Federal Acquisition Regulation; Federal Acquisition Circular 2005-55; Introduction, 182-183 [2011-33405]

Download as PDF 182 Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Rules and Regulations and National Aeronautics and Space Administration (NASA). DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION Summary presentation of final and interim rules. ACTION: NATIONAL AERONAUTICS AND SPACE ADMINISTRATION This document summarizes the Federal Acquisition Regulation (FAR) rules agreed to by DoD, GSA, and NASA in this Federal Acquisition Circular (FAC) 2005–55. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is available via the Internet at http://www. regulations.gov. SUMMARY: 48 CFR Chapter 1 [Docket FAR 2011–0076; Sequence 7] Federal Acquisition Regulation; Federal Acquisition Circular 2005–55; Introduction Department of Defense (DoD), General Services Administration (GSA), AGENCIES: For effective dates and comment dates, see separate documents, which follow. DATES: The analyst whose name appears in the table below in relation to each FAR case. Please cite FAC 2005–55 and the specific FAR case numbers. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501– 4755. FOR FURTHER INFORMATION CONTACT: LIST OF RULES IN FAC 2005–55 Item Subject I ................... II .................. III ................. IV ................. V .................. VI ................. VII ................ Preventing Abuse of Interagency Contracts ....................................................................................... Transition to the System for Award Management (SAM) ................................................................... Brand-Name Specifications ................................................................................................................. Time-and-Materials and Labor-Hour Contracts for Commercial Items ............................................... Public Access to the Federal Awardee Performance and Integrity Information System .................... Updated Financial Accounting Standards Board Accounting References .......................................... Technical Amendments. SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the actual revisions and/or amendments made by these FAR cases, refer to the specific item numbers and subject set forth in the documents following these item summaries. FAC 2005–55 amends the FAR as specified below: TKELLEY on DSK3SPTVN1PROD with RULES2 Item I—Preventing Abuse of Interagency Contracts (FAR Case 2008– 032) This rule adopts as final, with changes, an interim rule that implemented section 865, Preventing Abuse of Interagency Contracts, of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110–417). This final rule further amends FAR subpart 17.5 to make it clear that this rule only applies to interagency acquisitions when an agency needing supplies or services obtains them using another agency’s contract; or when an agency uses another agency to provide acquisition assistance, such as awarding and administering a contract, a task order, or delivery order. A business case analysis must be developed for the establishment and renewal of governmentwide acquisition contracts as well as for multi-agency contracts. Additionally, FAR 35.017 clarifies determination requirements when using a Federally Funded Research and Development Center. This rule does not impose any VerDate Mar<15>2010 17:59 Dec 30, 2011 Jkt 226001 FAR case information collection requirements on small business. There is no significant impact on small businesses because this rule is only applicable to internal operating procedures of the Government. Item II—Transition to the System for Award Management (SAM) (FAR Case 2011–021) The Integrated Acquisition Environment (IAE) systems are being transitioned to a new System for Award Management (SAM) architecture. This effort will transition the Central Contractor Registration (CCR) database, the Excluded Parties Listing System (EPLS), and the Online Representations and Certifications Application (ORCA) to SAM. The FAR change will indicate that these IAE systems and the Disaster Response Registry will now be accessed through http://www.acquisition.gov. This rule will not significantly affect small business, as the only impact on the public will be the Web site address that offerors/contractors will need to use. Item III—Brand-Name Specifications (FAR Case 2005–037) This final rule adopts, with changes, the interim rule that amended the FAR to fully implement Office of Management and Budget memoranda and policies on the use of brand-name specifications. The final rule clarifies that when applicable, the PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 2008–032 2011–021 2005–037 2009–043 2010–016 2010–005 Analyst Sakalos. Loeb. Clark. Sakalos. Loeb. Chambers. documentation or justification and posting requirements for brand name items only apply to the portion of the acquisition that requires the brand name item. The final rule also adds a requirement to screen the brand name documentation or justification for contractor proprietary data. Further, the final rule requires the contracting officer to post the justifications for an order peculiar to one manufacturer under indefinite-delivery contracts. The rule will benefit small business entities by providing the opportunity for review of brand-name justification and approval documents for contracts and orders awarded noncompetitively, thereby increasing the opportunity for competition for future awards. Item IV—Time-and-Materials and Labor-Hour Contracts for Commercial Items (FAR Case 2009–043) This final rule amends the FAR to implement recommendations from the Government Accountability Office to: (1) Ensure that time-and-materials (T&M) and labor-hour (LH) contracts are used to acquire commercial services only when no other contract type is suitable, and (2) instill discipline in the determination of