Federal Acquisition Regulation; Inflation Adjustment of Acquisition-Related Thresholds, 53129-53135 [2010-21025]
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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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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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Response: The Councils do not agree
that adjustment of thresholds for
inflation will have the negative impact
perceived by these respondents. As
already stated, inflation adjustment of
thresholds is a means of maintaining the
status quo. It will not decrease the
number of contracts that are subject to
the Miller Act, but will prevent the
relative number of contracts subject to
the Miller Act from increasing. The
rationale that there should be some level
below which the Miller Act is not
applicable is maintained by adjustment
of the threshold for inflation. The law
(40 U.S.C. 3132) provides alternate
payment protection for contracts that
exceed $30,000, so that contracts below
the Miller Act threshold are not entirely
without payment protection.
As to whether the Miller Act
threshold is an acquisition-related
threshold, this threshold clearly meets
the definition that was set forth in the
law, as consistently interpreted by the
Councils since the enactment of the law
in 2004. The law defines an acquisitionrelated threshold as a threshold that is
set forth in law (the Miller Act), as a
factor in defining the scope of the
applicability of a policy, procedure,
requirement, or restriction provided in
that law to the procurement of property
or services by an executive agency. As
this definition is applied to the Miller
Act threshold, the Miller Act requires
payment and performance bonds when
agencies acquire construction that is
valued at more than the Miller Act
threshold (raised by this rule from
$100,000 to $150,000).
2. Nonstatutory Thresholds
Comment: One respondent was
particularly concerned about the
proposed increase in nonstatutory
thresholds. In particular, this
respondent cited three examples of
threshold increases which the
respondent considered questionable:
• Approval levels for limited source
justifications at FAR 8.405–6. The
respondent stated that increasing such
approval levels appears inconsistent
with the President’s March 4, 2009,
Memorandum.
• The threshold at FAR 22.1103 for
use of the solicitation provision FAR
52.222–46, Evaluation of Compensation
for Professional Employees. The
respondent stated that when contractors
pay very low wages and benefits, work
quality can suffer and the Government
may bear hidden costs because of the
need to provide income assistance to
low income families.
• The threshold for subcontracting
plans governed by FAR 19.702. The
respondent stated that the increase of
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this threshold would have a detrimental
impact, especially on small businesses.
Response: Although there is no
statutory requirement to increase the
nonstatutory thresholds, the same
rationale applies as to why escalation to
adjust for inflation is a good idea. If
there was any rationale for the level at
which the thresholds were originally
put in place by policy, the thresholds
will become further and further out of
line with the original policy decision if
they are left unchanged. In addition to
this general rationale, the Councils add
the following two particular responses:
• In particular, the approval levels for
limited source justifications at FAR
8.405–6 were selected to be consistent
with the statutory thresholds at FAR
6.304(a). Therefore, it is reasonable to
escalate these thresholds the same as the
thresholds at FAR 6.304(a) to maintain
the consistency.
• Although the respondent cited the
threshold for subcontracting plans
governed by FAR 19.702 as an example
of a nonstatutory threshold, this
threshold is actually a statutory
threshold (15 U.S.C. 637(d)(4)), which
must therefore be escalated.
3. Increase Penalties
Comment: One respondent
recommended that the Councils should
also increase the maximum dollar
amount of penalties when increasing the
acquisition-related threshold contained
in the same statute. According to the
respondent, by not increasing the
penalty for failure to disclose
unallowable activities, the Councils are
providing contractors a greater incentive
to violate the law.
Response: The penalties are set by
statute. The law that the FAR Council is
implementing did not authorize the
FAR Council to increase penalties, only
the acquisition-related thresholds.
4. Implementation
Two Government employees provided
comments relating to the
implementation of the rule.
a. Provide a Matrix
Comment: One respondent requested
a matrix of the changes in order to save
everyone from having to do the analysis
and matrix development. (Although the
comment was submitted in response to
the FAR rule, the respondent requested
that the Councils provide a Defense
Federal Acquisition Regulation
Supplement (DFARS) matrix, so this
may have been intended as a comment
on the DFARS inflation adjustment
rule.)
Response: In 2006, the URL of a
matrix was provided at FAR 1.109(d).
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Likewise, the current matrix is again
available and the Councils have
provided a revised Web address to
access it.
b. Effective Date
One respondent expressed concern
over the large number of systems
changes that this rule will require and
the difficulty of implementation in a
short period of time. The respondent
recommended providing ample time
between the release of firm
requirements and the required
implementation.
Response: Although the Councils
hoped to publish this final rule in time
to allow 60 days for implementation,
they were unable to meet that goal. The
effective date of October 1, 2010, allows
only a little more than the standard 30
days for implementations, but this
effective date is consistent with the
statutory requirements and the desired
procedures for implementation of
changes that impact the Federal
Procurement Data System at the
beginning of the fiscal year.
C. Changes Between the Proposed Rule
and the Final Rule
Although there were no changes
between the proposed rule and the final
rule as the result of public comments,
some of the thresholds changed due to
lower inflation than was projected at the
time of publication of the proposed rule.
The proposed rule was based on a
projected consumer price index (CPI) of
222 in April 2010. The final rule is
based on an actual CPI of 217.631
through the end of March 2010. The end
of March, 6 months before the effective
date of the rule, is used as the cutoff in
order to allow time for approval and
publication of the final rule.
Because the actual CPI is more than
4 points lower than the projected CPI,
proposed thresholds of at least $13
million are generally proportionally
lower. Thresholds of less than $13
million were generally unchanged, due
to rounding.
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.
• The FedBizOpps preaward and
post-award notices (FAR 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.
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• 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.
This final rule is a significant
regulatory action and, therefore, was
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.
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D. 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
adjustment of acquisition-related
thresholds for inflation maintains the
status quo. The Councils note that the
set-aside threshold of $100,000
increases to $150,000, which is not a
detriment to small business. Although
several respondents were concerned
about the impact of some of the
threshold changes on small businesses
(see comment and response at B.1.c. and
B.2.), the Councils reiterate that
adjusting a threshold in an amount
sufficient to keep pace with current
inflation is neutral in impact on small
businesses because it just maintains the
status quo.
E. Paperwork Reduction Act
The Paperwork Reduction Act does
apply; however, these changes to the
FAR do not impose additional
information collection requirements to
the paperwork burden previously
approved under OMB Control Numbers:
• 9000–0006, Subcontracting Plans/
Subcontracting Report for Individual
Contract (SF 294)—FAR Sections
Affected: Subpart 19.7 and 52.219–9;
• 9000–0007, Summary Subcontract
Report—FAR Sections Affected: Subpart
19.7, 53.219, and SF 295;
• 9000–0013, Cost or Pricing Data
Exemption—FAR Sections Affected:
Subparts 15.4, 42.7, 52.214–28, 52.215–
12, 52.215–13, 52.215–20, and 52.215–
21;
• 9000–0018, Certification of
Independent Price Determination and
Parent Company and Identifying Data—
FAR Sections Affected: 3.103 and 3.302;
• 9000–0022, Duty-Free Entry—FAR
48 CFR 52.225–8—FAR Section
Affected: 52.225–8;
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• 9000–0026, Change Order
Accounting—FAR Sections Affected:
43.205(f) and 52.243–6;
• 9000–0027, Value Engineering
Requirements—FAR Sections Affected:
Subparts 48.1 and 48.2, 52.248–1,
52.248–2, and 52.248–3;
• 9000–0034, Examination of Records
5 CFR 1320.5(b) by Comptroller General
and Contract Audit—FAR Sections
Affected: 52.215–2, 52.212–5, and
52.214–26;
• 9000–0045, Bid, Performance, and
Payment Bonds—FAR Sections
Affected: Subparts 28.1 and 28.2,
52.228–1, 52.228–2, 52.228–13, 52.228–
15, and 52.228–16;
• 9000–0058, Schedules for
Construction Contracts—FAR Section
Affected: 52.236–15;
• 9000–0060, Accident Prevention 48
CFR 52.236–13, Plans and
Recordkeeping—FAR Section Affected:
52.236–13;
• 9000–0066, Professional Employee
Compensation Plan—FAR Sections
Affected: Subpart 22.11 and 52.222–46;
• 9000–0073, Advance Payments—
FAR Sections Affected: Subpart 32.4
and 52.232–12;
• 9000–0077, Quality Assurance
Requirements—FAR Sections Affected:
Subparts 46.1 through 46.3, 52.246–2
through 52.246–8, 52.246–10, 52.246–
12, and 52.246–15;
• 9000–0080, Integrity of Unit
Prices—FAR Sections Affected:
15.408(f) and 52.215–14;
• 9000–0091, Anti-Kickback
Procedures—FAR Sections Affected:
3.502, and 52.203–7;
• 9000–0094, Debarment and
Suspension, FAR Sections Affected: 9.1,
9.4, 52.209–5, and 52.212–3(h);
• 9000–0101, Drug-Free Workplace—
FAR Section Affected: 52.223–6(b)(5);
• 9000–0115, Notification of
Ownership Changes—FAR Sections
Affected: 15.408(k) and 52.215–19;
• 9000–0133, Defense Production Act
Amendments—FAR Sections Affected:
34.1 and 52.234–1;
• 9000–0134, Environmentally Sound
Products—FAR Sections Affected:
23.406 and 52.223–4;
• 9000–0135, Prospective
Subcontractor Requests for Bonds, FAR
28.106–4(b), 52.228–12;
• 1215–0072, OFCCP Recordkeeping
and Reporting Requirements—Supply
and Service; and
• 1215–0119, Requirements of a Bona
Fide Thrift or Savings Plan (29 CFR part
547) and Requirements of a Bona Fide
Profit-Sharing Plan or Trust (29 CFR
part 549).
