[Federal Register: March 22, 2007 (Volume 72, Number 55)]
[Rules and Regulations]
[Page 13586]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22mr07-17]
[[Page 13586]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 13
[FAC 2005-16; FAR Case 2005-029; Item II;Docket 2006-0020, Sequence 21]
RIN 9000-AK46
Federal Acquisition Regulation; FAR Case 2005-029, Termination or
Cancellation of Purchase Orders
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to correct the
inadvertent omission of an appropriate reference pertaining to the
termination for cause procedures for purchase orders that have been
accepted in writing.
DATES: Effective Date: March 22, 2007.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Mr. Michael Jackson, Procurement Analyst, at (202) 208-4949. Please
cite FAC 2005-16, FAR case 2005-029. For information pertaining to
status or publication schedules, contact the FAR Secretariat at (202)
501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends the Federal Acquisition Regulation to amend
FAR 13.302-4 by reinstating the appropriate coverage for termination
for cause of commercial purchase orders. For commercial purchase orders
that have been accepted in writing by the contractor, current
references to FAR 12.403(d) and FAR 52.212-4(l) as stated in 13.302-
4(a) address termination for convenience. The current FAR language at
13.302-4(a) was established under FAC 97-3, published in the Federal
Register at 62 FR 64912 on December 9, 1997, and became effective on
February 9, 1998. This change constituted a complete rewrite and
reorganization of FAR Part 13. Previously, FAR Part 13 identified both
termination for cause as well as for convenience as the termination
methods available to contracting officers. Furthermore, FAR 12.403
permits the Government to terminate a contract for commercial items
either for the convenience of the Government or for cause, and makes no
distinction based on the dollar value of the commercial item contract,
nor the contractual method utilized to procure the commercial item.
Therefore, this final rule amends FAR Part 13.302-4(a) by reinstating
the appropriate coverage for and references to termination for cause of
commercial purchase orders.
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 71 FR 14445 on March 22, 2006. The 60-day comment period
for the proposed rule ended May 22, 2006. One respondent provided a
comment. This comment is discussed below.
Public Comment
Comment: The commenter suggests that the words ``in writing by the
contractor'' be deleted. The commenter asserts that the beginning of
performance of work under a purchase order should be recognized as
contractor acceptance of the purchase order, which in most cases,
begins on the date of award.
Response: The scope of this case is the correction of an
administrative error to re-establish the FAR language for termination
for cause procedures for purchase orders that have been accepted in
writing. To revise the case now to include all purchase orders, whether
accepted in writing or not, would exceed the scope of what was
published in the proposed rule. The Councils recognize that this issue
requires additional review and will set up a separate case to address
it.
Summary of Changes
FAR 13.302-4(a) is revised to reinstitute references to procedures
for termination for cause as well as termination for convenience under
FAR 12.403 and 52.212-4(l) or (m).
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because the rule does not
change the Government's existing termination rights but merely
clarifies those rights by correcting an inadvertent error in the FAR.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
List of Subjects in 48 CFR Part 13
Government procurement.
Dated: March 15, 2007
Ralph De Stefano,
Director, Contract Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR part 13 as set forth below:
PART 13--SIMPLIFIED ACQUISITION METHODS
0
1. The authority citation for 48 CFR part 13 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
0
2. Amend section 13.302-4 by revising paragraphs (a)(1) and (b)(2) to
read as follows:
13.302-4 Termination or cancellation of purchase orders.
(a) * * *
(1) 12.403 and 52.212-4(l) or (m) for commercial items; or
* * * * *
(b) * * *
(2) If the contractor does not accept the cancellation or claims
that costs were incurred as a result of beginning performance under the
purchase order, the contracting officer shall process the action as a
termination prescribed in paragraph (a) of this subsection.
[FR Doc. 07-1356 Filed 3-21-07; 8:45 am]
BILLING CODE 6820-EP-S