Federal Acquisition Regulation; Inflation Adjustment of Acquisition-Related Thresholds, 70141-70154 [2014-27512]

Download as PDF Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules In the final rules section of this Federal Register, EPA is approving TCEQ’s request for delegation of authority to implement and enforce certain NESHAP for all sources (both part 70 and nonpart 70 sources). TCEQ has adopted certain NESHAP by reference into Texas’s state regulations. In addition, EPA is waiving its notification requirements so sources will only need to send notifications and reports to TCEQ. The EPA is taking direct final action without prior proposal because EPA views this as a noncontroversial action and anticipates no adverse comments. A detailed rationale for this proposed approval is set forth in the preamble to the direct final rule. If no adverse comments are received in response to this action, no further activity is contemplated. If EPA receives adverse comments, the direct final rule will be withdrawn, and all public comments received will be addressed in a subsequent final rule based on this proposed rule. EPA will not institute a second comment period. Any parties interested in commenting must do so at this time. If EPA receives adverse comment on an amendment, paragraph, or section of this rule and if that provision may be severed from the remainder of the rule, EPA may adopt as final those provisions of the rule that are not the subject of an adverse comment. For additional information, see the direct final rule which is located in the Rules section of this Federal Register. SUPPLEMENTARY INFORMATION: Dated: November 12, 2014. Bill Luthans, Acting Director, Multimedia Planning and Permitting Division, Region 6. [FR Doc. 2014–27910 Filed 11–24–14; 8:45 am] wreier-aviles on DSK4TPTVN1PROD with PROPOSALS BILLING CODE 6560–50–P VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 50, 52, and 53 [FAR Case 2014–022; Docket No. 2014– 0022; Sequence No. 1] RIN 9000–AM80 Federal Acquisition Regulation; Inflation Adjustment of AcquisitionRelated Thresholds Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule. AGENCY: DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to further implement the inflation adjustment of acquisition-related dollar thresholds. A statute requires an adjustment every five years of acquisition-related thresholds for inflation using the Consumer Price Index for all urban consumers, except for the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds. DoD, GSA, and NASA are also proposing to use the same methodology to adjust nonstatutory FAR acquisition-related thresholds in 2015. DATES: Interested parties should submit written comments to the Regulatory Secretariat at one of the addresses shown below on or before January 26, 2015 to be considered in the formation of the final rule. ADDRESSES: Submit comments in response to FAR Case 2014–022 by any of the following methods: • Regulations.gov: https:// www.regulations.gov. Submit comments via the Federal eRulemaking portal by searching for ‘‘FAR Case 2014–022’’. Select the link ‘‘Comment Now’’ that corresponds with ‘‘FAR Case 2014– 022.’’ Follow the instructions provided at the ‘‘Comment Now’’ screen. Please include your name, company name (if any), and ‘‘FAR Case 2014–022’’ on your attached document. • Fax: 202–501–4067. • Mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405. SUMMARY: PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 70141 Instructions: Please submit comments only and cite FAR Case 2014–022, in all correspondence related to this case. All comments received will be posted without change to https:// www.regulations.gov, including any personal and/or business confidential information provided. FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement Analyst, at 202–208–4949, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202–501–4755. Please cite FAR Case 2014–022. SUPPLEMENTARY INFORMATION: I. Background This rule proposes to amend multiple FAR parts to further implement 41 U.S.C. 1908. Section 1908 requires an adjustment every five years (on October 1 of each year evenly divisible by five) of statutory acquisition-related thresholds for inflation, using the Consumer Price Index (CPI) for all urban consumers, except for the Construction Wage Rate Requirements statute (DavisBacon Act), Service Contract Labor Standards statute, and trade agreements thresholds (see FAR 1.109). As a matter of policy, DoD, GSA, and NASA are also proposing to use the same methodology to adjust nonstatutory FAR acquisitionrelated thresholds on October 1, 2015. This is the third review of FAR acquisition-related thresholds since the statute was passed on October 28, 2004 (section 807 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year (FY) 2005). The last review was conducted under FAR Case 2008– 024 during FY 2010. The final rule was published in the Federal Register at 75 FR 53129 on August 30, 2010, and was effective October 1, 2010. II. Analysis. A. What is an acquisition-related threshold? This case builds on the review of FAR thresholds in FY 2005 and FY 2010, using the same interpretation of an acquisition-related threshold. 41 U.S.C. 1908 is applicable to ‘‘a dollar threshold that is specified in law 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 the FAR Council determines.’’ There are other thresholds in the FAR that, while not specified in law, nevertheless meet all the other criteria. These thresholds may have their origin in Executive order or regulation. E:\FR\FM\25NOP1.SGM 25NOP1 70142 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules Therefore, the FAR Council has determined, that in this case, ‘‘acquisition-related threshold’’ has a broader meaning, i.e., a threshold that is specified in law, Executive order, or regulation as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law, Executive order, or regulation to the procurement of property or services by an Executive agency. DoD, GSA, and NASA conclude that acquisition-related thresholds are generally tied to the value of a contract, subcontract, or modification. Examples of thresholds that are not ‘‘acquisition-related,’’ as defined in this case, are thresholds relating to claims, penalties, withholding, payments, required levels of insurance, small business size standards, liquidated damages, etc. This rule does not address thresholds that are not acquisitionrelated. wreier-aviles on DSK4TPTVN1PROD with PROPOSALS B. What acquisition-related thresholds are not subject to escalation adjustment under this case? 41 U.S.C. 1908 does not permit escalation of acquisition-related thresholds established by the Construction Wage Rate Requirements statute (Davis Bacon Act), the Service Contract Labor Standards statute, or the United States Trade Representative pursuant to the authority of the Trade Agreements Act of 1979. Also, the statute does not authorize the FAR to escalate thresholds originating in Executive order or the implementing agency (such as the Department of Labor or the Small Business Administration), unless the Executive order or agency regulations are first amended. C. How do the Defense Acquisition Regulations Council and the Civilian Agency Acquisition Council (the Councils) analyze a statutory acquisition-related threshold? If an acquisition-related threshold is based on statute, the matrix at https:// acquisition.gov/far/facsframe.html identifies the statute and the statutory threshold, including the original threshold and any FAR revisions. With the exception of thresholds set by the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and the United States Trade Representative pursuant to the authority of the Trade Agreements Act of 1979, 41 U.S.C. 1908 requires that the FAR Council adjust the acquisition-related thresholds for inflation using the CPI for all urban consumers. Acquisitionrelated thresholds in statutes that were VerDate Sep<11>2014 17:35 Nov 24, 2014 Jkt 235001 in effect on October 1, 2000, are only subject to escalation from that date forward. For purposes of this proposed rule, the matrix includes calculation of escalation based on the estimated CPI value for March 2015 (currently estimated at 243.0) divided by the CPI for the date of enactment of the statute or regulation (October 2000, for statutes enacted prior to October 1, 2000). The Councils will subsequently adjust as necessary before issuance of the final rule. Once the escalation factor is applied to the acquisition-related threshold, then the threshold must be rounded as follows: <$10,000 ........................ $10,000–<$100,000 ....... $100,000–<$1,000,000 .. $1,000,000 or more ....... Nearest Nearest Nearest Nearest $500. $5,000. $50,000. $500,000. The calculations in this proposed rule are all based on the base year amount, because escalated amounts in the 2010 rule were subject to rounding and using those amounts as the base would distort future calculations. In 2010, some thresholds (e.g., $3,000), although subject to inflation calculation, did not actually change, because the inflation in 2010 was insufficient to overcome the rounding requirements i.e., the escalation factor, when applied, did not cause the escalated values to be high enough to round to the next higher value. However, in FY 2015, thresholds that did not escalate in 2010 will now escalate because of five additional years of inflation. Likewise, some thresholds that were escalated in 2010 (e.g., $150,000) will not escalate in 2015. The thresholds for defining a major system were previously stated in FY 1990 constant dollars for DoD and in FY 1980 constant dollars for civilian agencies. The 2005 rule converted the base year for these major system thresholds to 2004 dollars, that were then adjusted in October 2005 and also adjusted in October 2010. Although the FAR will continue to escalate the major systems threshold for the civilian agencies, DoD has determined that for DoD, the major systems thresholds in the FAR must be consistent with the major systems thresholds in DoD Instruction 5000.02, established in accordance with the authority in 10 U.S.C. 2302d(c)(1). This allows the Secretary of Defense to adjust the amounts (and the base fiscal year) provided in subsection (a) on the basis of DoD escalation rates (rather than the CPI for all urban consumers). The revised figures were calculated by the DoD Comptroller, and coordinated with PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 the Cost Assessment and Program Evaluation (CAPE) Office and the DoD General Counsel. In accordance with 10 U.S.C. 2302d(c)(3), DoD reported these thresholds to Congress in December 2013. This proposed 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. As appropriate, any changes to cost accounting standards (CAS) thresholds will be coordinated with the CAS Board and addressed under a separate case. D. How do the Councils analyze a nonstatutory acquisition-related threshold? No statutory authorization is required to escalate thresholds that are policybased within the FAR. For consistency, escalation of the FAR policy acquisition-related thresholds is recommended using the same formula applied to the statutory thresholds, unless there is a valid reason for not doing so. E. What is the effect of this proposed rule on the most heavily-used thresholds? This rule includes the following proposed changes to heavily-used thresholds: • The micro-purchase threshold of $3,000 (FAR 2.101) will increase to $3,500. The Title 41 recodification (Pub. L. 111–350, enacted January 4, 2011) relocated the micro-purchase authorization to 41 U.S.C. 1902, and raised the micro-purchase threshold to $3,000 (equivalent to the escalated value in the FAR). However, as Congress stated in House Report 111–42, the recodification statute did not intend to make any substantive changes, therefore the inflation calculation will continue to be calculated based on the October 2000 amount of $2,500, not the January 2011 value of $3,000. • The simplified acquisition threshold (FAR 2.101) of $150,000 will not change. • 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) will increase from $6.5 million to $7 million. • The cost or pricing data threshold (FAR 15.403–4) will increase from $700,000 to $750,000. • The prime contractor subcontracting plan (FAR 19.702) floor will increase from $650,000 to $700,000, E:\FR\FM\25NOP1.SGM 25NOP1 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules but the construction threshold of $1.5 million will not change. • The threshold for reporting first-tier subcontract information including executive compensation will increase from $25,000 to $30,000 (FAR subpart 4.14 and section 52.204–10). This proposed rule is based on a projected CPI of 243 for March 2015. If the actual CPI for March 2015 is higher than 243, then additional statutory thresholds may be subject to escalation in the final rule, even though not included in the proposed rule. F. Other Changes in the Rule • FAR 12.102(g) is being deleted as obsolete. • The $30,000 threshold at FAR 13.106–2(c)(2) and (d) returns to $25,000 to harmonize with the 5.101(a)(1) threshold for synopsizing preaward notices in FedBizOpps. III. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. wreier-aviles on DSK4TPTVN1PROD with PROPOSALS IV. Regulatory Flexibility Act DoD, GSA, and NASA do not expect this rule to 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 rule maintains the status quo by adjusting thresholds for actual inflationary increases in the CPI. However, an Initial Regulatory Flexibility Analysis has been performed and is summarized as follows: This rule will amend the Federal Acquisition Regulation to implement 41 U.S.C. 1908 and to amend other acquisitionrelated dollar thresholds that are based on policy rather than statute in order to adjust for the changing value of the dollar. 