Federal Acquisition Regulation; Inflation Adjustment of Acquisition-Related Thresholds, 38293-38306 [2015-16206]
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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
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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:
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Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
SUPPLEMENTARY INFORMATION:
I. Background
This rule amends 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 also use the same
methodology to adjust nonstatutory FAR
acquisition-related thresholds.
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
79 FR 70141 on November 25, 2014. The
preamble to the proposed rule contained
detailed explanation of—
• What an acquisition-related
threshold is;
• What acquisition-related thresholds
are not subject to escalation adjustment
under this case;
• How the Defense Acquisition
Regulations Council and the Civilian
Agency Acquisition Council (Councils)
analyze statutory and non-statutory
acquisition-related thresholds; and
• The effect of this rule on the most
heavily-used thresholds.
Two respondents submitted
comments on the proposed rule, which
are addressed in the following section.
The final rule has been coordinated
with the Department of Labor and the
Small Business Administration in areas
of the regulation for which they are the
lead agency.
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the comments in the
development of the final rule. A
discussion of the comments is provided
as follows:
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A. Summary of Changes Between the
Proposed Rule and the Final Rule.
Although there were no changes
between the proposed rule and the final
rule as the result of public comments,
some of the thresholds in the final rule
are lower than proposed, due to lower
inflation than was projected at the time
of publication of the proposed rule.
There is no change in the final rule
from the proposed frequently-used
thresholds identified in the proposed
rule:
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• 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 $1,500,000
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 section 52.204–10).
The URL for the location of the
current matrix of threshold escalation is
provided at FAR 1.109(d).
B. Analysis of Public Comments
1. Inclusion of Specific Dollar
Thresholds in Clauses
Comment: One respondent was of the
opinion that when a dollar threshold is
stated in the body of the clause, the
threshold applies for the life of the
contract, but if the clause instead refers
to the threshold in the underlying FAR
text, the threshold in the clause would
automatically adjust when there was a
change to the threshold in the FAR text.
Response: The Councils note that the
Definitions clause at FAR 52.202–1, as
prescribed at FAR 2.201, is to be
included in all solicitations and
contracts that exceed the simplified
acquisition threshold. This clause
specifies that, with a few limited
exceptions, when a solicitation
provision or contract clause uses a word
or term that is defined in the FAR, the
word or term has the same meaning as
that definition in FAR 2.101 in effect at
the time the solicitation was issued.
Therefore, since the dollar value of the
simplified acquisition threshold is
included in the definition of ‘‘simplified
acquisition threshold’’ in FAR part 2,
the dollar threshold that is in effect at
the time of issuance of the solicitation
stays in effect for the life of the contract,
unless the contracting parties agree
otherwise.
Likewise, when a clause refers to a
threshold in the FAR that is not
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included in a definition, the Councils
generally presume that the threshold
stays fixed for the life of the contract,
unless the parties specify otherwise.
Therefore, it should not create
discrepancies, whether a clause
includes the dollar threshold, or
references a definition or other text in
the FAR to establish the value of the
threshold.
2. Rounding Methodology
Comment: One respondent noted an
apparent disproportionate inflation
adjustment between the lower and
higher dollar thresholds, particularly in
the under $1 million range. The
respondent suggested that Congress
should use smaller dollar intervals to
analyze the adjustment, or adjustments
more frequent than every five years.
Response: The Councils have adjusted
the thresholds in accordance with the
statutory requirement, and cannot use
different dollar intervals or adjustment
periods unless Congress amends the
statute.
C. Other Changes
1. Some Lower Thresholds in Final Rule
The proposed rule was based on a
projected CPI of 245 for March 2015.
The final rule is based on an actual CPI
of 236.119 for March 2015. The CPI as
of the end of March, six months before
the effective date of the rule, is used as
the cutoff in order to allow time for
approval and publication of the final
rule.
Because the actual CPI index for
March 2015 is about ten points lower
than the CPI index projected for that
date at the time of the proposed rule,
thresholds of at least 10 million dollars
are generally proportionally lower than
the proposed thresholds. Thresholds of
less than $10 million are frequently
unchanged, due to rounding.
2. Thresholds Related to Substantial
Bundling
The thresholds at FAR 7.107(b) are
nonstatutory thresholds passed based on
policy, which were previously escalated
by the FAR Council in October 2010.
However, subsequent to the publication
of the proposed rule under this FAR
case 2014–022, the Councils became
aware that the Small Business
Administration (SBA) issued a final rule
in the Federal Register at 78 FR 61114
on October 2, 2013, entitled
‘‘Acquisition process: Task and Delivery
Order Contracts, Bundling,
Consolidation’’, which incorporated
these thresholds into the SBA
regulations at 13 CFR 125.2(d)(2)(ii). It
is therefore now outside the authority of
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the FAR Council to escalate these
thresholds, unless SBA first revises their
regulations.
3. Cost Accounting Standards Threshold
By law (41 U.S.C. 1502(b)(1)(B)), the
threshold for application of the Cost
Accounting Standards equals the
threshold of cost or pricing data, as
escalated. The proposed rule included
escalation of the cost or pricing data
threshold from $700,000 to $750,000,
which is retained in the final rule.
Therefore, the final rule also includes
equivalent escalation of the Cost
Accounting Standards threshold at FAR
30.201–4 and the clauses at 52.230–1
through 52.230–5 from $700,000 to
$750,000.
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.
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IV. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared
a Final Regulatory Flexibility Analysis
(FRFA) consistent with the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. The
FRFA is summarized as follows:
This final rule amends 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
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.
There were no significant issues raised by
the public comments in response to the
initial regulatory flexibility analysis.
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This rule will likely affect to some extent
all small business concerns that submit offers
or are awarded contracts by the Federal
Government. However, most of the threshold
changes in this rule are not expected to have
any significant economic impact on small
business concerns because they 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 small dollar value
acquisitions, which are the acquisitions in
which small business concerns are most
likely to participate.
One threshold change in this rule that may
temporarily impact small business concerns
is the increase of the micro-purchase
threshold (FAR 2.101) from $3,000 to $3,500.
This will temporarily narrow the range of
acquisitions automatically set aside for small
business concerns, because the simplified
acquisition threshold of $150,000 will not
increase at this time (although it may
increase to $200,000 in 2020). To assess the
impact of the increase in the micro-purchase
threshold from $3,000 to $3,500, data was
requested from the Federal Procurement Data
System–Next Generation (FPDS–NG). For
Fiscal Year 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) went
to small business concerns. We 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.
There are no practical alternatives that will
accomplish the objectives of the statute.
Interested parties may obtain a copy
of the FRFA from the Regulatory
Secretariat. The Regulatory Secretariat
has submitted a copy of the FRFA to the
Chief Counsel for Advocacy of the Small
Business Administration.
V. Paperwork Reduction Act
The Paperwork Reduction Act does
apply. The 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; 9000–0027, titled: Value
Engineering Requirements; FAR
Sections Affected: Subparts 48.1 and
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38295
48.2; 52.248–2 and 52.248–3. 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, 28, 30, 42, 50, 52, and 53
Government procurement.
Dated: June 18, 2015.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA
amend 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 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, 28, 30, 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.
■
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; 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 revision reads as follows.
■
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2.101
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Definitions.
6.302–5
*
*
*
*
*
(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’’);
*
*
*
*
*
[Amended]
10. Amend section 6.302–5 by
removing from paragraphs (b)(4) and
(c)(2)(iii) ‘‘$20 million’’ and adding
‘‘$22 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 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 million’’ in their
places.
■
6.304
[Amended]
5. Amend section 4.605 by removing
from paragraphs (c)(2)(i) and (c)(2)(ii)
‘‘$25,000’’ and adding ‘‘$30,000’’ in
their places.
