Federal Acquisition Regulation; Federal Acquisition Circular 2005-13; Small Entity Compliance Guide, 57380-57382 [06-8219]

Download as PDF 57380 Federal Register / Vol. 71, No. 188 / Thursday, September 28, 2006 / Rules and Regulations Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION PART 5—PUBLICIZING CONTRACT ACTIONS Federal Acquisition Regulation; Technical Amendments Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCIES: This document makes amendments to the Federal Acquisition Regulation (FAR) in order to make editorial changes. DATES: Effective Date: September 28, 2006. SUMMARY: The FAR Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 501–4755, for information pertaining to status or publication schedules. Please cite FAC 2005–13, Technical Amendments. FOR FURTHER INFORMATION CONTACT: List of Subjects in 48 CFR Parts 1, 3, 4, 5, 7, 13, 26, 33, 49, 50, 52, and 53 Government procurement. Dated: September 19, 2006 Ralph De Stefano, Director, Contract Policy Division. [Amended] 6. Amend section 7.503 by removing from paragraph (c)(20) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I PART 13—SIMPLIFIED ACQUISITION PROCEDURES 13.305–1 [Amended] 7. Amend section 13.305–1 by removing ‘‘General Accounting Office’’ and adding ‘‘GAO’’ in its place. I PART 26—OTHER SOCIOECONOMIC PROGRAMS [Amended] 50.303–1 [Amended] 13. Amend section 50.303–1 by removing from paragraph (d)(4) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 52.212–1 [Amended] 14. Amend section 52.212-1 by revising the date of the clause to read ‘‘(SEP 2006)’’; and by removing from paragraph (b)(8) ‘‘52.212-3(j)’’ and adding ‘‘52.212-3(k)’’ in its place. I 52.233–2 [Amended] 15. Amend section 52.233-2 by revising the date of clause to read ‘‘(SEP 2006)’’; and by removing from paragraph (a) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I PART 53—FORMS 53.109 [Amended] 16. Amend section 53.109 by removing ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I 8. Amend section 26.202 by removing from paragraph (b) ‘‘(See 6.603).’’ and adding ‘‘(See 6.603.)’’ in its place. [FR Doc. 06–8218 Filed 9–27–06; 8:45 am] 26.203 DEPARTMENT OF DEFENSE [Amended] BILLING CODE 6820–EP–S 9. Amend section 26.203 by removing from paragraph (c) ‘‘insert’’ and adding ‘‘insert the’’ in its place. GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Chapter 1 I [Amended] 10. Amend section 33.102 by removing from paragraphs (a) and (b)(1) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I [Amended] 2. Amend section 1.602–3 by removing from paragraphs (b)(4) and (d) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I jlentini on PROD1PC65 with RULES2 7.503 [Amended] I 33.102 PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST [Amended] 11. Amend section 49.603–3 by removing from paragraph (b)(7)(x) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I [Amended] PO 00000 Frm 00026 Fmt 4701 Sfmt 4700 Docket FAR–2006–0023, Sequence 5 Federal Acquisition Regulation; Federal Acquisition Circular 2005-13; Small Entity Compliance Guide Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Small Entity Compliance Guide. AGENCIES: PART 49—TERMINATION OF CONTRACTS 49.603–3 3. Amend section 3.502–2 by removing from paragraph (h) ‘‘General Jkt 208001 PART 7—ACQUISITION PLANNING 50.203 PART 33—PROTESTS, DISPUTES, AND APPEALS Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). 20:02 Sep 27, 2006 [Amended] 5. Amend section 5.503 by removing from paragraph (c) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I I Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 3, 4, 5, 7, 13, 26, 33, 49, 50, 52, and 53 as set forth below: I 1. The authority citation for 48 CFR parts 1, 3, 4, 5, 7, 13, 26, 33, 49, 50, 52, and 53 continues to read as follows: VerDate Aug<31>2005 5.503 26.202 I I [Amended] 4. Amend section 4.602 by removing from paragraph (a)(1) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. I [FAC 2005–13; Item VIII; Docket FAR–2006– 0021; Sequence 4] 3.502–2 12. Amend section 50.203 by removing from paragraph (e)(1)(iii) ‘‘General Accounting Office’’ and adding ‘‘Government Accountability Office’’ in its place. 4.602 48 CFR Parts 1, 3, 4, 5, 7, 13, 26, 33, 49, 50, 52, and 53 1.602–3 PART 50—EXTRAORDINARY CONTRACTUAL ACTIONS PART 4—ADMINISTRATIVE MATTERS DEPARTMENT OF DEFENSE SUMMARY: This document is issued under the joint authority of the Secretary of Defense, the Administrator E:\FR\FM\28SER2.SGM 28SER2 57381 Federal Register / Vol. 71, No. 188 / Thursday, September 28, 2006 / Rules and Regulations 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 Regulatory Enforcement Fairness Act of 1996. It consists of a summary of rules appearing in Federal Acquisition Circular (FAC) 2005-13 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 2005-13 which precedes this document. These documents are also available via the Internet at https:// www.regulations.gov. 