Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; Introduction, 45831-45833 [2016-16244]

Download as PDF 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 VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\14JYR2.SGM 14JYR2 45832 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 http:// 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 VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 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 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 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. E:\FR\FM\14JYR2.SGM 14JYR2 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 VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 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 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 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: E:\FR\FM\14JYR2.SGM 14JYR2

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]



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Vol. 81

Thursday,

No. 135

July 14, 2016

Part IV





Department of Defense





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General Services Administration





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National Aeronautics and Space Administration





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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]]


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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 http://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