41 U.S.C. 1908 requires adjustment every five years of statutory acquisition-related dollar thresholds, except for Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds. While VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 reviewing all statutory acquisition-related thresholds, this case presented an opportunity to also review all nonstatutory acquisition-related thresholds in the FAR that are based on policy. The objective of the case is to maintain the status quo, by adjusting acquisition-related thresholds for inflation. The legal basis is 41 U.S.C. 1908. The statute does not authorize the FAR to escalate thresholds originating in Executive orders or the implementing agency (such as the Department of Labor or the Small Business Administration), unless the Executive order or agency regulations are first amended. This rule will have a minimal impact on small business concerns that submit offers or are awarded contracts by the Federal Government. However, most of the threshold changes proposed in this rule are not expected to have any significant economic impact on small business concerns because the threshold changes are intended to maintain the status quo by adjusting for changes in the value of the dollar. Often any impact will be beneficial, by preventing burdensome requirements from applying to more and more acquisitions, as the dollar loses value. One threshold change in this rule which may temporarily impact small business concerns is the increase in the micropurchase threshold (FAR 2.101) from $3,000 to $3,500. This will temporarily narrow the dollar range within which acquisitions are automatically set aside for small business concerns, because the simplified acquisition threshold of $150,000 will not increase at this time. To assess the impact of the increase in the micro-purchase threshold from $3,000 to $3,500, data was requested from FPDS– NG. For FY 2013, there were 83,951 contracts and calls/orders between $3,000 and $3,500, with a value of $272,567,926. Of these actions, 34,828 (value of $113,280,333) were awarded to small business concerns. DoD, GSA, and NASA expect that many of these awards will still go to small business concerns, even if there is no longer a requirement to automatically set the procurement aside for small business concerns. The rule does not impose any new reporting, recordkeeping, or compliance requirements. Changes in thresholds for approved information collection requirements are intended to maintain the status quo and prevent those requirements from increasing over time. The rule does not duplicate, overlap, or conflict with any other Federal rules. There are no practical alternatives that will accomplish the objectives of the statute. The Regulatory Secretariat has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities. DoD, GSA, and NASA will also consider comments from small entities PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 70143 concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2014–022), in correspondence. V. Paperwork Reduction Act The Paperwork Reduction Act does apply. The proposed changes to the FAR do not impose new information collection requirements that require the approval of the Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq. By adjusting the thresholds for inflation, the status quo for the current information collection requirements are maintained under the following OMB clearance numbers: 9000–0006, titled: Subcontracting Plans/ Individual Subcontract Report (SF 294); 9000–0007, titled: Summary Subcontract Report; 9000–0094, titled: Debarment and Suspension; 9000–0164, titled: Contractor Business Ethics Compliance Program and Disclosure Requirements; 9000–0177, titled: Reporting Executive Compensation and First-tier Subcontract Awards; 1250– 0004, titled: OFCCP Recordkeeping and Reporting Requirements—38 U.S.C. 4212, Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended; and 1293–0005, titled: Federal Contractor Veterans Employment Report, VETS–100/VETS– 100A. List of Subjects in 48 CFR Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 50, 52, and 53 Government procurement. Dated: November 13, 2014. William Clark, Acting Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 50, 52, and 53 as set forth below: ■ 1. The authority citation for 48 CFR parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 50, 52, and 53 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM 1.109 [Amended] 2. Amend section 1.109 by removing from paragraph (d) ‘‘FAR Case 2008– 024’’ and adding ‘‘FAR Case 2014–022’’ in its place. ■ E:\FR\FM\25NOP1.SGM 25NOP1 70144 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules 4.1401 PART 2—DEFINITIONS OF WORDS AND TERMS 3. Amend section 2.101, in paragraph (b)(2) by: ■ a. Revising paragraph (1) of the definition ‘‘Major System’’; ■ b. In the definition ‘‘Micro-purchase threshold’’ by removing from the introductory text ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place, and removing from paragraph (3)(i) ‘‘$15,000’’ and adding ‘‘$20,000’’ in its place; ■ c. In the definition ‘‘Simplified acquisition threshold’’ by removing from the introductory text ‘‘$150,000,’’ and adding ‘‘$150,000 (41 U.S.C. 134),’’ in its place; removing from paragraph (1) ‘‘$300,000’’ and adding ‘‘$350,000’’ in its place; and removing from paragraph (2) ‘‘$1 million’’ and adding ‘‘$1.5 million’’ in its place; and ■ d. In the definition ‘‘Small business subcontractor’’ by removing from paragraphs (1) and (2) ‘‘$10,000’’ and adding ‘‘$15,000’’ in their places. The revised text reads as follows: ■ 2.101 Definitions. * * * * * (b) * * * (2) * * * Major system * * * (1) The Department of Defense is responsible for the system and the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $185 million based on Fiscal Year 2014 constant dollars or the eventual total expenditure for the acquisition exceeds $835 million based on Fiscal Year 2014 constant dollars (or any update of these thresholds based on a more recent fiscal year, as specified in the DoD Instruction 5000.02, ‘‘Operation of the Defense Acquisition System’’); * * * * * PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 3.1004 [Amended] 4. Amend section 3.1004 by removing from paragraphs (a), (b)(1)(i), and (b)(3) ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ in their places. ■ wreier-aviles on DSK4TPTVN1PROD with PROPOSALS PART 4—ADMINISTRATIVE MATTERS 4.605 [Amended] 5. Amend section 4.605 by removing from paragraphs (c)(2)(i) and (ii) ‘‘$25,000’’ and adding $30,000’’ in their places. ■ 4.1102 [Amended] 6. Amend section 4.1102 by removing from paragraph (a)(6) ‘‘$25,000’’ and adding ‘‘$30,000’’ in its place. ■ VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 [Amended] 4.1403 Contract clause. (a) Except as provided in paragraph (b) of this section, the contracting officer shall insert the clause at 52.204–10, Reporting Executive Compensation and First-Tier Subcontract Awards, in all solicitations and contracts of $30,000 or more. * * * * * [Amended] 9. Amend section 6.204 by removing from paragraph (b) ‘‘$20 million’’ and adding ‘‘$22.5 million’’ in its place. [Amended] 10. Amend section 6.302–5 by removing from paragraphs (b)(4) and (c)(2)(iii) ‘‘$20 million’’ and adding ‘‘$22.5 million’’ in their places. ■ 6.303–1 [Amended] 11. Amend section 6.303–1 by removing from paragraph (b), introductory text, ‘‘$20 million’’ and adding ‘‘$22.5 million’’ in its place. ■ 6.303–2 [Amended] 12. Amend section 6.303–2 by removing from the introductory text of paragraphs (b) and (d) ‘‘$20 million’’ and adding ‘‘$22.5 million’’ in their places. ■ 6.304 [Amended] 15. Amend section 7.107 by removing from paragraph (b)(1) ‘‘$94 million’’ and adding ‘‘$104.5 million’’ in its place; and removing from paragraph (b)(2) ‘‘$9.4 million’’ and ‘‘$94 million’’ and adding ‘‘$10.45 million’’ and ‘‘$104.5 million’’ in their places, respectively. ■ PART 8—REQUIRED SOURCES OF SUPPLIES AND SERVICES 8.404 [Amended] 16. Amend section 8.404 by removing from paragraph (b)(2) ‘‘$500,000’’ and adding ‘‘$550,000’’ in its place. ■ 6.302–5 7.107 ■ PART 6—COMPETITION REQUIREMENTS 6.204 b. Removing from paragraph (d)(2)(i)(B) ‘‘$6 million’’ and adding ‘‘$6.5 million’’ in its place. ■ 7. Amend section 4.1401 by removing from paragraph (a) ‘‘$25,000’’ and adding ‘‘$30,000’’ in its place. ■ 8. Amend section 4.1403 by revising paragraph (a) to read as follows: ■ [Amended] 13. Amend section 6.304 by: a. Removing from paragraph (a)(1) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place; ■ b. Removing from paragraph (a)(2) ‘‘$650,000’’ and ‘‘$12.5 million’’ and adding ‘‘$700,000’’ and ‘‘$14 million’’ in their places, respectively; ■ c. Removing from the introductory text of paragraph (a)(3) ‘‘$12.5 million’’, ‘‘$62.5 million’’, and ‘‘85.5 million’’ and adding ‘‘$14 million’’, ‘‘$70 million’’, and ‘‘$95.5 million’’ in their places, respectively; and ■ d. Removing from paragraph (a)(4) ‘‘$62.5 million’’ and ‘‘$85.5 million’’ and adding ‘‘$70 million’’ and ‘‘$95.5 million’’ in their places, respectively. ■ ■ 8.405–3 [Amended] 17. Amend section 8.405–3 by a. Removing from paragraphs (a)(3)(ii) and (iii) ‘‘$103 million’’ and adding ‘‘$115 million’’ in their places; and ■ b. Revising paragraph (a)(7)(v). The revision reads as follows: (a) * * * (7) * * * (v) Determination for a single-award BPA exceeding $115 million, if applicable (see paragraph (a)(3)(ii) of this section); ■ ■ 8.405–6 [Amended] 18. Amend section 8.405–6 by: a. Removing from paragraph (d)(1) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place; ■ b. Removing from paragraph (d)(2) ‘‘$650,000’’ and ‘‘$12.5 million’’ and adding ‘‘$700,000’’ and ‘‘$14 million’’ in their places, respectively; ■ c. Removing from the introductory text of paragraph (d)(3) ‘‘$12.5 million’’, ‘‘$62.5 million’’, and ‘‘$85.5 million’’, and adding ‘‘$14 million’’, ‘‘$70 million’’ and ‘‘$95.5 million’’ in their places, respectively; and ■ d. Removing from paragraph (d)(4) ‘‘$62.5 million’’ and ‘‘$85.5 million’’ and adding ‘‘$70 million’’ and ‘‘$95.5 million’’ in their places, respectively. ■ ■ PART 9—CONTRACTOR QUALIFICATIONS 9.104–5 [Amended] PART 7—ACQUISITION PLANNING 19. Amend section 9.104–5 by removing from paragraph (a)(2) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. 7.104 9.104–7 [Amended] 14. Amend section 7.104 by: a. Removing from paragraph (d)(2)(i)(A) ‘‘$8 million’’ and adding ‘‘$9 million’’ in its place; and ■ ■ PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 ■ [Amended] 20. Amend section 9.104–7 by removing from paragraphs (b) and (c)(1) ‘‘$500,000’’ and adding ‘‘$550,000’’ in their places. ■ E:\FR\FM\25NOP1.SGM 25NOP1 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules 9.405–2 [Amended] 21. Amend section 9.405–2 by removing from paragraph (b) ‘‘$30,000’’ and adding ‘‘$35,000’’ in their places (twice). ■ 9.406–2 [Amended] 13.005 22. Amend section 9.406–2 by removing from paragraph (b)(1)(v) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. ■ 9.407–2 [Amended] 31. Amend section 13.005 by removing from paragraph (a)(2) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. ■ [Amended] 13.106–1 23. Amend section 9.407–2 by removing from paragraph (a)(7) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. ■ 9.409 adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively; and ■ c. Removing from paragraph (g)(2) ‘‘$6.5 million’’ and ‘‘$12 million’’ and adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively. [Amended] 32. Amend section 13.106–1 by removing from paragraphs (c)(2) and (d) ‘‘$30,000’’ and adding ‘‘$25,000’’ in their places. ■ [Amended] 24. Amend section 9.409 by removing ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. ■ 13.201 [Amended] PART 10—MARKET RESEARCH 33. Amend section 13.201 by removing from paragraph (g)(1)(i) ‘‘$15,000’’ and adding ‘‘$20,000’’ in its place. 10.001 13.303–5 [Amended] 25. Amend section 10.001 by removing from paragraph (d) ‘‘$5 million’’ and adding ‘‘$6 million’’ in its place. ■ 10.003 [Amended] 26. Amend section 10.003 by removing ‘‘$5 million’’ and adding ‘‘$6 million’’ in its place. ■ PART 12—ACQUISITION OF COMMERCIAL ITEMS 12.102 [Amended] 28. Amend section 12.203 by removing ‘‘$6.5 million’’ and ‘‘$12 million’’ and adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively. ■ [Amended] 29. Amend section 13.000 by removing ‘‘$6.5 million’’ and ‘‘$12 million’’ and adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively. wreier-aviles on DSK4TPTVN1PROD with PROPOSALS ■ [Amended] 30. Amend section 13.003 by: a. Removing from paragraph (b)(1) ‘‘$3,000’’, ‘‘$15,000’’, and ‘‘$300,000’’ and adding ‘‘$3,500’’, ‘‘$20,000’’ and ‘‘$350,000’’ in their places, respectively; ■ b. Removing from paragraph (c)(1)(ii) ‘‘$6.5 million’’ and ‘‘$12 million’’ and ■ ■ VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 [Amended] 36. Amend section 13.500 by— a. Removing from paragraph (a) ‘‘$6.5 million’’ and ‘‘$12 million’’ and adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively; and ■ b. Removing from the introductory text of paragraph (e) ‘‘$12 million’’ and adding ‘‘$13 million’’ in its place. ■ ■ 13.501 PART 13—SIMPLIFIED ACQUISITION PROCEDURES 13.003 35. Amend section 13.402 by removing from paragraph (a) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. 13.500 [Amended] 37. Amend section 13.501 by: a. Removing from paragraph (a)(2)(i) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place; ■ b. Removing from paragraph (a)(2)(ii) ’’$650,000’’ and ‘‘$12.5 million’’ and adding ‘‘$700,000’’ and ‘‘$14 million’’ in their places, respectively; ■ c. Removing from paragraph (a)(2)(iii) ‘‘$12.5 million’’, ‘‘$62.5 million’’, and ‘‘$85.5 million’’ and adding ‘‘$14 million’’, ‘‘$70 million’’, and ‘‘$95.5 million’’ in their places, respectively; and ■ d. Removing from paragraph (a)(2)(iv) ‘‘$62.5 million’’ and ‘‘$85.5 million’’ and adding ‘‘$70 million’’ and ‘‘$95.5 million’’ in their places, respectively. ■ ■ PO 00000 Frm 00025 Fmt 4702 PART 15—CONTRACTING BY NEGOTIATION 15.403–1 [Amended] 38. Amend section 15.403–1 by removing from paragraph (c)(3)(iv) ‘‘$17.5 million’’ and adding ‘‘$20 million’’ in its place. ■ 15.403–4 [Amended] 39. Amend section 15.403–4 by removing from the introductory text of paragraph (a)(1) and paragraph (a)(1)(iii) ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place. ■ 15.404–3 [Amended] 40. Amend section 15.404–3 by removing from paragraph (c)(1)(i) ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in its place. ■ 15.407–2 [Amended] 41. Amend section 15.407–2 by removing from paragraph (c)(1) and the introductory text of paragraph (c)(2) ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in their places. ■ 15.408 [Amended] 42. Amend section 15.408 in Table 15–2, ‘‘II. Cost Elements’’ which follows paragraph (n)(2)(iii), by removing from paragraph ‘‘A(2)’’ ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in its place. ■ PART 16—TYPES OF CONTRACTS [Amended] ■ [Amended] 27. Amend section 12.102 by removing from the introductory text of paragraph (f)(2) ‘‘$17.5 million’’ and adding ‘‘$20 million’’ in its place; and removing paragraph (g). 