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 ‘‘$13.5 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 ‘‘$13.5 million’’, ‘‘$68 million’’,
and ‘‘$93 million’’ in their places,
respectively; and
■ d. Removing from paragraph (a)(4)
‘‘$62.5 million’’ and ‘‘$85.5 million’’
and adding ‘‘$68 million’’ and ‘‘$93
million’’ in their places, respectively.
4.1102
PART 7—ACQUISITION PLANNING
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.
■
PART 4—ADMINISTRATIVE MATTERS
4.605
[Amended]
■
[Amended]
6. Amend section 4.1102 by removing
from paragraph (a)(6) ‘‘$25,000’’ and
adding ‘‘$30,000’’ in its place.
■
4.1401
[Amended]
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:
■
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4.1403
Contract clause.
9. Amend section 6.204 by removing
from paragraph (b) ‘‘$20 million’’ and
adding ‘‘$22 million’’ in its place.
■
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Blanket purchase agreements
(a) * * *
(7) * * *
(v) Determination for a single-award
BPA exceeding $112 million, if
applicable (see (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 ‘‘$13.5 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 ‘‘$13.5 million’’, ‘‘$68
million’’ and ‘‘$93 million’’ in their
places, respectively; and
■ d. Removing from paragraph (d)(4)
‘‘$62.5 million’’ and ‘‘$85.5 million’’
and adding ‘‘$68 million’’ and ‘‘$93
million’’ in their places, respectively.
■
■
PART 9—CONTRACTOR
QUALIFICATIONS
9.104–5
[Amended]
19. Amend section 9.104–5 by
removing from paragraph (a)(2)
‘‘$3,000’’ and adding ‘‘$3,500’’ in its
place.
[Amended]
9.104–7
[Amended]
20. Amend section 9.104–7 by
removing from paragraphs (b) and (c)(1)
‘‘$500,000’’ and adding ‘‘$550,000’’ in
their places.
■
15. Amend section 7.107 by removing
from paragraph (b)(1) ‘‘$94 million’’ and
adding ‘‘$102 million’’ in its place; and
removing from paragraph (b)(2) ‘‘$9.4
million’’ and ‘‘$94 million’’ and adding
‘‘$10.2 million’’ and ‘‘$102 million’’ in
their places, respectively.
9.405–2
PART 8—REQUIRED SOURCES OF
SUPPLIES AND SERVICES
■
[Amended]
16. Amend section 8.404 by removing
from paragraph (b)(2) ‘‘$500,000’’ and
adding ‘‘$550,000’’ in its place.
■ 17. Amend section 8.405–3 by—
■ a. Removing from paragraphs (a)(3)(ii)
and (a)(3)(iii) ‘‘$103 million’’ and
■
[Amended]
21:24 Jul 01, 2015
14. Amend section 7.104 by—
a. Removing from paragraph
(d)(2)(i)(A) ‘‘$8 million’’ and adding ‘‘$9
million’’ in its place; and
■ b. Removing from paragraph
(d)(2)(i)(B) ‘‘$6 million’’ and adding
‘‘$6.5 million’’ in its place.
7.107
8.405–3
(BPAs).
■
[Amended]
■
■
8.404
PART 6—COMPETITION
REQUIREMENTS
VerDate Sep<11>2014
7.104
■
(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.
*
*
*
*
*
6.204
■
■
adding ‘‘$112 million’’ in their places;
and
■ b. Revising paragraph (a)(7)(v).
The revision reads as follows:
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[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]
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]
23. Amend section 9.407–2 by
removing from paragraph (a)(7)
‘‘$3,000’’ and adding ‘‘$3,500’’ in its
place.
■
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Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
9.409
[Amended]
13.201
24. Amend section 9.409 by removing
‘‘$30,000’’ and adding ‘‘$35,000’’ in its
place.
■
[Amended]
25. Amend section 10.001 by
removing from paragraph (d) ‘‘$5
million’’ and adding ‘‘$5.5 million’’ in
its place.
■
10.003
[Amended]
26. Amend section 10.003 by
removing ‘‘$5 million’’ and adding
‘‘$5.5 million’’ in its place.
■
27. Amend section 12.102 by
removing from the introductory text of
paragraph (f)(2) ‘‘$17.5 million’’ and
adding ‘‘$19 million’’ in its place.
■
12.203
[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.
■
PART 13—SIMPLIFIED ACQUISITION
PROCEDURES
13.000
[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.
■
13.003
[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
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.
■
■
13.005
15.407–2
[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 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.
■
■
[Amended]
35. Amend section 13.402 by
removing from paragraph (a) ‘‘$30,000’’
and adding ‘‘$35,000’’ in its place.
[Amended]
13.500
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 (c) ‘‘$12 million’’ and
adding ‘‘$13 million’’ in its place.
■
■
13.501
[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 ‘‘$13.5 million’’
in their places, respectively;
■ c. Removing from paragraph (a)(2)(iii)
’’$12.5 million’’, ‘‘$62.5 million’’, and
‘‘$85.5 million’’ and adding ‘‘$13.5
million’’, ‘‘$68 million’’, and ‘‘$93
million’’ in their places, respectively;
and
■ d. Removing from paragraph (a)(2)(iv)
’’$62.5 million’’ and ‘‘$85.5 million’’
and adding ‘‘$68 million’’ and ‘‘$93
million’’ in their places, respectively.
■
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 ‘‘$19
million’’ in its place.
■
15.403–4
13.106–1
■
[Amended]
32. Amend section 13.106–1 by
removing from paragraphs (c)(2) and (d)
‘‘$30,000’’ and adding ‘‘$25,000’’ in
their places.
■
VerDate Sep<11>2014
21:24 Jul 01, 2015
Jkt 235001
[Amended]
39. Amend section 15.403–4 by
removing from the introductory text of
paragraphs (a)(1) and (a)(1)(iii)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
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[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 ‘‘$13.5
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 ‘‘$13.5 million’’ in its place.
■
PART 16—TYPES OF CONTRACTS
16.503
[Amended]
31. Amend section 13.005 by
removing from paragraph (a)(2)
‘‘$30,000’’ and adding ‘‘$35,000’’ in its
place.
■
asabaliauskas on DSK5VPTVN1PROD with RULES
■
■
[Amended]
[Amended]
40. Amend section 15.404–3 by
removing from paragraph (c)(1)(i) ‘‘$12.5
million’’ and adding ‘‘$13.5 million’’ in
its place.
33. Amend section 13.201 by
removing from paragraph (g)(1)(i)
‘‘$15,000’’ and adding ‘‘$20,000’’ in its
place.
■
13.402
PART 12—ACQUISITION OF
COMMERCIAL ITEMS
12.102
15.404–3
13.303–5
PART 10—MARKET RESEARCH
10.001
[Amended]
38297
[Amended]
43. Amend section 16.503 by
removing from paragraph (b)(2) ‘‘$103
million’’ and adding ‘‘$112 million’’ in
its place; and removing from paragraph
(d)(1) ‘‘$12.5 million’’ and adding
‘‘$13.5 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 ‘‘$112 million’’ in
its place;
■ b. Removing from the introductory
text of paragraph (c)(1)(ii)(D)(3) ‘‘$103
million’’ and adding ‘‘$112 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 ‘‘$13.5 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;
■ 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;
■
■
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38298
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
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
‘‘13.5 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 ‘‘13.5 million’’, ‘‘68 million’’,
and ‘‘93 million’’ in their places,
respectively;
■ i. Removing from paragraph
(b)(2)(ii)(C)(4) ‘‘$62.5 million’’ and
‘‘$85.5 million’’ and adding ‘‘68
million’’ and ‘‘93 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.
‘‘$3,500’’ and ‘‘$20,000’’ in their places,
respectively; and
■ b. Removing from the end of
paragraph (b) ‘‘that:’’ and adding ‘‘that—
’’ in its place.
