[Federal Register: March 18, 2003 (Volume 68, Number 52)]
[Rules and Regulations]               
[Page 13208-13209]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





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.


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 the rules 
appearing in Federal Acquisition Circular (FAC) 2001-13 which amends 
the FAR. An asterisk (*) next to a rule 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 2001-13 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 2001-13
             Item                                 Subject                       FAR case           Analyst
I.............................  Contract Types for Commercial Item                2000-013   Moss
II............................  Preference for U.S.-Flag Vessels--                1999-024   Klein
                                 Subcontracts for Commercial Items.
III...........................  Federal, State, and Local Taxes...........        2000-016   De Stefano
IV............................  Progress Payment Requests.................        2001-006   De Stefano

Item I--Contract Types for Commercial Item Acquisitions (FAR Case 2000-

    This final rule amends FAR 12.207, 16.202-1, and 16.203-1 to 
indicate that award fee and performance or delivery incentives based 
solely on factors other than cost may be used in conjunction with firm-
fixed-price (FFP) contracts and fixed-price contracts with economic 
price adjustment (FP/EPA) without changing the FFP or FP/EPA nature of 
the contract. A cross reference to these sections is added to FAR 
12.207 to ensure clarity of the revisions relative to commercial item 

Item II--Preference for U.S.-Flag Vessels--Subcontracts for Commercial 
Items (FAR Case 1999-024)

    This final rule amends FAR parts 12, 32, 47, and associated clauses 
to limit the types of subcontracts for which the waiver of cargo 
preference statutes is applicable. The rule is intended to ensure 
compliance with cargo preference statutes if ocean cargoes are clearly 
destined for Government use, while avoiding disruption of commercial 
delivery systems. This final rule also amends FAR part 12 by adding 10 
U.S.C. 2631, Transportation of Supplies by Sea, to the list of laws 
inapplicable to subcontracts for the

[[Page 13209]]

acquisition of commercial items (except for certain subcontracts). FAR 
subpart 47.5 and the clause at FAR 52.247-64 do not generally apply to 
acquisitions by the Department of Defense.

Item III--Federal, State, and Local Taxes (FAR Case 2000-016)

    This final rule amends the FAR to clarify the prescriptions at FAR 
29.401 for use of FAR clauses pertaining to Federal, State, and local 
taxes. These clauses, 52.229-3, Federal, State, and Local Taxes; and 
52.229-4, Federal, State, and Local Taxes (State and Local 
Adjustments), are also updated to reflect information previously 
contained in the clause at FAR 52.229-5, Taxes--Contracts Performed in 
U.S. Possessions or Puerto Rico. FAR clause 52.229-5 is removed.

Item IV--Progress Payment Requests Under Indefinite-Delivery Contracts 
(FAR Case 2001-006)

    This final rule amends the Federal Acquisition Regulation (FAR) to 
require, under indefinite-delivery contracts, the contractor to account 
for and submit progress payment requests under individual orders as if 
each order constitutes a separate contract, unless otherwise specified 
in the contract. The rule is of special interest to contracting 
officers that administer indefinite-delivery contracts.

    Dated: March 12, 2003.
Laura G. Smith,
Director, Acquisition Policy Division.
[FR Doc. 03-6376 Filed 3-17-03; 8:45 am]