contract type with a view toward managing the risk to the Government. The requirement for a determination and findings when no other contract type is suitable is added to FAR 8.404, Use of Federal Supply Schedules. FAR 8.404 has also been E:\FR\FM\03JAR2.SGM 03JAR2 Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Rules and Regulations amended to address increases in the order ceiling price of T&M and LH contracts, to more closely conform to the language at FAR 12.207. In addition, FAR 16.201 is modified and FAR 16.600 is added to clarify that T&M and LH contracts are not types of fixed-price contracts. This rule will not have a significant economic impact on a substantial number of small entities. Item V—Public Access to the Federal Awardee Performance and Integrity Information System (FAR Case 2010– 016) This rule adopts as final, with changes, an interim rule. The interim rule implemented section 3010 of the Supplemental Appropriations Act, 2010 (Pub. L. 111–212), enacted July 29, 2010. Section 3010 requires that the information in the Federal Awardee Performance and Integrity Information System (FAPIIS), excluding past performance reviews, shall be made publicly available. The interim rule notified contractors of this new statutory requirement for public access to FAPIIS. In response to public comments, the final rule allows a 14-calendar-day delay before making the data available to the public. Contractors have 7 calendar days within those 14 calendar days to assert a disclosure exemption under the Freedom of Information Act. In addition, the FAPIIS system has been modified to allow more space for contractor comments. The rule does not impose any new requirements on small businesses. Dated: December 21, 2011. Laura Auletta, Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy. Federal Acquisition Circular (FAC) 2005–55 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration. Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005–55 is effective January 3, 2012, except for Items I, II, III, IV, and VI which are effective February 2, 2012. Dated: December 21, 2011. Richard Ginman, Director, Defense Procurement and Acquisition Policy. Dated: December 22, 2011. Mindy S. Connolly, Chief Acquisition Officer, U.S. General Services Administration. Dated: December 20, 2011. William P. McNally, Assistant Administrator for Procurement, National Aeronautics and Space Administration. [FR Doc. 2011–33405 Filed 12–30–11; 8:45 am] BILLING CODE 6820–EP–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 2, 4, 7, 8, 9, 17, 18, 35, and 41 This final rule amends the FAR sections 31.205–11, 31.205–36, 52.204– 10, 52.212–5, and 52.213–4 to update references to authoritative accounting standards owing to the Financial Accounting Standards Board’s Accounting Standards Codification of Generally Accepted Accounting Principles (‘‘Codification of GAAP’’). These revisions have no effect other than to simply replace the superseded references with updated references. TKELLEY on DSK3SPTVN1PROD with RULES2 Item VI—Updated Financial Accounting Standards Board Accounting References (FAR Case 2010–005) RIN 9000–AL69 [FAC 2005–55; FAR Case 2008–032; Item I; Docket 2010–0107, Sequence 1] Item VII—Technical Amendments Editorial changes are made at FAR 4.603, 8.402, 8.405–5, 8.703, 15.402, 15.403–1, 19.102, 19.402, 22.404–1, 22.1304, 22.1306, 23.205, 23.401, 28.203–3, 42.203, 52.202–1, 52.212–3, 52.219–22, and 52.228–11. VerDate Mar<15>2010 17:59 Dec 30, 2011 Jkt 226001 Federal Acquisition Regulation; Preventing Abuse of Interagency Contracts Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCIES: DoD, GSA, and NASA have adopted as final, with changes, an interim rule amending the Federal Acquisition Regulation (FAR) to implement a section of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009, to prevent abuse of interagency contracts. DATES: Effective Date: February 2, 2012. SUMMARY: PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 183 Ms. Lori Sakalos, Procurement Analyst, at (202) 208–0498 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501– 4755. Please cite FAC 2005–55, FAR Case 2008–032. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: I. Background DoD, GSA, and NASA published an interim rule in the Federal Register at 75 FR 77733 on December 13, 2010, to implement paragraphs (b) and (d) of section 865 of the Duncan Hunter National Defense Authorization Act (NDAA). The rule is designed to ensure that the benefits of interagency acquisitions are consistently achieved. The FAR changes are applicable to all interagency acquisitions issued under the Economy Act (31 U.S.C. 1535) as well as other authorities, in recognition that an increasing number of interagency acquisitions are conducted using authorities other than the Economy Act. This rule strengthens FAR subpart 17.5, Interagency Acquisitions by— • Broadening the scope of coverage to address all interagency acquisitions that result in a contract action, but does not apply to Federal Supply Schedule (FSS) orders under $500,000; • Requiring agencies to support the decision to use an interagency acquisition with a determination that such action is the ‘‘best procurement approach;’’ and • Directing that assisted acquisitions be accompanied by written agreements between the requesting agency and the servicing agency documenting the roles and responsibilities of the respective parties. Five respondents submitted comments on the interim rule. Two of the respondents from the same organization provided duplicate comments. II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) reviewed the public comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of those comments are provided as follows: A. Summary of Significant Changes As a result of public comments, changes were made to the interim rule to— 1. Make it clear that FAR subpart 17.5 applies to interagency acquisitions E:\FR\FM\03JAR2.SGM 03JAR2