16.506
■
■
[Amended]
46. Amend section 16.506 by
removing from paragraphs (f) and (g)
‘‘$12.5 million’’ and adding ‘‘$13.5
million’’ in their places; and removing
from paragraph (h) ‘‘$5 million’’ and
adding ‘‘5.5 million’’ in its place.
■
19.702
[Amended]
52. Amend section 19.702 by
removing from paragraphs (a)(1) and
(a)(2) ‘‘$650,000’’ and adding
‘‘$700,000’’ in their places.
■
19.704
[Amended]
53. Amend section 19.704 by
removing from paragraph (a)(9)
‘‘$650,000’’ and adding ‘‘$700,000’’ in
its place.
■
19.708
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]
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]
PART 19—SMALL BUSINESS
PROGRAMS
PART 22—APPLICATION OF LABOR
LAWS TO GOVERNMENT
19.203
22.1103
[Amended]
PART 28—BONDS AND INSURANCE
[Amended]
64. Amend section 28.102–1 by
removing from paragraph (b)(1)
‘‘$30,000’’ and adding ‘‘$35,000’’ in its
place.
■
[Amended]
59. Amend section 22.1103 by
removing ‘‘$650,000’’ and adding
‘‘$700,000’’ in its place.
49. Amend section 19.203 by
removing from paragraph (b) ‘‘$3,000’’
and ‘‘$15,000’’ and adding ‘‘$3,500’’ and
‘‘$20,000’’ in their places, respectively.
19.502–1
■
[Amended]
65. Amend section 28.102–2 by
removing from paragraph (c) ‘‘$30,000’’
and adding ‘‘$35,000’’ in its place.
■
[Amended]
66. Amend section 28.102–3 by
removing from paragraph (b) ‘‘$30,000’’
and adding ‘‘$35,000’’ in its place.
■
PART 30—COST ACCOUNTING
STANDARDS ADMINISTRATION
30.201–4
[Amended]
67. Amend section 30.201–4 by
removing from paragraph (b)(1)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
■
PART 42—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
42.709
[Amended]
68. Amend section 42.709 by
removing from paragraph (b)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
■
■
■
asabaliauskas on DSK5VPTVN1PROD with RULES
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.
28.102–3
[Amended]
48. Amend section 17.500 by
removing from paragraph (c)(2)
‘‘$500,000’’ and adding ‘‘$550,000’’ in
its place.
■
[Amended]
■
28.102–2
[Amended]
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.
[Amended]
25.703–4
19.805–1
19.1306
17.500
62. Amend section 25.703–2 by
removing from paragraph (a)(2)
‘‘$3,000’’ and adding ‘‘$3,500’’ in its
place.
■
17.108
47. Amend section 17.108 by
removing from paragraph (a) ‘‘$12.5
million’’ and adding ‘‘$13.5 million’’ in
its place; and removing from paragraph
(b) ‘‘$125 million’’ and adding ‘‘$135.5
million’’ in its place.
[Amended]
■
54. Amend section 19.708 by
removing from paragraph (b)(1)
‘‘$650,000’’ and adding ‘‘$700,000’’ in
its place.
■
PART 17—SPECIAL CONTRACTING
METHODS
■
25.703–2
28.102–1
[Amended]
56. Amend section 19.808–1 by
removing from paragraph (a) ‘‘$20
million’’ and adding ‘‘$22 million’’ in
its place.
[Amended]
PART 25—FOREIGN ACQUISITION
[Amended]
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]
21:24 Jul 01, 2015
[Amended]
60. Amend section 22.1303 by
removing from paragraphs (a) and (c)
‘‘$100,000’’ and adding ‘‘$150,000’’ in
their places.
22.1310
[Amended]
61. Amend section 22.1310 by
removing from paragraph (a)(1)
‘‘$100,000’’ and adding ‘‘$150,000’’ in
its place.
■
51. Amend section 19.502–2 by—
a. Removing from paragraph (a)
‘‘$3,000’’ and ‘‘$15,000’’ and adding
■
■
VerDate Sep<11>2014
22.1303
Jkt 235001
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42.709–6
[Amended]
69. Amend section 42.709–6 by
removing ‘‘$700,000’’ and adding
‘‘$750,000’’ in its place.
■
42.1502
[Amended]
70. 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).
■
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Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
38299
PART 50—EXTRAORDINARY
CONTRACTUAL ACTIONS AND THE
SAFETY ACT
‘‘$3,000’’ and adding ‘‘$3,500’’ in its
place.
The revision reads as follows:
(e)(1)(ii)(A), (e)(1)(ii)(C), (e)(1)(ii)(F), and
(e)(1)(ii)(M).
The revisions read 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.
[Amended]
71. Amend section 50.102–1 by
removing from paragraph (b) ‘‘$65,000’’
and adding ‘‘$70,000’’ in its place.
■
50.102–3
[Amended]
72. Amend section 50.102–3 by
removing from paragraph (b)(4) ‘‘$31.5
million’’ and adding ‘‘$34 million’’ in
its place; and removing from paragraphs
(e)(1)(i) and (e)(1)(ii) ‘‘$65,000’’ and
adding ‘‘$70,000’’ in their places.
■
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
73. 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 revision reads as follows:
■
52.203–13 Contractor Code of Business
Ethics and Conduct
*
*
*
*
*
*
*
*
*
*
Certification Regarding Responsibility
Matters (Oct 2015)
*
*
*
*
*
77. 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 revision reads as follows:
■
52.209–6 Protecting the Government’s
Interest When Subcontracting with
Contractors Debarred, Suspended, or
Proposed for Debarment.
*
*
*
*
*
*
*
*
*
*
78. 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 revision reads as follows:
*
*
*
*
74. 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 revision reads as follows:
52.212–1 Instructions to Offerors—
Commercial Items.
52.203–14
Display of Hotline Poster(s).
*
*
*
■
*
*
*
Display of Hotline Poster(s) (Oct 2015)
*
*
*
*
*
75. Amend section 52.204–10 by—
a. Revising the date of the clause;
b. Removing from paragraphs (d)(2)
and (d)(3) ‘‘$25,000’’ and adding
‘‘$30,000’’ in their places; and
■ c. Revising paragraph (e).
The revisions read as follows:
■
■
■
*
*
*
*
*
Instructions to Offerors—Commercial
Items (Oct 2015)
*
*
*
*
■ 79. 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 revision reads as follows:
52.212–3 Offeror Representations and
Certifications—Commercial Items.
*
*
*
*
*
52.204–10 Reporting Executive
Compensation and First-Tier Subcontract
Awards.
Offeror Representations and
Certifications—Commercial Items (Oct
2015)
*
*
*
*
*
*
asabaliauskas on DSK5VPTVN1PROD with RULES
Reporting Executive Compensation and
First-Tier Subcontract Awards (Oct
2015)
(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.
*
*
*
*
*
■ 76. Amend section 52.209–5 by
revising the date of the provision; and
removing from paragraph (a)(1)(i)(D)
VerDate Sep<11>2014
21:24 Jul 01, 2015
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*
*
*
*
■ 80. 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), (b)(17)(iv), (b)(29),
(b)(31), (b)(34), and (e)(1)(i);
■ c. Removing from paragraph (e)(1)(ii)
‘‘$650,000’’ and adding ‘‘$700,000’’ in
its place;
■ d. Revising paragraphs (e)(1)(vi),
(e)(1)(viii), and (e)(1)(xiv); and
■ e. Amending Alternate II by revising
the date of Alternate II and paragraphs
PO 00000
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*
*
*
*
Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Items
(Oct 2015)
*
*
*
(b) * * *
*
*
ll(2) 52.203–13, Contractor Code of
Business Ethics and Conduct (Oct 2015) (41
U.S.C. 3509).
