Federal Acquisition Regulation; Elimination of Certain Subcontract Notification Requirements, 225-226 [05-24554]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 1 / Tuesday, January 3, 2006 / Rules and Regulations
the Department of the Treasury, Office
of Foreign Assets Control (OFAC).
On September 20, 2004, the President
signed Executive Order 13357
terminating the national emergency
declared in Executive Order 12543 of
January 7, 1986, with respect to the
policies and actions of the Government
of Libya and revoking that Order, as
well as revoking Executive Order 12544
of January 8, 1986, and Executive Order
12801 of April 15, 1992, all of which
imposed sanctions against Libya in
response to the national emergency.
This Executive Order 13357 also
revoked Executive Order 12538 of
November 15, 1985, which prohibited
the importation into the United States of
petroleum products refined in Libya.
Upon issuance of Executive Order
13357, OFAC issued notice that the
prohibitions of the Libyan Sanctions
Regulations, 31 CFR part 550, would be
lifted as of September 21, 2004. OFAC
has confirmed that there are no more
sanctions against Libya. At a later date,
OFAC will add a note to the Libya
Sanction Regulations (LSR) to notify the
public that those regulations are no
longer in effect. In their view, Executive
Order 13357, their issuance of a press
release, and a statement on their official
website that the regulations lifted are
sufficient authorization until they
publish a notice in the Federal Register.
This final rule also makes conforming
changes to the clause dates in the
clauses at 52.212–5, Contract Terms and
Conditions Required to Implement
Statutes or Executive Orders–
Commercial Items, and 52.213–4, Terms
and Conditions–Simplified Acquisition
(Other than Commercial Items), and
updates the OFAC websites.
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.
rmajette on DSK29S0YB1PROD with RULES6
B. Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to this rule. This final rule
does not constitute a significant FAR
revision within the meaning of FAR
1.501 and Public Law 98–577, and
publication for public comments is not
required. However, the Councils will
consider comments from small entities
concerning the affected FAR Parts 25
and 52 in accordance with 5 U.S.C. 610.
Interested parties must submit such
comments separately and should cite 5
U.S.C. 601, et seq. (FAC 2005–07, FAR
case 2005–026), in correspondence.
VerDate Mar<15>2010
16:03 Nov 10, 2010
Jkt 223001
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 Parts 25 and
52
Government procurement.
Dated: December 22, 2005.
Gerald Zaffos,
Director, Contract Policy Division.
225
enforcement/ofac/sdn’’ in its place; and
removing from the third sentence
‘‘https://www.treas.gov/ofac’’ and adding
‘‘https://www.treas.gov/offices/
enforcement/ofac’’ in its place.
[FR Doc. 05–24553 Filed 12–30–05; 8:45 am]
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 25 and 52 as set
forth below:
■ 1. The authority citation for 48 CFR
parts 25 and 52 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).
PART 25—FOREIGN ACQUISITION
25.701
[Amended]
2. Amend section 25.701 by removing
from the first sentence of paragraph (b)
‘‘Libya,’’; removing from the second
sentence ‘‘https://www.epls.gov/
TerList1.html’’ and adding ‘‘https://
www.treas.gov/offices/enforcement/
ofac/sdn’’ in its place; and removing
from the third sentence ‘‘https://
www.treas.gov/ofac’’ and adding ‘‘https://
www.treas.gov/offices/enforcement/
ofac’’ in its place.
■
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
52.212–5
[Amended]
3. Amend section 52.212–5 by
removing from the heading of the clause
‘‘(SEP 2005)’’ and adding ‘‘(FEB 2006)’’ in
its place; and removing from paragraph
(b)(26) of the clause ‘‘(MAR 2005)’’ and
adding ‘‘(FEB 2006)’’ in its place.
