[Federal Register: May 22, 2003 (Volume 68, Number 99)]
[Rules and Regulations]               
[Page 28098-28100]
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 (Pub. L. 104-121). It consists of a summary of the rules 
appearing in Federal Acquisition Circular (FAC) 2001-14 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 2001-14 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,

[[Page 28099]]

contact the analyst whose name appears in the table below.

                                          List of Rules in FAC 2001-14
        Item                                 Subject                          FAR case           Analyst
I...................  Geographic Use of the Term ``United States''........    1999-400   Davis
II..................  Miscellaneous Cost Principles.......................    2001-029   Loeb
III.................  Prompt Payment Under Cost-Reimbursement Contracts       2000-308   Loeb
                       for Services.
IV..................  Electronic Signatures...............................    2000-304   Smith
V...................  Increased Federal Prison Industries, Inc. Waiver        2003-001   Nelson
                       Threshold (Interim).
VI..................  Past Performance Evaluation of Federal Prison           2001-035   Smith
                       Industries Contracts.
VII.................  Contract Terms and Conditions Required to Implement     2000-009   Moss
                       Statute or Executive Orders--Commercial Items.
VIII................  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 2001-14 amends the FAR as specified below:

Item I--Geographic Use of the Term ``United States'' (FAR Case 1999-

    This final rule amends the FAR to clarify the use of the term 
``United States,'' when used in a geographic sense. The term ``United 
States'' is defined in FAR 2.101 to include the 50 States and the 
District of Columbia. Where a wider area of applicability is intended, 
the term is redefined in the appropriate part or subpart of the FAR, or 
supplemented by listing the additional areas of applicability each time 
the term is used. This rule corrects and updates references to the 
United States throughout the FAR, including a new definition of 
``outlying areas'' of the United States, a term that encompasses the 
named outlying commonwealths, territories, and minor outlying islands.

Item II--Miscellaneous Cost Principles (FAR Case 2001-029)

    This final rule amends the FAR by deleting the cost principle at 
FAR 31.205-45, Transportation costs, and streamlining the cost 
principles at FAR 31.205-10, Cost of money; FAR 31.205-28, Other 
business expenses; and FAR 31.205-48, Deferred research and development 
costs. The rule will only affect contracting officers that are required 
by a contract clause to use cost principles for the determination, 
negotiation, or allowance of contract costs.

Item III--Prompt Payment Under Cost-Reimbursement Contracts for 
Services (FAR Case 2000-308)

    The interim rule published in the Federal Register at 66 FR 53485, 
October 22, 2001, is converted to a final rule, without change, to 
implement statutory and regulatory changes related to late payment of 
an interim payment under a cost-reimbursement contract for services. 
The rule is of special interest to contracting officers that award or 
administer these type of contracts.
    The Federal Register notice published in conjunction with the FAR 
interim rule stated that ``The policy and clause apply to all covered 
contracts awarded on or after December 15, 2000 * * * agencies may 
apply the FAR changes made by this rule to contracts awarded prior to 
December 15, 2000, at their discretion * * * .'' This was consistent 
with OMB regulations. Subsequently, as a result of enactment of the 
National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-
107) on December 28, 2001, agencies no longer have this discretion. 
Section 1007 of Public Law 107-107 states that this policy applies to 
cost-reimbursement contracts for services awarded before, on, or after 
December 15, 2000. Section 1007 retains the prohibition against payment 
of late payment interest penalty for any period prior to December 15, 

Item IV--Electronic Signatures (FAR Case 2000-304)

    Recent laws eliminate legal barriers to using electronic technology 
in business transactions, such as the formation and signing of 
contracts. This final rule furthers Government participation in 
electronic commerce when conducting Government procurements by adding a 
statement at FAR subpart 4.5, Electronic Commerce in Contracting, 
clarifying that agencies are permitted to accept electronic signatures 
and records in connection with Government contracts.

Item V--Increased Federal Prison Industries, Inc. Waiver Threshold (FAR 
Case 2003-001)

    This interim rule revises the Federal Acquisition Regulation to 
increase the Federal Prison Industries, Inc.'s (FPI) clearance 
exception threshold at 8.606(e) from $25 to $2,500 and eliminates the 
criterion that delivery is required within 10 days. Federal agencies 
will not be required to make purchases from FPI of products on FPI's 
Schedule that are at or below this threshold.

Item VI--Past Performance Evaluation of Federal Prison Industries 
Contracts (FAR Case 2001-035)

    This final rule requires agencies to evaluate Federal Prison 
Industries (FPI) contract performance. This change will permit Federal 
customers to rate FPI performance, compare FPI to private sector 
providers, and give FPI important feedback on previously awarded 
contracts. It is expected that this change will give FPI the same 
opportunity that we give private sector providers, to improve their 
customer satisfaction, in general, and their performance on delivery, 
price, and quality, specifically.

Item VII--Contract Terms and Conditions Required To Implement Statute 
or Executive Orders--Commercial Items (FAR Case 2000-009)

    This final rule amends the clause at 52.212-5, Contract Terms and 
Conditions Required to Implement Statute or Executive Orders--
Commercial Items, to ensure that required statutes enacted subsequent 
to FASA that contain civil or criminal penalties or specifically cite 
their applicability to commercial items are included on the list, and 
to ensure that any post-FASA items that did not meet this criteria are 
deleted from the list. In addition, the pre-FASA clauses and alternates 
that were inadvertently left off the list are added. The date of each 
clause is added to the list to identify what revision of the listed 
clause applies when this clause is added to a contract.

Item VIII--Technical Amendments

    These amendments update references and make editorial changes at 

[[Page 28100]]

52.213-4(a)(2)(vi), 52.244-6 section and clause headings, and 52.247-

    Dated: May 13, 2003.
Laura G. Smith,
Director, Acquisition Policy Division.
[FR Doc. 03-12309 Filed 5-21-03; 8:45 am]