[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]               
[Page 6111-6113]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 6111]]


Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Chapter 1 et al.

Federal Acquisition Regulations; Final Rules

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48 CFR Chapter 1

Federal Acquisition Circular 2001-04; 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.


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) 2001-04. 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.

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 2001-04 and 
specific FAR case number(s). Interested parties may also visit our 
website at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.arnet.gov/far.

         Item                Subject         FAR case       Analyst
I....................  Definitions for       2000-404  DeStefano.
II...................  Special Simplified    2002-002  Moss.
                        Procedures for
                        Purchases of
                        Commercial Items
                        in Excess of the
III..................  Notification of       2001-013  Olson.
                        Noncompliance with
                        Cost Accounting
IV...................  Executive Order       2001-017  Nelson.
                        13204, Revocation
                        of Executive Order
                        on Nondisplacement
                        of Qualified
                        Workers Under
                        Certain Contracts.
V....................  Caribbean Basin       2000-306  Davis.
                        Country End
VI...................  Final Contract        1999-026  Klein.
                        Voucher Submission.
VII..................  Technical            .........  .................

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.
    FAC 2001-04 amends the FAR as specified below:

Item I--Definitions for Classified Acquisitions (FAR Case 2000-404)

    This final rule amends the FAR to clarify definitions that are used 
for classified procurements. The final rule--
     Moves the definitions of ``classified acquisition,'' 
``classified contract,'' and ``classified information'' from FAR 4.401 
to FAR 2.101, because the definitions apply to more than one FAR part;
     Amends those definitions for clarity;
     Amends the definition of ``classified information'' to 
reflect classification of privately generated restricted data in 
accordance with Department of Energy regulations; and
     Amends the policy regarding bid openings for classified 
acquisitions at FAR 14.402-2 for clarity.

Item II--Special Simplified Procedures for Purchases of Commercial 
Items in Excess of the Simplified Acquisition Threshold (FAR Case 

    This rule amends FAR Subpart 13.5 to implement Section 823 of the 
National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-
107). Section 823 amends Section 4202(e) of the Clinger-Cohen Act of 
1996 (Divisions D and E of Pub. L. 104-106; 110 Stat. 654; 10 U.S.C. 
2304 note) to extend, through January 1, 2003, the expiration of the 
test of special simplified procedures for purchases of commercial items 
greater than the simplified acquisition threshold, but not exceeding 

Item III--Notification of Noncompliance With Cost Accounting 
Standards (FAR Case 2001-013)

    This final rule amends Table 15-2, Instructions for Submitting 
Cost/Price Proposals When Cost or Pricing Data are Required, located at 
FAR 15.4, Contract pricing. The rule removes the requirement for a 
contractor to notify the contracting officer when there is a 
noncompliance that has an immaterial cost impact. The rule affects 
contracting officers that require cost or pricing data on cost 
accounting standard-covered contracts.

Item IV--Executive Order 13204, Revocation of Executive Order on 
Nondisplacement of Qualified Workers Under Certain Contracts (FAR 
Case 2001-017)

    The interim rule published in the Federal Register at 66 FR 27416, 
May 16, 2001, is converted to a final rule without change. This rule 
finalizes the implementation of Executive Order (E.O.) 13204, 
Revocation of Executive Order on Nondisplacement of Qualified Workers 
Under Certain Contracts, signed by the President on February 17, 2001. 
The E.O. requires that any rules implementing E.O. 12933, 
Nondisplacement of Qualified Workers Under Certain Contracts, be 
promptly rescinded. As a result, Subpart 22.12 and the clause at 
52.222-50 were removed and reserved. The clause at 52.212-5 was amended 
by revising the date and removing paragraph (c)(6). Contracting 
officers should not take any action on any complaint filed under former 
FAR Subpart 22.12.

Item V--Caribbean Basin Country End Products (FAR Case 2000-306)

    This interim rule amends FAR 25.003, 25.400, 25.404, and the clause 
at 52.225-5, Trade Agreements, to implement the determination of the 
United States Trade Representative (USTR) to renew the treatment of 
Caribbean Basin country end products as eligible products under the 
Trade Agreements Act (TAA), with the exception of end products from the 
Dominican Republic, Honduras, and Panama. This rule applies only if an 
acquisition is subject to the TAA (see FAR 25.403). The Dominican 
Republic and Honduras were already removed from the definition of 
Caribbean Basin countries in FAC 97-17, FAR case 2000-003, published in 
the Federal Register at 65 FR 24321, April 25, 2000. This rule now 
removes Panama. Offers of end products from these countries are

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no longer acceptable under acquisitions subject to the TAA unless the 
contracting officer does not receive any offers of U.S.-made end 
products or eligible products (designated, Caribbean Basin, or NAFTA 
country end products).
    This interim rule also amends the definition of ``Caribbean Basin 
country end product'' at FAR 25.003 and in the clause at 52.225-5, 
Trade Agreements, to implement Section 211 of the United States--
Caribbean Basin Trade Partnership Act and the determinations of the 
USTR as to which countries qualify for the enhanced trade benefits 
under that Act. Offerors of end products from the Caribbean Basin must 
understand the revised definition in order to certify whether the 
products that they are offering qualify as Caribbean Basin country end 
products. The definition of ``Caribbean Basin country end product'' 
excludes products that do not qualify for duty-free treatment. 
Information provided in this rule helps offerors determine the duty-
free status of a product by review of the Harmonized Tariff Schedule of 
the United States.

Item VI--Final Contract Voucher Submission (FAR Case 1999-026)

    This final rule amends FAR 42.705, Final indirect cost rates, and 
FAR 52.216-7, Allowable Cost and Payment, to explicitly state the right 
of the contracting officer to unilaterally determine the final contract 
payment amount when the contractor does not submit the final invoice or 
voucher within the time specified in the contract. The rule is 
applicable to contracting officers that administer contract closeout 

Item VII--Technical Amendments

    These amendments update sections and make editorial changes at 
sections 3.807, 9.203, 12.301, 13.301, 14.205-2, 14.409-1, 15.404-4, 
31.002, 31.205-17, 36.606, 42.705-1, 46.202-4, 51.101, 52.212-3, 
52.213-4, 52.219-21, and 52.222-44.

    Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2001-04 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 2001-04 is 
effective February 20, 2002.

Dated: January 31, 2002.

Carolyn M. Balven,
Col., USAF Deputy Dir., Defense Procurement.

Dated: January 30, 2002.

David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.

Dated: January 30, 2002.

Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and 
Space Administration.

[FR Doc. 02-2912 Filed 2-7-02; 8:45 am]