■
52.213–4
[Amended]
4. Amend section 52.213–4 by—
a. Removing from the heading of the
clause ‘‘(JUL 2005)’’ and adding ‘‘ (FEB
2006)’’in its place; and
■ b. Removing from paragraph (a)(1)(iv)
of the clause ‘‘(MAR 2005)’’ and adding
‘‘(FEB 2006)’’ in its place.
■
■
52.225–13
[Amended]
5. Amend section 52.225–13 by—
a. Removing from the heading of the
clause ‘‘(MAR 2005)’’ and adding ‘‘(FEB
2006) ’’in its place; and
■ b. Removing from the first sentence of
paragraph (b) of the clause ‘‘Libya,’’;
removing from the second sentence
‘‘https://epls.arnet.gov/News.html’’ and
adding ‘‘https://www.treas.gov/offices/
■
■
PO 00000
Frm 00029
Fmt 4701
Sfmt 4700
48 CFR Parts 44 and 52
[FAC 2005–07 FAR Case 2003–024, Item IX]
RIN 9000–AK39
Federal Acquisition Regulation;
Elimination of Certain Subcontract
Notification Requirements
AGENCIES: Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
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 modify the
language regarding advance notification
requirements. This change is required to
implement Section 842 of the National
Defense Authorization Act for Fiscal
Year 2004, Public Law 108–136, which
resulted in revisions to 10 U.S.C.
2306(e).
Effective Date: January 3, 2006.
For
clarification of content, contact Ms.
Rhonda Cundiff, Procurement Analyst,
at (202) 501–0044. Please cite FAC
2005–07, FAR case 2003–024. For
information pertaining to status or
publication schedules, contact the FAR
Secretariat at (202) 501–4755.
SUPPLEMENTARY INFORMATION:
DATES:
FOR FURTHER INFORMATION CONTACT:
A. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
70 FR 11761, March 9, 2005, with a
request for comments by May 9, 2005.
The interim rule revised FAR 44.201–2,
Advance notification requirements, and
amended Alternate I of FAR clause
52.244–2, Subcontracts. The change is
required in order to implement Section
842 of the National Defense
Authorization Act for Fiscal Year 2004,
E:\FR\FM\03JAR2.SGM
03JAR2
rmajette on DSK29S0YB1PROD with RULES6
226
Federal Register / Vol. 71, No. 1 / Tuesday, January 3, 2006 / Rules and Regulations
Public Law 108–136. Section 842
removes the requirement for contractors
under cost-reimbursement contracts
with the Department of Defense (DoD),
Coast Guard, and National Aeronautics
and Space Administration (NASA) to
notify the agency before the award of
any cost-plus-fixed-fee subcontract or
any fixed-price subcontract that exceeds
the greater of the simplified acquisition
threshold or 5 percent of the total
estimated cost of the contract if the
contractor maintains a purchasing
system approved by the contracting
officer for the contract.
The final rule differs from the interim
rule in that it deletes Alternate I in its
entirety. The Councils adopted the
suggestion in a public comment that
deletion of Alternate I would be a less
confusing means of implementing the
statute than amending Alternate I.
Renumbering has occurred in FAR
44.204 and 52.244–2 as a result of the
deletion of Alternate I.
In addition, the interim rule made a
technical amendment to Alternate II of
the FAR clause at 52.244–2,
Subcontracts. The interim rule deleted
the reference to paragraph (c) from
paragraph (f)(2) of Alternate II (now
renumbered Alternate I in the final rule)
because paragraph (c) applies to fixedprice type contracts, whereas Alternate
II (now renumbered Alternate I in the
final rule) applies to costreimbursement contracts.
Two comments were received from
one respondent.
Comment: The respondent noted that
the purpose of the FAR change is, in the
case of DoD, the Coast Guard, and
NASA, to eliminate the requirement for
the contractor to notify the agency
before award of certain subcontracts
when the contractor has an approved
purchasing system. The respondent
stated that the language in the interim
rule is confusing and suggested
eliminating Alternate I of 52.244–2
instead.
Response: Concur. The final rule
deletes Alternate I.