13.000 [Amended] 34. Amend section 13.303–5 by: a. Removing from paragraph (b)(1) ‘‘$6.5 million’’ and ‘‘$12 million’’ and adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively; and ■ b. Removing from paragraph (b)(2) ‘‘$6.5 million’’ and ‘‘$12 million’’ and adding ‘‘$7 million’’ and ‘‘$13 million’’ in their places, respectively. ■ ■ 13.402 ■ 12.203 ■ 70145 Sfmt 4702 16.503 [Amended] 43. Amend section 16.503 by removing from paragraph (b)(2) ‘‘$103 million’’ and adding ‘‘$115 million’’ in its place; and removing from paragraph (d)(1) ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in its place. ■ 16.504 [Amended] 44. Amend section 16.504 by: a. Removing from the introductory text of paragraph (c)(1)(ii)(D)(1) ‘‘$103 million’’ and adding ‘‘$115 million’’ in its place; ■ b. Removing from the introductory text of paragraph (c)(1)(ii)(D)(3) ‘‘$103 million’’ and adding ‘‘$115 million’’ in its place; and removing from the end of the paragraph the colon and adding an em dash in its place; ■ c. Removing from the end of paragraph (c)(1)(ii)(D)(3)(i) the period and adding ‘‘; and’’ in its place; and ■ d. Removing from the introductory text of paragraph (c)(2)(i) ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in its place. ■ ■ 16.505 [Amended] 45. Amend section 16.505 by: a. Removing from the introductory text of paragraph (a)(4)(iii)(A) ‘‘$25,000’’ and adding ‘‘$30,000’’ in its place; ■ ■ E:\FR\FM\25NOP1.SGM 25NOP1 70146 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules b. Removing from paragraph (b)(1)(i) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place; ■ c. Removing from the paragraph (b)(1)(iv) ‘‘$5 million’’ and ‘‘$5 million’’ and adding ‘‘$5.5 million’’ and ‘‘$5.5 million’’ in their places, respectively; ■ d. Removing from paragraph (b)(2)(i) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place; ■ e. Removing from the heading of paragraph (b)(2)(ii)(A) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place; ■ f. Removing from the paragraph (b)(2)(ii)(C)(1) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place; ■ g. Removing from paragraph (b)(2)(ii)(C)(2) ‘‘$650,000’’ and ‘‘$12.5 million’’ and adding ‘‘$700,000’’ and ‘‘14 million’’ in their places, respectively; ■ h. Removing from paragraph (b)(2)(ii)(C)(3) ‘‘$12.5 million’’, ‘‘$62.5 million’’, and ‘‘$85.5 million’’ and adding ‘‘14 million’’, ‘‘70 million’’, and ‘‘95.5 million’’ in their places, respectively; ■ i. Removing from paragraph (b)(2)(ii)(C)(4) ‘‘$62.5 million’’ and ‘‘$85.5 million’’ and adding ‘‘70 million’’ and ‘‘95.5 million’’ in their places, respectively; and ■ j. Removing from the heading of paragraph (b)(6) ‘‘$5 million’’ and adding ‘‘$5.5 million’’ in its place; and removing from the introductory text ‘‘$5 million’’ and adding ‘‘$5.5 million’’ in its place. ■ 16.506 [Amended] 46. Amend section 16.506 by removing from paragraphs (f) and (g) ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in their places; and removing from paragraph (h) ‘‘$5 million’’ and adding ‘‘$6 million’’ in its place. ■ ‘‘$15,000’’, and ‘‘$300,000’’ and adding ‘‘$3,500’’, ‘‘$20,000’’, and ‘‘$350,000’’ in their places, respectively. 19.502–1 19.502–2 51. Amend section 19.502–2 by: ■ a. Removing from paragraph (a) ‘‘$3,000’’, ‘‘$15,000’’, and ‘‘$300,000’’ and adding ‘‘$3,500’’, ‘‘$20,000’’, and ‘‘$350,000’’ in their places, respectively; and ■ b. Removing from the end of paragraph (b) ‘‘that:’’ and adding ‘‘that—’’ in its place. 17.500 [Amended] 48. Amend section 17.500 by removing from paragraph (c)(2) ‘‘$500,000’’ and adding ‘‘$550,000’’ in its place. ■ [Amended] 49. Amend section 19.203 by removing from paragraph (b) ‘‘$3,000’’, ■ VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 22.1310 [Amended] 61. Amend section 22.1310 by removing from paragraph (a)(1) ‘‘$100,000’’ and adding ‘‘$150,000’’ in its place. ■ PART 25—FOREIGN ACQUISITION [Amended] 62. Amend section 25.703–2 by removing from paragraph (a)(2) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. 25.703–4 [Amended] [Amended] 63. Amend section 25.703–4 by removing from paragraphs (c)(5)(ii), (c)(7)(iii), and (c)(8)(iii) ‘‘$3,000’’ and adding ‘‘$3,500’’ in their places. 53. Amend section 19.704 by removing from paragraph (a)(9) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place. ■ 19.708 PART 26—OTHER SOCIOECONOMIC PROGRAMS ■ [Amended] 54. Amend section 19.708 by removing from paragraph (b)(1) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place. ■ 19.805–1 [Amended] 55. Amend section 19.805–1 by removing from paragraph (a)(2) ‘‘$6.5 million’’ and adding ‘‘$7 million’’ in its place. ■ [Amended] 56. Amend section 19.808–1 by removing from paragraph (a) ‘‘$20 million’’ and adding ‘‘$22.5 million’’ in its place. 19.1306 [Amended] 57. Amend section 19.1306 by removing from paragraph (a)(2)(i) ‘‘$6.5 million’’ and adding ‘‘$7 million’’ in its place. ■ 58. Amend section 19.1406 by removing from paragraph (a)(2)(i) ‘‘$6 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. PO 00000 26.404 [Amended] 64. Amend section 26.404 by removing ‘‘$25,000’’ and adding ‘‘$30,000’’ in its place. ■ PART 28—BONDS AND INSURANCE 28.102–1 [Amended] 65. Amend section 28.102–1 by removing from paragraph (b)(1) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. ■ 28.102–2 [Amended] 66. Amend section 28.102–2 by removing from paragraph (c) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. ■ 28.102–3 [Amended] 67. Amend section 28.102–3 by removing from paragraph (b) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. ■ [Amended] ■ 19.203 60. Amend section 22.1303 by removing from paragraphs (a) and (c) ‘‘$100,000’’ and adding ‘‘$150,000’’ in their places. 19.704 19.1406 PART 19—SMALL BUSINESS PROGRAMS [Amended] ■ ■ 47. Amend section 17.108 by removing from paragraph (a) ‘‘$12.5 million’’ and adding ‘‘$14 million’’ in its place; and removing from paragraph (b) ‘‘$125 million’’ and adding ‘‘$139.5 million’’ in its place. 22.1303 25.703–2 [Amended] 19.808–1 ■ 59. Amend section 22.1103 by removing ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place. 52. Amend section 19.702 by removing from paragraphs (a)(1) and (2) ‘‘$650,000’’ and adding ‘‘$700,000’’ in their places. ■ 17.108 [Amended] [Amended] ■ [Amended] ■ 19.702 22.1103 ■ 50. Amend section 19.502–1 by removing from paragraph (b) ‘‘$3,000’’ and ‘‘$15,000’’ and adding ‘‘$3,500’’ and ‘‘$20,000’’ in their places, respectively. ■ PART 17—SPECIAL CONTRACTING METHODS wreier-aviles on DSK4TPTVN1PROD with PROPOSALS [Amended] PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT Frm 00026 Fmt 4702 Sfmt 4702 PART 32—CONTRACT FINANCING 32.104 [Amended] 68. Amend section 32.104 by removing from paragraphs (d)(2)(i) and (ii) ‘‘$2.5 million’’ and adding ‘‘$3 million’’ in their places. ■ E:\FR\FM\25NOP1.SGM 25NOP1 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules from paragraphs (d)(2) and (3) ‘‘$25,000’’ and adding ‘‘$30,000’’ in their places; and revising paragraph (e). The revised text reads as follows: PART 42—CONTRACT ADMINISTRATION AND AUDIT SERVICES 42.709 [Amended] 69. Amend section 42.709 by removing from paragraph (b) ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place. 52.204–10 Reporting Executive Compensation and First-Tier Subcontract Awards. 42.709–6 Reporting Executive Compensation and First-Tier Subcontract Awards (Date) ■ * [Amended] 70. Amend section 42.709–6 by removing ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place. ■ * * * * 52.212–3 Offeror Representations and Certifications—Commercial Items. * * * * * Offeror Representations and Certifications—Commercial Items (Date) * * * * * 81. Amend section 52.212–5 by— a. Revising the date of the clause; b. Revising paragraphs (b)(2), (b)(4), (b)(8), (b)(17)(i), adding paragraph (b)(17)(iv), and revising paragraphs (b)(29), (b)(31), and (b)(33); ■ c. Revising paragraph (c)(8); ■ d. Revising paragraph (e)(1)(i); ■ e. Removing from paragraph (e)(1)(ii) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place; ■ f. Revising paragraphs (e)(1)(v), (vii), (xiii), and (xv); and ■ g. Amending Alternate II by revising the date of Alternate II and paragraphs (e)(1)(ii)(A), (C), (E), (L) and (M). The revisions read as follows: ■ ■ ■ PART 50—EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT * * * * (e) The Contractor shall not split or break down first-tier subcontract awards to a value less than $30,000 to avoid the reporting requirements in paragraph (d) of this clause. * * * * * ■ 77. Amend section 52.209–5 by revising the date of the provision; and removing from paragraph (a)(1)(i)(D) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. The revised text reads as follows: 50.102–1 52.209–5 Certification Regarding Responsibility Matters. * 52.212–5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items. * 42.1502 * 70147 [Amended] 71. Amend section 42.1502 by removing from paragraph (e) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place (twice); and removing from paragraph (f) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place (twice). ■ [Amended] 72. Amend section 50.102–1 by removing from paragraph (b) ‘‘$65,000’’ and adding ‘‘$70,000’’ in its place. ■ 50.102–3 [Amended] * * * * Certification Regarding Responsibility Matters (Date) 73. Amend section 50.102–3 by removing from paragraph (b)(4) ‘‘$31.5 million’’ and adding ‘‘$35 million’’ in its place; and removing from paragraphs (e)(1)(i) and (ii) ‘‘$65,000’’ and adding ‘‘$70,000’’ in their places. * PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 52.209–6 Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. ■ 74. Amend section 52.203–13 by revising the date of clause; and removing from paragraph (d)(1) ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ in its place. The revised text reads as follows: ■ * * * wreier-aviles on DSK4TPTVN1PROD with PROPOSALS * * * * * ■ 75. Amend section 52.203–14 by revising the date of the clause; and removing from the introductory text of paragraph (d) ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ in its place. The revised text reads as follows: 52.203–14 * * * Display of Hotline Poster(s) (Date) * * * * * 76. Amend section 52.204–10 by revising the date of the clause; removing ■ VerDate Sep<11>2014 14:26 Nov 24, 2014 * * * Jkt 235001 * * * * * (b) * * * * * l(2) 52.203–13, Contractor Code of Business Ethics and Conduct (Date) (41 U.S.C. 3509). * * * * * l(4) 52.204–10, Reporting Executive Compensation and First-Tier Subcontract Awards (Date) (Pub. L. 109–282) (31 U.S.C. 6101 note). * * * * * Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment (Date) l(8) 52.209–6, Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. (Date) (31 U.S.C. 6101 note). * * * * * * * * * * * * * 79. Amend section 52.212–1 by revising the date of the provision; and removing from paragraph (j) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place (twice). The revised text reads as follows: * * * * (iv) Alternate III (Date) of 52.219–9. * * * * * * * 52.212–1 Instructions to Offerors— Commercial Items. * l(17)(i) 52.219–9, Small Business Subcontracting Plan (Date) (15 U.S.C. 637(d)(4)). * * * * * * * * * * * * * * l(29) 52.222–35, Equal Opportunity for Veterans (Date) (38 U.S.C. 4212). Instructions to Offerors—Commercial Items (Date) l(31) 52.222–37, Employment Reports on Veterans (Date) (38 U.S.C. 4212). * Display of Hotline Poster(s). * * ■ * Contractor Code of Business Ethics and Conduct (Date) * * * * 52.203–13 Contractor Code of Business Ethics and Conduct * * * * * 78. Amend section 52.209–6 by revising the date of the clause; and removing from paragraphs (b), (c), and (e)(1) ‘‘$30,000’’ and adding ‘‘$35,000’’ in their places. The revised text reads as follows: ■ * Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items (Date) l(33) 52.222–54, Employment Eligibility Verification (Date). (Executive Order 12989). (Not applicable to the acquisition of commercially available off-the-shelf items or certain other types of commercial items as prescribed in 22.1803.) * * * * ■ 80. Amend section 52.212–3 by revising the date of the provision; and removing from paragraphs (h)(4) and (o)(2)(iii) ‘‘$3,000’’ and adding ‘‘$3,500’’ in their places. The revised text reads as follows: PO 00000 Frm 00027 Fmt 4702 Sfmt 4702 E:\FR\FM\25NOP1.SGM 25NOP1 70148 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules (8) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations (Date) (42 U.S.C. 1792). * * removing from paragraph (g) ‘‘$100,000’’ and adding ‘‘$150,000’’ in its place. The revised text reads as follows: (2) * * * (c) * * * * * (viii) 52.244–6, Subcontracts for Commercial Items (Date). * * (e)(1) (i) 52.203–13, Contractor Code of Business Ethics and Conduct (Date) (41 U.S.C. 3509). * * (b) * * * (1) * * * * * 52.222–37 Veterans. * (v) 52.222–35, Equal Opportunity for Veterans (Date) (38 U.S.C. 4212). (i) 52.204–10, Reporting Executive Compensation and First-Tier Subcontract Awards (Date) (Pub. L. 109–282) (31 U.S.C. 6101 note) (Applies to contracts valued at $30,000 or more). * * * * * * * * * * * * * * * * (xiii) 52.222–54, Employment Eligibility Verification (Date) (Executive Order 12989). * * * * * (xv) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations (Date) (42 U.S.C. 1792). Flow down required in accordance with paragraph (e) of FAR clause 52.226–6. * * * * * * * (e)(1) * * * (ii) * * * * * * * * (C) 52.219–8, Utilization of Small Business Concerns (Date) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $700,000 ($1.5 million for construction of any public facility), the subcontractor must include 52.219–8 in lower tier subcontracts that offer subcontracting opportunities. * * * * * (E) 52.222–35, Equal Opportunity for Veterans (Date) (38 U.S.C. 4212). * * * * * (L) Employment Eligibility Verification (Date) (Executive Order 12989). (M) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations. (Date) (42 U.S.C. 1792). Flow down required in accordance with paragraph (e) of FAR clause 52.226–6. * * * * * ■ 82. Amend section 52.213–4 by— ■ a. Revising the date of the clause; and ■ b. Revising paragraphs (a)(2)(viii), (b)(1)(i), (iv), (vi), (xi), and (b)(2)(i). The revised text reads as follows: wreier-aviles on DSK4TPTVN1PROD with PROPOSALS * * * * * * * (vi) 52.222–37, Employment Reports on Veterans (Date) (38 U.S.C. 4212) (applies to contracts of $150,000 or more). * * * * * (xi) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations (Date) (42 U.S.C. 1792) (Applies to contracts greater than $30,000 that provide for the provision, the service, or the sale of food in the United States). * (A) 52.203–13, Contractor Code of Business Ethics and Conduct (Date) (41 U.S.C. 3509). * * * Alternate II (Date). * * (iv) 52.222–35, Equal Opportunity for Veterans (Date) (38 U.S.C. 4212) (applies to contracts of $150,000 or more). (vii) 52.222–37, Employment Reports on Veterans (Date) (38 U.S.C. 4212). * * (2) * * * * * 52.219–9 Plan. * * Small Business Subcontracting * * Small Business Subcontracting Plan (Date) * * * * * Alternate III (Date). 