Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; Introduction, 45831-45833 [2016-16244]
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Vol. 81
Thursday,
No. 135
July 14, 2016
Part IV
Department of Defense
General Services Administration
mstockstill on DSK3G9T082PROD with RULES2
National Aeronautics and Space Administration
48 CFR Chapter 1
Federal Acquisition Regulation; Federal Acquisition Circular 2005–89;
Introduction, Small Business Improvements, OMB Circular Citation Update,
FPI Blanket Waiver, Revision to Standard Forms for Bonds, Technical
Amendments, and Federal Acquisition Circular 2005–89; Small Entity
Compliance Guide; Final Rules
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Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
ACTION:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
SUMMARY:
Summary presentation of final
rules.
48 CFR Chapter 1
[Docket No. FAR 2016–0051, Sequence
No. 3]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–89;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
This document summarizes
the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2005–89. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC. The FAC, including the SECG, is
available via the Internet at https://
www.regulations.gov.
For effective dates see the
separate documents, which follow.
DATES:
The
analyst whose name appears in the table
below in relation to the FAR case.
Please cite FAC 2005–89 and the
specific FAR case number. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat Division at 202–
501–4755.
FOR FURTHER INFORMATION CONTACT:
RULES LISTED IN FAC 2005–89
Item
Subject
I .........................
II ........................
III .......................
IV .......................
V ........................
Small Business Subcontracting Improvements .......................................................................
OMB Circular Citation Update .................................................................................................
FPI Blanket Waiver Threshold .................................................................................................
Revision to Standard Forms for Bonds ...................................................................................
Technical Amendments.
SUPPLEMENTARY INFORMATION:
Summaries for each FAR rule follow.
For the actual revisions and/or
amendments made by these rules, refer
to the specific item numbers and
subjects set forth in the documents
following these item summaries. FAC
2005–89 amends the FAR as follows:
mstockstill on DSK3G9T082PROD with RULES2
Item I—Small Business Subcontracting
Improvements (FAR Case 2014–003)
This final rule amends the FAR to
implement SBA’s final rule published at
78 FR 42391 on July 16, 2013. The rule
will implement the statutory
requirements set forth in section 1321
and 1322 of the Small Business Jobs Act
of 2010, (Pub. L. 111–240), as well as
other requirements aimed at improving
subcontracting regulations to increase
small business opportunities. This rule
accomplishes the following:
(1) Requires prime contractors to
make good faith efforts to utilize their
proposed small business subcontractors
during performance of a contract to the
same degree the prime contractor relied
on the small business in preparing and
submitting its bid or proposal. To the
extent a prime contractor is unable to
make a good faith effort to utilize its
small business subcontractors as
described above, the prime contractor is
required to explain, in writing, within
30 days of contract completion, to the
contracting officer the reasons why it
was unable to do so.
(2) Authorizes contracting officers to
calculate subcontracting goals in terms
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FAR Case
of total contract dollars in addition to
the required goals in terms of total
subcontracted dollars.
(3) Provides contracting officers with
the discretion to require a
subcontracting plan in instances where
a small business rerepresents its size as
an other than small business.
(4) Requires subcontracting plans
even for modifications under the
subcontracting plan threshold if said
modifications would cause the contract
to exceed the plan threshold.
(5) Requires prime contractors to
assign (North American Industry
Classification System (NAICS)) codes to
subcontracts.
(6) Restricts prime contractors from
prohibiting a subcontractor from
discussing payment or utilization
matters with the contracting officer.
(7) Requires prime contractors to
resubmit a corrected subcontracting
report within 30 days of receiving the
contracting officer’s notice of report
rejection.
(8) Requires prime contractors to
provide the socioeconomic status of the
subcontractor in the notification to
unsuccessful offerors for subcontracts.
(9) Requires prime contracts with
subcontracting plans on task and
delivery order contracts to report order
level subcontracting information after
November 2017.
(10) Facilitates funding agencies
receiving small business subcontracting
credit.
(11) On indefinite-delivery,
indefinite-quantity contracts, allows the
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2014–003
2014–023
2016–008
2015–025
Analyst
Uddowla.
Hopkins.
Uddowla.
Hopkins.
contracting officer to establish
subcontracting goals at the order level
(but not a new subcontracting plan).