Comment: The respondent suggested
rewriting Alternate II of the FAR clause
at 52.244–2 and FAR 44.201–2 to have
the language match what is in 52.244–
2(d)(1).
Response: Nonconcur. Paragraph
(d)(1) of the FAR clause at 52.244–2
specifies the contract types—costreimbursement, time-and-materials, and
labor-hour—subject to subcontract
consent requirements. Alternate II
specifies the contract types—cost-plusfixed-fee and fixed-price—subject to
advance notification requirements even
when subcontract consent is not
required. These two procedures are
VerDate Mar<15>2010
16:03 Nov 10, 2010
Jkt 223001
separate statutory requirements and
apply to different contract types.
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.
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
3. Amend section 52.244–2 by—
a. Removing Alternate I; and
b. Redesignating Alternate II as
Alternate I; and revising the
introductory paragraph to read as
follows:
■
■
■
B. Regulatory Flexibility Act
52.244–2
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 it will
have a small positive effect. Small
businesses do not usually hold prime
contracts which are cost-reimbursement
contracts, so this section would not
apply to them, and any change would
not apply.
Alternate I (JAN 2006). As prescribed in
44.204(a)(2), substitute the following
paragraph (f)(2) for paragraph (f)(2) of the
basic clause:
*
*
*
*
Subcontracts.
*
*
*
*
*
*
[FR Doc. 05–24554 Filed 12–30–05; 8:45 am]
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
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 Parts 44 and
52
Government procurement.
Dated: December 22, 2005.
Gerald Zaffos,
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 44 and 52 as set
forth below:
■ 1. The authority citation for 48 CFR
parts 44 and 52 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).
PART 44—SUBCONTRACTING
POLICIES AND PROCEDURES
2. Amend section 44.204 by revising
paragraph (a)(2) to read as follows:
■
44.204
Contract clauses.
(a)(1) * * *
(2) If a cost-reimbursement contract is
contemplated, for civilian agencies
other than the Coast Guard and the
National Aeronautics and Space
Administration, the contracting officer
shall use the clause with its Alternate I.
*
*
*
*
*
PO 00000
Frm 00030
Fmt 4701
Sfmt 4700
48 CFR Part 52
[FAC 2005–07; FAR Case 2005–006; Item
X]
RIN 9000–AK38
Federal Acquisition Regulation;
Annual Representations and
Certifications – NAICS Code/Size
AGENCIES: Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
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 modify the
provision regarding Annual
Representations and Certifications to
include a section whereby the
contracting officer can insert the
appropriate North American Industry
Classification System (NAICS) code and
small business size standard for the
procurement. Its exclusion in the
original drafting of the subject provision
was an oversight. When the FAR
provision is included in a solicitation,
the provision regarding Small Business
Program Representations, where this
information is normally placed, is not
included. Without this change, there is
no standard way in which the NAICS
code and small business size standard
can be communicated to the vendor.
DATES: Effective Date: January 3, 2006.
E:\FR\FM\03JAR2.SGM
03JAR2
]]>Agencies
[Federal Register Volume 71, Number 1 (Tuesday, January 3, 2006)]
[Rules and Regulations]
[Pages 225-226]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-24554]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 44 and 52
[FAC 2005-07 FAR Case 2003-024, Item IX]
RIN 9000-AK39
Federal Acquisition Regulation; Elimination of Certain
Subcontract Notification Requirements
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
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 modify the
language regarding advance notification requirements. This change is
required to implement Section 842 of the National Defense Authorization
Act for Fiscal Year 2004, Public Law 108-136, which resulted in
revisions to 10 U.S.C. 2306(e).