14:26 Nov 24, 2014 Jkt 235001 * * * * 86. Amend section 52.222–54 by revising the date of the clause; and removing from paragraph (e)(2) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. The revised text reads as follows: ■ 52.222–54 Employment Eligibility Verification. * * * * * Employment Eligibility Verification (Date) * * * * * 87. Amend section 52.225–25 by revising the date of the provision; and removing from paragraph (c)(3) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its place. The revised text reads as follows: ■ * * * * * 84. Amend section 52.222–35 by revising the date of the clause; and removing from paragraph (c) ‘‘$100,000’’ and adding ‘‘$150,000’’ in its place. The revised text reads as follows: ■ * * * Equal Opportunity for Veterans (Date) * * * * * 85. Amend section 52.222–37 by revising the date of the clause; and ■ PO 00000 Frm 00028 Fmt 4702 * * * * Prohibition on Contracting With Entities Engaging in Certain Activities or Transactions Relating to Iran— Representation and Certifications (Date) * * * * * 88. Amend section 52.226–6 by revising the date of the clause; and removing from paragraph (e) ‘‘$25,000’’ and adding ‘‘$30,000’’ in its place. The revised text reads as follows: ■ * * * * * Promoting Excess Food Donation to Nonprofit Organizations (Date) * Equal Opportunity for Veterans. VerDate Sep<11>2014 * 52.226–6 Promoting Excess Food Donation to Nonprofit Organizations. * * Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items) (Date) (a) * * * Employment Reports on Veterans (Date) * * * * * 83. Amend section 52.219–9 by— a. Revising the date of the clause; b. Removing from paragraph (d)(9) and paragraph (l)(2)(i)(C) ‘‘$650,000’’ and adding ‘‘$700,000’’ in their places; ■ c. Amend Alternate III by— ■ 1. Revising the date of Alternate III; ■ 2. Removing from paragraph (l)(2)(C) ‘‘$550,000’’ and ‘‘$1,000,000’’ and adding ‘‘$700,000’’ and ‘‘$1.5 million’’ in their places, respectively. The revised text reads as follows: ■ ■ ■ * * * * 52.222–35 * * 52.225–25 Prohibition on Contracting With Entities Engaging in Certain Activities or Transactions Relating to Iran— Representation and Certifications. * * * * (i) 52.209–6, Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (Date) (Applies to contracts over $35,000). 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Items). * Employment Reports on Sfmt 4702 * * * * 89. Amend section 52.244–6 by— ■ a. Revising the date of the clause; ■ b. Revising paragraph (c)(1)(i); ■ c. Removing from paragraph (c)(1)(iii) ‘‘$650,000’’ and adding ‘‘$700,000’’ in its place; and ■ d. Revising paragraphs (c)(1)(v) and (vii). The revised text reads as follows: ■ 52.244–6 Items. * E:\FR\FM\25NOP1.SGM * Subcontracts for Commercial * 25NOP1 * * Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules agency Office of the Inspector General, with a copy to the Contracting Officer. * * * (c)(1) * * * * * wreier-aviles on DSK4TPTVN1PROD with PROPOSALS 14:26 Nov 24, 2014 * * * * * * * * * (v) 52.222–35, Equal Opportunity for Veterans (Date) (38 U.S.C. 4212(a)); (i) 52.203–13, Contractor Code of Business Ethics and Conduct (Date) (41 U.S.C. 3509), if the subcontract exceeds $5.5 million and has a performance period of more than 120 days. In altering this clause to identify the appropriate parties, all disclosures of violation of the civil False Claims Act or of Federal criminal law shall be directed to the VerDate Sep<11>2014 52.248–3 Value Engineering— Construction. * Subcontracts for Commercial Items (Date) 70149 Jkt 235001 Value Engineering—Construction (Date) * * * * * * (vii) 52.222–37, Employment Reports on Veterans (Date) (38 U.S.C. 4212). * * * * * ■ 90. Amend section 52.248–3 by revising the date of the clause; and removing from paragraph (h) ‘‘$65,000’’ and adding ‘‘$70,000’’ in its place. The revised text reads as follows: PO 00000 Frm 00029 Fmt 4702 Sfmt 4702 * * * * PART 53—FORMS 53.301–294 Subcontracting Report for Individual Contracts. 91. Revise section 53.301–294 to read as follows: ■ BILLING CODE 6820–14–P E:\FR\FM\25NOP1.SGM 25NOP1 70150 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 PO 00000 Frm 00030 Fmt 4702 Sfmt 4725 E:\FR\FM\25NOP1.SGM 25NOP1 EP25NO14.055</GPH> wreier-aviles on DSK4TPTVN1PROD with PROPOSALS SUBCONiRACTAWAAOS Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules :1l);l, 70151 NMIE OF !NlJMOO.Al AOMINISTERING SUBCONTRACTING l'l.AN VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 PO 00000 Frm 00031 Fmt 4702 Sfmt 4725 E:\FR\FM\25NOP1.SGM 25NOP1 EP25NO14.056</GPH> wreier-aviles on DSK4TPTVN1PROD with PROPOSALS STANOARO FORM 294 (REV, 10/2014) PAGE 2 70152 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules GENERAL INSTRUCTIONS SPECIFIC INSTRUCTIONS VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 PO 00000 Frm 00032 Fmt 4702 Sfmt 4725 E:\FR\FM\25NOP1.SGM 25NOP1 EP25NO14.057</GPH> wreier-aviles on DSK4TPTVN1PROD with PROPOSALS STANDARD FORM 294 (REV. 1012014) PAGE 3 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules 70153 BlOCK 1!1: Report •fl sub"'oo!rec,rs !rib"> th •I are rep(llt!"ll in Btocl< bus-in~sses, DfflNillONS D!ST!liBUTI0111 Of TillS !UEPO~T For the 1\wardto~g A!J&"ev Of Conlr~ctor: VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 PO 00000 Frm 00033 Fmt 4702 Sfmt 9990 E:\FR\FM\25NOP1.SGM 25NOP1 EP25NO14.058</GPH> wreier-aviles on DSK4TPTVN1PROD with PROPOSALS STANDARD FORM 294 (REV 101:2014) PAGE 4 70154 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Proposed Rules [FR Doc. 2014–27512 Filed 11–24–14; 8:45 am] BILLING CODE 6820–EP–C DEPARTMENT OF THE INTERIOR Fish and Wildlife Service 50 CFR Part 17 [Docket No. FWS–R2–ES–2013–0056; FXES11130900000C2–134–FF09E32000] RIN 1018–AY46 Endangered and Threatened Wildlife and Plants; Proposed Revision to the Regulations for the Nonessential Experimental Population of the Mexican Wolf Fish and Wildlife Service, Interior. ACTION: Proposed rule; availability of a final environmental impact statement and a draft record of decision. AGENCY: We, the U.S. Fish and Wildlife Service (Service), make available the final environmental impact statement (EIS) on the proposed revisions to the regulations for the nonessential experimental population designation of the Mexican wolf and our draft record of decision (ROD), under the National Environmental Policy Act of 1969, as amended. Our intended action is to revise the regulations established in our 1998 Final Rule for the nonessential experimental population of the Mexican wolf. We also propose to extend the authority of the Mexican Wolf Recovery Program’s section 10(a)(1)(A) research and recovery permit to areas that are outside of the Mexican Wolf Experimental Population Area. In the EIS we analyzed the environmental consequences of a range of alternatives, including the Proposed Action and No Action alternative, for our proposed rule. The action would be implemented through a final rule, a revised section 10(a)(1)(A) research and recovery permit, and the provision of Federal funding. DATES: We will consider comments received on or before December 27, 2014. Comments submitted electronically using the Federal eRulemaking Portal (see ADDRESSES) must be received by 11:59 p.m. Eastern Time on the closing date. We will issue a final ROD no sooner than December 27, 2014. ADDRESSES: Document availability: The final EIS and draft ROD are available electronically on https:// www.regulations.gov in Docket No. FWS–R2–ES–2013–0056, on the Mexican Wolf Recovery Program’s Web wreier-aviles on DSK4TPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 14:26 Nov 24, 2014 Jkt 235001 site at https://www.fws.gov/southwest/es/ mexicanwolf/, or from the office listed in FOR FURTHER INFORMATION CONTACT. Document submission: You may submit written comments on the final EIS and draft ROD by one of the following methods: (1) Electronically: Go to the Federal eRulemaking Portal: https:// www.regulations.gov. Search for FWS– R2–ES–2013–0056, which is the docket number for this rulemaking. You may submit a comment by clicking on ‘‘Comment Now!’’. Please ensure that you have found the correct rulemaking before submitting your comment. (2) By hard copy: Submit by U.S. mail or hand delivery to: Public Comments Processing, Attn: FWS–R2–ES–2013– 0056; Division of Policy and Directives Management; U.S. Fish and Wildlife Service Headquarters, MS: BPHC, 5275 Leesburg Pike, Falls Church, VA 22041– 3803. We request that you send comments on the final EIS and draft ROD only by the methods described above. We will post all comments on https:// www.regulations.gov. This generally means that we will post any personal information you provide us (see the Public Comments section below for more information). To increase our efficiency in downloading comments, groups providing mass submissions should submit their comments in an Excel file. FOR FURTHER INFORMATION CONTACT: Sherry Barrett, Mexican Wolf Recovery Coordinator, U.S. Fish and Wildlife Service, New Mexico Ecological Services Field Office, 2105 Osuna Road, NE., Albuquerque, NM 87113; by telephone 505–761–4704; or by facsimile 505–346–2542. If you use a telecommunications device for the deaf (TDD), call the Federal Information Relay Service (FIRS) at 800–877–8339. Further contact information can be found on the Mexican Wolf Recovery Program’s Web site at https:// www.fws.gov/southwest/es/ mexicanwolf/. SUPPLEMENTARY INFORMATION: With this Federal Register document, we announce the availability of the final EIS and our draft ROD for the Proposed Revision to the Regulations for the Nonessential Experimental Population of the Mexican Wolf (Canis lupus baileyi). We developed the final EIS and our draft ROD in compliance with the agency decision making requirements of the National Environmental Policy Act of 1969, as amended. We have described all alternatives in detail, and we have evaluated them in our final EIS. Our draft decision is based PO 00000 Frm 00034 Fmt 4702 Sfmt 4702 on our review of the alternatives and their environmental consequences as described in our final EIS. Reviewing Documents You may obtain a copy of the final EIS and draft ROD by going to the Mexican Wolf Recovery Program Web site at https://www.fws.gov/southwest/es/ mexicanwolf/. Alternatively, you may obtain a compact disk with an electronic copy of the final EIS by writing to Ms. Sherry Barrett, Mexican Wolf Recovery Coordinator (see FOR FURTHER INFORMATION CONTACT). The final EIS and draft ROD will also be available for public inspection, by appointment, during normal business hours (8 a.m. to 4:30 p.m.) at the New Mexico Ecological Services Field Office, 2105 Osuna Road NE., Albuquerque, NM 87113. In cooperation with the U.S. Department of Agriculture, Forest Service, Southwest Region, we have also established information repositories at the Supervisor Offices for the National Forests throughout Arizona and New Mexico. Links to the National Forests with the addresses of the supervisor offices are available at https:// www.fs.usda.gov/r3. Background On June 13, 2013 (78 FR 35719), we published a proposed rule to revise the existing nonessential experimental population designation of the Mexican wolf. That proposal had a 90-day comment period ending September 11, 2013. On August 5, 2013 (78 FR 47268), we published a notice of intent to prepare an environmental impact statement in conjunction with the proposed rule to revise the existing nonessential experimental population designation of the Mexican wolf. That notice of intent to prepare an environmental impact statement had a 45-day comment period ending September 19, 2013. On September 5, 2013 (78 FR 54613), we extended the public comment period on the proposed rule to revise the existing nonessential experimental population designation of the Mexican wolf to end on October 28, 2013, and announced a public hearing. On October 28, 2013 (78 FR 64192), we once again extended the public comment period on the proposed rule to revise the existing nonessential experimental population designation of the Mexican wolf to end on December 17, 2013, and announced public hearings on the proposed rule to revise the existing nonessential experimental population designation of the Mexican wolf. On July 25, 2014 (79 FR 43358), we published a revised proposed rule to the E:\FR\FM\25NOP1.SGM 25NOP1

