[Federal Register: March 9, 2005 (Volume 70, Number 45)]
[Rules and Regulations]
[Page 11735-11737]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 11735]]


Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration

48 CFR Chapter 1 et al.

Federal Acquisition Regulations et al; Final Rules

[[Page 11736]]





48 CFR Chapter 1

Federal Acquisition Circular 2005-01; 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) 2005-01. 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.acqnet.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 2005-01 and specific FAR case numbers. Interested parties may
also visit our Web site at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far.

      Item                          Subject                             FAR case                 Analyst
I..............  Improvements in Contracting for Architect-     2004-001                 Jackson.
                  EngineerServices (Interim).
II.............  Increased Justification and Approval           2004-037                 Jackson.
                  Threshold for DoD, NASA, and Coast Guard
III............  Extension of Authority for Use of Simplified   2004-034                 Jackson.
                  Acquisition Procedures for Certain
                  Commercial Items, Test Program.
IV.............  Addition of Landscaping and Pest Control       2004-036                 Marshall.
                  Services to the Small Business
                  Competitiveness Demonstration Program
V..............  Nonavailable Articles--Policy................  2003-021                 Davis.
VI.............  Cost Accounting Standards Administration.....  1999-025                 R. C. Loeb.
VII............  Elimination of Certain Subcontract             2003-024                 Cundiff.
                  Notification Requirements (Interim).
VIII...........  Use of FAR Clause 52.244-6, Subcontracts for   2002-021                 Jackson.
                  Commercial Items.
IX.............  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 2005-01 amends the FAR as specified below:

Item I--Improvements in Contracting for Architect-Engineer Services
(FAR Case 2004-001) (Interim)

    This interim rule is of particular interest to contracting officers
who acquire architect-engineer services. It clarifies to contracting
officers that architect-engineer services offered under multiple award
schedule contracts or under Federal governmentwide task and delivery
order contracts must--
     Be performed under the supervision of a licensed
professional architect or engineer; and
     Be awarded in accordance with the quality-based selection
procedures in FAR Subpart 36.6.
    In addition, the rule clarifies to contracting officers that task
orders issued under an indefinite delivery contract must be issued
using the procedures in FAR Subpart 36.6 if the services being acquired
specify, substantially or to a dominant extent, the performance of
architect-engineer services. This rule implements section 1427 of the
Services Acquisition Reform Act of 2003 (Pub. L. 108-136).

Item II--Increased Justification and Approval Threshold for DoD, NASA,
and Coast Guard (FAR Case 2004-037) (Interim)

    This interim rule amends the FAR by increasing the justification
and approval thresholds for DoD, NASA, and the U.S. Coast Guard from
$50,000,000 to $75,000,000. This change implements Section 815 of the
Ronald W. Reagan National Defense Authorization Act for Fiscal Year
2005, which amends 10 U.S.C. 2304(f)(1)(B) (Public Law 108-375). This
reduces the administrative burden of approving a justification for
other than full and open competition by allowing the head of the
procuring activity in DoD, NASA, or the Coast Guard to approve
justifications up to $75 million. In addition to this change, FAR
6.304(a)(3)(ii) is corrected to replace the outdated GS-16 reference
with ``a grade above GS-15.''

Item III--Extension of Authority for Use of Simplified Acquisition
Procedures for Certain Commercial Items, Test Program (FAR Case 2004-

    This final rule amends the Federal Acquisition Regulation (FAR) by
extending until January 1, 2008, the timeframe in which an agency may
use simplified procedures to purchase commercial items in amounts
greater than the simplified acquisition threshold, but not exceeding
$5,000,000 ($10,000,000 for acquisitions in support of a contingency
operation or to facilitate the defense against or recovery from
nuclear, biological, chemical, or radiological attack). This change
implements section 817 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005, which amended section 4202(e)
of the Clinger-Cohen Act of 1996 (Public Law 104-106). The statute
allows continued reduction of the burden on contracting officers and
industry when acquiring commercial items or items treated as commercial
items in accordance with 12.102(f)(1).

