Federal Acquisition Regulation; FAR Case 2006-013, List of Approved Attorneys, Abstractors, and Title Companies, 40466-40467 [E9-19166]

Download as PDF 40466 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Rules and Regulations operations’’ revising the introductory text of paragraph (2) to read as follows: 25.702–1 Definitions. * * * * * Restricted business operations— * * * (2) Does not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate— * * * * * PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 3. Amend section 52.212–3 by— a. Revising the date of the provision; b. Revising in paragraph (a), in the definition ‘‘Restricted business operations’’ the second sentence of the introductory text; and ■ c. Removing from paragraph (m) ‘‘that it’’ and adding ‘‘that the offeror’’ in its place. ■ The revised text reads as follows: ■ ■ ■ 52.212–3 Offeror Representations and Certifications—Commercial Items. * * * * * OFFEROR REPRESENTATIONS AND CERTIFICATIONS—COMMERCIAL ITEMS (Aug 2009) * * * * * (a) Definitions. * * * Restricted business operations * * * Restricted business operations do not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate— * * * * * ■ 4. Amend section 52.225–20 by— ■ a. Revising the date of the provision; ■ b. Removing from paragraph (a) the definition ‘‘Person’’, and revising the second sentence in the introductory text of the definition ‘‘Restricted business operations’’; and ■ c. Removing from paragraph (b) ‘‘that it’’ and adding ‘‘that the offeror’’ in its place. ■ The revised text reads as follows: 52.225–20 Prohibition on Conducting Restricted Business Operations in Sudan— Certification. srobinson on DSKHWCL6B1PROD with RULES5 * * * * * PROHIBITION ON CONDUCTING RESTRICTED BUSINESS OPERATIONS IN SUDAN—CERTIFICATION (Aug 2009) (a) Definitions. * * * Restricted business operations * * * Restricted business operations do not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability VerDate Nov<24>2008 21:07 Aug 10, 2009 Jkt 217001 and Divestment Act of 2007) conducting the business can demonstrate— * * * * * [FR Doc. E9–19165 Filed 8–10–09; 8:45 am] BILLING CODE 6820–EP–S DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 28 and 52 [FAC 2005–36; FAR Case 2006–013; Item V; Docket 2006–0033; Sequence 1] RIN 9000–AK71 Federal Acquisition Regulation; FAR Case 2006–013, List of Approved Attorneys, Abstractors, and Title Companies 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 update the procedures for the acceptance of a bond with a security interest in real property. DATES: Effective Date: September 10, 2009. FOR FURTHER INFORMATION CONTACT: For clarification of content, contact Mr. Edward N. Chambers, Procurement Analyst, at (202) 501–3221. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501– 4755. Please cite FAC 2005–36, FAR case 2006–013. SUPPLEMENTARY INFORMATION: A. Background FAR Subpart 28.2 requires agencies to obtain adequate security for bonds when bonds are used with a contract. A corporate or individual surety is an acceptable form of security for a bond. FAR Subpart 28.2 provides that when an individual surety secures a bond with an interest in real estate, the surety must provide evidence of title (i.e., ownership) in the form of a certificate of title prepared by a qualified title attorney or abstractor, or a title insurance policy issued by title insurance company that has been approved by the Department of Justice PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 (DOJ). Since DOJ no longer maintains a list of approved title insurance companies, agency contracting officers must now take other steps to ensure the adequacy of the title evidence or ensure the surety obtains a title insurance policy for the full amount of the Government’s lien interest from a qualified title insurance company. This FAR rule revises the types of acceptable title evidence by individual sureties to include mortgagee title insurance or other evidence of title consistent with Section 2 of the DOJ Title Standards 2001, maintained on a DOJ website. FAR clause 52.228–11, Pledges of Assets, is also updated with this new reference. The rule also provides that contracting officers should request the assistance of agency legal counsel in determining if title evidence from individual sureties is consistent with the Justice Department Standards. PUBLIC COMMENTS DoD, GSA, and NASA published a proposed rule in the Federal Register at 72 FR 12584 on March 16, 2007. The Councils received a single comment on the proposed rule. The Councils have partially adopted this comment and revised the final rule accordingly. Comment: For those cases where real property is pledged to secure a bond, the proposed rule provided that ‘‘depending on the value of the property, contracting officers should consider requesting assistance from agency designated legal counsel to determine if the evidence of title is adequate.’’ The commenter believes this legal consultation should be mandatory. Response: Partially adopted. The final rule drops the qualifier ‘‘depending on the value of the property’’ on seeking legal counsel when real property is pledged to secure a bond. However, the term ‘‘should’’ has been retained to provide contracting officers with the discretion to use their business judgment. In considering the public comment, the Government revisited the proposed rule in total. In consultation with the Department of Justice, it was decided that when real property is pledged to secure a bond, instead of only allowing evidence of title that is consistent with DOJ standards as set forth in the proposed rule, that sureties could provide a mortgagee title insurance policy in an insurance amount equal to the amount of the lien. The Department of Justice observed that mortgagee title insurance is the most common form of title evidence in the commercial marketplace. E:\FR\FM\11AUR5.SGM 11AUR5 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Rules and Regulations 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 incidence of the use of bonds secured by interest in real property is very low. 