[Federal Register: April 5, 2004 (Volume 69, Number 65)]
[Rules and Regulations]               
[Page 17739-17741]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 17739]]


Part II

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 2001-22; 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, 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) 2001-22. 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.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, at (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 2001-22 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            Government Property Disposal...........           1995-013  Parnell
          II            General Provisions of the Cost                    2001-034  Loeb
          III           Unique Contract and Order Identifier              2002-025  Zaffos
          IV            Unsolicited Proposals..................           2002-027  Wise
           V            New Mexico Tax--United States Missile             2003-020  Loeb
                         Defense Agency.
          VI            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 2001-22 amends the FAR as specified below:

Item I--Government Property Disposal (FAR Case 1995-013)

    This final rule amends FAR Parts 1, 2, 8, 45, 49, 52, and 53 to 
simplify procedures, reduce recordkeeping, and eliminate requirements 
related to the disposition of Government property in the possession of 

Item II--General Provisions of the Cost Principles (FAR Case 2001-034)

    This final rule amends the FAR to revise certain general provisions 
of the cost principles contained at FAR 31.201-1, Composition of total 
cost; FAR 31.201-2, Determining allowability; FAR 31.202, Direct costs; 
and FAR 31.203, Indirect costs. The rule revises the cost principles by 
improving clarity and structure, and removing unnecessary and 
duplicative language. The final rule also adds the definition of 
``direct cost'' and revises the definition of ``indirect cost'' at FAR 
2.101, Definitions, to be consistent with the terminology used in the 
cost accounting standards (CAS). The case was initiated as a result of 
comments and recommendations received from industry and Government 
representatives during a series of public meetings. This rule is of 
particular interest to contractors and contracting officers who use 
cost analysis to price contracts and modifications, and who determine 
or negotiate reasonable costs in accordance with a clause of a 
contract, e.g., price revision of fixed-price incentive contracts, 
terminated contracts, or indirect cost rates.

Item III--Unique Contract and Order Identifier Numbers (FAR Case 2002-

    The interim rule published in the Federal Register at 68 FR 56679, 
October 1, 2003, is converted to a final rule, without change, to 
require each reporting agency to assign a unique procurement instrument 
identifier (PIID) for every contract, purchase order, BOA, Basic 
Agreement, and BPA reported to the Federal Procurement Data System; and 
to have in place a process that will ensure that each PIID reported to 
FPDS is unique, Governmentwide, and will remain so for at least 20 
years from the date of contract award.

Item IV--Unsolicited Proposals (FAR Case 2002-027)

    This final rule amends the FAR to implement section 834 of the 
Homeland Security Act of 2002 (Pub. L. 107-296). Section 834 adds new 
considerations concerning the submission, receipt, evaluation, and 
acceptance or rejection of unsolicited proposals. The rule will require 
that a valid unsolicited proposal not address a previously published 
agency requirement. It also requires that, before initiating a 
comprehensive evaluation, the agency must determine that the proposal 
contains sufficient cost related or price related information for 
evaluation, and that it has overall scientific, technical, or 
socioeconomic merit.

Item V--New Mexico Tax--United States Missile Defense Agency (FAR Case 

    This final rule amends FAR 29.401-4(c) to incorporate the Defense 
Missile Agency as a participating agency within the terms and 
conditions stipulated in FAR 29.401-4, New Mexico Gross Receipts and 
Compensating Tax. This provision aims to eliminate the double taxation 
of Government cost reimbursement contracts when contractors and their 
subcontractors purchase tangible personal property to be used in 
performing services in the State of New Mexico and for which such 
property will pass to the United States.

Item VI--Technical Amendments

    This amendment makes editorial changes at FAR 52.212-5(b)(24) and 

    Dated: March 26, 2004.
Laura Auletta,
Director, Acquisition Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2001-22 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 

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and other directive material contained in FAC 2001-22 are effective 
April 5, 2004, except for Items I, II, and IV which are effective May 
5, 2004.

    Dated: March 26, 2004.
Deidre A. Lee,
Director, Defense Procurement and Acquisition Policy.

    Dated: March 19, 2004.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy, General 
Services Administration.

    Dated: March 19, 2004.
Anne Guenther,
Acting Assistant Administrator for Procurement, National Aeronautics 
and Space Administration.
[FR Doc. 04-7404 Filed 4-2-04; 8:45 am]