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 13 Item Subject *I ........... *II .......... III .......... *IV ........ V ........... VI .......... *VII ....... VIII ........ Implement OMB Policy on the Use of Brand Name Specifications (Interim) ..................................... Information Technology Security ......................................................................................................... Online Representations and Certifications Application (ORCA) Archiving Capability (Interim) ......... Inflation Adjustment of Acquisition-Related Thresholds ...................................................................... Trade Agreements–;Thresholds .......................................................................................................... Reporting of Purchases from Overseas Sources (Interim) ................................................................. Exception to the Buy American Act for Commercial Information Technology .................................... Technical Amendments ....................................................................................................................... Item I—Implement OMB Policy on the Use of Brand Name Specifications (Interim) (FAR Case 2005-037) This interim rule amends the Federal Acquisition Regulation (FAR) to implement the memoranda issued by the Office of Management and Budget dated April 11, 2005 and April 17, 2006, requiring agencies to publish on the Governmentwide point of entry (GPE) or e-Buy the documentation required by the FAR to support the use of a brand name specification. The rule is intended to limit the use of brand name specifications and provide for maximum competition. jlentini on PROD1PC65 with RULES2 Item II—Information Technology Security (FAR Case 2004-018) This final rule amends the interim rule published September 30, 2005, as corrected on November 14, 2005, to a final rule without change. The interim rule amended FAR Parts 1, 2, 7, 11, and 39 to implement the Information Technology (IT) Security provisions of the Federal Information Security Management Act of 2002 (FISMA), (Title III of Public Law 107-347, the EGovernment Act of 2002 (E-Gov Act)). The rule focuses on the importance of system and data security by contracting officials and other members of the acquisition team. The intent of adding specific guidance in the FAR is to provide clear, consistent guidance to acquisition officials and program managers; and to encourage and strengthen communication with IT security officials, chief information officers, and other affected parties. VerDate Aug<31>2005 20:44 Sep 27, 2006 Jkt 028001 FAR case 2005–037 2004–018 2005–025 2004–033 2005–030 2005–034 2005–022 Analyst Davis. Davis. Woodson. Jackson. Parnell. Olson. Olson. Act, and trade agreements thresholds. This rule also escalates some nonstatutory acquisition-related thresholds. Often any impact of these threshold increases will be beneficial, by preventing burdensome requirements from applying to more and more small dollar value acquisitions, which are the acquisitions in which small businesses are most likely to participate. One threshold change in this rule which may temporarily impact small business is the increase of the micro-purchase threshold (FAR 2.101) from $2,500 to $3,000, because the simplified acquisition threshold will not be raised at this time. Other frequently used thresholds that are adjusted include— • The FPDS reporting threshold (FAR 4.602(c)) will be raised from $2,500 to $3,000. • Commercial Items test program ceiling (FAR 13.500) will be raised from $5,000,000 to $5,500,000. • The cost and pricing data threshold (FAR 15.403-4) will be raised from $550,000 to $650,000. The prime contractor subcontracting plan (FAR 19.702) floor will be raised from $500,000 to $550,000, but for construction ($1,000,000) is unchanged. Item III—Online Representations and Certifications Application (ORCA) Archiving Capability (Interim)(FAR Case 2005-025) This interim rule amends FAR Parts 4, 12, 14, and 15 to address the record retention policy where the Online Representations and Certifications Application (ORCA) is used to submit an offeror’s representations and certifications. Under FAR Subpart 4.12, prospective contractors are required to submit Annual Representations and Certifications via the ORCA. Data in ORCA is archived and electronically retrievable. Therefore, when a prospective contractor has completed representations and certifications electronically via ORCA, the contracting officer may reference the date of ORCA verification in the associated Government contract file rather