Agencies

[Federal Register Volume 77, Number 1 (Tuesday, January 3, 2012)]
[Rules and Regulations]
[Pages 182-183]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33405]



[[Page 181]]

Vol. 77

Tuesday,

No. 1

January 3, 2012

Part III





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1





Federal Acquisition Regulation; Final Rules

Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Rules 
and Regulations

[[Page 182]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket FAR 2011-0076; Sequence 7]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-55; Introduction

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final and interim rules.

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

SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by DoD, GSA, and NASA in this Federal Acquisition 
Circular (FAC) 2005-55. A companion document, the Small Entity 
Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, 
is available via the Internet at http://www.regulations.gov.

DATES: For effective dates and comment dates, see separate documents, 
which follow.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the 
table below in relation to each FAR case. Please cite FAC 2005-55 and 
the specific FAR case numbers. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat at (202) 501-
4755.

                      List of Rules in FAC 2005-55
------------------------------------------------------------------------
       Item               Subject           FAR case        Analyst
------------------------------------------------------------------------
I................  Preventing Abuse of       2008-032  Sakalos.
                    Interagency
                    Contracts.
II...............  Transition to the         2011-021  Loeb.
                    System for Award
                    Management (SAM).
III..............  Brand-Name                2005-037  Clark.
                    Specifications.
IV...............  Time-and-Materials        2009-043  Sakalos.
                    and Labor-Hour
                    Contracts for
                    Commercial Items.
V................  Public Access to the      2010-016  Loeb.
                    Federal Awardee
                    Performance and
                    Integrity
                    Information System.
VI...............  Updated Financial         2010-005  Chambers.
                    Accounting Standards
                    Board Accounting
                    References.
VII..............  Technical Amendments.
------------------------------------------------------------------------


SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these FAR cases, refer to 
the specific item numbers and subject set forth in the documents 
following these item summaries. FAC 2005-55 amends the FAR as specified 
below:

Item I--Preventing Abuse of Interagency Contracts (FAR Case 2008-032)

    This rule adopts as final, with changes, an interim rule that 
implemented section 865, Preventing Abuse of Interagency Contracts, of 
the Duncan Hunter National Defense Authorization Act for Fiscal Year 
2009 (Pub. L. 110-417). This final rule further amends FAR subpart 17.5 
to make it clear that this rule only applies to interagency 
acquisitions when an agency needing supplies or services obtains them 
using another agency's contract; or when an agency uses another agency 
to provide acquisition assistance, such as awarding and administering a 
contract, a task order, or delivery order. A business case analysis 
must be developed for the establishment and renewal of governmentwide 
acquisition contracts as well as for multi-agency contracts. 
Additionally, FAR 35.017 clarifies determination requirements when 
using a Federally Funded Research and Development Center. This rule 
does not impose any information collection requirements on small 
business. There is no significant impact on small businesses because 
this rule is only applicable to internal operating procedures of the 
Government.

Item II--Transition to the System for Award Management (SAM) (FAR Case 
2011-021)

    The Integrated Acquisition Environment (IAE) systems are being 
transitioned to a new System for Award Management (SAM) architecture. 
This effort will transition the Central Contractor Registration (CCR) 
database, the Excluded Parties Listing System (EPLS), and the Online 
Representations and Certifications Application (ORCA) to SAM. The FAR 
change will indicate that these IAE systems and the Disaster Response 
Registry will now be accessed through http://www.acquisition.gov. This 
rule will not significantly affect small business, as the only impact 
on the public will be the Web site address that offerors/contractors 
will need to use.

