[Federal Register: September 30, 2005 (Volume 70, Number 189)]
[Rules and Regulations]               
[Page 57473-57474]
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. It consists of a summary of rules appearing in Federal 
Acquisition Circular (FAC) 2005-06 which amend the FAR. An asterisk (*) 
next to a rule indicates that a regulatory flexibility analysis has 
been prepared. Interested parties may obtain further information 
regarding these rules by referring to FAC 2005-06 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.acqnet.gov/far

FOR FURTHER INFORMATION CONTACT: Laurieann Duarte, FAR Secretariat, 
(202) 501-4755. For clarification of content, contact the analyst whose 
name appears in the table below.

List of Rules in FAC 2005-06

      Item                          Subject                             FAR case                 Analyst
*I.............  Information Technology Security (Interim)....  2004-018                 Davis.
II.............  Improvements in Contracting for Architect-     2004-001                 Davis.
III............  Title 40 of United States Code Reference       2005-010                 Zaffos.
*IV............  Implementation of the Anti-Lobbying Statute..  1989-093                 Woodson.
V..............  Increased Justification and Approval           2004-037                 Jackson.
                  Threshold forDOD, NASA, and Coast Guard.
*VI............  Addition of Landscaping and Pest Control       2004-036                 Marshall.
                  Services to theSmall Business
                  Competitiveness Demonstration Program.
*VII...........  Powers of Attorney for Bid Bonds.............  2003-029                 Davis.
*VIII..........  Expiration of the Price Evaluation             2005-002                 Cundiff.
IX.............  Accounting for Unallowable Costs.............  2004-006                 Olson.
X..............  Reimbursement of Relocation Costs on a Lump-   2003-002                 Olson.
                  Sum Basis.
XI.............  Training and Education Cost Principle........  2001-021                 Olson.

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 2005-06 amends the FAR as specified below:

*Item I--Information Technology Security (FAR Case 2004-018)

    This interim rule amends the FAR to implement the Information 
Technology (IT) Security provisions of the Federal Information Security 
Management Act of 2002 (FISMA) (Title III of the E-Government Act of 
2002 (E-Gov Act)).
    This interim rule focuses on the importance of system and data 
security by contracting officials and other members of the acquisition 
team. The intent of adding specific guidance in the FAR is to provide 
clear, consistent guidance to acquisition officials and program 
managers; and to encourage and strengthen communication with IT 
security officials, chief information officers, and other affected 

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

    This final rule implements Section 1427(b) of the Services 
Acquisition Reform Act of 2003, which prohibits architect-engineering 
services from being offered under GSA multiple-award schedule contracts 
or under Governmentwide task and delivery order contracts unless they 
are awarded using the procedures of the Brooks Architect-Engineer Act 
and the services are performed under the direct supervision of a 
professional architect or engineer licensed, registered, or certified 
in the State, Federal district or outlying area, in which the services 
are to be performed. This rule is of interest to agencies and 
contracting officers that use GSA schedules and Governmentwide task and 
delivery order contracts.

Item III--Title 40 of United States Code Reference Corrections (FAR 
Case 2005-010)

    This final rule amends the FAR to reflect the most recent 
codification of Title 40 of the United States Code. No substantive 
changes are being made to the FAR.

*Item IV--Implementation of the Anti-Lobbying Statute (FAR Case 1989-

    This final rule converts the interim rule published in the Federal 
Register at 55 FR 3190, January 30, 1990 to a final rule with minor 
changes amends the FAR to implement section 319 of the Department of 
the Interior and Related Agencies Appropriations Act, Public Law 101-
121, which added a new section 1352 to Title 31 of the United States 
Code, entitled ``Limitations on the use of funds to influence certain 
Federal contracting and financial transactions.'' Section 319 generally 
prohibits recipients of Federal contracts, grants, and loans from using 
appropriated funds for lobbying the executive or legislative branches 
of the

[[Page 57474]]

Federal Government in connection with a specific contract, grant or 
loan. It also requires that each person who requests or receives a 
contract, grant or cooperative agreement in excess of $100,000 or a 
Federal commitment to insure or guarantee a loan in excess of $150,000 
must disclose lobbying with other than appropriated funds. The rule 
requires contracting officers, in accordance with FAR 3.808, to insert 
in all solicitations and contracts expected to exceed $100,000 the 
provision at FAR 52.203-11, ``Certification and Disclosure Regarding 
Payments to Influence Certain Federal Transaction,'' and the clause at 
FAR 52.203-12, ``Limitations on Payments to Influence Certain Federal 

Item V--Increased Justification and Approval Threshold for DOD, NASA, 
and Coast Guard (FAR Case 2004-037)

    This final rule converts the interim rule published in the Federal 
Register at 70 FR 11739, March 9, 2005, to a final rule with minor 
changes. The rule amended the FAR by increasing the justification and 
approval thresholds for DoD, NASA, and the U.S. Coast Guard from $50 
million to $75 million. This change implemented 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). In addition, corresponding 
changes have been made to FAR 13.501. The rule will reduce 
administrative burden for ordering activities.