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List of Subjects in 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
Government procurement.
Dated: August 18, 2010.
Edward Loeb,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA
amend 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 as set forth below:
■ 1. The authority citation for 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
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 1—FEDERAL ACQUISITION
REGULATIONS SYSTEM
1.109
[Amended]
2. Amend section 1.109 by removing
from paragraph (d) ‘‘https://
acquisition.gov/far/facsframe.html’’ and
adding ‘‘https://www.regulations.gov
(search FAR case 2008–024)’’ in its
place.
■
PART 2—DEFINITIONS OF WORDS
AND TERMS
2.101
[Amended]
3. Amend section 2.101 in paragraph
(b)(2) by—
■ a. Amending the definition ‘‘Major
system’’ by removing from paragraph (1)
‘‘$173.5 million’’ and adding ‘‘$189.5
million’’, and removing ‘‘$814.5 million’’
and adding ‘‘$890 million’’; and
removing from paragraph (2) ‘‘$1.8
million’’ and adding ‘‘$2 million’’ in its
place;
■ b. Amending the definition ‘‘Micropurchase threshold’’ by removing from
paragraph (3)(ii) ‘‘$25,000’’ and adding
‘‘$30,000’’ in its place; and
■ c. Amending the definition
‘‘Simplified acquisition threshold’’ by
removing from the introductory
paragraph ‘‘$100,000’’ and adding
‘‘$150,000’’ in its place; and removing
from paragraph (1) ‘‘$250,000’’ and
adding ‘‘$300,000’’ in its place.
■
PART 3—IMPROPER BUSINESS
PRACTICES AND PERSONAL
CONFLICTS OF INTEREST
3.502–2
[Amended]
4. Amend section 3.502–2 by
removing from the introductory text of
paragraph (i) ‘‘$100,000’’ and adding
‘‘$150,000’’ in its place.
■
3.804
[Amended]
5. Amend section 3.804 by removing
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
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Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations
[Amended]
[Amended]
7. Amend section 5.101 by removing
from the introductory text of paragraph
(a)(2) ‘‘$10,000’’ and adding ‘‘$15,000’’ in
its place.
■
5.205
[Amended]
8.405–6
[Amended]
9. Amend section 5.206 by—
a. Removing from paragraph (a)(1)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place; and
■ b. Removing from paragraph (a)(2)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place, and removing ‘‘$10,000’’ and
adding ‘‘$15,000’’ in its place.
■
■
5.303
[Amended]
10. Amend section 5.303 by removing
from the introductory text of paragraph
(a) ‘‘$3.5 million’’ and adding ‘‘$4
million’’ in its place.
■
PART 6—COMPETITION
REQUIREMENTS
6.304
[Amended]
11. Amend section 6.304 by—
a. Removing from paragraph (a)(1)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place;
■ b. Removing from paragraph (a)(2)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$11.5 million’’ and
adding ‘‘$12.5 million’’ in its place;
■ c. Removing from the introductory
text of paragraph (a)(3) ‘‘$11.5 million’’
and adding ‘‘$12.5 million’’ in its place,
removing ‘‘$57 million’’ and adding
‘‘$62.5 million’’ in its place, and
removing ‘‘$78.5 million’’ and adding
‘‘$85.5 million’’ in its place; and
■ d. Removing from paragraph (a)(4)
‘‘$57 million’’ and adding ‘‘$62.5
million’’ in its place, and removing
‘‘$78.5 million’’ and adding ‘‘$85.5
million’’ in its place.
■
■
PART 7—ACQUISITION PLANNING
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[Amended]
12. Amend section 7.104 by—
a. Removing from paragraph
(d)(2)(i)(A) ‘‘$7.5 million’’ and adding
‘‘$8 million’’ in its place;
■ b. Removing from paragraph
(d)(2)(i)(B) ‘‘$5.5 million’’ and adding
‘‘$6 million’’ in its place; and
■
■
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[Amended]
14. Amend section 8.405–6 by—
a. Removing from paragraph (h)(1)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place;
■ b. Removing from paragraph (h)(2)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$11.5 million’’ and
adding ‘‘$12.5 million’’ in its place;
■ c. Removing from the introductory
text of paragraph (h)(3) ‘‘$11.5 million’’
and adding ‘‘$12.5 million’’ in its place,
removing ‘‘$57 million’’ and adding
‘‘$62.5 million’’ in its place, and
removing ‘‘$78.5 million’’ and adding
‘‘$85.5 million’’ in its place; and
■ d. Removing from paragraph (h)(4)
‘‘$57 million’’ and adding ‘‘$62.5
million’’ in its place, and removing
‘‘$78.5 million’’ and adding ‘‘$85.5
million’’ in its place.
■
■
12.102
[Amended]
15. Amend section 12.102 by
removing from the introductory text of
paragraph (f)(2) ‘‘$16 million’’ and
adding ‘‘$17.5 million’’ in its place; and
removing from paragraph (g)(1)(ii) ‘‘$27
million’’ and adding ‘‘$29.5 million’’ in
its place.
■
12.203
[Amended]
16. Amend section 12.203 by
removing ‘‘$5.5 million’’ and adding
‘‘$6.5 million’’ in its place, and removing
‘‘$11 million’’ and adding ‘‘$12 million’’
in its place.
■
PART 13—SIMPLIFIED ACQUISITION
PROCEDURES
[Amended]
17. Amend section 13.000 by
removing ‘‘$5.5 million’’ and adding
‘‘$6.5 million’’ in its place, and removing
‘‘$11 million’’ and adding ‘‘$12 million’’
in its place.
■
13.003
■
[Amended]
18. Amend section 13.003 by—
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a. Removing from paragraph (b)(1)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place, and removing ‘‘$250,000’’ and
adding ‘‘$300,000’’ in its place;
■ b. Removing from paragraph (c)(1)(ii)
‘‘$5.5 million’’ and adding ‘‘$6.5 million’’
in its place, and removing ‘‘$11 million’’
and adding ‘‘$12 million’’ in its place;
and
■ c. Removing from paragraph (g)(2)
‘‘$5.5 million’’ and adding ‘‘$6.5
million’’, and removing ‘‘$11 million’’
and adding ‘‘$12 million’’ in its place.
■
13.005
[Amended]
19. Amend section 13.005 by
removing from paragraph (a)(5)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
13.201
[Amended]
20. Amend section 13.201 by
removing from paragraph (g)(1)(ii)
‘‘$25,000’’ and adding ‘‘$30,000’’ in its
place.
■
13.303–5
[Amended]
21. Amend section 13.303–5 by—
a. Removing from paragraph (b)(1)
‘‘$5.5 million’’ and adding ‘‘$6.5 million’’
in its place, and removing ‘‘$11 million’’
and adding ‘‘$12 million’’ in its place;
and
■ b. Removing from paragraph (b)(2)
‘‘$5.5 million’’ and adding ‘‘$6.5 million’’
in its place, and removing ‘‘$11 million’’
and adding ‘‘$12 million’’ in its place.
■
■
13.500
[Amended]
22. Amend section 13.500 by—
a. Removing from paragraph (a) ‘‘$5.5
million’’ and adding ‘‘$6.5 million’’ in its
place, and removing ‘‘$11 million’’ and
adding ‘‘$12 million’’ in its place; and
■ b. Removing from the introductory
text of paragraph (e) ‘‘$11 million’’ and
adding ‘‘$12 million’’ in its place.
■
■
PART 12—ACQUISITION OF
COMMERCIAL ITEMS
13.000
7.104
[Amended]
13. Amend section 7.107 by—
a. Removing from paragraph (b)(1)
‘‘$86 million’’ and adding ‘‘$94 million’’
in its place; and
■ b. Removing from paragraph (b)(2)
‘‘$8.6 million’’ and adding ‘‘$9.4 million’’
in its place, and removing ‘‘$86 million’’
and adding ‘‘$94 million’’ in its place.
PART 8—REQUIRED SOURCES OF
SUPPLIES AND SERVICES
8. Amend section 5.205 by removing
from paragraph (d)(2) ‘‘$10,000’’ and
adding ‘‘$15,000’’ in its place.