This rule may have a positive
economic impact on any small business
entity that wishes to participate in the
Federal procurement arena as a
subcontractor.
Item II—OMB Circular Citation Update
(FAR Case 2014–023)
This final rule amends the FAR to
update outdated OMB Circular citation
references. On December 26, 2013, the
Office of Management and Budget
(OMB) published new guidance at 2
CFR part 200 entitled Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards, adopted by Federal
agencies as a set of binding regulations
that became effective December 26,
2014. This new guidance supersedes
and streamlines requirements from
OMB Circulars A–21, A–87, A–89, A–
102, A–110, A–122, and A–133, as well
as the guidance in Circular A–50 on
Audit Followup. As such, this final rule
replaces OMB citations in the FAR to
the circulars cited above that have been
superseded. The replacement of these
outdated OMB citations in the FAR will
have no impact on small businesses
since the intent of the OMB guidance
remains unchanged.
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Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations
Item III—FPI Blanket Waiver
Threshold (FAR Case 2016–008)
DEPARTMENT OF DEFENSE
This final rule amends the FAR to
increase the blanket waiver threshold
for small dollar-value purchases from
Federal Prison Industries (FPI) by
Federal agencies from $3,000 to $3,500.
No waiver is required to buy from an
alternative source below $3,500.
Customers may, however, still purchase
from FPI at, or below, this threshold, if
they so choose.
Item IV—Revision to Standard Forms
for Bonds (FAR Case 2015–025)
This rule amends the FAR to revise
five Standard Forms prescribed for
contracts involving bonds and other
financial protections. The revisions,
aimed at clarifying liability limitations
and expanding the options for
organization types, are made to
Standard Forms 24, 25, 25A, 34, and 35.
These changes will minimize questions
from industry to the contracting officer.
This final rule does not place any new
requirements on small entities.
Item V—Technical Amendments
Editorial changes are made at FAR
4.1801, 4.1803, 52.204–16, 52.204–17,
52.204–18, 52.204–20, and 52.212–3.
Dated: June 30, 2016.
William Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
mstockstill on DSK3G9T082PROD with RULES2
Federal Acquisition Circular (FAC)
2005–89 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 2005–89 is effective July 14,
2016 except for item I which is effective
November 1, 2016, and items II, III, and
IV, which are effective August 15, 2016.
Dated: July 1, 2016.
Claire M. Grady,
Director, Defense Procurement and
Acquisition Policy
Dated: July 1, 2016.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO,
Office of Acquisition Policy, U.S. General
Services Administration.
Dated: June 29, 2016.
William G. Roets,
Acting Assistant Administrator, Office of
Procurement National Aeronautics and Space
Administration.
[FR Doc. 2016–16244 Filed 7–13–16; 8:45 am]
BILLING CODE 6820–EP–P
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GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 2, 15, 19, and 52
[FAC 2005–89; FAR Case 2014–003; Item
I; Docket No. 2014–0003; Sequence No. 1]
RIN 9000–AM91
Federal Acquisition Regulation; Small
Business Subcontracting
Improvements
Department of Defense (DoD),
General Services Administration (GSA),
and the National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCY:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
implement regulatory changes made by
the Small Business Administration,
which provide for a Governmentwide
policy on small business subcontracting.
DATES: Effective: November 1, 2016.
FOR FURTHER INFORMATION CONTACT: Ms.
Mahruba Uddowla, Procurement
Analyst, at 703–605–2868 for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755.
Please cite FAC 2005–89, FAR Case
2014–003.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
80 FR 32909 on June 10, 2015. The
proposed rule discussed regulatory
changes made by the Small Business
Administration (SBA) in its final rule
published at 78 FR 42391, on July 16,
2013, concerning small business
subcontracting. SBA’s final rule
implements the statutory requirements
in sections 1321 and 1322 of the Small
Business Jobs Act of 2010 (Pub. L. 111–
240), as well as other changes aimed at
improving subcontracting regulations to
increase small business opportunities.