Agencies

[Federal Register Volume 79, Number 227 (Tuesday, November 25, 2014)]
[Proposed Rules]
[Pages 70141-70154]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27512]


=======================================================================
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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 
22, 25, 26, 28, 32, 42, 50, 52, and 53

[FAR Case 2014-022; Docket No. 2014-0022; Sequence No. 1]
RIN 9000-AM80


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: Proposed rule.

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

SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to further implement the inflation 
adjustment of acquisition-related dollar thresholds. A statute requires 
an adjustment every five years of acquisition-related thresholds for 
inflation using the Consumer Price Index for all urban consumers, 
except for the Construction Wage Rate Requirements statute (Davis-Bacon 
Act), Service Contract Labor Standards statute, and trade agreements 
thresholds. DoD, GSA, and NASA are also proposing to use the same 
methodology to adjust nonstatutory FAR acquisition-related thresholds 
in 2015.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addresses shown below on or before 
January 26, 2015 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to FAR Case 2014-022 by any of 
the following methods:
     Regulations.gov: https://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2014-022''. Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2014-022.'' Follow the instructions provided at the ``Comment 
Now'' screen. Please include your name, company name (if any), and 
``FAR Case 2014-022'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR Case 2014-
022, in all correspondence related to this case. All comments received 
will be posted without change to https://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAR Case 2014-022.

SUPPLEMENTARY INFORMATION:

I. Background

    This rule proposes to amend multiple FAR parts to further implement 
41 U.S.C. 1908. Section 1908 requires an adjustment every five years 
(on October 1 of each year evenly divisible by five) of statutory 
acquisition-related thresholds for inflation, using the Consumer Price 
Index (CPI) for all urban consumers, except for the Construction Wage 
Rate Requirements statute (Davis-Bacon Act), Service Contract Labor 
Standards statute, and trade agreements thresholds (see FAR 1.109). As 
a matter of policy, DoD, GSA, and NASA are also proposing to use the 
same methodology to adjust nonstatutory FAR acquisition-related 
thresholds on October 1, 2015.
    This is the third review of FAR acquisition-related thresholds 
since the statute was passed on October 28, 2004 (section 807 of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
(FY) 2005). The last review was conducted under FAR Case 2008-024 
during FY 2010. The final rule was published in the Federal Register at 
75 FR 53129 on August 30, 2010, and was effective October 1, 2010.

II. Analysis.

A. What is an acquisition-related threshold?

    This case builds on the review of FAR thresholds in FY 2005 and FY 
2010, using the same interpretation of an acquisition-related 
threshold. 41 U.S.C. 1908 is applicable to ``a dollar threshold that is 
specified in law 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 the FAR Council determines.''
    There are other thresholds in the FAR that, while not specified in 
law, nevertheless meet all the other criteria. These thresholds may 
have their origin in Executive order or regulation.

[[Page 70142]]

Therefore, the FAR Council has determined, that in this case, 
``acquisition-related threshold'' has a broader meaning, i.e., a 
threshold that is specified in law, Executive order, or regulation as a 
factor in defining the scope of the applicability of a policy, 
procedure, requirement, or restriction provided in that law, Executive 
order, or regulation to the procurement of property or services by an 
Executive agency. DoD, GSA, and NASA conclude that acquisition-related 
thresholds are generally tied to the value of a contract, subcontract, 
or modification.
    Examples of thresholds that are not ``acquisition-related,'' as 
defined in this case, are thresholds relating to claims, penalties, 
withholding, payments, required levels of insurance, small business 
size standards, liquidated damages, etc. This rule does not address 
thresholds that are not acquisition-related.

B. What acquisition-related thresholds are not subject to escalation 
adjustment under this case?

    41 U.S.C. 1908 does not permit escalation of acquisition-related 
thresholds established by the Construction Wage Rate Requirements 
statute (Davis Bacon Act), the Service Contract Labor Standards 
statute, or the United States Trade Representative pursuant to the 
authority of the Trade Agreements Act of 1979.
    Also, the statute does not authorize the FAR to escalate thresholds 
originating in Executive order or the implementing agency (such as the 
Department of Labor or the Small Business Administration), unless the 
Executive order or agency regulations are first amended.

C. How do the Defense Acquisition Regulations Council and the Civilian 
Agency Acquisition Council (the Councils) analyze a statutory 
acquisition-related threshold?

    If an acquisition-related threshold is based on statute, the matrix 
at https://acquisition.gov/far/facsframe.html identifies the statute and 
the statutory threshold, including the original threshold and any FAR 
revisions.
    With the exception of thresholds set by the Construction Wage Rate 
Requirements statute (Davis-Bacon Act), Service Contract Labor 
Standards statute, and the United States Trade Representative pursuant 
to the authority of the Trade Agreements Act of 1979, 41 U.S.C. 1908 
requires that the FAR Council adjust the acquisition-related thresholds 
for inflation using the CPI for all urban consumers. Acquisition-
related thresholds in statutes that were in effect on October 1, 2000, 
are only subject to escalation from that date forward. For purposes of 
this proposed rule, the matrix includes calculation of escalation based 
on the estimated CPI value for March 2015 (currently estimated at 
243.0) divided by the CPI for the date of enactment of the statute or 
regulation (October 2000, for statutes enacted prior to October 1, 
2000). The Councils will subsequently adjust as necessary before 
issuance of the final rule.
    Once the escalation factor is applied to the acquisition-related 
threshold, then the threshold must be rounded as follows:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
<$10,000..............................  Nearest $500.
$10,000-<$100,000.....................  Nearest $5,000.
$100,000-<$1,000,000..................  Nearest $50,000.
$1,000,000 or more....................  Nearest $500,000.
------------------------------------------------------------------------

    The calculations in this proposed rule are all based on the base 
year amount, because escalated amounts in the 2010 rule were subject to 
rounding and using those amounts as the base would distort future 
calculations.
    In 2010, some thresholds (e.g., $3,000), although subject to 
inflation calculation, did not actually change, because the inflation 
in 2010 was insufficient to overcome the rounding requirements i.e., 
the escalation factor, when applied, did not cause the escalated values 
to be high enough to round to the next higher value. However, in FY 
2015, thresholds that did not escalate in 2010 will now escalate 
because of five additional years of inflation. Likewise, some 
thresholds that were escalated in 2010 (e.g., $150,000) will not 
escalate in 2015.
    The thresholds for defining a major system were previously stated 
in FY 1990 constant dollars for DoD and in FY 1980 constant dollars for 
civilian agencies. The 2005 rule converted the base year for these 
major system thresholds to 2004 dollars, that were then adjusted in 
October 2005 and also adjusted in October 2010. Although the FAR will 
continue to escalate the major systems threshold for the civilian 
agencies, DoD has determined that for DoD, the major systems thresholds 
in the FAR must be consistent with the major systems thresholds in DoD 
Instruction 5000.02, established in accordance with the authority in 10 
U.S.C. 2302d(c)(1). This allows the Secretary of Defense to adjust the 
amounts (and the base fiscal year) provided in subsection (a) on the 
basis of DoD escalation rates (rather than the CPI for all urban 
consumers). The revised figures were calculated by the DoD Comptroller, 
and coordinated with the Cost Assessment and Program Evaluation (CAPE) 
Office and the DoD General Counsel. In accordance with 10 U.S.C. 
2302d(c)(3), DoD reported these thresholds to Congress in December 
2013.
    This proposed 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. As appropriate, any changes to cost 
accounting standards (CAS) thresholds will be coordinated with the CAS 
Board and addressed under a separate case.

D. How do the Councils analyze a nonstatutory acquisition-related 
threshold?

    No statutory authorization is required to escalate thresholds that 
are policy-based within the FAR. For consistency, escalation of the FAR 
policy acquisition-related thresholds is recommended using the same 
formula applied to the statutory thresholds, unless there is a valid 
reason for not doing so.