Item III--Brand-Name Specifications (FAR Case 2005-037)

    This final rule adopts, with changes, the interim rule that amended 
the FAR to fully implement Office of Management and Budget memoranda 
and policies on the use of brand-name specifications. The final rule 
clarifies that when applicable, the documentation or justification and 
posting requirements for brand name items only apply to the portion of 
the acquisition that requires the brand name item. The final rule also 
adds a requirement to screen the brand name documentation or 
justification for contractor proprietary data. Further, the final rule 
requires the contracting officer to post the justifications for an 
order peculiar to one manufacturer under indefinite-delivery contracts. 
The rule will benefit small business entities by providing the 
opportunity for review of brand-name justification and approval 
documents for contracts and orders awarded noncompetitively, thereby 
increasing the opportunity for competition for future awards.

Item IV--Time-and-Materials and Labor-Hour Contracts for Commercial 
Items (FAR Case 2009-043)

    This final rule amends the FAR to implement recommendations from 
the Government Accountability Office to: (1) Ensure that time-and-
materials (T&M) and labor-hour (LH) contracts are used to acquire 
commercial services only when no other contract type is suitable, and 
(2) instill discipline in the determination of contract type with a 
view toward managing the risk to the Government. The requirement for a 
determination and findings when no other contract type is suitable is 
added to FAR 8.404, Use of Federal Supply Schedules. FAR 8.404 has also 
been

[[Page 183]]

amended to address increases in the order ceiling price of T&M and LH 
contracts, to more closely conform to the language at FAR 12.207. In 
addition, FAR 16.201 is modified and FAR 16.600 is added to clarify 
that T&M and LH contracts are not types of fixed-price contracts. This 
rule will not have a significant economic impact on a substantial 
number of small entities.

Item V--Public Access to the Federal Awardee Performance and Integrity 
Information System (FAR Case 2010-016)

    This rule adopts as final, with changes, an interim rule. The 
interim rule implemented section 3010 of the Supplemental 
Appropriations Act, 2010 (Pub. L. 111-212), enacted July 29, 2010. 
Section 3010 requires that the information in the Federal Awardee 
Performance and Integrity Information System (FAPIIS), excluding past 
performance reviews, shall be made publicly available. The interim rule 
notified contractors of this new statutory requirement for public 
access to FAPIIS.
    In response to public comments, the final rule allows a 14-
calendar-day delay before making the data available to the public. 
Contractors have 7 calendar days within those 14 calendar days to 
assert a disclosure exemption under the Freedom of Information Act. In 
addition, the FAPIIS system has been modified to allow more space for 
contractor comments. The rule does not impose any new requirements on 
small businesses.

Item VI--Updated Financial Accounting Standards Board Accounting 
References (FAR Case 2010-005)

    This final rule amends the FAR sections 31.205-11, 31.205-36, 
52.204-10, 52.212-5, and 52.213-4 to update references to authoritative 
accounting standards owing to the Financial Accounting Standards 
Board's Accounting Standards Codification of Generally Accepted 
Accounting Principles (``Codification of GAAP''). These revisions have 
no effect other than to simply replace the superseded references with 
updated references.

Item VII--Technical Amendments

    Editorial changes are made at FAR 4.603, 8.402, 8.405-5, 8.703, 
15.402, 15.403-1, 19.102, 19.402, 22.404-1, 22.1304, 22.1306, 23.205, 
23.401, 28.203-3, 42.203, 52.202-1, 52.212-3, 52.219-22, and 52.228-11.

    Dated: December 21, 2011.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Federal Acquisition Circular (FAC) 2005-55 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
Administration.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2005-55 is 
effective January 3, 2012, except for Items I, II, III, IV, and VI 
which are effective February 2, 2012.

    Dated: December 21, 2011.
Richard Ginman,
Director, Defense Procurement and Acquisition Policy.
    Dated: December 22, 2011.
Mindy S. Connolly,
Chief Acquisition Officer, U.S. General Services Administration.
    Dated: December 20, 2011.
William P. McNally,
Assistant Administrator for Procurement, National Aeronautics and Space 
Administration.
[FR Doc. 2011-33405 Filed 12-30-11; 8:45 am]
BILLING CODE 6820-EP-P