Item IV--Addition of Landscaping and Pest Control Services to the Small
Business Competitiveness Demonstration Program (FAR Case 2004-036)

    This interim rule amends Federal Acquisition Regulation (FAR)
Subpart 19.10, Small Business Competitiveness Demonstration Program, to
add two North American Industry Classification System (NAICS) codes,
landscaping (561730) and pest control services (561710) to this
program. This amendment implements Section 821 of the Ronald W. Reagan
National Defense Authorization Act for Fiscal Year 2005, Public Law
108-375, which amends

[[Page 11737]]

Section 717 of the Small Business Competitiveness Demonstration Program
Act of 1988 (15 U.S.C. 644 note). This rule provides unrestricted
competition in acquisitions of landscaping and pest control services.

Item V--Nonavailable Articles--Policy (FAR Case 2003-021)

    This final rule addresses Congressional concerns regarding
appropriate use of the list of domestically nonavailable items at FAR
25.104(a). This final rule primarily impacts contracting officers who
purchase items that are on the list, or items that contain an item on
the list as a significant component. The final rule clarifies that
being on the list does not mean that an item is completely nonavailable
from U.S. sources, but that the item is not mined, produced, or
manufactured in the United States in sufficient and reasonably
available commercial quantities and of a satisfactory quality.
Therefore, the final rule emphasizes the need to conduct market
research, appropriate to the circumstances, for potential domestic
sources, when acquiring an article on the list.

Item VI--Cost Accounting Standards Administration (FAR Case 1999-025)

    This final rule amends the FAR by revising Part 30, Cost Accounting
Standards Administration, and the related contract clause at FAR
52.230-6, Administration of Cost Accounting Standards. In addition, a
new contract clause is added at FAR 52.230-7, Proposal Disclosure--Cost
Accounting Practice Changes. The rule describes the process for
determining and resolving the cost impact on contract and subcontracts
when a contractor makes a compliant change to a cost accounting
practice or follows a noncompliant practice. The case was initiated by
OUSD(AT&L)DPAP to address the CAS cost-impact process. The rule is of
particular importance to contracting officers and contractors who
negotiate and administer CAS-covered contracts and subcontracts in
accordance with FAR Part 30.

Item VII--Elimination of Certain Subcontract Notification Requirements
(FAR Case 2003-024) (Interim)

    This interim rule affects contractors that have cost-reimbursement
contracts with the Department of Defense, Coast Guard, or NASA. It
amends FAR 44.201-2, Advance Notification Requirements, under cost-
reimbursement contracts so that contractors that maintain a purchasing
system approved by the contracting officer for the contract do not have
to notify the agency before the award of any--
     Cost-plus-fixed-fee subcontract; or
     Fixed-price subcontract that exceeds the greater of the
simplified acquisition threshold or 5 percent of the total estimated
cost of the contract.
    This rule implements section 842 of the National Defense
Authorization Act for Fiscal Year 2004 (Public Law 108-136).

Item VIII--Use of FAR Clause 52.244-6, Subcontracts for Commercial
Items (FAR Case 2002-021)

    This final rule revises FAR 44.403 by requiring the use of the
clause at 52.244-6, Subcontracts for Commercial Items, in solicitations
and contracts other than those for commercial items. The revised clause
prescription clarifies to contracting officers who acquire construction
that the clause is required in all solicitations and contracts other
than those for commercial items, thereby clearly including construction
contracts that are not for the acquisition of commercial items. This
rule does not make any changes to existing OFPP guidance addressing the
applicability of FAR Part 12 to construction acquisitions.

Item IX--Technical Amendments

    Editorial changes are made at FAR 28.203-3(d), 31.101, 42.203, and
52.225-13(b) in order to update references.

    Dated: February 24, 2005.
Rodney P. Lantier,
Director, Contract Policy Division.

Federal Acquisition Circular

    Federal Acquisition Circular (FAC) 2005-01 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 2005-01 is
effective March 9, 2005, except for Items III, V, and VI, which are
effective April 8, 2005.

    Dated: February 24, 2005.
Deidre A. Lee,
Director, Defense Procurement and Acquisition Policy.

    Dated: February 22, 2005.
Pat Brooks,
Acting Senior Procurement Executive, Office of the Chief Acquisition
Officer, General Services Administration.

    Dated: February 17, 2005.
Tom Luedtke,
Deputy Chief Acquisition Officer, National Aeronautics and Space
[FR Doc. 05-4083 Filed 3-8-05; 8:45 am]