Federal Acquisition Regulation; Federal Acquisition Circular 2005-45; Introduction, 53128-53129 [2010-21024]
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53128
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
ACTION:
Summary presentation of rules.
This document summarizes
the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2005–45. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC. The FAC, including the SECG, is
available via the Internet at https://
www.regulations.gov.
SUMMARY:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2010–0076, Sequence 7]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–45;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
AGENCIES:
For effective dates see separate
documents, which follow.
DATES:
The
analyst whose name appears in the table
below in relation to each FAR case.
Please cite FAC 2005–45 and the
specific FAR case numbers. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat at (202) 501–
4755.
FOR FURTHER INFORMATION CONTACT:
LIST OF RULES IN FAC 2005–45
Item
Subject
I ....................
II ...................
III ..................
Inflation Adjustment of Acquisition—Related Thresholds ..............................................................
Definition of Cost or Pricing Data ...................................................................................................
American Recovery and Reinvestment Act of 2009 (the Recovery Act)—Buy American Requirements for Construction Materials.
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 number and
subject set forth in the documents
following these item summaries.
FAC 2005–45 amends the FAR as
specified below:
jlentini on DSKJ8SOYB1PROD with RULES3
Item I—Inflation Adjustment of
Acquisition—Related Thresholds (FAR
Case 2008–024)
This final rule amends the FAR to
implement section 807 of the Ronald W.
Reagan National Defense Authorization
Act for Fiscal Year 2005. Section 807
requires an adjustment every 5 years of
acquisition-related thresholds for
inflation using the Consumer Price
Index for all urban consumers, except
for Davis-Bacon Act, Service Contract
Act, and trade agreements thresholds.
The Councils have also used the same
methodology to adjust nonstatutory FAR
acquisition-related thresholds in 2010.
This is the second review of FAR
acquisition-related thresholds. The
Councils published a proposed rule in
the Federal Register at 75 FR 5716,
February 4, 2010.
The effect of the final rule on heavilyused thresholds is the same as stated in
the preamble to the proposed rule:
• The micro-purchase base threshold
of $3,000 (FAR 2.101) is not changed.
• The simplified acquisition
threshold (FAR 2.101) is raised from
$100,000 to $150,000.
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17:53 Aug 27, 2010
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FAR case
• The FedBizOpps preaward and
post-award notices (Part 5) remain at
$25,000 because of trade agreements.
• Commercial items test program
ceiling (FAR 13.500) is raised from
$5,500,000 to $6,500,000.
• The cost or pricing data threshold
(FAR 15.403–4) is raised from $650,000
to $700,000.
• The prime contractor
subcontracting plan (FAR 19.702) floor
is raised from $550,000 to $650,000, and
the construction threshold of $1,000,000
increases to $1,500,000.
Item II—Definition of Cost or Pricing
Data (FAR Case 2005–036)
This final rule amends the FAR by
redefining ‘‘cost or pricing data,’’ adding
a definition of ‘‘certified cost or pricing
data,’’ and changing the term
‘‘information other than cost or pricing
data,’’ to ‘‘data other than certified cost
or pricing data.’’ The rule clarifies the
existing authority for contracting
officers to require certified cost or
pricing data or data other than certified
cost or pricing data, and the existing
requirements for submission of the
various types of pricing data. The rule
is required to eliminate confusion and
misunderstanding, especially regarding
the authority of the contracting officer to
request data other than certified cost or
pricing data when there is no other
means to determine that proposed
prices are fair and reasonable. Most
significantly, the rule clarifies that data
other than certified cost or pricing data
may include the identical types of data
as certified cost or pricing data but
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2008–024
2005–036
2009–008
Analyst
Jackson.
Chambers.
Davis.
without the certification. Because the
rule clarifies existing requirements, it
will have only minimal impact on the
Government, offerors, and automated
systems.