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. Chapter 35, et seq. List of Subjects in 48 CFR Parts 28 and 52 Government procurement. Dated: August 4, 2009. Al Matera, Director, Office of Acquisition Policy. Therefore, DoD, GSA, and NASA amend 48 CFR parts 28 and 52 as set forth below: ■ 1. The authority citation for 48 CFR parts 28 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). 2. Amend section 28.203–3 by revising paragraph (a)(1) and removing from paragraph (d) ‘‘shall be’’ and adding ‘‘shall be signed by all owners of the property and’’ in its place. ■ The revised text reads as follows. srobinson on DSKHWCL6B1PROD with RULES5 Acceptance of real property. (a) * * * (1) A mortgagee title insurance policy, in an insurance amount equal to the amount of the lien, or other evidence of title that is consistent with the requirements of Section 2 of the United States Department of Justice Title Standards at https://www.usdoj.gov/ enrd/2001lTitlelStandards.html. This title evidence must show fee simple title vested in the surety along with any concurrent owners; whether any real estate taxes are due and payable; and any recorded encumbrances against the 21:07 Aug 10, 2009 Jkt 217001 3. Amend section 52.228–11 by— a. Revising the date of the clause; b. Removing from paragraph (b)(1) ‘‘and/or;’’ and adding ‘‘; and/or’’ in its place; and ■ c. Revising paragraph (b)(2)(i). ■ The revised text reads as follows: ■ ■ ■ 52.228–11 Pledges of Assets. * * * * * PLEDGES OF ASSETS (Sept 2009) * * * * * (b) * * * (2) * * * (i) A mortgagee title insurance policy, in an insurance amount equal to the amount of the lien, or other evidence of title that is consistent with the requirements of Section 2 of the United States Department of Justice Title Standards at https://www.usdoj.gov/ enrd/2001lTitlelStandards.html. This title evidence must show fee simple title vested in the surety along with any concurrent owners; whether any real estate taxes are due and payable; and any recorded encumbrances against the property, including the lien filed in favor of the Government as required by FAR 28.203–3(d); * * * * * BILLING CODE 6820–EP–S ■ VerDate Nov<24>2008 PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES [FR Doc. E9–19166 Filed 8–10–09; 8:45 am] PART 28—BONDS AND INSURANCE 28.203–3 property, including the lien filed in favor of the Government under paragraph (d) of this subsection. Agency contracting officers should request the assistance of their designated agency legal counsel in determining if the title evidence is consistent with the Department of Justice standards; * * * * * DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 30 and 52 [FAC 2005–36; FAR Case 2007–002; Item VI; Docket 2008–0001, Sequence 22] RIN 9000–AL09 Federal Acquisition Regulation; FAR Case 2007–002, Cost Accounting Standards (CAS) Administration and Associated Federal Acquisition Regulation Clauses AGENCIES: Department of Defense (DoD), General Services Administration (GSA), PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 40467 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 revise the contract clauses related to the administration of the Cost Accounting Standards (CAS) to maintain consistency between the FAR and CAS. DATES: Effective Date: August 11, 2009. FOR FURTHER INFORMATION CONTACT: For clarification of content, contact Mr. Edward N. Chambers, Procurement Analyst, at (202) 501–3221. For information pertaining to status or publication schedules, contact the FAR Secretariat at (202) 501–4755. Please cite FAR Case 2007–002. SUPPLEMENTARY INFORMATION: A. Background The CAS Board published a final rule in the Federal Register at 72 FR 32809 on June 14, 2007, revising the contract clauses for CAS administration. The final rule effected the following changes: • Amended the CAS applicability threshold to be the same as the threshold for compliance with the Truth in Negotiations Act (TINA) as required by section 822 of the 2006 National Defense Authorization Act (Pub. L. 109– 163). The TINA threshold is currently $650,000. • Changed the effective dates of 48 CFR 9903.201–3 and 48 CFR 9903.201– 4(a), (c), and (e) from April 2000 and June 2000, respectively, to June 2007. The CAS Board published a final rule in the Federal Register at 65 FR 37470 on June 14, 2000, revising the contract clauses for CAS administration. The final rule specified that the interest rate for overpayments by the Government under 48 CFR 9903.201–4(a), (c), and (e) shall be computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)). In order to maintain consistency between CAS and FAR, the Councils issued an interim rule revising 30.201– 4 and 50.230–1 through 50.230–5. This final rule adopts, without change, the interim rule published in the Federal Register at 73 FR 54011 on September 17, 2008. No public comments were received in response to the interim rule. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive E:\FR\FM\11AUR5.SGM 11AUR5