■
5.206
7.107
■
■
PART 5—PUBLICIZING CONTRACT
ACTIONS
5.101
c. Removing from paragraph
(d)(2)(i)(C) ‘‘$2 million’’ and adding
‘‘$2.5 million’’ in its place.
■
6. Amend section 3.808 by removing
from paragraphs (a) and (b) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place.
■
13.501
[Amended]
23. Amend section 13.501 by—
a. Removing from paragraph (a)(2)(i)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place, and removing ‘‘$550,000’’ and
adding ‘‘$650,000’’ in its place;
■ b. Removing from paragraph (a)(2)(ii)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$11.5 million’’ and
adding ‘‘$12.5 million’’ in its place;
■ c. Removing from paragraph (a)(2)(iii)
’’$11.5 million’’ and adding ‘‘$12.5
million’’ in its place, removing ‘‘$57
million’’ and adding ‘‘$62.5 million’’ in
its place, and removing ‘‘$78.5 million’’
and adding ‘‘$85.5 million’’ in its place;
and
■ d. Removing from paragraph (a)(2)(iv)
‘‘$57 million’’ and adding ‘‘$62.5
million’’ in its place, and removing
‘‘$78.5 million’’ and adding ‘‘$85.5
million’’ in its place.
■
■
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Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations
16.504
PART 15—CONTRACTING BY
NEGOTIATION
[Amended]
19.805–1
24. Amend section 15.304 by
removing from paragraph (c)(4)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and by removing ‘‘$1,000,000’’
and adding ‘‘$1.5 million’’ in its place.
34. Amend section 16.504 by
removing from the introductory texts of
paragraphs (c)(1)(ii)(D)(1) and
(c)(1)(ii)(D)(3) ‘‘$100 million’’ and
adding ‘‘$103 million’’ in its place; and
removing from the introductory text of
paragraph (c)(2)(i) ‘‘$11.5 million’’ and
adding ‘‘$12.5 million’’ in its place.
15.403–1
16.506
15.304
■
[Amended]
■
[Amended]
[Amended]
35. Amend section 16.506 by
removing from paragraphs (f) and (g)
‘‘$11.5 million’’ and adding ‘‘$12.5
million’’ in its place.
25. Amend section 15.403–1 by
removing from paragraph (c)(3)(iv) ‘‘$16
million’’ and adding ‘‘$17.5 million’’ in
its place.
■
15.403–4
PART 17—SPECIAL CONTRACTING
METHODS
■
[Amended]
26. Amend section 15.403–4 by
removing from the introductory texts of
paragraphs (a)(1) and (a)(1)(iii)
‘‘$650,000’’ and adding ‘‘$700,000’’ in its
place.
■
15.404–3
[Amended]
27. Amend section 15.404–3 by
removing from paragraph (c)(1)(i) ‘‘$11.5
million’’ and adding ‘‘$12.5 million’’ in
its place.
■
15.407–2
[Amended]
[Amended]
36. Amend section 17.108 by
removing from paragraph (a) ‘‘$11.5
million’’ and adding ‘‘$12.5 million’’ in
its place; and removing from paragraph
(b) ‘‘$114.5 million’’ and adding ‘‘$125
million’’ in its place.
■
PART 19—SMALL BUSINESS
PROGRAMS
19.502–2
28. Amend section 15.407–2 by
removing from paragraph (c)(1) and the
introductory text of paragraph (c)(2)
‘‘$11.5 million’’ and adding ‘‘$12.5
million’’ in its place.
■
15.408
17.108
[Amended]
29. Amend section 15.408 in Table
15–2, ‘‘II. Cost Elements’’ which follows
paragraph (n), by removing from
paragraph ‘‘A(2)’’ ‘‘$11.5 million’’ and
adding ‘‘$12.5 million’’ in its place.
■
[Amended]
37. Amend section 19.502–2 by—
a. Removing from paragraph (a)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place each time it appears (twice), and
removing ‘‘$250,000’’ and adding
‘‘$300,000’’ in its place; and
■ b. Removing from paragraph (b)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
■
19.508
[Amended]
PART 16—TYPES OF CONTRACTS
38. Amend section 19.508 by
removing from paragraph (e) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place.
16.206–2
19.702
[Amended]
30. Amend section 16.206–2 by
removing from the introductory
paragraph ‘‘$100,000’’ and adding
‘‘$150,000’’ in its place.
[Amended]
31. Amend section 16.206–3 by
removing from paragraph (a) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place.
■
16.207–3
19.704
[Amended]
32. Amend section 16.207–3 by
removing from paragraph (d) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place.
jlentini on DSKJ8SOYB1PROD with RULES3
■
16.503
[Amended]
33. Amend section 16.503 by
removing from paragraph (b)(2) ‘‘$100
million’’ and adding ‘‘$103 million’’ in
its place; and removing from paragraph
(d)(1) ‘‘$11.5 million’’ and adding ‘‘$12.5
million’’ in its place.
■
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[Amended]
39. Amend section 19.702 by—
a. Removing from paragraph (a)(1)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place; and
■ b. Removing from paragraph (a)(2)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place.
■
■
■
16.206–3
■
[Amended]
40. Amend section 19.704 by
removing from paragraph (a)(9)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place.
[Amended]
41. Amend section 19.708 by
removing from paragraph (b)(1)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place.
■
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[Amended]
42. Amend section 19.805–1 by
removing from paragraph (a)(2) ‘‘$5.5
million’’ and adding ‘‘$6.5 million’’ in its
place, and removing ‘‘$3.5 million’’ and
adding ‘‘$4 million’’ in its place.
■
19.1202–2
[Amended]
43. Amend section 19.1202–2 by
removing from paragraph (a) ‘‘$550,000’’
and adding ‘‘$650,000’’ in its place, and
removing ‘‘$1,000,000’’ and adding ‘‘$1.5
million’’ in its place.
■
19.1306
[Amended]
44. Amend section 19.1306 by
removing from paragraph (a)(2)(i) ‘‘$5.5
million’’ and adding ‘‘$6.5 million’’ in its
place; and removing from paragraph
(a)(2)(ii) ‘‘$3.5 million’’ and adding ‘‘$4
million’’ in its place.
■
19.1406
[Amended]
45. Amend section 19.1406 by
removing from paragraph (a)(2)(i) ‘‘$5.5
million’’ and adding ‘‘$6 million’’ in its
place; and removing from paragraph
(a)(2)(ii) ‘‘$3 million’’ and adding ‘‘$3.5
million’’ in its place.
■
PART 22—APPLICATION OF LABOR
LAWS TO GOVERNMENT
ACQUISITIONS
22.305
[Amended]
46. Amend section 22.305 by
removing from paragraph (a) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place.
■
22.602
[Amended]
47. Amend section 22.602 by
removing ‘‘$10,000’’ and adding
‘‘$15,000’’ in its place.
■
22.603
[Amended]
48. Amend section 22.603 by
removing from paragraph (b) ‘‘$10,000’’
and adding ‘‘$15,000’’ in its place.
■
22.605
[Amended]
49. Amend section 22.605 by
removing from paragraphs (a)(1), (a)(2),
(a)(3), and (a)(5) ‘‘$10,000’’ and adding
‘‘$15,000’’ in its place each time it
appears (six times).
■
22.1103
[Amended]
50. Amend section 22.1103 by
removing ‘‘$550,000’’ and adding
‘‘$650,000’’ in its place.
■
■
19.708
53133
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22.1402
[Amended]
51. Amend section 22.1402 by
removing from paragraph (a) ‘‘$10,000’’
and adding ‘‘$15,000’’ in its place.
■
22.1408
[Amended]
52. Amend section 22.1408 by
removing from the introductory text of
paragraph (a) ‘‘$10,000’’ and adding
‘‘$15,000’’ in its place.
■
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Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations
PART 23—ENVIRONMENT, ENERGY
AND WATER EFFICIENCY,
RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL
SAFETY, AND DRUG-FREE
WORKPLACE
23.406
PART 50—EXTRAORDINARY
CONTRACTUAL ACTIONS AND THE
SAFETY ACT
50.102–1
[Amended]
53. Amend section 23.406 by
removing from paragraph (d) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place.
■
PART 28—BONDS AND INSURANCE
28.102–1
[Amended]
54. Amend section 28.102–1 by
removing from paragraphs (a) and (b)(1)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
28.102–2
[Amended]
63. Amend section 50.102–3 by
removing from paragraph (b)(4) ‘‘$28.5
million’’ and adding ‘‘$31.5 million’’ in
its place; and removing from paragraphs
(e)(1)(i) and (e)(1)(ii) ‘‘$55,000’’ and
adding ‘‘$65,000’’ in its place.
■
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
[Amended]
64. Amend section 52.203–7 by
removing from the clause heading ‘‘(July
1995)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from paragraph
(c)(5) ‘‘$100,000’’ and adding ‘‘$150,000’’
in its place.