than including a paper copy of the electronically-submitted representations and certifications in the file. Such a reference satisfies contract file documentation requirements of 4.803(a)(11). However, if an offeror identifies changes to ORCA data pursuant to the FAR provisions at 52.204-8(c) or 52.212-3(k), the contracting officer must include a copy of the changes in the contract file. Item V—Trade Agreements— Thresholds (FAR Case 2005-030) Item IV—Inflation Adjustment of Acquisition-Related Thresholds (FAR Case 2004-033) This final rule adjusts acquisitionrelated thresholds in the FAR for inflation. It implements Section 807 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-375). Section 807 provides for adjustment every 5 years of acquisition-related thresholds, except for Davis-Bacon Act, Service Contract This final rule converts the interim rule published at 71 FR 864, January 5, 2006, to a final rule without change. This rule changes the thresholds for application of the World Trade Organization Government Procurement Agreement and the other Free Trade Agreements with Canada, Mexico, Chile, Singapore, and Australia. These threshold increases occur every two years in order to keep pace with inflation. PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 E:\FR\FM\28SER2.SGM 28SER2 57382 Federal Register / Vol. 71, No. 188 / Thursday, September 28, 2006 / Rules and Regulations Item VI—Reporting of Purchases from Overseas Sources (Interim) (FAR Case 2005-034) jlentini on PROD1PC65 with RULES2 This interim rule amends FAR Part 25 and adds a provision in FAR 52.225 to implement Section 837 of Division A of the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act, 2006 (Pub. L. 109-115). Section 837 requires the head of each Federal agency to submit a report to Congress relating to acquisitions of articles, materials, or supplies that are manufactured outside the United States. The new provision requests from offerors necessary data regarding place of manufacture. The new provisions will require an offeror to indicate whether the place of manufacture of the end products it expects to provide in response to the solicitation is predominantly inside or outside the United States. Whenever the place of manufacture for a contract is coded outside the United States, the contracting officer will be required to enter into Federal Procurement Data System (FPDS) the reason for buying items manufactured outside the United States. VerDate Aug<31>2005 20:02 Sep 27, 2006 Jkt 208001 Item VII—Exception to the Buy American Act for Commercial Information Technology (FAR Case 2005-022) This final rule converts the interim rule published at 71 FR 223, January 3, 2006, to a final rule without change. This final rule amends FAR 25.103 and Subpart 25.11 to implement Section 535(a) of Division F of the Consolidated Appropriations Act, 2004, and similar sections in subsequent appropriations acts. Section 535(a) authorizes an exception to the Buy American Act for acquisitions of information technology that are commercial items. The final rule applies to all offerors responding to solicitations for commercial information technology where the Buy American Act previously applied (generally, acquisitions between the micropurchase threshold and $193,000). The effect of this exemption is that the following clauses are no longer applicable in acquisition of commercial information technology: • FAR 52.225-1, Buy American Act– Supplies, • FAR 52.225-2, Buy American Act Certificate, • FAR 52.225-3, Buy American Act– Free Trade Agreements–Israeli Trade Act, PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 • FAR 52.225-4, Buy American Act– Free Trade Agreements–Israeli Trade Act Certificate. This is because the Buy American Act no longer applies. The Free Trade Agreement non-discriminatory provisions are no longer necessary since all products now are treated without the restrictions of the Buy American Act. The Trade Agreements provision and clause at FAR 52.225–5 and FAR 52.225–6 are still necessary when the Trade Agreements Act applies (acquisitions above $193,000). The Trade Agreements provision and clause already waive applicability of the Buy American Act for eligible products and are needed to implement the restrictions on procurement of noneligible end products. Section 535 and subsequent similar sections waived only the Buy American Act, not all restrictions on the purchase of foreign information technology. Item VIII—Technical Amendments Editorial changes are made at FAR 1, 3, 4, 5, 7, 13, 26, 33, 49, 50, 52, and 53 in order to update references. Dated: September 19, 2006 Ralph De Stefano, Director, Contract Policy Division. [FR Doc. 06–8219 Filed 9–27–06; 8:45 am] BILLING CODE 6820–EP–S E:\FR\FM\28SER2.SGM 28SER2