Agencies

[Federal Register Volume 74, Number 153 (Tuesday, August 11, 2009)]
[Rules and Regulations]
[Pages 40466-40467]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-19166]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 28 and 52

[FAC 2005-36; FAR Case 2006-013; Item V; Docket 2006-0033; Sequence 1]
RIN 9000-AK71


Federal Acquisition Regulation; FAR Case 2006-013, List of 
Approved Attorneys, Abstractors, and Title Companies

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 update the 
procedures for the acceptance of a bond with a security interest in 
real property.

DATES: Effective Date: September 10, 2009.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Edward N. Chambers, Procurement Analyst, at (202) 501-3221. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-36, FAR 
case 2006-013.

SUPPLEMENTARY INFORMATION:

A. Background

    FAR Subpart 28.2 requires agencies to obtain adequate security for 
bonds when bonds are used with a contract. A corporate or individual 
surety is an acceptable form of security for a bond. FAR Subpart 28.2 
provides that when an individual surety secures a bond with an interest 
in real estate, the surety must provide evidence of title (i.e., 
ownership) in the form of a certificate of title prepared by a 
qualified title attorney or abstractor, or a title insurance policy 
issued by title insurance company that has been approved by the 
Department of Justice (DOJ). Since DOJ no longer maintains a list of 
approved title insurance companies, agency contracting officers must 
now take other steps to ensure the adequacy of the title evidence or 
ensure the surety obtains a title insurance policy for the full amount 
of the Government's lien interest from a qualified title insurance 
company.
    This FAR rule revises the types of acceptable title evidence by 
individual sureties to include mortgagee title insurance or other 
evidence of title consistent with Section 2 of the DOJ Title Standards 
2001, maintained on a DOJ website. FAR clause 52.228-11, Pledges of 
Assets, is also updated with this new reference.
    The rule also provides that contracting officers should request the 
assistance of agency legal counsel in determining if title evidence 
from individual sureties is consistent with the Justice Department 
Standards.

PUBLIC COMMENTS

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 72 FR 12584 on March 16, 2007. The Councils received a 
single comment on the proposed rule. The Councils have partially 
adopted this comment and revised the final rule accordingly.
    Comment: For those cases where real property is pledged to secure a 
bond, the proposed rule provided that ``depending on the value of the 
property, contracting officers should consider requesting assistance 
from agency designated legal counsel to determine if the evidence of 
title is adequate.'' The commenter believes this legal consultation 
should be mandatory.
    Response: Partially adopted. The final rule drops the qualifier 
``depending on the value of the property'' on seeking legal counsel 
when real property is pledged to secure a bond. However, the term 
``should'' has been retained to provide contracting officers with the 
discretion to use their business judgment.
    In considering the public comment, the Government revisited the 
proposed rule in total. In consultation with the Department of Justice, 
it was decided that when real property is pledged to secure a bond, 
instead of only allowing evidence of title that is consistent with DOJ 
standards as set forth in the proposed rule, that sureties could 
provide a mortgagee title insurance policy in an insurance amount equal 
to the amount of the lien. The Department of Justice observed that 
mortgagee title insurance is the most common form of title evidence in 
the commercial marketplace.

[[Page 40467]]

    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 incidence of the 
use of bonds secured by interest in real property is very low.

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. 
Chapter 35, et seq.

 List of Subjects in 48 CFR Parts 28 and 52

    Government procurement.

    Dated: August 4, 2009.
Al Matera,
Director, Office of Acquisition Policy.

0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 28 and 52 as set forth 
below:

0
1. The authority citation for 48 CFR parts 28 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 28--BONDS AND INSURANCE

0
2. Amend section 28.203-3 by revising paragraph (a)(1) and removing 
from paragraph (d) ``shall be'' and adding ``shall be signed by all 
owners of the property and'' in its place.
0
The revised text reads as follows.


28.203-3  Acceptance of real property.

    (a) * * *
    (1) A mortgagee title insurance policy, in an insurance amount 
equal to the amount of the lien, or other evidence of title that is 
consistent with the requirements of Section 2 of the United States 
Department of Justice Title Standards at https://www.usdoj.gov/enrd/2001_Title_Standards.html. This title evidence must show fee simple 
title vested in the surety along with any concurrent owners; whether 
any real estate taxes are due and payable; and any recorded 
encumbrances against the property, including the lien filed in favor of 
the Government under paragraph (d) of this subsection. Agency 
contracting officers should request the assistance of their designated 
agency legal counsel in determining if the title evidence is consistent 
with the Department of Justice standards;
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Amend section 52.228-11 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(1) ``and/or;'' and adding ``; and/or'' 
in its place; and
0
c. Revising paragraph (b)(2)(i).
0
The revised text reads as follows:


52.228-11  Pledges of Assets.

* * * * *
    PLEDGES OF ASSETS (Sept 2009)
* * * * *
    (b) * * *
    (2) * * *
    (i) A mortgagee title insurance policy, in an insurance amount 
equal to the amount of the lien, or other evidence of title that is 
consistent with the requirements of Section 2 of the United States 
Department of Justice Title Standards at https://www.usdoj.gov/enrd/2001_Title_Standards.html. This title evidence must show fee simple 
title vested in the surety along with any concurrent owners; whether 
any real estate taxes are due and payable; and any recorded 
encumbrances against the property, including the lien filed in favor of 
the Government as required by FAR 28.203-3(d);
* * * * *
[FR Doc. E9-19166 Filed 8-10-09; 8:45 am]
BILLING CODE 6820-EP-S
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