■
55. Amend section 28.102–2 by
removing from the headings of
paragraphs (b) and (c) ‘‘$100,000’’ and
adding ‘‘$150,000’’ in its place.
[Amended]
56. Amend section 28.102–3 by
removing from paragraphs (a) and (b)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
PART 32—CONTRACT FINANCING
32.404
50.102–3
52.203–7
[Amended]
■
28.102–3
[Amended]
62. Amend section 50.102–1 by
removing from paragraph (b) ‘‘$55,000’’
and adding ‘‘$65,000’’ in its place.
■
[Amended]
52.203–12
52.204–8
57. Amend section 32.404 by
removing from paragraph (a)(7)(i)
‘‘$10,000’’ and adding ‘‘$15,000’’ in its
place.
■
[Amended]
65. Amend section 52.203–12 by
removing from the clause heading ‘‘(Sep
2007)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from paragraphs
(g)(1) and (g)(3) ‘‘$100,000’’ and adding
‘‘$150,000’’ in its place.
■
[Amended]
PART 36—CONSTRUCTION AND
ARCHITECT-ENGINEER CONTRACTS
66. Amend section 52.204–8 by
removing from the provision heading
‘‘(Feb 2009)’’ and adding ‘‘(Oct 2010)’’ in
its place; and removing from paragraph
(c)(1)(ii) ‘‘$100,000’’ and adding
‘‘$150,000’’ in its place.
36.501
52.212–3
■
[Amended]
[Amended]
58. Amend section 36.501 by
removing from paragraph (b)
‘‘$1,000,000’’ and adding ‘‘$1.5 million’’
in its place each time it appears (twice).
PART 42—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
67. Amend section 52.212–3 by
removing from the provision heading
‘‘(Aug 2009)’’ and adding ‘‘(Oct 2010)’’ in
its place; and removing from paragraph
(e) ‘‘$100,000’’ and adding ‘‘$150,000’’ in
its place.
52.212–5
■
42.709
59. Amend section 42.709 by
removing from paragraph (b) ‘‘$650,000’’
and adding ‘‘$700,000’’ in its place.
■
[Amended]
60. Amend section 42.709–6 by
removing ‘‘$650,000’’ and adding
‘‘$700,000’’ in its place.
jlentini on DSKJ8SOYB1PROD with RULES3
■
42.1502
[Amended]
61. Amend section 42.1502 by
removing from paragraph (e) ‘‘$550,000’’
and adding ‘‘$650,000’’ in its place each
time it appears (twice).
■
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17:53 Aug 27, 2010
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[Amended]
68. Amend section 52.212–5 by—
a. Removing from the clause heading
‘‘(Jul 2010)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ b. Removing from paragraph (b)(12)(i)
‘‘(Apr 2008)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ c. Removing from paragraph (b)(25)
‘‘(Jun 1998)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ d. Removing from paragraph (e)(1)(ii)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place;
■ e. Removing from paragraph (e)(1)(vi)
‘‘(Jun 1998)’’ and adding ‘‘(Oct 2010)’’ in
its place; and
■
■
[Amended]
42.709–6
■
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f. In Alternate II by—
1. Removing from the Alternate
heading ‘‘(Apr 2010)’’ and adding ‘‘(Oct
2010)’’ in its place;
■ 2. Removing from paragraph
(e)(1)(ii)(C) ‘‘$550,000’’ and adding
‘‘$650,000’’ in its place, and removing
‘‘$1,000,000’’ and adding ‘‘$1.5 million’’
in its place; and
■ 3. Removing from paragraph
(e)(1)(ii)(F) ‘‘(June 1998)’’ and adding
‘‘(Oct 2010)’’ in its place.
■
■
52.213–4
[Amended]
69. Amend section 52.213–4 by—
a. Removing from the clause heading
‘‘(Jul 2010)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ b. Removing from paragraph (a)(2)(vii)
‘‘(Jun 2010)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ c. Removing from paragraph (b)(1)(ii)
‘‘(Dec 1996)’’ and adding ‘‘(Oct 2010)’’ in
its place, and removing ‘‘$10,000’’ and
adding ‘‘$15,000’’ in its place; and
■ d. Removing from paragraph (b)(1)(iv)
‘‘(June 1998)’’ and adding ‘‘(Oct 2010)’’ in
its place, and removing ‘‘$10,000’’ and
adding ‘‘$15,000’’ in its place.
■
■
52.219–9
[Amended]
70. Amend section 52.219–9 by—
a. Removing from the clause heading
‘‘(Jul 2010)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ b. Removing from paragraph (d)(9)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place;
■ c. Removing from the introductory
text of paragraph (d)(11)(iii) ‘‘$100,000’’
and adding ‘‘$150,000’’ in its place; and
■ d. Removing from paragraph
(l)(2)(i)(C) ‘‘$550,000’’ and adding
‘‘$650,000’’ in its place, and removing
‘‘$1,000,000’’ and adding ‘‘$1.5 million’’
in its place.
■
■
52.222–20
[Amended]
71. Amend section 52.222–20 by
removing from the clause heading ‘‘(Dec
1996)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from the
introductory paragraph ‘‘$10,000’’ and
adding ‘‘$15,000’’ in its place.
■
52.222–36
[Amended]
72. Amend section 52.222–36 by
removing from the clause heading ‘‘(Jun
1998)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from paragraph (d)
‘‘$10,000’’ and adding ‘‘$15,000’’ in its
place.
■
52.225–8
[Amended]
73. Amend section 52.225–8 by
removing from the clause heading ‘‘(Feb
2000)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from the
introductory texts of paragraphs (c)(1)
■
E:\FR\FM\30AUR3.SGM
30AUR3
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations
and (j)(2) ‘‘$10,000’’ and adding
‘‘$15,000’’ in its place.
52.228–15
[Amended]
74. Amend section 52.228–15 by
removing from the clause heading ‘‘(Nov
2006)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from the
introductory text of paragraph (b)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
52.244–6
[Amended]
75. Amend section 52.244–6 by—
a. Removing from the clause heading
‘‘(Jun 2010)’’ and adding ‘‘(Oct 2010)’’ in
its place;
■ b. Removing from paragraph (c)(1)(iii)
‘‘$550,000’’ and adding ‘‘$650,000’’ in its
place, and removing ‘‘$1,000,000’’ and
adding ‘‘$1.5 million’’ in its place; and
■ c. Removing from paragraph (c)(1)(vi)
‘‘(Jun 1998)’’ and adding ‘‘(Oct 2010)’’ in
its place.
■
■
52.248–1
[Amended]
76. Amend section 52.248–1 by
removing from the clause heading ‘‘(Feb
2000)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from paragraph (l)
‘‘$100,000’’ and adding ‘‘$150,000’’ in its
place.
■
52.248–3
[Amended]
77. Amend section 52.248–3 by
removing from the clause heading ‘‘(Sep
2006)’’ and adding ‘‘(Oct 2010)’’ in its
place; and removing from paragraph (h)
‘‘$55,000’’ and adding ‘‘$65,000’’ in its
place.
■
[FR Doc. 2010–21025 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 2, 4, 12, 14, 15, 16, 19,
27, 30, 31, 32, 42, 44, 49, and 52
[FAC 2005–45; FAR Case 2005–036; Item
II; Docket 2007–0001, Sequence 15]
RIN 9000–AK74
Federal Acquisition Regulation;
Definition of Cost or Pricing Data
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
jlentini on DSKJ8SOYB1PROD with RULES3
AGENCIES:
The Civilian Agency
Acquisition Council and the Defense
SUMMARY:
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17:53 Aug 27, 2010
Jkt 220001
Acquisition Regulations Council
(Councils) have agreed on a final rule
amending the Federal Acquisition
Regulation (FAR) to clarify the
distinction between ‘‘certified cost or
pricing data’’ and ‘‘data other than
certified cost or pricing data’’, and to
clarify requirements for submission of
cost or pricing data.
DATES: Effective Date: October 1, 2010.
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 2005–45, FAR
case 2005–036.
SUPPLEMENTARY INFORMATION:
A. Background
Subpart 15.4 of the FAR describes the
contracting officer’s responsibility to
purchase supplies and services at fair
and reasonable prices and the use of
data and information in meeting this
requirement. This subpart incorporates
the requirements of the Truth In
Negotiations Act (TINA), 10 U.S.C.
2306a and 41 U.S.C. 254b, which
address the requirements for the
submission of cost or pricing data and
the circumstances under which a
contractor must certify to their accuracy,
completeness, and currency.
The Councils believe that the
implementation of TINA in FAR subpart
15.4 is not sufficiently clear. In
particular, there is confusion regarding
the right of the Government to request
‘‘data other than certified cost or pricing
data,’’ the obligation of the offeror to
provide this data, and the definition of
this term.