The changes being implemented in this
final rule include the following:
(1) Requiring prime contractors to
make good faith efforts to utilize their
proposed small business subcontractors
during performance of a contract to the
same degree the prime contractor relied
on the small business in preparing and
submitting its bid or proposal. To the
extent a prime contractor is unable to
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45833
make a good faith effort to utilize its
small business subcontractors as
described above, the prime contractor is
required to explain, in writing, within
30 days of contract completion, to the
contracting officer the reasons why it is
unable to do so.
(2) Authorizing contracting officers to
calculate subcontracting goals in terms
of total contract dollars in addition to
the required goals in terms of total
subcontracted dollars.
(3) Providing contracting officers with
the discretion to require a
subcontracting plan in instances where
a small business rerepresents its size as
an other than small business.
(4) Requiring subcontracting plans
even for modifications under the
subcontracting plan threshold if said
modifications would cause the contract
to exceed the plan threshold.
(5) Requiring prime contractors to
assign North American Industry
Classification System (NAICS) codes to
subcontracts.
(6) Restricting prime contractors from
prohibiting a subcontractor from
discussing payment or utilization
matters with the contracting officer.
(7) Requiring prime contractors to
resubmit a corrected subcontracting
report within 30 days of receiving the
contracting officer’s notice of report
rejection.
(8) Requiring prime contractors to
provide the socioeconomic status of the
subcontractor in the notification to
unsuccessful offerors for subcontracts.
(9) Requiring prime contracts with
subcontracting plans on task and
delivery order contracts to report order
level subcontracting information after
November 2017.
(10) Funding agencies receiving small
business subcontracting credit.
(11) On indefinite-delivery,
indefinite-quantity contracts, the
contracting officer may establish
subcontracting goals at the order level
(but not a new subcontracting plan).
Twenty-seven respondents submitted
comments on the proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the public comments in the
development of the final rule. A
discussion of the comments received
and the changes made to the rule as a
result of those comments are provided
as follows:
A. Summary of Significant Changes
This final rule makes the following
significant changes from the proposed
rule:
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]]>Agencies
[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Rules and Regulations]
[Pages 45831-45833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16244]
[[Page 45831]]
Vol. 81
Thursday,
No. 135
July 14, 2016
Part IV
Department of Defense
-----------------------------------------------------------------------
General Services Administration
-----------------------------------------------------------------------
National Aeronautics and Space Administration
-----------------------------------------------------------------------
48 CFR Chapter 1
Federal Acquisition Regulation; Federal Acquisition Circular 2005-89;
Introduction, Small Business Improvements, OMB Circular Citation
Update, FPI Blanket Waiver, Revision to Standard Forms for Bonds,
Technical Amendments, and Federal Acquisition Circular 2005-89; Small
Entity Compliance Guide; Final Rules
Federal Register / Vol. 81 , No. 135 / Thursday, July 14, 2016 /
Rules and Regulations
[[Page 45832]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR 2016-0051, Sequence No. 3]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-89; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final rules.
-----------------------------------------------------------------------
SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council (Councils) in this Federal
Acquisition Circular (FAC) 2005-89. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC. The FAC, including
the SECG, is available via the Internet at https://www.regulations.gov.
DATES: For effective dates see the separate documents, which follow.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. Please cite FAC 2005-89 and
the specific FAR case number. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755.
Rules Listed in FAC 2005-89
----------------------------------------------------------------------------------------------------------------
Item Subject FAR Case Analyst
----------------------------------------------------------------------------------------------------------------
I............................... Small Business Subcontracting 2014-003 Uddowla.
Improvements.
II.............................. OMB Circular Citation Update.. 2014-023 Hopkins.
III............................. FPI Blanket Waiver Threshold.. 2016-008 Uddowla.
IV.............................. Revision to Standard Forms for 2015-025 Hopkins.
Bonds.
V............................... Technical Amendments...........
----------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these rules, refer to the
specific item numbers and subjects set forth in the documents following
these item summaries. FAC 2005-89 amends the FAR as follows:
Item I--Small Business Subcontracting Improvements (FAR Case 2014-003)
This final rule amends the FAR to implement SBA's final rule
published at 78 FR 42391 on July 16, 2013. The rule will implement the
statutory requirements set forth in section 1321 and 1322 of the Small
Business Jobs Act of 2010, (Pub. L. 111-240), as well as other
requirements aimed at improving subcontracting regulations to increase
small business opportunities. This rule accomplishes the following:
(1) Requires prime contractors to make good faith efforts to
utilize their proposed small business subcontractors during performance
of a contract to the same degree the prime contractor relied on the
small business in preparing and submitting its bid or proposal. To the
extent a prime contractor is unable to make a good faith effort to
utilize its small business subcontractors as described above, the prime
contractor is required to explain, in writing, within 30 days of
contract completion, to the contracting officer the reasons why it was
unable to do so.