E. What is the effect of this proposed rule on the most heavily-used 
thresholds?

    This rule includes the following proposed changes to heavily-used 
thresholds:
     The micro-purchase threshold of $3,000 (FAR 2.101) will 
increase to $3,500. The Title 41 recodification (Pub. L. 111-350, 
enacted January 4, 2011) relocated the micro-purchase authorization to 
41 U.S.C. 1902, and raised the micro-purchase threshold to $3,000 
(equivalent to the escalated value in the FAR). However, as Congress 
stated in House Report 111-42, the recodification statute did not 
intend to make any substantive changes, therefore the inflation 
calculation will continue to be calculated based on the October 2000 
amount of $2,500, not the January 2011 value of $3,000.
     The simplified acquisition threshold (FAR 2.101) of 
$150,000 will not change.
     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) will 
increase from $6.5 million to $7 million.
     The cost or pricing data threshold (FAR 15.403-4) will 
increase from $700,000 to $750,000.
     The prime contractor subcontracting plan (FAR 19.702) 
floor will increase from $650,000 to $700,000,

[[Page 70143]]

but the construction threshold of $1.5 million will not change.
     The threshold for reporting first-tier subcontract 
information including executive compensation will increase from $25,000 
to $30,000 (FAR subpart 4.14 and section 52.204-10).
    This proposed rule is based on a projected CPI of 243 for March 
2015. If the actual CPI for March 2015 is higher than 243, then 
additional statutory thresholds may be subject to escalation in the 
final rule, even though not included in the proposed rule.

F. Other Changes in the Rule

     FAR 12.102(g) is being deleted as obsolete.
     The $30,000 threshold at FAR 13.106-2(c)(2) and (d) 
returns to $25,000 to harmonize with the 5.101(a)(1) threshold for 
synopsizing preaward notices in FedBizOpps.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this rule to 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 rule maintains the status quo by adjusting thresholds for 
actual inflationary increases in the CPI. However, an Initial 
Regulatory Flexibility Analysis has been performed and is summarized as 
follows:

    This rule will amend the Federal Acquisition Regulation to 
implement 41 U.S.C. 1908 and to amend other acquisition-related 
dollar thresholds that are based on policy rather than statute in 
order to adjust for the changing value of the dollar. 41 U.S.C. 1908 
requires adjustment every five years of statutory acquisition-
related dollar thresholds, except for Construction Wage Rate 
Requirements statute (Davis-Bacon Act), Service Contract Labor 
Standards statute, and trade agreements thresholds. While reviewing 
all statutory acquisition-related thresholds, this case presented an 
opportunity to also review all nonstatutory acquisition-related 
thresholds in the FAR that are based on policy.
    The objective of the case is to maintain the status quo, by 
adjusting acquisition-related thresholds for inflation. The legal 
basis is 41 U.S.C. 1908. The statute does not authorize the FAR to 
escalate thresholds originating in Executive orders or the 
implementing agency (such as the Department of Labor or the Small 
Business Administration), unless the Executive order or agency 
regulations are first amended.
    This rule will have a minimal impact on small business concerns 
that submit offers or are awarded contracts by the Federal 
Government. However, most of the threshold changes proposed in this 
rule are not expected to have any significant economic impact on 
small business concerns because the threshold changes are intended 
to maintain the status quo by adjusting for changes in the value of 
the dollar. Often any impact will be beneficial, by preventing 
burdensome requirements from applying to more and more acquisitions, 
as the dollar loses value.
    One threshold change in this rule which may temporarily impact 
small business concerns is the increase in the micro-purchase 
threshold (FAR 2.101) from $3,000 to $3,500. This will temporarily 
narrow the dollar range within which acquisitions are automatically 
set aside for small business concerns, because the simplified 
acquisition threshold of $150,000 will not increase at this time. To 
assess the impact of the increase in the micro-purchase threshold 
from $3,000 to $3,500, data was requested from FPDS-NG. For FY 2013, 
there were 83,951 contracts and calls/orders between $3,000 and 
$3,500, with a value of $272,567,926. Of these actions, 34,828 
(value of $113,280,333) were awarded to small business concerns. 
DoD, GSA, and NASA expect that many of these awards will still go to 
small business concerns, even if there is no longer a requirement to 
automatically set the procurement aside for small business concerns.
    The rule does not impose any new reporting, recordkeeping, or 
compliance requirements. Changes in thresholds for approved 
information collection requirements are intended to maintain the 
status quo and prevent those requirements from increasing over time.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no practical alternatives that will accomplish the 
objectives of the statute.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, 
and NASA invite comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the rule in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR Case 2014-022), 
in correspondence.

V. Paperwork Reduction Act

    The Paperwork Reduction Act does apply. The proposed changes to the 
FAR do not impose new information collection requirements that require 
the approval of the Office of Management and Budget (OMB) under 44 
U.S.C. 3501, et seq. By adjusting the thresholds for inflation, the 
status quo for the current information collection requirements are 
maintained under the following OMB clearance numbers: 9000-0006, 
titled: Subcontracting Plans/Individual Subcontract Report (SF 294); 
9000-0007, titled: Summary Subcontract Report; 9000-0094, titled: 
Debarment and Suspension; 9000-0164, titled: Contractor Business Ethics 
Compliance Program and Disclosure Requirements; 9000-0177, titled: 
Reporting Executive Compensation and First-tier Subcontract Awards; 
1250-0004, titled: OFCCP Recordkeeping and Reporting Requirements--38 
U.S.C. 4212, Vietnam Era Veterans' Readjustment Assistance Act of 1974, 
as amended; and 1293-0005, titled: Federal Contractor Veterans 
Employment Report, VETS-100/VETS-100A.

List of Subjects in 48 CFR Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 
13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 50, 52, and 53

    Government procurement.

    Dated: November 13, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide Policy.
    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 1, 2, 
3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 
50, 52, and 53 as set forth below:

0
1. The authority citation for 48 CFR parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 
12, 13, 15, 16, 17, 19, 22, 25, 26, 28, 32, 42, 50, 52, and 53 
continues to read as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.109  [Amended]

0
2. Amend section 1.109 by removing from paragraph (d) ``FAR Case 2008-
024'' and adding ``FAR Case 2014-022'' in its place.

[[Page 70144]]

PART 2--DEFINITIONS OF WORDS AND TERMS

0
3. Amend section 2.101, in paragraph (b)(2) by:
0
a. Revising paragraph (1) of the definition ``Major System'';
0
b. In the definition ``Micro-purchase threshold'' by removing from the 
introductory text ``$3,000'' and adding ``$3,500'' in its place, and 
removing from paragraph (3)(i) ``$15,000'' and adding ``$20,000'' in 
its place;
0
c. In the definition ``Simplified acquisition threshold'' by removing 
from the introductory text ``$150,000,'' and adding ``$150,000 (41 
U.S.C. 134),'' in its place; removing from paragraph (1) ``$300,000'' 
and adding ``$350,000'' in its place; and removing from paragraph (2) 
``$1 million'' and adding ``$1.5 million'' in its place; and
0
d. In the definition ``Small business subcontractor'' by removing from 
paragraphs (1) and (2) ``$10,000'' and adding ``$15,000'' in their 
places.
    The revised text reads as follows:


2.101  Definitions.

* * * * *
    (b) * * *
    (2) * * *
    Major system * * *
    (1) The Department of Defense is responsible for the system and the 
total expenditures for research, development, test, and evaluation for 
the system are estimated to be more than $185 million based on Fiscal 
Year 2014 constant dollars or the eventual total expenditure for the 
acquisition exceeds $835 million based on Fiscal Year 2014 constant 
dollars (or any update of these thresholds based on a more recent 
fiscal year, as specified in the DoD Instruction 5000.02, ``Operation 
of the Defense Acquisition System'');
* * * * *

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST


3.1004   [Amended]

0
4. Amend section 3.1004 by removing from paragraphs (a), (b)(1)(i), and 
(b)(3) ``$5,000,000'' and adding ``$5.5 million'' in their places.

PART 4--ADMINISTRATIVE MATTERS


4.605  [Amended]

0
5. Amend section 4.605 by removing from paragraphs (c)(2)(i) and (ii) 
``$25,000'' and adding $30,000'' in their places.


4.1102  [Amended]

0
6. Amend section 4.1102 by removing from paragraph (a)(6) ``$25,000'' 
and adding ``$30,000'' in its place.


4.1401  [Amended]

0
7. Amend section 4.1401 by removing from paragraph (a) ``$25,000'' and 
adding ``$30,000'' in its place.

0
8. Amend section 4.1403 by revising paragraph (a) to read as follows:


4.1403  Contract clause.

    (a) Except as provided in paragraph (b) of this section, the 
contracting officer shall insert the clause at 52.204-10, Reporting 
Executive Compensation and First-Tier Subcontract Awards, in all 
solicitations and contracts of $30,000 or more.
* * * * *

PART 6--COMPETITION REQUIREMENTS


6.204  [Amended]

0
9. Amend section 6.204 by removing from paragraph (b) ``$20 million'' 
and adding ``$22.5 million'' in its place.


6.302-5  [Amended]

0
10. Amend section 6.302-5 by removing from paragraphs (b)(4) and 
(c)(2)(iii) ``$20 million'' and adding ``$22.5 million'' in their 
places.


6.303-1  [Amended]

0
11. Amend section 6.303-1 by removing from paragraph (b), introductory 
text, ``$20 million'' and adding ``$22.5 million'' in its place.


6.303-2  [Amended]

0
12. Amend section 6.303-2 by removing from the introductory text of 
paragraphs (b) and (d) ``$20 million'' and adding ``$22.5 million'' in 
their places.


6.304  [Amended]

0
13. Amend section 6.304 by:
0
a. Removing from paragraph (a)(1) ``$650,000'' and adding ``$700,000'' 
in its place;
0
b. Removing from paragraph (a)(2) ``$650,000'' and ``$12.5 million'' 
and adding ``$700,000'' and ``$14 million'' in their places, 
respectively;
0
c. Removing from the introductory text of paragraph (a)(3) ``$12.5 
million'', ``$62.5 million'', and ``85.5 million'' and adding ``$14 
million'', ``$70 million'', and ``$95.5 million'' in their places, 
respectively; and
0
d. Removing from paragraph (a)(4) ``$62.5 million'' and ``$85.5 
million'' and adding ``$70 million'' and ``$95.5 million'' in their 
places, respectively.

PART 7--ACQUISITION PLANNING


7.104  [Amended]

0
14. Amend section 7.104 by:
0
a. Removing from paragraph (d)(2)(i)(A) ``$8 million'' and adding ``$9 
million'' in its place; and
0
b. Removing from paragraph (d)(2)(i)(B) ``$6 million'' and adding 
``$6.5 million'' in its place.


7.107  [Amended]

0
15. Amend section 7.107 by removing from paragraph (b)(1) ``$94 
million'' and adding ``$104.5 million'' in its place; and removing from 
paragraph (b)(2) ``$9.4 million'' and ``$94 million'' and adding 
``$10.45 million'' and ``$104.5 million'' in their places, 
respectively.

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES


8.404  [Amended]

0
16. Amend section 8.404 by removing from paragraph (b)(2) ``$500,000'' 
and adding ``$550,000'' in its place.


8.405-3  [Amended]

0
17. Amend section 8.405-3 by
0
a. Removing from paragraphs (a)(3)(ii) and (iii) ``$103 million'' and 
adding ``$115 million'' in their places; and
0
b. Revising paragraph (a)(7)(v).
    The revision reads as follows:
    (a) * * *
    (7) * * *
    (v) Determination for a single-award BPA exceeding $115 million, if 
applicable (see paragraph (a)(3)(ii) of this section);


8.405-6  [Amended]

0
18. Amend section 8.405-6 by:
0
a. Removing from paragraph (d)(1) ``$650,000'' and adding ``$700,000'' 
in its place;
0
b. Removing from paragraph (d)(2) ``$650,000'' and ``$12.5 million'' 
and adding ``$700,000'' and ``$14 million'' in their places, 
respectively;
0
c. Removing from the introductory text of paragraph (d)(3) ``$12.5 
million'', ``$62.5 million'', and ``$85.5 million'', and adding ``$14 
million'', ``$70 million'' and ``$95.5 million'' in their places, 
respectively; and
0
d. Removing from paragraph (d)(4) ``$62.5 million'' and ``$85.5 
million'' and adding ``$70 million'' and ``$95.5 million'' in their 
places, respectively.

PART 9--CONTRACTOR QUALIFICATIONS


9.104-5  [Amended]

0
19. Amend section 9.104-5 by removing from paragraph (a)(2) ``$3,000'' 
and adding ``$3,500'' in its place.


9.104-7  [Amended]

0
20. Amend section 9.104-7 by removing from paragraphs (b) and (c)(1) 
``$500,000'' and adding ``$550,000'' in their places.

[[Page 70145]]

9.405-2  [Amended]

0
21. Amend section 9.405-2 by removing from paragraph (b) ``$30,000'' 
and adding ``$35,000'' in their places (twice).


9.406-2  [Amended]

0
22. Amend section 9.406-2 by removing from paragraph (b)(1)(v) 
``$3,000'' and adding ``$3,500'' in its place.