This lack of clarity is due, in large
part, to definitions that overlap and are
not identical to TINA. For example, the
term ‘‘cost or pricing data’’ is defined in
the FAR to mean certified cost or
pricing data, whereas TINA does not
make certification part of the definition
of this term. This regulatory refinement
has led to confusion regarding the level
of information that a contracting officer
may request to establish fair and
reasonable pricing including a
misunderstanding by some that the data
elements that comprise cost or pricing
data cannot be requested by the
Government unless the data are required
by law to be submitted to the
contracting officer in a certified form.
This confusion has been exacerbated by
the FAR’s use of the phrase ‘‘information
other than cost or pricing data,’’ which
has made it difficult for contracting
officers to understand the circumstances
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53135
when data other than certified cost or
pricing data should be obtained to
protect the Government from paying
unreasonable prices.
Even the basic articulation of policy
regarding the use of data to establish the
fairness and reasonableness of offered
prices in the introductory paragraph of
FAR 15.402(a) has lacked a certain level
of clarity that creates uncertainty. For
many years, this paragraph has
appropriately cautioned contracting
officers not to obtain more information
than is necessary—and the FAR must
continue to do so. However this
paragraph should also, but currently
does not, expressly mention the
underlying statutory authority to collect
‘‘data other than certified cost or pricing
data.’’ Because of this omission, some
contracting officers may be under the
misperception that there is a greater
responsibility to avoid asking
unnecessarily for the submission of cost
or pricing data than there is, in the first
instance, to determine whether and how
much of this data may be required, in
a given case, to establish price fairness
and reasonableness. In fact, both
responsibilities—i.e., obtaining data that
are adequate for evaluating the
reasonableness of the price and taking
appropriate care not to ask for more data
than is necessary—are inextricably
interrelated and equally important. As
such, the FAR needs to communicate
this message more clearly.
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
72 FR 20092, April 23, 2007, to revise
the FAR definition of ‘‘cost or pricing
data’’; change the term ‘‘information
other than cost or pricing data’’ to ‘‘data
other than certified cost or pricing data’’;
add a definition of ‘‘certified cost or
pricing data’’ to make the terms and
definitions consistent with TINA and
more understandable to the general
reader; change terminology throughout
the FAR; and clarify the need for
contracting officers to obtain ‘‘data other
than certified cost or pricing data’’ when
there is no other means to determine fair
and reasonable pricing during price
analysis.
Based on comments received on the
proposed rule, a public meeting held on
November 1, 2007, and additional
deliberations (which are all discussed in
greater detail below), the Councils have
adopted a final rule that—
• Clarifies terminology used in the
FAR to make it consistent with TINA,
resulting in (i) refinements to the
regulatory definition of cost or pricing
data, (ii) the addition of a definition for
‘‘certified cost or pricing data,’’ (iii) the
addition of a definition for ‘‘data other
than certified cost or pricing data,’’ and
E:\FR\FM\30AUR3.SGM
30AUR3
Agencies
[Federal Register Volume 75, Number 167 (Monday, August 30, 2010)]
[Rules and Regulations]
[Pages 53129-53135]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21025]
-----------------------------------------------------------------------
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
AGENCY: 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 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 (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
acquisition-related 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 schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-45, FAR
case 2008-024.
SUPPLEMENTARY INFORMATION:
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 acquisition-related 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. 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 subject to the
acquisition-related threshold will continue to grow, because more and
more contracts will be below the stated thresholds.
b. Prime Contractor Subcontracting Plan Thresholds (FAR 19.702)
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.
[[Page 53130]]
Response: The Councils do not agree that adjustment of thresholds
for inflation will have the negative impact perceived by these
respondents. As already stated, inflation adjustment of thresholds is a
means of maintaining the status quo. It will not decrease the number of
contracts that are subject to the Miller Act, but will prevent the
relative number of contracts subject to the Miller Act from increasing.
The rationale that there should be some level below which the Miller
Act is not applicable is maintained by adjustment of the threshold for
inflation. The law (40 U.S.C. 3132) provides alternate payment
protection for contracts that exceed $30,000, so that contracts below
the Miller Act threshold are not entirely without payment protection.
As to whether the Miller Act threshold is an acquisition-related
threshold, this threshold clearly meets the definition that was set
forth in the law, as consistently interpreted by the Councils since the
enactment of the law in 2004. The law defines an acquisition-related
threshold as a threshold that is set forth in law (the Miller Act), as
a factor in defining the scope of the applicability of a policy,
procedure, requirement, or restriction provided in that law to the
procurement of property or services by an executive agency. As this
definition is applied to the Miller Act threshold, the Miller Act
requires payment and performance bonds when agencies acquire
construction that is valued at more than the Miller Act threshold
(raised by this rule from $100,000 to $150,000).
2. Nonstatutory Thresholds
Comment: One respondent was particularly concerned about the
proposed increase in nonstatutory thresholds. In particular, this
respondent cited three examples of threshold increases which the
respondent considered questionable:
Approval levels for limited source justifications at FAR
8.405-6. The respondent stated that increasing such approval levels
appears inconsistent with the President's March 4, 2009, Memorandum.
The threshold at FAR 22.1103 for use of the solicitation
provision FAR 52.222-46, Evaluation of Compensation for Professional
Employees. The respondent stated that when contractors pay very low
wages and benefits, work quality can suffer and the Government may bear
hidden costs because of the need to provide income assistance to low
income families.
The threshold for subcontracting plans governed by FAR
19.702. The respondent stated that the increase of this threshold would
have a detrimental impact, especially on small businesses.
Response: Although there is no statutory requirement to increase
the nonstatutory thresholds, the same rationale applies as to why
escalation to adjust for inflation is a good idea. If there was any
rationale for the level at which the thresholds were originally put in
place by policy, the thresholds will become further and further out of
line with the original policy decision if they are left unchanged. In
addition to this general rationale, the Councils add the following two
particular responses:
In particular, the approval levels for limited source
justifications at FAR 8.405-6 were selected to be consistent with the
statutory thresholds at FAR 6.304(a). Therefore, it is reasonable to
escalate these thresholds the same as the thresholds at FAR 6.304(a) to
maintain the consistency.
Although the respondent cited the threshold for
subcontracting plans governed by FAR 19.702 as an example of a
nonstatutory threshold, this threshold is actually a statutory
threshold (15 U.S.C. 637(d)(4)), which must therefore be escalated.
3. Increase Penalties
Comment: One respondent recommended that the Councils should also
increase the maximum dollar amount of penalties when increasing the
acquisition-related threshold contained in the same statute. According
to the respondent, by not increasing the penalty for failure to
disclose unallowable activities, the Councils are providing contractors
a greater incentive to violate the law.
Response: The penalties are set by statute. The law that the FAR
Council is implementing did not authorize the FAR Council to increase
penalties, only the acquisition-related thresholds.
4. Implementation
Two Government employees provided comments relating to the
implementation of the rule.
a. Provide a Matrix
Comment: One respondent requested a matrix of the changes in order
to save everyone from having to do the analysis and matrix development.
(Although the comment was submitted in response to the FAR rule, the
respondent requested that the Councils provide a Defense Federal
Acquisition Regulation Supplement (DFARS) matrix, so this may have been
intended as a comment on the DFARS inflation adjustment rule.)
Response: In 2006, the URL of a matrix was provided at FAR
1.109(d). Likewise, the current matrix is again available and the
Councils have provided a revised Web address to access it.
b. Effective Date
One respondent expressed concern over the large number of systems
changes that this rule will require and the difficulty of
implementation in a short period of time. The respondent recommended
providing ample time between the release of firm requirements and the
required implementation.
Response: Although the Councils hoped to publish this final rule in
time to allow 60 days for implementation, they were unable to meet that
goal. The effective date of October 1, 2010, allows only a little more
than the standard 30 days for implementations, but this effective date
is consistent with the statutory requirements and the desired
procedures for implementation of changes that impact the Federal
Procurement Data System at the beginning of the fiscal year.
C. Changes Between the Proposed Rule and the Final Rule
Although there were no changes between the proposed rule and the
final rule as the result of public comments, some of the thresholds
changed due to lower inflation than was projected at the time of
publication of the proposed rule. The proposed rule was based on a
projected consumer price index (CPI) of 222 in April 2010. The final
rule is based on an actual CPI of 217.631 through the end of March
2010. The end of March, 6 months before the effective date of the rule,
is used as the cutoff in order to allow time for approval and
publication of the final rule.
Because the actual CPI is more than 4 points lower than the
projected CPI, proposed thresholds of at least $13 million are
generally proportionally lower. Thresholds of less than $13 million
were generally unchanged, due to rounding.
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 (FAR 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.
[[Page 53131]]
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.
This final rule is a significant regulatory action and, therefore,
was 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.
D. 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 adjustment of
acquisition-related thresholds for inflation maintains the status quo.
The Councils note that the set-aside threshold of $100,000 increases to
$150,000, which is not a detriment to small business. Although several
respondents were concerned about the impact of some of the threshold
changes on small businesses (see comment and response at B.1.c. and
B.2.), the Councils reiterate that adjusting a threshold in an amount
sufficient to keep pace with current inflation is neutral in impact on
small businesses because it just maintains the status quo.