Item III—American Recovery and
Reinvestment Act of 2009 (the Recovery
Act)—Buy American Requirements for
Construction Materials (FAR Case
2009–008)
This final rule converts the interim
rule published in the Federal Register at
74 FR 14623, March 31, 2009, to a final
rule with changes. This final rule
implements section 1605 of Division A
of the American Recovery and
Reinvestment Act (Recovery Act) of
2009. It prohibits the use of funds
appropriated for or otherwise made
available by the Recovery Act for any
project for the construction, alteration,
maintenance, or repair of a public
building or public work unless all of the
iron, steel, and manufactured goods
used in the project are produced in the
United States. Section 1605 mandates
application of the Recovery Act Buy
American requirement in a manner
consistent with U.S. obligations under
international agreements. Least
developed countries continue to be
treated as designated countries per
congressional direction. Section 1605
also provides for waivers under certain
limited circumstances.
E:\FR\FM\30AUR3.SGM
30AUR3
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations
Dated: August 18, 2010.
Edward Loeb,
Director, Acquisition Policy Division.
Amy G. Williams,
Acting Deputy Director, Defense Procurement
and Acquisitions Policy (Defense Acquisition
Regulations System).
Joseph A. Neurauter,
Deputy Associate Administrator and Senior
Procurement Executive, Office of Acquisition
Policy, U.S. General Services Administration.
Sheryl J. Goddard,
Acting Assistant Administrator for
Procurement, National Aeronautics and
Space Administration.
[FR Doc. 2010–21024 Filed 8–27–10; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 2, 3, 5, 6, 7, 8, 12, 13,
15, 16, 17, 19, 22, 23, 28, 32, 36, 42, 50,
and 52
[FAC 2005–45; FAR Case 2008–024; Item
I; Docket 2010–0079, Sequence 1]
RIN 9000–AL51
Federal Acquisition Regulation;
Inflation Adjustment of Acquisition—
Related Thresholds
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCY:
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 implement section
807 of the Ronald W. Reagan National
Defense Authorization Act for Fiscal
Year 2005. Section 807 requires an
adjustment every 5 years of acquisitionrelated thresholds for inflation using the
Consumer Price Index (CPI) for all urban
consumers, except for Davis-Bacon Act,
Service Contract Act, and trade
agreements thresholds. The Councils
have also used the same methodology to
adjust nonstatutory FAR acquisitionrelated thresholds in 2010.
DATES: Effective Date: October 1, 2010.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Mr.
Michael Jackson, Procurement Analyst,
at (202) 208–4949. For information
pertaining to status or publication
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SUMMARY:
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53129
schedules, contact the Regulatory
Secretariat at (202) 501–4755. Please
cite FAC 2005–45, FAR case 2008–024.
SUPPLEMENTARY INFORMATION:
subject to the acquisition-related
threshold will continue to grow,
because more and more contracts will
be below the stated thresholds.
A. Background
The first review of acquisition-related
thresholds to implement section 807 of
the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005
(Pub. L. 108–375) was conducted under
FAR Case 2004–033 during FY 2005.
The final rule for the first review was
published in the Federal Register at 71
FR 57363, September 28, 2006. This is
the second review of FAR acquisitionrelated thresholds. DoD, GSA, and
NASA published a proposed rule in the
Federal Register at 75 FR 5716,
February 4, 2010. The preamble to the
proposed rule contained a detailed
explanation of—
• What an acquisition-related
threshold is;
• What acquisition-related thresholds
are not subject to escalation adjustment
under this case;
• How the Councils analyze statutory
and nonstatutory acquisition-related
thresholds; and
• The effect of this rule on the most
heavily-used thresholds.
Eight respondents submitted
comments on the proposed rule, which
are addressed in the following section.