Agencies

[Federal Register Volume 71, Number 188 (Thursday, September 28, 2006)]
[Rules and Regulations]
[Pages 57380-57382]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8219]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Docket FAR-2006-0023, Sequence 5

Federal Acquisition Regulation; Federal Acquisition Circular
2005-13; 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

[[Page 57381]]

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
Regulatory Enforcement Fairness Act of 1996. It consists of a summary
of rules appearing in Federal Acquisition Circular (FAC) 2005-13 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 2005-13 which precedes this document. These documents are also
available via the Internet at https://www.regulations.gov.

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 13
----------------------------------------------------------------------------------------------------------------
Item Subject FAR case Analyst
----------------------------------------------------------------------------------------------------------------
*I............. Implement OMB Policy on the Use of Brand Name 2005-037 Davis.
Specifications (Interim).
*II............ Information Technology Security.............. 2004-018 Davis.
III............ Online Representations and Certifications 2005-025 Woodson.
Application (ORCA) Archiving Capability
(Interim).
*IV............ Inflation Adjustment of Acquisition-Related 2004-033 Jackson.
Thresholds.
V.............. Trade Agreements-;Thresholds................. 2005-030 Parnell.
VI............. Reporting of Purchases from Overseas Sources 2005-034 Olson.
(Interim).
*VII........... Exception to the Buy American Act for 2005-022 Olson.
Commercial Information Technology.
VIII........... Technical Amendments......................... ....................... .......................
----------------------------------------------------------------------------------------------------------------

Item I--Implement OMB Policy on the Use of Brand Name Specifications
(Interim) (FAR Case 2005-037)

This interim rule amends the Federal Acquisition Regulation (FAR)
to implement the memoranda issued by the Office of Management and
Budget dated April 11, 2005 and April 17, 2006, requiring agencies to
publish on the Governmentwide point of entry (GPE) or e-Buy the
documentation required by the FAR to support the use of a brand name
specification. The rule is intended to limit the use of brand name
specifications and provide for maximum competition.

Item II--Information Technology Security (FAR Case 2004-018)

This final rule amends the interim rule published September 30,
2005, as corrected on November 14, 2005, to a final rule without
change. The interim rule amended FAR Parts 1, 2, 7, 11, and 39 to
implement the Information Technology (IT) Security provisions of the
Federal Information Security Management Act of 2002 (FISMA), (Title III
of Public Law 107-347, the E-Government Act of 2002 (E-Gov Act)). The
rule focuses on the importance of system and data security by
contracting officials and other members of the acquisition team. The
intent of adding specific guidance in the FAR is to provide clear,
consistent guidance to acquisition officials and program managers; and
to encourage and strengthen communication with IT security officials,
chief information officers, and other affected parties.

Item III--Online Representations and Certifications Application (ORCA)
Archiving Capability (Interim)(FAR Case 2005-025)

This interim rule amends FAR Parts 4, 12, 14, and 15 to address the
record retention policy where the Online Representations and
Certifications Application (ORCA) is used to submit an offeror's
representations and certifications. Under FAR Subpart 4.12, prospective
contractors are required to submit Annual Representations and
Certifications via the ORCA. Data in ORCA is archived and
electronically retrievable. Therefore, when a prospective contractor
has completed representations and certifications electronically via
ORCA, the contracting officer may reference the date of ORCA
verification in the associated Government contract file rather than
including a paper copy of the electronically-submitted representations
and certifications in the file. Such a reference satisfies contract
file documentation requirements of 4.803(a)(11). However, if an offeror
identifies changes to ORCA data pursuant to the FAR provisions at
52.204-8(c) or 52.212-3(k), the contracting officer must include a copy
of the changes in the contract file.