E. Paperwork Reduction Act
The Paperwork Reduction Act does apply; however, these changes to
the FAR do not impose additional information collection requirements to
the paperwork burden previously approved under OMB Control Numbers:
9000-0006, Subcontracting Plans/Subcontracting Report for
Individual Contract (SF 294)--FAR Sections Affected: Subpart 19.7 and
52.219-9;
9000-0007, Summary Subcontract Report--FAR Sections
Affected: Subpart 19.7, 53.219, and SF 295;
9000-0013, Cost or Pricing Data Exemption--FAR Sections
Affected: Subparts 15.4, 42.7, 52.214-28, 52.215-12, 52.215-13, 52.215-
20, and 52.215-21;
9000-0018, Certification of Independent Price
Determination and Parent Company and Identifying Data--FAR Sections
Affected: 3.103 and 3.302;
9000-0022, Duty-Free Entry--FAR 48 CFR 52.225-8--FAR
Section Affected: 52.225-8;
9000-0026, Change Order Accounting--FAR Sections Affected:
43.205(f) and 52.243-6;
9000-0027, Value Engineering Requirements--FAR Sections
Affected: Subparts 48.1 and 48.2, 52.248-1, 52.248-2, and 52.248-3;
9000-0034, Examination of Records 5 CFR 1320.5(b) by
Comptroller General and Contract Audit--FAR Sections Affected: 52.215-
2, 52.212-5, and 52.214-26;
9000-0045, Bid, Performance, and Payment Bonds--FAR
Sections Affected: Subparts 28.1 and 28.2, 52.228-1, 52.228-2, 52.228-
13, 52.228-15, and 52.228-16;
9000-0058, Schedules for Construction Contracts--FAR
Section Affected: 52.236-15;
9000-0060, Accident Prevention 48 CFR 52.236-13, Plans and
Recordkeeping--FAR Section Affected: 52.236-13;
9000-0066, Professional Employee Compensation Plan--FAR
Sections Affected: Subpart 22.11 and 52.222-46;
9000-0073, Advance Payments--FAR Sections Affected:
Subpart 32.4 and 52.232-12;
9000-0077, Quality Assurance Requirements--FAR Sections
Affected: Subparts 46.1 through 46.3, 52.246-2 through 52.246-8,
52.246-10, 52.246-12, and 52.246-15;
9000-0080, Integrity of Unit Prices--FAR Sections
Affected: 15.408(f) and 52.215-14;
9000-0091, Anti-Kickback Procedures--FAR Sections
Affected: 3.502, and 52.203-7;
9000-0094, Debarment and Suspension, FAR Sections
Affected: 9.1, 9.4, 52.209-5, and 52.212-3(h);
9000-0101, Drug-Free Workplace--FAR Section Affected:
52.223-6(b)(5);
9000-0115, Notification of Ownership Changes--FAR Sections
Affected: 15.408(k) and 52.215-19;
9000-0133, Defense Production Act Amendments--FAR Sections
Affected: 34.1 and 52.234-1;
9000-0134, Environmentally Sound Products--FAR Sections
Affected: 23.406 and 52.223-4;
9000-0135, Prospective Subcontractor Requests for Bonds,
FAR 28.106-4(b), 52.228-12;
1215-0072, OFCCP Recordkeeping and Reporting
Requirements--Supply and Service; and
1215-0119, Requirements of a Bona Fide Thrift or Savings
Plan (29 CFR part 547) and Requirements of a Bona Fide Profit-Sharing
Plan or Trust (29 CFR part 549).
List of Subjects in 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
Government procurement.
Dated: August 18, 2010.
Edward Loeb,
Director, Acquisition Policy Division.
0
Therefore, DoD, GSA, and NASA amend 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 as set forth
below:
0
1. The authority citation for 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 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 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.109 [Amended]
0
2. Amend section 1.109 by removing from paragraph (d) ``https://
acquisition.gov/far/facsframe.html'' and adding ``https://www.regulations.gov (search FAR case 2008-024)'' in its place.
PART 2--DEFINITIONS OF WORDS AND TERMS
2.101 [Amended]
0
3. Amend section 2.101 in paragraph (b)(2) by--
0
a. Amending the definition ``Major system'' by removing from paragraph
(1) ``$173.5 million'' and adding ``$189.5 million'', and removing
``$814.5 million'' and adding ``$890 million''; and removing from
paragraph (2) ``$1.8 million'' and adding ``$2 million'' in its place;
0
b. Amending the definition ``Micro-purchase threshold'' by removing
from paragraph (3)(ii) ``$25,000'' and adding ``$30,000'' in its place;
and
0
c. Amending the definition ``Simplified acquisition threshold'' by
removing from the introductory paragraph ``$100,000'' and adding
``$150,000'' in its place; and removing from paragraph (1) ``$250,000''
and adding ``$300,000'' in its place.
PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
3.502-2 [Amended]
0
4. Amend section 3.502-2 by removing from the introductory text of
paragraph (i) ``$100,000'' and adding ``$150,000'' in its place.
3.804 [Amended]
0
5. Amend section 3.804 by removing ``$100,000'' and adding ``$150,000''
in its place.
[[Page 53132]]
3.808 [Amended]
0
6. Amend section 3.808 by removing from paragraphs (a) and (b)
``$100,000'' and adding ``$150,000'' in its place.
PART 5--PUBLICIZING CONTRACT ACTIONS
5.101 [Amended]
0
7. Amend section 5.101 by removing from the introductory text of
paragraph (a)(2) ``$10,000'' and adding ``$15,000'' in its place.
5.205 [Amended]
0
8. Amend section 5.205 by removing from paragraph (d)(2) ``$10,000''
and adding ``$15,000'' in its place.
5.206 [Amended]
0
9. Amend section 5.206 by--
0
a. Removing from paragraph (a)(1) ``$100,000'' and adding ``$150,000''
in its place; and
0
b. Removing from paragraph (a)(2) ``$100,000'' and adding ``$150,000''
in its place, and removing ``$10,000'' and adding ``$15,000'' in its
place.
5.303 [Amended]
0
10. Amend section 5.303 by removing from the introductory text of
paragraph (a) ``$3.5 million'' and adding ``$4 million'' in its place.
PART 6--COMPETITION REQUIREMENTS
6.304 [Amended]
0
11. Amend section 6.304 by--
0
a. Removing from paragraph (a)(1) ``$550,000'' and adding ``$650,000''
in its place;
0
b. Removing from paragraph (a)(2) ``$550,000'' and adding ``$650,000''
in its place, and removing ``$11.5 million'' and adding ``$12.5
million'' in its place;
0
c. Removing from the introductory text of paragraph (a)(3) ``$11.5
million'' and adding ``$12.5 million'' in its place, removing ``$57
million'' and adding ``$62.5 million'' in its place, and removing
``$78.5 million'' and adding ``$85.5 million'' in its place; and
0
d. Removing from paragraph (a)(4) ``$57 million'' and adding ``$62.5
million'' in its place, and removing ``$78.5 million'' and adding
``$85.5 million'' in its place.
PART 7--ACQUISITION PLANNING
7.104 [Amended]
0
12. Amend section 7.104 by--
0
a. Removing from paragraph (d)(2)(i)(A) ``$7.5 million'' and adding
``$8 million'' in its place;
0
b. Removing from paragraph (d)(2)(i)(B) ``$5.5 million'' and adding
``$6 million'' in its place; and
0
c. Removing from paragraph (d)(2)(i)(C) ``$2 million'' and adding
``$2.5 million'' in its place.
7.107 [Amended]
0
13. Amend section 7.107 by--
0
a. Removing from paragraph (b)(1) ``$86 million'' and adding ``$94
million'' in its place; and
0
b. Removing from paragraph (b)(2) ``$8.6 million'' and adding ``$9.4
million'' in its place, and removing ``$86 million'' and adding ``$94
million'' in its place.
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
8.405-6 [Amended]
0
14. Amend section 8.405-6 by--
0
a. Removing from paragraph (h)(1) ``$550,000'' and adding ``$650,000''
in its place;
0
b. Removing from paragraph (h)(2) ``$550,000'' and adding ``$650,000''
in its place, and removing ``$11.5 million'' and adding ``$12.5
million'' in its place;
0
c. Removing from the introductory text of paragraph (h)(3) ``$11.5
million'' and adding ``$12.5 million'' in its place, removing ``$57
million'' and adding ``$62.5 million'' in its place, and removing
``$78.5 million'' and adding ``$85.5 million'' in its place; and
0
d. Removing from paragraph (h)(4) ``$57 million'' and adding ``$62.5
million'' in its place, and removing ``$78.5 million'' and adding
``$85.5 million'' in its place.
