[Federal Register: April 19, 2006 (Volume 71, Number 75)]
[Rules and Regulations]               
[Page 20309-20311]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Chapter 1

[Docket FAR-2006-0023]

Federal Acquisition Regulation; Federal Acquisition Circular 
2005-09; 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) 2005-09 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

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2005-09 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) 501-4225. For clarification of content, contact the analyst whose 
name appears in the table below.

                                          List of Rules in FAC 2005-09
    Item                      Subject                        FAR case           FAR Analyst
I..........  Federal Technical Data Solution (FedTeDS)  2004-007            Zaffos.
II.........  Definition of Information Technology.....  2004-030            Davis.
III........  OMB Circular A-76........................  2004-021            Zaffos.
IV.........  Combating Trafficking in Persons           2005-012            Clark.
*V.........  Confirmation of HUBZone Certification....  2005-009            Cundiff.
*VI........  Expiration of the Price Evaluation         2005-002            Cundiff.
VII........  Removal of Sanctions Against Certain       2005-045            Clark.
              European Union Member States (Interim).
VIII.......  Free Trade Agreements Morocco (Interim)..  2006-001            Clark.
IX.........  Fast Payment Procedures..................  2004-031            Olson.
X..........  Technical Amendment......................

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 2005-09 amends the FAR as specified below:

Item I--Federal Technical Data Solution (FedTeDS) (FAR Case 2004-007)

    This final rule amends the FAR to require contracting officers to 
make solicitation-related information that requires limited 
availability or distribution available to offerors electronically via 
the Federal Technical Data Solution (FedTeDS), unless certain 
exceptions apply. FedTeDS provides secure, user identification and 
password protected access to solicitation-related data that should not 
be made available to the public on the Governmentwide Point of Entry 
(GPE) website.

Item II--Definition of Information Technology (FAR Case 2004-030)

    This final rule adopts without change the interim rule which 
amended FAR 2.101(b) by revising the definition for ``information 
technology'' to reflect changes to the definition resulting from the 
enactment of Public Law 108-199, Consolidated Appropriations Act, 2004. 
Section 535(b) of Division F of Public Law 108-199 permanently revises 
the term ``information technology,'' which is defined at 40 U.S.C. 
11101, to add ``analysis'' and ``evaluation'' and to clarify the term 
``ancillary equipment.''

Item III--OMB Circular A-76 (FAR Case 2004-021)

    This final rule amends FAR Subpart 7.3 to provide language that is 
consistent with OMB Circular A-76 (Revised), Performance of Commercial 
Activities, dated May 29, 2003. In addition, it provides two new 
provisions that inform potential offerors of the procedures the 
Government will follow for streamlined and standard competitions, as 
they are defined in the Circular.

Item IV--Combating Trafficking in Persons (FAR Case 2005-012)

    This interim rule amends FAR Parts 12, 22 and 52 to implement the 
Trafficking Victims Protection Reauthorization Act of 2003, as amended 
by the Trafficking Victims Protection Reauthorization Act of 2005. The 
statute (22 U.S.C. 7104(g)) requires that the contract contain a clause 
allowing the agency to terminate the contract without penalty if the 
contractor or subcontractor engage in severe forms of trafficking in 
persons or has procured a commercial sex act, or used forced labor in 
the performance of the contract. The interim rule applies to 
contractors awarded service contracts (other than commercial service 
contracts under Part 12). Such contractors must develop policies to 
combat trafficking in persons and notify the contracting officer 
immediately of any information it received from any source that alleges 
a contract employee has engaged in conduct that violates this policy, 
and any actions taken against the employee pursuant to the clause.

Item V--Confirmation of HUBZone Certification (FAR Case 2005-009)

    The interim rule published at 70 FR 43581, July 27, 2005 is 
converted to a final rule without change. The interim rule amended FAR 
19.703 and the clause at 52.219-9 to clarify that prime contractors 
must confirm that a subcontractor representing itself as a Historically 
Underutilized Business Zone (HUBZone) small business concern is 
certified, consistent with the requirements of 15 U.S.C. 632 et seq., 
as amended. This change is expected to increase subcontracting 
opportunities for certified HUBZone small business concerns and ensure 
accurate reporting of subcontract awards to HUBZone small business 
concerns under Government contracts.

Item VI--Expiration of the Price Evaluation Adjustment (FAR Case 2005-

    This final rule adopts, without change, an interim rule that 
amended the FAR to cancel 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 was required because the statutory 
authority for the adjustments had 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 VII--Removal of Sanctions Against Certain European Union Member 
States (FAR Case 2005-045)

    This interim rule removes the sanctions in FAR Part 25 against 
Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Luxembourg, 
the Netherlands, Sweden, and the United Kingdom on acquisitions not 
covered by the World Trade Organization Government Procurement 
Agreement (WTO GPA). These sanctions did not apply to small business 
set-asides, to acquisitions below the simplified acquisition threshold 
using simplified acquisition procedures, or to acquisitions by the 
Department of Defense. Contracting officers may now consider offers of 
end products,

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services, and construction that were previously prohibited by the 

Item VIII--Free Trade Agreements - Morocco (FAR Case 2006-001)

    This interim rule allows contracting officers to purchase the 
products of Morocco without application of the Buy American Act if the 
acquisition is subject to the Morocco Free Trade Agreement. The U.S. 
Trade Representative negotiated a Free Trade Agreement with Morocco, 
which went into effect January 1, 2006. This agreement joins the North 
American Free Trade Agreement (NAFTA) and the Australia, Chile, and 
Singapore Free Trade Agreements which are already in the FAR. The 
threshold for applicability of the Morocco Free Trade Agreement is 
$193,000 for supplies and services, $7,407,000 for construction.

Item IX--Fast Payment Procedures (FAR Case 2004-031)

    This amendment permits, but does not require, fast payment when 
invoices and/or outer shipping containers are not marked ``Fast Pay'', 
provided the contract includes the ``Fast Payment Procedure'' clause. 
If the Fast Payment clause is in the contract, such unmarked invoices 
will no longer be rejected. Instead, they will be paid using either 
fast payment or normal payment procedures. In addition, the revision 
deletes the requirement for marking invoices ``No Receiving Report 

X--Technical Amendment

    An editorial change is made at FAR 19.1005(a) in Item 3 of the 
NAICS Description by removing from the end of NAICS code entry 
``541310'' the word ``or''.

    Dated: April 12, 2006.
Gerald Zaffos,
Director, Contract Policy Division.
[FR Doc. 06-3688 Filed 4-18-06; 8:45 am]