The final rule has been coordinated
with the Department of Labor and the
Small Business Administration in areas
of the regulation for which they are the
lead agency. Any changes to Cost
Accounting Standards thresholds will
be dealt with under a separate case.
b. Prime Contractor Subcontracting Plan
Thresholds (FAR 19.702)
B. Analysis of Public Comments
1. Statutory Thresholds
a. All Statutory Thresholds
Comment: One respondent, while
recognizing that this is a statutory
requirement, believed that no inflation
adjustments should be made at this
time. The respondent views the
threshold increases as a way to reduce
Government oversight of Federal
contracts and considers such reduction
unwise, because of various
congressional oversight hearings and
reports of Inspectors General and the
Government Accountability Office that
have revealed ‘‘widespread systemic
gaps in Government contracting
oversight.’’
Response: As noted, this is a statutory
requirement. Further, the intent is not to
reduce Government oversight but to
maintain the status quo, by adjusting
thresholds to keep pace with inflation.
If thresholds are not adjusted for
inflation, the number of contracts
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Comment: One respondent stated that
they were particularly pleased with the
proposal to increase the threshold
values in FAR part 19 relative to the
need to submit an acceptable
subcontracting plan. They consider the
current threshold to be administratively
burdensome. The respondent further
recommended that the Councils should
pursue legislative action to raise the
threshold to a minimum of one million
dollars.
Another respondent recommended
increasing the prime contractor
subcontracting plan threshold to
$700,000, to be the same as the
increased cost or pricing data threshold.
Response: The final rule raises the
subcontracting threshold to $650,000, as
required by the law that this case is
implementing. Pursuing legislative
changes is outside the scope of this case.
c. Miller Act (FAR 28.102 and 52.228–
15)
Comment: Three respondents
addressed the proposed increase in the
Miller Act threshold. These respondents
emphasized the importance of
performance and payment bonds as a
protection for subcontractors and
taxpayers.
• One respondent stated that the law
is ‘‘an unfortunate and contradictory
statutory requirement.’’ The respondent
considered that the threshold increase
will undermine the original protective
purposes of the bonding requirements
set forth in the Miller Act, because more
Federal construction projects will be
undertaken without the benefit of
payment bond protection. In particular,
this respondent noted that
subcontractors are frequently small
businesses, for whom lack of a payment
bond may be disastrous. The respondent
requested the Councils explain
accurately to Congress the significant
negative impact that such increases will
have.
• Another respondent stated that the
threshold increase is bad public policy,
and the Councils should reconsider
whether such thresholds are
‘‘acquisition-related thresholds’’ as
contemplated by the Act.
• The third respondent urged the
Councils not to increase the Miller Act
surety bond threshold, but did not
suggest rationale for noncompliance
with the statutory requirement.
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]]>Agencies
[Federal Register Volume 75, Number 167 (Monday, August 30, 2010)]
[Rules and Regulations]
[Pages 53128-53129]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21024]
[[Page 53127]]
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Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
-----------------------------------------------------------------------
48 CFR Chapter 1
Federal Acquisition Regulation; Final Rules
Federal Register / Vol. 75 , No. 167 / Monday, August 30, 2010 /
Rules and Regulations
[[Page 53128]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2010-0076, Sequence 7]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-45; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of rules.
-----------------------------------------------------------------------
SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council (Councils) in this Federal
Acquisition Circular (FAC) 2005-45. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC. The FAC, including
the SECG, is available via the Internet at https://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 in relation to each FAR case. Please cite FAC 2005-45 and
the specific FAR case numbers. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat at (202) 501-
4755.
List of Rules in FAC 2005-45
------------------------------------------------------------------------
Item Subject FAR case Analyst
------------------------------------------------------------------------
I................. Inflation 2008-024 Jackson.
Adjustment of
Acquisition--Rel
ated Thresholds.
II................ Definition of 2005-036 Chambers.
Cost or Pricing
Data.
III............... American Recovery 2009-008 Davis.
and Reinvestment
Act of 2009 (the
Recovery Act)--
Buy American
Requirements for
Construction
Materials.
------------------------------------------------------------------------
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 number and subject set forth in the documents
following these item summaries.