PART 12--ACQUISITION OF COMMERCIAL ITEMS
12.102 [Amended]
0
15. Amend section 12.102 by removing from the introductory text of
paragraph (f)(2) ``$16 million'' and adding ``$17.5 million'' in its
place; and removing from paragraph (g)(1)(ii) ``$27 million'' and
adding ``$29.5 million'' in its place.
12.203 [Amended]
0
16. Amend section 12.203 by removing ``$5.5 million'' and adding ``$6.5
million'' in its place, and removing ``$11 million'' and adding ``$12
million'' in its place.
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
13.000 [Amended]
0
17. Amend section 13.000 by removing ``$5.5 million'' and adding ``$6.5
million'' in its place, and removing ``$11 million'' and adding ``$12
million'' in its place.
13.003 [Amended]
0
18. Amend section 13.003 by--
0
a. Removing from paragraph (b)(1) ``$100,000'' and adding ``$150,000''
in its place, and removing ``$250,000'' and adding ``$300,000'' in its
place;
0
b. Removing from paragraph (c)(1)(ii) ``$5.5 million'' and adding
``$6.5 million'' in its place, and removing ``$11 million'' and adding
``$12 million'' in its place; and
0
c. Removing from paragraph (g)(2) ``$5.5 million'' and adding ``$6.5
million'', and removing ``$11 million'' and adding ``$12 million'' in
its place.
13.005 [Amended]
0
19. Amend section 13.005 by removing from paragraph (a)(5) ``$100,000''
and adding ``$150,000'' in its place.
13.201 [Amended]
0
20. Amend section 13.201 by removing from paragraph (g)(1)(ii)
``$25,000'' and adding ``$30,000'' in its place.
13.303-5 [Amended]
0
21. Amend section 13.303-5 by--
0
a. Removing from paragraph (b)(1) ``$5.5 million'' and adding ``$6.5
million'' in its place, and removing ``$11 million'' and adding ``$12
million'' in its place; and
0
b. Removing from paragraph (b)(2) ``$5.5 million'' and adding ``$6.5
million'' in its place, and removing ``$11 million'' and adding ``$12
million'' in its place.
13.500 [Amended]
0
22. Amend section 13.500 by--
0
a. Removing from paragraph (a) ``$5.5 million'' and adding ``$6.5
million'' in its place, and removing ``$11 million'' and adding ``$12
million'' in its place; and
0
b. Removing from the introductory text of paragraph (e) ``$11 million''
and adding ``$12 million'' in its place.
13.501 [Amended]
0
23. Amend section 13.501 by--
0
a. Removing from paragraph (a)(2)(i) ``$100,000'' and adding
``$150,000'' in its place, and removing ``$550,000'' and adding
``$650,000'' in its place;
0
b. Removing from paragraph (a)(2)(ii) ``$550,000'' and adding
``$650,000'' in its place, and removing ``$11.5 million'' and adding
``$12.5 million'' in its place;
0
c. Removing from paragraph (a)(2)(iii) ''$11.5 million'' and adding
``$12.5 million'' in its place, removing ``$57 million'' and adding
``$62.5 million'' in its place, and removing ``$78.5 million'' and
adding ``$85.5 million'' in its place; and
0
d. Removing from paragraph (a)(2)(iv) ``$57 million'' and adding
``$62.5 million'' in its place, and removing ``$78.5 million'' and
adding ``$85.5 million'' in its place.
[[Page 53133]]
PART 15--CONTRACTING BY NEGOTIATION
15.304 [Amended]
0
24. Amend section 15.304 by removing from paragraph (c)(4) ``$550,000''
and adding ``$650,000'' in its place, and by removing ``$1,000,000''
and adding ``$1.5 million'' in its place.
15.403-1 [Amended]
0
25. Amend section 15.403-1 by removing from paragraph (c)(3)(iv) ``$16
million'' and adding ``$17.5 million'' in its place.
15.403-4 [Amended]
0
26. Amend section 15.403-4 by removing from the introductory texts of
paragraphs (a)(1) and (a)(1)(iii) ``$650,000'' and adding ``$700,000''
in its place.
15.404-3 [Amended]
0
27. Amend section 15.404-3 by removing from paragraph (c)(1)(i) ``$11.5
million'' and adding ``$12.5 million'' in its place.
15.407-2 [Amended]
0
28. Amend section 15.407-2 by removing from paragraph (c)(1) and the
introductory text of paragraph (c)(2) ``$11.5 million'' and adding
``$12.5 million'' in its place.
15.408 [Amended]
0
29. Amend section 15.408 in Table 15-2, ``II. Cost Elements'' which
follows paragraph (n), by removing from paragraph ``A(2)'' ``$11.5
million'' and adding ``$12.5 million'' in its place.
PART 16--TYPES OF CONTRACTS
16.206-2 [Amended]
0
30. Amend section 16.206-2 by removing from the introductory paragraph
``$100,000'' and adding ``$150,000'' in its place.
16.206-3 [Amended]
0
31. Amend section 16.206-3 by removing from paragraph (a) ``$100,000''
and adding ``$150,000'' in its place.
16.207-3 [Amended]
0
32. Amend section 16.207-3 by removing from paragraph (d) ``$100,000''
and adding ``$150,000'' in its place.
16.503 [Amended]
0
33. Amend section 16.503 by removing from paragraph (b)(2) ``$100
million'' and adding ``$103 million'' in its place; and removing from
paragraph (d)(1) ``$11.5 million'' and adding ``$12.5 million'' in its
place.
16.504 [Amended]
0
34. Amend section 16.504 by removing from the introductory texts of
paragraphs (c)(1)(ii)(D)(1) and (c)(1)(ii)(D)(3) ``$100 million'' and
adding ``$103 million'' in its place; and removing from the
introductory text of paragraph (c)(2)(i) ``$11.5 million'' and adding
``$12.5 million'' in its place.
16.506 [Amended]
0
35. Amend section 16.506 by removing from paragraphs (f) and (g)
``$11.5 million'' and adding ``$12.5 million'' in its place.
PART 17--SPECIAL CONTRACTING METHODS
17.108 [Amended]
0
36. Amend section 17.108 by removing from paragraph (a) ``$11.5
million'' and adding ``$12.5 million'' in its place; and removing from
paragraph (b) ``$114.5 million'' and adding ``$125 million'' in its
place.
PART 19--SMALL BUSINESS PROGRAMS
19.502-2 [Amended]
0
37. Amend section 19.502-2 by--
0
a. Removing from paragraph (a) ``$100,000'' and adding ``$150,000'' in
its place each time it appears (twice), and removing ``$250,000'' and
adding ``$300,000'' in its place; and
0
b. Removing from paragraph (b) ``$100,000'' and adding ``$150,000'' in
its place.
19.508 [Amended]
0
38. Amend section 19.508 by removing from paragraph (e) ``$100,000''
and adding ``$150,000'' in its place.
19.702 [Amended]
0
39. Amend section 19.702 by--
0
a. Removing from paragraph (a)(1) ``$550,000'' and adding ``$650,000''
in its place, and removing ``$1,000,000'' and adding ``$1.5 million''
in its place; and
0
b. Removing from paragraph (a)(2) ``$550,000'' and adding ``$650,000''
in its place, and removing ``$1,000,000'' and adding ``$1.5 million''
in its place.
19.704 [Amended]
0
40. Amend section 19.704 by removing from paragraph (a)(9) ``$550,000''
and adding ``$650,000'' in its place, and removing ``$1,000,000'' and
adding ``$1.5 million'' in its place.
19.708 [Amended]
0
41. Amend section 19.708 by removing from paragraph (b)(1) ``$550,000''
and adding ``$650,000'' in its place, and removing ``$1,000,000'' and
adding ``$1.5 million'' in its place.
19.805-1 [Amended]
0
42. Amend section 19.805-1 by removing from paragraph (a)(2) ``$5.5
million'' and adding ``$6.5 million'' in its place, and removing ``$3.5
million'' and adding ``$4 million'' in its place.
19.1202-2 [Amended]
0
43. Amend section 19.1202-2 by removing from paragraph (a) ``$550,000''
and adding ``$650,000'' in its place, and removing ``$1,000,000'' and
adding ``$1.5 million'' in its place.
19.1306 [Amended]
0
44. Amend section 19.1306 by removing from paragraph (a)(2)(i) ``$5.5
million'' and adding ``$6.5 million'' in its place; and removing from
paragraph (a)(2)(ii) ``$3.5 million'' and adding ``$4 million'' in its
place.
19.1406 [Amended]
0
45. Amend section 19.1406 by removing from paragraph (a)(2)(i) ``$5.5
million'' and adding ``$6 million'' in its place; and removing from
paragraph (a)(2)(ii) ``$3 million'' and adding ``$3.5 million'' in its
place.
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.305 [Amended]
0
46. Amend section 22.305 by removing from paragraph (a) ``$100,000''
and adding ``$150,000'' in its place.
22.602 [Amended]
0
47. Amend section 22.602 by removing ``$10,000'' and adding ``$15,000''
in its place.
