Federal Acquisition Regulation; Federal Acquisition Circular 2005-83; Introduction, 38291-38293 [2015-16205]
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Vol. 80
Thursday,
No. 127
July 2, 2015
Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
asabaliauskas on DSK5VPTVN1PROD with RULES
48 CFR Chapter 1
Federal Acquisition Regulation; Rules
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38292
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
ACTION:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
SUMMARY:
Summary presentation of final
rules.
48 CFR Chapter 1
[Docket No. FAR 2015–0051, Sequence
No. 3]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–83;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
This document summarizes
the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2005–83. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC. The FAC, including the SECG, is
available via the Internet at https://
www.regulations.gov.
For effective dates see the
separate documents, which follow.
DATES:
The
analyst whose name appears in the table
below in relation to the FAR case.
Please cite FAC 2005–83 and the
specific FAR case number. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat at 202–501–4755.
FOR FURTHER INFORMATION CONTACT:
RULES LISTED IN FAC 2005–83
Item
Subject
I .....................
II ....................
Inflation Adjustment of Acquisition—Related Thresholds ..............................................................
Prohibition on Contracting with Inverted Domestic Corporations—Representation and Notification.
Update to Product and Service Codes ..........................................................................................
Clarification on Justification for Urgent Noncompetitive Awards Exceeding One Year ................
Prohibition on Contracting with Inverted Domestic Corporations ..................................................
Permanent Authority for Use of Simplified Acquisition Procedures for Certain Commercial
Items.
Technical Amendments ..................................................................................................................
III ...................
IV ..................
V ...................
VI ..................
VII .................
asabaliauskas on DSK5VPTVN1PROD with RULES
SUPPLEMENTARY INFORMATION:
Summaries for each FAR rule follow.
For the actual revisions and/or
amendments made by these rules, refer
to the specific item numbers and
subjects set forth in the documents
following these item summaries. FAC
2005–83 amends the FAR as specified
below:
Item I—Inflation Adjustment of
Acquisition-Related Thresholds (FAR
Case 2014–022)
This final rule amends the FAR to
implement 41 U.S.C. 1908, which
requires an adjustment every five years
of acquisition-related thresholds for
inflation using the Consumer Price
Index for all urban consumers, except
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 also use the same
methodology to adjust nonstatutory FAR
acquisition-related thresholds.
This is the third review of FAR
acquisition-related thresholds. The
Councils published a proposed rule in
the Federal Register at 79 FR 70141 on
November 25, 2014.
There is no change in the final rule
from the proposed frequently-used
thresholds identified in the proposed
rule:
VerDate Sep<11>2014
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Jkt 235001
FAR Case
• The micro-purchase base threshold
of $3,000 (FAR 2.101) is increased to
$3,500.
• The simplified acquisition
threshold (FAR 2.101) of $150,000 is
unchanged.
• The FedBizOpps preaward and
post-award notices (FAR part 5) remain
at $25,000 because of trade agreements.
• The threshold for use of simplified
acquisition procedures for acquisition of
commercial items (FAR 13.500) is raised
from $6.5 million to $7 million.
• The cost or pricing data threshold
(FAR 15.403–4) and the statutorily
equivalent Cost Accounting Standard
threshold are raised from $700,000 to
$750,000.
• The prime contractor
subcontracting plan (FAR 19.702) floor
is raised from $650,000 to $700,000, and
the construction threshold of $1.5
million stays the same.
• The threshold for reporting first-tier
subcontract information including
executive compensation will increase
from $25,000 to $30,000 (FAR subpart
4.14 and 52.204–10).
Item II—Prohibition on Contracting
With Inverted Domestic Corporations—
Representation and Notification (FAR
Case 2015–006)
This final rule amends the provision
and clause of the FAR that address the
continuing Government-wide statutory
PO 00000
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Analyst
2014–022
2015–006
Jackson.
Jackson.
2015–008
2014–020
2014–017
2015–010
Jackson.
Jackson.
Jackson.
Jackson.
........................
prohibition (in effect since fiscal year
2008) on the award of contracts using
appropriated funds to any foreign
incorporated entity that is an inverted
domestic corporation (under section 835
of the Homeland Security Act of 2002,
codified at 6 U.S.C. 395) or to any
subsidiary of such entity. In particular,
this rule modifies the existing
representation at FAR 52.209–2 and
adds a requirement in the clause at
52.209–10 to notify the contracting
officer if the contractor becomes an
inverted domestic corporation, or a
subsidiary of an inverted domestic
corporation, during performance of the
contract.
This rule will not have any significant
effect on most contractors, because few
contractors are expected to become an
inverted domestic corporation or a
subsidiary of an inverted domestic
corporation during contract
performance. Small business concerns
are particularly unlikely to have been
incorporated in the United States and
then reincorporated in a tax haven.