DATES: Effective Date: January 3, 2006.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Rhonda Cundiff, Procurement Analyst, at (202) 501-0044. Please cite
FAC 2005-07, FAR case 2003-024. For information pertaining to status or
publication schedules, contact the FAR Secretariat at (202) 501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published an interim rule in the Federal
Register at 70 FR 11761, March 9, 2005, with a request for comments by
May 9, 2005. The interim rule revised FAR 44.201-2, Advance
notification requirements, and amended Alternate I of FAR clause
52.244-2, Subcontracts. The change is required in order to implement
Section 842 of the National Defense Authorization Act for Fiscal Year
2004,
[[Page 226]]
Public Law 108-136. Section 842 removes the requirement for contractors
under cost-reimbursement contracts with the Department of Defense
(DoD), Coast Guard, and National Aeronautics and Space Administration
(NASA) to notify the agency before the award of any cost-plus-fixed-fee
subcontract or any fixed-price subcontract that exceeds the greater of
the simplified acquisition threshold or 5 percent of the total
estimated cost of the contract if the contractor maintains a purchasing
system approved by the contracting officer for the contract.
The final rule differs from the interim rule in that it deletes
Alternate I in its entirety. The Councils adopted the suggestion in a
public comment that deletion of Alternate I would be a less confusing
means of implementing the statute than amending Alternate I.
Renumbering has occurred in FAR 44.204 and 52.244-2 as a result of the
deletion of Alternate I.
In addition, the interim rule made a technical amendment to
Alternate II of the FAR clause at 52.244-2, Subcontracts. The interim
rule deleted the reference to paragraph (c) from paragraph (f)(2) of
Alternate II (now renumbered Alternate I in the final rule) because
paragraph (c) applies to fixed-price type contracts, whereas Alternate
II (now renumbered Alternate I in the final rule) applies to cost-
reimbursement contracts.
Two comments were received from one respondent.
Comment: The respondent noted that the purpose of the FAR change
is, in the case of DoD, the Coast Guard, and NASA, to eliminate the
requirement for the contractor to notify the agency before award of
certain subcontracts when the contractor has an approved purchasing
system. The respondent stated that the language in the interim rule is
confusing and suggested eliminating Alternate I of 52.244-2 instead.
Response: Concur. The final rule deletes Alternate I.
Comment: The respondent suggested rewriting Alternate II of the FAR
clause at 52.244-2 and FAR 44.201-2 to have the language match what is
in 52.244-2(d)(1).
Response: Nonconcur. Paragraph (d)(1) of the FAR clause at 52.244-2
specifies the contract types--cost-reimbursement, time-and-materials,
and labor-hour--subject to subcontract consent requirements. Alternate
II specifies the contract types--cost-plus-fixed-fee and fixed-price--
subject to advance notification requirements even when subcontract
consent is not required. These two procedures are separate statutory
requirements and apply to different contract types.
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 it will have a small
positive effect. Small businesses do not usually hold prime contracts
which are cost-reimbursement contracts, so this section would not apply
to them, and any change would not apply.
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 Parts 44 and 52
Government procurement.
Dated: December 22, 2005.
Gerald Zaffos,
Director, Contract Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 44 and 52 as set forth
below:
0
1. The authority citation for 48 CFR parts 44 and 52 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).
PART 44--SUBCONTRACTING POLICIES AND PROCEDURES
0
2. Amend section 44.204 by revising paragraph (a)(2) to read as
follows:
44.204 Contract clauses.
(a)(1) * * *
(2) If a cost-reimbursement contract is contemplated, for civilian
agencies other than the Coast Guard and the National Aeronautics and
Space Administration, the contracting officer shall use the clause with
its Alternate I.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Amend section 52.244-2 by--
0
a. Removing Alternate I; and
0
b. Redesignating Alternate II as Alternate I; and revising the
introductory paragraph to read as follows:
52.244-2 Subcontracts.
* * * * *
Alternate I (JAN 2006). As prescribed in 44.204(a)(2),
substitute the following paragraph (f)(2) for paragraph (f)(2) of
the basic clause:
* * * * *
[FR Doc. 05-24554 Filed 12-30-05; 8:45 am]
BILLING CODE 6820-EP-S