22.603 [Amended]
0
48. Amend section 22.603 by removing from paragraph (b) ``$10,000'' and
adding ``$15,000'' in its place.
22.605 [Amended]
0
49. Amend section 22.605 by removing from paragraphs (a)(1), (a)(2),
(a)(3), and (a)(5) ``$10,000'' and adding ``$15,000'' in its place each
time it appears (six times).
22.1103 [Amended]
0
50. Amend section 22.1103 by removing ``$550,000'' and adding
``$650,000'' in its place.
22.1402 [Amended]
0
51. Amend section 22.1402 by removing from paragraph (a) ``$10,000''
and adding ``$15,000'' in its place.
22.1408 [Amended]
0
52. Amend section 22.1408 by removing from the introductory text of
paragraph (a) ``$10,000'' and adding ``$15,000'' in its place.
[[Page 53134]]
PART 23--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE ENERGY
TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
23.406 [Amended]
0
53. Amend section 23.406 by removing from paragraph (d) ``$100,000''
and adding ``$150,000'' in its place.
PART 28--BONDS AND INSURANCE
28.102-1 [Amended]
0
54. Amend section 28.102-1 by removing from paragraphs (a) and (b)(1)
``$100,000'' and adding ``$150,000'' in its place.
28.102-2 [Amended]
0
55. Amend section 28.102-2 by removing from the headings of paragraphs
(b) and (c) ``$100,000'' and adding ``$150,000'' in its place.
28.102-3 [Amended]
0
56. Amend section 28.102-3 by removing from paragraphs (a) and (b)
``$100,000'' and adding ``$150,000'' in its place.
PART 32--CONTRACT FINANCING
32.404 [Amended]
0
57. Amend section 32.404 by removing from paragraph (a)(7)(i)
``$10,000'' and adding ``$15,000'' in its place.
PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
36.501 [Amended]
0
58. Amend section 36.501 by removing from paragraph (b) ``$1,000,000''
and adding ``$1.5 million'' in its place each time it appears (twice).
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
42.709 [Amended]
0
59. Amend section 42.709 by removing from paragraph (b) ``$650,000''
and adding ``$700,000'' in its place.
42.709-6 [Amended]
0
60. Amend section 42.709-6 by removing ``$650,000'' and adding
``$700,000'' in its place.
42.1502 [Amended]
0
61. Amend section 42.1502 by removing from paragraph (e) ``$550,000''
and adding ``$650,000'' in its place each time it appears (twice).
PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT
50.102-1 [Amended]
0
62. Amend section 50.102-1 by removing from paragraph (b) ``$55,000''
and adding ``$65,000'' in its place.
50.102-3 [Amended]
0
63. Amend section 50.102-3 by removing from paragraph (b)(4) ``$28.5
million'' and adding ``$31.5 million'' in its place; and removing from
paragraphs (e)(1)(i) and (e)(1)(ii) ``$55,000'' and adding ``$65,000''
in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.203-7 [Amended]
0
64. Amend section 52.203-7 by removing from the clause heading ``(July
1995)'' and adding ``(Oct 2010)'' in its place; and removing from
paragraph (c)(5) ``$100,000'' and adding ``$150,000'' in its place.
52.203-12 [Amended]
0
65. Amend section 52.203-12 by removing from the clause heading ``(Sep
2007)'' and adding ``(Oct 2010)'' in its place; and removing from
paragraphs (g)(1) and (g)(3) ``$100,000'' and adding ``$150,000'' in
its place.
52.204-8 [Amended]
0
66. Amend section 52.204-8 by removing from the provision heading
``(Feb 2009)'' and adding ``(Oct 2010)'' in its place; and removing
from paragraph (c)(1)(ii) ``$100,000'' and adding ``$150,000'' in its
place.
52.212-3 [Amended]
0
67. Amend section 52.212-3 by removing from the provision heading
``(Aug 2009)'' and adding ``(Oct 2010)'' in its place; and removing
from paragraph (e) ``$100,000'' and adding ``$150,000'' in its place.
52.212-5 [Amended]
0
68. Amend section 52.212-5 by--
0
a. Removing from the clause heading ``(Jul 2010)'' and adding ``(Oct
2010)'' in its place;
0
b. Removing from paragraph (b)(12)(i) ``(Apr 2008)'' and adding ``(Oct
2010)'' in its place;
0
c. Removing from paragraph (b)(25) ``(Jun 1998)'' and adding ``(Oct
2010)'' in its place;
0
d. Removing from paragraph (e)(1)(ii) ``$550,000'' and adding
``$650,000'' in its place, and removing ``$1,000,000'' and adding
``$1.5 million'' in its place;
0
e. Removing from paragraph (e)(1)(vi) ``(Jun 1998)'' and adding ``(Oct
2010)'' in its place; and
0
f. In Alternate II by--
0
1. Removing from the Alternate heading ``(Apr 2010)'' and adding ``(Oct
2010)'' in its place;
0
2. Removing from paragraph (e)(1)(ii)(C) ``$550,000'' and adding
``$650,000'' in its place, and removing ``$1,000,000'' and adding
``$1.5 million'' in its place; and
0
3. Removing from paragraph (e)(1)(ii)(F) ``(June 1998)'' and adding
``(Oct 2010)'' in its place.
52.213-4 [Amended]
0
69. Amend section 52.213-4 by--
0
a. Removing from the clause heading ``(Jul 2010)'' and adding ``(Oct
2010)'' in its place;
0
b. Removing from paragraph (a)(2)(vii) ``(Jun 2010)'' and adding ``(Oct
2010)'' in its place;
0
c. Removing from paragraph (b)(1)(ii) ``(Dec 1996)'' and adding ``(Oct
2010)'' in its place, and removing ``$10,000'' and adding ``$15,000''
in its place; and
0
d. Removing from paragraph (b)(1)(iv) ``(June 1998)'' and adding ``(Oct
2010)'' in its place, and removing ``$10,000'' and adding ``$15,000''
in its place.
52.219-9 [Amended]
0
70. Amend section 52.219-9 by--
0
a. Removing from the clause heading ``(Jul 2010)'' and adding ``(Oct
2010)'' in its place;
0
b. Removing from paragraph (d)(9) ``$550,000'' and adding ``$650,000''
in its place, and removing ``$1,000,000'' and adding ``$1.5 million''
in its place;
0
c. Removing from the introductory text of paragraph (d)(11)(iii)
``$100,000'' and adding ``$150,000'' in its place; and
0
d. Removing from paragraph (l)(2)(i)(C) ``$550,000'' and adding
``$650,000'' in its place, and removing ``$1,000,000'' and adding
``$1.5 million'' in its place.
52.222-20 [Amended]
0
71. Amend section 52.222-20 by removing from the clause heading ``(Dec
1996)'' and adding ``(Oct 2010)'' in its place; and removing from the
introductory paragraph ``$10,000'' and adding ``$15,000'' in its place.
52.222-36 [Amended]
0
72. Amend section 52.222-36 by removing from the clause heading ``(Jun
1998)'' and adding ``(Oct 2010)'' in its place; and removing from
paragraph (d) ``$10,000'' and adding ``$15,000'' in its place.
52.225-8 [Amended]
0
73. Amend section 52.225-8 by removing from the clause heading ``(Feb
2000)'' and adding ``(Oct 2010)'' in its place; and removing from the
introductory texts of paragraphs (c)(1)
[[Page 53135]]
and (j)(2) ``$10,000'' and adding ``$15,000'' in its place.
52.228-15 [Amended]
0
74. Amend section 52.228-15 by removing from the clause heading ``(Nov
2006)'' and adding ``(Oct 2010)'' in its place; and removing from the
introductory text of paragraph (b) ``$100,000'' and adding ``$150,000''
in its place.
52.244-6 [Amended]
0
75. Amend section 52.244-6 by--
0
a. Removing from the clause heading ``(Jun 2010)'' and adding ``(Oct
2010)'' in its place;
0
b. Removing from paragraph (c)(1)(iii) ``$550,000'' and adding
``$650,000'' in its place, and removing ``$1,000,000'' and adding
``$1.5 million'' in its place; and
0
c. Removing from paragraph (c)(1)(vi) ``(Jun 1998)'' and adding ``(Oct
2010)'' in its place.
52.248-1 [Amended]
0
76. Amend section 52.248-1 by removing from the clause heading ``(Feb
2000)'' and adding ``(Oct 2010)'' in its place; and removing from
paragraph (l) ``$100,000'' and adding ``$150,000'' in its place.
52.248-3 [Amended]
0
77. Amend section 52.248-3 by removing from the clause heading ``(Sep
2006)'' and adding ``(Oct 2010)'' in its place; and removing from
paragraph (h) ``$55,000'' and adding ``$65,000'' in its place.
[FR Doc. 2010-21025 Filed 8-27-10; 8:45 am]
BILLING CODE 6820-EP-P