Item III—Update to Product and
Service Codes (FAR Case 2015–008)
DoD, GSA, and NASA are revising the
FAR to update the descriptions of the
Federal product and service codes to
conform to the Federal Procurement
Data System Product and Service Codes
Manual, August 2011 Edition. There is
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02JYR3
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
no change to the groups covered, and
the new descriptions better reflect
product coverage.
This final rule is not required to be
published for public comment, because
it does not change the Federal Supply
Groups covered, but just updates the
descriptions of the listed product
service groups to reflect the current
Product and Service Codes Manual. It
does not impact which products are
subject to the service contract labor
standards or trade agreements.
asabaliauskas on DSK5VPTVN1PROD with RULES
Item IV—Clarification on Justification
for Urgent Noncompetitive Awards
Exceeding One Year (FAR Case 2014–
020)
DoD, GSA, and NASA are issuing a
final rule amending the FAR to clarify
when a justification for noncompetitive
contracts based on urgency, exceeding
one year, is needed. The rule comes as
a response to Government
Accountability Office (GAO) report
GAO–14–304, entitled Federal
Contracting: Noncompetitive Contracts
Based on Urgency Need Additional
Oversight, dated March 2014.
This rule is not expected to have a
significant impact on small businesses.
Contracting officers will benefit from
this rule because it clarifies when
determinations of exceptional
circumstances are needed when
awarding a noncompetitive contract on
the basis of unusual and compelling
urgency, exceeding one year, either at
time of award or modified after contract
award.
Item V—Prohibition on Contracting
With Inverted Domestic Corporations
(FAR Case 2014–017)
This rule converts to a final rule,
without change, an interim rule that
amended the provisions of the FAR that
address the continuing
Governmentwide statutory prohibition
(in effect since fiscal year 2008) on the
award of contracts using appropriated
funds to any foreign incorporated entity
that is an inverted domestic corporation
(under section 835 of the Homeland
Security Act of 2002, codified at 6
U.S.C. 395) or to any subsidiary of such
entity. The interim rule amended FAR
9.108 to revise the FAR coverage,
including the language of solicitation
provisions and contract clauses, so that
it more clearly reflects the ongoing,
continuing nature of the statutory
prohibition on contracting with inverted
domestic corporations and their
subsidiaries.
This rule does not have an effect on
small business because this rule will
only impact an offeror that is a foreign
incorporated entity that is treated as an
VerDate Sep<11>2014
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Jkt 235001
inverted domestic corporation and
wants to do business with the
Government. Small business concerns
are unlikely to have been incorporated
in the United States and then
reincorporated in a tax haven.
Item VI—Permanent Authority for Use
of Simplified Acquisition Procedures
for Certain Commercial Items (FAR
Case 2015–010)
This is a final rule to amend FAR
subparts 13.5 and 18.2 to implement
section 815 of the Carl Levin and
Howard P. ‘Buck’ McKeon National
Defense Authorization Act for Fiscal
Year 2015 (Pub. L. 113–291). Section
815 amends section 4202(e) of the
Clinger-Cohen Act of 1996 (Divisions D
and E of Pub. L. 104–106; 10 U.S.C.
2304 note) to make permanent the test
program for special simplified
procedures for purchases of commercial
items greater than the simplified
acquisition threshold, but not exceeding
$6.5 million ($12 million for certain
acquisitions). This final rule is not
required to be published for public
comment because it makes permanent a
statutory authority that currently exists
within the FAR. The rule will not have
a significant impact on small business
or on Government contracting officers.
Item VII—Technical Amendments
Editorial changes are made at FAR
15.404–2(b)(2), 52.204–16(b)(3), 52.204–
18(d), and 52.212–5(e)(1)(ii)(E).
Dated: June 18, 2015.
William Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC)
2005–83 is issued under the authority of
the Secretary of Defense, the
Administrator of General Services, and
the Administrator for the National
Aeronautics and Space Administration.
Unless otherwise specified, all
Federal Acquisition Regulation (FAR)
and other directive material contained
in FAC 2005–83 is effective July 2, 2015
except for item I which is effective
October 1, 2015; item II which is
effective November 1, 2015; and items
III, IV, and VI which are effective
August 3, 2015.
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38293
Dated: June 25, 2015.
LeAntha D. Sumpter,
Acting Director of Defense Procurement and
Acquisition Policy.
Dated: June 25, 2015.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO,
Office of Acquisition Policy, U.S. General
Services Administration.
Dated: June 24, 2015.
William P. McNally,
Assistant Administrator, Office of
Procurement National Aeronautics and Space
Administration.