9.407-2  [Amended]

0
23. Amend section 9.407-2 by removing from paragraph (a)(7) ``$3,000'' 
and adding ``$3,500'' in its place.


9.409  [Amended]

0
24. Amend section 9.409 by removing ``$30,000'' and adding ``$35,000'' 
in its place.

PART 10--MARKET RESEARCH


10.001  [Amended]

0
25. Amend section 10.001 by removing from paragraph (d) ``$5 million'' 
and adding ``$6 million'' in its place.


10.003  [Amended]

0
26. Amend section 10.003 by removing ``$5 million'' and adding ``$6 
million'' in its place.

PART 12--ACQUISITION OF COMMERCIAL ITEMS


12.102  [Amended]

0
27. Amend section 12.102 by removing from the introductory text of 
paragraph (f)(2) ``$17.5 million'' and adding ``$20 million'' in its 
place; and removing paragraph (g).


12.203  [Amended]

0
28. Amend section 12.203 by removing ``$6.5 million'' and ``$12 
million'' and adding ``$7 million'' and ``$13 million'' in their 
places, respectively.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.000  [Amended]

0
29. Amend section 13.000 by removing ``$6.5 million'' and ``$12 
million'' and adding ``$7 million'' and ``$13 million'' in their 
places, respectively.


13.003  [Amended]

0
30. Amend section 13.003 by:
0
a. Removing from paragraph (b)(1) ``$3,000'', ``$15,000'', and 
``$300,000'' and adding ``$3,500'', ``$20,000'' and ``$350,000'' in 
their places, respectively;
0
b. Removing from paragraph (c)(1)(ii) ``$6.5 million'' and ``$12 
million'' and adding ``$7 million'' and ``$13 million'' in their 
places, respectively; and
0
c. Removing from paragraph (g)(2) ``$6.5 million'' and ``$12 million'' 
and adding ``$7 million'' and ``$13 million'' in their places, 
respectively.


13.005  [Amended]

0
31. Amend section 13.005 by removing from paragraph (a)(2) ``$30,000'' 
and adding ``$35,000'' in its place.


13.106-1  [Amended]

0
32. Amend section 13.106-1 by removing from paragraphs (c)(2) and (d) 
``$30,000'' and adding ``$25,000'' in their places.


13.201  [Amended]

0
33. Amend section 13.201 by removing from paragraph (g)(1)(i) 
``$15,000'' and adding ``$20,000'' in its place.


13.303-5  [Amended]

0
34. Amend section 13.303-5 by:
0
a. Removing from paragraph (b)(1) ``$6.5 million'' and ``$12 million'' 
and adding ``$7 million'' and ``$13 million'' in their places, 
respectively; and
0
b. Removing from paragraph (b)(2) ``$6.5 million'' and ``$12 million'' 
and adding ``$7 million'' and ``$13 million'' in their places, 
respectively.


13.402  [Amended]

0
35. Amend section 13.402 by removing from paragraph (a) ``$30,000'' and 
adding ``$35,000'' in its place.


13.500  [Amended]

0
36. Amend section 13.500 by--
0
a. Removing from paragraph (a) ``$6.5 million'' and ``$12 million'' and 
adding ``$7 million'' and ``$13 million'' in their places, 
respectively; and
0
b. Removing from the introductory text of paragraph (e) ``$12 million'' 
and adding ``$13 million'' in its place.


13.501  [Amended]

0
37. Amend section 13.501 by:
0
a. Removing from paragraph (a)(2)(i) ``$650,000'' and adding 
``$700,000'' in its place;
0
b. Removing from paragraph (a)(2)(ii) ''$650,000'' and ``$12.5 
million'' and adding ``$700,000'' and ``$14 million'' in their places, 
respectively;
0
c. Removing from paragraph (a)(2)(iii) ``$12.5 million'', ``$62.5 
million'', and ``$85.5 million'' and adding ``$14 million'', ``$70 
million'', and ``$95.5 million'' in their places, respectively; and
0
d. Removing from paragraph (a)(2)(iv) ``$62.5 million'' and ``$85.5 
million'' and adding ``$70 million'' and ``$95.5 million'' in their 
places, respectively.

PART 15--CONTRACTING BY NEGOTIATION


15.403-1  [Amended]

0
38. Amend section 15.403-1 by removing from paragraph (c)(3)(iv) 
``$17.5 million'' and adding ``$20 million'' in its place.


15.403-4  [Amended]

0
39. Amend section 15.403-4 by removing from the introductory text of 
paragraph (a)(1) and paragraph (a)(1)(iii) ``$700,000'' and adding 
``$750,000'' in its place.


15.404-3  [Amended]

0
40. Amend section 15.404-3 by removing from paragraph (c)(1)(i) ``$12.5 
million'' and adding ``$14 million'' in its place.


15.407-2  [Amended]

0
41. Amend section 15.407-2 by removing from paragraph (c)(1) and the 
introductory text of paragraph (c)(2) ``$12.5 million'' and adding 
``$14 million'' in their places.


15.408  [Amended]

0
42. Amend section 15.408 in Table 15-2, ``II. Cost Elements'' which 
follows paragraph (n)(2)(iii), by removing from paragraph ``A(2)'' 
``$12.5 million'' and adding ``$14 million'' in its place.

PART 16--TYPES OF CONTRACTS


16.503  [Amended]

0
43. Amend section 16.503 by removing from paragraph (b)(2) ``$103 
million'' and adding ``$115 million'' in its place; and removing from 
paragraph (d)(1) ``$12.5 million'' and adding ``$14 million'' in its 
place.


16.504  [Amended]

0
44. Amend section 16.504 by:
0
a. Removing from the introductory text of paragraph (c)(1)(ii)(D)(1) 
``$103 million'' and adding ``$115 million'' in its place;
0
b. Removing from the introductory text of paragraph (c)(1)(ii)(D)(3) 
``$103 million'' and adding ``$115 million'' in its place; and removing 
from the end of the paragraph the colon and adding an em dash in its 
place;
0
c. Removing from the end of paragraph (c)(1)(ii)(D)(3)(i) the period 
and adding ``; and'' in its place; and
0
d. Removing from the introductory text of paragraph (c)(2)(i) ``$12.5 
million'' and adding ``$14 million'' in its place.


16.505  [Amended]

0
45. Amend section 16.505 by:
0
a. Removing from the introductory text of paragraph (a)(4)(iii)(A) 
``$25,000'' and adding ``$30,000'' in its place;

[[Page 70146]]

0
b. Removing from paragraph (b)(1)(i) ``$3,000'' and adding ``$3,500'' 
in its place;
0
c. Removing from the paragraph (b)(1)(iv) ``$5 million'' and ``$5 
million'' and adding ``$5.5 million'' and ``$5.5 million'' in their 
places, respectively;
0
d. Removing from paragraph (b)(2)(i) ``$3,000'' and adding ``$3,500'' 
in its place;
0
e. Removing from the heading of paragraph (b)(2)(ii)(A) ``$3,000'' and 
adding ``$3,500'' in its place;
0
f. Removing from the paragraph (b)(2)(ii)(C)(1) ``$650,000'' and adding 
``$700,000'' in its place;
0
g. Removing from paragraph (b)(2)(ii)(C)(2) ``$650,000'' and ``$12.5 
million'' and adding ``$700,000'' and ``14 million'' in their places, 
respectively;
0
h. Removing from paragraph (b)(2)(ii)(C)(3) ``$12.5 million'', ``$62.5 
million'', and ``$85.5 million'' and adding ``14 million'', ``70 
million'', and ``95.5 million'' in their places, respectively;
0
i. Removing from paragraph (b)(2)(ii)(C)(4) ``$62.5 million'' and 
``$85.5 million'' and adding ``70 million'' and ``95.5 million'' in 
their places, respectively; and
0
j. Removing from the heading of paragraph (b)(6) ``$5 million'' and 
adding ``$5.5 million'' in its place; and removing from the 
introductory text ``$5 million'' and adding ``$5.5 million'' in its 
place.


16.506  [Amended]

0
46. Amend section 16.506 by removing from paragraphs (f) and (g) 
``$12.5 million'' and adding ``$14 million'' in their places; and 
removing from paragraph (h) ``$5 million'' and adding ``$6 million'' in 
its place.

PART 17--SPECIAL CONTRACTING METHODS


17.108  [Amended]

0
47. Amend section 17.108 by removing from paragraph (a) ``$12.5 
million'' and adding ``$14 million'' in its place; and removing from 
paragraph (b) ``$125 million'' and adding ``$139.5 million'' in its 
place.


17.500  [Amended]

0
48. Amend section 17.500 by removing from paragraph (c)(2) ``$500,000'' 
and adding ``$550,000'' in its place.

PART 19--SMALL BUSINESS PROGRAMS


19.203  [Amended]

0
49. Amend section 19.203 by removing from paragraph (b) ``$3,000'', 
``$15,000'', and ``$300,000'' and adding ``$3,500'', ``$20,000'', and 
``$350,000'' in their places, respectively.


19.502-1  [Amended]

0
50. Amend section 19.502-1 by removing from paragraph (b) ``$3,000'' 
and ``$15,000'' and adding ``$3,500'' and ``$20,000'' in their places, 
respectively.


19.502-2  [Amended]

0
51. Amend section 19.502-2 by:
0
a. Removing from paragraph (a) ``$3,000'', ``$15,000'', and 
``$300,000'' and adding ``$3,500'', ``$20,000'', and ``$350,000'' in 
their places, respectively; and
0
b. Removing from the end of paragraph (b) ``that:'' and adding ``that--
'' in its place.


19.702  [Amended]

0
52. Amend section 19.702 by removing from paragraphs (a)(1) and (2) 
``$650,000'' and adding ``$700,000'' in their places.


19.704  [Amended]

0
53. Amend section 19.704 by removing from paragraph (a)(9) ``$650,000'' 
and adding ``$700,000'' in its place.


19.708  [Amended]

0
54. Amend section 19.708 by removing from paragraph (b)(1) ``$650,000'' 
and adding ``$700,000'' in its place.


19.805-1  [Amended]

0
55. Amend section 19.805-1 by removing from paragraph (a)(2) ``$6.5 
million'' and adding ``$7 million'' in its place.


19.808-1  [Amended]

0
56. Amend section 19.808-1 by removing from paragraph (a) ``$20 
million'' and adding ``$22.5 million'' in its place.


19.1306  [Amended]

0
57. Amend section 19.1306 by removing from paragraph (a)(2)(i) ``$6.5 
million'' and adding ``$7 million'' in its place.


19.1406  [Amended]

0
58. Amend section 19.1406 by removing from paragraph (a)(2)(i) ``$6 
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.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT


22.1103  [Amended]

0
59. Amend section 22.1103 by removing ``$650,000'' and adding 
``$700,000'' in its place.


22.1303  [Amended]

0
60. Amend section 22.1303 by removing from paragraphs (a) and (c) 
``$100,000'' and adding ``$150,000'' in their places.


22.1310  [Amended]

0
61. Amend section 22.1310 by removing from paragraph (a)(1) 
``$100,000'' and adding ``$150,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.703-2  [Amended]

0
62. Amend section 25.703-2 by removing from paragraph (a)(2) ``$3,000'' 
and adding ``$3,500'' in its place.


25.703-4  [Amended]

0
63. Amend section 25.703-4 by removing from paragraphs (c)(5)(ii), 
(c)(7)(iii), and (c)(8)(iii) ``$3,000'' and adding ``$3,500'' in their 
places.

PART 26--OTHER SOCIOECONOMIC PROGRAMS


26.404  [Amended]

0
64. Amend section 26.404 by removing ``$25,000'' and adding ``$30,000'' 
in its place.

PART 28--BONDS AND INSURANCE


28.102-1  [Amended]

0
65. Amend section 28.102-1 by removing from paragraph (b)(1) 
``$30,000'' and adding ``$35,000'' in its place.


28.102-2  [Amended]

0
66. Amend section 28.102-2 by removing from paragraph (c) ``$30,000'' 
and adding ``$35,000'' in its place.


28.102-3  [Amended]

0
67. Amend section 28.102-3 by removing from paragraph (b) ``$30,000'' 
and adding ``$35,000'' in its place.

PART 32--CONTRACT FINANCING


32.104  [Amended]

0
68. Amend section 32.104 by removing from paragraphs (d)(2)(i) and (ii) 
``$2.5 million'' and adding ``$3 million'' in their places.

[[Page 70147]]

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES


42.709  [Amended]

0
69. Amend section 42.709 by removing from paragraph (b) ``$700,000'' 
and adding ``$750,000'' in its place.