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Protecting the Government’s Interest
When Subcontracting With Contractors
Debarred, Suspended, or Proposed for
Debarment (Oct 2015)
■
Contractor Code of Business Ethics and
Conduct (Oct 2015)
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
ll(4) 52.204–10, Reporting Executive
Compensation and First-Tier Subcontract
Awards (Oct 2015) (Pub. L. 109–282) (31
U.S.C. 6101 note).
ll(8) 52.209–6, Protecting the
Government’s Interest When Subcontracting
with Contractors Debarred, Suspended, or
Proposed for Debarment. (Oct 2015) (31
U.S.C. 6101 note).
ll(17)(i) 52.219–9, Small Business
Subcontracting Plan (Oct 2015) (15 U.S.C.
637(d)(4)).
*
ll(iv) Alternate III (Oct 2015) of 52.219–
9.
ll(29) 52.222–35, Equal Opportunity for
Veterans (Oct 2015) (38 U.S.C. 4212).
ll(31) 52.222–37, Employment Reports
on Veterans (Oct 2015) (38 U.S.C. 4212).
ll(34) 52.222–54, Employment
Eligibility Verification (Oct 2015). (E. O.
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.)
(e)(1) * * *
(i) 52.203–13, Contractor Code of Business
Ethics and Conduct (Oct 2015) (41 U.S.C.
3509).
*
*
*
*
*
(vi) 52.222–35, Equal Opportunity for
Veterans (Oct 2015) (38 U.S.C. 4212).
*
*
*
*
*
(viii) 52.222–37, Employment Reports on
Veterans (Oct 2015) (38 U.S.C. 4212).
*
*
*
*
*
(xiv) 52.222–54, Employment Eligibility
Verification (Oct 2015) (E. O. 12989).
*
*
*
*
*
Alternate II (Oct 2015). * * *
*
*
*
(e)(1) * * *
(ii) * * *
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*
*
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Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
(A) 52.203–13, Contractor Code of Business
Ethics and Conduct (Oct 2015) (41 U.S.C.
3509).
*
*
*
*
*
1. Revising the date of Alternate III;
2. Removing from paragraph
(l)(2)(i)(C) ‘‘$550,000’’ and ‘‘$1,000,000’’
and adding ‘‘$700,000’’ and ‘‘$1.5
million’’ in their places, respectively.
The revision reads as follows:
■
■
(C) 52.219–8, Utilization of Small Business
Concerns (Oct 2015) (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.
52.219–9
Plan.
*
*
*
*
*
*
*
*
*
*
*
*
Small Business Subcontracting Plan
(Oct 2015)
*
*
*
*
Alternate III (Oct 2015). * * *
*
*
*
*
*
*
(F) 52.222–35, Equal Opportunity for
Veterans (Oct 2015) (38 U.S.C. 4212).
*
*
Small Business Subcontracting
*
83. 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 revision reads as follows:
■
(M) 52.222–4, Employment Eligibility
Verification (Oct 2015) (Executive Order
12989).
*
*
*
*
*
81. Amend section 52.213–4 by
revising the date of the clause and
paragraphs (a)(2)(viii), (b)(1)(i),
(b)(1)(iv), (b)(1)(vi), and (b)(2)(i) to read
as follows:
52.222–35
Equal Opportunity for Veterans.
*
*
52.213–4 Terms and Conditions—
Simplified Acquisitions (Other Than
Commercial Items).
*
■
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Equal Opportunity for Veterans (Oct
2015)
*
*
*
*
84. 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 revision reads as follows:
Employment Reports on
*
*
*
*
*
*
*
85. 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 revision reads as follows:
*
*
asabaliauskas on DSK5VPTVN1PROD with RULES
*
*
*
*
*
(2) * * *
(i) 52.209–6, Protecting the Government’s
Interest When Subcontracting with
Contractors Debarred, Suspended, or
Proposed for Debarment (Oct 2015) (Applies
to contracts over $35,000).
*
*
*
*
*
■ 82. 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. Amending Alternate III by—
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*
*
*
*
Cost Accounting Standards Notices and
Certification (Oct 2015)
*
*
*
*
*
■ 88. Amend section 52.230–2 by
revising the date of the clause; and
removing from paragraph (d)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
The revision reads as follows:
52.230–2
*
Cost Accounting Standards.
*
*
*
Cost Accounting Standards (Oct 2015)
*
*
*
*
*
89. Amend section 52.230–3 by
revising the date of the clause; and
removing from paragraph (d)(2)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
The revision reads as follows:
■
*
*
■
(vi) 52.222–37, Employment Reports on
Veterans (Oct 2015) (38 U.S.C. 4212) (applies
to contracts of $150,000 or more).
*
*
*
*
*
52.230–1 Cost Accounting Standards
Notices and Certification.
52.230–3 Disclosure and Consistency of
Cost Accounting Practices.
52.222–54 Employment Eligibility
Verification.
*
*
*
*
*
87. Amend section 52.230–1 by
revising the date of the provision; and
removing from paragraph (a) ‘‘$700,000’’
and adding ‘‘$750,000’’ in its place.
The revision reads as follows:
Employment Reports on Veterans (Oct
2015)
*
(iv) 52.222–35, Equal Opportunity for
Veterans (Oct 2015) (38 U.S.C. 4212) (applies
to contracts of $150,000 or more).
*
*
■
*
*
(b) * * *
(1) * * *
(i) 52.204–10, Reporting Executive
Compensation and First-Tier Subcontract
Awards (Oct 2015) (Pub. L. 109–282) (31
U.S.C. 6101 note) (Applies to contracts
valued at $30,000 or more).
*
*
52.222–37
Veterans.
(a) * * *
(2) * * *
(viii) 52.244–6, Subcontracts for
Commercial Items (Oct 2015).
*
*
■
Terms and Conditions—Simplified
Acquisitions (Other Than Commercial
Items) (Oct 2015)
*
*
Prohibition on Contracting With
Entities Engaging in Certain Activities
or Transactions Relating to Iran—
Representation and Certifications (Oct
2015)
*
*
*
*
Employment Eligibility Verification
(Oct 2015)
*
*
*
*
*
86. 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 revision text reads as follows:
■
52.225–25 Prohibition on Contracting With
Entities Engaging in Certain Activities or
Transactions Relating to Iran—
Representation and Certifications.
*
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*
*
Fmt 4701
*
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*
*
*
*
Disclosure and Consistency of Cost
Accounting Practices (Oct 2015)
*
*
*
*
*
90. Amend section 52.230–4 by
revising the date of the clause; and
removing from paragraph (d)(2)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
The revision reads as follows:
■
52.230–4 Disclosure and Consistency of
Cost Accounting Practices-Foreign
Concerns.
*
*
*
*
*
Disclosure and Consistency of Cost
Accounting Practices-Foreign Concerns
(Oct 2015)
*
*
*
*
*
91. Amend section 52.230–5 by
revising the date of the clause; and
removing from paragraph (d)(2)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
The revision reads as follows:
■
E:\FR\FM\02JYR3.SGM
02JYR3
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
52.230–5 Cost Accounting Standards—
Educational Institution.
Subcontracts for Commercial Items (Oct
2015)
*
*
*
*
*
*
Cost Accounting Standards—
Educational Institution (Oct 2015)
*
*
*
*
*
92. 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)(vi) and
(c)(1)(viii).
The revisions read as follows:
■
■
52.244–6
Items.
asabaliauskas on DSK5VPTVN1PROD with RULES
*
*
Subcontracts for Commercial
*
*
*
*
VerDate Sep<11>2014
*
*
21:24 Jul 01, 2015
Jkt 235001
removing from paragraph (h) ‘‘$65,000’’
and adding ‘‘$70,000’’ in its place.
The revision reads as follows:
(c)(1) * * *
(i) 52.203–13, Contractor Code of Business
Ethics and Conduct (Oct 2015) (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.
52.248–3
*
■
*
*
*
*
(vi) 52.222–35, Equal Opportunity for
Veterans (Oct 2015)(38 U.S.C. 4212(a));
*
*
*
*
*
(viii) 52.222–37, Employment Reports on
Veterans (Oct 2015)(38 U.S.C. 4212).
