[Federal Register: June 18, 2004 (Volume 69, Number 117)]
[Rules and Regulations]               
[Page 34228-34229]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Parts 2 and 52

[FAC 2001-24; FAR Case 2002-013; Item II]
RIN 9000-AJ83

Federal Acquisition Regulation; Definitions Clause

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

ACTION: Final rule.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to clarify the 
applicability of FAR definitions to solicitation provisions and 
contract clauses.

DATES: Effective Date: July 19, 2004.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755 
for information pertaining to status or publication schedules. For 
clarification of content, contact Ms. Jeritta Parnell, Procurement 
Analyst, at (202) 501-4082. Please cite FAC 2001-24, FAR case 2002-013.


A. Background

    This final rule amends the FAR to delete the list of definitions 
from the clause at FAR 52.202-1 and to replace the list with general 
policy regarding the applicability of FAR definitions to solicitation 
provisions and contract clauses.
    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 69 FR 2988, January 21, 2004. Three comments were received 
from one respondent. The first two comments requested clarification as 
to whether the second and third sentences of FAR 2.201 and Alternate I 
of the clause at FAR 52.202-1 are being deleted. This text has been 
deleted, and the proposed and final rules reflect this. The third 
comment suggested correcting the Web address in FAR 52.202-1. We agree. 
The Web address has been changed. The proposed rule has been converted 
to a final rule with this change and other minor editorial changes.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because the principle of how 
definitions apply is already expressed in FAR Part 2. Since this 
principle is not as clearly expressed in the FAR Part 52 clauses, the 
rule repeats the principle in a clause to clarify this issue for 
offerors and contractors.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 2 and 52

    Government procurement.

    Dated: June 10, 2004.
Ralph J. De Stefano,
Acting Director, Acquisition Policy Division.

Therefore, DoD, GSA, and NASA amend 48 CFR parts 2 and 52 as set forth 
1. The authority citation for 48 CFR parts 2 and 52 is revised to read 
as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).


2. Revise section 2.201 to read as follows:

2.201  Contract clause.

    Insert the clause at 52.202-1, Definitions, in solicitations and 
contracts that exceed the simplified acquisition threshold.


3. Revise section 52.202-1 to read as follows:

52.202-1  Definitions.

    As prescribed in 2.201, insert the following clause:

Definitions (Jul 2004)

    (a) When a solicitation provision or contract clause uses a word 
or term that is defined in the Federal Acquisition Regulation (FAR), 
the word or term has the same meaning as the definition in FAR 2.101 
in effect at the time the solicitation was issued, unless--
    (1) The solicitation, or amended solicitation, provides a 
different definition;
    (2) The contracting parties agree to a different definition;
    (3) The part, subpart, or section of the FAR where the provision 
or clause is prescribed provides a different meaning; or
    (4) The word or term is defined in FAR Part 31, for use in the 
cost principles and procedures.
    (b) The FAR Index is a guide to words and terms the FAR defines 
and shows where each

[[Page 34229]]

definition is located. The FAR Index is available via the Internet 
at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov at the end of the FAR, after the FAR 

    (End of clause)

52.213-4  [Amended]

4. Amend section 52.213-4 by removing ``(May 2004)'' from the clause 
heading and from paragraph (a)(2)(vi) of the clause and adding ``(Jul 
2004)'' in their place.
5. In section 52.244-6, revise the date of the clause; and in paragraph 
(a) of the clause revise the definition ``Commercial item'' to read as 

52.244-6  Subcontracts for Commercial Items.

* * * * *

Subcontracts for Commercial Items (Jul 2004)

    (a) * * *
    Commercial item has the meaning contained in Federal Acquisition 
Regulation 2.101, Definitions.
* * * * *
[FR Doc. 04-13619 Filed 6-17-04; 8:45 am]