[FR Doc. 2015–16205 Filed 7–1–15; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION; 48 CFR
Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13,
15, 16, 17, 19, 22, 25, 28, 30, 42, 50, 52,
and 53
[FAC 2005–83; FAR Case 2014–022; Item
I; 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: Final rule.
AGENCY:
DoD, GSA, and NASA are
issuing this final rule amending the
Federal Acquisition Regulation (FAR) to
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 (formerly DavisBacon Act), Service Contract Labor
Standards statute, and trade agreements
thresholds. DoD, GSA, and NASA have
also used the same methodology to
adjust nonstatutory FAR acquisitionrelated thresholds.
DATES: Effective: October 1, 2015.
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
FAC 2005–83, FAR Case 2014–022.
SUMMARY:
E:\FR\FM\02JYR3.SGM
02JYR3
]]>Agencies
[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)]
[Rules and Regulations]
[Pages 38291-38293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16205]
[[Page 38291]]
Vol. 80
Thursday,
No. 127
July 2, 2015
Part III
Department of Defense
-----------------------------------------------------------------------
General Services Administration
-----------------------------------------------------------------------
National Aeronautics and Space Administration
-----------------------------------------------------------------------
48 CFR Chapter 1
Federal Acquisition Regulation; Rules
Federal Register / Vol. 80 , No. 127 / Thursday, July 2, 2015 / Rules
and Regulations
[[Page 38292]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR 2015-0051, Sequence No. 3]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-83; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final rules.
-----------------------------------------------------------------------
SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council (Councils) in this Federal
Acquisition Circular (FAC) 2005-83. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC. The FAC, including
the SECG, is available via the Internet at https://www.regulations.gov.
DATES: For effective dates see the separate documents, which follow.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. Please cite FAC 2005-83 and
the specific FAR case number. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat at 202-501-
4755.
Rules Listed in FAC 2005-83
------------------------------------------------------------------------
Item Subject FAR Case Analyst
------------------------------------------------------------------------
I............... Inflation Adjustment 2014-022 Jackson.
of Acquisition--
Related Thresholds.
II.............. Prohibition on 2015-006 Jackson.
Contracting with
Inverted Domestic
Corporations--Repre
sentation and
Notification.
III............. Update to Product 2015-008 Jackson.
and Service Codes.
IV.............. Clarification on 2014-020 Jackson.
Justification for
Urgent
Noncompetitive
Awards Exceeding
One Year.
V............... Prohibition on 2014-017 Jackson.
Contracting with
Inverted Domestic
Corporations.
VI.............. Permanent Authority 2015-010 Jackson.
for Use of
Simplified
Acquisition
Procedures for
Certain Commercial
Items.
VII............. Technical Amendments .............. ................
------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these rules, refer to the
specific item numbers and subjects set forth in the documents following
these item summaries. FAC 2005-83 amends the FAR as specified below:
Item I--Inflation Adjustment of Acquisition-Related Thresholds (FAR
Case 2014-022)
This final rule amends the FAR to implement 41 U.S.C. 1908, which
requires an adjustment every five years of acquisition-related
thresholds for inflation using the Consumer Price Index for all urban
consumers, except 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 also use the same methodology to adjust nonstatutory FAR
acquisition-related thresholds.
This is the third review of FAR acquisition-related thresholds. The
Councils published a proposed rule in the Federal Register at 79 FR
70141 on November 25, 2014.
There is no change in the final rule from the proposed frequently-
used thresholds identified in the proposed rule:
The micro-purchase base threshold of $3,000 (FAR 2.101) is
increased to $3,500.
The simplified acquisition threshold (FAR 2.101) of
$150,000 is unchanged.
The FedBizOpps preaward and post-award notices (FAR part
5) remain at $25,000 because of trade agreements.
The threshold for use of simplified acquisition procedures
for acquisition of commercial items (FAR 13.500) is raised from $6.5
million to $7 million.
The cost or pricing data threshold (FAR 15.403-4) and the
statutorily equivalent Cost Accounting Standard threshold are raised
from $700,000 to $750,000.
The prime contractor subcontracting plan (FAR 19.702)
floor is raised from $650,000 to $700,000, and the construction
threshold of $1.5 million stays the same.
The threshold for reporting first-tier subcontract
information including executive compensation will increase from $25,000
to $30,000 (FAR subpart 4.14 and 52.204-10).
Item II--Prohibition on Contracting With Inverted Domestic
Corporations--Representation and Notification (FAR Case 2015-006)
This final rule amends the provision and clause of the FAR that
address the continuing Government-wide statutory prohibition (in effect
since fiscal year 2008) on the award of contracts using appropriated
funds to any foreign incorporated entity that is an inverted domestic
corporation (under section 835 of the Homeland Security Act of 2002,
codified at 6 U.S.C. 395) or to any subsidiary of such entity. In
particular, this rule modifies the existing representation at FAR
52.209-2 and adds a requirement in the clause at 52.209-10 to notify
the contracting officer if the contractor becomes an inverted domestic
corporation, or a subsidiary of an inverted domestic corporation,
during performance of the contract.