*
*
*
*
*
93. Amend section 52.248–3 by
revising the date of the clause; and
■
*
38301
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*
*
Value Engineering-Construction.
*
*
*
Value Engineering-Construction (Oct
2015)
*
*
*
*
*
PART 53—FORMS
53.219
[Amended]
94. Amend section 53.219 by
removing ‘‘(Rev. 8/2014)’’ and adding
‘‘(Rev. 10/2015)’’ in its place.
■ 95. Revise section 53.301–294 to read
as follows:
53.301–294 Subcontracting Report for
Individual Contracts.
BILLING CODE 6820–EP–P
E:\FR\FM\02JYR3.SGM
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38302
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
SUBCONTRAC
G REPORT FOR INDIVIDU L CONTRACTS
OMB Control Number. 9000-0006
Expiration Dal!r. 04131112018
Public reportino burden for this oolleclion of infonnation is estimated to aveJaQe 55.34 hours per response, including the time for r8'olie'MJIO
lnstroolions, searching emtlng data souroes, gathering and maintaining the data needed, and completing and r8'oliewlng the caledion of
lnfonnation. Send oomments regarding this burden estimate or any other aspect of this colledllln tllnformatlon, Including suggestions for
lnsttuctlons on IVVenJe
reducing this burden, to the 1\tlquisition Policy Division, Regulatory Secretariat. GSA, Wehington, 00 20405.
1. CORPORATION, COIIIPAHY, OR SUBCMSION CO\IEREO
L
3. DATE SUBMITTED
COIIIPNIY NMI E
..................u ........
4, ~INGI'OIOOI'ROM t2014
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PreSCIIbed by GSA-FAR 148 CFR 53.219(a))
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
38303
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asabaliauskas on DSK5VPTVN1PROD with RULES
19.REMARKS
38304
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
GENERAL INSlRucnoMS
1. This ropat Is not re~J~ired for lllll8ll b u " - .
2. This rapat Is not n~q~~lnld forconmordll ltemsforwhlcll a ccmrnerdal plen
has been app~ norfrcm large businesses in llle Department of Defense
(DOD) Test Program for Negollallon d Comprohenslve SUbconlnu:llng pialiS.
The SUrrmary
Ropolt (SSR) is reiJ!Inld for <>Oillraclors cperaling
under one of Ill-two conditions and should be submilted to the Gcwemment
In """"""'""" wilh the lnsbudbls on that farm.
3. This form cdleclssubconlnlclaward dalefrcm pllme c:onlraclonll
suboonlradors that : (a) hold one or more contracts over $700,000 (01118f
$1,500,000 for conslruc6cn of a pubic fac1111W; and (b) are required lo report
suboonllacls awan:lad toSmaU Busill- (SB), Small DlsadllanlaQad
Business (SDB), Women-owned Smal Business (WOSB), HUIIZgnun.
ANCs and lndan lrlbas lhat have been rapaled In 101. llbove.
9. Aclual echlevmlenls must be reporled on the same basis as the golls set
BLOCK 101:: ~atcnlhls llnathelolal of Ill subccnlnlctsiiWirded
farlhln the conlrac:l. For ...,mple, If goeiS In llle plen do nat lnctuda lndlracl
under this ccnlnld(lheSIIm ofHnes 101.and 10b).
end.,.....ead Items, the achl_,_ls """""on this ropoltshould nat
BLOCKS 11 ·1 8: Each ollhese Items Is a subcllegory d Block 10a. Ncle
lnctuda them either.
thelln some cases the Slll1lll dollars mey be reported In mara lhan one blod<
8P!CII'IC IN8TRUC'IION8
{e.g .. SOBs <1M1ed byWorlllal ideniiJies llle
VOSS. seroice-disabled VOSBs. and HUBZone SB SOBs). Include
specilc coninoclor ostablfstunent. lflharo Is no DUNS number awilatlle
subccnllacls awarded lo ANCs and Indian tribes lhat h,_ not been certlled
lbetldenlllles the axact neme and address en!Bed In Block 1. contact Dun
by SBAas SOBs whlra ycu hava been designated to racelve their SOB
and -lnfarmallcn SeMceset 1-888-70s.5711 or via the lntemet
credl. 'Miera yau company and other COI!l'llnles h""" been desl;nated by
at hllp;/lwww.dnb.oom. Tha conllaclor shculd be prope!lld to piO\IIdethe
an ANC or indian !Jibe lo racelvethelr SOB credl far 11 subccnlraciiiWIIrded
follGWing inf'ormatlon: (I) Compeny legll business nome. (II) Trodeslyle,
lo lila ANC or lndlllllrllle, repoll onlY the partlcn oflllelolallmounl of the
doing business. or other name bywhleh ycur enllly lsClUillllOilly
subccnlnlcl that has been deslgnetedto ya~r company. For DeO, NASA. and
RI(:OIInized. (Ill) eon.>eny physlcel sb:eel eddrass, dty, state end ZIP
Coast Qlard ccntracls, lndllde subeonllaoling awallls to HBCUs and Mls.
Coda. (lv) Company melllng eddJus, dty, stala and ZIP Coda (If separate
hill pbyslcll). (v) Coq>enylelephcne number. (vi) Data the COI!l'llny
BLOCK 12: Report aft subccnlrads awarded lo WOSBs On eluding SOBs.
-s started. (1111) Number of amptoyees Ill yau loclllon. (viii) Chief
VOSBs (lnclvdng seNlce-dsib!ed 1/0SBs). and HUIIZ2014
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ER02JY15.097
asabaliauskas on DSK5VPTVN1PROD with RULES
STANDARD FORM 284 (REV. 1012015) PAGE3
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
38305
BLOCK 17: Repa:td subcCI'Ied In Block 10., but ...., net small
busln-s.
BLOCK 18: Enter a stlort narrall>le exptanllicn if (a) 88, SOB, WOSB,
voss. ~sabltd\IOSB, cr HU~cne SB accomp!llllmm r.u b4ik~W
that Wbktl Wllllld be expected using s slnlg,J.Jine )li"Ciedlcn r:l gOlds
throughtlleperlodofconllactperfclmance; or (b) lflhl$li a final report, any
one cf the sllc goals were net met.
DEFINiliONS
DI8TRIBUnoN 01' THIS REPORT
For the AWIIldlnG Agency or Contrador:
The ortdnel ccpy cf this report sllculd be ~ded to the contredlna
ollie..- 8i the agency cr ....tractor ldentlllid in Block 8. Fer conlraofs
='~~~sll~~~~dedJ~~~
Ma.._..ent Area ~llms
(DC~olllce.
For the and BullnessAdmlmlriiiGn ISEIA):
A ccpy of this report must bo pi'O\'Ided to !lie cegnlz!lnt Comrnemal
Maillet~ (CMRj at !lie time of I oCmplllnce mlew. ft Js
fWJ;:!:Ifrryto mill the SF 294to SBA unlesS speclllcally requaslad
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STANDARD FORM 294 (REV. 1012015) PAGE 4
38306
Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
contracting officer if the contractor
becomes an inverted domestic
corporation, or a subsidiary of an
inverted domestic corporation, during
performance of the contract.
One respondent submitted a comment
in response to the proposed rule.
[FR Doc. 2015–16206 Filed 7–1–15; 8:45 am]
BILLING CODE 6820–EP–C
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1 and 52
[FAC 2005–83; FAR Case 2015–006; Item
II; Docket No. 2015–0006, Sequence No. 1]
RIN 9000–AM85
A. Summary of Significant Changes
There is no change from the proposed
rule in response to the public comment
received.
