[Federal Register: June 27, 2002 (Volume 67, Number 124)]
[Rules and Regulations]               
[Page 43511-43513]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 43511]]


Part V

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Chapter 1, et al.

Federal Acquisition Circular 2001-08; Final Rule

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48 CFR Chapter 1

Federal Acquisition Circular 2001-08; Introduction

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

ACTION: Summary presentation of final rules, and technical amendments 
and corrections.


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) 2001-08. 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 2001-08 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........................................  Definition of ``Claim'' and          2000-406  Klein.
                                            Terms Relating to Termination.
II.......................................  Federal Supply Schedule Order        1999-614  Nelson.
                                            Disputes and Incidental Items.
III......................................  Relocation Costs................     1997-032  Olson.
IV.......................................  Technical Amendments

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 2001-08 amends the FAR as specified below:

Item I--Definition of ``Claim'' and Terms Relating to Termination (FAR 
Case 2000-406)

    The purpose of this final rule is to clarify the applicability of 
definitions, eliminate redundant or conflicting definitions, and 
streamline the process for locating definitions. This rule is not 
intended to change the meaning of any FAR text or clause. Movement of 
various definitions to FAR 2.101 is not intended to change the 
operation of the cost principles and, specifically, the movement of the 
definition of ``claim'' to FAR 2.101 is not intended to change the 
scope or context of FAR 31.205-47(f)(1).
    This final rule--
     Revises and moves the definitions of ``claim'' from FAR 
33.201; ``continued portion of the contract,'' ``partial termination,'' 
``terminated portion of the contract'' from FAR 49.001; and 
``termination for convenience'' from FAR 17.103;
     Adds a definition of ``termination for default'' at FAR 
2.101 and a new paragraph (d) at FAR 17.104 that explains the 
distinction between ``termination for convenience'' and 
``cancellation'' that was deleted from the definition of ``termination 
for convenience'' that was moved from FAR 17.103;
     Revises FAR 33.213(a) to clarify the distinction between 
claims ``arising under a contract'' and claims ``relating to a 
     Revises the definition of ``claim'' in the FAR clause at 
52.233-1 to conform to the definition at FAR 2.101; and
     Makes other editorial revisions for clarity.

Item II--Federal Supply Schedule Order Disputes and Incidental Items 
(FAR Case 1999-614)

    This final rule amends the FAR to add policies on disputes and 
incidental items under Federal Supply Schedule contracts and to remove 
the requirement to notify GSA when a schedule contractor refuses to 
honor an order placed by a Government contractor. This rule affects all 
ordering offices acquiring supplies or services subject to the 
procedures of FAR Subpart 8.4.

Item III--Relocation Costs (FAR Case 1997-032)

    This final rule amends the relocation cost principle at FAR 31.205-
35. The rule will only affect contracting officers that price contracts 
using cost analysis, or that are required by a contract clause to use 
cost principles for the determination, negotiation, or allowance of 
    The relocation cost principle addresses the allowability of costs 
incurred by an existing contractor employee incident to the permanent 
change of the employee's assigned work location for a period of 12 
months or more, or upon recruitment of a new employee. The final rule 
revises the cost principle by making allowable payments for spouse 
employment assistance and for increased employee income and Federal 
Insurance Contributions Act taxes incident to allowable reimbursed 
relocation costs, increasing the ceiling for allowance of miscellaneous 
costs of relocation, and making a number of editorial changes.

Item IV--Technical Amendments

    These amendments update sections and make editorial changes at FAR 
52.202-1, 52.212-3, and 52.225-11.

    Dated: June 19, 2002.
Al Matera,
Director, Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2001-08 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2001-08 are 
effective July 24, 2002.

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    Dated: June 18, 2002.
Deidre A. Lee,
Director, Defense Procurement.

    Dated: June 10, 2002.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.

    Dated: June 10, 2002.
Tom Luedtke,
Assistant Administrator for Procurement, National Aeronautics and Space 
[FR Doc. 02-15939 Filed 6-26-02; 8:45 am]