Item IV--Inflation Adjustment of Acquisition-Related Thresholds (FAR
Case 2004-033)

This final rule adjusts acquisition-related thresholds in the FAR
for inflation. It implements Section 807 of the Ronald W. Reagan
National Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-
375). Section 807 provides for adjustment every 5 years of acquisition-
related thresholds, except for Davis-Bacon Act, Service Contract Act,
and trade agreements thresholds. This rule also escalates some
nonstatutory acquisition-related thresholds. Often any impact of these
threshold increases will be beneficial, by preventing burdensome
requirements from applying to more and more small dollar value
acquisitions, which are the acquisitions in which small businesses are
most likely to participate. One threshold change in this rule which may
temporarily impact small business is the increase of the micro-purchase
threshold (FAR 2.101) from $2,500 to $3,000, because the simplified
acquisition threshold will not be raised at this time. Other frequently
used thresholds that are adjusted include--
The FPDS reporting threshold (FAR 4.602(c)) will be raised
from $2,500 to $3,000.
Commercial Items test program ceiling (FAR 13.500) will be
raised from $5,000,000 to $5,500,000.
The cost and pricing data threshold (FAR 15.403-4) will be
raised from $550,000 to $650,000.
The prime contractor subcontracting plan (FAR 19.702) floor will be
raised from $500,000 to $550,000, but for construction ($1,000,000) is
unchanged.

Item V--Trade Agreements--Thresholds (FAR Case 2005-030)

This final rule converts the interim rule published at 71 FR 864,
January 5, 2006, to a final rule without change. This rule changes the
thresholds for application of the World Trade Organization Government
Procurement Agreement and the other Free Trade Agreements with Canada,
Mexico, Chile, Singapore, and Australia. These threshold increases
occur every two years in order to keep pace with inflation.

[[Page 57382]]

Item VI--Reporting of Purchases from Overseas Sources (Interim) (FAR
Case 2005-034)

This interim rule amends FAR Part 25 and adds a provision in FAR
52.225 to implement Section 837 of Division A of the Transportation,
Treasury, Housing and Urban Development, the Judiciary, the District of
Columbia, and Independent Agencies Appropriations Act, 2006 (Pub. L.
109-115). Section 837 requires the head of each Federal agency to
submit a report to Congress relating to acquisitions of articles,
materials, or supplies that are manufactured outside the United States.
The new provision requests from offerors necessary data regarding place
of manufacture. The new provisions will require an offeror to indicate
whether the place of manufacture of the end products it expects to
provide in response to the solicitation is predominantly inside or
outside the United States. Whenever the place of manufacture for a
contract is coded outside the United States, the contracting officer
will be required to enter into Federal Procurement Data System (FPDS)
the reason for buying items manufactured outside the United States.

Item VII--Exception to the Buy American Act for Commercial Information
Technology (FAR Case 2005-022)

This final rule converts the interim rule published at 71 FR 223,
January 3, 2006, to a final rule without change. This final rule amends
FAR 25.103 and Subpart 25.11 to implement Section 535(a) of Division F
of the Consolidated Appropriations Act, 2004, and similar sections in
subsequent appropriations acts. Section 535(a) authorizes an exception
to the Buy American Act for acquisitions of information technology that
are commercial items. The final rule applies to all offerors responding
to solicitations for commercial information technology where the Buy
American Act previously applied (generally, acquisitions between the
micro-purchase threshold and $193,000). The effect of this exemption is
that the following clauses are no longer applicable in acquisition of
commercial information technology:
FAR 52.225-1, Buy American Act-Supplies,
FAR 52.225-2, Buy American Act Certificate,
FAR 52.225-3, Buy American Act-Free Trade Agreements-
Israeli Trade Act,
FAR 52.225-4, Buy American Act-Free Trade Agreements-
Israeli Trade Act Certificate.
This is because the Buy American Act no longer applies. The Free
Trade Agreement non-discriminatory provisions are no longer necessary
since all products now are treated without the restrictions of the Buy
American Act.
The Trade Agreements provision and clause at FAR 52.225-5 and FAR
52.225-6 are still necessary when the Trade Agreements Act applies
(acquisitions above $193,000). The Trade Agreements provision and
clause already waive applicability of the Buy American Act for eligible
products and are needed to implement the restrictions on procurement of
noneligible end products. Section 535 and subsequent similar sections
waived only the Buy American Act, not all restrictions on the purchase
of foreign information technology.

Item VIII--Technical Amendments

Editorial changes are made at FAR 1, 3, 4, 5, 7, 13, 26, 33, 49,
50, 52, and 53 in order to update references.

Dated: September 19, 2006
Ralph De Stefano,
Director, Contract Policy Division.
[FR Doc. 06-8219 Filed 9-27-06; 8:45 am]
BILLING CODE 6820-EP-S

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