FAC 2005-45 amends the FAR as specified below:
Item I--Inflation Adjustment of Acquisition--Related Thresholds (FAR
Case 2008-024)
This final rule amends the FAR to implement section 807 of the
Ronald W. Reagan National Defense Authorization Act for Fiscal Year
2005. Section 807 requires an adjustment every 5 years of acquisition-
related thresholds for inflation using the Consumer Price Index for all
urban consumers, except for Davis-Bacon Act, Service Contract Act, and
trade agreements thresholds. The Councils have also used the same
methodology to adjust nonstatutory FAR acquisition-related thresholds
in 2010.
This is the second review of FAR acquisition-related thresholds.
The Councils published a proposed rule in the Federal Register at 75 FR
5716, February 4, 2010.
The effect of the final rule on heavily-used thresholds is the same
as stated in the preamble to the proposed rule:
The micro-purchase base threshold of $3,000 (FAR 2.101) is
not changed.
The simplified acquisition threshold (FAR 2.101) is raised
from $100,000 to $150,000.
The FedBizOpps preaward and post-award notices (Part 5)
remain at $25,000 because of trade agreements.
Commercial items test program ceiling (FAR 13.500) is
raised from $5,500,000 to $6,500,000.
The cost or pricing data threshold (FAR 15.403-4) is
raised from $650,000 to $700,000.
The prime contractor subcontracting plan (FAR 19.702)
floor is raised from $550,000 to $650,000, and the construction
threshold of $1,000,000 increases to $1,500,000.
Item II--Definition of Cost or Pricing Data (FAR Case 2005-036)
This final rule amends the FAR by redefining ``cost or pricing
data,'' adding a definition of ``certified cost or pricing data,'' and
changing the term ``information other than cost or pricing data,'' to
``data other than certified cost or pricing data.'' The rule clarifies
the existing authority for contracting officers to require certified
cost or pricing data or data other than certified cost or pricing data,
and the existing requirements for submission of the various types of
pricing data. The rule is required to eliminate confusion and
misunderstanding, especially regarding the authority of the contracting
officer to request data other than certified cost or pricing data when
there is no other means to determine that proposed prices are fair and
reasonable. Most significantly, the rule clarifies that data other than
certified cost or pricing data may include the identical types of data
as certified cost or pricing data but without the certification.
Because the rule clarifies existing requirements, it will have only
minimal impact on the Government, offerors, and automated systems.
Item III--American Recovery and Reinvestment Act of 2009 (the Recovery
Act)--Buy American Requirements for Construction Materials (FAR Case
2009-008)
This final rule converts the interim rule published in the Federal
Register at 74 FR 14623, March 31, 2009, to a final rule with changes.
This final rule implements section 1605 of Division A of the American
Recovery and Reinvestment Act (Recovery Act) of 2009. It prohibits the
use of funds appropriated for or otherwise made available by the
Recovery Act for any project for the construction, alteration,
maintenance, or repair of a public building or public work unless all
of the iron, steel, and manufactured goods used in the project are
produced in the United States. Section 1605 mandates application of the
Recovery Act Buy American requirement in a manner consistent with U.S.
obligations under international agreements. Least developed countries
continue to be treated as designated countries per congressional
direction. Section 1605 also provides for waivers under certain limited
circumstances.
[[Page 53129]]
Dated: August 18, 2010.
Edward Loeb,
Director, Acquisition Policy Division.
Amy G. Williams,
Acting Deputy Director, Defense Procurement and Acquisitions Policy
(Defense Acquisition Regulations System).
Joseph A. Neurauter,
Deputy Associate Administrator and Senior Procurement Executive, Office
of Acquisition Policy, U.S. General Services Administration.
Sheryl J. Goddard,
Acting Assistant Administrator for Procurement, National Aeronautics
and Space Administration.
[FR Doc. 2010-21024 Filed 8-27-10; 8:45 am]
BILLING CODE 6820-EP-P