Federal Acquisition Regulation;
Prohibition on Contracting With
Inverted Domestic Corporations—
Representation and Notification
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
require additional actions by contractors
to assist contracting officers in ensuring
compliance with the Governmentwide
statutory prohibition on the use of
appropriated (or otherwise made
available) funds for contracts with any
foreign incorporated entity that is an
inverted domestic corporation or to any
subsidiary of such entity.
DATES: Effective: November 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 2015–006.
SUPPLEMENTARY INFORMATION:
SUMMARY:
asabaliauskas on DSK5VPTVN1PROD with RULES
I. Background
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
79 FR 74558 on December 15, 2014, to
revise the provisions of the FAR that
address the continuing
Governmentwide statutory prohibition
(in effect since fiscal year 2008) on the
use of appropriated (or otherwise made
available) funds for contracts with 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
any subsidiary of such entity. The rule
modifies the existing representation and
adds a requirement to notify the
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21:24 Jul 01, 2015
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II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the comments in the
development of the final rule. A
discussion of the comments is provided
as follows:
B. Analysis of Public Comments
Comment: The respondent stated that
a particular contract is in violation of
Federal law, because the contractor
merged with a corporation outside the
United States.
Response: The Councils are not
enforcement agencies, and are not in a
position to assess whether the merger of
two companies resulted in an entity that
meets all the criteria in the applicable
definition of ‘‘inverted domestic
corporation.’’ This comment does not
address the substance of the proposed
rule, which proposed to require
additional actions by contractors to
assist contracting officers in ensuring
compliance with the Governmentwide
statutory prohibition on the use of
appropriated (or otherwise made
available) funds for contracts with any
foreign incorporated entity that is an
inverted domestic corporation (under 6
U.S.C. 395) or to any subsidiary of such
entity. Contractors with the modified
clause in their contracts will be required
to make a positive representation with
the offer as to their status as an inverted
domestic corporation, and notify the
contracting officer if they become an
inverted domestic corporation during
contract performance, as defined in the
statute. The contracting activity will
take appropriate action if the contractor
notifies the Government in accordance
with the clause that it has become an
inverted domestic corporation, or if
investigation by the appropriate
Government agency determines that the
contractor became an inverted domestic
corporation during contract
performance and failed to notify the
Government of its change in status.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
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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 certify that this
rule will not have a significant
economic impact on a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., because this
rule will only impact an offeror that is
an inverted domestic corporation or a
subsidiary of an inverted domestic
corporation and wants to do business
with the Government. It is expected that
the number of small entities impacted
by this rule will be minimal. Small
business concerns are unlikely to have
been incorporated in the United States
(or, if a partnership, established in the
United States) and then subsequently
incorporated in a foreign country; the
major participants in these transactions
are reportedly large multinational
corporations. For the definition of
‘‘small business’’, the Regulatory
Flexibility Act refers to the Small
Business Act, which in turn allows the
U.S. Small Business Administration
(SBA) Administrator to specify detailed
definitions or standards (5 U.S.C. 601(3)
and 15 U.S.C. 632(a)). The SBA
regulations at 13 CFR 121.105 discuss
who is a small business: ‘‘(a)(1) Except
for small agricultural cooperatives, a
business concern eligible for assistance
from SBA as a small business is a
business entity organized for profit,
with a place of business located in the
United States, and which operates
primarily within the United States or
which makes a significant contribution
to the U.S. economy through payment of
taxes or use of American products,
materials or labor’’.
V. Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. Chapter 35) applies. The rule
contains information collection
requirements. OMB has cleared this
information collection requirement
under OMB Control Number 9000–0190,
E:\FR\FM\02JYR3.SGM
02JYR3
Agencies
- 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
[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)]
[Rules and Regulations]
[Pages 38293-38306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16206]
-----------------------------------------------------------------------
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
Acquisition-Related Thresholds
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: 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
Davis-Bacon Act), Service Contract Labor Standards statute, and trade
agreements thresholds. DoD, GSA, and NASA have also used the same
methodology to adjust nonstatutory FAR acquisition-related 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.
[[Page 38294]]
SUPPLEMENTARY INFORMATION:
I. Background
This rule amends 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 also use the same methodology to
adjust nonstatutory FAR acquisition-related thresholds.
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 79 FR 70141 on November 25, 2014. The preamble to the
proposed rule contained detailed explanation of--
What an acquisition-related threshold is;
What acquisition-related thresholds are not subject to
escalation adjustment under this case;
How the Defense Acquisition Regulations Council and the
Civilian Agency Acquisition Council (Councils) analyze statutory and
non-statutory acquisition-related thresholds; and
The effect of this rule on the most heavily-used
thresholds.
Two respondents submitted comments on the proposed rule, which are
addressed in the following section. The final rule has been coordinated
with the Department of Labor and the Small Business Administration in
areas of the regulation for which they are the lead agency.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the comments in the
development of the final rule. A discussion of the comments is provided
as follows:
A. Summary of Changes Between the Proposed Rule and the Final Rule.
Although there were no changes between the proposed rule and the
final rule as the result of public comments, some of the thresholds in
the final rule are lower than proposed, due to lower inflation than was
projected at the time of publication of the proposed rule.
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 $1,500,000 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 section 52.204-10).
The URL for the location of the current matrix of threshold
escalation is provided at FAR 1.109(d).
B. Analysis of Public Comments
1. Inclusion of Specific Dollar Thresholds in Clauses
Comment: One respondent was of the opinion that when a dollar
threshold is stated in the body of the clause, the threshold applies
for the life of the contract, but if the clause instead refers to the
threshold in the underlying FAR text, the threshold in the clause would
automatically adjust when there was a change to the threshold in the
FAR text.
Response: The Councils note that the Definitions clause at FAR
52.202-1, as prescribed at FAR 2.201, is to be included in all
solicitations and contracts that exceed the simplified acquisition
threshold. This clause specifies that, with a few limited exceptions,
when a solicitation provision or contract clause uses a word or term
that is defined in the FAR, the word or term has the same meaning as
that definition in FAR 2.101 in effect at the time the solicitation was
issued. Therefore, since the dollar value of the simplified acquisition
threshold is included in the definition of ``simplified acquisition
threshold'' in FAR part 2, the dollar threshold that is in effect at
the time of issuance of the solicitation stays in effect for the life
of the contract, unless the contracting parties agree otherwise.
Likewise, when a clause refers to a threshold in the FAR that is
not included in a definition, the Councils generally presume that the
threshold stays fixed for the life of the contract, unless the parties
specify otherwise.
Therefore, it should not create discrepancies, whether a clause
includes the dollar threshold, or references a definition or other text
in the FAR to establish the value of the threshold.
2. Rounding Methodology
Comment: One respondent noted an apparent disproportionate
inflation adjustment between the lower and higher dollar thresholds,
particularly in the under $1 million range. The respondent suggested
that Congress should use smaller dollar intervals to analyze the
adjustment, or adjustments more frequent than every five years.
Response: The Councils have adjusted the thresholds in accordance
with the statutory requirement, and cannot use different dollar
intervals or adjustment periods unless Congress amends the statute.
C. Other Changes
1. Some Lower Thresholds in Final Rule
The proposed rule was based on a projected CPI of 245 for March
2015. The final rule is based on an actual CPI of 236.119 for March
2015. The CPI as of the end of March, six months before the effective
date of the rule, is used as the cutoff in order to allow time for
approval and publication of the final rule.
Because the actual CPI index for March 2015 is about ten points
lower than the CPI index projected for that date at the time of the
proposed rule, thresholds of at least 10 million dollars are generally
proportionally lower than the proposed thresholds. Thresholds of less
than $10 million are frequently unchanged, due to rounding.
