[Federal Register: March 16, 2011 (Volume 76, Number 51)]
[Rules and Regulations]
[Page 14572-14574]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr11-24]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2011-0077, Sequence 2]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-50; 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 DoD, GSA,
and NASA. 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) 2005-50, which amend
the Federal Acquisition Regulation (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 2005-50, 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.regulations.gov.
DATES: For effective dates see separate documents, which follow.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below. Please cite FAC 2005-50 and the specific FAR case number.
For
[[Page 14573]]
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755.
List of Rules in FAC 2005-50
------------------------------------------------------------------------
Item Subject FAR case Analyst
------------------------------------------------------------------------
I.............. Proper Use and 2008-030 Sakalos.
Management of Cost-
Reimbursement
Contracts (Interim).
II............. Requirements for 2007-012 Clark.
Acquisitions Pursuant
to Multiple-Award
Contracts (Interim).
III............ Justification and 2009-038 Robinson.
Approval of Sole-
Source 8(a) Contracts
(Interim).
IV............. Additional 2008-007 Sakalos.
Requirements for
Market Research.
* V............ Socioeconomic Program 2011-004 Morgan.
Parity (Interim).
VI............. Use of Commercial 2008-034 Chambers.
Services Item
Authority.
VII............ Trade Agreements 2009-040 Davis.
Thresholds.
VIII........... Disclosure and 2009-025 Chambers.
Consistency of Cost
Accounting Practices
for Contracts Awarded
to Foreign Concerns.
IX............. Compensation for 2009-026 Chambers
Personal Services.
X.............. Technical Amendments..
------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these FAR cases, refer to
the specific item numbers and subject set forth in the documents
following these item summaries. FAC 2005-50 amends the FAR as specified
below:
Item I--Proper Use and Management of Cost-Reimbursement Contracts (FAR
Case 2008-030) (Interim)
This interim rule amends the FAR to implement section 864 of the
Duncan Hunter National Defense Authorization Act for Fiscal Year 2009
(Pub. L. 110-417). This law aligns with the goal of the Presidential
Memorandum on Government Contracting, issued on March 4, 2009, which is
to reduce waste, fraud, and abuse in Government contracting. This rule
provides internal regulatory guidance on the proper use and management
of all contracts, specifically cost-reimbursement contracts. The rule
identifies (1) circumstances when cost-reimbursement contracts are
appropriate; (2) acquisition plan findings required to support the
contract type selection; and (3) the acquisition resources necessary to
award and manage a cost-reimbursement contract.
Item II--Requirements for Acquisitions Pursuant to Multiple-Award
Contracts (FAR Case 2007-012) (Interim)
This interim rule amends the FAR to implement section 863 of the
Duncan Hunter National Defense Authorization Act for Fiscal Year 2009
(Pub. L. 110-417). Section 863 mandates enhanced competition for orders
placed under multiple-award contracts, including GSA's Federal Supply
Schedules. If an order over the simplified acquisition threshold does
not follow the section 863 competitive procedures, section 863 requires
that a notice and the determination of an exception be published in
FedBizOpps within 14 days after award.
The interim rule relocates all procedures for establishing a
Blanket Purchase Agreement (BPA) or placing an order under a BPA in one
subsection, FAR 8.405-3. New BPAs must be established in accordance
with the new competition standard. Orders over the simplified
acquisition threshold against a new multiple-award BPA must meet the
new competition standards; use is discretionary for existing multiple-
award BPAs.
For orders under FAR part 16 task- and delivery-order contracts,
orders over the simplified acquisition threshold must meet the new
competition procedures; each contract holder must receive notice of the
intent to make a purchase.
Item III--Justification and Approval of Sole-Source 8(a) Contracts
(2009-038) (Interim)
This interim rule amends the FAR to implement section 811 of the
National Defense Authorization Act for Fiscal Year 2010 (Pub. L. 111-
84). Section 811 prohibits the award of a sole-source contract in an
amount over $20 million under the 8(a) program authority (15 U.S.C.
637(a)) without first obtaining a written Justification and Approval
(J&A) approved by an appropriate official and making public the J&A and
related information. This is a new internal Government requirement for
the development and approval of a sole-source J&A for 8(a) sole-source
awards over $20 million. It neither prohibits such awards nor increases
the qualifications required of 8(a) firms. No automated systems are
impacted.