42.709-6  [Amended]

0
70. Amend section 42.709-6 by removing ``$700,000'' and adding 
``$750,000'' in its place.


42.1502  [Amended]

0
71. Amend section 42.1502 by removing from paragraph (e) ``$650,000'' 
and adding ``$700,000'' in its place (twice); and removing from 
paragraph (f) ``$30,000'' and adding ``$35,000'' in its place (twice).

PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT


50.102-1  [Amended]

0
72. Amend section 50.102-1 by removing from paragraph (b) ``$65,000'' 
and adding ``$70,000'' in its place.


50.102-3  [Amended]

0
73. Amend section 50.102-3 by removing from paragraph (b)(4) ``$31.5 
million'' and adding ``$35 million'' in its place; and removing from 
paragraphs (e)(1)(i) and (ii) ``$65,000'' and adding ``$70,000'' in 
their places.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
74. Amend section 52.203-13 by revising the date of clause; and 
removing from paragraph (d)(1) ``$5,000,000'' and adding ``$5.5 
million'' in its place.
    The revised text reads as follows:


52.203-13  Contractor Code of Business Ethics and Conduct

* * * * *

Contractor Code of Business Ethics and Conduct (Date)

* * * * *
0
75. Amend section 52.203-14 by revising the date of the clause; and 
removing from the introductory text of paragraph (d) ``$5,000,000'' and 
adding ``$5.5 million'' in its place.
    The revised text reads as follows:


52.203-14  Display of Hotline Poster(s).

* * * * *

Display of Hotline Poster(s) (Date)

* * * * *
0
76. Amend section 52.204-10 by revising the date of the clause; 
removing from paragraphs (d)(2) and (3) ``$25,000'' and adding 
``$30,000'' in their places; and revising paragraph (e).
    The revised text reads as follows:


52.204-10  Reporting Executive Compensation and First-Tier Subcontract 
Awards.

* * * * *

Reporting Executive Compensation and First-Tier Subcontract Awards 
(Date)

* * * * *
    (e) The Contractor shall not split or break down first-tier 
subcontract awards to a value less than $30,000 to avoid the reporting 
requirements in paragraph (d) of this clause.
* * * * *
0
77. Amend section 52.209-5 by revising the date of the provision; and 
removing from paragraph (a)(1)(i)(D) ``$3,000'' and adding ``$3,500'' 
in its place.
    The revised text reads as follows:


52.209-5  Certification Regarding Responsibility Matters.

* * * * *

Certification Regarding Responsibility Matters (Date)

* * * * *
0
78. Amend section 52.209-6 by revising the date of the clause; and 
removing from paragraphs (b), (c), and (e)(1) ``$30,000'' and adding 
``$35,000'' in their places.
    The revised text reads as follows:


52.209-6  Protecting the Government's Interest When Subcontracting with 
Contractors Debarred, Suspended, or Proposed for Debarment.

* * * * *

Protecting the Government's Interest When Subcontracting With 
Contractors Debarred, Suspended, or Proposed for Debarment (Date)

* * * * *
0
79. Amend section 52.212-1 by revising the date of the provision; and 
removing from paragraph (j) ``$3,000'' and adding ``$3,500'' in its 
place (twice).
    The revised text reads as follows:


52.212-1  Instructions to Offerors--Commercial Items.

* * * * *

Instructions to Offerors--Commercial Items (Date)

* * * * *
0
80. Amend section 52.212-3 by revising the date of the provision; and 
removing from paragraphs (h)(4) and (o)(2)(iii) ``$3,000'' and adding 
``$3,500'' in their places. The revised text reads as follows:


52.212-3  Offeror Representations and Certifications--Commercial Items.

* * * * *

Offeror Representations and Certifications--Commercial Items (Date)

* * * * *
0
81. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Revising paragraphs (b)(2), (b)(4), (b)(8), (b)(17)(i), adding 
paragraph (b)(17)(iv), and revising paragraphs (b)(29), (b)(31), and 
(b)(33);
0
c. Revising paragraph (c)(8);
0
d. Revising paragraph (e)(1)(i);
0
e. Removing from paragraph (e)(1)(ii) ``$650,000'' and adding 
``$700,000'' in its place;
0
f. Revising paragraphs (e)(1)(v), (vii), (xiii), and (xv); and
0
g. Amending Alternate II by revising the date of Alternate II and 
paragraphs (e)(1)(ii)(A), (C), (E), (L) and (M).
    The revisions read as follows:


52.212-5  Contract Terms and Conditions Required to Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders--Commercial Items (Date)

* * * * *
    (b) * * *
    _(2) 52.203-13, Contractor Code of Business Ethics and Conduct 
(Date) (41 U.S.C. 3509).
* * * * *
    _(4) 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards (Date) (Pub. L. 109-282) (31 U.S.C. 6101 note).
* * * * *
    _(8) 52.209-6, Protecting the Government's Interest When 
Subcontracting with Contractors Debarred, Suspended, or Proposed for 
Debarment. (Date) (31 U.S.C. 6101 note).
* * * * *
    _(17)(i) 52.219-9, Small Business Subcontracting Plan (Date) (15 
U.S.C. 637(d)(4)).
* * * * *
    (iv) Alternate III (Date) of 52.219-9.
* * * * *
    _(29) 52.222-35, Equal Opportunity for Veterans (Date) (38 
U.S.C. 4212).
* * * * *
    _(31) 52.222-37, Employment Reports on Veterans (Date) (38 
U.S.C. 4212).
* * * * *
    _(33) 52.222-54, Employment Eligibility Verification (Date). 
(Executive Order 12989). (Not applicable to the acquisition of 
commercially available off-the-shelf items or certain other types of 
commercial items as prescribed in 22.1803.)
* * * * *

[[Page 70148]]

    (c) * * *

    (8) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations (Date) (42 U.S.C. 1792).
* * * * *
    (e)(1) * * *

    (i) 52.203-13, Contractor Code of Business Ethics and Conduct 
(Date) (41 U.S.C. 3509).
* * * * *
    (v) 52.222-35, Equal Opportunity for Veterans (Date) (38 U.S.C. 
4212).
* * * * *
    (vii) 52.222-37, Employment Reports on Veterans (Date) (38 
U.S.C. 4212).
* * * * *
    (xiii) 52.222-54, Employment Eligibility Verification (Date) 
(Executive Order 12989).
* * * * *
    (xv) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations (Date) (42 U.S.C. 1792).

    Flow down required in accordance with paragraph (e) of FAR clause 
52.226-6.
* * * * *
    Alternate II (Date). * * *
* * * * *
    (e)(1) * * *
    (ii) * * *

    (A) 52.203-13, Contractor Code of Business Ethics and Conduct 
(Date) (41 U.S.C. 3509).
* * * * *
    (C) 52.219-8, Utilization of Small Business Concerns (Date) (15 
U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further 
subcontracting opportunities. If the subcontract (except 
subcontracts to small business concerns) exceeds $700,000 ($1.5 
million for construction of any public facility), the subcontractor 
must include 52.219-8 in lower tier subcontracts that offer 
subcontracting opportunities.
* * * * *
    (E) 52.222-35, Equal Opportunity for Veterans (Date) (38 U.S.C. 
4212).
* * * * *
    (L) Employment Eligibility Verification (Date) (Executive Order 
12989).
    (M) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations. (Date) (42 U.S.C. 1792). Flow down required in 
accordance with paragraph (e) of FAR clause 52.226-6.
* * * * *
0
82. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Revising paragraphs (a)(2)(viii), (b)(1)(i), (iv), (vi), (xi), and 
(b)(2)(i).
    The revised text reads as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (Date)

    (a) * * *
    (2) * * *

    (viii) 52.244-6, Subcontracts for Commercial Items (Date).
* * * * *
    (b) * * *
    (1) * * *

    (i) 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards (Date) (Pub. L. 109-282) (31 U.S.C. 6101 note) 
(Applies to contracts valued at $30,000 or more).
* * * * *
    (iv) 52.222-35, Equal Opportunity for Veterans (Date) (38 U.S.C. 
4212) (applies to contracts of $150,000 or more).
* * * * *
    (vi) 52.222-37, Employment Reports on Veterans (Date) (38 U.S.C. 
4212) (applies to contracts of $150,000 or more).
* * * * *
    (xi) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations (Date) (42 U.S.C. 1792) (Applies to contracts greater 
than $30,000 that provide for the provision, the service, or the 
sale of food in the United States).
* * * * *
    (2) * * *

    (i) 52.209-6, Protecting the Government's Interest When 
Subcontracting with Contractors Debarred, Suspended, or Proposed for 
Debarment (Date) (Applies to contracts over $35,000).
* * * * *
0
83. Amend section 52.219-9 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (d)(9) and paragraph (l)(2)(i)(C) 
``$650,000'' and adding ``$700,000'' in their places;
0
c. Amend Alternate III by--
0
1. Revising the date of Alternate III;
0
2. Removing from paragraph (l)(2)(C) ``$550,000'' and ``$1,000,000'' 
and adding ``$700,000'' and ``$1.5 million'' in their places, 
respectively.
    The revised text reads as follows:


52.219-9  Small Business Subcontracting Plan.

* * * * *

Small Business Subcontracting Plan (Date)

* * * * *
    Alternate III (Date).

* * ** * * * *
0
84. Amend section 52.222-35 by revising the date of the clause; and 
removing from paragraph (c) ``$100,000'' and adding ``$150,000'' in its 
place.
    The revised text reads as follows:


52.222-35  Equal Opportunity for Veterans.

* * * * *

Equal Opportunity for Veterans (Date)

* * * * *
0
85. Amend section 52.222-37 by revising the date of the clause; and 
removing from paragraph (g) ``$100,000'' and adding ``$150,000'' in its 
place. The revised text reads as follows:


52.222-37  Employment Reports on Veterans.

* * * * *

Employment Reports on Veterans (Date)

* * * * *
0
86. Amend section 52.222-54 by revising the date of the clause; and 
removing from paragraph (e)(2) ``$3,000'' and adding ``$3,500'' in its 
place. The revised text reads as follows:


52.222-54  Employment Eligibility Verification.

* * * * *

Employment Eligibility Verification (Date)

* * * * *
0
87. Amend section 52.225-25 by revising the date of the provision; and 
removing from paragraph (c)(3) ``$3,000'' and adding ``$3,500'' in its 
place.
    The revised text reads as follows:


52.225-25  Prohibition on Contracting With Entities Engaging in Certain 
Activities or Transactions Relating to Iran--Representation and 
Certifications.

* * * * *

Prohibition on Contracting With Entities Engaging in Certain Activities 
or Transactions Relating to Iran--Representation and Certifications 
(Date)

* * * * *
0
88. Amend section 52.226-6 by revising the date of the clause; and 
removing from paragraph (e) ``$25,000'' and adding ``$30,000'' in its 
place.
    The revised text reads as follows:


52.226-6  Promoting Excess Food Donation to Nonprofit Organizations.

* * * * *

Promoting Excess Food Donation to Nonprofit Organizations (Date)

* * * * *
0
89. Amend section 52.244-6 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (c)(1)(i);
0
c. Removing from paragraph (c)(1)(iii) ``$650,000'' and adding 
``$700,000'' in its place; and
0
d. Revising paragraphs (c)(1)(v) and (vii).
    The revised text reads as follows:


52.244-6  Subcontracts for Commercial Items.

* * * * *

[[Page 70149]]

Subcontracts for Commercial Items (Date)

* * * * *
    (c)(1) * * *

    (i) 52.203-13, Contractor Code of Business Ethics and Conduct 
(Date) (41 U.S.C. 3509), if the subcontract exceeds $5.5 million and 
has a performance period of more than 120 days. In altering this 
clause to identify the appropriate parties, all disclosures of 
violation of the civil False Claims Act or of Federal criminal law 
shall be directed to the agency Office of the Inspector General, 
with a copy to the Contracting Officer.
* * * * *
    (v) 52.222-35, Equal Opportunity for Veterans (Date) (38 U.S.C. 
4212(a));
* * * * *
    (vii) 52.222-37, Employment Reports on Veterans (Date) (38 
U.S.C. 4212).
* * * * *
0
90. Amend section 52.248-3 by revising the date of the clause; and 
removing from paragraph (h) ``$65,000'' and adding ``$70,000'' in its 
place. The revised text reads as follows:


52.248-3  Value Engineering--Construction.

* * * * *

Value Engineering--Construction (Date)

* * * * *

PART 53--FORMS


53.301-294  Subcontracting Report for Individual Contracts.

0
91. Revise section 53.301-294 to read as follows:

BILLING CODE 6820-14-P

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[FR Doc. 2014-27512 Filed 11-24-14; 8:45 am]
BILLING CODE 6820-EP-C
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