Federal Acquisition Regulation; Inflation Adjustment of Acquisition-Related Thresholds, 53129-53135 [2010-21025]

Download as PDF 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 jlentini on DSKJ8SOYB1PROD with RULES3 SUMMARY: VerDate Mar<15>2010 17:53 Aug 27, 2010 Jkt 220001 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 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 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. E:\FR\FM\30AUR3.SGM 30AUR3 53130 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations jlentini on DSKJ8SOYB1PROD with RULES3 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 VerDate Mar<15>2010 17:53 Aug 27, 2010 Jkt 220001 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). PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 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. E:\FR\FM\30AUR3.SGM 30AUR3 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations • 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. jlentini on DSKJ8SOYB1PROD with RULES3 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; VerDate Mar<15>2010 17:53 Aug 27, 2010 Jkt 220001 • 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). PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 53131 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) ‘‘http:// acquisition.gov/far/facsframe.html’’ and adding ‘‘http://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. ■ E:\FR\FM\30AUR3.SGM 30AUR3 53132 3.808 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 jlentini on DSKJ8SOYB1PROD with RULES3 [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 ■ ■ VerDate Mar<15>2010 17:53 Aug 27, 2010 Jkt 220001 [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— PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 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. ■ ■ E:\FR\FM\30AUR3.SGM 30AUR3 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. ■ VerDate Mar<15>2010 17:53 Aug 27, 2010 Jkt 220001 [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. ■ PO 00000 Frm 00007 Fmt 4701 [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 Sfmt 4700 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. ■ E:\FR\FM\30AUR3.SGM 30AUR3 53134 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). ■ VerDate Mar<15>2010 17:53 Aug 27, 2010 Jkt 220001 [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 ■ PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 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: VerDate Mar<15>2010 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 PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 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) ``http://
acquisition.gov/far/facsframe.html'' and adding ``http://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