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

    This final rule finalizes, without change, the interim rule 
published in the Federal Register at 70 FR 11740, March 9, 2005. The 
rule implements Section 821 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005. Section 821 amended Section 717 
of the Small Business Competitiveness Demonstration Program Act of 1988 
by adding landscaping and pest control services to the program. As a 
result, agencies are precluded from considering acquisitions for 
landscaping and pest control services over the emerging small business 
reserve amount, currently $25,000, for small business set-asides unless 
the set-asides are needed to meet their assigned goals. The change may 
impact small businesses because these awards were previously set-aside 
for small businesses.

*Item VII--Powers of Attorney for Bid Bonds (FAR Case 2003-029)

    This final rule is of particular interest to contracting officers 
and offerors in acquisitions of construction that require a bid bond. 
This rule was initiated at the request of the Office of Federal 
Procurement Policy to resolve the controversy surrounding contracting 
officers' decisions regarding the evaluation of bid bonds and 
accompanying powers of attorney. This rule amends the FAR to revise the 
policy relating to acceptance of copies of powers of attorney 
accompanying bid bonds. This revision to FAR parts 19 and 28 removes 
the matter of authenticity and enforceability of powers of attorney 
from a contracting officer's responsiveness determination, which is 
based solely on documents available at the time of bid opening. 
Instead, the rule instructs contracting officers to address these 
issues after bid opening.

*Item VIII--Expiration of the Price Evaluation Adjustment (FAR Case 

    This interim rule cancels the authority for civilian agencies, 
other than NASA and the U.S. Coast Guard, to apply the price evaluation 
adjustment to certain small disadvantaged business concerns in 
competitive acquisitions. The change is required because the statutory 
authority for the adjustments has expired. As a result, certain small 
disadvantaged business concerns will no longer benefit from the 
adjustments. DoD, NASA, and the U.S. Coast Guard are authorized to 
continue applying the price evaluation adjustment.

Item IX--Accounting for Unallowable Costs (FAR Case 2004-006)

    This final rule amends FAR 31.201-6, Accounting for unallowable 
costs, by adding paragraphs (c)(2) through (c)(5) to provide specific 
criteria on the use of statistical sampling as an acceptable practice 
to identify unallowable costs, including the applicability of penalties 
for failure to exclude certain projected unallowable costs. The final 
rule also amends FAR 31.109, Advance agreements, by adding 
``statistical sampling methods'' as an example of the type of item for 
which an advance agreement may be appropriate. The case was initiated 
by the Director, Defense Procurement and Acquisition Policy, who 
established an interagency ad hoc committee to perform a comprehensive 
review of FAR Part 31, Contract Cost Principles and Procedures. The 
rule is of particular importance to contracting officers and 
contractors who negotiate contracts and modifications, and determine 
costs in accordance with FAR Part 31.

Item X--Reimbursement of Relocation Costs on a Lump-Sum Basis (FAR Case 

    This final rule amends FAR 31.205-35 to permit contractors the 
option of being reimbursed on a lump-sum basis for three types of 
employee relocation costs: (1) costs of finding a new home, (2) costs 
of travel to the new location, and (3) costs of temporary lodging. 
These three types of costs are in addition to the miscellaneous 
relocation costs for which lump-sum reimbursements are already 

Item XI--Training and Education Cost Principle (FAR Case 2001-021)

    This final rule amends the FAR by revising the contract cost 
principle at FAR 31.205-44, Training and education costs. The amendment 
streamlines the cost principle and increases clarity by eliminating 
restrictive and confusing language, and by restructuring the rule to 
list only specifically unallowable costs.

    Dated: September 22, 2005.
Julia B. Wise,
Director, Contract Policy Division.
[FR Doc. 05-19479 Filed 9-29-05; 8:45 am]