This rule will not have any significant effect on most contractors,
because few contractors are expected to become an inverted domestic
corporation or a subsidiary of an inverted domestic corporation during
contract performance. Small business concerns are particularly unlikely
to have been incorporated in the United States and then reincorporated
in a tax haven.
Item III--Update to Product and Service Codes (FAR Case 2015-008)
DoD, GSA, and NASA are revising the FAR to update the descriptions
of the Federal product and service codes to conform to the Federal
Procurement Data System Product and Service Codes Manual, August 2011
Edition. There is
[[Page 38293]]
no change to the groups covered, and the new descriptions better
reflect product coverage.
This final rule is not required to be published for public comment,
because it does not change the Federal Supply Groups covered, but just
updates the descriptions of the listed product service groups to
reflect the current Product and Service Codes Manual. It does not
impact which products are subject to the service contract labor
standards or trade agreements.
Item IV--Clarification on Justification for Urgent Noncompetitive
Awards Exceeding One Year (FAR Case 2014-020)
DoD, GSA, and NASA are issuing a final rule amending the FAR to
clarify when a justification for noncompetitive contracts based on
urgency, exceeding one year, is needed. The rule comes as a response to
Government Accountability Office (GAO) report GAO-14-304, entitled
Federal Contracting: Noncompetitive Contracts Based on Urgency Need
Additional Oversight, dated March 2014.
This rule is not expected to have a significant impact on small
businesses. Contracting officers will benefit from this rule because it
clarifies when determinations of exceptional circumstances are needed
when awarding a noncompetitive contract on the basis of unusual and
compelling urgency, exceeding one year, either at time of award or
modified after contract award.
Item V--Prohibition on Contracting With Inverted Domestic Corporations
(FAR Case 2014-017)
This rule converts to a final rule, without change, an interim rule
that amended the provisions of the FAR that address the continuing
Governmentwide statutory prohibition (in effect since fiscal year 2008)
on the award of contracts using appropriated funds to any foreign
incorporated entity that is an inverted domestic corporation (under
section 835 of the Homeland Security Act of 2002, codified at 6 U.S.C.
395) or to any subsidiary of such entity. The interim rule amended FAR
9.108 to revise the FAR coverage, including the language of
solicitation provisions and contract clauses, so that it more clearly
reflects the ongoing, continuing nature of the statutory prohibition on
contracting with inverted domestic corporations and their subsidiaries.
This rule does not have an effect on small business because this
rule will only impact an offeror that is a foreign incorporated entity
that is treated as an inverted domestic corporation and wants to do
business with the Government. Small business concerns are unlikely to
have been incorporated in the United States and then reincorporated in
a tax haven.
Item VI--Permanent Authority for Use of Simplified Acquisition
Procedures for Certain Commercial Items (FAR Case 2015-010)
This is a final rule to amend FAR subparts 13.5 and 18.2 to
implement section 815 of the Carl Levin and Howard P. `Buck' McKeon
National Defense Authorization Act for Fiscal Year 2015 (Pub. L. 113-
291). Section 815 amends section 4202(e) of the Clinger-Cohen Act of
1996 (Divisions D and E of Pub. L. 104-106; 10 U.S.C. 2304 note) to
make permanent the test program for special simplified procedures for
purchases of commercial items greater than the simplified acquisition
threshold, but not exceeding $6.5 million ($12 million for certain
acquisitions). This final rule is not required to be published for
public comment because it makes permanent a statutory authority that
currently exists within the FAR. The rule will not have a significant
impact on small business or on Government contracting officers.
Item VII--Technical Amendments
Editorial changes are made at FAR 15.404-2(b)(2), 52.204-16(b)(3),
52.204-18(d), and 52.212-5(e)(1)(ii)(E).
Dated: June 18, 2015.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2005-83 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 2005-83 is
effective July 2, 2015 except for item I which is effective October 1,
2015; item II which is effective November 1, 2015; and items III, IV,
and VI which are effective August 3, 2015.
Dated: June 25, 2015.
LeAntha D. Sumpter,
Acting Director of Defense Procurement and Acquisition Policy.
Dated: June 25, 2015.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy,
U.S. General Services Administration.
Dated: June 24, 2015.
William P. McNally,
Assistant Administrator, Office of Procurement National Aeronautics and
Space Administration.
[FR Doc. 2015-16205 Filed 7-1-15; 8:45 am]
BILLING CODE 6820-EP-P
