[Federal Register: June 28, 2006 (Volume 71, Number 124)]
[Rules and Regulations]
[Page 36941-36943]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28jn06-23]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Docket FAR--2006--0023
Federal Acquisition Regulation; Federal Acquisition Circular
2005-10; 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.
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SUMMARY: This document is issued under the joint authority of the
Secretary of Defense, the Administrator of General Services and the
Administrator of the National Aeronautics and Space Administration.
This Small Entity Compliance Guide has been prepared in accordance with
Section 212 of the Small Business
[[Page 36942]]
Regulatory Enforcement Fairness Act of 1996. It consists of a summary
of rules appearing in Federal Acquisition Circular (FAC) 2005-10 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 2005-10 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.acquisition.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.
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Item Subject FAR case Analyst
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I.............. Central Contractor Registration--Taxpayer 2005-007 Jackson.
Identification Number (TIN) Validation.
II............. Procedures Related to Procurement Center 2006-003 Cundiff.
Representatives.
III............ Submission of Cost or Pricing Data on 2004-035 Olson.
Noncommercial Modifications of Commercial
Items.
IV............. Implementation of Wage Determinations OnLine 2005-033 Sochon.
(WDOL) (Interim).
V.............. Free Trade Agreements--El Salvador, Honduras, 2006-006 Sochon.
and Nicaragua (Interim).
VI............. Buy-Back of Assets........................... 2004-014 Olson.
VII............ Technical Amendments......................... ....................... .......................
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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 2005-10 amends the FAR as specified below:
Item I--Central Contractor Registration--Taxpayer Identification Number
(TIN) Validation (FAR Case 2005-007)
The rule adds the process of the government validating a Central
Contractor Registration (CCR) registrant's taxpayer identification
number (TIN) with the Internal Revenue Service (IRS) to improve the
quality of data in the CCR and the federal procurement system.
Additionally, the rule removes outdated language requiring
modifications of contracts prior to December 31, 2003, regarding CCR.
Item II--Procedures Related to Procurement Center Representatives (FAR
Case 2006-003)
This final rule amends the Federal Acquisition Regulation (FAR) to
provide internal procedures to cover situations when the FAR requires
interaction with a procurement center representative and one has not
been assigned to the procuring activity or contract administration
office. It primarily impacts contracting officers and procurement
center representatives.
Item III--Submission of Cost or Pricing Data on Noncommercial
Modifications of Commercial Items (FAR Case 2004-035)
This final rule amends the interim rule issued in FAC 2005-004 and
implements an amendment to 10 U.S.C. 2306a. The policy requires that
the exception from the requirement to obtain certified cost or pricing
data for a commercial item does not apply to noncommercial
modifications of a commercial item that are expected to cost, in the
aggregate, more than $500,000 or 5 percent of the total price of the
contract, whichever is greater. Section 818 of Public Law 108-375, the
Ronald W. Reagan National Defense Authorization Act of Fiscal Year 2005
applies to offers submitted, and to modifications of contracts or
subcontracts made, on or after June 1, 2005. This new policy results
from a statute which changed 10 U.S.C. 2306a. 10 U.S.C. 2306a applies
only to contracts or task or delivery orders funded by DoD, NASA, and
the Coast Guard. The new policy does, however, also apply to contracts
awarded or task or delivery orders placed on behalf of DoD, NASA, or
the Coast Guard by an official of the United States outside of those
agencies, because the statutory requirement of Section 818 applies to
the funds provided by DoD, NASA, or the Coast Guard.
The change to the interim rule clarifies the policy to ensure it is
applied properly. The threshold in the rule applies to an instant
contract action, not to the total value of all contract actions and, as
applicable to subcontractors, the threshold applies to the value of the
subcontract, not the value of the prime contract.
Item IV--Implementation of Wage Determinations OnLine (WDOL) (FAR Case
2005-033) (Interim)
This interim rule implements the Department of Labor (DOL) Wage
Determinations OnLine (WDOL) internet website as the source for Federal
contracting agencies to obtain wage determinations issued by the DOL
for service contracts subject to the McNamara-O'Hara Service Contract
Act (SCA) and for construction contracts subject to the Davis-Bacon Act
(DBA). The rule amends the FAR to direct Federal contracting agencies
to obtain DBA and SCA wage determinations from the WDOL website.
The Contracting Officer (CO) will be able to check the WDOL website
(http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.wdol.gov) to find the applicable wage determination for a
contract action subject to the SCA or DBA. If the WDOL database does
not contain the applicable wage determination for a SCA contract
action, the CO must use the e98 process to request a wage determination
from DOL. The e98 means a DOL approved electronic application,
(available at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.wdol.gov), whereby a contacting officer
submits pertinent information to the DOL and requests a wage
determination directly from the Wage and Hour Division. With regard to
DBA requirements, if the WDOL database does not contain the applicable
wage determination for a DBA contract action, the CO must request a
wage determination by submitting SF-308 to DOL.
The WDOL and e98 processes replace the paper Standard Forms 98 and
98a. In addition, Standard Forms 99, 98, and 98a are deleted from FAR
Part 53. This interim rule also incorporates new geographical
jurisdictions for DOL's Wage and Hour Regional Offices and eliminates
FAR references to the Government Printing Office (GPO) publication of
general wage determinations.
Item V--Free Trade Agreements--El Salvador, Honduras, and Nicaragua
(FAR Case 2006-006) (Interim)
This interim rule allows contracting officers to purchase the goods
and services of El Salvador, Honduras, and Nicaragua without
application of the Buy American Act, if the acquisition is subject to
the Free Trade Agreements. The U.S. Trade Representative negotiated the
Dominican Republic--Central America-United States Free
[[Page 36943]]
Trade Agreement with Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua, and the Dominican Republic. However, the agreements will not
all take effect at the same time. This agreement with El Salvador,
Honduras, and Nicaragua joins the North American Free Trade Agreement
(NAFTA) and the Australia, Chile, Morocco, and Singapore Free Trade
Agreements which are already in the FAR. The threshold for
applicability of the Dominican Republic--Central America--United States
Free Trade Agreement is $64,786 for supplies and services (the same as
other Free Trade Agreements to date except Morocco and Canada) and
$7,407,000 for construction (the same as all other Free Trade
Agreements to date except NAFTA).
Item VI--Buy-Back of Assets (FAR Case 2004-014)
This final rule amends the Federal Acquisition Regulation (FAR)
contract cost principle for depreciation costs. The final rule adds
language which addresses the allowability of depreciation costs of
reacquired assets involved in a sale and leaseback arrangement.
Item VII--Technical Amendments
Editorial changes are made at FAR 8.714, 33.102, and 52.225-11 in
order to update references.
Dated: June 20, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
[FR Doc. 06-5704 Filed 6-27-06; 8:45 am]
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