontract Report,'' to capture this category of information
for the contracting officer.
Item VI--Very Small Business Pilot Program
[FAR Case 2001-001]
This final rule amends FAR Subpart 19.9 to implement Section 503(c)
of the Small Business Reauthorization Act of 2000 (part of Public Law
106-554). Section 503(c) extends, for three additional years, the Very
Small Business Pilot Program until September 30, 2003. The purpose of
the program is to improve access to Government contract opportunities
for concerns that are substantially below SBA's size standards by
reserving certain acquisitions for competition among such concerns.
Dated: October 12, 2001.
Al Matera,
Director, Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2001-01 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 2001-01 is
effective December 21, 2001, except for Items III and V, which are
effective October 22, 2001.
Dated: August 31, 2001.
Carolyn M. Balven,
Acting Director, Defense Procurement.
Dated: August 28, 2001.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy,
General Services Administration.
Dated: August 27, 2001.
Anne Guenther,
Acting Associate Administrator for Procurement, National Aeronautics
and Space Administration.
[FR Doc. 01-26295 Filed 10-19-01; 8:45 am]
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