(2) Authorizes contracting officers to calculate subcontracting
goals in terms of total contract dollars in addition to the required
goals in terms of total subcontracted dollars.
(3) Provides contracting officers with the discretion to require a
subcontracting plan in instances where a small business rerepresents
its size as an other than small business.
(4) Requires subcontracting plans even for modifications under the
subcontracting plan threshold if said modifications would cause the
contract to exceed the plan threshold.
(5) Requires prime contractors to assign (North American Industry
Classification System (NAICS)) codes to subcontracts.
(6) Restricts prime contractors from prohibiting a subcontractor
from discussing payment or utilization matters with the contracting
officer.
(7) Requires prime contractors to resubmit a corrected
subcontracting report within 30 days of receiving the contracting
officer's notice of report rejection.
(8) Requires prime contractors to provide the socioeconomic status
of the subcontractor in the notification to unsuccessful offerors for
subcontracts.
(9) Requires prime contracts with subcontracting plans on task and
delivery order contracts to report order level subcontracting
information after November 2017.
(10) Facilitates funding agencies receiving small business
subcontracting credit.
(11) On indefinite-delivery, indefinite-quantity contracts, allows
the contracting officer to establish subcontracting goals at the order
level (but not a new subcontracting plan).
This rule may have a positive economic impact on any small business
entity that wishes to participate in the Federal procurement arena as a
subcontractor.
Item II--OMB Circular Citation Update (FAR Case 2014-023)
This final rule amends the FAR to update outdated OMB Circular
citation references. On December 26, 2013, the Office of Management and
Budget (OMB) published new guidance at 2 CFR part 200 entitled Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards, adopted by Federal agencies as a set of binding
regulations that became effective December 26, 2014. This new guidance
supersedes and streamlines requirements from OMB Circulars A-21, A-87,
A-89, A-102, A-110, A-122, and A-133, as well as the guidance in
Circular A-50 on Audit Followup. As such, this final rule replaces OMB
citations in the FAR to the circulars cited above that have been
superseded. The replacement of these outdated OMB citations in the FAR
will have no impact on small businesses since the intent of the OMB
guidance remains unchanged.
[[Page 45833]]
Item III--FPI Blanket Waiver Threshold (FAR Case 2016-008)
This final rule amends the FAR to increase the blanket waiver
threshold for small dollar-value purchases from Federal Prison
Industries (FPI) by Federal agencies from $3,000 to $3,500. No waiver
is required to buy from an alternative source below $3,500. Customers
may, however, still purchase from FPI at, or below, this threshold, if
they so choose.
Item IV--Revision to Standard Forms for Bonds (FAR Case 2015-025)
This rule amends the FAR to revise five Standard Forms prescribed
for contracts involving bonds and other financial protections. The
revisions, aimed at clarifying liability limitations and expanding the
options for organization types, are made to Standard Forms 24, 25, 25A,
34, and 35. These changes will minimize questions from industry to the
contracting officer.
This final rule does not place any new requirements on small
entities.
Item V--Technical Amendments
Editorial changes are made at FAR 4.1801, 4.1803, 52.204-16,
52.204-17, 52.204-18, 52.204-20, and 52.212-3.
Dated: June 30, 2016.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2005-89 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 2005-89 is
effective July 14, 2016 except for item I which is effective November
1, 2016, and items II, III, and IV, which are effective August 15,
2016.
Dated: July 1, 2016.
Claire M. Grady,
Director, Defense Procurement and Acquisition Policy
Dated: July 1, 2016.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy,
U.S. General Services Administration.
Dated: June 29, 2016.
William G. Roets,
Acting Assistant Administrator, Office of Procurement National
Aeronautics and Space Administration.
[FR Doc. 2016-16244 Filed 7-13-16; 8:45 am]
BILLING CODE 6820-EP-P