2. Thresholds Related to Substantial Bundling
The thresholds at FAR 7.107(b) are nonstatutory thresholds passed
based on policy, which were previously escalated by the FAR Council in
October 2010. However, subsequent to the publication of the proposed
rule under this FAR case 2014-022, the Councils became aware that the
Small Business Administration (SBA) issued a final rule in the Federal
Register at 78 FR 61114 on October 2, 2013, entitled ``Acquisition
process: Task and Delivery Order Contracts, Bundling, Consolidation'',
which incorporated these thresholds into the SBA regulations at 13 CFR
125.2(d)(2)(ii). It is therefore now outside the authority of
[[Page 38295]]
the FAR Council to escalate these thresholds, unless SBA first revises
their regulations.
3. Cost Accounting Standards Threshold
By law (41 U.S.C. 1502(b)(1)(B)), the threshold for application of
the Cost Accounting Standards equals the threshold of cost or pricing
data, as escalated. The proposed rule included escalation of the cost
or pricing data threshold from $700,000 to $750,000, which is retained
in the final rule. Therefore, the final rule also includes equivalent
escalation of the Cost Accounting Standards threshold at FAR 30.201-4
and the clauses at 52.230-1 through 52.230-5 from $700,000 to $750,000.
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 have prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is summarized as follows:
This final rule amends 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.
There were no significant issues raised by the public comments
in response to the initial regulatory flexibility analysis.
This rule will likely affect to some extent all small business
concerns that submit offers or are awarded contracts by the Federal
Government. However, most of the threshold changes in this rule are
not expected to have any significant economic impact on small
business concerns because they 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 small dollar value acquisitions,
which are the acquisitions in which small business concerns are most
likely to participate.
One threshold change in this rule that may temporarily impact
small business concerns is the increase of the micro-purchase
threshold (FAR 2.101) from $3,000 to $3,500. This will temporarily
narrow the range of acquisitions automatically set aside for small
business concerns, because the simplified acquisition threshold of
$150,000 will not increase at this time (although it may increase to
$200,000 in 2020). To assess the impact of the increase in the
micro-purchase threshold from $3,000 to $3,500, data was requested
from the Federal Procurement Data System-Next Generation (FPDS-NG).
For Fiscal Year 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) went to small business
concerns. We 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.
There are no practical alternatives that will accomplish the
objectives of the statute.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy
of the FRFA to the Chief Counsel for Advocacy of the Small Business
Administration.
V. Paperwork Reduction Act
The Paperwork Reduction Act does apply. The 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; 9000-0027, titled: Value
Engineering Requirements; FAR Sections Affected: Subparts 48.1 and
48.2; 52.248-2 and 52.248-3. 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, 28, 30, 42, 50, 52, and 53
Government procurement.
Dated: June 18, 2015.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 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 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, 28, 30, 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.
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; 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 revision reads as follows.
[[Page 38296]]
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
(c)(2)(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 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 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 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 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 ``$13.5 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 ``$13.5
million'', ``$68 million'', and ``$93 million'' in their places,
respectively; and
0
d. Removing from paragraph (a)(4) ``$62.5 million'' and ``$85.5
million'' and adding ``$68 million'' and ``$93 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 ``$102 million'' in its place; and removing from
paragraph (b)(2) ``$9.4 million'' and ``$94 million'' and adding
``$10.2 million'' and ``$102 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.
0
17. Amend section 8.405-3 by--
0
a. Removing from paragraphs (a)(3)(ii) and (a)(3)(iii) ``$103 million''
and adding ``$112 million'' in their places; and
0
b. Revising paragraph (a)(7)(v).
The revision reads as follows:
8.405-3 Blanket purchase agreements (BPAs).
(a) * * *
(7) * * *
(v) Determination for a single-award BPA exceeding $112 million, if
applicable (see (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 ``$13.5 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 ``$13.5
million'', ``$68 million'' and ``$93 million'' in their places,
respectively; and
0
d. Removing from paragraph (d)(4) ``$62.5 million'' and ``$85.5
million'' and adding ``$68 million'' and ``$93 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.
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.
[[Page 38297]]
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 ``$5.5 million'' in its place.
10.003 [Amended]
0
26. Amend section 10.003 by removing ``$5 million'' and adding ``$5.5
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 ``$19 million'' in its
place.
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 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 (c) ``$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 ``$13.5 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 ``$13.5 million'', ``$68
million'', and ``$93 million'' in their places, respectively; and
0
d. Removing from paragraph (a)(2)(iv) ''$62.5 million'' and ``$85.5
million'' and adding ``$68 million'' and ``$93 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 ``$19 million'' in its place.
15.403-4 [Amended]
0
39. Amend section 15.403-4 by removing from the introductory text of
paragraphs (a)(1) and (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 ``$13.5 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
``$13.5 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 ``$13.5 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 ``$112 million'' in its place; and removing from
paragraph (d)(1) ``$12.5 million'' and adding ``$13.5 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 ``$112 million'' in its place;
0
b. Removing from the introductory text of paragraph (c)(1)(ii)(D)(3)
``$103 million'' and adding ``$112 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 ``$13.5 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;
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;
[[Page 38298]]
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 ``13.5 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 ``13.5 million'', ``68
million'', and ``93 million'' in their places, respectively;
0
i. Removing from paragraph (b)(2)(ii)(C)(4) ``$62.5 million'' and
``$85.5 million'' and adding ``68 million'' and ``93 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 ``$13.5 million'' in their places; and
removing from paragraph (h) ``$5 million'' and adding ``5.5 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 ``$13.5 million'' in its place; and removing from
paragraph (b) ``$125 million'' and adding ``$135.5 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'' and
``$15,000'' and adding ``$3,500'' and ``$20,000'' 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'' and ``$15,000'' and adding
``$3,500'' and ``$20,000'' 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 (a)(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 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 28--BONDS AND INSURANCE
28.102-1 [Amended]
0
64. 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
65. Amend section 28.102-2 by removing from paragraph (c) ``$30,000''
and adding ``$35,000'' in its place.
28.102-3 [Amended]
0
66. Amend section 28.102-3 by removing from paragraph (b) ``$30,000''
and adding ``$35,000'' in its place.
PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION
30.201-4 [Amended]
0
67. Amend section 30.201-4 by removing from paragraph (b)(1)
``$700,000'' and adding ``$750,000'' in its place.
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
42.709 [Amended]
0
68. Amend section 42.709 by removing from paragraph (b) ``$700,000''
and adding ``$750,000'' in its place.
42.709-6 [Amended]
0
69. Amend section 42.709-6 by removing ``$700,000'' and adding
``$750,000'' in its place.
42.1502 [Amended]
0
70. 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).
[[Page 38299]]
PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT
50.102-1 [Amended]
0
71. Amend section 50.102-1 by removing from paragraph (b) ``$65,000''
and adding ``$70,000'' in its place.
50.102-3 [Amended]
0
72. Amend section 50.102-3 by removing from paragraph (b)(4) ``$31.5
million'' and adding ``$34 million'' in its place; and removing from
paragraphs (e)(1)(i) and (e)(1)(ii) ``$65,000'' and adding ``$70,000''
in their places.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
73. 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 revision reads as follows:
52.203-13 Contractor Code of Business Ethics and Conduct
* * * * *
Contractor Code of Business Ethics and Conduct (Oct 2015)
* * * * *
0
74. 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 revision reads as follows:
52.203-14 Display of Hotline Poster(s).
* * * * *
Display of Hotline Poster(s) (Oct 2015)
* * * * *
0
75. Amend section 52.204-10 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraphs (d)(2) and (d)(3) ``$25,000'' and adding
``$30,000'' in their places; and
0
c. Revising paragraph (e).
The revisions read as follows:
52.204-10 Reporting Executive Compensation and First-Tier Subcontract
Awards.
* * * * *
Reporting Executive Compensation and First-Tier Subcontract Awards (Oct
2015)
(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
76. 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 revision reads as follows:
52.209-5 Certification Regarding Responsibility Matters.
* * * * *
Certification Regarding Responsibility Matters (Oct 2015)
* * * * *
0
77. 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 revision 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 (Oct 2015)
* * * * *
0
78. 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 revision reads as follows:
52.212-1 Instructions to Offerors--Commercial Items.