Item IV--Additional Requirements for Market Research (FAR Case 2008-
007)
This final rule adopts, with changes, the interim rule that amended
the FAR to implement section 826 of the National Defense Authorization
Act for Fiscal Year 2008 (Pub. L. 110-181). Section 826, entitled
``Market Research,'' established new requirements for agencies subject
to Title 10, United States Code. As a matter of policy, this provision
of law was applied to contracts awarded by all executive agencies. The
rule requires that market research must be conducted before an agency
places a task or delivery order in excess of the simplified acquisition
threshold under an indefinite-delivery indefinite-quantity contract. In
addition, a prime contractor with a contract in excess of $5 million
for the procurement of items other than commercial items is required to
conduct market research before making purchases that exceed the
simplified acquisition threshold. Among other changes, the final rule
also deletes the language added to FAR 52.244-6 (Alternate I) and
relocates it to a new FAR clause 52.210-1, Market Research.
Item V--Socioeconomic Program Parity (FAR Case 2011-004) (Interim)
This interim rule amends the FAR to implement section 1347 of the
``Small Business Jobs Act of 2010'' (Pub. L. 111-240) and the Small
Business Administration regulations governing specific contracting and
business assistance programs. Section 1347 changed the word ``shall''
to ``may'' at section 31(b)(2)(B) of the Small Business Act (15 U.S.C.
657a(b)(2)(B)), thereby permitting a contracting officer to use
discretion when determining whether an acquisition will be restricted
to a small business participating in the 8(a) Business Development
Program, the Historically Underutilized Business Zone Program, or the
Service-Disabled Veteran-Owned Small Business Program.
[[Page 14574]]
Item VI--Use of Commercial Services Item Authority (FAR Case 2008-034)
This final rule adopts, without change, an interim rule that
implemented section 868 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Pub. L. 110-417). Section 868
provides that the FAR shall be amended with respect to the procurement
of commercial services that are not offered and sold competitively in
substantial quantities in the commercial marketplace, but are of a type
offered and sold competitively in substantial quantities in the
commercial marketplace. Such services may be considered commercial
items only if the contracting officer has determined in writing that
the offeror has submitted sufficient information to evaluate, through
price analysis, the reasonableness of the price for these services.
The rule details the information the contracting officer may
consider in order to make this determination. The rule further details,
when this determination cannot be made, the information which may be
requested to determine price reasonableness.
Item VII--Trade Agreements Thresholds (FAR Case 2009-040)
This final rule adopts, without change, an interim rule that
amended the FAR to adjust the thresholds for application of the World
Trade Organization Government Procurement Agreement and the Free Trade
Agreements as determined by the United States Trade Representative,
according to a pre-determined formula under the agreements.
Item VIII--Disclosure and Consistency of Cost Accounting Practices for
Contracts Awarded to Foreign Concerns (FAR Case 2009-025)
This final rule adopts, without change, the interim rule that
amended the FAR to revise FAR 30.201-4(c), 30.201-4(d)(1), 52.230-4,
and 52.230-6 to maintain consistency between FAR and Cost Accounting
Standards (CAS) regarding the administration of the Cost Accounting
Standard Board's (CASB) rules, regulations and standards. This revision
was necessitated by the CASB publishing a final rule in the Federal
Register on March 26, 2008 (73 FR 15939) which implemented the revised
clause, Disclosure and Consistency of Cost Accounting Practices--
Foreign Concerns, in CAS-covered contracts and subcontracts awarded to
foreign concerns.
Item IX--Compensation for Personal Services (FAR Case 2009-026)
This final rule adopts, without change, the interim rule that
amended the FAR to align the existing FAR 31.205-6(q)(2)(i) through
(vi) with the changes made in Cost Accounting Standards (CAS) Board
standards 412 ``Cost Accounting Standard for composition and
measurement of pension cost,'' and 415 ``Accounting for the cost of
deferred compensation.'' Formerly, the applicable CAS standard for
measuring, assigning, and allocating the costs of Employee Stock
Ownership Plans (ESOPs) depended on whether the ESOP met the definition
of a pension plan at FAR 31.001. Costs for ESOPs meeting the definition
of a pension plan at FAR 31.001 were covered by CAS 412, while the
costs for ESOPs not meeting the definition of a pension plan at FAR
31.001 were covered by CAS 415. Now, regardless of whether an ESOP
meets the definitions of a pension plan at FAR 31.001, all costs of
ESOPs are covered by CAS 415.
Item X--Technical Amendments
Editorial changes are made at FAR 19.201, 52.212-3, and 52.212-5.
Dated: March 4, 2011.
Millisa Gary,
Acting Director, Office of Governmentwide Acquisition Policy.
[FR Doc. 2011-5562 Filed 3-15-11; 8:45 am]
BILLING CODE 6820-EP-P