* * * * *
Instructions to Offerors--Commercial Items (Oct 2015)
* * * * *
0
79. 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 revision reads as follows:
52.212-3 Offeror Representations and Certifications--Commercial
Items.
* * * * *
Offeror Representations and Certifications--Commercial Items (Oct 2015)
* * * * *
0
80. 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), (b)(17)(iv),
(b)(29), (b)(31), (b)(34), and (e)(1)(i);
0
c. Removing from paragraph (e)(1)(ii) ``$650,000'' and adding
``$700,000'' in its place;
0
d. Revising paragraphs (e)(1)(vi), (e)(1)(viii), and (e)(1)(xiv); and
0
e. Amending Alternate II by revising the date of Alternate II and
paragraphs (e)(1)(ii)(A), (e)(1)(ii)(C), (e)(1)(ii)(F), and
(e)(1)(ii)(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 (Oct 2015)
* * * * *
(b) * * *
__(2) 52.203-13, Contractor Code of Business Ethics and Conduct
(Oct 2015) (41 U.S.C. 3509).
* * * * *
__(4) 52.204-10, Reporting Executive Compensation and First-Tier
Subcontract Awards (Oct 2015) (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. (Oct 2015) (31 U.S.C. 6101 note).
* * * * *
__(17)(i) 52.219-9, Small Business Subcontracting Plan (Oct
2015) (15 U.S.C. 637(d)(4)).
* * * * *
__(iv) Alternate III (Oct 2015) of 52.219-9.
* * * * *
__(29) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38
U.S.C. 4212).
* * * * *
__(31) 52.222-37, Employment Reports on Veterans (Oct 2015) (38
U.S.C. 4212).
* * * * *
__(34) 52.222-54, Employment Eligibility Verification (Oct
2015). (E. O. 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.)
* * * * *
(e)(1) * * *
(i) 52.203-13, Contractor Code of Business Ethics and Conduct
(Oct 2015) (41 U.S.C. 3509).
* * * * *
(vi) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38
U.S.C. 4212).
* * * * *
(viii) 52.222-37, Employment Reports on Veterans (Oct 2015) (38
U.S.C. 4212).
* * * * *
(xiv) 52.222-54, Employment Eligibility Verification (Oct 2015)
(E. O. 12989).
* * * * *
Alternate II (Oct 2015). * * *
* * * * *
(e)(1) * * *
(ii) * * *
[[Page 38300]]
(A) 52.203-13, Contractor Code of Business Ethics and Conduct
(Oct 2015) (41 U.S.C. 3509).
* * * * *
(C) 52.219-8, Utilization of Small Business Concerns (Oct 2015)
(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.
* * * * *
(F) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38
U.S.C. 4212).
* * * * *
(M) 52.222-4, Employment Eligibility Verification (Oct 2015)
(Executive Order 12989).
* * * * *
0
81. Amend section 52.213-4 by revising the date of the clause and
paragraphs (a)(2)(viii), (b)(1)(i), (b)(1)(iv), (b)(1)(vi), and
(b)(2)(i) to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items) (Oct 2015)
* * * * *
(a) * * *
(2) * * *
(viii) 52.244-6, Subcontracts for Commercial Items (Oct 2015).
* * * * *
(b) * * *
(1) * * *
(i) 52.204-10, Reporting Executive Compensation and First-Tier
Subcontract Awards (Oct 2015) (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 (Oct 2015) (38
U.S.C. 4212) (applies to contracts of $150,000 or more).
* * * * *
(vi) 52.222-37, Employment Reports on Veterans (Oct 2015) (38
U.S.C. 4212) (applies to contracts of $150,000 or more).
* * * * *
(2) * * *
(i) 52.209-6, Protecting the Government's Interest When
Subcontracting with Contractors Debarred, Suspended, or Proposed for
Debarment (Oct 2015) (Applies to contracts over $35,000).
* * * * *
0
82. 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. Amending Alternate III by--
0
1. Revising the date of Alternate III;
0
2. Removing from paragraph (l)(2)(i)(C) ``$550,000'' and ``$1,000,000''
and adding ``$700,000'' and ``$1.5 million'' in their places,
respectively.
The revision reads as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
Small Business Subcontracting Plan (Oct 2015)
* * * * *
Alternate III (Oct 2015). * * *
* * * * *
0
83. 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 revision reads as follows:
52.222-35 Equal Opportunity for Veterans.
* * * * *
Equal Opportunity for Veterans (Oct 2015)
* * * * *
0
84. 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 revision reads as follows:
52.222-37 Employment Reports on Veterans.
* * * * *
Employment Reports on Veterans (Oct 2015)
* * * * *
0
85. 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 revision reads as follows:
52.222-54 Employment Eligibility Verification.
* * * * *
Employment Eligibility Verification (Oct 2015)
* * * * *
0
86. 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 revision 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
(Oct 2015)
* * * * *
0
87. Amend section 52.230-1 by revising the date of the provision; and
removing from paragraph (a) ``$700,000'' and adding ``$750,000'' in its
place.
The revision reads as follows:
52.230-1 Cost Accounting Standards Notices and Certification.
* * * * *
Cost Accounting Standards Notices and Certification (Oct 2015)
* * * * *
0
88. Amend section 52.230-2 by revising the date of the clause; and
removing from paragraph (d) ``$700,000'' and adding ``$750,000'' in its
place.
The revision reads as follows:
52.230-2 Cost Accounting Standards.
* * * * *
Cost Accounting Standards (Oct 2015)
* * * * *
0
89. Amend section 52.230-3 by revising the date of the clause; and
removing from paragraph (d)(2) ``$700,000'' and adding ``$750,000'' in
its place.
The revision reads as follows:
52.230-3 Disclosure and Consistency of Cost Accounting Practices.
* * * * *
Disclosure and Consistency of Cost Accounting Practices (Oct 2015)
* * * * *
0
90. Amend section 52.230-4 by revising the date of the clause; and
removing from paragraph (d)(2) ``$700,000'' and adding ``$750,000'' in
its place.
The revision reads as follows:
52.230-4 Disclosure and Consistency of Cost Accounting Practices-
Foreign Concerns.
* * * * *
Disclosure and Consistency of Cost Accounting Practices-Foreign
Concerns (Oct 2015)
* * * * *
0
91. Amend section 52.230-5 by revising the date of the clause; and
removing from paragraph (d)(2) ``$700,000'' and adding ``$750,000'' in
its place.
The revision reads as follows:
[[Page 38301]]
52.230-5 Cost Accounting Standards--Educational Institution.
* * * * *
Cost Accounting Standards--Educational Institution (Oct 2015)
* * * * *
0
92. 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)(vi) and (c)(1)(viii).
The revisions read as follows:
52.244-6 Subcontracts for Commercial Items.
* * * * *
Subcontracts for Commercial Items (Oct 2015)
* * * * *
(c)(1) * * *
(i) 52.203-13, Contractor Code of Business Ethics and Conduct
(Oct 2015) (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.
* * * * *
(vi) 52.222-35, Equal Opportunity for Veterans (Oct 2015)(38
U.S.C. 4212(a));
* * * * *
(viii) 52.222-37, Employment Reports on Veterans (Oct 2015)(38
U.S.C. 4212).
* * * * *
0
93. 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 revision reads as follows:
52.248-3 Value Engineering-Construction.
* * * * *
Value Engineering-Construction (Oct 2015)
* * * * *
PART 53--FORMS
53.219 [Amended]
0
94. Amend section 53.219 by removing ``(Rev. 8/2014)'' and adding
``(Rev. 10/2015)'' in its place.
0
95. Revise section 53.301-294 to read as follows:
53.301-294 Subcontracting Report for Individual Contracts.
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[FR Doc. 2015-16206 Filed 7-1-15; 8:45 am]
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